[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1759 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1759

 To reform foreign assistance programs and to authorize appropriations 
for foreign assistance progams for fiscal years 1998 and 1999, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 3, 1997

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

_______________________________________________________________________

                                 A BILL


 
 To reform foreign assistance programs and to authorize appropriations 
for foreign assistance progams 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,

                      TITLE I--GENERAL PROVISIONS

SEC. 101. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Foreign Assistance 
Reform Act of 1997''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Short title and table of contents.
Sec. 102. Declaration of policy.
   TITLE II--CONSOLIDATION OF CERTAIN INTERNATIONAL AFFAIRS AGENCIES

                     Chapter 1--General Provisions

Sec. 201. Short title
Sec. 202. Definitions.
 Csubchapter a--abolition of united states international development y
 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.
            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.
                       TITLE VIII--FUNDING LEVELS

Sec. 801. Authorization of appropriations for certain programs.

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 Act and the amendments 
made by this Act 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.

                       TITLE VIII--FUNDING LEVELS

SEC. 801. 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.
                                 <all>