[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1486 Reported in House (RH)]





                                                  Union Calendar No. 59

105th CONGRESS

  1st Session

                               H. R. 1486

                          [Report No. 105-94]

_______________________________________________________________________

                                 A BILL

   To consolidate international affairs agencies, to reform foreign 
assistance programs, to authorize appropriations for foreign assistance 
   programs and for the Department of State and related agencies for 
          fiscal years 1998 and 1999, and for other purposes.

_______________________________________________________________________

                              May 9, 1997

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed





                                                  Union Calendar No. 59
105th CONGRESS
  1st Session
                                H. R. 1486

                          [Report No. 105-94]

   To consolidate international affairs agencies, to reform foreign 
assistance programs, to authorize appropriations for foreign assistance 
   programs and for the Department of State and related agencies for 
          fiscal years 1998 and 1999, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 29, 1997

  Mr. Gilman introduced the following bill; which was referred to the 
                  Committee on International Relations

                              May 9, 1997

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on April 
                               29, 1997]

_______________________________________________________________________

                                 A BILL


 
   To consolidate international affairs agencies, to reform foreign 
assistance programs, to authorize appropriations for foreign assistance 
   programs and for the Department of State and related agencies for 
          fiscal years 1998 and 1999, 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 Policy Reform Act''.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) Divisions.--This Act is organized into three divisions as 
follows:
            (1) Division A--International Affairs Agency Consolidation, 
        Foreign Assistance Reform, and Foreign Assistance 
        Authorizations.
            (2) Division B--Foreign Relations Authorizations.
            (3) Division C--Funding Levels.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.

    DIVISION A--INTERNATIONAL AFFAIRS AGENCY CONSOLIDATION, FOREIGN 
        ASSISTANCE REFORM, AND FOREIGN ASSISTANCE AUTHORIZATIONS

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Short title.
Sec. 102. Declaration of policy.

   TITLE II--CONSOLIDATION OF CERTAIN INTERNATIONAL AFFAIRS AGENCIES

                     Chapter 1--General Provisions

Sec. 201. Short title
Sec. 202. Definitions.

 Chapter 2--United States International Development Cooperation Agency

  subchapter a--abolition of united states international development 
 cooperation agency and transfer of functions to united states agency 
                     for international development
Sec. 211. Abolition of United States International Development 
                            Cooperation Agency.
Sec. 212. Transfer of functions to United States Agency for 
                            International Development.
Ssubchapter b--continuation of united states agency for international 
    development and placement of administrator of agency under the 
                  direction of the secretary of state
Sec. 221. Continuation of United States Agency for International 
                            Development and placement of Administrator 
                            of Agency under the direction of the 
                  subchapter c--conforming amendments
Sec. 231. Conforming amendments.
Sec. 232. Other references.
Sec. 233. Effective date.

                  TITLE III--FOREIGN ASSISTANCE REFORM

Sec. 301. Graduation from development assistance.
Sec. 302. Limitation on government-to-government assistance.
Sec. 303. Micro- and small enterprise development credits.
Sec. 304. Microenterprise development grant assistance.
Sec. 305. Private sector enterprise funds.
Sec. 306. Development credit authority.
Sec. 307. Foreign government parking fines.
Sec. 308. Withholding United States assistance to countries that aid 
                            the Government of Cuba.

               TITLE IV--DEFENSE AND SECURITY ASSISTANCE

                Chapter 1--Narcotics Control Assistance

Sec. 401. Definition.
Sec. 402. Authorization of appropriations.
Sec. 403. Authority to withhold bilateral assistance and oppose 
                            multilateral development assistance for 
                            major illicit drug producing countries, 
                            drug-transit countries, and money 
                            laundering countries.

   Chapter 2--Nonproliferation, antiterrorism, demining, and related 
                                programs

Sec. 411. Nonproliferation, antiterrorism, demining, and related 
                            programs.

             Chapter 3--Foreign Military Financing Program

Sec. 421. Authorization of appropriations.
Sec. 422. Assistance for Israel.
Sec. 423. Assistance for Egypt.
Sec. 424. Authorization of assistance to facilitate transition to NATO 
                            membership under NATO Participation Act of 
                            1994.
Sec. 425. Loans for Greece and Turkey.
Sec. 426. Limitations on loans.
Sec. 427. Administrative expenses.

        Chapter 4--International Military Education and Training

Sec. 431. Authorization of appropriations.
Sec. 432. IMET eligibility for Panama and Haiti.

   Chapter 5--Transfer Of Naval Vessels to Certain Foreign Countries

Sec. 441. Authority to transfer naval vessels.
Sec. 442. Costs of transfers.
Sec. 443. Expiration of authority.
Sec. 444. Repair and refurbishment of vessels in United States 
                            shipyards.

      Chapter 6--Indonesia Military Assistance Accountability Act

Sec. 451. Short title.
Sec. 452. Findings.
Sec. 453. Limitation on military assistance to the Government of 
                            Indonesia.
Sec. 454. United States military assistance and arms transfers defined.

                      Chapter 7--Other Provisions

Sec. 461. Excess defense articles for certain European countries.
Sec. 462. Transfer of certain obsolete or surplus defense articles in 
                            the war reserve allies stockpile to the 
                            Republic of Korea.
Sec. 463. Additional requirements relating to stockpiling of defense 
                            articles for foreign countries.
Sec. 464. Delivery of drawdown by commercial transportation services.
Sec. 465. Cash Flow Financing Notification.
Sec. 466. Multinational arms sales code of conduct.

                      TITLE V--ECONOMIC ASSISTANCE

                 Chapter 1--Economic Support Assistance

Sec. 501. Economic support fund.
Sec. 502. Assistance for Israel.
Sec. 503. Assistance for Egypt.
Sec. 504. International Fund for Ireland.
Sec. 505. Assistance for training of civilian personnel of the Ministry 
                            of Defense of the Government of Nicaragua.
Sec. 506. Availability of amounts for Cuban Liberty and Democratic 
                            Solidarity (LIBERTAD) Act of 1996 and the 
                            Cuban Democracy Act of 1992.

                   Chapter 2--Development Assistance

            subchapter a--development assistance authorities
Sec. 511. Authorization of appropriations.
Sec. 512. Child survival activities.
Sec. 513. Requirement on assistance for Russian Federation.
Sec. 514. Humanitarian assistance for Armenia and Azerbaijan.
Sec. 515. Agricultural development and research assistance.
Sec. 516. Activities and programs in Latin America and the Caribbean 
                            region and the Asia and the Pacific region.
Sec. 517. Support fosubchapter b--operating expensestance.
Sec. 521. Operating expenses generally.
Sec. 522. Operating expenses of the Office of the Inspector General.

           Chapter 3--Urban And Environmental Credit Program

Sec. 531. Urban and environmental credit program.

                       Chapter 4--The Peace Corps

Sec. 541. Authorization of appropriations.
Sec. 542. Activities of the Peace Corps in the former Soviet Union and 
                            Mongolia.
Sec. 543. Amendments to the Peace Corps Act.

              Chapter 5--International Disaster Assistance

Sec. 551. Authority to provide reconstruction assistance.
Sec. 552. Authorizations of appropriations.

                         Chapter 6--Debt Relief

Sec. 561. Debt restructuring for foreign assistance.
Sec. 562. Debt buybacks or sales for debt swaps.

                 Chapter 7--Other Assistance Provisions

Sec. 571. Exemption from restrictions on assistance through 
                            nongovernmental organizations.
Sec. 572. Funding requirements relating to United States private and 
                            voluntary organizations.
Sec. 573. Documentation requested of private and voluntary 
                            organizations.
Sec. 574. Encouragement of free enterprise and private participation.
Sec. 575. Sense of the Congress relating to United States cooperatives 
                            and credit unions.
Sec. 576. Food assistance to the Democratic People's Republic of Korea.
Sec. 577. Withholding of assistance to countries that provide nuclear 
                            fuel to Cuba.

                 TITLE VI--TRADE AND DEVELOPMENT AGENCY

Sec. 601. Authorization of appropriations.

          TITLE VII--SPECIAL AUTHORITIES AND OTHER PROVISIONS

                     Chapter 1--Special Authorities

Sec. 701. Enhanced transfer authority.
Sec. 702. Authority to meet unanticipated contingencies.
Sec. 703. Special waiver authority.
Sec. 704. Termination of assistance.
Sec. 705. Local assistance to human rights groups in Cuba.

                           Chapter 2--Repeals

Sec. 711. Repeal of obsolete provisions.

            DIVISION B--FOREIGN RELATIONS AUTHORIZATIONS ACT

                      TITLE X--GENERAL PROVISIONS

Sec. 1001. Short title.
Sec. 1002. Statement of history of legislation.
Sec. 1003. Definitions.

 TITLE XI--AUTHORIZATION OF APPROPRIATIONS FOR DEPARTMENT OF STATE AND 
         CERTAIN INTERNATIONAL AFFAIRS FUNCTIONS AND ACTIVITIES

Sec. 1101. Administration of Foreign Affairs.
Sec. 1102. International organizations, programs, and conferences.
Sec. 1103. International commissions.
Sec. 1104. Migration and refugee assistance.
Sec. 1105. Asia Foundation.
Sec. 1106. United States informational, educational, and cultural 
                            programs.
Sec. 1107. United States arms control and disarmament.

       TITLE XII--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES

                 Chapter 1--Authorities And Activities

Sec. 1201. Revision of Department of State rewards program.
Sec. 1202. Foreign Service National Separation Liability Trust Fund.
Sec. 1203. Capital Investment Fund.
Sec. 1204. International Center reserve funds.
Sec. 1205. Proceeds of sale of foreign properties.
Sec. 1206. Reduction of reporting.
Sec. 1207. Contracting for local guards services overseas.
Sec. 1208. Preadjudication of claims.
Sec. 1209. Expenses relating to certain international claims and 
                            proceedings.
Sec. 1210. Establishment of fee account and providing for passport 
                            information services.
Sec. 1211. Establishment of machine readable fee account.
Sec. 1212. Retention of additional defense trade controls registration 
                            fees.
Sec. 1213. Training.
Sec. 1214. Recovery of costs of health care services.
Sec. 1215. Fee for use of diplomatic reception rooms.
Sec. 1216. Fees for commercial services.
Sec. 1217. Budget presentation documents.
Sec. 1218. Extension of certain adjudication provisions.
Sec. 1219. Grants to overseas educational facilities.
Sec. 1220. Grants to remedy international child abductions.

       Chapter 2--Consular Authorities of the Department of State

Sec. 1241. Use of certain passport processing fees for enhanced 
                            passport services.
Sec. 1242. Consular officers.
Sec. 1243. Repeal of outdated consular receipt requirements.
Sec. 1244. Elimination of duplicate publication requirements.

                   Chapter 3--Refugees And Migration

Sec. 1261. Report to Congress concerning Cuban emigration policies.
Sec. 1262. Reprogramming of migration and refugee assistance funds.

  TITLE XIII--ORGANIZATION OF THE DEPARTMENT OF STATE; DEPARTMENT OF 
                  STATE PERSONNEL; THE FOREIGN SERVICE

           Chapter 1--Organization Of the Department of State

Sec. 1301. Coordinator for counterterrorism.
Sec. 1302. Elimination of statutory establishment of certain positions 
                            of the Department of State.
Sec. 1303. Establishment of Assistant Secretary of State for Human 
                            Resources.
Sec. 1304. Establishment of Assistant Secretary of State for Diplomatic 
                            Security.
Sec. 1305. Special envoy for Tibet.
Sec. 1306. Responsibilities for bureau charged with refugee assistance.

  Chapter 2--Personnel of the Department of State; the Foreign Service

Sec. 1321. Authorized strength of the Foreign Service.
Sec. 1322. Nonovertime differential pay.
Sec. 1323. Authority of Secretary to separate convicted felons from 
                            service.
Sec. 1324. Career counseling.
Sec. 1325. Report concerning minorities and the Foreign Service.
Sec. 1326. Retirement benefits for involuntary separation.
Sec. 1327. Availability pay for certain criminal investigators within 
                            the diplomatic security service.
Sec. 1328. Labor management relations.
Sec. 1329. Office of the Inspector General.

 TITLE XIV--UNITED STATES PUBLIC DIPLOMACY: AUTHORITIES AND ACTIVITIES 
  FOR UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL PROGRAMS

Sec. 1401. Extension of au pair programs.
Sec. 1402. Retention of interest.
Sec. 1403. Center for Cultural and Technical Interchange Between North 
                            and South.
Sec. 1404. Use of selected program fees.
Sec. 1405. Muskie fellowship program.
Sec. 1406. Working group on United States Government sponsored 
                            international exchanges and training.
Sec. 1407. Educational and cultural exchanges and scholarships for 
                            Tibetans and Burmese.
Sec. 1408. United States-Japan commission.
Sec. 1409. Surrogate broadcasting studies.
Sec. 1410. Authority to administer summer travel/work programs.
Sec. 1411. Permanent administrative authorities regarding 
                            appropriations.
Sec. 1412. Authorities of the broadcasting board of governors.

   TITLE XV--INTERNATIONAL ORGANIZATIONS; UNITED NATIONS AND RELATED 
                                AGENCIES

                     Chapter 1--General Provisions

Sec. 1501. Service in international organizations.
Sec. 1502. Organization of American States.

             Chapter 2--United Nations and Related Agencies

Sec. 1521. Reform in budget decisionmaking procedures of the United 
                            Nations and its specialized agencies.
Sec. 1522. Reports on efforts to promote full equality at the United 
                            Nations for Israel.
Sec. 1523. United Nations Population Fund.
Sec. 1524. Continued extension of privileges, exemptions, and 
                            immunities of the International 
                            Organizations Immunities Act to UNIDO.

             TITLE XVI--ARMS CONTROL AND DISARMAMENT AGENCY

Sec. 1601. Comprehensive compilation of arms control and disarmament 
                            studies.
Sec. 1602. Use of funds.

                 TITLE XVII--FOREIGN POLICY PROVISIONS

Sec. 1701. United States policy regarding the involuntary return of 
                            refugees.
Sec. 1702. United States policy with respect to the involuntary return 
                            of persons in danger of subjection to 
                            torture.
Sec. 1703. Reports on claims by United States firms against the 
                            Government of Saudi Arabia.
Sec. 1704. Human rights reports.
Sec. 1705. Reports on determinations under title IV of the Libertad 
                            Act.
Sec. 1706. Reports and policy concerning diplomatic immunity.
Sec. 1707. Congressional statement with respect to efficiency in the 
                            conduct of foreign policy.
Sec. 1708. Congressional statement concerning Radio Free Europe/Radio 
                            Liberty.
Sec. 1709. Programs or projects of the International Atomic Energy 
                            Agency in Cuba.
Sec. 1710. United States policy with respect to Jerusalem as the 
                            capital of Israel.
Sec. 1711. Report on compliance with the Hague Convention on 
                            International Child Abduction.
Sec. 1712. Sense of Congress relating to recognition of the ecumenical 
                            patriarchate by the government of Turkey.
Sec. 1713. Return of Hong Kong to People's Republic of China.
Sec. 1714. Development of democracy in the Republic of Serbia.
Sec. 1715. Relations with Vietnam.
Sec. 1716. Statement concerning return of or compensation for wrongly 
                            confiscated foreign properties.

                       DIVISION C--FUNDING LEVELS

Sec. 2001. Authorization of appropriations for certain programs.

    DIVISION A--INTERNATIONAL AFFAIRS AGENCY CONSOLIDATION, FOREIGN 
        ASSISTANCE REFORM, AND FOREIGN ASSISTANCE AUTHORIZATIONS

                      TITLE I--GENERAL PROVISIONS

SEC. 101. SHORT TITLE.

    This division may be cited as the ``Foreign Assistance Reform Act 
of 1997''.

SEC. 102. DECLARATION OF POLICY.

    The Congress declares the following:
            (1) United States leadership overseas must be maintained to 
        support America's vital national security, economic, and 
        humanitarian overseas interests.
            (2) As part of this leadership, United States foreign 
        assistance programs are essential to support America's overseas 
        interests.
            (3) Following the end of the Cold War, foreign assistance 
        programs must be reformed to take advantage of the 
        opportunities for the United States in the 21st century.

   TITLE II--CONSOLIDATION OF CERTAIN INTERNATIONAL AFFAIRS AGENCIES

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 201. SHORT TITLE

    This title may be cited as the ``International Affairs Agency 
Consolidation Act of 1997''.

SEC. 202. DEFINITIONS.

    The following terms have the following meanings for the purposes of 
this title:
            (1) The term ``USAID'' means the United States Agency for 
        International Development.
            (2) The term ``Federal agency'' has the meaning given to 
        the term ``agency'' by section 551(1) of title 5, United States 
        Code.
            (3) The term ``function'' means any duty, obligation, 
        power, authority, responsibility, right, privilege, activity, 
        or program.

 CHAPTER 2--UNITED STATES INTERNATIONAL DEVELOPMENT COOPERATION AGENCY

  Subchapter A--Abolition of United States International Development 
 Cooperation Agency and Transfer of Functions to United States Agency 
                     for International Development

SEC. 211. ABOLITION OF UNITED STATES INTERNATIONAL DEVELOPMENT 
              COOPERATION AGENCY.

    (a) In General.--The United States International Development 
Cooperation Agency is hereby abolished.
    (b) Conforming Amendments.--The following shall cease to be 
effective:
            (1) Reorganization Plan Numbered 2 of 1979 (5 U.S.C. App.).
            (2) Sections 1-101 through 1-103, sections 1-401 through 1-
        403, and such other provisions that relate to the United States 
        International Development Cooperation Agency or the Director of 
        such Agency, of Executive Order 12163 (22 U.S.C. 2381 note; 
        relating to administration of foreign assistance and related 
        functions).
            (3) The International Development Cooperation Agency 
        Delegation of Authority Numbered 1 (44 Fed. Reg. 57521), except 
        for section 1-6 of such Delegation of Authority.
            (4) Section 3 of Executive Order 12884 (58 Fed. Reg. 64099; 
        relating to the delegation of functions under the Freedom for 
        Russia and Emerging Eurasian Democracies and Open Markets 
        Support Act of 1992, the Foreign Assistance Act of 1961, the 
        Foreign Operations, Export Financing and Related Programs 
        Appropriations Act, 1993, and section 301 of title 3, United 
        States Code).
    (c) Effective Date.--This section shall take effect 6 months after 
the date of the enactment of this Act.

SEC. 212. TRANSFER OF FUNCTIONS TO UNITED STATES AGENCY FOR 
              INTERNATIONAL DEVELOPMENT.

    (a) In General.--There are transferred to the Administrator of the 
United States Agency for International Development all functions of the 
Director of United States International Development Cooperation Agency 
and all functions of such Agency and any officer or component of such 
agency under any statute, reorganization plan, Executive order, or 
other provision of law before the effective date of this title.
    (b) Effective Date.--This section shall take effect 6 months after 
the date of the enactment of this Act.

SEC. 213. TRANSITION PROVISIONS.

    (a) Transfer of Personnel, Property, Records, and Unexpended 
Balances.--
            (1) Personnel, property, and records.--So much of the 
        personnel, property, and records of the United States 
        International Development Cooperation Agency as the Director of 
        the Office of Management and Budget shall determine shall be 
        transferred to the United States Agency for International 
        Development at such time or times as the Director of the Office 
        of Management and Budget shall provide.
            (2) Unexpended balances.--To the extent provided in advance 
        in appropriations Acts, so much of the unexpended balances of 
        appropriations, allocations, and other funds employed, used, 
        held, available, or to be made available to the United States 
        International Development Cooperation Agency as the Director of 
        the Office of Management and Budget shall determine shall be 
        transferred to the United States Agency for International 
        Development at such time or times as the Director of Office of 
        Management and Budget shall provide, except that no such 
        unexpended balances transferred shall be used for purposes 
        other than those for which the appropriation was originally 
        made.
    (b) Terminating Agency Affairs.--The Director of the Office of 
Management and Budget shall provide for terminating the affairs of the 
United States International Development Cooperation Agency and for such 
further measures and dispositions as such Director deems necessary to 
accomplish the purposes of this subchapter.

 Subchapter B--Continuation of United States Agency for International 
    Development and Placement of Administrator of Agency under the 
                  Direction of the Secretary of State

SEC. 221. CONTINUATION OF UNITED STATES AGENCY FOR INTERNATIONAL 
              DEVELOPMENT AND PLACEMENT OF ADMINISTRATOR OF AGENCY 
              UNDER THE DIRECTION OF THE SECRETARY OF STATE.

    (a) Continuation of USAID as Federal Agency.--The United States 
Agency for International Development, established in the Department of 
State pursuant to the State Department Delegation of Authority Numbered 
104 (26 Fed. Reg. 10608) and subsequently transferred to the United 
States International Development Cooperation Agency pursuant to the 
International Development Cooperation Agency Delegation of Authority 
Numbered 1 (44 Fed. Reg. 57521), shall be continued in existence as a 
Federal agency of the United States.
    (b) Placement of Administrator of USAID Under Direction of 
Secretary of State.--
            (1) In general.--The Administrator of the United States 
        Agency for International Development, appointed pursuant to 
        section 624(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2384(a))--
                    (A) shall continue to head such Agency; and
                    (B) shall be under the direction of the Secretary 
                of State.
            (2) Other requirements.--Except to the extent inconsistent 
        with other provisions of this Act, the Administrator--
                    (A) shall continue to exercise all functions that 
                the Administrator exercised before the effective date 
                of this Act; and
                    (B) shall exercise all functions transferred to the 
                Administrator pursuant to section 212.
    (c) Other Officers of AID.--The other officers of the United States 
Agency for International Development, appointed pursuant to section 
624(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2384(a)), shall 
continue to exercise such functions as the Administrator deems 
appropriate.

                  Subchapter C--Conforming Amendments

SEC. 231. CONFORMING AMENDMENTS.

    (a) Title 5, United States Code.--Section 7103(a)(2)(iv) of title 
5, United States Code, is amended by striking ``the United States 
International Development Cooperation Agency'' and inserting ``the 
United States Agency for International Development''.
    (b) Inspector General Act of 1978.--Section 8A of the Inspector 
General Act of 1978 (5 U.S.C. App. 8A) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (2);
                    (B) by striking ``Agency for International 
                Development--'' and all that follows through ``shall 
                supervise'' and inserting ``Agency for International 
                Development shall supervise''; and
                    (C) by striking ``; and'' at the end and inserting 
                a period;
            (2) by striking subsection (c); and
            (3) by striking subsection (f).
    (c) International Security and Development Cooperation Act of 
1980.--Section 316 of the International Security and Development 
Cooperation Act of 1980 (22 U.S.C. 2151 note) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking ``Director 
                of the United States International Development 
                Cooperation Agency'' and inserting ``Administrator of 
                the United States Agency for International 
                Development''; and
                    (B) in the second sentence, by striking 
                ``Director'' and inserting ``Administrator''; and
            (2) in subsection (b), by striking ``Director'' and 
        inserting ``Administrator''.
    (d) State Department Basic Authorities Act of 1956.--(1) Section 
25(f) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 
2697(f)) is amended by striking ``Director of the United States 
International Development Cooperation Agency'' and inserting 
``Administrator of the United States Agency for International 
Development''.
    (2) Section 26(b) of such Act (22 U.S.C. 2698(b)) is amended by 
striking ``Director of the United States International Development 
Cooperation Agency'' and inserting ``Administrator of the United States 
Agency for International Development''.
    (3) Section 32 of such Act (22 U.S.C. 2704) is amended in the 
second sentence by striking ``Director of the United States 
International Development Cooperation Agency'' and inserting 
``Administrator of the United States Agency for International 
Development''.
    (e) Foreign Service Act of 1980.--(1) Section 202(a)(1) of the 
Foreign Service Act of 1980 (22 U.S.C. 3922(a)(1)) is amended by 
striking ``Director of the United States International Development 
Cooperation Agency'' and inserting ``Administrator of the United States 
Agency for International Development''.
    (2) Section 210 of such Act (22 U.S.C. 3930) is amended in the 
second sentence by striking ``United States International Development 
Cooperation Agency'' and inserting ``United States Agency for 
International Development''.
    (3) Section 1003(a) of such Act (22 U.S.C. 4103(a)) is amended by 
striking ``United States International Development Cooperation Agency'' 
and inserting ``United States Agency for International Development''.
    (4) Section 1101(c) of such Act (22 U.S.C. 4131(c)) is amended by 
striking ``United States International Development Cooperation Agency'' 
and inserting ``United States Agency for International Development''.
    (f) Internal Revenue Code of 1986.--(1) Section 170(m)(7) of the 
Internal Revenue Code of 1986, is amended by striking ``Director of the 
United States International Development Cooperation Agency'' and 
inserting ``Administrator of the United States Agency for International 
Development''.
    (2) Section 2055(g)(6) of the Internal Revenue Code of 1986, is 
amended by striking ``Director of the United States International 
Development Cooperation Agency'' and inserting ``Administrator of the 
United States Agency for International Development''.
    (g) Title 49, United States Code.--Section 40118(d) of title 49, 
United States Code, is amended by striking ``Director of the United 
States International Development Cooperation Agency'' and inserting 
``Administrator of the United States Agency for International 
Development''.
    (h) Export Administration Act of 1979.--Section 6(g) of the Export 
Administration Act of 1979 (50 U.S.C. App. 2405(g)) is amended--
            (1) in the third sentence, by striking ``Director of the 
        United States International Development Cooperation Agency'' 
        and inserting ``Administrator of the United States Agency for 
        International Development'';
            (2) in the fourth sentence, by striking ``Director'' and 
        inserting ``Administrator''; and
            (3) in the sixth sentence, by striking ``Director of the 
        United States International Development Cooperation Agency'' 
        and inserting ``Administrator of the United States Agency for 
        International Development''.

SEC. 232. OTHER REFERENCES.

    Any reference in any statute, reorganization plan, Executive order, 
regulation, agreement, determination, or other official document or 
proceeding to--
            (1) the Director of the United States International 
        Development Cooperation Agency or any other officer or employee 
        of the United States International Development Cooperation 
        Agency shall be deemed to refer to the Administrator of the 
        United States Agency for International Development; and
            (2) the United States International Development Cooperation 
        Agency shall be deemed to refer to the United States Agency for 
        International Development.

SEC. 233. EFFECTIVE DATE.

    This subchapter shall take effect 6 months after the date of the 
enactment of this Act.

                  TITLE III--FOREIGN ASSISTANCE REFORM

SEC. 301. GRADUATION FROM DEVELOPMENT ASSISTANCE.

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

``SEC. 634. CONGRESSIONAL PRESENTATION DOCUMENTS.

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

SEC. 302. LIMITATION ON GOVERNMENT-TO-GOVERNMENT ASSISTANCE.

    (a) In General.--For each of the fiscal years 1998 and 1999, the 
President should allocate an aggregate level to private and voluntary 
organizations and cooperatives under the Foreign Assistance Act of 1961 
(22 U.S.C. 2151 et seq.) which reflects an increasing level allocated 
to such organizations and cooperatives under such Act since fiscal year 
1995.
    (b) Definition.--For purposes of this section, the term ``private 
and voluntary organization'' means a private non-governmental 
organization which--
            (1) is organized under the laws of a country;
            (2) receives funds from private sources;
            (3) operates on a not-for-profit basis with appropriate 
        tax-exempt status if the laws of the country grant such status 
        to not-for-profit organizations;
            (4) is voluntary in that it receives voluntary 
        contributions of money, time, or in-kind support from the 
        public; and
            (5) is engaged or intends to be engaged in voluntary, 
        charitable, development, or humanitarian assistance activities.
    (c) Report.--
            (1) In general.--Not later than September 30, 1997, the 
        United States Agency for International Development shall submit 
        a report to the Congress on the amount of its funding being 
        channeled through and private and voluntary organizations.
            (2) Additional requirements.--(A) The report should use 
        fiscal year 1995 as a baseline and include an implementation 
        plan for steadily increasing the percentage of assistance 
        channeled through such organizations, consistent with the 
        funding commitment announced by Vice President Gore in March 
        1995.
            (B) The report should also indicate the proportion of funds 
        made available under the following provisions and channeled 
        through such organizations:
                    (i) Chapter 11 of part I of the Foreign Assistance 
                Act of 1961 (22 U.S.C. 2295 et seq.).
                    (ii) The Support for East European Democracy (SEED) 
                Act of 1989 (22 U.S.C. 5401 et seq.).
                    (iii) Chapter 4 of part II of the Foreign 
                Assistance Act of 1961 (22 U.S.C. 2346).

SEC. 303. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.

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

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

    ``(a) Findings and Policy.--The Congress finds and declares that--
            ``(1) the development of micro- and small enterprise, 
        including cooperatives, is a vital factor in the stable growth 
        of developing countries and in the development and stability of 
        a free, open, and equitable international economic system;
            ``(2) it is, therefore, in the best interests of the United 
        States to assist the development of the private sector in 
        developing countries and to engage the United States private 
        sector in that process;
            ``(3) the support of private enterprise can be served by 
        programs providing credit, training, and technical assistance 
        for the benefit of micro- and small enterprises; and
            ``(4) programs that provide credit, training, and technical 
        assistance to private institutions can serve as a valuable 
        complement to grant assistance provided for the purpose of 
        benefiting micro- and small private enterprise.
    ``(b) Program.--To carry out the policy set forth in subsection 
(a), the President is authorized to provide assistance to increase the 
availability of credit to micro- and small enterprises lacking full 
access to credit, including through--
            ``(1) loans and guarantees to credit institutions for the 
        purpose of expanding the availability of credit to micro- and 
        small enterprises;
            ``(2) training programs for lenders in order to enable them 
        to better meet the credit needs of micro- and small 
        entrepreneurs; and
            ``(3) training programs for micro- and small entrepreneurs 
        in order to enable them to make better use of credit and to 
        better manage their enterprises.
    ``(c) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        the following amounts for the following purposes (in addition 
        to amounts otherwise available for such purposes):
                    ``(A)(i) $1,500,000 for each of the fiscal years 
                1998 and 1999 to carry out subsection (b)(1).
                    ``(ii) Funds authorized to be appropriated under 
                this subparagraph shall be made available for the 
                subsidy cost, as defined in section 502(5) of the 
                Federal Credit Reform Act of 1990, for activities under 
                such subsection.
                    ``(B) $500,000 for each of the fiscal years 1998 
                and 1999 to carry out paragraphs (2) and (3) of 
                subsection (b).
            ``(2) Availability of amounts.--Amounts authorized to be 
        appropriated under paragraph (1) are authorized to remain 
        available until expended.''.

SEC. 304. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.

    Chapter 1 of part I of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151 et seq.) is amended by inserting after section 108, as 
amended by this Act, the following new section:

``SEC. 108A. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.

    ``(a) Authorization.--(1) In carrying out this part, the 
Administrator of the United States Agency for International Development 
is authorized to provide grant assistance for programs of credit and 
other assistance for micro enterprises in developing countries.
    ``(2) Assistance authorized under paragraph (1) shall be provided 
through organizations that have a capacity to develop and implement 
microenterprise programs, including particularly--
                    ``(A) United States and indigenous private and 
                voluntary organizations;
                    ``(B) United States and indigenous credit unions 
                and cooperative organizations; or
                    ``(C) other indigenous governmental and 
                nongovernmental organizations.
    ``(3) Approximately one-half of the credit assistance authorized 
under paragraph (1) shall be used for poverty lending programs, 
including the poverty lending portion of mixed programs. Such 
programs--
            ``(A) shall meet the needs of the very poor members of 
        society, particularly poor women; and
            ``(B) should provide loans of $300 or less in 1995 United 
        States dollars to such poor members of society.
    ``(4) The Administrator should continue support for mechanisms 
that--
            ``(A) provide technical support for field missions;
            ``(B) strengthen the institutional development of the 
        intermediary organizations described in paragraph (2); and
            ``(C) share information relating to the provision of 
        assistance authorized under paragraph (1) between such field 
        missions and intermediary organizations.
    ``(b) Monitoring System.--In order to maximize the sustainable 
development impact of the assistance authorized under subsection 
(a)(1), the Administrator shall, in accordance with section 1115 of 
title 31, United States Code (relating to performance plans), establish 
a monitoring system that--
            ``(1) establishes performance goals for such assistance and 
        expresses such goals in an objective and quantifiable form, to 
        the extent feasible;
            ``(2) establishes performance indicators to be used in 
        measuring or assessing the achievement of the goals and 
        objectives of such assistance; and
            ``(3) provides a basis for recommendations for adjustments 
        to such assistance to enhance the sustainable development 
        impact of such assistance, particularly the impact of such 
        assistance on the very poor, particularly poor women.''.

SEC. 305. PRIVATE SECTOR ENTERPRISE FUNDS.

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

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

    ``(a) Authority.--(1) The President may provide funds and support 
to Enterprise Funds designated in accordance with subsection (b) that 
are or have been established for the purposes of promoting--
            ``(A) development of the private sectors of eligible 
        countries, including small businesses, the agricultural sector, 
        and joint ventures with United States and host country 
        participants; and
            ``(B) policies and practices conducive to private sector 
        development in eligible countries;
on the same basis as funds and support may be provided with respect to 
Enterprise Funds for Poland and Hungary under the Support for East 
European Democracy (SEED) Act of 1989 (22 U.S.C. 5401 et seq.).
    ``(2) Funds may be made available under this section 
notwithstanding any other provision of law, except sections 502B and 
490 of this Act.
    ``(b) Countries Eligible for Enterprise Funds.--(1) Except as 
provided in paragraph (2), the President is authorized to designate a 
private, nonprofit organization as eligible to receive funds and 
support pursuant to this section with respect to any country eligible 
to receive assistance under part I of this Act in the same manner and 
with the same limitations as set forth in section 201(d) of the Support 
for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5421(d)).
    ``(2) The authority of paragraph (1) shall not apply to any country 
with respect to which the President is authorized to designate an 
enterprise fund under section 498B(c) of this Act or section 201 of the 
Support for East European Democracy (SEED) Act of 1989 (22 U.S.C. 
5421).
    ``(c) Treatment Equivalent to Enterprise Funds for Poland and 
Hungary.--Except as otherwise specifically provided in this section, 
the provisions contained in section 201 of the Support for East 
European Democracy (SEED) Act of 1989 (22 U.S.C. 5421) (excluding the 
authorizations of appropriations provided in subsection (b) of that 
section) shall apply to any Enterprise Fund that receives Funds and 
support under this section. The officers, members, or employees of an 
Enterprise Fund that receive funds and support under this section shall 
enjoy the same status under law that is applicable to officers, 
members, or employees of the Enterprise Funds for Poland and Hungary 
under section 201 of the Support for East European Democracy (SEED) Act 
of 1989 (22 U.S.C. 5421).
    ``(d) Reporting Requirement.--Notwithstanding any other provision 
of this section, the requirement of section 201(p) of the Support for 
East European Democracy (SEED) Act of 1989 (22 U.S.C. 5421(p)), that an 
Enterprise Fund shall be required to publish an annual report not later 
than January 31 each year, shall not apply with respect to an 
Enterprise Fund that receives funds and support under this section for 
the first twelve months after it is designated as eligible to receive 
such funds and support.
    ``(e) Funding.--(1) Amounts made available for a fiscal year to 
carry out chapter 1 of part I of this Act (relating to development 
assistance) and to carry out chapter 4 of part II of this Act (relating 
to the economic support fund) shall be available for such fiscal year 
to carry out this section, in addition to amounts otherwise available 
for such purposes.
    ``(2) In addition to amounts available under paragraph (1) for a 
fiscal year, amounts made available for such fiscal year to carry out 
chapter 10 of part I of this Act (relating to the Development Fund for 
Africa) shall be available for such fiscal year to carry out this 
section with respect to countries in Africa.''.

SEC. 306. DEVELOPMENT CREDIT AUTHORITY.

    The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is 
amended by inserting after section 106 the following:

``SEC. 107A. DEVELOPMENT CREDIT AUTHORITY.

    ``(a) General Authority.--The President is authorized to use credit 
authority (loans, loan guarantees, and other investments involving the 
extension of credit) to achieve any of the development purposes of this 
part in cases where--
            ``(1) the borrowers or activities are deemed sufficiently 
        creditworthy and do not otherwise have access to such credit; 
        and
            ``(2) the use of credit authority would be appropriate to 
        the achievement of such development purposes.
    ``(b) Priority Sector Policies and Activities.--
            ``(1) In general.--To the maximum extent practicable, 
        preference shall be given to the use of credit authority to 
        promote--
                    ``(A) micro- and small enterprise development 
                policies of section 108;
                    ``(B) sustainable urban and environmental 
                activities pursuant to the policy directives set forth 
                in this part; and
                    ``(C) other development activities that will 
                support and enhance grant-financed policy and 
                institutional reforms under this part.
            ``(2) Development credit authority.--The credit authority 
        described in paragraph (1) shall be known as the `Development 
        Credit Authority'.
    ``(c) General Authority.--
            ``(1) Authority.--Of the amounts made available to carry 
        out this chapter, chapters 10 and 11 of this part, chapter 4 of 
        part II of this Act, and the Support for East European 
        Democracy (SEED) Act of 1989 for fiscal years 1998 and 1999, 
        not more than $13,000,000 for each such fiscal year may be made 
        available to carry out this section.
            ``(2) Limitations.--(A) Funds made available under 
        paragraph (1) shall be used for activities in the same 
        geographic region for which such funds were originally 
        allocated.
            ``(B) The President shall notify the congressional 
        committees specified in section 634A at least fifteen days in 
        advance of each transfer of funds under paragraph (1) in 
        accordance with procedures applicable to reprogramming 
        notifications under such section.
            ``(3) Subsidy cost.--Amounts made available under paragraph 
        (1) shall be made available for the subsidy cost, as defined in 
        section 502(5) of the Federal Credit Reform Act of 1990, for 
        activities under this section.
            ``(4) Administrative expenses.--
                    ``(A) Amounts made available.--Of the amounts made 
                available under paragraph (1) for a fiscal year, not 
                more than $1,500,000 may be made available for 
                administrative expenses to carry out this section.
                    ``(B) Authorization of appropriations.--In addition 
                to amounts made available under subparagraph (A), there 
                are authorized to be appropriated for administrative 
                expenses to carry out this section and section 221 
                $6,000,000 for each of the fiscal years 1998 and 1999.
                    ``(C) Transfer authority.--Amounts made available 
                under and subparagraph (A) and amounts authorized to be 
                appropriated under subparagraph (B) may be transferred 
                and merged with amounts made available for `Operating 
                Expenses of the Agency for International Development'.
            ``(5) Availability.--Amounts made available under paragraph 
        (1) are authorized to remain available until expended.
    ``(d) General Provisions Applicable to Development Credit 
Authority.--
            ``(1) Policy provisions.--In providing the credit 
        assistance authorized by this section, the President should 
        apply, as appropriate, the policy provisions in this part 
        applicable to development assistance activities.
            ``(2) Default and procurement provisions.--
                    ``(A) Default provision.--The provisions of section 
                620(q) of this Act, or any comparable provisions of 
                law, shall not be construed to prohibit assistance to a 
                country in the event that a private sector recipient of 
                assistance furnished under this section is in default 
                in its payment to the United States for the period 
                specified in such section.
                    ``(B) Procurement provision.--Assistance may be 
                provided under this section without regard to section 
                604(a) of this Act.
            ``(3) Terms and conditions of credit assistance.--(A) 
        Assistance provided under this section shall be offered on such 
        terms and conditions, including fees charged, as the President 
        may determine.
            ``(B) The principal amount of loans made or guaranteed 
        under this section in any fiscal year, with respect to any 
        single country or borrower, may not exceed $100,000,000.
            ``(C) No payment may be made under any guarantee issued 
        under this section for any loss arising out of fraud or 
        misrepresentation for which the party seeking payment is 
        responsible.
            ``(4) Full faith and credit.--All guarantees issued under 
        this section shall constitute obligations, in accordance with 
        the terms of such guarantees, of the United States of America 
        and the full faith and credit of the United States of America 
        is hereby pledged for the full payment and performance of such 
        obligations to the extent of the guarantee.
            ``(5) Co-financing and risk sharing.--
                    ``(A) In general.--(i) Assistance provided under 
                this section shall be in the form of co-financing or 
                risk sharing.
                    ``(ii) Credit assistance may not be provided to a 
                borrower under this section unless the Administrator of 
                the United States Agency for International Development 
                determines that there are reasonable prospects of 
                repayment by such borrower.
                    ``(B) Additional requirement.--The investment or 
                risk of the United States in any one development 
                activity may not exceed 80 percent of the total 
                outstanding investment or risk.
            ``(6) Eligible borrowers.--
                    ``(A) In general.--In order to be eligible to 
                receive credit assistance under this section, a 
                borrower shall be sufficiently credit worthy so that 
                the estimated costs (as defined in section 502 of the 
                Federal Credit Reform Act of 1990) of the proposed 
                credit assistance for the borrower does not exceed 30 
                percent of the principal amount of credit assistance to 
                be received.
                    ``(B) Additional requirement.--(i) In addition, 
                with respect to the eligibility of foreign governments 
                as an eligible borrowers under this section, the 
                Administrator of the United States Agency for 
                International Development shall make a determination 
                that the additional debt of the government will not 
                exceed the debt repayment capacity of the government.
                    ``(ii) In making the determination under clause 
                (i), the Administrator shall consult, as appropriate, 
                with international financial institutions and other 
                institutions or agencies that assess debt service 
                capacity.
            ``(7) Assessment of credit risk.--(A) The Administrator of 
        the United States Agency for International Development shall 
        use the Interagency Country Risk Assessment System (ICRAS) and 
        the methodology approved by the Office of Management and Budget 
        to assess the cost of risk credit assistance provided under 
        this section to foreign governments.
            ``(B) With respect to the provision of credit to 
        nongovernmental organizations, the Administrator--
                    ``(i) shall consult with appropriate private sector 
                institutions, including the two largest United States 
                private sector debt rating agencies, prior to 
                establishing the risk assessment standards and 
                methodologies to be used; and
                    ``(ii) shall periodically consult with such 
                institutions in reviewing the performance of such 
                standards and methodologies.
            ``(C) In addition, if the anticipated share of financing 
        attributable to public sector owned or controlled entities, 
        including the United States Agency for International 
        Development, exceeds 49 percent, the Administrator shall 
        determine the cost (as defined in section 502(5) of the Federal 
        Credit Reform Act of 1990) of such assistance by using the cost 
        and risk assessment determinations of the private sector co-
        financing entities.
            ``(8) Use of united states technology, firms, and 
        equipment.--Activities financed under this section shall, to 
        the maximum extent practicable, use or employ United States 
        technology, firms, and equipment.''.

SEC. 307. FOREIGN GOVERNMENT PARKING FINES.

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

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

    ``(a) In General.--An amount equivalent to 110 percent of the total 
unpaid fully adjudicated parking fines and penalties owed to the 
District of Columbia, Virginia, Maryland, New York, and New York City 
by the government of a foreign country as of the end of a fiscal year, 
as certified and transmitted to the President by the chief executive 
officer of each State, City, or District, shall be withheld from 
obligation for such country out of funds available in the next fiscal 
year to carry out part I of this Act, until the requirement of 
subsection (b) is satisfied.
    ``(b) Requirement.--The requirement of this subsection is satisfied 
when the Secretary of State determines and certifies to the appropriate 
congressional committees that such fines and penalties are fully paid 
to the governments of the District of Columbia, Virginia, Maryland, and 
New York.
    ``(c) Appropriate Congressional Committees Defined.--For purposes 
of this section, the term `appropriate congressional committees' means 
the Committee on International Relations and the Committee on 
Appropriations of the House of Representatives and the Committee on 
Foreign Relations and the Committee on Appropriations of the Senate.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to fines certified as of the end of fiscal year 1998 
or any fiscal year thereafter.
    (c) Technical Amendment.--The second section 620G of the Foreign 
Assistance Act of 1961, as added by section 149 of Public Law 104-164 
(110 Stat. 1436), is amended--
            (1) by redesignating such section as section 620J of such 
        Act; and
            (2) by inserting such section after section 620I of such 
        Act.

SEC. 308. WITHHOLDING UNITED STATES ASSISTANCE TO COUNTRIES THAT AID 
              THE GOVERNMENT OF CUBA.

    (a) In General.--Except as provided in subsection (b), not later 
than 180 days after the date of the enactment of this Act, the 
President shall withhold assistance under the Foreign Assistance Act of 
1961 to any foreign government providing economic, development, or 
security assistance for, or engaging in nonmarket based trade with the 
Government of Cuba.
    (b) Waiver.--The President may waive the provisions of subsection 
(a) if the President certifies to the appropriate congressional 
committees that the provision of United States assistance is important 
to the national security of the United States.
    (c) Nonmarket Based Trade Defined.--For the purpose of this 
section, the term ``nonmarket based trade'' means exports, imports, 
exchanges, or other arrangements that are provided for goods and 
services on terms more favorable than those generally available in 
applicable markets or for comparable commodities, including--
            (1) exports to the Cuban Government on terms that involve a 
        grant, concessional price, guaranty, insurance, or subsidy;
            (2) imports from the Cuban Government at preferential 
        tariff rates;
            (3) exchange arrangements that include advance delivery of 
        commodities, arrangements in which the Cuban Government is not 
        held accountable for unfulfilled exchange contracts, and 
        arrangements under which Cuba does not pay appropriate 
        transportation, insurance, or finance costs; and
            (4) the exchange, reduction, or forgiveness of debt of the 
        Cuban Government in exchange for a grant by the Cuban 
        Government of an equity interest in a property, investment, or 
        operation of the Cuban Government or of a Cuban national.

               TITLE IV--DEFENSE AND SECURITY ASSISTANCE

                CHAPTER 1--NARCOTICS CONTROL ASSISTANCE

SEC. 401. DEFINITION.

    (a) In General.--Section 481(e)(4) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2291(e)(4)) is amended--
            (1) in subparagraph (A)(ii), inserting ``or under chapter 5 
        of part II'' after ``(including chapter 4 of part II)''; and
            (2) in subparagraph (B), by inserting before the semicolon 
        at the end the following: ``, other than sales or financing 
        provided for narcotics-related purposes following notification 
        in accordance with procedures applicable to reprogramming 
        notifications under section 634A of this Act''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to assistance provided on or after the date of the 
enactment of this Act.

SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

    Section 482(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2291a(a)(1)) is amended by striking ``$147,783,000 for fiscal year 1993 
and $171,500,000 for fiscal year 1994'' and inserting ``$230,000,000 
for each of the fiscal years 1998 and 1999''.

SEC. 403. AUTHORITY TO WITHHOLD BILATERAL ASSISTANCE AND OPPOSE 
              MULTILATERAL DEVELOPMENT ASSISTANCE FOR MAJOR ILLICIT 
              DRUG PRODUCING COUNTRIES, DRUG-TRANSIT COUNTRIES, AND 
              MONEY LAUNDERING COUNTRIES.

    (a) In General.--Section 490 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2291j) is amended to read as follows:

``SEC. 490. AUTHORITY TO WITHHOLD BILATERAL ASSISTANCE AND OPPOSE 
              MULTILATERAL DEVELOPMENT ASSISTANCE FOR MAJOR ILLICIT 
              DRUG PRODUCING COUNTRIES, DRUG-TRANSIT COUNTRIES, AND 
              MONEY LAUNDERING COUNTRIES.

    ``(a) In General.--For every country identified in the report under 
section 489(a)(3), the President shall, on or after March 1, 1998, and 
March 1 of each succeeding year, to the extent considered necessary by 
the President to achieve the purposes of this chapter, take one or more 
of the following actions:
            ``(1) Withhold from obligation and expenditure any or all 
        United States assistance allocated each fiscal year in the 
        report required by section 653 for each such country.
            ``(2) Instruct the Secretary of the Treasury to instruct 
        the United States Executive Director of each multilateral 
        development bank to vote, on and after March 1 of each year, 
        against any loan or other utilization of the funds of their 
        respective institution to or for any such country.
    ``(b) Considerations.--In determining whether or not take one or 
more actions described in subsection (a), the President shall consider 
the extent to which--
            ``(1) the country has--
                    ``(A) met the goals and objectives of the United 
                Nations Convention Against Illicit Traffic in Narcotic 
                Drugs and Psychotropic Substances, including action on 
                such issues as illicit cultivation, production, 
                distribution, sale, transport and financing, and money 
                laundering, asset seizure, extradition, mutual legal 
                assistance, law enforcement and transit cooperation, 
                precursor chemical control, and demand reduction;
                    ``(B) accomplished the goals described in an 
                applicable bilateral narcotics agreement with the 
                United States or a multilateral agreement;
                    ``(C) reached agreement, or is negotiating in good 
                faith to reach agreement, to ensure that banks and 
                other financial institutions of the country maintain 
                adequate records of large United States currency 
                transactions;
                    ``(D) reached agreement, or is negotiating in good 
                faith to reach agreement, to establish a mechanism for 
                exchanging adequate records on international currency 
                transactions in connection with narcotics 
                investigations and proceedings; and
                    ``(E) taken legal and law enforcement measures to 
                prevent and punish public corruption, especially by 
                senior government officials, that facilitates the 
                production, processing, or shipment of narcotic and 
                psychotropic drugs and other controlled substances, or 
                that discourages the investigation or prosecution of 
                such acts; and
            ``(2) such actions will--
                    ``(A) promote the purposes of this chapter; and
                    ``(B) affect other United States national 
                interests.
    ``(c) Consultations with the Congress.--
            ``(1) Consultations.--The President shall consult with the 
        Congress on the status of counter-narcotics cooperation between 
        the United States and each major illicit drug producing 
        country, major drug-transit country, or major money laundering 
        country.
            ``(2) Purpose.--
                    ``(A) In general.--The purpose of the consultations 
                under paragraph (1) shall be to facilitate improved 
                discussion and understanding between the Congress and 
                the President on United States counter-narcotics goals 
                and objectives with regard to the countries described 
                in paragraph (1), including the strategy for achieving 
                such goals and objectives.
                    ``(B) Regular and special consultations.--In order 
                to carry out subparagraph (A), the President (or senior 
                officials designated by the President who are 
                responsible for international narcotics programs and 
                policies) shall meet with Members of Congress--
                            ``(i) on a quarterly basis for discussions 
                        and consultations; and
                            ``(ii) whenever time-sensitive issues 
                        arise.
    ``(d) Definition.--For purposes of this section, the term 
`multilateral development bank' means the International Bank for 
Reconstruction and Development, the International Development 
Association, the Inter-American Development Bank, the Asian Development 
Bank, the African Development Bank, and the European Bank for 
Reconstruction and Development.''.
    (b) Conforming Amendments.--(1) Section 481(e)(8) of such Act (22 
U.S.C. 2291(e)(8)) is amended by striking ``Committee on Foreign 
Affairs'' and inserting ``Committee on International Relations''.
    (2) Section 485(b) of such Act (22 U.S.C. 2291d(b)) is amended by 
striking ``Committee on Foreign Affairs'' and inserting ``Committee on 
International Relations''.
    (3) Section 488(a)(3) of such Act (22 U.S.C. 2291g(a)(3)) is 
amended by striking ``Committee on Foreign Affairs'' and inserting 
``Committee on International Relations''.
    (4) Section 489(a) of such Act (22 U.S.C. 2291h(a)) is amended--
            (A) in paragraph (3)(A), by striking ``as determined under 
        section 490(h)''; and
            (B) in the matter preceding subparagraph (A) of paragraph 
        (7), by striking ``paragraph (3)(D)'' and inserting ``paragraph 
        (3)(C)''.

   CHAPTER 2--NONPROLIFERATION, ANTITERRORISM, DEMINING, AND RELATED 
                                PROGRAMS

SEC. 411. NONPROLIFERATION, ANTITERRORISM, DEMINING, AND RELATED 
              PROGRAMS.

    (a) In General.--Part II of the Foreign Assistance Act of 1961 (22 
U.S.C. 2301 et seq.) is amended by adding at the end the following:

  ``CHAPTER 9--NONPROLIFERATION, ANTITERRORISM, DEMINING AND RELATED 
                                PROGRAMS

``SEC. 581. NONPROLIFERATION AND DISARMAMENT FUND.

    ``(a) Establishment of Fund.--The President shall establish a 
Nonproliferation and Disarmament Fund, which may be used 
notwithstanding any other provision of law, to promote bilateral and 
multilateral nonproliferation and disarmament activities--
            ``(1) to halt the proliferation of nuclear, biological, and 
        chemical weapons, their delivery systems, related technologies, 
        and other weapons;
            ``(2) to dismantle and destroy nuclear, biological, and 
        chemical weapons, their delivery systems, and conventional 
        weapons;
            ``(3) to prevent the diversion of weapons-related 
        scientific and technical expertise; and
            ``(4) to support science and technology centers in Russia 
        and the Ukraine.
    ``(b) Prohibited Activities.--Amounts made available to carry out 
subsection (a) may not be used to implement United States obligations 
pursuant to bilateral or multilateral arm control treaties or 
nonproliferation accords, including the payment of salaries and 
expenses.
    ``(c) Additional Requirements.--
            ``(1) Notification.--Amounts made available to carry out 
        subsection (a) may be provided only if the congressional 
        committees specified in section 634A of this Act are notified 
        at least fifteen days before providing funds under such 
        subsection in accordance with procedures applicable to 
        reprogramming notifications under such section.
            ``(2) Assistance for the independent states of the former 
        soviet union and international organizations.--Amounts made 
        available to carry out subsection (a) may only be provided for 
        the independent states of the former Soviet Union and 
        international organizations if the Secretary of State--
                    ``(A) determines it is in the national interest of 
                the United States to do so; and
                    ``(B) includes such determination in the 
                notification described in paragraph (1).
    ``(d) Availability of Amounts.--
            ``(1) In general.--Of the amounts made available to carry 
        out this chapter for fiscal years 1998 and 1999--
                    ``(A) not less than $15,000,000 for each such 
                fiscal year may be made available to carry out 
                subsection (a); and
                    ``(B) not more than $5,000,000 of the amount made 
                available under subparagraph (A) for fiscal year 1998, 
                and not more than $3,000,000 of such amount made 
                available in fiscal year 1999, may be used to support 
                export control programs.
            ``(2) Availability.--Amounts made available under paragraph 
        (1) are authorized to remain available until expended.

``SEC. 582. ASSISTANCE FOR ANTITERRORISM.

    ``Amounts made available to carry out this chapter for fiscal years 
1998 and 1999 may be made available to carry out chapter 8 of part II 
of this Act.

``SEC. 583. ASSISTANCE FOR DEMINING.

    ``The President is authorized to provide assistance for demining 
activities, notwithstanding any other provision of law, including--
            ``(1) to enhance the ability of countries, international 
        organizations, and nongovernmental organizations to detect and 
        clear landmines; and
            ``(2) to educate affected populations about the dangers of 
        landmines.

``SEC. 584. ASSISTANCE FOR RELATED PROGRAMS.

    ``(a) In General.--Amounts made available to carry out this chapter 
for fiscal years 1998 and 1999 may be made available to carry out 
section 301 of this Act for voluntary contributions to the 
International Atomic Energy Agency (IAEA) and the Korean Peninsula 
Energy Development Organization (KEDO) and to programs administered by 
such organizations. -
    ``(b) Limitation.--Of the amounts made available under subsection 
(a) for fiscal years 1998 and 1999, not more than $30,000,000 may be 
made available for each fiscal year to KEDO for the administrative 
expenses and heavy fuel oil costs associated with implementation of the 
Agreed Framework.

``SEC. 585. DEFINITIONS.

    ``As used in this chapter--
            ``(1) Agreed framework.--The term `Agreed Framework' means 
        the documents agreed to between the United States and the 
        Democratic People's Republic of Korea on October 21, 1994, 
        regarding elimination of the nuclear weapons program of the 
        Democratic People's Republic of Korea and the provision of 
        certain assistance to that country.
            ``(2) Independent states of the former soviet union.--The 
        term `independent states of the former Soviet Union' has the 
        meaning given such term in section 3 of the Freedom for Russia 
        and Emerging Eurasian Democracies and Open Markets Support Act 
        of 1992 (22 U.S.C. 5801).

``SEC. 586. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated $110,000,000 for fiscal year 1998 and $111,000,000 for 
fiscal year 1999, in addition to amounts otherwise available for such 
purposes, to carry out the purpose of this chapter. -
    ``(b) Administrative Authorities.--Any agency of the United States 
Government may utilize such funds in accordance with authority granted 
under this Act or under authority governing the activities of that 
agency.
    ``(c) Designation of Account.--Appropriations pursuant to 
subsection (a) may be referred to as the `Nonproliferation, 
Antiterrorism, Demining and Related Programs Account' or `NADR 
Account'.''.
    (b) Reference in Other Provisions of Law.--A reference in any other 
provision of law to section 504 of the Freedom for Russia and Emerging 
Eurasian Democracies and Open Markets Support Act of 1992 (22 U.S.C. 
5854) shall be deemed to include a reference to chapter 9 of part II of 
the Foreign Assistance Act of 1961, as added by subsection (a).
    (c) Conforming Amendments.--(1) Section 504 of the Freedom for 
Russia and Emerging Eurasian Democracies and Open Markets Support Act 
of 1992 (22 U.S.C. 5854) is hereby repealed.
    (2) The table of contents of such Act is amended by striking the 
item relating to section 504.

             CHAPTER 3--FOREIGN MILITARY FINANCING PROGRAM

SEC. 421. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the President 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) $3,318,000,000 for fiscal year 1998; and
            (2) $3,274,250,000 for fiscal year 1999.

SEC. 422. ASSISTANCE FOR ISRAEL.

    (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1998 and 1999 for assistance under section 23 of the Arms Export 
Control Act (22 U.S.C. 2763; relating to the ``Foreign Military 
Financing Program''), 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 1998, not later 
                than 30 days after the date of the enactment of the 
                Foreign Operations, Export Financing, and Related 
                Programs Appropriations Act, 1998, or by October 31, 
                1997, whichever is later; and
                    (B) with respect to fiscal year 1999, not later 
                than 30 days after the date of the enactment of the 
                Foreign Operations, Export Financing, and Related 
                Programs Appropriations Act, 1999, or by October 31, 
                1998, 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.

SEC. 423. ASSISTANCE FOR EGYPT.

    (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1998 and 1999 for assistance under section 23 of the Arms Export 
Control Act (22 U.S.C. 2763; relating to the ``Foreign Military 
Financing Program'' account), 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. 424. AUTHORIZATION OF ASSISTANCE TO FACILITATE TRANSITION TO NATO 
              MEMBERSHIP UNDER NATO PARTICIPATION ACT OF 1994.

    (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1998 and 1999 for assistance under section 23 of the Arms Export 
Control Act (22 U.S.C. 2763; relating to the ``Foreign Military 
Financing Program''), not less than $50,900,000 for each such fiscal 
year shall be made available for the program established under section 
203(a) of the NATO Participation Act of 1994 (title II of Public Law 
103-447; 22 U.S.C. 1928 note).
    (b) Terms of Assistance.--The assistance provided under subsection 
(a) may be provided on a grant basis, and may also be made available 
for the subsidy cost, as defined in section 502(5) of the Federal 
Credit Reform Act of 1990, of direct loans to countries eligible for 
assistance under the program established under section 203(a) of the 
NATO Participation Act of 1994 (title II of Public Law 103-447; 22 
U.S.C. 1928 note).

SEC. 425. LOANS FOR GREECE AND TURKEY.

    Of the amounts made available for fiscal year 1998 under section 23 
of the Arms Export Control Act (22 U.S.C. 2763)--
            (1) not more than $12,850,000 shall be made available for 
        the subsidy cost, as defined in section 502(5) of the Federal 
        Credit Reform Act of 1990, of direct loans for Greece; and
            (2) not more than $33,150,000 shall be made available for 
        such subsidy cost of direct loans for Turkey.

SEC. 426. LIMITATIONS ON LOANS.

    Of the amounts made available for fiscal year 1999 under section 23 
of the Arms Export Control (22 U.S.C. 2763) for the subsidy cost, as 
defined in section 502(5) of the Federal Credit Reform Act of 1990, of 
direct loans, no such amounts shall be made available to any country 
which has an Inter-Agency Country Risk Assessment Systems (ICRAS) 
rating of less than grade C-.

SEC. 427. ADMINISTRATIVE EXPENSES.

    Of the amounts made available for fiscal years 1998 and 1999 for 
assistance under section 23 of the Arms Export Control Act (22 U.S.C. 
2763; relating to the ``Foreign Military Financing Program''), not more 
than $23,250,000 for each of the fiscal years 1998 and 1999 may be made 
available for necessary expenses for the general costs of 
administration of military assistance and sales, including expenses 
incurred in purchasing passenger motor vehicles for replacement for use 
outside the United States.

        CHAPTER 4--INTERNATIONAL MILITARY EDUCATION AND TRAINING

SEC. 431. AUTHORIZATION OF APPROPRIATIONS.

    Section 542 of the Foreign Assistance Act of 1961 (22 U.S.C. 2347a) 
is amended by striking ``$56,221,000 for the fiscal year 1986 and 
$56,221,000 for the fiscal year 1987'' and inserting ``$50,000,000 for 
each of the fiscal years 1998 and 1999''.

SEC. 432. IMET ELIGIBILITY FOR PANAMA AND HAITI.

    Notwithstanding section 660(c) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2420(c)), assistance under chapter 5 of part II of such 
Act (22 U.S.C. 2347) may be provided to Panama and Haiti for each of 
the fiscal years 1998 and 1999.

   CHAPTER 5--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES

SEC. 441. AUTHORITY TO TRANSFER NAVAL VESSELS.

    (a) Brazil.--The Secretary of the Navy is authorized to transfer to 
the Government of Brazil the ``HUNLEY'' class submarine tender HOLLAND 
(AS 32).
    (b) Chile.--The Secretary of the Navy is authorized to transfer to 
the Government of Chile the ``KAISER'' class oiler ISHERWOOD (T-AO 
191).
    (c) Egypt.--The Secretary of the Navy is authorized to transfer to 
the Government of Egypt the ``KNOX'' class frigates PAUL (FF 1080), 
MILLER (FF 1091), JESSE L. BROWN (FFT 1089), and MOINESTER (FFT 1097), 
and the ``OLIVER HAZARD PERRY'' class frigates FAHRION (FFG 22) and 
LEWIS B. PULLER (FFG 23).
    (d) Israel.--The Secretary of the Navy is authorized to transfer to 
the Government of Israel the ``NEWPORT'' class tank landing ship PEORIA 
(LST 1183).
    (e) Malaysia.--The Secretary of the Navy is authorized to transfer 
to the Government of Malaysia the ``NEWPORT'' class tank landing ship 
BARBOUR COUNTY (LST 1195).
    (f) Mexico.--The Secretary of the Navy is authorized to transfer to 
the Government of Mexico the ``KNOX'' class frigate ROARK (FF 1053).
    (g) Taiwan.--The Secretary of the Navy is authorized to transfer to 
the Taipei Economic and Cultural Representative Office in the United 
States (which is the Taiwan instrumentality designated pursuant to 
section 10(a) of the Taiwan Relations Act) the ``KNOX'' class frigates 
WHIPPLE (FF 1062) and DOWNES (FF 1070).
    (h) Thailand.--The Secretary of the Navy is authorized to transfer 
to the Government of Thailand the ``NEWPORT'' class tank landing ship 
SCHENECTADY (LST 1185).
    (i) Form of transfers.--Each transfer authorized by this section 
shall be on a sales basis under section 21 of the Arms Export Control 
Act (22 U.S.C. 2761; relating to the foreign military sales program).

SEC. 442. COSTS OF TRANSFERS.

    Any expense of the United States in connection with a transfer 
authorized by this chapter shall be charged to the recipient.

SEC. 443. EXPIRATION OF AUTHORITY.

    The authority granted by section 451 shall expire at the end of the 
2-year period beginning on the date of the enactment of this Act.

SEC. 444. REPAIR AND REFURBISHMENT OF VESSELS IN UNITED STATES 
              SHIPYARDS.

    The Secretary of the Navy shall require, to the maximum extent 
possible, as a condition of a transfer of a vessel under this chapter, 
that the country to which the vessel is transferred have such repair or 
refurbishment of the vessel as is needed, before the vessel joins the 
naval forces of that country, performed at a shipyard located in the 
United States, including a United States Navy shipyard.

      CHAPTER 6--INDONESIA MILITARY ASSISTANCE ACCOUNTABILITY ACT

SEC. 451. SHORT TITLE.

    This chapter may be cited as the ``Indonesia Military Assistance 
Accountability Act''.

SEC. 452. FINDINGS.

    The Congress finds the following:
            (1)(A) Despite a surface adherence to democratic forms, the 
        Indonesian political system remains strongly authoritarian.
            (B) The government is dominated by an elite comprising 
        President Soeharto (now in his sixth 5-year term), his close 
        associates, and the military.
            (C) The government requires allegiance to a state ideology 
        known as ``Pancasila'', which stresses consultation and 
        consensus, but is also used to limit dissent, to enforce social 
        and political cohesion, and to restrict the development of 
        opposition elements.
            (2) The Government of Indonesia recognizes only one 
        official trade union, has refused to register independent trade 
        unions such as the Indonesian Prosperity Trade Union (SBSI), 
        has arrested Muchtar Pakpahan, the General Chairman of the 
        SBSI, on charges of subversion, and other labor activists, and 
        has closed the offices and confiscated materials of the SBSI.
            (3) Civil society organizations in Indonesia, such as 
        environmental organizations, election-monitoring organizations, 
        legal aid organizations, student organizations, trade union 
        organizations, and community organizations, have been harassed 
        by the Government of Indonesia through such means as 
        detentions, interrogations, denial of permission for meetings, 
        banning of publications, repeated orders to report to security 
        forces or judicial courts, and illegal seizure of documents.
            (4)(A) The armed forces of Indonesia continue to carry out 
        torture and other severe violations of human rights in East 
        Timor, Irian Jaya, and other parts of Indonesia, to detain and 
        imprison East Timorese and others for nonviolent expression of 
        political views, and to maintain unjustifiably high troop 
        levels in East Timor.
            (B) Indonesian civil authorities must improve their human 
        rights performance in East Timor, Irian Jaya, and elsewhere in 
        Indonesia, and aggressively prosecute violations.
            (5) The Nobel Prize Committee awarded the 1996 Nobel Peace 
        Prize to Bishop Carlos Felipe Ximenes Belo and Jose Ramos Horta 
        for their tireless efforts to find a just and peaceful solution 
        to the conflict in East Timor.
            (6) In 1992, the Congress suspended the international 
        military and education training (IMET) program for Indonesia in 
        response to a November 12, 1991, shooting incident in East 
        Timor by Indonesian security forces against peaceful Timorese 
        demonstrators in which no progress has been made in accounting 
        for the missing persons either in that incident or others who 
        disappeared in 1995-96.
            (7) On August 1, 1996, then Secretary of State Warren 
        Christopher stated in testimony before the Committee on Foreign 
        Relations of the Senate, ``I think there's a strong interest in 
        seeing an orderly transition of power there [in Indonesia] that 
        will recognize the pluralism that should exist in a country of 
        that magnitude and importance.''.
            (8) The United States has important economic, commercial, 
        and security interests in Indonesia because of its growing 
        economy and markets and its strategic location astride a number 
        of key international straits which will only be strengthened by 
        democratic development in Indonesia and a policy which promotes 
        political pluralism and respect for universal human rights.

 SEC. 453. LIMITATION ON MILITARY ASSISTANCE TO THE GOVERNMENT OF 
              INDONESIA.

    (a) In General.--The United States shall not provide military 
assistance and arms transfers programs for a fiscal year to the 
Government of Indonesia unless the President determines and certifies 
to the Congress for that fiscal year that the Government of Indonesia 
meets the following requirements:
            (1) Domestic monitoring of elections.--(A) The Government 
        of Indonesia provides official accreditation to independent 
        election-monitoring organizations, including the Independent 
        Election Monitoring Committee (KIPP), to observe national 
        elections without interference by personnel of the Government 
        or of the armed forces.
            (B) In addition, such organizations are allowed to assess 
        such elections and to publicize or otherwise disseminate the 
        assessments throughout Indonesia.
            (2) Protection of nongovernmental organizations.--The 
        police or military of Indonesia do not confiscate materials 
        from or otherwise engage in illegal raids on the offices or 
        homes of members of both domestic or international 
        nongovernmental organizations, including election-monitoring 
        organizations, legal aid organizations, student organizations, 
        trade union organizations, community organizations, 
        environmental organizations, and religious organizations.
            (3) Accountability for attack on pdi headquarters.--As 
        recommended by the Government of Indonesia's National Human 
        Rights Commission, the Government of Indonesia has investigated 
        the attack on the headquarters of the Democratic Party of 
        Indonesia (PDI) on July 27, 1996, prosecuted individuals who 
        planned and carried out the attack, and made public the 
        postmortem examination of the five individuals killed in the 
        attack.
            (4) Resolution of conflict in east timor.--
                    (A) Establishment of dialogue.--The Government of 
                Indonesia is doing everything possible to enter into a 
                process of dialogue, under the auspices of the United 
                Nations, with Portugal and East Timorese leaders of 
                various viewpoints to discuss ideas toward a resolution 
                of the conflict in East Timor and the political status 
                of East Timor.
                    (B) Reduction of troops.--The Government of 
                Indonesia has established and implemented a plan to 
                reduce the number of Indonesian troops in East Timor.
                    (C) Release of political prisoners.--Individuals 
                detained or imprisoned for the non-violent expression 
                of political views in East Timor have been released 
                from custody.
            (5) Improvement in labor rights.--The Government of 
        Indonesia has taken the following actions to improve labor 
        rights in Indonesia:
                    (A) The Government has dropped charges of 
                subversion, and previous charges against the General 
                Chairman of the SBSI trade union, Muchtar Pakpahan, and 
                released him from custody.
                    (B) The Government has substantially reduced the 
                requirements for legal recognition of the SBSI or other 
                legitimate worker organizations as a trade union.
    (b) Waivers.--
            (1) In general.--The limitation on United States military 
        assistance and arms transfers under subsection (a) shall not 
        apply if the President determines and notifies the Congress 
        that--
                    (A) an emergency exists that requires providing 
                such assistance or arms transfers for the Government of 
                Indonesia; or
                    (B) subject to paragraph (2), it is in the national 
                interest of the United States to provide such 
                assistance or arms transfers for the Government of 
                Indonesia.
            (2) Applicability.--A determination under paragraph (1)(B) 
        shall not become effective until 15 days after the date on 
        which the President notifies the Congress in accordance with 
        such paragraph.
    (c) Effective Date.--The limitation on United States military 
assistance and arms transfers under subsection (a) shall apply only 
with respect to assistance provided for, and arms transfers made 
pursuant to agreements entered into, fiscal years beginning after the 
date of enactment of this Act.

 SEC. 454. UNITED STATES MILITARY ASSISTANCE AND ARMS TRANSFERS 
              DEFINED.

    As used in this chapter, the term ``military assistance and arms 
transfers'' means--
            (1) small arms, crowd control equipment, armored personnel 
        carriers, and such other items that can commonly be used in the 
        direct violation of human rights; and
            (2) assistance under chapter 5 of part II of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2347 et seq.; relating to 
        international military education and training or ``IMET''), 
        except such term shall not include Expanded IMET, pursuant to 
        section 541 of such Act.

                      CHAPTER 7--OTHER PROVISIONS

SEC. 461. EXCESS DEFENSE ARTICLES FOR CERTAIN EUROPEAN COUNTRIES.

    Section 105 of Public Law 104-164 (110 Stat. 1427) is amended by 
striking ``1996 and 1997'' and inserting ``1998 and 1999''.

SEC. 462. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS DEFENSE ARTICLES IN 
              THE WAR RESERVE ALLIES STOCKPILE TO THE REPUBLIC OF 
              KOREA.

    (a) Authority.--
            (1) In general.--Notwithstanding section 514 of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2321h), the President is 
        authorized to transfer to the Republic of Korea, in return for 
        concessions to be negotiated by the Secretary of Defense, with 
        the concurrence of the Secretary of State, any or all of the 
        items described in paragraph (2).
            (2) Items described.--The items described in this paragraph 
        are equipment, tanks, weapons, repair parts, and ammunition 
        that--
                    (A) are obsolete or surplus items;
                    (B) are in the inventory of the Department of 
                Defense;
                    (C) are intended for use as reserve stocks for the 
                Republic of Korea; and
                    (D) as of the date of enactment of this Act, are 
                located in a stockpile in the Republic of Korea.
    (b) Concessions.--The value of the concessions negotiated pursuant 
to subsection (a) shall be at least equal to the fair market value of 
the items transferred. The concessions may include cash compensation, 
services, waiver of charges otherwise payable by the United States, and 
other items of value.
    (c) Advance Notification of Transfer.--Not less than 30 days before 
making a transfer under the authority of this section, the President 
shall transmit to the Committee on Foreign Relations of the Senate, the 
Committee on International Relations of the House of Representatives, 
and the congressional defense committees a notification of the proposed 
transfer. The notification shall identify the items to be transferred 
and the concessions to be received.
    (d) Expiration of Authority.--No transfer may be made under the 
authority of this section more than two years after the date of the 
enactment of this Act.

SEC. 463. ADDITIONAL REQUIREMENTS RELATING TO STOCKPILING OF DEFENSE 
              ARTICLES FOR FOREIGN COUNTRIES.

    (a) Value of Additions to Stockpiles.--Section 514(b)(2)(A) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321h(b)(2)(A)) is amended by 
inserting before the period at the end the following: ``and $60,000,000 
for fiscal year 1998''.
    (b) Requirements Relating to the Republic of Korea and Thailand.--
Section 514(b)(2)(B) of such Act (22 U.S.C 2321h(b)(2)(B)) is amended 
by adding at the end the following: ``Of the amount specified in 
subparagraph (A) for fiscal year 1998, not more than $40,000,000 may be 
made available for stockpiles in the Republic of Korea and not more 
than $20,000,000 may be made available for stockpiles in Thailand.''.

SEC. 464. DELIVERY OF DRAWDOWN BY COMMERCIAL TRANSPORTATION SERVICES.

    Section 506 of the Foreign Assistance Act of 1961 (22 U.S.C.2318) 
is amended--
            (1) in subsection (b)(2), by striking the period and 
        inserting the following: ``, including providing the Congress 
        with a report detailing all defense articles, defense services, 
        and military education and training delivered to the recipient 
        country or international organization upon delivery of such 
        articles or upon completion of such services or education and 
        training. Such report shall also include whether any savings 
        were realized by utilizing commercial transport services rather 
        than acquiring those services from United States Government 
        transport assets.'';
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following:
    ``(c) For the purposes of any provision of law that authorizes the 
drawdown of defense or other articles or commodities, or defense or 
other services from an agency of the United States Government, such 
drawdown may include the supply of commercial transportation and 
related services that are acquired by contract for the purposes of the 
drawdown in question if the cost to acquire such commercial 
transportation and related services is less than the cost to the United 
States Government of providing such services from existing agency 
assets.''.

SEC. 465. CASH FLOW FINANCING NOTIFICATION.

    Section 25 of the Arms Export Control Act (22 U.S.C. 2765) is 
amended--
            (1) in the second subsection (d)--
                    (A) by striking ``(d)'' and inserting ``(e)''; and
                    (B) by striking the semicolon at the end and 
                inserting a period; and
            (2) by adding at the end the following:
    ``(f) For each country that has been approved for cash flow 
financing (as defined in subsection (e)) under section 23 of this Act 
(relating to the `Foreign Military Financing Program'), any letter of 
offer and acceptance or other purchase agreement, or any amendment 
thereto, for a procurement in excess of $100,000,000 that is to be 
financed in whole or in part with funds made available under this Act 
shall be submitted in accordance with the procedures applicable to 
reprogramming notifications pursuant to section 634A of this Act and 
through the regular notification procedures of the Committee on 
Appropriations.''.

SEC. 466. MULTINATIONAL ARMS SALES CODE OF CONDUCT.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the President shall convene negotiations with 
all Wassenaar Arrangement countries for the purpose of establishing a 
multinational arms sales code of conduct.
    (b) Conduct of Negotiations.--Such negotiations shall achieve 
agreement on restricting or prohibiting arms transfers to countries 
that--
            (1) do not respect democratic processes and the rule of 
        law;
            (2) do not adhere to internationally-recognized norms on 
        human rights; or
            (3) are engaged in acts of armed aggression.
    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the President shall prepare and transmit to the Committee 
on International Relations of the House of Representative and the 
Committee on Foreign Relations of the Senate a report on--
            (1) efforts to establish a multinational arms sales code of 
        conduct;
            (2) progress toward establishing such code of conduct; and
            (3) any obstacles that impede the establishment of such 
        code of conduct.

                      TITLE V--ECONOMIC ASSISTANCE

                 CHAPTER 1--ECONOMIC SUPPORT ASSISTANCE

SEC. 501. ECONOMIC SUPPORT FUND.

    Section 532(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2346a(a)) is amended to read as follows:
    ``(a) There are authorized to be appropriated to the President to 
carry out the purposes of this chapter $2,388,350,000 for fiscal year 
1998 and $2,350,600,000 for fiscal year 1999.''.

SEC. 502. ASSISTANCE FOR ISRAEL.

    (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1998 and 1999 for assistance under chapter 4 of part II of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2346; relating to the 
economic support fund), not less than $1,200,000,000 for each such 
fiscal year shall be available only for Israel.
    (b) Terms of Assistance.--
            (1) Cash transfer.--The total amount of funds allocated for 
        Israel for each fiscal year under subsection (a) shall be made 
        available on a grant basis as a cash transfer.
            (2) Expedited disbursement.--Such funds shall be 
        disbursed--
                    (A) with respect to fiscal year 1998, not later 
                than 30 days after the date of the enactment of the 
                Foreign Operations, Export Financing, and Related 
                Programs Appropriations Act, 1998, or by October 31, 
                1997, whichever is later; and
                    (B) with respect to fiscal year 1999, not later 
                than 30 days after the date of the enactment of the 
                Foreign Operations, Export Financing, and Related 
                Programs Appropriations Act, 1999, or by October 31, 
                1998, whichever is later.
            (3) Additional requirement.--In exercising the authority of 
        this subsection, the President shall ensure that the amount of 
        funds provided as a cash transfer to Israel does not cause an 
        adverse impact on the total level of nonmilitary exports from 
        the United States to Israel.

SEC. 503. ASSISTANCE FOR EGYPT.

    (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1998 and 1999 for assistance under chapter 4 of part II of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2346; relating to the 
economic support fund), not less than $815,000,000 for each such fiscal 
year shall be available only for Egypt.
    (b) Additional Requirement.--In exercising the authority of this 
section, the President shall ensure that the amount of funds provided 
as a cash transfer to Egypt does not cause an adverse impact on the 
total level of nonmilitary exports from the United States to Egypt.
    (c) Declaration of policy.--The Congress declares the following:
            (1) Assistance to Egypt is based in great measure upon 
        Egypt's continued implementation of the Camp David accords and 
        the Egyptian-Israeli peace treaty.
            (2) Fulfillment by Egypt of its obligations under the 
        agreements described in paragraph (1) has been disappointing, 
        particularly the failure by Egypt to meet fully its commitment 
        made at Camp David to establish with Israel ``relationships 
        normal to states at peace with one another'', and in its recent 
        support for reimposing the Arab economic boycott of Israel.
            (3) Support for future funding levels of assistance for 
        Egypt will be determined largely on whether Egypt fulfills its 
        obligations to develop normal relations with Israel and to 
        promote peace with Israel and other critical United States 
        interests both in Egypt and the wider Arab world.

SEC. 504. INTERNATIONAL FUND FOR IRELAND.

    (a) Funding.--Of the amounts made available for fiscal years 1998 
and 1999 for assistance under chapter 4 of part II of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2346; relating to the economic 
support fund), not more than $19,600,000 for each of the fiscal years 
1998 and 1999 shall be available for the United States contribution to 
the International Fund for Ireland in accordance with the Anglo-Irish 
Agreement Support Act of 1986 (Public Law 99-415).
    (b) Additional Requirements.--
            (1) Purposes.--Section 2(b) of the Anglo-Irish Agreement 
        Support Act of 1986 (Public Law 99-415; 100 Stat. 947) is 
        amended by adding at the end the following new sentences: 
        ``United States contributions shall be used in a manner that 
        effectively increases employment opportunities in communities 
        with rates of unemployment significantly higher than the local 
        or urban average of unemployment in Northern Ireland. In 
        addition, such contributions shall be used to benefit 
        individuals residing in such communities.''.
            (2) Conditions and understandings.--Section 5(a) of such 
        Act is amended--
                    (A) in the first sentence--
                            (i) by striking ``The United States'' and 
                        inserting the following:
            ``(1) In general.--The United States'';
                            (ii) by striking ``in this Act may be 
                        used'' and inserting the following: ``in this 
                        Act--
                    ``(A) may be used'';
                            (iii) by striking the period and inserting 
                        ``; and''; and
                            (iv) by adding at the end the following:
                    ``(B) may be provided to an individual or entity in 
                Northern Ireland only if such individual or entity is 
                in compliance with the principles of economic 
                justice.''; and
                    (B) in the second sentence, by striking ``The 
                restrictions'' and inserting the following:
            ``(2) Additional requirements.--The restrictions''.
            (3) Prior certifications.--Section 5(c)(2) of such Act is 
        amended--
                    (A) in subparagraph (A), by striking ``principle of 
                equality'' and all that follows and inserting 
                ``principles of economic justice; and''; and
                    (B) in subparagraph (B), by inserting before the 
                period at the end the following: ``and will create 
                employment opportunities in regions and communities of 
                Northern Ireland suffering the highest rates of 
                unemployment''.
            (4) Annual reports.--Section 6 of such Act is amended--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) each individual or entity receiving assistance from 
        United States contributions to the International Fund has 
        agreed in writing to comply with the principles of economic 
        justice.''.
            (5) Requirements relating to funds.--Section 7 of such Act 
        is amended by adding at the end the following:
    ``(c) Prohibition.--Nothing included herein shall require quotas or 
reverse discrimination or mandate their use.''.
            (6) Definitions.--Section 8 of such Act is amended--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(3) the term `Northern Ireland' includes the counties of 
        Antrim, Armagh, Derry, Down, Tyrone, and Fermanagh; and
            ``(4) the term `principles of economic justice' means the 
        following principles:
                    ``(A) Increasing the representation of individuals 
                from underrepresented religious groups in the 
                workforce, including managerial, supervisory, 
                administrative, clerical, and technical jobs.
                    ``(B) Providing adequate security for the 
                protection of minority employees at the workplace.
                    ``(C) Banning provocative sectarian or political 
                emblems from the workplace.
                    ``(D) Providing that all job openings be advertised 
                publicly and providing that special recruitment efforts 
                be made to attract applicants from underrepresented 
                religious groups.
                    ``(E) Providing that layoff, recall, and 
                termination procedures do not favor a particular 
                religious group.
                    ``(F) Abolishing job reservations, apprenticeship 
                restrictions, and differential employment criteria 
                which discriminate on the basis of religion.
                    ``(G) Providing for the development of training 
                programs that will prepare substantial numbers of 
                minority employees for skilled jobs, including the 
                expansion of existing programs and the creation of new 
                programs to train, upgrade, and improve the skills of 
                minority employees.
                    ``(H) Establishing procedures to assess, identify, 
                and actively recruit minority employees with the 
                potential for further advancement.
                    ``(I) Providing for the appointment of a senior 
                management staff member to be responsible for the 
                employment efforts of the entity and, within a 
                reasonable period of time, the implementation of the 
                principles described in subparagraphs (A) through 
                (H).''.
            (7) Effective date.--The amendments made by this subsection 
        shall take effect 180 days after the date of the enactment of 
        this Act.

SEC. 505. ASSISTANCE FOR TRAINING OF CIVILIAN PERSONNEL OF THE MINISTRY 
              OF DEFENSE OF THE GOVERNMENT OF NICARAGUA.

    Notwithstanding section 531(e) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2346(e)), amounts made available for fiscal years 1998 
and 1999 for assistance under chapter 4 of part II of such Act (22 
U.S.C. 2346; relating to the economic support fund) may be made 
available for assistance and training for civilian personnel of the 
Ministry of Defense of the Government of Nicaragua if, prior to the 
provision of such assistance, the Secretary of State determines and 
reports to the Congress that such assistance is necessary to 
establishing a civilian Ministry of Defense capable of effective 
oversight and management of the Nicaraguan armed forces and ensuring 
respect for civilian authority and human rights.

SEC. 506. AVAILABILITY OF AMOUNTS FOR CUBAN LIBERTY AND DEMOCRATIC 
              SOLIDARITY (LIBERTAD) ACT OF 1996 AND THE CUBAN DEMOCRACY 
              ACT OF 1992.

    Of the amounts made available for fiscal years 1998 and 1999 for 
assistance under chapter 4 of part II of the Foreign Assistance Act of 
1961 (22 U.S.C. 2346; relating to the economic support fund), not less 
than $2,000,000 for each such fiscal year shall be made available to 
carry out the programs and activities under the Cuban Liberty and 
Democratic Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6021 et seq.) 
and the Cuban Democracy Act of 1992 (22 U.S.C. 6001 et seq.).

                   CHAPTER 2--DEVELOPMENT ASSISTANCE

            Subchapter A--Development Assistance Authorities

SEC. 511. AUTHORIZATION OF APPROPRIATIONS.

    (a) Development Assistance Fund.--The Foreign Assistance Act of 
1961 (22 U.S.C. 2151 et seq.) is amended by inserting after section 106 
and before section 107A, as added by this Act, the following:

``SEC. 107. DEVELOPMENT ASSISTANCE FUND.

    ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated to the President to carry out sections 103 through 106, in 
addition to amounts otherwise available for such purposes, 
$1,203,000,000 for each of the fiscal years 1998 and 1999.
    ``(b) Additional Use of Amounts.--Of the amounts authorized to be 
appropriated under subsection (a)--
            ``(1) the President may use such amounts as he deems 
        appropriate to carry out the provisions of section 316 of the 
        International Security and Development Cooperation Act of 1980;
            ``(2) $2,500,000 for fiscal year 1998 and $4,000,000 for 
        fiscal year 1999 may be made available to carry out section 510 
        of the International Security and Development Cooperation Act 
        of 1980 (relating to the African Development Foundation) (such 
        amounts are in addition to amounts otherwise made available to 
        carry out section 510 of such Act); and
            ``(3) $2,000,000 for fiscal year 1998 and $7,000,000 for 
        fiscal year 1999 may be made available to carry out section 401 
        of the Foreign Assistance Act of 1969 (relating to the Inter-
        American Foundation) (such amounts are in addition to amounts 
        otherwise made available to carry out section 401 of such Act).
    ``(c) Availability.--The amounts authorized to be appropriated 
under subsection (a) are authorized to remain available until 
expended.''.
    (b) Development Fund for Africa.--Section 497 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2294) is amended to read as follows:

``SEC. 497. AVAILABILITY OF AMOUNTS.

    ``(a) In General.--Of the amounts made available to carry out 
sections 103 through 106 (including section 104(c)) for fiscal years 
1998 and 1999, not less than $700,000,000 for each of the fiscal years 
1998 and 1999 shall be made available to carry out this chapter (in 
addition to amounts otherwise available for such purposes).
    ``(b) Availability.--Amounts made available under subsection (a) 
are authorized to remain available until expended.''.
    (c) Assistance for the Independent States of the Former Soviet 
Union.--Section 498C(a) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2295c(a)) is amended by striking ``for fiscal year 1993 
$410,000,000'' and inserting ``for economic assistance and related 
programs, $839,900,000 for fiscal year 1998 and $789,900,000 for fiscal 
year 1999''.
    (d) Assistance for East European Countries.--
            (1) In general.--There are authorized to be appropriated to 
        the President, in addition to amounts otherwise available for 
        such purposes, $471,000,000 for fiscal year 1998 and 
        $337,000,000 for fiscal year 1999 for economic assistance and 
        related programs for Eastern Europe and the Baltic states under 
        the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and 
        the Support for East European Democracy (SEED) Act of 1989 (22 
        U.S.C. 5401 et seq.).
            (2) Debt relief for bosnia and herzegovina.--
        Notwithstanding any other provision of law, of the amounts 
        authorized to be appropriated for fiscal years 1998 and 1999 
        under paragraph (1), not more than $5,000,000 may be made 
        available for the cost, as defined in section 502 of the 
        Federal Credit Reform Act of 1990, of modifying direct loans 
        and loan guarantees for Bosnia and Herzegovina.
            (3) Availability.--Amounts authorized to be appropriated 
        under paragraph (1) are authorized to remain available until 
        expended.
    (e) Inter-American Foundation.--Section 401(s)(2) of the Foreign 
Assistance Act of 1969 (22 U.S.C. 290f(s)(2)) is amended to read as 
follows:
    ``(2)(A) There are authorized to be appropriated to the President 
to carry out programs under this section, in addition to amounts 
otherwise available for such purposes, $20,000,000 for fiscal year 1998 
and $15,000,000 for fiscal year 1999.
    ``(B) Amounts authorized to be appropriated under subparagraph (A) 
are authorized to remain available until expended.''.
    (f) African Development Foundation.--The first sentence of section 
510 of the International Security and Development Cooperation Act of 
1980 (22 U.S.C. 290h-8) is amended by striking ``$3,872,000 for fiscal 
year 1986 and $3,872,000 for fiscal year 1987'' and inserting 
``$11,500,000 for fiscal year 1998 and $10,000,000 for fiscal year 
1999.''.

SEC. 512. CHILD SURVIVAL ACTIVITIES.

    Section 104(c) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151b(c)) is amended to read as follows:
    ``(c) Assistance for Child Survival, Health, Basic Education for 
Children, and Disease Prevention.--
            ``(1) Authority.--The President is authorized to furnish 
        assistance, on such terms and conditions as he may determine, 
        for child survival and health programs, including programs that 
        address the special health and nutrition needs of children and 
        mothers, and basic education programs for children. Assistance 
        under this subsection may be used for the following:
                    ``(A) Activities whose primary purpose is to reduce 
                child morbidity and child mortality and which have a 
                substantial, direct, and measurable impact on child 
                morbidity and child mortality, such as--
                            ``(i) immunization;
                            ``(ii) oral rehydration;
                            ``(iii) activities relating to Vitamin A 
                        deficiency, iodine deficiency, and other 
                        micronutrients;
                            ``(iv) programs designed to reduce child 
                        malnutrition;
                            ``(v) programs to prevent and treat acute 
                        respiratory infections;
                            ``(vi) programs for the prevention, 
                        treatment, and control of, and research on, 
                        polio, malaria and other diseases primarily 
                        affecting children; and
                            ``(vii) programs whose primary purpose is 
                        to prevent neonatal mortality.
                    ``(B) Other child survival activities such as--
                            ``(i) basic integrated health services;
                            ``(ii) assistance for displaced and 
                        orphaned children;
                            ``(iii) safe water and sanitation;
                            ``(iv) health programs, and related 
                        education programs, which primarily address the 
                        needs of mothers and children; and
                            ``(v) related health planning and research.
                    ``(C) Basic education programs for mothers and 
                children.
                    ``(D) Other disease activities such as programs for 
                the prevention, treatment and control of, and research 
                on, tuberculosis, HIV/AIDS, and other diseases.
            ``(2) Priority.--Child survival activities administered by 
        the United States Agency for International Development under 
        this subsection shall be primarily devoted to activities of the 
        type described in paragraph (1)(A).
            ``(3) Application of other authorities.--Funds made 
        available to carry out this subsection that are provided for 
        countries receiving assistance under chapters 10 and 11 of part 
        I of this Act or the Support for East European Democracy (SEED) 
        Act of 1989, may be made available--
                    ``(A) only for the activities described in of 
                paragraph (1); and
                    ``(B) except to the extent inconsistent with 
                subparagraph (A), pursuant to the authorities otherwise 
                applicable to the provision of assistance for such 
                countries.
            ``(4) International organizations.--Funds made available to 
        carry out this subsection may be used to make contributions on 
        a grant basis to the United Nations Children's Fund (UNICEF) 
        pursuant to section 301 of this Act.
            ``(5) PVO/child survival grants program.--Of amounts made 
        available to carry out this subsection for a fiscal year, not 
        less than $30,000,000 should be provided to the private and 
        voluntary organizations under the PVO/Child Survival grants 
        program carried out by the United States Agency for 
        International Development.
            ``(6) Report.--The Administrator of the United States 
        Agency for International Development shall report to Congress, 
        as part of the congressional presentation document required 
        under section 634 of this Act, the total amounts to be provided 
        for activities under each subparagraph of paragraph (1).
            ``(7) Authorization of appropriations.--(A) In addition to 
        amounts otherwise available for such purposes, and in addition 
        to amounts made available under section 107, there are 
        authorized to be appropriated to the President $600,000,000 for 
        each of the fiscal years 1998 and 1999 for use in carrying out 
        this subsection.
            ``(B) Amounts appropriated under this paragraph are 
        authorized to remain available until expended.
            ``(8) Designation of fund.--Appropriations pursuant to this 
        subsection may be referred to as the `Child Survival and 
        Disease Programs Fund'.''.

SEC. 513. REQUIREMENT ON ASSISTANCE TO THE RUSSIAN FEDERATION.

    (a) In General.--Of the amounts made available to carry out chapter 
11 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2295 et 
seq.) for fiscal years 1998 and 1999, not more than $95,000,000 for 
each such fiscal year may be provided to the Russian Federation unless 
the President determines and reports to the Congress for each such 
fiscal year that--
            (1) the Government of the Russian Federation has terminated 
        all official cooperation with, and transfers of goods and 
        technology to, ballistic missile or nuclear programs in Iran, 
        and has taken all appropriate steps to prevent cooperation 
        with, and transfers of goods and technology to, such programs 
        in Iran by persons and entities subject to its jurisdiction; 
        and
            (2) the Government of the Russian Federation has terminated 
        all official cooperation with, and transfers of goods and 
        technology to, nuclear reactor projects in Cuba, and has taken 
        all appropriate steps to prevent cooperation with, and 
        transfers of goods and technology to, such projects in Cuba by 
        persons and entities subject to its jurisdiction.
    (b) Additional Limitation.--
            (1) In general.--Notwithstanding subsection (a), none of 
        the funds made available to carry out chapter 11 of part I of 
        the Foreign Assistance Act of 1961 (22 U.S.C. 2295 et seq.) for 
        fiscal years 1998 and 1999 may be made available for the 
        Russian Federation if the Russian Federation, on or after the 
        date of the enactment of this Act, transfers an SS-N-22 missile 
        system to the People's Republic of China.
            (2) Exception.--Paragraph (1) shall not apply if the 
        President determines that making such funds available is 
        important to the national security interest of the United 
        States. Any such determination shall cease to be effective 6 
        months after being made unless the President determines that 
        its continuation is important to the national security interest 
        of the United States.

SEC. 514. HUMANITARIAN ASSISTANCE FOR ARMENIA AND AZERBAIJAN.

    (a) Sense of the Congress.--It is the sense of the Congress that 
the President should seek cooperation from the governments of Armenia 
and Azerbaijan to ensure that humanitarian assistance, including 
assistance delivered through nongovernmental organizations and private 
and voluntary organizations, shall be available to all needy citizens 
within Armenia and Azerbaijan, including those individuals in the 
region of Nagorno-Karabakh.
    (b) Report.--The President shall prepare and transmit a report to 
the Congress on humanitarian needs throughout Armenia and Azerbaijan 
and the provision of assistance to meet such needs by United States and 
other donor organizations and states.

SEC. 515. AGRICULTURAL DEVELOPMENT AND RESEARCH ASSISTANCE.

    (a) Findings.--The Congress finds that the proportion of United 
States development assistance devoted to agricultural development and 
research has declined sharply from 17 percent in 1990 to 8 percent in 
1996.
    (b) Sense of the Congress.--It is the sense of the Congress that--
            (1) United States investment in international agricultural 
        development and research has been a critical part of many 
        economic development successes;
            (2) agricultural development and research advance food 
        security, thereby reducing poverty, increasing political 
        stability, and promoting United States exports; and
            (3) the United States Agency for International Development 
        should increase the emphasis it places on agricultural 
        development and research and expand the role of agricultural 
        development and research in poverty relief, child survival, and 
        environmental programs.

SEC. 516. ACTIVITIES AND PROGRAMS IN LATIN AMERICA AND THE CARIBBEAN 
              REGION AND THE ASIA AND THE PACIFIC REGION.

    Of the amounts made available for fiscal years 1998 and 1999 for 
assistance under sections 103 through 106 of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2151a through 2151d), including assistance under 
section 104(c) of such Act (22 U.S.C. 2151b(c)), the amount made 
available for activities and programs in Latin America and the 
Caribbean region and the Asia and the Pacific region should be in at 
least the same proportion to the total amount of such assistance made 
available as the amount identified in the congressional presentation 
documents for development assistance for each of the fiscal years 1998 
and 1999, respectively, for each such region is to the total amount 
requested for development assistance for each such fiscal year.

SEC. 517. SUPPORT FOR AGRICULTURAL DEVELOPMENT ASSISTANCE.

    (a) In General.--For each of the fiscal years 1998 and 1999 the 
President should allocate an aggregate level to programs under section 
103 of the Foreign Assistance Act of 1961 (22 U.S.C. 2151a; relating to 
agriculture, rural development, and nutrition) in amounts equal to the 
level provided to such programs in fiscal year 1997.
    (b) Increasing Levels.--If appropriations for programs under 
chapter 1 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151 et seq.; relating to development assistance) increase in fiscal 
year 1998 or 1999 above levels provided in fiscal year 1997, the 
President should allocate an increasing level for programs under 
section 103 of such Act (22 U.S.C. 2151a; relating to agriculture, 
rural development, and nutrition).

                    Subchapter B--Operating Expenses

SEC. 521. OPERATING EXPENSES GENERALLY.

    Section 667(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2427(a)(1)) is amended to read as follows:
            ``(1) $473,000,000 for fiscal year 1998 and $465,000,000 
        for fiscal year 1999 for necessary operating expenses of the 
        United States Agency for International Development (other than 
        the Office of the Inspector General of such agency);''.

SEC. 522. OPERATING EXPENSES OF THE OFFICE OF THE INSPECTOR GENERAL.

    Section 667(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2427(a)), as amended by this Act, is further amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following:
            ``(2) $29,047,000 for each of the fiscal years 1998 and 
        1999 for necessary operating expenses of the Office of the 
        Inspector General of such agency; and''.

           CHAPTER 3--URBAN AND ENVIRONMENTAL CREDIT PROGRAM

SEC. 531. URBAN AND ENVIRONMENTAL CREDIT PROGRAM.

     (a) In General.--The heading for title III of chapter 2 of part I 
of the Foreign Assistance Act of 1961 is amended to read as follows:

         ``TITLE III--URBAN AND ENVIRONMENTAL CREDIT PROGRAM''.

    (b) Repeals.--(1) Section 222(k) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2182(k)) is hereby repealed.
    (2) Section 222A of such Act (22 U.S.C. 2182a) is hereby repealed.
    (3) Section 223(j) of such Act (22 U.S.C. 2183(j)) is hereby 
repealed.

                       CHAPTER 4--THE PEACE CORPS

SEC. 541. AUTHORIZATION OF APPROPRIATIONS.

    Section 3(b) of the Peace Corps Act (22 U.S.C. 2502(b)) is amended 
to read as follows:
    ``(b)(1) There are authorized to be appropriated to carry out the 
purposes of this Act $222,000,000 for fiscal year 1998 and $225,000,000 
for fiscal year 1999.
    ``(2) Amounts authorized to be appropriated under paragraph (1)--
            ``(A) with respect to fiscal year 1998 are authorized to 
        remain available until September 30, 1999; and
            ``(B) with respect to fiscal year 1999 are authorized to 
        remain available until September 30, 2000.''.

SEC. 542. ACTIVITIES OF THE PEACE CORPS IN THE FORMER SOVIET UNION AND 
              MONGOLIA.

    Of the amounts made available for fiscal years 1998 and 1999 to 
carry out chapter 11 of part I of the Foreign Assistance Act of 1961 
(22 U.S.C. 2295 et seq.; relating to assistance for the independent 
states of the former Soviet Union), not more than $11,000,000 for each 
such fiscal year shall be available for activities of the Peace Corps 
in the independent states of the former Soviet Union (as defined in 
section 3 of the Freedom for Russia and Emerging Eurasian Democracies 
and Open Markets Support Act of 1992) and Mongolia.

SEC. 543. AMENDMENTS TO THE PEACE CORPS ACT.

    (a) Terms and Conditions of Volunteer Service.--Section 5 of the 
Peace Corps Act (22 U.S.C. 2504) is amended--
            (1) in subsection (f)(1)(B), by striking ``Civil Service 
        Commission'' and inserting ``Office of Personnel Management'';
            (2) in subsection (h), by striking ``the Federal Voting 
        Assistance Act of 1955'' and all that follows through the end 
        of the subsection and inserting ``sections 5584 and 5732 of 
        title 5, United States Code (and readjustment allowances paid 
        under this Act shall be considered as pay for purposes of such 
        section 5732), section 1 of the Act of June 4, 1920 (22 U.S.C. 
        214), and section 3342 of title 31, United States Code.''; and
            (3) in subsection (j), by striking ``section 1757 of the 
        Revised Statutes'' and all that follows through the end of the 
        subsection and inserting ``section 3331 of title 5, United 
        States Code.''.
    (b) General Powers and Authorities.--Section 10 of such Act (22 
U.S.C. 2509) is amended--
            (1) in subsection (a)(4), by striking ``31 U.S.C. 665(b)'' 
        and inserting ``section 1342 of title 31, United States Code''; 
        and
            (2) in subsection (a)(5), by striking ``: Provided, That'' 
        and all that follows through the end of the paragraph and 
        inserting ``, except that such individuals shall not be deemed 
        employees for the purpose of any law administered by the Office 
        of Personnel Management.''.
    (c) Utilization of Funds.--Section 15 of such Act (22 U.S.C. 2514) 
is amended--
            (1) in the first sentence of subsection (c)--
                    (A) by striking ``Public Law 84-918 (7 U.S.C. 1881 
                et seq.)'' and inserting ``subchapter VI of chapter 33 
                of title 5, United States Code (5 U.S.C. 3371 et 
                seq.)''; and
                    (B) by striking ``specified in that Act'' and 
                inserting ``or other organizations specified in section 
                3372(b) of such title''; and
            (2) in subsection (d)--
                    (A) in paragraph (2), by striking ``section 9 of 
                Public Law 60-328 (31 U.S.C. 673)'' and inserting 
                ``section 1346 of title 31, United States Code'';
                    (B) in paragraph (6), by striking ``without regard 
                to section 3561 of the Revised Statutes (31 U.S.C. 
                543)'';
                    (C) in paragraph (11)--
                            (i) by striking ``Foreign Service Act of 
                        1946, as amended (22 U.S.C. 801 et seq.),'' and 
                        inserting ``Foreign Service Act of 1980 (22 
                        U.S.C. 3901 et seq.)''; and
                            (ii) by striking ``and'' at the end;
                    (D) in paragraph (12), by striking the period at 
                the end and by inserting ``; and''; and
                    (E) by adding at the end the following:
            ``(13) the transportation of Peace Corps employees, Peace 
        Corps volunteers, dependents of employees and volunteers, and 
        accompanying baggage, by a foreign air carrier when the 
        transportation is between 2 places outside the United States 
        without regard to section 40118 of title 49, United States 
        Code.''.
    (d) Prohibition on use of Funds for Abortions.--Section 15 of such 
Act (22 U.S.C. 2514) is amended, as amended by this Act, is further 
amended by adding at the end the following new subsection:
    ``(e) Funds made available for the purposes of this Act may not be 
used to pay for abortions.''.

              CHAPTER 5--INTERNATIONAL DISASTER ASSISTANCE

SEC. 551. AUTHORITY TO PROVIDE RECONSTRUCTION ASSISTANCE.

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

SEC. 552. AUTHORIZATIONS OF APPROPRIATIONS.

    Section 492(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2292a(a)) is amended in the first sentence to read as follows: ``There 
are authorized to be appropriated to the President to carry out section 
491, in addition to funds otherwise available for such purposes, 
$190,000,000 for each of the fiscal years 1998 and 1999.''.

                         CHAPTER 6--DEBT RELIEF

SEC. 561. DEBT RESTRUCTURING FOR FOREIGN ASSISTANCE.

    Chapter 6 of part I of the Foreign Assistance Act of 1961 (22 
U.S.C. 2271 et seq.) is amended to read as follows:

                        ``CHAPTER 6--DEBT RELIEF

``SEC. 461. SPECIAL DEBT RELIEF FOR POOR COUNTRIES.

    ``(a) Authority to Reduce Debt.--The President may reduce amounts 
owed to the United States Government by a country described in 
subsection (b) as a result of--
            ``(1) loans or guarantees issued under this Act; or
            ``(2) credits extended or guarantees issued under the Arms 
        Export Control Act (22 U.S.C. 2751 et seq.).
    ``(b) Country Described.--A country described in this subsection is 
a country--
            ``(1) with a heavy debt burden that is eligible to borrow 
        from the International Development Association but not from the 
        International Bank for Reconstruction and Development (commonly 
        referred to as an `IDA-only' country);
            ``(2) the government of which--
                    ``(A) does not have an excessive level of military 
                expenditures;
                    ``(B) has not repeatedly provided support for acts 
                of international terrorism; and
                    ``(C) is not failing to cooperate with the United 
                States on international narcotics control matters;
            ``(3) the government (including the military or other 
        security forces of such government) of which does not engage in 
        a consistent pattern of gross violations of internationally 
        recognized human rights; and
            ``(4) that is not ineligible for assistance because of the 
        application of section 527(a) of the Foreign Relations 
        Authorization Act, Fiscal Years 1994 and 1995.
    ``(c) Limitations.--The authority under subsection (a) may be 
exercised--
            ``(1) only to implement multilateral official debt relief 
        ad referendum agreements (commonly referred to as `Paris Club 
        Agreed Minutes'); and
            ``(2) only to the extent that appropriations for the cost 
        of the modification, as defined in section 502 of the 
        Congressional Budget Act of 1974, are made in advance.
    ``(d) Certain Prohibitions Inapplicable.--A reduction of debt 
pursuant to the exercise of authority under subsection (a)--
            ``(1) shall not be considered assistance for purposes of 
        any provision of law limiting assistance to a country; and
            ``(2) may be exercised notwithstanding section 620(r) of 
        this Act or any comparable provision of law.
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to the President for the purpose of carrying out this section 
        and the Foreign Operations, Export Financing, and Related 
        Programs Supplemental Appropriations Act, 1994 (title VI of the 
        Foreign Operations, Export Financing, and Related Programs 
        Appropriations Act, 1994; Public Law 103-306) $32,000,000 for 
        each of the fiscal years 1998 and 1999.
            ``(2) Availability.--Amounts authorized to be appropriated 
        under paragraph (1) are authorized to remain available until 
        expended.''.

SEC. 562. DEBT BUYBACKS OR SALES FOR DEBT SWAPS.

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

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

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

                 CHAPTER 7--OTHER ASSISTANCE PROVISIONS

SEC. 571. EXEMPTION FROM RESTRICTIONS ON ASSISTANCE THROUGH 
              NONGOVERNMENTAL ORGANIZATIONS.

    Section 123(e) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151u(e)) is amended to read as follows:
    ``(e)(1) Subject to paragraph (3), restrictions contained in this 
Act or any other provision of law with respect to assistance for a 
country shall not be construed to restrict assistance under this 
chapter, chapter 10, and chapter 11 of this part, chapter 4 of part II, 
or the Support for East European Democracy (SEED) Act of 1989 (22 
U.S.C. 5401 et seq.), in support of programs of nongovernmental 
organizations.
    ``(2) The President shall take into consideration, in any case in 
which a restriction on assistance for a country would be applicable but 
for this subsection, whether assistance for programs of nongovernmental 
organizations is in the national interest of the United States.
    ``(3) Whenever the authority of this subsection is used to furnish 
assistance in support of a program of a nongovernmental organization, 
the President shall notify the congressional committees specified in 
section 634A(a) of this Act in accordance with procedures applicable to 
reprogramming notifications under that section. Such notification shall 
describe the program assisted, the assistance provided, and the reasons 
for furnishing such assistance.''.

SEC. 572. FUNDING REQUIREMENTS RELATING TO UNITED STATES PRIVATE AND 
              VOLUNTARY ORGANIZATIONS.

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

SEC. 573. 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:
    ``(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 
        United States Agency for International Development; or
            ``(2) is not registered with the United States Agency for 
        International Development.''.

SEC. 574. ENCOURAGEMENT OF FREE ENTERPRISE AND PRIVATE PARTICIPATION.

    Section 601(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2351(a)) is amended--
            (1) by striking ``(a)'' and inserting ``(a)(1)''; and
            (2) by adding the following:
    ``(2) To the maximum extent feasible, in providing assistance under 
Part I of this Act, the President should give special emphasis to 
programs and activities that encourage the creation and development of 
private enterprise and free market systems, including--
            ``(A) the development of private cooperatives, credit 
        unions, labor unions, and civic and professional associations;
            ``(B) the reform and restructuring of banking and financial 
        systems; and
            ``(C) the development and strengthening of commercial laws 
        and regulations, including laws and regulations to protect 
        intellectual property.''.

SEC. 575. SENSE OF THE CONGRESS RELATING TO UNITED STATES COOPERATIVES 
              AND CREDIT UNIONS.

    It is the sense of the Congress that--
            (1) United States cooperatives and cooperative development 
        organizations and credit unions can provide an opportunity for 
        people in developing countries to participate directly in 
        democratic decisionmaking for their economic and social benefit 
        through ownership and control of business enterprises and 
        through the mobilization of local capital and savings; and
            (2) such organizations should be utilized in fostering 
        democracy, free markets, community-based development, and self-
        help projects.

SEC. 576. FOOD ASSISTANCE TO THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.

    None of the funds made available in this division and the 
amendments made by this division shall be made available for assistance 
for food to the Democratic People's Republic of Korea unless the 
President certifies to the Congress that--
            (1) the Government of the Republic of Korea does not oppose 
        the delivery of United States assistance for food to the 
        Democratic People's Republic of Korea;
            (2) the United States Government is confident that previous 
        United States assistance for food and official concessional 
        food deliveries have not been diverted to military needs;
            (3) military stocks of the Democratic People's Republic of 
        Korea have been tapped to respond to unmet food aid needs;
            (4) the World Food Program and other international food 
        delivery organizations have been permitted to take and have 
        taken all reasonable steps to ensure that all upcoming food aid 
        deliveries will not be diverted from intended recipients; and
            (5) the Government of the United States has directly acted 
        to encourage, and acting through appropriate international 
        organizations, has encouraged such organizations to urge, the 
        Democratic People's Republic of Korea to initiate fundamental 
        structural reforms of its agricultural sector.

SEC. 577. WITHHOLDING OF ASSISTANCE TO COUNTRIES THAT PROVIDE NUCLEAR 
              FUEL TO CUBA.

    (a) In General.--Section 620 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2370), as amended by this Act, is further amended by adding 
at the end the following:
    ``(y)(1) Except as provided in paragraph (2), the President shall 
withhold from amounts made available under this Act or any other Act 
and allocated for a country for a fiscal year an amount equal to the 
aggregate value of nuclear fuel and related assistance and credits 
provided by that country, or any entity of that country, to Cuba during 
the preceding fiscal year.
    ``(2) The requirement to withhold assistance for a country for a 
fiscal year under paragraph (1) shall not apply if Cuba--
                    ``(A) has ratified the Treaty on the Non-
                Proliferation of Nuclear Weapons (21 UST 483) or the 
                Treaty of Tlatelelco, and Cuba is in compliance with 
                the requirements of either such Treaty;
                    ``(B) has negotiated and is in compliance with 
                full-scope safeguards of the International Atomic 
                Energy Agency not later than two years after 
                ratification by Cuba of such Treaty; and
                    ``(C) incorporates and is in compliance with 
                internationally accepted nuclear safety standards.
    ``(3) The Secretary of State shall prepare and submit to the 
Congress each year a report containing a description of the amount of 
nuclear fuel and related assistance and credits provided by any 
country, or any entity of a country, to Cuba during the preceding year, 
including the terms of each transfer of such fuel, assistance, or 
credits.''.
    (b) Effective Date.--Section 620(y) of the Foreign Assistance Act 
of 1961, as added by subsection (a), shall apply with respect to 
assistance provided in fiscal years beginning on or after the date of 
the enactment of this Act.

                 TITLE VI--TRADE AND DEVELOPMENT AGENCY

SEC. 601. AUTHORIZATION OF APPROPRIATIONS.

    Section 661(f)(1)(A) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2421(f)(1)(A)) is amended to read as follows:
            ``(1) Authorization.--(A) There are authorized to be 
        appropriated for purposes of this section, in addition to funds 
        otherwise available for such purposes, $43,000,000 for each of 
        the fiscal years 1998 and 1999.''.

          TITLE VII--SPECIAL AUTHORITIES AND OTHER PROVISIONS

                     CHAPTER 1--SPECIAL AUTHORITIES

SEC. 701. ENHANCED TRANSFER AUTHORITY.

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

``SEC. 610. TRANSFER BETWEEN ACCOUNTS.

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

SEC. 702. AUTHORITY TO MEET UNANTICIPATED CONTINGENCIES.

    Paragraph (1) of section 451(a) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2261(a)(1)) is amended by striking ``$25,000,000'' and 
inserting ``$50,000,000''.

SEC. 703. SPECIAL WAIVER AUTHORITY.

    (a) Laws Affected.--Section 614 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2364) is amended by striking subsections (a)(1) and 
(a)(2) and inserting the following:
    ``(a) Authority To Authorize Assistance, Sales, and Other Actions; 
Limitations.--(1) The President may authorize assistance, sales, or 
other action under this Act, the Arms Export Control Act, or any annual 
(or periodic) foreign assistance authorization or appropriations 
legislation, without regard to any of the provisions described in 
subsection (b), if the President determines, and notifies in writing 
the Speaker of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate--
            ``(A) with respect to assistance or other actions under 
        chapter 2 or 5 of part II of this Act, or assistance, sales, or 
        other actions under the Arms Export Control Act, that to do so 
        is vital to the national security interests of the United 
        States; and
            ``(B) with respect to other assistance or actions that to 
        do so is important to the national interests of the United 
        States.
    ``(2) The President may waive any provision described in paragraph 
(1), (2), or (3) of subsection (b) that would otherwise prohibit or 
restrict assistance or other action under any provision of law not 
described in those paragraphs if the President determines, and notifies 
in writing the Speaker of the House of Representatives and the chairman 
of the Committee on Foreign Relations of the Senate, that to do so is 
important to the national interests of the United States.''.
    (b) Annual Ceilings.--Section 614(a)(4) of such Act (22 U.S.C. 
2364(a)(4)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (i), by striking ``$750,000,000'' and 
                inserting ``$1,000,000,000'';
                    (B) in clause (ii), by striking ``$250,000,000'' 
                and inserting ``$500,000,000''; and
                    (C) in clause (iii), by striking ``$100,000,000'' 
                and inserting ``$200,000,000''; and
            (2) in subparagraph (C)--
                    (A) by striking ``$50,000,000'' and inserting 
                ``$75,000,000''; and
                    (B) by striking $1,000,000,000'' and inserting 
                ``$1,500,000,000''.
    (c) Laws Which May Be Waived.--Section 614 of such Act (22 U.S.C. 
2364) is amended by striking subsections (b) and (c) and inserting the 
following:
    ``(b) Laws Which May Be Waived.--The provisions referred to in 
paragraphs (1) and (2) of subsection (a) are--
            ``(1) the provisions of this Act;
            ``(2) the provisions of the Arms Export Control Act;
            ``(3) the provisions of any annual (or periodic) foreign 
        assistance authorization or appropriations legislation, 
        including any amendment made by any such Act;
            ``(4) any other provision of law that restricts assistance, 
        sales or leases, or other action under the Acts referred to in 
        paragraph (1), (2), or (3); and
            ``(5) any law relating to receipts and credits accruing to 
        the United States.''.
    (d) Conforming Amendment.--Section 614(a)(4)(B) of such Act (22 
U.S.C 2364(a)(4)(B)) is amended by striking ``the Arms Export Control 
Act or under''.

SEC. 704. TERMINATION OF ASSISTANCE.

    Section 617 of the Foreign Assistance Act of 1961 (22 U.S.C. 2367) 
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, notwithstanding any other provision 
of law, funds made available under this Act or the Arms Export Control 
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 
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. 705. LOCAL ASSISTANCE TO HUMAN RIGHTS GROUPS IN CUBA.

    Section 109 of the Cuban Liberty and Democratic Solidarity 
(LIBERTAD) Act of 1996 (22 U.S.C. 6039) is amended by adding at the end 
the following:
    ``(d) Local Assistance.--
            ``(1) In general.--For the purposes of providing assistance 
        to independent nongovernmental organizations and individuals in 
        Cuba as authorized by subsection (a), amounts made available 
        under such subsection may be used for assistance to individuals 
        and nongovernmental organizations in Cuba and for local costs 
        incurred in delivering such assistance.
            ``(2) Certification.--A certification by a representative 
        of a United States or local nongovernmental organization, or 
        other entity, administering assistance described in paragraph 
        (1), that such assistance is being used for its intended 
        purpose, shall be deemed to satisfy any accountability 
        requirement of the United States Agency for International 
        Development for the administration of such assistance.''.

                           CHAPTER 2--REPEALS

SEC. 711. REPEAL OF OBSOLETE PROVISIONS.

    (a) 1987 Foreign Assistance Appropriations Act.--Section 539(g)(2) 
of the Foreign Assistance and Related Programs Appropriations Act, 
1987, as included in Public Law 99-591, is hereby repealed.
    (b) 1986 Assistance Act.--The Special Foreign Assistance Act of 
1986 is hereby repealed except for section 1, section 204, and title 
III of such Act.
    (c) 1985 Assistance Act.--The International Security and 
Development Cooperation Act of 1985 is hereby repealed except for 
section 1, section 131, section 132, section 502, section 504, section 
505, part B of title V (other than section 558 and section 559), 
section 1302, section 1303, and section 1304.
    (d) 1985 Jordan Supplemental Act.--The Jordan Supplemental Economic 
Assistance Authorization Act of 1985 is hereby repealed.
    (e) 1985 African Famine Act.--The African Famine Relief and 
Recovery Act of 1985 is hereby repealed.
    (f) 1983 Assistance Act.--The International Security and 
Development Assistance Authorization Act of 1983 is hereby repealed.
    (g) 1983 Lebanon Assistance Act.--The Lebanon Emergency Assistance 
Act of 1983 is hereby repealed.
    (h) 1981 Assistance Act.--The International Security and 
Development Cooperation Act of 1981 is hereby repealed except for 
section 1, section 709, and section 714.
    (i) 1980 Assistance Act.--The International Security and 
Development Cooperation Act of 1980 is hereby repealed except for 
section 1, section 110, section 316, and title V.
    (j) 1979 Development Assistance Act.--The International Development 
Cooperation Act of 1979 is hereby repealed.
    (k) 1979 Security Assistance Act.--The International Security 
Assistance Act of 1979 is hereby repealed.
    (l) 1979 Special Security Assistance Act.--The Special 
International Security Assistance Act of 1979 is hereby repealed.
    (m) 1978 Development Assistance Act.--The International Development 
and Food Assistance Act of 1978 is hereby repealed, except for section 
1, title IV, and section 603(a)(2).
    (n) 1978 Security Assistance Act.--The International Security 
Assistance Act of 1978 is hereby repealed.
    (o) 1977 Development Assistance Act.--The International Development 
and Food Assistance Act of 1977 is hereby repealed except for section 
1, section 132(b), and section 133.
    (p) 1977 Security Assistance Act.--The International Security 
Assistance Act of 1977 is hereby repealed.
    (q) 1976 Security Assistance Act.--The International Security 
Assistance and Arms Export Control Act of 1976 is hereby repealed 
except for section 1, section 201(b), section 212(b), section 601, and 
section 608.
    (r) 1975 Development Assistance Act.--The International Development 
and Food Assistance Act of 1975 is hereby repealed.
    (s) 1975 BIB Act.--Public Law 94-104 is hereby repealed.
    (t) 1974 Assistance Act.--The Foreign Assistance Act of 1974 is 
hereby repealed.
    (u) 1973 Emergency Assistance Act.--The Emergency Security 
Assistance Act of 1973 is hereby repealed.
    (v) 1973 Assistance Act.--The Foreign Assistance Act of 1973 is 
hereby repealed.
    (w) 1971 Assistance Act.--The Foreign Assistance Act of 1971 is 
hereby repealed.
    (x) 1971 Special Assistance Act.--The Special Foreign Assistance 
Act of 1971 is hereby repealed.
    (y) 1969 Assistance Act.--The Foreign Assistance Act of 1969 is 
hereby repealed except for the first section and part IV.
    (z) 1968 Assistance Act.--The Foreign Assistance Act of 1968 is 
hereby repealed.
    (aa) 1964 Assistance Act.--The Foreign Assistance Act of 1964 is 
hereby repealed.
    (bb) Latin American Development Act.--The Latin American 
Development Act is hereby repealed.
    (cc) 1959 Mutual Security Act.--The Mutual Security Act of 1959 is 
hereby repealed.
    (dd) 1954 Mutual Security Act.--Sections 402 and 417 of the Mutual 
Security Act of 1954 are hereby repealed.
    (ee) Department of State Authorization Act, Fiscal Years 1982 and 
1983.--Section 109 of the Department of State Authorization Act, Fiscal 
Years 1982 and 1983, is hereby repealed.
    (ff) Department of State Authorization Act, Fiscal Years 1984 and 
1985.--Sections 1004 and 1005(a) of the Department of State 
Authorization Act, Fiscal Years 1984 and 1985, are hereby repealed.
    (gg) 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.

            DIVISION B--FOREIGN RELATIONS AUTHORIZATIONS ACT

                      TITLE X--GENERAL PROVISIONS

SEC. 1001. SHORT TITLE.

    This division may be cited as the ``Foreign Relations Authorization 
Act, Fiscal Years 1998 and 1999'' and shall be effective for all 
purposes as if enacted as a separate Act.

SEC. 1002. STATEMENT OF HISTORY OF LEGISLATION.

    This division consists of H.R. 1253, the Foreign Relations 
Authorization Act, Fiscal Years 1998 and 1999, which was introduced by 
Representative Smith of New Jersey on April 9, 1997, and amended and 
reported by the Subcommittee on International Operations and Human 
Rights of the Committee on International Relations on April 10, 1997.

SEC. 1003. DEFINITIONS.

    The following terms have the following meanings for the purposes of 
this division:
            (1) The term ``AID'' means the Agency for International 
        Development.
            (2) The term ``ACDA'' means the United States Arms Control 
        and Disarmament Agency.
            (3) The term ``appropriate congressional committees'' means 
        the Committee on International Relations of the House of 
        Representatives and the Committee of Foreign Relations of the 
        Senate.
            (4) The term ``Department'' means the Department of State.
            (5) The term ``Federal agency'' has the meaning given to 
        the term ``agency'' by section 551(1) of title 5, United States 
        Code.
            (6) The term ``Secretary'' means the Secretary of State.
            (7) The term ``USIA'' means the United States Information 
        Agency.

 TITLE XI--AUTHORIZATION OF APPROPRIATIONS FOR DEPARTMENT OF STATE AND 
         CERTAIN INTERNATIONAL AFFAIRS FUNCTIONS AND ACTIVITIES

SEC. 1101. ADMINISTRATION OF FOREIGN AFFAIRS.

    The following amounts are authorized to be appropriated for the 
Department of State under ``Administration of Foreign Affairs'' to 
carry out the authorities, functions, duties, and responsibilities in 
the conduct of the foreign affairs of the United States and for other 
purposes authorized by law, including the diplomatic security program:
            (1) Diplomatic and consular programs.--For ``Diplomatic and 
        Consular Programs'', of the Department of State $1,291,977,000 
        for the fiscal year 1998 and $1,291,977,000 for the fiscal year 
        1999.
            (2) Salaries and expenses.--
                    (A) Authorization of appropriations.--For 
                ``Salaries and Expenses'', of the Department of State 
                $363,513,000 for the fiscal year 1998 and $363,513,000 
                for the fiscal year 1999.
                    (B) Limitations.--Of the amounts authorized to be 
                appropriated by subparagraph (A) $2,000,000 for fiscal 
                year 1998 and $2,000,000 for fiscal year 1999 are 
                authorized to be appropriated only for the recruitment 
                of minorities for careers in the Foreign Service and 
                international affairs.
            (3) Capital investment fund.--For ``Capital Investment 
        Fund'', of the Department of State $64,600,000 for the fiscal 
        year 1998 and $64,600,000 for the fiscal year 1999.
            (4) Security and maintenance of buildings abroad.--For 
        ``Security and Maintenance of Buildings Abroad'', $373,081,000 
        for the fiscal year 1998 and $373,081,000 for the fiscal year 
        1999.
            (5) Representation allowances.--For ``Representation 
        Allowances'', $4,300,000 for the fiscal year 1998 and 
        $4,300,000 for the fiscal year 1999.
            (6) Emergencies in the diplomatic and consular service.--
        For ``Emergencies in the Diplomatic and Consular Service'', 
        $5,500,000 for the fiscal 1998 and $5,500,000 for the fiscal 
        year 1999.
            (7) Office of the inspector general.--For ``Office of the 
        Inspector General'', $28,300,000 for the fiscal year 1998 and 
        $28,300,000 for the fiscal year 1999.
            (8) Payment to the american institute in taiwan.--For 
        ``Payment to the American Institute in Taiwan'', $14,490,000 
        for the fiscal year 1998 and $14,490,000 for the fiscal year 
        1999.
            (9) Protection of foreign missions and officials.--For 
        ``Protection of Foreign Missions and Officials'', $7,900,000 
        for the fiscal year 1998 and $7,900,000 for the fiscal year 
        1999.
            (10) Repatriation loans.--For ``Repatriation Loans'', 
        $1,200,000 for the fiscal year 1998 and $1,200,000 for the 
        fiscal year 1999, for administrative expenses.

SEC. 1102. INTERNATIONAL ORGANIZATIONS, PROGRAMS, AND CONFERENCES.

    (a) Assessed Contributions to International Organizations.--There 
are authorized to be appropriated for ``Contributions to International 
Organizations'', $960,389,000 for the fiscal year 1998 and $987,590,000 
for the fiscal year 1999 for the Department of State to carry out the 
authorities, functions, duties, and responsibilities in the conduct of 
the foreign affairs of the United States with respect to international 
organizations and to carry out other authorities in law consistent with 
such purposes.
    (b) Voluntary Contributions to International Organizations.--
            (1) Authorization of appropriations.--There are authorized 
        to be appropriated for ``Voluntary Contributions to 
        International Organizations'', $199,725,000 for the fiscal year 
        1998 and $199,725,000 for the fiscal year 1999.
            (2) Limitations.--
                    (A) World food program.--Of the amounts authorized 
                to be appropriated under paragraph (1), $5,000,000 for 
                the fiscal year 1998 and $5,000,000 for the fiscal year 
                1999 are authorized to be appropriated only for a 
                United States contribution to the World Food Program.
                    (B) United nations voluntary fund for victims of 
                torture.--Of the amount authorized to be appropriated 
                under paragraph (1), $3,000,000 for the fiscal year 
                1998 and $3,000,000 for the fiscal year 1999 are 
                authorized to be appropriated only for a United States 
                contribution to the United Nations Voluntary Fund for 
                Victims of Torture.
                    (C) International program on the elimination of 
                child labor.--Of the amounts authorized to be 
                appropriated under paragraph (1), $10,000,000 for the 
                fiscal year 1998 and $10,000,000 for the fiscal year 
                1999 are authorized to be appropriated only for a 
                United States contribution to the International Labor 
                Organization for the activities of the International 
                Program on the Elimination of Child Labor.
            (3) Availability of funds.--Amounts authorized to be 
        appropriated under paragraph (1) are authorized to remain 
        available until expended.
    (c) Assessed Contributions for International Peacekeeping 
Activities.--There are authorized to be appropriated for 
``Contributions for International Peacekeeping Activities'', 
$240,000,000 for the fiscal year 1998 and $240,000,000 for the fiscal 
year 1999 for the Department of State to carry out the authorities, 
functions, duties, and responsibilities in the conduct of the foreign 
affairs of the United States with respect to international peacekeeping 
activities and to carry out other authorities in law consistent with 
such purposes.
    (d) Voluntary Contributions to Peacekeeping Operations.--There are 
authorized to be appropriated for ``Peacekeeping Operations'', 
$87,600,000 for the fiscal year 1998 and $67,000,000 for the fiscal 
year 1999 for the Department of State to carry out section 551 of 
Public Law 87-195.
    (e) International Conferences and Contingencies.--There are 
authorized to be appropriated for ``International Conferences and 
Contingencies'', $3,000,000 for the fiscal year 1998 and $3,000,000 for 
the fiscal year 1999 for the Department of State to carry out the 
authorities, functions, duties, and responsibilities in the conduct of 
the foreign affairs of the United States with respect to international 
conferences and contingencies and to carry out other authorities in law 
consistent with such purposes.
    (f) Foreign Currency Exchange Rates.--In addition to amounts 
otherwise authorized to be appropriated by subsections (a) and (b) of 
this section, there are authorized to be appropriated such sums as may 
be necessary for each of the fiscal years 1998 and 1999 to offset 
adverse fluctuations in foreign currency exchange rates. Amounts 
appropriated under this subsection shall be available for obligation 
and expenditure only to the extent that the Director of the Office of 
Management and Budget determines and certifies to Congress that such 
amounts are necessary due to such fluctuations.
    (g) Limitation on United States Voluntary Contributions to United 
Nations Development Program.--
            (1) Of the amounts made available for fiscal years 1998 and 
        1999 for United States voluntary contributions to the United 
        Nations Development Program an amount equal to the amount the 
        United Nations Development Program will spend in Burma during 
        each fiscal year shall be withheld unless during such fiscal 
        year, the President submits to the appropriate congressional 
        committees the certification described in paragraph (2).
            (2) The certification referred to in paragraph (1) is a 
        certification by the President that all programs and activities 
        of the United Nations Development Program (including United 
        Nations Development Program--Administered Funds) in Burma--
                    (A) are focused on eliminating human suffering and 
                addressing the needs of the poor;
                    (B) are undertaken only through international or 
                private voluntary organizations that have been deemed 
                independent of the State Law and Order Restoration 
                Council (SLORC), after consultation with the leadership 
                of the National League for Democracy and the leadership 
                of the National Coalition Government of the Union of 
                Burma;
                    (C) provide no financial, political, or military 
                benefit to the SLORC; and
                    (D) are carried out only after consultation with 
                the leadership of the National League for Democracy and 
                the leadership of the National Coalition Government of 
                the Union of Burma.

SEC. 1103. INTERNATIONAL COMMISSIONS.

    The following amounts are authorized to be appropriated under 
``International Commissions'' for the Department of State to carry out 
the authorities, functions, duties, and responsibilities in the conduct 
of the foreign affairs of the United States and for other purposes 
authorized by law:
            (1) International boundary and water commission, united 
        states and mexico.--For ``International Boundary and Water 
        Commission, United States and Mexico''--
                    (A) for ``Salaries and Expenses'' $18,490,000 for 
                the fiscal year 1998 and $18,490,000 for the fiscal 
                year 1999; and
                    (B) for ``Construction'' $6,493,000 for the fiscal 
                year 1998 and $6,493,000 for the fiscal year 1999.
            (2) International boundary commission, united states and 
        canada.--For ``International Boundary Commission, United States 
        and Canada'', $785,000 for the fiscal year 1998 and $785,000 
        for the fiscal year 1999.
            (3) International joint commission.--For ``International 
        Joint Commission'', $3,225,000 for the fiscal year 1998 and 
        $3,225,000 for the fiscal year 1999.
            (4) International fisheries commissions.--For 
        ``International Fisheries Commissions'', $14,549,000 for the 
        fiscal year 1998 and $14,549,000 for the fiscal year 1999.

SEC. 1104. MIGRATION AND REFUGEE ASSISTANCE.

    (a) Migration and Refugee Assistance.--
            (1) Authorization of appropriations.--There are authorized 
        to be appropriated for ``Migration and Refugee Assistance'' for 
        authorized activities, $623,000,000 for the fiscal year 1998 
        and $623,000,000 for the fiscal year 1999.
            (2) Limitation Regarding Tibetan Refugees in India and 
        Nepal.--Of the amounts authorized to be appropriated in 
        paragraph (1), $1,000,000 for the fiscal year 1998 and 
        $1,000,000 for the fiscal year 1999 are authorized to be 
        available only for humanitarian assistance, including but not 
        limited to food, medicine, clothing, and medical and vocational 
        training, to Tibetan refugees in India and Nepal who have fled 
        Chinese-occupied Tibet.
    (b) Refugees Resettling in Israel.--There are authorized to be 
appropriated $80,000,000 for the fiscal year 1998 and $80,000,000 for 
the fiscal year 1999 for assistance for refugees resettling in Israel 
from other countries.
    (c) Humanitarian Assistance for Displaced Burmese.--There are 
authorized to be appropriated $1,500,000 for the fiscal year 1998 and 
$1,500,000 for the fiscal year 1999 for humanitarian assistance, 
including but not limited to food, medicine, clothing, and medical and 
vocational training, to persons displaced as a result of civil conflict 
in Burma, including persons still within Burma.
    (d) Availability of Funds.--Funds appropriated pursuant to this 
section are authorized to be available until expended.

SEC. 1105. ASIA FOUNDATION.

    There are authorized to be appropriated for ``Asia Foundation'', 
$10,000,000 for the fiscal year 1998 and $10,000,000 for the fiscal 
year 1999 for the Department of State to carry out the authorities, 
functions, duties, and responsibilities in the conduct of the foreign 
affairs of the United States with respect to Asia Foundation and to 
carry out other authorities in law consistent with such purposes.

SEC. 1106. UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL 
              PROGRAMS.

    The following amounts are authorized to be appropriated to carry 
out international information activities and educational and cultural 
exchange programs under the United States Information and Educational 
Exchange Act of 1948, the Mutual Educational and Cultural Exchange Act 
of 1961, Reorganization Plan Number 2 of 1977, the United States 
International Broadcasting Act of 1994, the Radio Broadcasting to Cuba 
Act, the Television Broadcasting to Cuba Act, the Board for 
International Broadcasting Act, the North/South Center Act of 1991, the 
National Endowment for Democracy Act, and to carry out other 
authorities in law consistent with such purposes:
            (1) Salaries and expenses.--For ``Salaries and Expenses'', 
        $434,097,000 for the fiscal year 1998 and $434,097,000 for the 
        fiscal year 1999.
            (2) Technology fund.--For ``Technology Fund'' for the 
        United States Information Agency, $6,350,000 for the fiscal 
        year 1998 and $6,350,000 for the fiscal year 1999.
            (3) Educational and cultural exchange programs.--
                    (A) Fulbright academic exchange programs.--For the 
                ``Fulbright Academic Exchange Programs'', $94,236,000 
                for the fiscal year 1998 and $94,236,000 for the fiscal 
                year 1999.
                    (B) South pacific exchanges.--For the ``South 
                Pacific Exchanges'', $500,000 for the fiscal year 1998 
                and $500,000 for the fiscal year 1999.
                    (C) East timorese scholarships.--For the ``East 
                Timorese Scholarships'', $500,000 for the fiscal year 
                1998 and $500,000 for the fiscal year 1999.
                    (D) Tibetan exchanges.--For the ``Educational and 
                Cultural Exchanges with Tibet'' under section 236 of 
                the Foreign Relations Authorization Act, Fiscal Years 
                1994 and 1995 (Public Law 103-236), $500,000 for the 
                fiscal year 1998 and $500,000 for the fiscal year 1999.
                    (E) Other programs.--For ``Hubert H. Humphrey 
                Fellowship Program'', ``Edmund S. Muskie Fellowship 
                Program'', ``International Visitors Program'', ``Mike 
                Mansfield Fellowship Program'', ``Claude and Mildred 
                Pepper Scholarship Program of the Washington Workshops 
                Foundation'', ``Citizen Exchange Programs'', 
                ``Congress-Bundestag Exchange Program'', ``Newly 
                Independent States and Eastern Europe Training'', and 
                ``Institute for Representative Government'', 
                $97,995,000 for the fiscal year 1998 and $97,995,000 
                for the fiscal year 1999.
            (4) International broadcasting activities.--
                    (A) Authorization of appropriations.--For 
                ``International Broadcasting Activities'', $334,655,000 
                for the fiscal year 1998, and $334,655,000 for the 
                fiscal year 1999.
                    (B) Allocation.--Of the amounts authorized to be 
                appropriated under subparagraph (A), the Director of 
                the United States Information Agency and the Board of 
                Broadcasting Governors shall seek to ensure that the 
                amounts made available for broadcasting to nations 
                whose people do not fully enjoy freedom of expression 
                do not decline in proportion to the amounts made 
                available for broadcasting to other nations.
            (5) Radio construction.--For ``Radio Construction'', 
        $30,000,000 for the fiscal year 1998, and $30,000,000 for the 
        fiscal year 1999.
            (6) Radio free asia.--For ``Radio Free Asia'', $10,000,000 
        for the fiscal year 1998 and $10,000,000 for the fiscal year 
        1999.
            (7) Broadcasting to cuba.--For ``Broadcasting to Cuba'', 
        $22,095,000 for the fiscal year 1998 and $22,095,000 for the 
        fiscal year 1999.
            (8) Center for cultural and technical interchange between 
        east and west.--For ``Center for Cultural and Technical 
        Interchange between East and West'', $10,000,000 for the fiscal 
        year 1998 and $10,000,000 for the fiscal year 1999.
            (9) National endowment for democracy.--For ``National 
        Endowment for Democracy'', $30,000,000 for the fiscal year 1998 
        and $30,000,000 for the fiscal year 1999.
            (10) Center for cultural and technical interchange between 
        north and south.--For ``Center for Cultural and Technical 
        Interchange between North and South'' $2,000,000 for the fiscal 
        year 1998 and $2,000,000 for the fiscal year 1999.

SEC. 1107. UNITED STATES ARMS CONTROL AND DISARMAMENT.

    There are authorized to be appropriated to carry out the purposes 
of the Arms Control and Disarmament Act--
            (1) $44,000,000 for the fiscal year 1998 and $44,000,000 
        for the fiscal year 1999; and
            (2) such sums as may be necessary for each of the fiscal 
        years 1998 and 1999 for increases in salary, pay, retirement, 
        other employee benefits authorized by law, and to offset 
        adverse fluctuations in foreign currency exchange rates.

       TITLE XII--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES

                 CHAPTER 1--AUTHORITIES AND ACTIVITIES

SEC. 1201. REVISION OF DEPARTMENT OF STATE REWARDS PROGRAM.

    (a) In General.--Section 36 of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2708) is amended to read as follows:

``SEC. 36. DEPARTMENT OF STATE REWARDS PROGRAM.

    ``(a) Establishment.--(1) There is established a program for the 
payment of rewards to carry out the purposes of this section.
    ``(2) The rewards program established by this section shall be 
administered by the Secretary of State, in consultation, where 
appropriate, with the Attorney General.
    ``(b) Purpose.--(1) The rewards program established by this section 
shall be designed to assist in the prevention of acts of international 
terrorism, international narcotics trafficking, and other related 
criminal acts.
    ``(2) At the sole discretion of the Secretary of State and in 
consultation, as appropriate, with the Attorney General, the Secretary 
may pay a reward to any individual who furnishes information leading 
to--
            ``(A) the arrest or conviction in any country of any 
        individual for the commission of an act of international 
        terrorism against a United States person or United States 
        property;
            ``(B) the arrest or conviction in any country of any 
        individual conspiring or attempting to commit an act of 
        international terrorism against a United States person or 
        United States property;
            ``(C) the arrest or conviction in any country of any 
        individual for committing, primarily outside the territorial 
        jurisdiction of the United States, any narcotics-related 
        offense if that offense involves or is a significant part of 
        conduct that involves--
                    ``(i) a violation of United States narcotics laws 
                and which is such that the individual would be a major 
                violator of such laws; or
                    ``(ii) the killing or kidnapping of--
                            ``(I) any officer, employee, or contract 
                        employee of the United States Government while 
                        such individual is engaged in official duties, 
                        or on account of that individual's official 
                        duties, in connection with the enforcement of 
                        United States narcotics laws or the 
                        implementing of United States narcotics control 
                        objectives; or
                            ``(II) a member of the immediate family of 
                        any such individual on account of that 
                        individual's official duties, in connection 
                        with the enforcement of United States narcotics 
                        laws or the implementing of United States 
                        narcotics control objectives; or
                    ``(iii) an attempt or conspiracy to commit any of 
                the acts described in clause (i) or (ii); or
            ``(D) the arrest or conviction in any country of any 
        individual aiding or abetting in the commission of an act 
        described in subparagraphs (A) through (C); or
            ``(E) the prevention, frustration, or favorable resolution 
        of an act described in subparagraphs (A) through (C).
    ``(c) Coordination.--(1) To ensure that the payment of rewards 
pursuant to this section does not duplicate or interfere with the 
payment of informants or the obtaining of evidence or information, as 
authorized to the Department of Justice, the offering, administration, 
and payment of rewards under this section, including procedures for--
            ``(A) identifying individuals, organizations, and offenses 
        with respect to which rewards will be offered;
            ``(B) the publication of rewards;
            ``(C) offering of joint rewards with foreign governments;
            ``(D) the receipt and analysis of data; and
            ``(E) the payment and approval of payment,
shall be governed by procedures developed by the Secretary of State, in 
consultation with the Attorney General.
    ``(2) Before making a reward under this section in a matter over 
which there is Federal criminal jurisdiction, the Secretary of State 
shall advise and consult with the Attorney General.
    ``(d) Funding.--(1) There is authorized to be appropriated to the 
Department of State from time to time such amounts as may be necessary 
to carry out the purposes of this section, notwithstanding section 102 
of the Foreign Relations Authorization Act, Fiscal Years 1986 and 1987 
(Public Law 99-93).
    ``(2) No amount of funds may be appropriated which, when added to 
the amounts previously appropriated but not yet obligated, would cause 
such amounts to exceed $15,000,000.
    ``(3) To the maximum extent practicable, funds made available to 
carry out this section should be distributed equally for the purpose of 
preventing acts of international terrorism and for the purpose of 
preventing international narcotics trafficking.
    ``(4) Amounts appropriated to carry out the purposes of this 
section shall remain available until expended.
    ``(e) Limitation and Certification.--(1) A reward under this 
section may not exceed $2,000,000.
    ``(2) A reward under this section of more than $100,000 may not be 
made without the approval of the President or the Secretary of State.
    ``(3) Any reward granted under this section shall be approved and 
certified for payment by the Secretary of State.
    ``(4) The authority of paragraph (2) may not be delegated to any 
other officer or employee of the United States Government.
    ``(5) If the Secretary determines that the identity of the 
recipient of a reward or of the members of the recipient's immediate 
family must be protected, the Secretary may take such measures in 
connection with the payment of the reward as he considers necessary to 
effect such protection.
    ``(f) Ineligibility.--An officer or employee of any governmental 
entity who, while in the performance of his or her official duties, 
furnishes information described in subsection (b) shall not be eligible 
for a reward under this section.
    ``(g) Reports.--(1) Not later than 30 days after paying any reward 
under this section, the Secretary of State shall submit a report to the 
appropriate congressional committees with respect to such reward. The 
report, which may be submitted on a classified basis if necessary, 
shall specify the amount of the reward paid, to whom the reward was 
paid, and the acts with respect to which the reward was paid. The 
report shall also discuss the significance of the information for which 
the reward was paid in dealing with those acts.
    ``(2) Not later than 60 days after the end of each fiscal year, the 
Secretary of State shall submit an annual report to the appropriate 
congressional committees with respect to the operation of the rewards 
program authorized by this section. Such report shall provide 
information on the total amounts expended during such fiscal year to 
carry out the purposes of this section, including amounts spent to 
publicize the availability of rewards.
    ``(h) Publication Regarding Rewards Offered by Foreign 
Governments.--Notwithstanding any other provision of this section, at 
the sole discretion of the Secretary of State the resources of the 
rewards program authorized by this section, shall be available for the 
publication of rewards offered by foreign governments regarding acts of 
international terrorism which do not involve United States persons or 
property or a violation of the narcotics laws of the United States.
    ``(i) Definitions.--As used in this section--
            ``(1) the term `appropriate congressional committees' means 
        the Committee on International Relations of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate;
            ``(2) the term `act of international terrorism' includes, 
        but is not limited to--
                    ``(A) any act substantially contributing to the 
                acquisition of unsafeguarded special nuclear material 
                (as defined in section 830(8) of the Nuclear 
                Proliferation Prevention Act of 1994) or any nuclear 
                explosive device (as defined in section 830(4) of that 
                Act) by an individual, group, or non-nuclear weapon 
                state (as defined in section 830(5) of that Act); and
                    ``(B) any act, as determined by the Secretary of 
                State, which materially supports the conduct of 
                international terrorism, including the counterfeiting 
                of United States currency or the illegal use of other 
                monetary instruments by an individual, group, or 
                country supporting international terrorism as 
                determined for purposes of section 6(j) of the Export 
                Administration Act of 1979;
            ``(3) the term `United States narcotics laws' means the 
        laws of the United States for the prevention and control of 
        illicit traffic in controlled substances (as such term is 
        defined for purposes of the Controlled Substances Act); and
            ``(4) the term `member of the immediate family' includes--
                    ``(A) a spouse, parent, brother, sister, or child 
                of the individual;
                    ``(B) a person to whom the individual stands in 
                loco parentis; and
                    ``(C) any other person living in the individual's 
                household and related to the individual by blood or 
                marriage.
    ``(j) Determinations of the Secretary.--A determination made by the 
Secretary of State under this section shall be final and conclusive and 
shall not be subject to judicial review.''.
    (b) Use of Earnings From Frozen Assets for Program.--
            (1) Amounts to be made available.--Up to 2 percent of the 
        earnings accruing, during periods beginning October 1, 1998, on 
        all assets of foreign countries blocked by the President 
        pursuant to the International Emergency Powers Act (50 U.S.C. 
        1701 and following) shall be available, subject to 
        appropriations Acts, to carry out section 36 of the State 
        Department Basic Authorities Act, as amended by this section, 
        except that the limitation contained in subsection (d)(2) of 
        such section shall not apply to amounts made available under 
        this paragraph.
            (2) Control of funds by the president.--The President is 
        authorized and directed to take possession and exercise full 
        control of so much of the earnings described in paragraph (1) 
        as are made available under such paragraph.

SEC. 1202. FOREIGN SERVICE NATIONAL SEPARATION LIABILITY TRUST FUND.

    Section 151 of the Foreign Relations Authorization Act, Fiscal 
Years 1992 and 1993 (22 U.S.C. 4012a) is amended by adding at the end 
the following new subsection:
    ``(e) Interest.--The Secretary of the Treasury shall deposit 
amounts in the fund in interest-bearing accounts. Any interest earned 
on such deposits may be credited to the fund without further 
appropriation.''.

SEC. 1203. CAPITAL INVESTMENT FUND.

    Section 135 of the Foreign Relations Authorization Act, Fiscal 
Years 1994 and 1995 (22 U.S.C. 2684a) is amended--
            (1) in subsection (a) by inserting ``and enhancement'' 
        after ``procurement'';
            (2) in subsection (c) by striking ``are authorized to'' and 
        inserting ``shall'';
            (3) in subsection (d) by striking ``for expenditure to 
        procure capital equipment and information technology'' and 
        inserting in lieu thereof ``for purposes of subsection (a)''; 
        and
            (4) by amending subsection (e) to read as follows:
    ``(e) Reprogramming Procedures.--Funds credited to the Capital 
Investment Fund shall not be available for obligation or expenditure 
except in compliance with the procedures applicable to reprogrammings 
under section 34 of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2710).''.

SEC. 1204. INTERNATIONAL CENTER RESERVE FUNDS.

    Section 5 of the International Center Act (Public Law 90-553) is 
amended by adding at the end the following new sentence: ``Amounts in 
the reserve may be deposited in interest-bearing accounts and the 
Secretary may retain for the purposes set forth in this section any 
interest earned on such deposits without returning such interest to the 
Treasury of the United States and without further appropriation.''.

SEC. 1205. PROCEEDS OF SALE OF FOREIGN PROPERTIES.

    Section 9 of the Foreign Service Buildings Act, 1926 (22 U.S.C. 
300) is amended by adding at the end the following new subsection:
    ``(d) Any proceeds held or deposited pursuant to this section may 
be deposited in interest bearing accounts. The Secretary of State may 
retain interest earned on such deposits for the purposes of this 
section without returning such interest to the Treasury of the United 
States and interest earned may be obligated and expended without 
further appropriation.''.

SEC. 1206. REDUCTION OF REPORTING.

    (a) Report on Foreign Service Personnel in Each Agency.--Section 
601(c)(4) of the Foreign Service Act of 1980 (22 U.S.C. 4001(c)(4)) is 
repealed.
    (b) Report on Participation by U.S. Military Personnel Abroad in 
U.S. Elections.--Section 101(b)(6) of the Uniformed and Overseas 
Citizens Absentee Voting Act (42 U.S.C. 1973ff(b)(6)) is amended by 
striking ``of voter participation'' and inserting ``of uniformed 
services voter participation, a general assessment of overseas 
nonmilitary participation,''.
    (c) Country Reports on Economic Policy and Trade Practices.--
Section 2202 of the Omnibus Trade and Competitiveness Act of 1988 (15 
U.S.C. 4711) is repealed.
    (d) Annual Report on Social and Economic Growth.--Section 574 of 
the Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1996 (Public Law 104-107) is repealed.
    (e) Report.--Section 308 of the Chemical and Biological Weapons and 
Warfare Elimination Act of 1991 (22 U.S.C. 5606) is repealed.

SEC. 1207. CONTRACTING FOR LOCAL GUARDS SERVICES OVERSEAS.

    Section 136(c) of the Foreign Relations Authorization Act, Fiscal 
Years 1990 and 1991 (22 U.S.C. 4864(c)) is amended--
            (1) by amending paragraph (3) to read as follows:
            ``(3) in evaluating proposals for such contracts, award 
        contracts to the technically acceptable firm offering the 
        lowest evaluated price, except that proposals of United States 
        persons and qualified United States joint venture persons (as 
        defined in subsection (d)) shall be evaluated by reducing the 
        bid price by 5 percent;'';
            (2) by inserting ``and'' at the end of paragraph (5);
            (3) by striking ``; and'' at the end of paragraph (6) and 
        inserting a period; and
            (4) by striking paragraph (7).

SEC. 1208. PREADJUDICATION OF CLAIMS.

    Section 4(a) of the International Claims Settlement Act (22 U.S.C. 
1623(a)) is amended--
            (1) in the first sentence by striking ``1948, or'' and 
        inserting ``1948,'';
            (2) by inserting before the period at the end of the first 
        sentence ``, or included in a category of claims against a 
        foreign government which is referred to the Commission by the 
        Secretary of State''; and
            (3) in paragraph (1) by striking ``the applicable'' and 
        inserting ``any applicable''.

SEC. 1209. EXPENSES RELATING TO CERTAIN INTERNATIONAL CLAIMS AND 
              PROCEEDINGS.

    (a) Recovery of Certain Expenses.--The Department of State 
Appropriation Act of 1937 (49 Stat. 1321, 22 U.S.C. 2661) is amended in 
the fifth undesignated paragraph under the heading entitled 
``international fisheries commission'' by striking ``extraordinary''.
    (b) Procurement of Services.--Section 38(c) of the State Department 
Basic Authorities Act of 1956 (22 U.S.C. 2710(c)) is amended in the 
first sentence by inserting ``personal and'' before ``other support 
services''.

SEC. 1210. ESTABLISHMENT OF FEE ACCOUNT AND PROVIDING FOR PASSPORT 
              INFORMATION SERVICES.

    (a) Disposition of Fees.--Amounts collected by the Department of 
State pursuant to section 281 of the Immigration and Nationality Act (8 
U.S.C. 1351), section 1 of the Passport Act of June 4, 1920 (22 U.S.C. 
214), section 16 of the Act of August 18, 1856 (22 U.S.C. 4219), and 
section 9701 of title 31, United States Code, shall be deposited in a 
special fund of the Treasury.
    (b) Use of Funds.--Subject to subsections (d) and (e), amounts 
collected and deposited in the special fund in the Treasury pursuant to 
subsection (a) shall be available to the extent and in such amounts as 
are provided in advance in appropriations Acts for the following 
purposes:
            (1) To pay all necessary expenses of the Department of 
        State and the Foreign Service, including expenses authorized by 
        the State Department Basic Authorities Act of 1956.
            (2) Representation to certain international organizations 
        in which the United States participates pursuant to treaties 
        ratified pursuant to the advice and consent of the Senate or 
        specific Acts of Congress.
            (3) Acquisition by exchange or purchase of passenger motor 
        vehicles as authorized by section 1343 of title 31, United 
        States Code, section 201(c) of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 481(c)), and 
        section 7 of the State Department Basic Authorities Act (22 
        U.S.C. 2674).
            (4) Expenses of general administration of the Department of 
        State.
            (5) To carry out the Foreign Service Buildings Act of 1926 
        (22 U.S.C. 292-300) and the Diplomatic Security Construction 
        Program as authorized by title IV of the Omnibus Diplomatic 
        Security and Antiterrorism Act of 1986 (22 U.S.C. 4851).
    (c) Availability of Funds.--Amounts collected and deposited in the 
special fund pursuant to subsection (a) are authorized to remain 
available until expended.
    (d) Limitation.--For any fiscal year, any amount deposited in the 
special fund under subsection (a) that exceeds $455,000,000 is 
authorized to be made available only if a notification is submitted in 
compliance with the procedures applicable to a reprogramming of funds 
under section 34 of the State Department Basic Authorities Act of 1956.
    (e) Passport Information Services.--For each of the fiscal years 
1998 and 1999, $5,000,000 of the amounts available in the fund shall be 
available only for the purpose of providing passport information 
without charge to citizens of the United States, including--
            (1) information about who is eligible to receive a United 
        States passport and how and where to apply;
            (2) information about the status of pending applications; 
        and
            (3) names, addresses, and telephone numbers of State and 
        Federal officials who are authorized to provide passport 
        information in cooperation with the Department of State.

SEC. 1211. ESTABLISHMENT OF MACHINE READABLE FEE ACCOUNT.

    Section 140(a) of the Foreign Relations Authorization Act, Fiscal 
Years 1994 and 1995 (Public Law 103-236) is amended--
            (1) by redesignating paragraph (4) as paragraph (6);
            (2) by striking paragraph (5);
            (3) by striking paragraphs (2) and (3) and inserting the 
        following:
            ``(2) Amounts collected under the authority of paragraph 
        (1) shall be deposited in a special fund of the Treasury.
            ``(3) Subject to paragraph (5), fees deposited in the 
        special fund pursuant to paragraph (2) shall be available to 
        the extent and in such amounts as are provided in advance in 
        appropriations Acts for costs of the Department of State's 
        border security program, including the costs of--
                    ``(A) installation and operation of the machine 
                readable visa and automated name-check process;
                    ``(B) improving the quality and security of the 
                United States passport;
                    ``(C) passport and visa fraud investigations; and
                    ``(D) the technological infrastructure to support 
                and operate the programs referred to in subparagraphs 
                (A) through (C).
            ``(4) Amounts deposited pursuant to paragraph (2) shall 
        remain available for obligation until expended.
            ``(5) For any fiscal year, any amount collected pursuant to 
        the authority of paragraph (1) that exceeds $140,000,000 is 
        authorized to be made available only if a notification is 
        submitted in compliance with the procedures applicable to a 
        reprogramming of funds under section 34 of the State Department 
        Basic Authorities Act of 1956.''.

SEC. 1212. RETENTION OF ADDITIONAL DEFENSE TRADE CONTROLS REGISTRATION 
              FEES.

    Section 45(a) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2717(a)) is amended--
            (1) by striking ``$700,000 of the'' and inserting ``all'';
            (2) at the end of paragraph (1) by striking ``and'';
            (3) in paragraph (2)--
                    (A) by striking ``functions'' and inserting 
                ``functions, including compliance and enforcement 
                activities,''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (4) by adding at the end the following new paragraph (3):
            ``(3) the enhancement of defense trade export compliance 
        and enforcement activities to include compliance audits of 
        United States and foreign parties, the conduct of 
        administrative proceedings, end-use monitoring of direct 
        commercial arms sales and transfer, and cooperation in criminal 
        proceedings related to defense trade export controls.''.

SEC. 1213. TRAINING.

    (a) Institute for Training.--Section 701 of the Foreign Service Act 
of 1980 (22 U.S.C. 4021) is amended--
            (1) by redesignating subsection (d)(4) as subsection (g); 
        and
            (2) by inserting after paragraph (3) of subsection (d) the 
        following new subsections:
    ``(e)(1) The Secretary of State may, in the discretion of the 
Secretary, provide appropriate training and related services through 
the institution to employees of United States companies engaged in 
business abroad, and to the families of such employees.
    ``(2) In the case of any company under contract to provide services 
to the Department of State, the Secretary of State is authorized to 
provide job-related training and related services to any company 
employee who is performing such services.
    ``(3) Training under this subsection shall be on a reimbursable or 
advance-of-funds basis. Such reimbursements or advances shall be 
credited to the currently available applicable appropriation account.
    ``(4) Training and related services under this subsection is 
authorized only to the extent that it will not interfere with the 
institution's primary mission of training employees of the Department 
and of other agencies in the field of foreign relations.
    ``(f)(1) The Secretary of State is authorized to provide on a 
reimbursable basis training programs to Members of Congress or the 
judiciary.
    ``(2) Congressional staff members and employees of the judiciary 
may participate on a reimbursable, space-available basis in training 
programs offered by the institution.
    ``(3) Reimbursements collected under this subsection shall be 
credited to the currently available applicable appropriation account.
    ``(4) Training under this subsection is authorized only to the 
extent that it will not interfere with the institution's primary 
mission of training employees of the Department of State and of other 
agencies in the field of foreign relations.''.
    (b) Fees for Use of National Foreign Affairs Training Center.--The 
State Department Basic Authorities Act of 1956 (22 U.S.C. 2669 et seq.) 
is amended by adding after section 52 the following new section:

``SEC. 53. FEES FOR USE OF THE NATIONAL FOREIGN AFFAIRS TRAINING 
              CENTER.

    ``The Secretary is authorized to charge a fee for use of the 
National Foreign Affairs Training Center Facility of the Department of 
State. Funds collected under the authority of this section, including 
reimbursements, surcharges, and fees, shall be deposited as an 
offsetting collection to any Department of State appropriation to 
recover the costs of such use and shall remain available for obligation 
until expended.''.

SEC. 1214. RECOVERY OF COSTS OF HEALTH CARE SERVICES.

    (a) Authorities.--Section 904 of the Foreign Service Act of 1980 
(22 U.S.C. 4084) is amended--
            (1) in subsection (a)--
                    (A) by striking ``and'' after ``employees,'', and
                    (B) by inserting before the period ``, and (for 
                care provided abroad) such other persons as are 
                designated by the Secretary of State'';
            (2) in subsection (d), by inserting ``subject to 
        subsections (g) through (i)'' before ``the Secretary''; and
            (3) by adding at the end the following new subsections:
    ``(g)(1)(A) In the case of a covered beneficiary who is provided 
health care under this section and who is enrolled in a covered health 
benefits plan of a third-party payer, the United States shall have the 
right to collect from the third-party payer a reasonable charge amount 
for the care to the extent that the payment would be made under such 
plan for such care under the conditions specified in paragraph (2) if a 
claim were submitted by or on behalf of the covered beneficiary.
    ``(B) Such a covered beneficiary is not required to pay any 
deductible, copayment, or other cost-sharing under the covered health 
benefits plan or under this section for health care provided under this 
section.
    ``(2) With respect to health care provided under this section to a 
covered beneficiary, for purposes of carrying out paragraph (1)--
            ``(A) the reasonable charge amount (as defined in paragraph 
        (9)(C)) shall be treated by the third-party payer as the 
        payment basis otherwise allowable for the care under the plan;
            ``(B) under regulations, if the covered health benefits 
        plan restricts or differentiates in benefit payments based on 
        whether a provider of health care has a participation agreement 
        with the third-party payer, the Secretary shall be treated as 
        having such an agreement as results in the highest level of 
        payment under this subsection;
            ``(C) no provision of the health benefit plan having the 
        effect of excluding from coverage or limiting payment of 
        charges for certain care shall operate to prevent collection 
        under subsection (a), including (but not limited to) any 
        provision that limits coverage or payment on the basis that--
                    ``(i) the care was provided outside the United 
                States,
                    ``(ii) the care was provided by a governmental 
                entity,
                    ``(iii) the covered beneficiary (or any other 
                person) has no obligation to pay for the care,
                    ``(iv) the provider of the care is not licensed to 
                provide the care in the United States or other 
                location,
                    ``(v) a condition of coverage relating to 
                utilization review, prior authorization, or similar 
                utilization control has not been met, or
                    ``(vi) in the case that drugs were provided, the 
                provision of the drugs for any indicated purpose has 
                not been approved by the Federal Food, Drug, and 
                Cosmetic Administration;
            ``(D) if the covered health benefits plan contains a 
        requirement for payment of a deductible, copayment, or similar 
        cost-sharing by the beneficiary--
                    ``(i) the beneficiary's not having paid such cost-
                sharing with respect to the care shall not preclude 
                collection under this section, and
                    ``(ii) the amount the United States may collect 
                under this section shall be reduced by application of 
                the appropriate cost-sharing;
            ``(E) amounts that would be payable by the third-party 
        payer under this section but for the application of a 
        deductible under subparagraph (D)(ii) shall be counted towards 
        such deductible notwithstanding that under paragraph (1)(B) the 
        individual is not charged for the care and did not pay an 
        amount towards such care; and
            ``(F) the Secretary may apply such other provisions as may 
        be appropriate to carry out this section in an equitable 
        manner.
    ``(3) In exercising authority under paragraph (1)--
            ``(A) the United States shall be subrogated to any right or 
        claim that the covered beneficiary may have against a third-
        party payer;
            ``(B) the United States may institute and prosecute legal 
        proceedings against a third-party payer to enforce a right of 
        the United States under this section; and
            ``(C) the Secretary may compromise, settle, or waive a 
        claim of the United States under this section.
    ``(4) No law of any State, or of any political subdivision of a 
State, shall operate to prevent or hinder collection by the United 
States under this section.
    ``(5) If collection is sought from a third-party payer for health 
care furnished a covered beneficiary under this section, under 
regulations medical records of the beneficiary shall be made available 
for inspection and review by representatives of the third-party payer 
for the sole purpose of permitting the third-party payer to verify, 
consistent with this subsection that--
            ``(A) the care for which recovery or collection is sought 
        were furnished to the beneficiary; and
            ``(B) except as otherwise provided in this subsection, the 
        provision of such care to the beneficiary meets criteria 
        generally applicable under the covered health benefits plan.
    ``(6) The Secretary shall establish (and periodically update) a 
schedule of reasonable charge amounts for health care provided under 
this section. The amount under such schedule for health care shall be 
based on charges or fee schedule amounts recognized by third-party 
payers under covered health benefits plans for payment purposes for 
similar health care services furnished in the Metropolitan Washington, 
District of Columbia, area.
    ``(7) The Secretary shall establish a procedure under which a 
covered beneficiary may elect to have subsection (h) apply instead of 
this subsection with respect to some or all health care provided to the 
beneficiary under this section.
    ``(8) Amounts collected under this subsection, under subsection 
(h), or under any authority referred to in subsection (i), from a 
third-party payer or from any other payer shall be deposited as an 
offsetting collection to any Department of State appropriation and 
shall remain available until expended.
    ``(9) For purposes of this section:
            ``(A) The term `covered beneficiary' means a member or 
        employee (or family member of such a member of employee) 
        described in subsection (a) who is enrolled under a covered 
        health benefits plan.
            ``(B)(i) Subject to clause (ii), the term `covered health 
        benefits plan' means a health benefits plan offered under the 
        Federal Employees Health Benefits Program under chapter 89 of 
        title 5, United States Code.
            ``(ii) Such term does not include such a health benefits 
        plan (such as a plan of a staff-model health maintenance 
        organization) as the Secretary determines pursuant to 
        regulations to be structured in a manner that impedes the 
        application of this subsection to individuals enrolled under 
        the plan. To the extent practicable, the Secretary shall seek 
        to disseminate to members of the Service and designated 
        employees described in subsection (a) who are eligible to 
        receive health care under this section the names of plans 
        excluded under this clause.
            ``(C) The term `reasonable charge amount' means, with 
        respect to health care provided under this section, the amount 
        for such care specified in the schedule established under 
        paragraph (6).
            ``(D) The term `third-party payer' means an entity that 
        offers a covered health benefits plan.
    ``(h)(1) In the case of an individual who--
            ``(A) receives health care pursuant to this section; and
            ``(B)(i) is not a covered beneficiary (including by virtue 
        of enrollment only in a health benefits plan excluded under 
        subsection (g)(9)(B)(ii)), or
            ``(ii) is such a covered beneficiary and has made an 
        election described in subsection (g)(7) with respect to such 
        care,
the Secretary is authorized to collect from the individual the full 
reasonable charge amount for such care.
    ``(2) The United States shall have the same rights against such 
individuals with respect to collection of such amounts as the United 
States has with respect to collection of amounts against a third-party 
payer under subsection (g), except that the rights under this 
subsection shall be exercised without regard to any rules for 
deductibles, coinsurance, or other cost-sharing.
    ``(i) Subsections (g) and (h) shall apply to reimbursement for the 
cost of hospitalization and related outpatient expenses paid for under 
subsection (d) only to the extent provided in regulations. Nothing in 
this subsection, or subsections (g) and (h), shall be construed as 
limiting any authority the Secretary otherwise has with respect to 
obtaining reimbursement for the payments made under subsection (d).''.
    (b) Effective Date.--(1) The amendments made by subsection (a) 
shall apply to items and services provided on and after the first day 
of the first month that begins more than 1 year after the date of the 
enactment of this Act.
    (2) In order to carry out such amendments in a timely manner, the 
Secretary of State is authorized to issue interim, final regulations 
that take effect pending notice and opportunity for public comment.

SEC. 1215. FEE FOR USE OF DIPLOMATIC RECEPTION ROOMS.

    The State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a 
et seq.) is amended by adding after section 53 (as added by section 
1213(b)) the following new section:

``SEC. 54. FEE FOR USE OF DIPLOMATIC RECEPTION ROOMS.

    ``The Secretary of State is authorized to charge a fee for use of 
the diplomatic reception rooms of the Department of State. Amounts 
collected under the authority of this section (including any 
reimbursements and surcharges) shall be deposited as an offsetting 
collection to any Department of State appropriation to recover the 
costs of such use and shall remain available for obligation until 
expended.''.

SEC. 1216. FEES FOR COMMERCIAL SERVICES.

    Section 52 of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2724) is amended in subsection (b) by adding at the end the 
following: ``Funds deposited under this subsection shall remain 
available for obligation until expended.''.

SEC. 1217. BUDGET PRESENTATION DOCUMENTS.

    The Secretary of State shall include in the annual Congressional 
Presentation Document and the Budget in Brief, a detailed accounting of 
the total collections received by the Department of State from all 
sources, including fee collections. Reporting on total collections 
shall also include the previous year's collection and the projected 
expenditures from all collections accounts.

SEC. 1218. EXTENSION OF CERTAIN ADJUDICATION PROVISIONS.

    The Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1990 (Public Law 101-167) is amended--
            (1) in section 599D (8 U.S.C. 1157 note)--
                    (A) in subsection (b)(3), by striking ``and 1997'' 
                and inserting ``1997, 1998, and 1999''; and
                    (B) in subsection (e), by striking ``October 1, 
                1997'' each place it appears and inserting ``October 1, 
                1999''; and
            (2) in section 599E (8 U.S.C. 1255 note) in subsection 
        (b)(2), by striking ``September 30, 1997'' and inserting 
        ``September 30, 1999''.

SEC. 1219. GRANTS TO OVERSEAS EDUCATIONAL FACILITIES.

    Section 29 of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2701) is amended by adding at the end the following: 
``Notwithstanding any other provision of law, where the children of 
United States citizen employees of an agency of the United States 
Government who are stationed outside the United States attend 
educational facilities assisted by the Department of State under this 
section, such agency is authorized make grants to, or otherwise to 
reimburse or credit with advance payment, the Department of State for 
funds used in providing assistance to such educational facilities.''.

SEC. 1220. GRANTS TO REMEDY INTERNATIONAL CHILD ABDUCTIONS.

    (a) Grant Authority.--Section 7 of the International Child 
Abduction Remedies Act (42 U.S.C. 11606; Public Law 100-300) is amended 
by adding at the end the following new subsection:
    ``(e) Grant Authority.--The United States Central Authority is 
authorized to make grants to, or enter into contracts or agreements 
with, any individual, corporation, other Federal, State, or local 
agency, or private entity or organization in the United States for 
purposes of accomplishing its responsibilities under the convention and 
this Act.''.

       CHAPTER 2--CONSULAR AUTHORITIES OF THE DEPARTMENT OF STATE

SEC. 1241. USE OF CERTAIN PASSPORT PROCESSING FEES FOR ENHANCED 
              PASSPORT SERVICES.

    For each of the fiscal years 1998 and 1999, of the fees collected 
for expedited passport processing and deposited to an offsetting 
collection pursuant to the Department of State and Related Agencies 
Appropriations Act for Fiscal Year 1995 (Public Law 103-317; 22 U.S.C. 
214), 30 percent shall be available only for enhancing passport 
services for United States citizens, improving the integrity and 
efficiency of the passport issuance process, improving the secure 
nature of the United States passport, investigating passport fraud, and 
deterring entry into the United States by terrorists, drug traffickers, 
or other criminals.

SEC. 1242. CONSULAR OFFICERS.

    (a) Persons Authorized To Issue Reports of Birth Abroad.--Section 
33 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 
2705) is amended in paragraph (2) by inserting ``(or any United States 
citizen employee of the Department of State designated by the Secretary 
of State to adjudicate nationality abroad pursuant to such regulations 
as the Secretary may prescribe)'' after ``consular officer''.
    (b) Provisions Applicable to Consular Officers.--Section 1689 of 
the Revised Statutes of the United States (22 U.S.C. 4191), is amended 
by inserting ``and to such other United States citizen employees of the 
Department of State as may be designated by the Secretary of State 
pursuant to such regulations as the Secretary may prescribe'' after 
``such officers''.
    (c) Persons Authorized to Authenticate Foreign Documents--Section 
3492(c) of title 18, United States Code, is amended by adding at the 
end the following: ``For purposes of this section and sections 3493 
through 3496 of this title, a consular officer shall include any United 
States citizen employee of the Department of State designated to 
perform notarial functions pursuant to section 24 of the Act of August 
18, 1856 (Rev. Stat. 1750, 22 U.S.C. 4221).''.
    (d) Persons Authorized to Administer Oaths.--Section 115 of title 
35, United States Code, is amended by adding at the end the following: 
``For purposes of this section a consular officer shall include any 
United States citizen employee of the Department of State designated to 
perform notarial functions pursuant to section 24 of the Act of August 
18, 1856 (Rev. Stat. 1750, 22 U.S.C. 4221).''.

SEC. 1243. REPEAL OF OUTDATED CONSULAR RECEIPT REQUIREMENTS.

    Sections 1726, 1727, and 1728 of the Revised Statutes of the United 
States (22 U.S.C. 4212, 4213, and 4214) (concerning accounting for 
consular fees) are repealed.

SEC. 1244. ELIMINATION OF DUPLICATE PUBLICATION REQUIREMENTS.

    (a) Federal Register Publication of Travel Advisories.--Section 
44908(a) of title 49, United States Code, is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).
    (b) Publication in the Federal Register of Travel Advisories 
Concerning Security at Foreign Ports.--Section 908(a) of the 
International Maritime and Port Security Act of 1986 (Public Law 99-
399; 100 Stat. 891; 46 U.S.C. App. 1804(a)) is amended by striking the 
second sentence.

                   CHAPTER 3--REFUGEES AND MIGRATION

SEC. 1261. REPORT TO CONGRESS CONCERNING CUBAN EMIGRATION POLICIES.

    Beginning 3 months after the date of the enactment of this Act and 
every subsequent 6 months, the Secretary of State shall include in the 
monthly report to Congress entitled ``Update on Monitoring of Cuban 
Migrant Returnees'' additional information concerning the methods 
employed by the Government of Cuba to enforce the United States-Cuba 
agreement of September 1994 to restrict the emigration of the Cuban 
people from Cuba to the United States and the treatment by the 
Government of Cuba of persons who have returned to Cuba pursuant to the 
United States-Cuba agreement of May 1995.

SEC. 1262. REPROGRAMMING OF MIGRATION AND REFUGEE ASSISTANCE FUNDS.

    Section 34 of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2706) is amended by adding at the end the following new 
subsection:
    ``(c) Emergency Waiver of Notification Requirement.--The Secretary 
of State may waive the notification requirement of subsection (a), if 
the Secretary determines that failure to do so would pose a substantial 
risk to human health or welfare. In the case of any waiver under this 
subsection, notification to the appropriate congressional committees 
shall be provided as soon as practicable, but not later than 3 days 
after taking the action to which the notification requirement was 
applicable, and shall contain an explanation of the emergency 
circumstances.''.

  TITLE XIII--ORGANIZATION OF THE DEPARTMENT OF STATE; DEPARTMENT OF 
                  STATE PERSONNEL; THE FOREIGN SERVICE

           CHAPTER 1--ORGANIZATION OF THE DEPARTMENT OF STATE

SEC. 1301. COORDINATOR FOR COUNTERTERRORISM.

    (a) Establishment.--Section 1(e) of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2651a(e)) is amended--
            (1) by striking ``In'' and inserting the following:
            ``(1) In''; and
            (2) by inserting at the end the following:
    ``(2) Coordinator for counterterrorism.--
            ``(A) There shall be within the office of the Secretary of 
        State a Coordinator for Counterterrorism (hereafter in this 
        paragraph referred to as the `Coordinator') who shall be 
        appointed by the President, by and with the advice and consent 
        of the Senate.
            ``(B)(i) The Coordinator shall perform such duties and 
        exercise such power as the Secretary of State shall prescribe.
            ``(ii) The principal duty of the Coordinator shall be the 
        overall supervision (including policy oversight of resources) 
        of international counterterrorism activities. The Coordinator 
        shall be the principal adviser to the Secretary of State on 
        international counterterrorism matters. The Coordinator shall 
        be the principal counterterrorism official within the senior 
        management of the Department of State and shall report directly 
        to the Secretary of State.
            ``(C) The Coordinator shall have the rank and status of 
        Ambassador-at-Large. The Coordinator shall be compensated at 
        the annual rate of basic pay in effect for a position at level 
        IV of the Executive Schedule under section 5314 of title 5, 
        United States Code, or, if the Coordinator is appointed from 
        the Foreign Service, the annual rate of pay which the 
        individual last received under the Foreign Service Schedule, 
        whichever is greater.''.
    (b) Technical and Conforming Amendments.--Section 161 of the 
Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public 
Law 103-236) is amended by striking subsection (e).
    (c) Transition Provision.--The individual serving as Coordinator 
for Counterterrorism of the Department of State on the day before the 
effective date of this division may continue to serve in that position.

SEC. 1302. ELIMINATION OF STATUTORY ESTABLISHMENT OF CERTAIN POSITIONS 
              OF THE DEPARTMENT OF STATE.

    (a) Assistant Secretary of State for South Asian Affairs.--Section 
122 of the Foreign Relations Authorization Act, Fiscal Years 1992 and 
1993 (22 U.S.C. 2652b) is repealed.
    (b) Deputy Assistant Secretary of State for Burdensharing.--Section 
161 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 
1995 (22 U.S.C. 2651a note) is amended by striking subsection (f).
    (c) Assistant Secretary for Oceans and International Environmental 
and Scientific Affairs.--Section 9 of the Department of State 
Appropriations Authorization Act of 1973 (22 U.S.C. 2655a) is repealed.

SEC. 1303. ESTABLISHMENT OF ASSISTANT SECRETARY OF STATE FOR HUMAN 
              RESOURCES.

    Section 1(c) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2651a(c)) is amended by adding after paragraph (2) the 
following new paragraph:
            ``(3) Assistant secretary for human resources.--There shall 
        be in the Department of State an Assistant Secretary for Human 
        Resources who shall be responsible to the Secretary of State 
        for matters relating to human resources including the 
        implementation of personnel policies and programs within the 
        Department of State and international affairs functions and 
        activities carried out through the Department of State. The 
        Assistant Secretary shall have substantial professional 
        qualifications in the field of human resource policy and 
        management.''.

SEC. 1304. ESTABLISHMENT OF ASSISTANT SECRETARY OF STATE FOR DIPLOMATIC 
              SECURITY.

    Section 1(c) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2651a(c)) as amended by section 1303 is further amended by 
adding after paragraph (3) the following new paragraph:
            ``(4) Assistant secretary for diplomatic security.--There 
        shall be in the Department of State an Assistant Secretary for 
        Diplomatic Security who shall be responsible to the Secretary 
        of State for matters relating to diplomatic security. The 
        Assistant Secretary shall have substantial professional 
        qualifications in the field of Federal law enforcement, 
        intelligence, or security.''.

SEC. 1305. SPECIAL ENVOY FOR TIBET.

    (a) United States Special Envoy for Tibet.--The President should 
appoint within the Department of State a United States Special Envoy 
for Tibet, who shall hold office at the pleasure of the President.
    (b) Rank.--A United States Special Envoy for Tibet appointed under 
subsection (a) shall have the personal rank of ambassador and shall be 
appointed by and with the advice and consent of the Senate.
    (c) Special Functions.--The United States Special Envoy for Tibet 
should be authorized and encouraged--
            (1) to promote substantive negotiations between the Dalai 
        Lama or his representatives and senior members of the 
        Government of the People's Republic of China;
            (2) to promote good relations between the Dalai Lama and 
        his representatives and the United States Government, including 
        meeting with members or representatives of the Tibetan 
        government-in-exile; and
            (3) to travel regularly throughout Tibet and Tibetan 
        refugee settlements.
    (d) Duties and Responsibilities.--The United States Special Envoy 
for Tibet should--
            (1) consult with the Congress on policies relevant to Tibet 
        and the future and welfare of all Tibetan people;
            (2) coordinate United States Government policies, programs, 
        and projects concerning Tibet; and
            (3) report to the Secretary of State regarding the matters 
        described in section 536(a)(2) of the Foreign Relations 
        Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-
        236).

SEC. 1306. RESPONSIBILITIES FOR BUREAU CHARGED WITH REFUGEE ASSISTANCE.

    The Bureau of Migration and Refugee Assistance shall be the bureau 
within the Department of State with principal responsibility for 
assisting the Secretary in carrying out the Migration and Refugee 
Assistance Act of 1962 and shall not be charged with responsibility for 
assisting the Secretary in matters relating to family planning or 
population policy.

  CHAPTER 2--PERSONNEL OF THE DEPARTMENT OF STATE; THE FOREIGN SERVICE

SEC. 1321. AUTHORIZED STRENGTH OF THE FOREIGN SERVICE.

    (a) End Fiscal Year 1998 Levels.--The number of members of the 
Foreign Service authorized to be employed as of September 30, 1998--
            (1) for the Department of State, shall not exceed 8,700, of 
        whom not more than 750 shall be members of the Senior Foreign 
        Service;
            (2) for the United States Information Agency, shall not 
        exceed 1,000, of whom not more than 140 shall be members of the 
        Senior Foreign Service; and
            (3) for the Agency for International Development, not to 
        exceed 1070, of whom not more than 140 shall be members of the 
        Senior Foreign Service.
    (b) End Fiscal Year 1999 Levels.--The number of members of the 
Foreign Service authorized to be employed as of September 30, 1999--
            (1) for the Department of State, shall not exceed 8,800, of 
        whom not more than 750 shall be members of the Senior Foreign 
        Service;
            (2) for the United States Information Agency, not to exceed 
        1,000 of whom not more than 140 shall be members of the Senior 
        Foreign Service; and
            (3) for the Agency for International Development, not to 
        exceed 1065 of whom not more than 135 shall be members of the 
        Senior Foreign Service.
    (c) Definition.--For the purposes of this section, the term 
``members of the Foreign Service'' is used within the meaning of such 
term under section 103 of the Foreign Service Act of 1980 (22 U.S.C 
3903), except that such term does not include--
            (1) members of the Service under paragraphs (6) and (7) of 
        such section;
            (2) members of the Service serving under temporary resident 
        appointments abroad;
            (3) members of the Service employed on less than a full-
        time basis;
            (4) members of the Service subject to involuntary 
        separation in cases in which such separation has been suspended 
        pursuant to section 1106(8) of the Foreign Service Act of 1980; 
        and
            (5) members of the Service serving under non-career limited 
        appointments.
    (d) Waiver Authority.--(1) Subject to paragraph (2), the President 
may waive any limitation under subsection (a) or (b) to the extent that 
such waiver is necessary to carry on the foreign affairs functions of 
the United States.
    (2) Not less than 15 days before the President exercises a waiver 
under paragraph (1), such agency head shall notify the Chairman of the 
Committee on Foreign Relations of the Senate and the Chairman of the 
Committee on International Relations of the House of Representatives. 
Such notice shall include an explanation of the circumstances and 
necessity for such waiver.

SEC. 1322. NONOVERTIME DIFFERENTIAL PAY.

    Title 5 of the United States Code is amended--
            (1) in section 5544(a), by inserting after the fourth 
        sentence the following new sentence: ``For employees serving 
        outside the United States in areas where Sunday is a routine 
        workday and another day of the week is officially recognized as 
        the day of rest and worship, the Secretary of State may 
        designate the officially recognized day of rest and worship as 
        the day with respect to which the preceding sentence shall 
        apply instead of Sunday.''; and
            (2) at the end of section 5546(a), by adding the following 
        new sentence: ``For employees serving outside the United States 
        in areas where Sunday is a routine workday and another day of 
        the week is officially recognized as the day of rest and 
        worship, the Secretary of State may designate the officially 
        recognized day of rest and worship as the day with respect to 
        which the preceding sentence shall apply instead of Sunday.''.

SEC. 1323. AUTHORITY OF SECRETARY TO SEPARATE CONVICTED FELONS FROM 
              SERVICE.

    Section 610(a)(2) of the Foreign Service Act of 1980 (22 U.S.C. 
4010(a)(2)) is amended in the first sentence by striking ``A member'' 
and inserting ``Except in the case of an individual who has been 
convicted of a crime for which a sentence of imprisonment of more than 
1 year may be imposed, a member''.

SEC. 1324. CAREER COUNSELING.

    (a) In General.--Section 706(a) of the Foreign Service Act of 1980 
(22 U.S.C. 4026(a)) is amended by adding at the end the following 
sentence: ``Career counseling and related services provided pursuant to 
this Act shall not be construed to permit an assignment to training or 
to another assignment that consists primarily of paid time to conduct a 
job search and without other substantive duties, except that career 
members of the Service who upon their separation are not eligible to 
receive an immediate annuity and have not been assigned to a post in 
the United States during the 12 months prior to their separation from 
the Service may be permitted up to 2 months of paid time to conduct a 
job search.''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective 180 days after the date of the enactment of this Act.

SEC. 1325. REPORT CONCERNING MINORITIES AND THE FOREIGN SERVICE.

    The Secretary of State shall annually submit a report to the 
Congress concerning minorities and the Foreign Service officer corps. 
In addition to such other information as is relevant to this issue, the 
report shall include the following data (reported in terms of real 
numbers and percentages and not as ratios):
            (1) The numbers and percentages of all minorities taking 
        the written foreign service examination.
            (2) The numbers and percentages of all minorities 
        successfully completing and passing the written foreign service 
        examination.
            (3) The numbers and percentages of all minorities 
        successfully completing and passing the oral foreign service 
        examination.
            (4) The numbers and percentages of all minorities entering 
        the junior officers class of the Foreign Service.
            (5) The numbers and percentages of all minorities in the 
        Foreign Service officer corps.
            (6) The numbers and percentages of all minority Foreign 
        Service officers at each grade, particularly at the senior 
        levels in policy directive positions.
            (7) The numbers of and percentages of minorities promoted 
        at each grade of the Foreign Service officer corps.

SEC. 1326. RETIREMENT BENEFITS FOR INVOLUNTARY SEPARATION.

    (a) Benefits.--Section 609 of the Foreign Service Act of 1980 (22 
U.S.C. 4009) is amended--
            (1) in subsection (a)(2)(A) by inserting ``or any other 
        applicable provision of chapter 84 of title 5, United States 
        Code,'' after ``section 811,'';
            (2) in subsection (a) by inserting ``or section 855, as 
        appropriate'' after ``section 806''; and
            (3) in subsection (b)(2)--
                    (A) by inserting ``(A) for those participants in 
                the Foreign Service Retirement and Disability System,'' 
                before ``a refund''; and
                    (B) by inserting before the period at the end ``; 
                and (B) for those participants in the Foreign Service 
                Pension System, benefits as provided in section 851''.
            (4) in subsection (b) in the matter following paragraph (2) 
        by inserting ``(for participants in the Foreign Service 
        Retirement and Disability System) or age 62 (for participants 
        in the Foreign Service Pension System)'' after ``age 60''.
    (b) Entitlement to Annuity.--Section 855(b) of the Foreign Service 
Act of 1980 (22 U.S.C. 4071d(b)) is amended--
            (1) in paragraph (1) by inserting ``611,'' after ``608,'';
            (2) in paragraph (1) by inserting ``and for participants in 
        the Foreign Service Pension System'' after ``for participants 
        in the Foreign Service Retirement and Disability System''; and
            (3) in paragraph (3) by striking ``or 610'' and inserting 
        ``610, or 611''.
    (c) Effective Dates.--
    (1) Except as provided in paragraph (2), the amendments made by 
this section shall take effect on the date of the enactment of this 
Act.
    (2) The amendments made by paragraphs (2) and (3) of subsection (a) 
and paragraphs (1) and (3) of subsection (b) shall apply with respect 
to any actions taken under section 611 of the Foreign Service Act of 
1980 after January 1, 1996.

SEC. 1327. AVAILABILITY PAY FOR CERTAIN CRIMINAL INVESTIGATORS WITHIN 
              THE DIPLOMATIC SECURITY SERVICE.

    (a) In General.--Section 5545a of title 5, United States Code, is 
amended by adding at the end the following:
    ``(k)(1) For purposes of this section, the term `criminal 
investigator' includes an officer occupying a position under title II 
of Public Law 99-399 if--
            ``(A) subject to subparagraph (C), such officer meets the 
        definition of such term under paragraph (2) of subsection (a) 
        (applied disregarding the parenthetical matter before 
        subparagraph (A) thereof);
            ``(B) the primary duties of the position held by such 
        officer consist of performing--
                    ``(i) protective functions; or
                    ``(ii) criminal investigations; and
            ``(C) such officer satisfies the requirements of subsection 
        (d) without taking into account any hours described in 
        paragraph (2)(B) thereof.
    ``(2) In applying subsection (h) with respect to an officer under 
this subsection--
            ``(A) any reference in such subsection to `basic pay' shall 
        be considered to include amounts designated as `salary';
            ``(B) paragraph (2)(A) of such subsection shall be 
        considered to include (in addition to the provisions of law 
        specified therein) sections 609(b)(1), 805, 806, and 856 of the 
        Foreign Service Act of 1980; and
            ``(C) paragraph (2)(B) of such subsection shall be applied 
        by substituting for `Office of Personnel Management' the 
        following: `Office of Personnel Management or the Secretary of 
        State (to the extent that matters exclusively within the 
        jurisdiction of the Secretary are concerned)'.''.
    (b) Implementation.--Not later than the date on which the 
amendments made by this section take effect, each special agent of the 
Diplomatic Security Service who satisfies the requirements of 
subsection (k)(1) of section 5545a of title 5, United States Code, as 
amended by this section, and the appropriate supervisory officer, to be 
designated by the Secretary of State, shall make an initial 
certification to the Secretary of State that the special agent is 
expected to meet the requirements of subsection (d) of such section 
5545a. The Secretary of State may prescribe procedures necessary to 
administer this subsection.
    (c) Technical and Conforming Amendments.--(1) Paragraph (2) of 
section 5545a(a) of title 5, United States Code, is amended (in the 
matter before subparagraph (A)) by striking ``Public Law 99-399)'' and 
inserting ``Public Law 99-399, subject to subsection (k))''.
    (2) Section 5542(e) of such title is amended by striking ``title 
18, United States Code,'' and inserting ``title 18 or section 37(a)(3) 
of the State Department Basic Authorities Act of 1956,''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the first day of the first applicable pay period--
            (1) which begins on or after the 90th day following the 
        date of the enactment of this Act; and
            (2) on which date all regulations necessary to carry out 
        such amendments are (in the judgment of the Director of the 
        Office of Personnel Management and the Secretary of State) in 
        effect.

SEC. 1328. LABOR MANAGEMENT RELATIONS.

    Section 1017(e)(2) of the Foreign Service Act of 1980 (22 U.S.C. 
4117(e)(2)) is amended to read as follows:
    ``(2) For the purposes of paragraph (1)(A)(ii) and paragraph 
(1)(B), the term `management official' does not include chiefs of 
mission, principal officers or their deputies, administrative and 
personnel officers abroad, or individuals described in section 
1002(12)(B), (C), and (D) who are not involved in the administration of 
this chapter or in the formulation of the personnel policies and 
programs of the Department.''.

SEC. 1329. OFFICE OF THE INSPECTOR GENERAL.

    (a) Procedures.--Section 209(c) of the Foreign Service Act of 1980 
(22 U.S.C. 3929(c)) is amended by adding after paragraph (3) the 
following new paragraphs:
            ``(4) In the case of a formal interview where an employee 
        is the likely subject or target of an Inspector General 
        criminal investigation, the Inspector General shall make all 
        best efforts to provide the employee with notice of the full 
        range of his or her rights, including the right to retain 
        counsel and the right to remain silent, as well as the 
        identification of those attending the interview.
            ``(5) In carrying out the duties and responsibilities 
        established under this section, the Inspector General shall 
        develop and provide to employees--
                    ``(A) information detailing their rights to 
                counsel; and
                    ``(B) guidelines describing in general terms the 
                policies and procedures of the Office of Inspector 
                General with respect to individuals under 
                investigation, other than matters exempt from 
                disclosure under other provisions of law.''.
    (b) Report.--Not later than April 30, 1998, the Inspector General 
of the Department of State shall submit a report to the appropriate 
congressional committees which includes the following information:
            (1) Detailed descriptions of the internal guidance 
        developed or used by the Office of the Inspector General with 
        respect to public disclosure of any information related to an 
        ongoing investigation of any employee or official of the 
        Department of State, the United States Information Agency, or 
        the Arms Control and Disarmament Agency.
            (2) Detailed descriptions of those instances for the year 
        ending December 31, 1997, in which any disclosure of 
        information to the public by an employee of the Office of 
        Inspector General about an ongoing investigation occurred, 
        including details on the recipient of the information, the date 
        of the disclosure, and the internal clearance process for the 
        disclosure.

 TITLE XIV--UNITED STATES PUBLIC DIPLOMACY: AUTHORITIES AND ACTIVITIES 
  FOR UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL PROGRAMS

SEC. 1401. EXTENSION OF AU PAIR PROGRAMS.

    Section 1(b) of the Act entitled ``An Act to extend au pair 
programs.'' (Public Law 104-72; 109 Stat. 1065(b)) is amended by 
striking ``, through fiscal year 1997''.

SEC. 1402. RETENTION OF INTEREST.

    Notwithstanding any other provision of law, with the approval of 
the National Endowment for Democracy, grant funds made available by the 
National Endowment for Democracy may be deposited in interest-bearing 
accounts pending disbursement and any interest which accrues may be 
retained by the grantee without returning such interest to the Treasury 
of the United States and interest earned by be obligated and expended 
for the purposes for which the grant was made without further 
appropriation.

SEC. 1403. CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE BETWEEN NORTH 
              AND SOUTH.

    Section 208(e) of the Foreign Relations Authorization Act, Fiscal 
Years 1992 and 1993 (22 U.S.C. 2075(e)) is amended by striking 
``$10,000,000'' and inserting ``$4,000,000''.

SEC. 1404. USE OF SELECTED PROGRAM FEES.

    Section 810 of the United States Information and Educational 
Exchange Act of 1948 (22 U.S.C. 1475e) is amended by inserting 
``educational advising and counseling, exchange visitor program 
services, advertising sold by the Voice of America, receipts from 
cooperating international organizations and from the privatization of 
VOA Europe,'' after ``library services,''.

SEC. 1405. MUSKIE FELLOWSHIP PROGRAM.

    (a) Guidelines .--Section 227(c)(5) of the Foreign Relations 
Authorization Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2452 note) is 
amended--
            (1) in the first sentence by inserting ``journalism and 
        communications, education administration, public policy, 
        library and information science,'' after ``business 
        administration,''; and
            (2) in the second sentence by inserting ``journalism and 
        communications, education administration, public policy, 
        library and information science,'' after ``business 
        administration,''.
    (b) Redesignation of Soviet Union.--Section 227 of the Foreign 
Relations Authorization Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2452 
note) is amended--
            (1) by striking ``Soviet Union'' each place it appears and 
        inserting ``Independent States of the Former Soviet Union''; 
        and
            (2) in the section heading by inserting ``independent 
        states of the former'' after ``from the''.

SEC. 1406. WORKING GROUP ON UNITED STATES GOVERNMENT SPONSORED 
              INTERNATIONAL EXCHANGES AND TRAINING.

    Section 112 of the Mutual Educational and Cultural Exchange Act of 
1961 (22 U.S.C. 2460) is amended by adding at the end the following new 
subsection:
    ``(g) Working Group on United States Government Sponsored 
International Exchanges and Training.--(1) In order to carry out the 
purposes of subsection (f) and to improve the coordination, efficiency, 
and effectiveness of United States Government sponsored international 
exchanges and training, there is established within the United States 
Information Agency a senior-level interagency working group to be known 
as the Working Group on United States Government Sponsored 
International Exchanges and Training (hereinafter in this section 
referred to as `the Working Group').
    ``(2) For purposes of this subsection, the term `Government 
sponsored international exchanges and training' means the movement of 
people between countries to promote the sharing of ideas, to develop 
skills, and to foster mutual understanding and cooperation, financed 
wholly or in part, directly or indirectly, with United States 
Government funds.
    ``(3) The Working Group shall be composed as follows:
            ``(A) The Associate Director for Educational and Cultural 
        Affairs of the United States Information Agency, who shall act 
        as Chair.
            ``(B) A senior representative designated by the Secretary 
        of State.
            ``(C) A senior representative designated by the Secretary 
        of Defense.
            ``(D) A senior representative designated by the Secretary 
        of Education.
            ``(E) A senior representative designated by the Attorney 
        General.
            ``(F) A senior representative designated by the 
        Administrator of the Agency for International Development.
            ``(G) Senior representatives of other departments and 
        agencies as the Chair determines to be appropriate.
    ``(4) Representatives of the National Security Adviser and the 
Director of the Office of Management and Budget may participate in the 
Working Group at the discretion of the adviser and the director, 
respectively.
    ``(5) The Working Group shall be supported by an interagency staff 
office established in the Bureau of Educational and Cultural Affairs of 
the United States Information Agency.
    ``(6) The Working Group shall have the following purposes and 
responsibilities:
            ``(A) To collect, analyze, and report data provided by all 
        United States Government departments and agencies conducting 
        international exchanges and training programs.
            ``(B) To promote greater understanding and cooperation 
        among concerned United States Government departments and 
        agencies of common issues and challenges in conducting 
        international exchanges and training programs, including 
        through the establishment of a clearinghouse for information on 
        international exchange and training activities in the 
        governmental and nongovernmental sectors.
            ``(C) In order to achieve the most efficient and cost-
        effective use of Federal resources, to identify administrative 
        and programmatic duplication and overlap of activities by the 
        various United States Government departments and agencies 
        involved in Government sponsored international exchange and 
        training programs, to identify how each Government sponsored 
        international exchange and training program promotes United 
        States foreign policy, and to report thereon.
            ``(D) Not later than 1 year after the date of the enactment 
        of the Foreign Relations Authorization Act, Fiscal Years 1998 
        and 1999, to develop and thereafter assess, annually, a 
        coordinated and cost-effective strategy for all United States 
        Government sponsored international exchange and training 
        programs, and to issue a report on such strategy. This strategy 
        will include an action plan for consolidating United States 
        Government sponsored international exchange and training 
        programs with the objective of achieving a minimum 10 percent 
        cost saving through consolidation or the elimination of 
        duplication.
            ``(E) Not later than 2 years after the date of the 
        enactment of the Foreign Relations Authorization Act, Fiscal 
        Years 1998 and 1999, to develop recommendations on common 
        performance measures for all United States Government sponsored 
        international exchange and training programs, and to issue a 
        report.
            ``(F) To conduct a survey of private sector international 
        exchange activities and develop strategies for expanding public 
        and private partnerships in, and leveraging private sector 
        support for, United States Government sponsored international 
        exchange and training activities.
            ``(G) Not later than 6 months after the date of the 
        enactment of the Foreign Relations Authorization Act, Fiscal 
        Years 1998 and 1999, to report on the feasibility of 
        transferring funds and program management for the ATLAS and/or 
        the Mandela Fellows programs in South Africa from the Agency 
        for International Development to the United States Information 
        Agency. The report shall include an assessment of the 
        capabilities of the South African Fulbright Commission to 
        manage such programs and the cost advantages of consolidating 
        such programs under one entity.
    ``(7) All reports prepared by the Working Group shall be submitted 
to the President, through the Director of the United States Information 
Agency.
    ``(8) The Working Group shall meet at least on a quarterly basis.
    ``(9) All decisions of the Working Group shall be by majority vote 
of the members present and voting.
    ``(10) The members of the Working Group shall serve without 
additional compensation for their service on the Working Group. Any 
expenses incurred by a member of the Working Group in connection with 
service on the Working Group shall be compensated by that member's 
department or agency.
    ``(11) With respect to any report promulgated pursuant to paragraph 
(6), a member may submit dissenting views to be submitted as part of 
the report of the Working Group.''.

SEC. 1407. EDUCATIONAL AND CULTURAL EXCHANGES AND SCHOLARSHIPS FOR 
              TIBETANS AND BURMESE.

    (a) Establishment of Educational and Cultural Exchange for 
Tibetans.--The Director of the United States Information Agency shall 
establish programs of educational and cultural exchange between the 
United States and the people of Tibet. Such programs shall include 
opportunities for training and, as the Director considers appropriate, 
may include the assignment of personnel and resources abroad.
    (b) Scholarships for Tibetans and Burmese.--
            (1) In general.--For each of the fiscal years 1998 and 
        1999, at least 30 scholarships shall be made available to 
        Tibetan students and professionals who are outside Tibet, and 
        at least 15 scholarships shall be made available to Burmese 
        students and professionals who are outside Burma.
            (2) Waiver.--Paragraph (1) shall not apply to the extent 
        that the Director of the United States Information Agency 
        determines that there are not enough qualified students to 
        fulfill such allocation requirement.
            (3) Scholarship defined.--For the purposes of this section, 
        the term ``scholarship'' means an amount to be used for full or 
        partial support of tuition and fees to attend an educational 
        institution, and may include fees, books, and supplies, 
        equipment required for courses at an educational institution, 
        living expenses at a United States educational institution, and 
        travel expenses to and from, and within, the United States.

SEC. 1408. UNITED STATES--JAPAN COMMISSION.

    (a) Relief From Restriction of Interchangeability of Funds.--
            (1) Section 6(4) of the Japan-United States Friendship Act 
        (22 U.S.C. 2905(4)) is amended by striking ``needed, except'' 
        and all that follows through ``United States'' and inserting 
        ``needed''.
            (2) The second sentence of section 7(b) of the Japan-United 
        States Friendship Act (22 U.S.C. 2906(b)) is amended to read as 
        follows: ``Such investment may be made only in interest-bearing 
        obligations of the United States, in obligations guaranteed as 
        to both principal and interest by the United States, in 
        interest-bearing obligations of Japan, or in obligations 
        guaranteed as to both principal and interest by Japan.''.
    (b) Revision of Name of Commission.--
            (1) After the date of the enactment of this Act, the Japan-
        United States Friendship Commission shall be designated as the 
        ``United States-Japan Commission''. Any reference in any 
        provision of law, Executive order, regulation, delegation of 
        authority, or other document to the Japan-United States 
        Friendship Commission shall be considered to be a reference to 
        the United States-Japan Commission.
            (2) The heading of section 4 of the Japan-United States 
        Friendship Act (22 U.S.C. 2903) is amended to read as follows:

                  ``united states-japan commission''.

            (3) The Japan-United States Friendship Act is amended by 
        striking ``Japan-United States Friendship Commission'' each 
        place such term appears and inserting ``United States-Japan 
        Commission''.
    (c) Revision of Name of Trust Fund.--
            (1) After the date of the enactment of this Act, the Japan-
        United States Friendship Trust Fund shall be designated as the 
        ``United States-Japan Trust Fund''. Any reference in any 
        provision of law, Executive order, regulation, delegation of 
        authority, or other document to the Japan-United States 
        Friendship Trust Fund shall be considered to be a reference to 
        the United States-Japan Trust Fund.
            (2) Section 3(a) of the Japan-United States Friendship Act 
        (22 U.S.C. 2902(a)) is amended by striking ``Japan-United 
        States Friendship Trust Fund'' and inserting ``United States-
        Japan Trust Fund''.

SEC. 1409. SURROGATE BROADCASTING STUDIES.

    (a) Radio Free Africa.--Not later than 6 months after the date of 
the enactment of this Act, the United States Information Agency and the 
Board of Broadcasting Governors should conduct and complete a study of 
the appropriateness, feasibility, and projected costs of providing 
surrogate broadcasting service to Africa and transmit the results of 
the study to the appropriate congressional committees.
    (b) Radio Free Iran.--Not later than 6 months after the date of the 
enactment of this Act, the United States Information Agency and the 
Board of Broadcasting Governors should conduct and complete a study of 
the appropriateness, feasibility, and projected costs of a Radio Free 
Europe/Radio Liberty broadcasting service to Iran and transmit the 
results of the study to the appropriate congressional committees.

SEC. 1410. AUTHORITY TO ADMINISTER SUMMER TRAVEL/WORK PROGRAMS.

    The Director of the United States Information Agency is authorized 
to administer summer travel/work programs without regard to 
preplacement requirements.

SEC. 1411. PERMANENT ADMINISTRATIVE AUTHORITIES REGARDING 
              APPROPRIATIONS.

    Section 701(f) of the United States Information and Educational 
Exchange Act of 1948 (22 U.S.C. 1476(f)) is amended by striking 
paragraph (4).

SEC. 1412. AUTHORITIES OF THE BROADCASTING BOARD OF GOVERNORS.

    (a) Authorities.--Section 305(a)(1) of the United States 
International Broadcasting Act of 1994 (22 U.S.C. 6204(a)(1)) is 
amended by striking ``direct and''.
    (b) Director of the Bureau.--The first sentence of section 
307(b)(1) of the United States International Broadcasting Act of 1994 
(22 U.S.C. 6206(b)(1)) is amended to read as follows: ``The Director of 
the Bureau shall be appointed by the Board with the concurrence of the 
Director of the United States Information Agency.''.
    (c) Responsibilities of the Director.--Section 307 of the United 
States International Broadcasting Act of 1994 (22 U.S.C. 6206) is 
amended by adding at the end the following new subsection:
    ``(c) Responsibilities of the Director.--The Director shall 
organize and chair a coordinating committee to examine long-term 
strategies for the future of international broadcasting, including the 
use of new technologies, further consolidation of broadcast services, 
and consolidation of currently existing public affairs and legislative 
relations functions in the various international broadcasting entities. 
The coordinating committee shall include representatives of RFA, RFE/
RL, the Broadcasting Board of Governors, and, as appropriate, from the 
Office of Cuba Broadcasting, the Voice of America, and WorldNet.''.
    (d) Radio Broadcasting to Cuba.--Section 4 of the Radio 
Broadcasting to Cuba Act (22 U.S.C. 1465b) is amended by striking ``of 
the Voice of America'' and inserting ``of the International 
Broadcasting Bureau''.
    (e) Television Broadcasting to Cuba.--Section 244(a) of the 
Television Broadcasting to Cuba Act (22 U.S.C. 1465cc(a)) is amended in 
the third sentence by striking ``of the Voice of America'' and 
inserting ``of the International Broadcasting Bureau''.

   TITLE XV--INTERNATIONAL ORGANIZATIONS; UNITED NATIONS AND RELATED 
                                AGENCIES

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 1501. SERVICE IN INTERNATIONAL ORGANIZATIONS.

    (a) In General.--Section 3582(b) of title 5, United States Code, is 
amended by striking all after the first sentence and inserting the 
following: ``On reemployment, he is entitled to the rate of basic pay 
to which he would have been entitled had he remained in the civil 
service. On reemployment, the agency shall restore his sick leave 
account, by credit or charge, to its status at the time of transfer. 
The period of separation caused by his employment with the 
international organization and the period necessary to effect 
reemployment are deemed creditable service for all appropriate civil 
service employment purposes. This subsection does not apply to a 
congressional employee.''.
    (b) Application.--The amendment made by subsection (a) shall apply 
with respect transfers which take effect on or after the date of the 
enactment of this Act.

SEC. 1502. ORGANIZATION OF AMERICAN STATES.

    Taking into consideration the long-term commitment by the United 
States to the affairs of this hemisphere and the need to build further 
upon the linkages between the United States and its neighbors, it is 
the sense of the Congress that the Secretary of State should make every 
effort to pay the United States assessed funding levels for the 
Organization of American States, which is uniquely dependent on United 
States contributions and is continuing fundamental reforms in its 
structure and its agenda.

             CHAPTER 2--UNITED NATIONS AND RELATED AGENCIES

SEC. 1521. REFORM IN BUDGET DECISIONMAKING PROCEDURES OF THE UNITED 
              NATIONS AND ITS SPECIALIZED AGENCIES.

    (a) Assessed Contributions.--Of amounts authorized to be 
appropriated for ``Assessed Contributions to International 
Organizations'' by this Act, the President may withhold 20 percent of 
the funds appropriated for the United States assessed contribution to 
the United Nations or to any of its specialized agencies for any 
calendar year if the Secretary of State determines that the United 
Nations or any such agency has failed to implement or to continue to 
implement consensus-based decisionmaking procedures on budgetary 
matters which assure that sufficient attention is paid to the views of 
the United States and other member states that are the major financial 
contributors to such assessed budgets.
    (b) Notice to Congress.--The President shall notify the Congress 
when a decision is made to withhold any share of the United States 
assessed contribution to the United Nations or its specialized agencies 
pursuant to subsection (a) and shall notify the Congress when the 
decision is made to pay any previously withheld assessed contribution. 
A notification under this subsection shall include appropriate 
consultation between the President (or the President's representative) 
and the Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate.
    (c) Contributions for Prior Years.--Subject to the availability of 
appropriations, payment of assessed contributions for prior years may 
be made to the United Nations or any of its specialized agencies 
notwithstanding subsection (a) if such payment would further United 
States interests in that organization.
    (d) Report to Congress.--Not later than February 1 of each year, 
the President shall submit to the appropriate congressional committees 
a report concerning the amount of United States assessed contributions 
paid to the United Nations and each of its specialized agencies during 
the preceding calendar year.

SEC. 1522. REPORTS ON EFFORTS TO PROMOTE FULL EQUALITY AT THE UNITED 
              NATIONS FOR ISRAEL.

    (a) Congressional Statement.--It is the sense of the Congress that 
the United States must help promote an end to the persistent inequity 
experienced by Israel in the United Nations whereby Israel is the only 
longstanding member of the organization to be denied acceptance into 
any of the United Nation's regional blocs.
    (b) Reports to Congress.--Not later than 90 days after the date of 
the enactment of this Act and on a quarterly basis thereafter, the 
Secretary of State shall submit to the appropriate congressional 
committees a report which includes the following information (in 
classified or unclassified form as appropriate):
            (1) Actions taken by representatives of the United States 
        to encourage the nations of the Western Europe and Others Group 
        (WEOG) to accept Israel into their regional bloc.
            (2) Efforts undertaken by the Secretary General of the 
        United Nations to secure Israel's full and equal participation 
        in that body.
            (3) Specific responses received by the Secretary of State 
        from each of the nations of the Western Europe and Others Group 
        (WEOG) on their position concerning Israel's acceptance into 
        their organization.
            (4) Other measures being undertaken, and which will be 
        undertaken, to ensure and promote Israel's full and equal 
        participation in the United Nations.

SEC. 1523. UNITED NATIONS POPULATION FUND.

    (a) Limitation.--Subject to subsections (b), (c), and (d)(2), of 
the amounts made available for each of the fiscal years 1998 and 1999 
to carry out part I of the Foreign Assistance Act of 1961, not more 
than $25,000,000 shall be available for each such fiscal year for the 
United Nations Population Fund.
    (b) Prohibition on Use of Funds in China.--None of the funds made 
available under this section shall be made available for a country 
program in the People's Republic of China.
    (c) Conditions on Availability of Funds.--
            (1) Not more than one-half of the amount made available to 
        the United Nations Population Fund under this section may be 
        provided to the Fund before March 1 of the fiscal year for 
        which funds are made available.
            (2) Amounts made available for each of the fiscal years 
        1998 and 1999 under part I of the Foreign Assistance Act of 
        1961 for the United Nations Population Fund may not be made 
        available to the Fund unless--
                    (A) 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
                    (B) 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, 1998, and February 15, 
        1999, the Secretary of State shall submit a report to the 
        appropriate congressional committees indicating the amount of 
        funds that the United Nations Population Fund is budgeting for 
        the year in which the report is submitted for a country program 
        in the People's Republic of China.
            (2) If a report under paragraph (1) indicates that the 
        United Nations Population Fund plans to spend China country 
        program funds in the People's Republic of China in the year 
        covered by the report, then the amount of such funds that the 
        Fund plans to spend in the People's Republic of China shall be 
        deducted from the funds made available to the Fund after March 
        1 for obligation for the remainder of the fiscal year in which 
        the report is submitted.

SEC. 1524. CONTINUED EXTENSION OF PRIVILEGES, EXEMPTIONS, AND 
              IMMUNITIES OF THE INTERNATIONAL ORGANIZATIONS IMMUNITIES 
              ACT TO UNIDO.

    Section 12 of the International Organizations Immunities Act (22 
U.S.C. 288f-2) is amended by inserting ``and the United Nations 
Industrial Development Organization'' after ``International Labor 
Organization''.

             TITLE XVI--ARMS CONTROL AND DISARMAMENT AGENCY

SEC. 1601. COMPREHENSIVE COMPILATION OF ARMS CONTROL AND DISARMAMENT 
              STUDIES.

    Section 39 of the Arms Control and Disarmament Act (22 U.S.C. 2579) 
is repealed.

SEC. 1602. USE OF FUNDS.

    Section 48 of the Arms Control and Disarmament Act (22 U.S.C. 2588) 
is amended by striking ``section 11 of the Act of March 1, 1919 (44 
U.S.C. 111)'' and inserting ``any other Act''.

                 TITLE XVII--FOREIGN POLICY PROVISIONS

SEC. 1701. UNITED STATES POLICY REGARDING THE INVOLUNTARY RETURN OF 
              REFUGEES.

    (a) In General.--No funds authorized to be appropriated by this 
division shall be available to effect the involuntary return by the 
United States of any person to a country in which the person has a well 
founded fear of persecution on account of race, religion, nationality, 
membership in a particular social group, or political opinion, except 
on grounds recognized as precluding protection as a refugee under the 
United Nations Convention Relating to the Status of Refugees of July 
28, 1951, and the Protocol Relating to the Status of Refugees of 
January 31, 1967.
    (b) Migration and Refugee Assistance.--No funds authorized to be 
appropriated by section 1104 of this Act or by section 2(c) of the 
Migration and Refugee Assistance Act of 1962 (22 U.S.C. 2601(c)) shall 
be available to effect the involuntary return of any person to any 
country unless the Secretary of State first notifies the appropriate 
congressional committees, except that in the case of an emergency 
involving a threat to human life the Secretary of State shall notify 
the appropriate congressional committees as soon as practicable.
    (c) Involuntary Return Defined.--As used in this section, the term 
``to effect the involuntary return'' means to require, by means of 
physical force or circumstances amounting to a threat thereof, a person 
to return to a country against the person's will, regardless of whether 
the person is physically present in the United States and regardless of 
whether the United States acts directly or through an agent.

SEC. 1702. UNITED STATES POLICY WITH RESPECT TO THE INVOLUNTARY RETURN 
              OF PERSONS IN DANGER OF SUBJECTION TO TORTURE.

    (a) In General.--The United States shall not expel, extradite, or 
otherwise effect the involuntary return of any person to a country in 
which there are reasonable grounds for believing the person would be in 
danger of subjection to torture.
    (b) Definitions.--
            (1) In general.--Except as otherwise provided, terms used 
        in this section have the meanings given such terms under the 
        United Nations Convention Against Torture and Other Cruel, 
        Inhuman or Degrading Treatment or Punishment, subject to any 
        reservations, understandings, declarations, and provisos 
        contained in the United States resolution of advice and consent 
        to ratification to such convention.
            (2) Involuntary return.--As used in this section, the term 
        ``effect the involuntary return'' means to take action by which 
        it is reasonably foreseeable that a person will be required to 
        return to a country against the person's will, regardless of 
        whether such return is induced by physical force and regardless 
        of whether the person is physically present in the United 
        States.

SEC. 1703. REPORTS ON CLAIMS BY UNITED STATES FIRMS AGAINST THE 
              GOVERNMENT OF SAUDI ARABIA.

    (a) In General.--Within 60 days after the date of the enactment of 
this Act and every 120 days thereafter, the Secretary of State, in 
coordination with the Secretary of Defense and the Secretary of 
Commerce, shall report to the appropriate congressional committees on 
specific actions taken by the Department of State, the Department of 
Defense, and the Department of Commerce toward progress in resolving 
the commercial disputes between United States firms and the Government 
of Saudi Arabia that are described in the June 30, 1993, report by the 
Secretary of Defense pursuant to section 9140(c) of the Department of 
Defense Appropriations Act, 1993 (Public Law 102-396), including the 
additional claims noticed by the Department of Commerce on page 2 of 
that report.
    (b) Termination.--Subsection (a) shall cease to have effect when 
the Secretary of State, in coordination with the Secretary of Defense 
and the Secretary of Commerce, certifies in writing to the appropriate 
congressional committees that the commercial disputes referred to in 
subsection (a) have been resolved satisfactorily.

SEC. 1704. HUMAN RIGHTS REPORTS.

    Section 116(d) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151n) is amended--
            (1) by striking ``January 31'' and inserting ``February 
        25'';
            (2) redesignating paragraphs (3), (4), and (5) as 
        paragraphs (4), (5), and (6), respectively; and
            (3) by inserting after paragraph (2) the following new 
        paragraph (3):
            ``(3) the status of child labor practices in each country, 
        including--
                    ``(A) whether such country has adopted policies to 
                protect children from exploitation in the workplace, 
                including a prohibition of forced and bonded labor and 
                policies regarding acceptable working conditions; and
                    ``(B) the extent to which each country enforces 
                such policies, including the adequacy of resources and 
                oversight dedicated to such policies;''.

SEC. 1705. REPORTS ON DETERMINATIONS UNDER TITLE IV OF THE LIBERTAD 
              ACT.

    Section 401 of the Cuban Liberty and Democratic Solidarity 
(LIBERTAD) Act of 1996 (22 U.S.C. 6091) is amended by adding at the end 
the following:
    ``(e) Reports to Congress.--The Secretary of State shall, not later 
than 30 days after the date of the enactment of this subsection and 
every 3 months thereafter, submit to the Committee on International 
Relations of the House of Representatives and the Committee on Foreign 
Relations of the Senate a report on the implementation of this section. 
Each report shall include--
            ``(1) an unclassified list, by economic sector, of the 
        number of entities then under review pursuant to this section;
            ``(2) an unclassified list of all entities and a classified 
        list of all individuals that the Secretary of State has 
        determined to be subject to this section;
            ``(3) an unclassified list of all entities and a classified 
        list of all individuals that the Secretary of State has 
        determined are no longer subject to this section;
            ``(4) an explanation of the status of the review under way 
        for the cases referred to in paragraph (1); and
            ``(5) an unclassified explanation of each determination of 
        the Secretary of State under subsection (a) and each finding of 
        the Secretary under subsection (c)--
                    ``(A) since the date of the enactment of this Act, 
                in the case of the first report under this subsection; 
                and
                    ``(B) in the preceding 3-month period, in the case 
                of each subsequent report.''.

SEC. 1706. REPORTS AND POLICY CONCERNING DIPLOMATIC IMMUNITY.

    (a) Annual Report Concerning Diplomatic Immunity.--
            (1) Report to congress.--The Secretary of State shall 
        prepare and submit to the Congress, annually, a report 
        concerning diplomatic immunity entitled ``Report on Cases 
        Involving Diplomatic Immunity''.
            (2) Content of report.--In addition to such other 
        information as the Secretary of State may consider appropriate, 
        the report under paragraph (1) shall include the following:
                    (A) The number of persons residing in the United 
                States who enjoy full immunity from the criminal 
                jurisdiction of the United States under laws extending 
                diplomatic privileges and immunities.
                    (B) Each case involving an alien described in 
                subparagraph (A) in which the appropriate authorities 
                of a State, a political subdivision of a State, or the 
                United States reported to the Department of State that 
                the authority had reasonable cause to believe the alien 
                committed a serious criminal offense within the United 
                States.
                    (C) Each case in which the United States has 
                certified that a person enjoys full immunity from the 
                criminal jurisdiction of the United States under laws 
                extending diplomatic privileges and immunities.
                    (D) The number of United States citizens who are 
                residing in a receiving state and who enjoy full 
                immunity from the criminal jurisdiction of such state 
                under laws extending diplomatic privileges and 
                immunities.
                    (E) Each case involving a United States citizen 
                under subparagraph (D) in which the United States has 
                been requested by the government of a receiving state 
                to waive the immunity from criminal jurisdiction of the 
                United States citizen.
            (3) Serious criminal offense defined.--The term ``serious 
        criminal offense'' means--
                    (A) any felony under Federal, State, or local law;
                    (B) any Federal, State, or local offense punishable 
                by a term of imprisonment of more than 1 year ;
                    (C) any crime of violence as defined for purposes 
                of section 16 of title 18, United States Code; or
                    (D) driving under the influence of alcohol or drugs 
                or driving while intoxicated if the case involves 
                personal injury to another individual.
    (b) United States Policy Concerning Reform of Diplomatic 
Immunity.--It is the sense of the Congress that the Secretary of State 
should explore, in appropriate fora, whether states should enter into 
agreements and adopt legislation--
            (1) to provide jurisdiction in the sending state to 
        prosecute crimes committed in the receiving state by persons 
        entitled to immunity from criminal jurisdiction under laws 
        extending diplomatic privileges and immunities; and
            (2) to provide that where there is probable cause to 
        believe that an individual who is entitled to immunity from the 
        criminal jurisdiction of the receiving state under laws 
        extending diplomatic privileges and immunities committed a 
        serious crime, the sending state will waive such immunity or 
        the sending state will prosecute such individual.

SEC. 1707. CONGRESSIONAL STATEMENT WITH RESPECT TO EFFICIENCY IN THE 
              CONDUCT OF FOREIGN POLICY.

    It is the sense of the Congress that the Secretary, after 
consultation with the appropriate congressional committees, should 
submit a plan to the Congress to consolidate some or all of the 
functions currently performed by the Department of State, the agency 
for International Development, and the Arms Control and Disarmament 
Agency, in order to increase efficiency and accountability in the 
conduct of the foreign policy of the United States.

SEC. 1708. CONGRESSIONAL STATEMENT CONCERNING RADIO FREE EUROPE/RADIO 
              LIBERTY.

    It is the sense of the Congress that Radio Free Europe/Radio 
Liberty should continue surrogate broadcasting beyond the year 2000 to 
countries whose people do not yet fully enjoy freedom of expression. 
Recent events in Serbia, Belarus, and Slovakia, among other nations, 
demonstrate that even after the end of communist rule in such nations, 
tyranny under other names still threatens the freedom of their peoples, 
and hence the stability of Europe and the national security interest of 
the United States. The Broadcasting Board of Governors should therefore 
continue to allocate sufficient funds to Radio Free Europe/Radio 
Liberty to continue broadcasting at current levels to target countries 
and to increase these levels in response to renewed threats to freedom.

SEC. 1709. PROGRAMS OR PROJECTS OF THE INTERNATIONAL ATOMIC ENERGY 
              AGENCY IN CUBA.

    (a) Withholding of United States Proportional Share of 
Assistance.--
            (1) In general.--Section 307(c) of the Foreign Assistance 
        Act of 1961 (22 U.S.C. 2227(c)) is amended--
                    (A) by striking ``The limitations'' and inserting 
                ``(1) Subject to paragraph (2), the limitations''; and
                    (B) by adding at the end the following:
    ``(2)(A) Except as provided in subparagraph (B), with respect to 
funds authorized to be appropriated by this chapter and available for 
the International Atomic Energy Agency, the limitations of subsection 
(a) shall apply to programs or projects of such Agency in Cuba.
    ``(B)(i) Subparagraph (A) shall not apply with respect to programs 
or projects of the International Atomic Energy Agency that provide for 
the discontinuation, dismantling, or safety inspection of nuclear 
facilities or related materials, or for inspections and similar 
activities designed to prevent the development of nuclear weapons by a 
country described in subsection (a).
    ``(ii) Clause (i) shall not apply with respect to the Juragua 
Nuclear Power Plant near Cienfuegos, Cuba, or the Pedro Pi Nuclear 
Research Center unless Cuba--
            ``(I) ratifies the Treaty on the Non-Proliferation of 
        Nuclear Weapons (21 UST 483) or the Treaty for the Prohibition 
        of Nuclear Weapons in Latin America (commonly known as the 
        Treaty of Tlatelolco);
            ``(II) negotiates full-scope safeguards of the 
        International Atomic Energy Agency not later than two years 
        after ratification by Cuba of such Treaty; and
            ``(III) incorporates internationally accepted nuclear 
        safety standards.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on October 1, 1997, or the date of the 
        enactment of this Act, whichever occurs later.
    (b) Opposition to Certain Programs or Projects.--The Secretary of 
State shall direct the United States representative to the 
International Atomic Energy Agency to oppose the following:
            (1) Technical assistance programs or projects of the Agency 
        at the Juragua Nuclear Power Plant near Cienfuegos, Cuba, and 
        at the Pedro Pi Nuclear Research Center.
            (2) Any other program or project of the Agency in Cuba that 
        is, or could become, a threat to the security of the United 
        States.
    (c) Reporting Requirements.--
            (1) Request for iaea reports.--The Secretary of State shall 
        direct the United States representative to the International 
        Atomic Energy Agency to request the Director-General of the 
        Agency to submit to the United States all reports prepared with 
        respect to all programs or projects of the Agency that are of 
        concern to the United States, including the programs or 
        projects described in subsection (b).
            (2) Annual reports to the congress.--Not later than 180 
        days after the date of the enactment of this Act, and on an 
        annual basis thereafter, the Secretary of State, in 
        consultation with the United States representative to the 
        International Atomic Energy Agency, shall prepare and submit to 
        the Congress a report containing a description of all programs 
        or projects of the Agency in each country described in section 
        307(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2227(a)).

SEC. 1710. UNITED STATES POLICY WITH RESPECT TO JERUSALEM AS THE 
              CAPITAL OF ISRAEL.

    (a) Limitation.--Of the amounts authorized to be appropriated by 
section 1101(4) for ``Acquisition and Maintenance of Buildings Abroad'' 
$25,000,000 for the fiscal year 1998 and $75,000,000 for the fiscal 
year 1999 is authorized to be appropriated for the construction of a 
United States Embassy in Jerusalem, Israel.
    (b) Limitation on Use of Funds for Consulate in Jerusalem.--None of 
the funds authorized to be appropriated by this division may be 
expended for the operation of a United States consulate or diplomatic 
facility in Jerusalem unless such consulate or diplomatic facility is 
under the supervision of the United States Ambassador to Israel.
    (c) Limitation on Use of Funds for Publications.--None of the funds 
authorized to be appropriated by this division may be available for the 
publication of any official government document which lists countries 
and their capital cities unless the publication identifies Jerusalem as 
the capital of Israel.
    (d) Record of Place of Birth.--For purposes of the registration of 
birth, certification of nationality, or issuance of a passport of a 
United States citizen born in the city of Jerusalem, upon request, the 
Secretary of State shall permit the place of birth to be recorded as 
Jerusalem, Israel.

SEC. 1711. REPORT ON COMPLIANCE WITH THE HAGUE CONVENTION ON 
              INTERNATIONAL CHILD ABDUCTION.

    Beginning 6 months after the date of the enactment of this Act and 
every 12 months thereafter during the fiscal years 1998 and 1999, the 
Secretary shall provide to the appropriate congressional committees a 
report on the compliance with the provisions of the the Hague 
Convention on the Civil Aspects of International Child Abduction by the 
signatories to such convention. Each such report shall include the 
following information:
            (1) The number of applications for the return of children 
        submitted by United States citizens to the Central Authority 
        for the United States that remain unresolved more than 18 
        months after the date of filing.
            (2) A list of the countries to which children in unresolved 
        applications described in paragraph (1) are alleged to have 
        been abducted.
            (3) A list of the countries that have demonstrated a 
        pattern of noncompliance with the obligations of such 
        convention with respect to applications for the return of 
        children submitted by United States citizens to the Central 
        Authority for the United States.
            (4) Detailed information on each unresolved case described 
        in paragraph (1) and on actions taken by the Department of 
        State to resolve each such case.

SEC. 1712. SENSE OF CONGRESS RELATING TO RECOGNITION OF THE ECUMENICAL 
              PATRIARCHATE BY THE GOVERNMENT OF TURKEY.

    It is the sense of the Congress that the United States--
            (1) should recognize the Ecumenical Patriarchate and its 
        nonpolitical, religious mission;
            (2) should encourage the continued maintenance of the 
        institution's physical security needs, as provided for under 
        Turkish and international law; and
            (3) should use its good offices to encourage the reopening 
        of the Ecumenical Patriarchate's Halki Patriarchal School of 
        Theology.

SEC. 1713. RETURN OF HONG KONG TO PEOPLE'S REPUBLIC OF CHINA.

    It is the sense of the Congress that--
            (1) the return of Hong Kong to the People's Republic of 
        China should be carried out in a peaceful manner, with respect 
        for the rule of law and respect for human rights, freedom of 
        speech, freedom of the press, freedom of association, freedom 
        of movement; and
            (2) these basic freedoms are not incompatible with the rich 
        culture and history of the People's Republic of China.

SEC. 1714. DEVELOPMENT OF DEMOCRACY IN THE REPUBLIC OF SERBIA.

    (a) Findings.--The Congress finds the following:
            (1) The United States stands as a beacon of democracy and 
        freedom in the world.
            (2) A stable and democratic Republic of Serbia is important 
        to the interests of the United States, the international 
        community, and to peace in the Balkans.
            (3) Democratic forces in the Republic of Serbia are 
        beginning to emerge, notwithstanding the efforts of Europe's 
        longest-standing communist dictator, Slobodan Milosevic.
            (4) The Republic of Serbia completed municipal elections on 
        November 17, 1996.
            (5) In 14 of Serbia's 18 largest cities, and in a total of 
        42 major municipalities, candidates representing parties in 
        opposition to the Socialist Party of President Milosevic and 
        the Yugoslav United Left Party of his wife Mirjana Markovic won 
        a majority of the votes cast.
            (6) Socialist Party-controlled election commissions and 
        government authorities thwarted the people's will by annulling 
        free elections in the cities of Belgrade, Nis, Smederevska 
        Palanka, and several other cities where opposition party 
        candidates won fair elections.
            (7) Countries belonging to the Organization for Security 
        and Cooperation in Europe (OSCE) on January 3, 1997, called 
        upon President Milosevic and all the political forces in the 
        Republic of Serbia to honor the people's will and honor the 
        election results.
            (8) Hundreds of thousands of Serbs marched in the streets 
        of Belgrade on a daily basis from November 20, 1996, through 
        February 1997, demanding the implementation of the election 
        results and greater democracy in the country.
            (9) The partial reinstatement of opposition party victories 
        in January 1997 and the subsequent enactment by the Serbian 
        legislature of a special law implementing the results of all 
        the 1996 municipal elections does not atone for the Milosevic 
        regime's trampling of rule of law, orderly succession of power, 
        and freedom of speech and of assembly.
            (10) The Serbian authorities have sought to continue to 
        hinder the growth of a free and independent news media in the 
        Republic of Serbia, in particular the broadcast news media, and 
        harassed journalists performing their professional duties.
    (b) Sense of the Congress.--It is the sense of the Congress that--
            (1) the United States, the Organization for Security and 
        Cooperation in Europe (OSCE), and the international community 
        should continue to press the Government of the Republic of 
        Serbia to ensure the implementation of free, fair, and honest 
        presidential and parliamentary elections in 1997, and to fully 
        abide by their outcome;
            (2) the United States, the OSCE, the international 
        community, nongovernmental organizations, and the private 
        sector should continue to promote the building of democratic 
        institutions and civic society in the Republic of Serbia, help 
        strengthen the independent news media, and press for the 
        Government of the Republic of Serbia to respect the rule of 
        law; and
            (3) the normalization of relations between the Federal 
        Republic of Yugoslavia and the United States requires, among 
        other things, that President Milosevic and the leadership of 
        Serbia--
                    (A) ensure the implementation of free, fair, and 
                honest presidential and parliamentary elections in 
                1997;
                    (B) abide by the outcome of such elections; and
                    (C) promote the building of democratic 
                institutions, including strengthening the independent 
                news media and respecting the rule of law.

SEC. 1715. RELATIONS WITH VIETNAM.

    (a) Sense of Congress.--It is the sense of the Congress that--
            (1) the development of a cooperative bilateral relationship 
        between the United States and the Socialist Republic of Vietnam 
        should facilitate maximum progress toward resolving outstanding 
        POW/MIA issues, promote the protection of human rights 
        including universally recognized religious, political, and 
        other freedoms, contribute to regional stability, and encourage 
        continued development of mutually beneficial economic 
        relations;
            (2) the satisfactory resolution of United States concerns 
        with respect to outstanding POW/MIA, human rights, and refugee 
        issues is essential to the full normalization of relations 
        between the United States and Vietnam;
            (3) the United States should upgrade the priority afforded 
        to the ongoing bilateral human rights dialog between the United 
        States and Vietnam by requiring the Department of State to 
        schedule the next dialog with Vietnam, and all subsequent 
        dialogs, at a level no lower than that of Assistant Secretary 
        of State;
            (4) during any future negotiations regarding the provision 
        of Overseas Private Investment Corporation insurance to 
        American companies investing in Vietnam and the granting of 
        Generalized System of Preference status for Vietnam, the United 
        States Government should strictly hold the Government of 
        Vietnam to internationally recognized worker rights standards, 
        including the right of association, the right to organize and 
        bargain collectively, and the prohibition on the use of any 
        forced or compulsory labor; and
            (5) the Department of State should consult with other 
        governments to develop a coordinated multilateral strategy to 
        encourage Vietnam to invite the United Nations Special 
        Rapporteur on Religious Intolerance to visit Vietnam to carry 
        out inquiries and make recommendations.
    (b) Report to Congress.--In order to provide Congress with the 
necessary information by which to evaluate the relationship between the 
United States and Vietnam, the Secretary shall report to the 
appropriate congressional committees, not later than 90 days after the 
enactment of this Act and every 180 days thereafter during fiscal years 
1998 and 1999, on the extent to which--
            (1) the Government of the Socialist Republic of Vietnam is 
        cooperating with the United States in providing the fullest 
        possible accounting of all unresolved POW/MIA cases and the 
        recovery and repatriation of American remains;
            (2) the Government of the Socialist Republic of Vietnam has 
        made progress toward the release of all political and religious 
        prisoners, including but not limited to Catholic, Protestant, 
        and Buddhist clergy;
            (3) the Government of the Socialist Republic of Vietnam is 
        cooperating with requests by the United States to obtain full 
        and free access to persons of humanitarian interest to the 
        United States for interviews under the Orderly Departure (ODP) 
        and Resettlement Opportunities for Vietnamese Refugees (ROVR) 
        programs, and in providing exit visas for such persons;
            (4) the Government of the Socialist Republic of Vietnam has 
        taken vigorous action to end extortion, bribery, and other 
        corrupt practices in connection with such exit visas; and
            (5) the Government of the United States is making vigorous 
        efforts to interview and resettle former reeducation camp 
        victims, their immediate families including, but not limited 
        to, unmarried sons and daughters, former United States 
        Government employees, and other persons eligible for the ODP 
        program, and to give such persons the full benefit of all 
        applicable United States laws including, but not limited to, 
        sections 599D and 599E of the Foreign Operations, Export 
        Financing, and Related Programs Appropriations Act of 1990 
        (Public Law 101-167).

SEC. 1716. STATEMENT CONCERNING RETURN OF OR COMPENSATION FOR WRONGLY 
              CONFISCATED FOREIGN PROPERTIES.

    The Congress--
            (1) welcomes the efforts of many post-Communist countries 
        to address the complex and difficult question of the status of 
        plundered properties;
            (2) urges countries which have not already done so to 
        return plundered properties to their rightful owners or, as an 
        alternative, pay compensation, in accordance with principles of 
        justice and in a manner that is just, transparent, and fair;
            (3) calls for the urgent return of property formerly 
        belonging to Jewish communities as a means of redressing the 
        particularly compelling problems of aging and destitute 
        survivors of the Holocaust;
            (4) calls on the Czech Republic, Latvia, Lithuania, 
        Romania, Slovakia, and any other country with restrictions 
        which require those whose properties have been wrongly 
        plundered by Nazi or Communist regimes to reside in or have the 
        citizenship of the country from which they now seek restitution 
        or compensation to remove such restrictions from their 
        restitution or compensation laws;
            (5) calls upon foreign financial institutions, and the 
        states having legal authority over their operation, that 
        possess wrongfully and illegally obtained property confiscated 
        from Holocaust victims, from residents of former Warsaw Pact 
        states who were forbidden by Communist law from obtaining 
        restitution of such property, and from states that were 
        occupied by Nazi, Fascist, or Communist forces, to assist and 
        to cooperate fully with efforts to restore this property to its 
        rightful owners; and
            (6) urges post-Communist countries to pass and effectively 
        implement laws that provide for restitution of, or compensation 
        for, plundered property.

                       DIVISION C--FUNDING LEVELS

SEC. 2001. AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN PROGRAMS.

    Subject to section 634A of the Foreign Assistance Act of 1961, 
there are authorized to be appropriated to the President for fiscal 
year 1998, $116,878,000. Amounts made available pursuant to such 
authorization shall be transferred to and merged with funds made 
available to accounts authorized to be appropriated by this Act (and 
amendments made by this Act) that are below the President's fiscal year 
1998 request. Amounts transferred and merged under this subsection may 
not increase an appropriation account above the President's fiscal year 
1998 request.