[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4569 Reported in House (RH)]





                                                 Union Calendar No. 414

105th CONGRESS

  2d Session

                               H. R. 4569

                          [Report No. 105-719]

_______________________________________________________________________

                                 A BILL

  Making appropriations for foreign operations, export financing, and 
related programs for the fiscal year ending September 30, 1999, and for 
                            other purposes.

_______________________________________________________________________

                           September 15, 1998

    Reported from the Committee on Appropriations; committed to the 
 Committee of the Whole House on the State of the Union and ordered to 
                               be printed





                                                 Union Calendar No. 414
105th CONGRESS
  2d Session
                                H. R. 4569

                          [Report No. 105-719]

  Making appropriations for foreign operations, export financing, and 
related programs for the fiscal year ending September 30, 1999, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 15, 1998

   Mr. Callahan,  from the Committee on Appropriations, reported the 
following bill; which was committed to the Committee of the Whole House 
          on the State of the Union and ordered to be printed

_______________________________________________________________________

                                 A BILL


 
  Making appropriations for foreign operations, export financing, and 
related programs for the fiscal year ending September 30, 1999, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the following sums 
are appropriated, out of any money in the Treasury not otherwise 
appropriated, for the fiscal year ending September 30, 1999, and for 
other purposes, namely:

               TITLE I--EXPORT AND INVESTMENT ASSISTANCE

                export-import bank of the united states

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

                         subsidy appropriation

    For the cost of direct loans, loan guarantees, insurance, and tied-
aid grants as authorized by section 10 of the Export-Import Bank Act of 
1945, as amended, $745,500,000 to remain available until September 30, 
2003: Provided, That such costs, including the cost of modifying such 
loans, shall be as defined in section 502 of the Congressional Budget 
Act of 1974: Provided further, That such sums shall remain available 
until 2014 for the disbursement of direct loans, loan guarantees, 
insurance and tied-aid grants obligated in fiscal years 1999 and 2000: 
Provided further, That none of the funds appropriated by this Act or 
any prior Act appropriating funds for foreign operations, export 
financing, or related programs for tied-aid credits or grants may be 
used for any other purpose except through the regular notification 
procedures of the Committees on Appropriations: Provided further, That 
funds appropriated by this paragraph are made available notwithstanding 
section 2(b)(2) of the Export-Import Bank Act of 1945, in connection 
with the purchase or lease of any product by any East European country, 
any Baltic State, or any agency or national thereof.

                        administrative expenses

    For administrative expenses to carry out the direct and guaranteed 
loan and insurance programs (to be computed on an accrual basis), 
including hire of passenger motor vehicles and services as authorized 
by 5 U.S.C. 3109, and not to exceed $20,000 for official reception and 
representation expenses for members of the Board of Directors, 
$50,277,000: Provided, That necessary expenses (including special 
services performed on a contract or fee basis, but not including other 
personal services) in connection with the collection of moneys owed the 
Export-Import Bank, repossession or sale of pledged collateral or other 
assets acquired by the Export-Import Bank in satisfaction of moneys 
owed the Export-Import Bank, or the investigation or appraisal of any 
property, or the evaluation of the legal or technical aspects of any 
transaction for which an application for a loan, guarantee or insurance 
commitment has been made, shall be considered nonadministrative 
expenses for the purposes of this heading.

                overseas private investment corporation

                           noncredit account

    The Overseas Private Investment Corporation is authorized to make, 
without regard to fiscal year limitations, as provided by 31 U.S.C. 
9104, such expenditures and commitments within the limits of funds 
available to it and in accordance with law as may be necessary: 
Provided, That the amount available for administrative expenses to 
carry out the credit and insurance programs (including an amount for 
official reception and representation expenses which shall not exceed 
$35,000) shall not exceed $33,000,000: Provided further, That project-
specific transaction costs, including direct and indirect costs 
incurred in claims settlements, and other direct costs associated with 
services provided to specific investors or potential investors pursuant 
to section 234 of the Foreign Assistance Act of 1961, shall not be 
considered administrative expenses for the purposes of this heading.

                            program account

    For the cost of direct and guaranteed loans, $50,000,000, as 
authorized by section 234 of the Foreign Assistance Act of 1961 to be 
derived by transfer from the Overseas Private Investment Corporation 
Noncredit Account: Provided, That such costs, including the cost of 
modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974: Provided further, That such sums 
shall be available for direct loan obligations and loan guaranty 
commitments incurred or made during fiscal years 1999 and 2000: 
Provided further, That such sums shall remain available through fiscal 
year 2007 for the disbursement of direct and guaranteed loans obligated 
in fiscal year 1999, and through fiscal year 2008 for the disbursement 
of direct and guaranteed loans obligated in fiscal year 2000: Provided 
further, That in addition, such sums as may be necessary for 
administrative expenses to carry out the credit program may be derived 
from amounts available for administrative expenses to carry out the 
credit and insurance programs in the Overseas Private Investment 
Corporation Noncredit Account and merged with said account.

                  Funds Appropriated to the President

                      trade and development agency

    For necessary expenses to carry out the provisions of section 661 
of the Foreign Assistance Act of 1961, $41,500,000, to remain available 
until September 30, 2000: Provided, That the Trade and Development 
Agency may receive reimbursements from corporations and other entities 
for the costs of grants for feasibility studies and other project 
planning services, to be deposited as an offsetting collection to this 
account and to be available for obligation until September 30, 2000, 
for necessary expenses under this paragraph: Provided further, That 
such reimbursements shall not cover, or be allocated against, direct or 
indirect administrative costs of the agency.

                TITLE II--BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

    For expenses necessary to enable the President to carry out the 
provisions of the Foreign Assistance Act of 1961, and for other 
purposes, to remain available until September 30, 1999, unless 
otherwise specified herein, as follows:

                  agency for international development

                child survival and disease programs fund

    For necessary expenses to carry out the provisions of chapters 1 
and 10 of part I of the Foreign Assistance Act of 1961, for child 
survival, basic education, assistance to combat tropical and other 
diseases, and related activities, in addition to funds otherwise 
available for such purposes, $650,000,000, to remain available until 
expended: Provided, That this amount shall be made available for such 
activities as: (1) immunization programs; (2) oral rehydration 
programs; (3) health and nutrition programs, and related education 
programs, which address the needs of mothers and children; (4) water 
and sanitation programs; (5) assistance for displaced and orphaned 
children; (6) programs for the prevention, treatment, and control of, 
and research on, tuberculosis, HIV/AIDS, polio, malaria and other 
diseases; and (7) up to $98,000,000 for basic education programs for 
children: Provided further, That none of the funds appropriated under 
this heading may be made available for nonproject assistance.

                         development assistance

                     (including transfer of funds)

    For necessary expenses to carry out the provisions of sections 103 
through 106 and chapter 10 of part I of the Foreign Assistance Act of 
1961, $1,174,000,000, to remain available until September 30, 2000: 
Provided, That none of the funds made available in this Act nor any 
unobligated balances from prior appropriations may be made available to 
any organization or program which, as determined by the President of 
the United States, supports or participates in the management of a 
program of coercive abortion or involuntary sterilization: Provided 
further, That none of the funds made available under this heading may 
be used to pay for the performance of abortion as a method of family 
planning or to motivate or coerce any person to practice abortions; and 
that in order to reduce reliance on abortion in developing nations, 
funds shall be available only to voluntary family planning projects 
which offer, either directly or through referral to, or information 
about access to, a broad range of family planning methods and services: 
Provided further, That in awarding grants for natural family planning 
under section 104 of the Foreign Assistance Act of 1961 no applicant 
shall be discriminated against because of such applicant's religious or 
conscientious commitment to offer only natural family planning; and, 
additionally, all such applicants shall comply with the requirements of 
the previous proviso: Provided further, That for purposes of this or 
any other Act authorizing or appropriating funds for foreign 
operations, export financing, and related programs, the term 
``motivate'', as it relates to family planning assistance, shall not be 
construed to prohibit the provision, consistent with local law, of 
information or counseling about all pregnancy options: Provided 
further, That nothing in this paragraph shall be construed to alter any 
existing statutory prohibitions against abortion under section 104 of 
the Foreign Assistance Act of 1961: Provided further, That, 
notwithstanding section 109 of the Foreign Assistance Act of 1961, of 
the funds appropriated under this heading in this Act, and of the 
unobligated balances of funds previously appropriated under this 
heading, not to exceed $2,500,000 may be transferred to ``International 
Organizations and Programs'' for a contribution to the International 
Fund for Agricultural Development (IFAD), and that any such transfer of 
funds shall be subject to the regular notification procedures of the 
Committees on Appropriations: Provided further, That none of the funds 
appropriated under this heading may be made available for any activity 
which is in contravention to the Convention on International Trade in 
Endangered Species of Flora and Fauna (CITES): Provided further, That 
none of the funds appropriated under this heading may be made available 
for assistance for the central Government of the Republic of South 
Africa, until the Secretary of State reports in writing to the 
appropriate committees of the Congress on the steps being taken by the 
United States Government to negotiate the repeal, suspension, or 
termination of section 15(c) of South Africa's Medicines and Related 
Substances Control Amendment Act No. 90 of 1997.

                  private and voluntary organizations

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

                   international disaster assistance

    For necessary expenses for international disaster relief, 
rehabilitation, and reconstruction assistance pursuant to section 491 
of the Foreign Assistance Act of 1961, as amended, $150,000,000, to 
remain available until expended.

         micro and small enterprise development program account

    For the cost of direct loans and loan guarantees, $1,500,000, as 
authorized by section 108 of the Foreign Assistance Act of 1961, as 
amended: Provided, That such costs shall be as defined in section 502 
of the Congressional Budget Act of 1974: Provided further, That 
guarantees of loans made under this heading in support of 
microenterprise activities may guarantee up to 70 percent of the 
principal amount of any such loans notwithstanding section 108 of the 
Foreign Assistance Act of 1961. In addition, for administrative 
expenses to carry out programs under this heading, $500,000, all of 
which may be transferred to and merged with the appropriation for 
Operating Expenses of the Agency for International Development: 
Provided further, That funds made available under this heading shall 
remain available until September 30, 2000.

             urban and environmental credit program account

    For administrative expenses to carry out guaranteed loan programs, 
$5,500,000, all of which may be transferred to and merged with the 
appropriation for Operating Expenses of the Agency for International 
Development.

     payment to the foreign service retirement and disability fund

    For payment to the ``Foreign Service Retirement and Disability 
Fund'', as authorized by the Foreign Service Act of 1980, $44,552,000.

     operating expenses of the agency for international development

    For necessary expenses to carry out the provisions of section 667, 
$460,000,000: Provided, That none of the funds appropriated by this Act 
for programs administered by the Agency for International Development 
may be used to finance printing costs of any report or study (except 
feasibility, design, or evaluation reports or studies) in excess of 
$25,000 without the approval of the Administrator of the Agency or the 
Administrator's designee.

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

    For necessary expenses to carry out the provisions of section 667, 
$31,500,000, to remain available until September 30, 2000, which sum 
shall be available for the Office of the Inspector General of the 
Agency for International Development.

                  Other Bilateral Economic Assistance

                         economic support fund

    For necessary expenses to carry out the provisions of chapter 4 of 
part II, $2,326,000,000, to remain available until September 30, 2000: 
Provided, That of the funds appropriated under this heading, not to 
exceed $1,080,000,000 shall be available only for Israel, which sum 
shall be available on a grant basis as a cash transfer and shall be 
disbursed within 30 days of enactment of this Act or by October 31, 
1998, whichever is later: Provided further, That not to exceed 
$775,000,000 shall be available only for Egypt, which sum shall be 
provided on a grant basis, and of which sum cash transfer assistance 
may be provided, with the understanding that Egypt will undertake 
significant economic reforms which are additional to those which were 
undertaken in previous fiscal years: Provided further, That in 
exercising the authority to provide cash transfer assistance for 
Israel, the President shall ensure that the level of such assistance 
does not cause an adverse impact on the total level of nonmilitary 
exports from the United States to such country.

                     international fund for ireland

    For necessary expenses to carry out the provisions of chapter 4 of 
part II of the Foreign Assistance Act of 1961, $19,600,000, which shall 
be available for the United States contribution to the International 
Fund for Ireland and shall be made available in accordance with the 
provisions of the Anglo-Irish Agreement Support Act of 1986 (Public Law 
99-415): Provided, That such amount shall be expended at the minimum 
rate necessary to make timely payment for projects and activities: 
Provided further, That funds made available under this heading shall 
remain available until September 30, 2000.

          assistance for eastern europe and the baltic states

    (a) For necessary expenses to carry out the provisions of the 
Foreign Assistance Act of 1961 and the Support for East European 
Democracy (SEED) Act of 1989, $450,000,000, to remain available until 
September 30, 2000, which shall be available, notwithstanding any other 
provision of law, for economic assistance and for related programs for 
Eastern Europe and the Baltic States.
    (b) Funds appropriated under this heading shall be considered to be 
economic assistance under the Foreign Assistance Act of 1961 for 
purposes of making available the administrative authorities contained 
in that Act for the use of economic assistance.
    (c) None of the funds appropriated under this heading may be made 
available for new housing construction or repair or reconstruction of 
existing housing in Bosnia and Herzegovina unless directly related to 
the efforts of United States troops to promote peace in said country.
    (d) With regard to funds appropriated under this heading for the 
economic revitalization program in Bosnia and Herzegovina, and local 
currencies generated by such funds (including the conversion of funds 
appropriated under this heading into currency used by Bosnia and 
Herzegovina as local currency and local currency returned or repaid 
under such program)--
            (1) the Administrator of the Agency for International 
        Development shall provide written approval for grants and loans 
        prior to the obligation and expenditure of funds for such 
        purposes, and prior to the use of funds that have been returned 
        or repaid to any lending facility or grantee; and
            (2) the provisions of section 532 of this Act shall apply.
    (e) The President is authorized to withhold funds appropriated 
under this heading made available for economic revitalization programs 
in Bosnia and Herzegovina, if he determines and certifies to the 
Committees on Appropriations that the Federation of Bosnia and 
Herzegovina has not complied with article III of annex 1-A of the 
General Framework Agreement for Peace in Bosnia and Herzegovina 
concerning the withdrawal of foreign forces, and that intelligence 
cooperation on training, investigations, and related activities between 
Iranian officials and Bosnian officials has not been terminated.
    (f) Not to exceed $225,000,000 of the funds appropriated under this 
heading may be made available for Bosnia and Herzegovina.
    (g) Funds appropriated under this heading or in prior 
appropriations Acts that are or have been made available for an 
Enterprise Fund may be deposited by such Fund in interest-bearing 
accounts prior to the Fund's disbursement of such funds for program 
purposes. The Fund may retain for such program purposes any interest 
earned on such deposits without returning such interest to the Treasury 
of the United States and without further appropriation by the Congress. 
Funds made available for Enterprise Funds shall be expended at the 
minimum rate necessary to make timely payment for projects and 
activities.

  assistance for the new independent states of the former soviet union

    (a) For necessary expenses to carry out the provisions of chapter 
11 of part I of the Foreign Assistance Act of 1961 and the FREEDOM 
Support Act, for assistance for the new independent states of the 
former Soviet Union and for related programs, $590,000,000, to remain 
available until September 30, 2000: Provided, That the provisions of 
such chapter shall apply to funds appropriated by this paragraph.
    (b) Funds appropriated under title II of this Act, including funds 
appropriated under this heading, should be made available for 
assistance for Mongolia at a level which is at least equivalent to the 
level provided in fiscal year 1998: Provided, That funds made available 
for assistance for Mongolia may be made available in accordance with 
the purposes and utilizing the authorities provided in chapter 11 of 
part I of the Foreign Assistance Act of 1961.
    (c)(1) Of the funds appropriated under this heading that are 
allocated for assistance for the Government of Russia, 50 percent shall 
be withheld from obligation until the President determines and 
certifies in writing to the Committees on Appropriations that the 
Government of Russia has terminated implementation of arrangements to 
provide Iran with technical expertise, training, technology, or 
equipment necessary to develop a nuclear reactor, related nuclear 
research facilities or programs, or ballistic missile capability.
    (2) Notwithstanding paragraph (1) assistance may be provided for 
the Government of Russia if the President determines and certifies to 
the Committees on Appropriations that making such funds available: (A) 
is vital to the national security interest of the United States; and 
(B) that the Government of Russia is taking meaningful steps to limit 
major supply contracts and to curtail the transfer of technology and 
technological expertise related to activities referred to in paragraph 
(1).
    (d) Not more than 25 percent of the funds appropriated under this 
heading may be made available for assistance for any country in the 
region.
    (e) Of the funds appropriated under this heading, not less than 33 
percent shall be made available for assistance for the Southern 
Caucasus region: Provided, That of the funds made available for the 
Southern Caucasus region, 40 percent should be used for reconstruction 
and other activities relating to the peaceful resolution of conflicts 
within the region, especially those in the vicinity of Abkhazia and 
Nagorno-Karabakh: Provided further, That funds made available to 
parties participating in the Minsk Process under the first proviso of 
this subsection shall be provided only to those parties which agree to 
participate in direct or proximity negotiations without preconditions 
to resolve conflicts in the region: Provided further, That if the 
Secretary of State after May 30, 1999, determines and reports to the 
relevant committees of Congress that the full amount of funds that may 
be made available under the first proviso cannot be effectively 
utilized, the amount provided under the previous proviso may be used 
for other purposes under this heading.
    (f) Funds provided under the previous subsection shall be made 
available for humanitarian assistance for refugees, displaced persons, 
and needy civilians affected by the conflicts in the Southern Caucasus 
region, including those in Abkhazia and Nagorno-Karabakh, 
notwithstanding any other provision of this or any other Act.
    (g) Section 907 of the FREEDOM Support Act shall not apply to--
            (1) activities to support democracy or assistance under 
        title V of the FREEDOM Support Act and section 1424 of Public 
        Law 104-201;
            (2) any assistance provided by the Trade and Development 
        Agency under section 661 of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2421); and
            (3) any activity carried out by a member of the United 
        States and Foreign Commercial Service while acting within his 
        or her official capacity.
    (h) Funds appropriated under this heading or in prior 
appropriations Acts that are or have been made available for an 
Enterprise Fund may be deposited by such Fund in interest-bearing 
accounts prior to the Fund's disbursement of such funds for program 
purposes. The Fund may retain for such program purposes any interest 
earned on such deposits without returning such interest to the Treasury 
of the United States and without further appropriation by the Congress. 
Funds made available for Enterprise Funds shall be expended at the 
minimum rate necessary to make timely payment for projects and 
activities.

                          Independent Agencies

                       Inter-American Foundation

    For expenses necessary to carry out the functions of the Inter-
American Foundation in accordance with the provisions of section 401 of 
the Foreign Assistance Act of 1969, and to make commitments without 
regard to fiscal year limitations, as provided by 31 U.S.C. 9104(b)(3), 
$20,680,000.

                     African Development Foundation

    For expenses necessary to carry out title V of the International 
Security and Development Cooperation Act of 1980, Public Law 96-533, 
and to make commitments without regard to fiscal year limitations (31 
U.S.C. 9104(b)(3)), $13,160,000: Provided, That funds made available to 
grantees may be invested pending expenditure for project purposes when 
authorized by the President of the Foundation: Provided further, That 
interest earned shall be used only for the purposes for which the grant 
was made: Provided further, That this authority applies to interest 
earned both prior to and following enactment of this provision: 
Provided further, That notwithstanding section 505(a)(2) of the African 
Development Foundation Act, in exceptional circumstances the board of 
directors of the Foundation may waive the $250,000 limitation contained 
in that section with respect to a project: Provided further, That the 
Foundation shall provide a report to the Committees on Appropriations 
after each time such waiver authority is exercised.

                              peace corps

    For expenses necessary to carry out the provisions of the Peace 
Corps Act (75 Stat. 612), $230,000,000, including the purchase of not 
to exceed five passenger motor vehicles for administrative purposes for 
use outside of the United States: Provided, That none of the funds 
appropriated under this heading shall be used to pay for abortions: 
Provided further, That funds appropriated under this heading shall 
remain available until September 30, 2000.

                          Department of State

                    international narcotics control

    For necessary expenses to carry out section 481 of the Foreign 
Assistance Act of 1961, $275,000,000: Provided, That during fiscal year 
1999, the Department of State may also use the authority of section 608 
of the Act, without regard to its restrictions, to receive excess 
property from an agency of the United States Government for the purpose 
of providing it to a foreign country under chapter 8 of part I of that 
Act subject to the regular notification procedures of the Committees on 
Appropriations.

                    migration and refugee assistance

    For expenses, not otherwise provided for, necessary to enable the 
Secretary of State to provide, as authorized by law, a contribution to 
the International Committee of the Red Cross, assistance to refugees, 
including contributions to the International Organization for Migration 
and the United Nations High Commissioner for Refugees, and other 
activities to meet refugee and migration needs; salaries and expenses 
of personnel and dependents as authorized by the Foreign Service Act of 
1980; allowances as authorized by sections 5921 through 5925 of title 
5, United States Code; purchase and hire of passenger motor vehicles; 
and services as authorized by section 3109 of title 5, United States 
Code, $640,000,000: Provided, That not more than $12,000,000 shall be 
available for administrative expenses.

     united states emergency refugee and migration assistance fund

    For necessary expenses to carry out the provisions of section 2(c) 
of the Migration and Refugee Assistance Act of 1962, as amended (22 
U.S.C. 260(c)), $30,000,000, to remain available until expended: 
Provided, That the funds made available under this heading are 
appropriated notwithstanding the provisions contained in section 
2(c)(2) of the Migration and Refugee Assistance Act of 1962 which would 
limit the amount of funds which could be appropriated for this purpose.

    nonproliferation, anti-terrorism, demining and related programs

    For necessary expenses for nonproliferation, anti-terrorism and 
related programs and activities, $152,000,000, to carry out the 
provisions of chapter 8 of part II of the Foreign Assistance Act of 
1961 for anti-terrorism assistance, section 504 of the FREEDOM Support 
Act for the Nonproliferation and Disarmament Fund, section 23 of the 
Arms Export Control Act or the Foreign Assistance Act of 1961 for 
demining, the clearance of unexploded ordnance, and related activities, 
notwithstanding any other provision of law, including activities 
implemented through nongovernmental and international organizations, 
section 301 of the Foreign Assistance Act of 1961 for a voluntary 
contribution to the International Atomic Energy Agency (IAEA), and for 
a United States contribution to the Comprehensive Nuclear Test Ban 
Treaty Preparatory Commission: Provided, That of this amount not to 
exceed $15,000,000, to remain available until expended, may be made 
available for the Nonproliferation and Disarmament Fund, 
notwithstanding any other provision of law, to promote bilateral and 
multilateral activities relating to nonproliferation and disarmament: 
Provided further, That such funds may also be used for such countries 
other than the new independent states of the former Soviet Union and 
international organizations when it is in the national security 
interest of the United States to do so: Provided further, That such 
funds shall be subject to the regular notification procedures of the 
Committees on Appropriations: Provided further, That funds appropriated 
under this heading may be made available for the International Atomic 
Energy Agency only if the Secretary of State determines (and so reports 
to the Congress) that Israel is not being denied its right to 
participate in the activities of that Agency: Provided further, That 
the Secretary of State shall submit to the appropriate congressional 
committees an annual report (to be submitted with the annual 
presentation for appropriations) providing a full and detailed 
accounting of the fiscal year request for the United States 
contribution to KEDO, the expected operating budget of KEDO, to include 
unpaid debt, proposed annual costs associated with heavy fuel oil 
purchases, and the amount of funds pledged by other donor nations and 
organizations to support KEDO activities on a per country basis, and 
other related activities.

                       Department of the Treasury

                           debt restructuring

    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of modifying direct loans and loan guarantees, as the 
President may determine, for which funds have been appropriated or 
otherwise made available for programs within the International Affairs 
Budget Function 150, including the cost of selling, reducing, or 
canceling amounts, through debt buybacks and swaps, owed to the United 
States as a result of concessional loans made to eligible Latin 
American and Caribbean countries, pursuant to part IV of the Foreign 
Assistance Act of 1961; of modifying concessional credit agreements 
with least developed countries, as authorized under section 411 of the 
Agricultural Trade Development and Assistance Act of 1954, as amended, 
and concessional loans, guarantees and credit agreements with any 
country in sub-Saharan Africa, as authorized under section 572 of the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1989 (Public Law 100-461); and of modifying any 
obligation, or portion of such obligation for Latin American countries 
to pay for purchases of United States agricultural commodities 
guaranteed by the Commodity Credit Corporation under export credit 
guarantee programs authorized pursuant to section 5(f) of the Commodity 
Credit Corporation Charter Act of June 29, 1948, as amended, section 
4(b) of the Food for Peace Act of 1966, as amended (Public Law 89-808), 
or section 202 of the Agricultural Trade Act of 1978, as amended 
(Public Law 95-501); $36,000,000, to remain available until expended: 
Provided, That not to exceed $2,900,000 of such funds may be used for 
implementation of improvements in the foreign credit reporting system 
of the United States Government: Provided further, That the authority 
provided by section 572 of Public Law 100-461 may be exercised only 
with respect to countries that are eligible to borrow from the 
International Development Association, but not from the International 
Bank for Reconstruction and Development, commonly referred to as ``IDA-
only'' countries.

                     TITLE III--MILITARY ASSISTANCE

                  Funds Appropriated to the President

             international military education and training

    For necessary expenses to carry out the provisions of section 541 
of the Foreign Assistance Act of 1961, $50,000,000 of which up to 
$1,000,000 may remain available until expended: Provided, That the 
civilian personnel for whom military education and training may be 
provided under this heading may include civilians who are not members 
of a government whose participation would contribute to improved civil-
military relations, civilian control of the military, or respect for 
human rights: Provided further, That funds appropriated under this 
heading for grant financed military education and training for 
Indonesia and Guatemala may only be available for expanded 
international military education and training and funds made available 
for Guatemala may only be provided through the regular notification 
procedures of the Committees on Appropriations: Provided further, That 
none of the funds appropriated under this heading may be made available 
to support grant financed military education and training at the School 
of the Americas unless the Secretary of Defense certifies that the 
instruction and training provided by the School of the Americas is 
fully consistent with training and doctrine, particularly with respect 
to the observance of human rights, provided by the Department of 
Defense to United States military students at Department of Defense 
institutions whose primary purpose is to train United States military 
personnel: Provided further, That the Secretary of Defense shall submit 
to the Committees on Appropriations, no later than January 15, 1999, a 
report detailing the training activities of the School of the Americas 
and a general assessment regarding the performance of its graduates 
during 1997.

                   foreign military financing program

    For expenses necessary for grants to enable the President to carry 
out the provisions of section 23 of the Arms Export Control Act, 
$3,335,910,000: Provided, That of the funds appropriated under this 
heading, not to exceed $1,860,000,000 shall be available for grants 
only for Israel, and not to exceed $1,300,000,000 shall be made 
available for grants only for Egypt: Provided further, That the funds 
appropriated by this paragraph for Israel shall be disbursed within 30 
days of enactment of this Act or by October 31, 1998, whichever is 
later: Provided further, That to the extent that the Government of 
Israel requests that funds be used for such purposes, grants made 
available for Israel by this paragraph shall, as agreed by Israel and 
the United States, be available for advanced weapons systems, of which 
not less than $490,000,000 shall be available for the procurement in 
Israel of defense articles and defense services, including research and 
development: Provided further, That during fiscal year 1999 the 
President is authorized to, and shall, direct drawdowns of defense 
articles from the stocks of the Department of Defense, defense services 
of the Department of Defense, and military education and training of an 
aggregate value of not less than $25,000,000 under the authority of 
this proviso for Jordan for the purposes of part II of the Foreign 
Assistance Act of 1961: Provided further, That section 506(c) of the 
Foreign Assistance Act of 1961 shall apply, and section 632(d) of the 
Foreign Assistance Act of 1961 shall not apply, to any such drawdown: 
Provided further, That none of the funds made available under this 
heading shall be available for any non-NATO country participating in 
the Partnership for Peace Program except through the regular 
notification procedures of the Committees on Appropriations: Provided 
further, That funds appropriated by this paragraph shall be 
nonrepayable notwithstanding any requirement in section 23 of the Arms 
Export Control Act: Provided further, That funds made available under 
this heading shall be obligated upon apportionment in accordance with 
paragraph (5)(C) of title 31, United States Code, section 1501(a).
    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of direct loans authorized by section 23 of the Arms 
Export Control Act as follows: cost of direct loans, $20,000,000: 
Provided, That these funds are available to subsidize gross obligations 
for the principal amount of direct loans of not to exceed $167,000,000.
    None of the funds made available under this heading shall be 
available to finance the procurement of defense articles, defense 
services, or design and construction services that are not sold by the 
United States Government under the Arms Export Control Act unless the 
foreign country proposing to make such procurements has first signed an 
agreement with the United States Government specifying the conditions 
under which such procurements may be financed with such funds: 
Provided, That all country and funding level increases in allocations 
shall be submitted through the regular notification procedures of 
section 515 of this Act: Provided further, That none of the funds 
appropriated under this heading shall be available for Sudan and 
Liberia: Provided further, That funds made available under this heading 
may be used, notwithstanding any other provision of law, for demining, 
the clearance of unexploded ordnance, and related activities and may 
include activities implemented through nongovernmental and 
international organizations: Provided further, That only those 
countries for which assistance was justified for the ``Foreign Military 
Sales Financing Program'' in the fiscal year 1989 congressional 
presentation for security assistance programs may utilize funds made 
available under this heading for procurement of defense articles, 
defense services or design and construction services that are not sold 
by the United States Government under the Arms Export Control Act: 
Provided further, That, subject to the regular notification procedures 
of the Committees on Appropriations, funds made available under this 
heading for the cost of direct loans may also be used to supplement the 
funds available under this heading for grants, and funds made available 
under this heading for grants may also be used to supplement the funds 
available under this heading for the cost of direct loans: Provided 
further, That funds appropriated under this heading shall be expended 
at the minimum rate necessary to make timely payment for defense 
articles and services: Provided further, That not more than $29,910,000 
of the funds appropriated under this heading may be obligated for 
necessary expenses, including the purchase of passenger motor vehicles 
for replacement only for use outside of the United States, for the 
general costs of administering military assistance and sales: Provided 
further, That none of the funds under this heading shall be available 
for Guatemala: Provided further, That not more than $340,000,000 of 
funds realized pursuant to section 21(e)(1)(A) of the Arms Export 
Control Act may be obligated for expenses incurred by the Department of 
Defense during fiscal year 1999 pursuant to section 43(b) of the Arms 
Export Control Act, except that this limitation may be exceeded only 
through the regular notification procedures of the Committees on 
Appropriations.

                        peacekeeping operations

    For necessary expenses to carry out the provisions of section 551 
of the Foreign Assistance Act of 1961, $62,250,000: Provided, That none 
of the funds appropriated under this heading shall be obligated or 
expended except as provided through the regular notification procedures 
of the Committees on Appropriations.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

                  international financial institutions

     contribution to the international bank for reconstruction and 
                              development

    For payment to the International Bank for Reconstruction and 
Development by the Secretary of the Treasury, for the United States 
contribution to the Global Environment Facility (GEF), $42,500,000, to 
remain available until September 30, 2000, which shall be available for 
contributions previously due.

       contribution to the international development association

    For payment to the International Development Association by the 
Secretary of the Treasury, $800,000,000, to remain available until 
expended.

          contribution to the inter-american development bank

    For payment to the Inter-American Development Bank by the Secretary 
of the Treasury, for the United States share of the paid-in share 
portion of the increase in capital stock, $25,610,667, and for the 
United States share of the increase in the resources of the Fund for 
Special Operations, $21,152,000, to remain available until expended, 
which shall be available for contributions previously due.

              limitation on callable capital subscriptions

    The United States Governor of the Inter-American Development Bank 
may subscribe without fiscal year limitation to the callable capital 
portion of the United States share of such capital stock in an amount 
not to exceed $1,503,718,910.

contribution to the enterprise for the americas multilateral investment 
                                  fund

    For payment to the Enterprise for the Americas Multilateral 
Investment Fund by the Secretary of the Treasury, for the United States 
contribution to the Fund to be administered by the Inter-American 
Development Bank, $50,000,000 to remain available until expended, which 
shall be available for contributions previously due.

               contribution to the asian development bank

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

              limitation on callable capital subscriptions

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

               contribution to the asian development fund

    For the United States contribution by the Secretary of the Treasury 
to the increases in resources of the Asian Development Fund, as 
authorized by the Asian Development Bank Act, as amended (Public Law 
89-369), $210,000,000, to remain available until expended, of which 
$150,000,000 shall be available for contributions previously due.

              contribution to the african development fund

    For the United States contribution by the Secretary of the Treasury 
to the increase in resources of the African Development Fund, 
$128,000,000, to remain available until expended, of which $88,300,000 
shall be available for contributions previously due.

  contribution to the european bank for reconstruction and development

    For payment to the European Bank for Reconstruction and Development 
by the Secretary of the Treasury, $35,778,717, for the United States 
share of the paid-in portion of the increase in capital stock, to 
remain available until expended.

              limitation on callable capital subscriptions

    The United States Governor of the European Bank for Reconstruction 
and Development may subscribe without fiscal year limitation to the 
callable capital portion of the United States share of such capital 
stock in an amount not to exceed $123,237,803.

                international organizations and programs

    For necessary expenses to carry out the provisions of section 301 
of the Foreign Assistance Act of 1961, and of section 2 of the United 
Nations Environment Program Participation Act of 1973, $157,250,000: 
Provided, That none of the funds appropriated under this heading may be 
made available for the United Nations Fund for Science and Technology: 
Provided further, That none of the funds appropriated under this 
heading may be made available for the United Nations Population Fund 
(UNFPA): Provided further, That none of the funds appropriated under 
this heading may be made available for the Korean Peninsula Energy 
Development Organization (KEDO) or the International Atomic Energy 
Agency (IAEA).

                      TITLE V--GENERAL PROVISIONS

             obligations during last month of availability

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

     prohibition of bilateral funding for international financial 
                              institutions

    Sec. 502. Notwithstanding section 614 of the Foreign Assistance Act 
of 1961, as amended, none of the funds contained in title II of this 
Act may be used to carry out the provisions of section 209(d) of the 
Foreign Assistance Act of 1961.

                    limitation on residence expenses

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

                         limitation on expenses

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

               limitation on representational allowances

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

                 prohibition on financing nuclear goods

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

        prohibition against direct funding for certain countries

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

                             military coups

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

                       transfers between accounts

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

                  deobligation/reobligation authority

    Sec. 510. (a) Amounts certified pursuant to section 1311 of the 
Supplemental Appropriations Act, 1955, as having been obligated against 
appropriations heretofore made under the authority of the Foreign 
Assistance Act of 1961 for the same general purpose as any of the 
headings under title II of this Act are, if deobligated, hereby 
continued available for the same period as the respective 
appropriations under such headings or until September 30, 1999, 
whichever is later, and for the same general purpose, and for countries 
within the same region as originally obligated: Provided, That the 
Appropriations Committees of both Houses of the Congress are notified 
15 days in advance of the reobligation of such funds in accordance with 
regular notification procedures of the Committees on Appropriations.
    (b) Obligated balances of funds appropriated to carry out section 
23 of the Arms Export Control Act as of the end of the fiscal year 
immediately preceding the current fiscal year are, if deobligated, 
hereby continued available during the current fiscal year for the same 
purpose under any authority applicable to such appropriations under 
this Act: Provided, That the authority of this subsection may not be 
used in fiscal year 1999.

                         availability of funds

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

            limitation on assistance to countries in default

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

                           commerce and trade

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

                          surplus commodities

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

                       notification requirements

    Sec. 515. (a) For the purposes of providing the executive branch 
with the necessary administrative flexibility, none of the funds made 
available under this Act for ``Child Survival and Disease Programs 
Fund'', ``Development assistance'', ``International Organizations and 
Programs'', ``Trade and Development Agency'', ``International narcotics 
control'', ``Assistance for Eastern Europe and the Baltic States'', 
``Assistance for the New Independent States of the Former Soviet 
Union'', ``Economic Support Fund'', ``Peacekeeping operations'', 
``Operating expenses of the Agency for International Development'', 
``Operating expenses of the Agency for International Development Office 
of Inspector General'', ``Nonproliferation, anti-terrorism, demining 
and related programs'', ``Foreign Military Financing Program'', 
``International military education and training'', ``Peace Corps'', 
``Migration and refugee assistance'', shall be available for obligation 
for activities, programs, projects, type of materiel assistance, 
countries, or other operations not justified or in excess of the amount 
justified to the Appropriations Committees for obligation under any of 
these specific headings unless the Appropriations Committees of both 
Houses of Congress are previously notified 15 days in advance: 
Provided, That the President shall not enter into any commitment of 
funds appropriated for the purposes of section 23 of the Arms Export 
Control Act for the provision of major defense equipment, other than 
conventional ammunition, or other major defense items defined to be 
aircraft, ships, missiles, or combat vehicles, not previously justified 
to Congress or 20 percent in excess of the quantities justified to 
Congress unless the Committees on Appropriations are notified 15 days 
in advance of such commitment: Provided further, That this section 
shall not apply to any reprogramming for an activity, program, or 
project under chapter 1 of part I of the Foreign Assistance Act of 1961 
of less than 10 percent of the amount previously justified to the 
Congress for obligation for such activity, program, or project for the 
current fiscal year: Provided further, That the requirements of this 
section or any similar provision of this Act or any other Act, 
including any prior Act requiring notification in accordance with the 
regular notification procedures of the Committees on Appropriations, 
may be waived if failure to do so would pose a substantial risk to 
human health or welfare: Provided further, That in case of any such 
waiver, notification to the Congress, or the appropriate congressional 
committees, shall be provided as early as practicable, but in no event 
later than three days after taking the action to which such 
notification requirement was applicable, in the context of the 
circumstances necessitating such waiver: Provided further, That any 
notification provided pursuant to such a waiver shall contain an 
explanation of the emergency circumstances.
    (b) Drawdowns made pursuant to section 506(a)(2) of the Foreign 
Assistance Act of 1961 shall be subject to the regular notification 
procedures of the Committees on Appropriations.

limitation on availability of funds for international organizations and 
                                programs

    Sec. 516. Notwithstanding any other provision of law or of this 
Act, none of the funds provided for ``International Organizations and 
Programs'' shall be available for the United States proportionate 
share, in accordance with section 307(c) of the Foreign Assistance Act 
of 1961, for any programs identified in section 307, or for Libya, 
Iran, or, at the discretion of the President, Communist countries 
listed in section 620(f) of the Foreign Assistance Act of 1961, as 
amended: Provided, That, subject to the regular notification procedures 
of the Committees on Appropriations, funds appropriated under this Act 
or any previously enacted Act making appropriations for foreign 
operations, export financing, and related programs, which are returned 
or not made available for organizations and programs because of the 
implementation of this section or any similar provision of law, shall 
remain available for obligation through September 30, 2000.

           new independent states of the former soviet union

    Sec. 517. (a) Economic Reforms.--None of the funds appropriated 
under the heading ``Assistance for the New Independent States of the 
Former Soviet Union'' shall be made available for assistance for the 
Government of Russia--
            (1) unless that Government is making progress in 
        implementing comprehensive economic reforms based on market 
        principles, private ownership, negotiating repayment of 
        commercial debt, respect for commercial contracts, and 
        equitable treatment of foreign private investment;
            (2) if that Government applies or transfers United States 
        assistance to any entity for the purpose of expropriating or 
        seizing ownership or control of assets, investments, or 
        venture.
Assistance may be furnished without regard to this subsection if the 
President determines that to do so is in the national interest.
    (b) None of the funds appropriated under the heading ``Assistance 
for the New Independent States of the Former Soviet Union'' shall be 
made available to any government of the new independent states of the 
former Soviet Union if that government directs any action in violation 
of the territorial integrity or national sovereignty of any other new 
independent state, such as those violations included in the Helsinki 
Final Act: Provided, That such funds may be made available without 
regard to the restriction in this subsection if the President 
determines that to do so is in the national security interest of the 
United States: Provided further, That the restriction of this 
subsection shall not apply to the use of such funds for the provision 
of assistance for purposes of humanitarian and refugee relief.
    (c) None of the funds appropriated under the heading ``Assistance 
for the New Independent States of the Former Soviet Union'' shall be 
made available for any state to enhance its military capability: 
Provided, That this restriction shall not apply to demilitarization, 
demining, or nonproliferation programs.
    (d) Funds appropriated under the heading ``Assistance for the New 
Independent States of the Former Soviet Union'' shall be subject to the 
regular notification procedures of the Committees on Appropriations.
    (e) Funds made available in this Act for assistance to the new 
independent states of the former Soviet Union shall be subject to the 
provisions of section 117 (relating to environment and natural 
resources) of the Foreign Assistance Act of 1961.
    (f) In issuing new task orders, entering into contracts, or making 
grants, with funds appropriated under the heading ``Assistance for the 
New Independent States of the Former Soviet Union'' in this Act or in 
prior appropriations Acts, for projects or activities that have as one 
of their primary purposes the fostering of private sector development, 
the Coordinator for United States Assistance to the New Independent 
States and the implementing agency shall encourage the participation of 
and give significant weight to contractors and grantees who propose 
investing a significant amount of their own resources (including 
volunteer services and in-kind contributions) in such projects and 
activities.

   prohibition on funding for abortions and involuntary sterilization

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

foreign organizations that perform or promote abortion overseas; forced 
               abortion in the people's republic of china

    Sec. 518A. (a) Section 104 of the Foreign Assistance Act of 1961 is 
amended by adding at the end the following new subsection:
    ``(h) Restrictions on Assistance to Foreign Organizations That 
Perform or Actively Promote Abortions.--
    ``(1) Performance of abortions.--
                    ``(A) Notwithstanding section 614 of this Act or 
                any other provision of law, no funds appropriated for 
                population planning activities or other population 
                assistance may be made available for any foreign 
                private, nongovernmental, or multilateral organization 
                until the organization certifies that it will not, 
                during the period for which the funds are made 
                available, perform abortions in any foreign country, 
                except where the life of the mother would be endangered 
                if the pregnancy were carried to term or in cases of 
                forcible rape or incest.
                    ``(B) Subparagraph (A) may not be construed to 
                apply to the treatment of injuries or illnesses caused 
                by legal or illegal abortions or to assistance provided 
                directly to the government of a country.
            ``(2) Lobbying activities.--
                    ``(A) Notwithstanding section 614 of this Act or 
                any other provision of law, no funds appropriated for 
                population planning activities or other population 
                assistance may be made available for any foreign 
                private, nongovernmental, or multilateral organization 
                until the organization certifies that it will not, 
                during the period for which the funds are made 
                available, violate the laws of any foreign country 
                concerning the circumstances under which abortion is 
                permitted, regulated, or prohibited, or engage in any 
                activity or effort to alter the laws or governmental 
                policies of any foreign country concerning the 
                circumstances under which abortion is permitted, 
                regulated, or prohibited.
                    ``(B) Subparagraph (A) shall not apply to 
                activities in opposition to coercive abortion or 
                involuntary sterilization.
            ``(3) Application to foreign organizations.--The 
        prohibitions of this subsection apply to funds made available 
        to a foreign organization either directly or as a subcontractor 
        or subgrantee, and the certifications required by paragraphs 
        (1) and (2) apply to activities in which the organization 
        engages either directly or through a subcontractor or 
        subgrantee.
            ``(4) Definition.--As used in this section, the term 
        `activity or effort to alter the laws or governmental policies 
        of any foreign country concerning the circumstances under which 
        abortion is permitted, regulated, or prohibited' includes not 
        only overt lobbying for such changes, but also such other 
        activities as sponsoring, rather than merely attending, 
        conferences and workshops on the alleged defects in the 
        abortion laws, as well the drafting and distribution of 
        materials or public statements calling attention to such 
        alleged defects.''.
    (b) Section 301 of the Foreign Assistance Act of 1961 is amended by 
adding at the end the following new subsection:
    ``(i) Limitation Relating to Forced Abortions in the People's 
Republic of China.--Notwithstanding section 614 of this Act or any 
other provision of law, no funds may be made available for the United 
Nations Population Fund (UNFPA) in any fiscal year unless the President 
certifies that--
            ``(1) UNFPA has terminated all activities in the People's 
        Republic of China, and the United States has received 
        assurances that UNFPA will conduct no such activities during 
        the fiscal year for which the funds are to be made available; 
        or
            ``(2) during the 12 months preceding such certification 
        there have been no abortions as the result of coercion 
        associated with the family planning policies of the national 
        government or other governmental entities within the People's 
        Republic of China. As used in this section, the term `coercion' 
        includes physical duress or abuse, destruction or confiscation 
        of property, loss of means of livelihood, or severe 
        psychological pressure.''.
    (c) The President may waive the provisions of section 104(h)(1) of 
the Foreign Assistance Act of 1961, as amended, pertaining to 
population assistance to foreign organizations that perform abortions 
in foreign countries, for any fiscal year: Provided, That if the 
President exercises the waiver provided by this subsection for any 
fiscal year, not to exceed $356,000,000 may be made available for 
population planning activities or other population assistance for such 
fiscal year: Provided further, That the limitation in the previous 
proviso includes all funds for programs and activities designed to 
control fertility or to reduce or delay childbirths or pregnancies, 
irrespective of the heading under which such funds are made available.

         excess defense articles for central european countries

    Sec. 519. Section 105 of Public Law 104-164 (110 Stat 1427) is 
amended by striking ``1996 and 1997'' and inserting ``1999 and 2000''.

                   special notification requirements

    Sec. 520. None of the funds appropriated by this Act shall be 
obligated or expended for Colombia, Honduras, Haiti, Liberia, Pakistan, 
Panama, Peru, Serbia, Sudan, or the Democratic Republic of Congo except 
as provided through the regular notification procedures of the 
Committees on Appropriations.

              definition of program, project, and activity

    Sec. 521. For the purpose of this Act, ``program, project, and 
activity'' shall be defined at the appropriations Act account level and 
shall include all appropriations and authorizations Acts earmarks, 
ceilings, and limitations with the exception that for the following 
accounts: Economic Support Fund and Foreign Military Financing Program, 
``program, project, and activity'' shall also be considered to include 
country, regional, and central program level funding within each such 
account; for the development assistance accounts of the Agency for 
International Development ``program, project, and activity'' shall also 
be considered to include central program level funding, either as: (1) 
justified to the Congress; or (2) allocated by the executive branch in 
accordance with a report, to be provided to the Committees on 
Appropriations within 30 days of enactment of this Act, as required by 
section 653(a) of the Foreign Assistance Act of 1961.

               child survival, aids, and other activities

    Sec. 522. Up to $10,000,000 of the funds made available by this Act 
for assistance for family planning, health, child survival, basic 
education, and AIDS, may be used to reimburse United States Government 
agencies, agencies of State governments, institutions of higher 
learning, and private and voluntary organizations for the full cost of 
individuals (including for the personal services of such individuals) 
detailed or assigned to, or contracted by, as the case may be, the 
Agency for International Development for the purpose of carrying out 
family planning activities, child survival, and basic education 
activities, and activities relating to research on, and the treatment 
and control of acquired immune deficiency syndrome in developing 
countries: Provided, That funds appropriated by this Act that are made 
available for child survival and disease programs activities may be 
made available notwithstanding any provision of law that restricts 
assistance to foreign countries: Provided further, That funds 
appropriated under title II of this Act may be made available pursuant 
to section 301 of the Foreign Assistance Act of 1961 if a primary 
purpose of the assistance is for child survival and related programs: 
Provided further, That funds appropriated by this Act that are made 
available for family planning activities may be made available 
notwithstanding section 512 of this Act and section 620(q) of the 
Foreign Assistance Act of 1961.

       prohibition against indirect funding to certain countries

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

                           reciprocal leasing

    Sec. 524. Section 61(a) of the Arms Export Control Act is amended 
by striking out ``1998'' and inserting in lieu thereof ``1999''.

                notification on excess defense equipment

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

                       authorization requirement

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

                           democracy in china

    Sec. 527. Notwithstanding any other provision of law that restricts 
assistance to foreign countries, funds appropriated by this Act for 
``Economic Support Fund'' may be made available to provide general 
support for nongovernmental organizations located outside the People's 
Republic of China that have as their primary purpose fostering 
democracy in that country, and for activities of nongovernmental 
organizations located outside the People's Republic of China to foster 
democracy in that country: Provided, That none of the funds made 
available for activities to foster democracy in the People's Republic 
of China may be made available for assistance to the government of that 
country.

                 commercial leasing of defense articles

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

                         competitive insurance

    Sec. 529. All Agency for International Development contracts and 
solicitations, and subcontracts entered into under such contracts, 
shall include a clause requiring that United States insurance companies 
have a fair opportunity to bid for insurance when such insurance is 
necessary or appropriate.

                  stingers in the persian gulf region

    Sec. 530. Except as provided in section 581 of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1990, the United States may not sell or otherwise make available any 
Stingers to any country bordering the Persian Gulf under the Arms 
Export Control Act or chapter 2 of part II of the Foreign Assistance 
Act of 1961.

                          debt-for-development

    Sec. 531. In order to enhance the continued participation of 
nongovernmental organizations in economic assistance activities under 
the Foreign Assistance Act of 1961, including endowments, debt-for-
development and debt-for-nature exchanges, a nongovernmental 
organization which is a grantee or contractor of the Agency for 
International Development may place in interest bearing accounts funds 
made available under this Act or prior Acts or local currencies which 
accrue to that organization as a result of economic assistance provided 
under title II of this Act and any interest earned on such investment 
shall be used for the purpose for which the assistance was provided to 
that organization.

                           separate accounts

    Sec. 532. (a) Separate Accounts for Local Currencies.--(1) If 
assistance is furnished to the government of a foreign country under 
chapter 1 and 10 of part I or chapter 4 of part II of the Foreign 
Assistance Act of 1961 under agreements which result in the generation 
of local currencies of that country, the Administrator of the Agency 
for International Development shall--
            (A) require that local currencies be deposited in a 
        separate account established by that government;
            (B) enter into an agreement with that government which sets 
        forth--
                    (i) the amount of the local currencies to be 
                generated; and
                    (ii) the terms and conditions under which the 
                currencies so deposited may be utilized, consistent 
                with this section; and
            (C) establish by agreement with that government the 
        responsibilities of the Agency for International Development 
        and that government to monitor and account for deposits into 
        and disbursements from the separate account.
    (2) Uses of Local Currencies.--As may be agreed upon with the 
foreign government, local currencies deposited in a separate account 
pursuant to subsection (a), or an equivalent amount of local 
currencies, shall be used only--
            (A) to carry out chapter 1 or 10 of part I or chapter 4 of 
        part II (as the case may be), for such purposes as--
                    (i) project and sector assistance activities; or
                    (ii) debt and deficit financing; or
            (B) for the administrative requirements of the United 
        States Government.
    (3) Programming Accountability.--The Agency for International 
Development shall take all necessary steps to ensure that the 
equivalent of the local currencies disbursed pursuant to subsection 
(a)(2)(A) from the separate account established pursuant to subsection 
(a)(1) are used for the purposes agreed upon pursuant to subsection 
(a)(2).
    (4) Termination of Assistance Programs.--Upon termination of 
assistance to a country under chapter 1 or 10 of part I or chapter 4 of 
part II (as the case may be), any unencumbered balances of funds which 
remain in a separate account established pursuant to subsection (a) 
shall be disposed of for such purposes as may be agreed to by the 
government of that country and the United States Government.
    (5) Conforming Amendments.--The provisions of this subsection shall 
supersede the tenth and eleventh provisos contained under the heading 
``Sub-Saharan Africa, Development Assistance'' as included in the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1989 and sections 531(d) and 609 of the Foreign 
Assistance Act of 1961.
    (6) Reporting Requirement.--The Administrator of the Agency for 
International Development shall report on an annual basis as part of 
the justification documents submitted to the Committees on 
Appropriations on the use of local currencies for the administrative 
requirements of the United States Government as authorized in 
subsection (a)(2)(B), and such report shall include the amount of local 
currency (and United States dollar equivalent) used and/or to be used 
for such purpose in each applicable country.
    (b) Separate Accounts for Cash Transfers.--(1) If assistance is 
made available to the government of a foreign country, under chapter 1 
or 10 of part I or chapter 4 of part II of the Foreign Assistance Act 
of 1961, as cash transfer assistance or as nonproject sector 
assistance, that country shall be required to maintain such funds in a 
separate account and not commingle them with any other funds.
    (2) Applicability of Other Provisions of Law.--Such funds may be 
obligated and expended notwithstanding provisions of law which are 
inconsistent with the nature of this assistance including provisions 
which are referenced in the Joint Explanatory Statement of the 
Committee of Conference accompanying House Joint Resolution 648 (H. 
Report No. 98-1159).
    (3) Notification.--At least 15 days prior to obligating any such 
cash transfer or nonproject sector assistance, the President shall 
submit a notification through the regular notification procedures of 
the Committees on Appropriations, which shall include a detailed 
description of how the funds proposed to be made available will be 
used, with a discussion of the United States interests that will be 
served by the assistance (including, as appropriate, a description of 
the economic policy reforms that will be promoted by such assistance).
    (4) Exemption.--Nonproject sector assistance funds may be exempt 
from the requirements of subsection (b)(1) only through the 
notification procedures of the Committees on Appropriations.

  compensation for united states executive directors to international 
                         financial institutions

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

         compliance with united nations sanctions against iraq

    Sec. 534. None of the funds appropriated or otherwise made 
available pursuant to this Act to carry out the Foreign Assistance Act 
of 1961 (including title IV of chapter 2 of part I, relating to the 
Overseas Private Investment Corporation) or the Arms Export Control Act 
may be used to provide assistance to any country that is not in 
compliance with the United Nations Security Council sanctions against 
Iraq unless the President determines and so certifies to the Congress 
that--
            (1) such assistance is in the national interest of the 
        United States;
            (2) such assistance will directly benefit the needy people 
        in that country; or
            (3) the assistance to be provided will be humanitarian 
        assistance for foreign nationals who have fled Iraq and Kuwait.

           competitive pricing for sales of defense articles

    Sec. 535. Direct costs associated with meeting a foreign customer's 
additional or unique requirements will continue to be allowable under 
contracts under section 22(d) of the Arms Export Control Act. Loadings 
applicable to such direct costs shall be permitted at the same rates 
applicable to procurement of like items purchased by the Department of 
Defense for its own use.

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

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

                  impact on jobs in the united states

    Sec. 537. None of the funds appropriated by this Act may be 
obligated or expended to provide--
            (1) any financial incentive to a business enterprise 
        currently located in the United States for the purpose of 
        inducing such an enterprise to relocate outside the United 
        States if such incentive or inducement is likely to reduce the 
        number of employees of such business enterprise in the United 
        States because United States production is being replaced by 
        such enterprise outside the United States;
            (2) assistance for the purpose of establishing or 
        developing in a foreign country any export processing zone or 
        designated area in which the tax, tariff, labor, environment, 
        and safety laws of that country do not apply, in part or in 
        whole, to activities carried out within that zone or area, 
        unless the President determines and certifies that such 
        assistance is not likely to cause a loss of jobs within the 
        United States; or
            (3) assistance for any project or activity that contributes 
        to the violation of internationally recognized workers rights, 
        as defined in section 502(a)(4) of the Trade Act of 1974, of 
        workers in the recipient country, including any designated zone 
        or area in that country: Provided, That in recognition that the 
        application of this subsection should be commensurate with the 
        level of development of the recipient country and sector, the 
        provisions of this subsection shall not preclude assistance for 
        the informal sector in such country, micro and small-scale 
        enterprise, and smallholder agriculture.

                          special authorities

    Sec. 538. (a) Funds appropriated in titles I and II of this Act 
that are made available for Afghanistan, Lebanon, Montenegro, and for 
victims of war, displaced children, displaced Burmese, humanitarian 
assistance for Romania, and humanitarian assistance for the peoples of 
Bosnia and Herzegovina, Croatia, and Kosova, may be made available 
notwithstanding any other provision of law.
    (b) Funds appropriated by this Act to carry out the provisions of 
sections 103 through 106 of the Foreign Assistance Act of 1961 may be 
used, notwithstanding any other provision of law, for the purpose of 
supporting biodiversity conservation activities: Provided, That such 
assistance shall be subject to sections 116, 502B, and 620A of the 
Foreign Assistance Act of 1961.
    (c) The Agency for International Development may employ personal 
services contractors, notwithstanding any other provision of law, for 
the purpose of administering programs for the West Bank and Gaza.
    (d)(1) Waiver.--The President may waive the provisions of section 
1003 of Public Law 100-204 if the President determines and certifies in 
writing to the Speaker of the House of Representatives and the 
President pro tempore of the Senate that it is important to the 
national security interests of the United States.
    (2) Period of Application of Waiver.--Any waiver pursuant to 
paragraph (1) shall be effective for no more than a period of six 
months at a time and shall not apply beyond twelve months after 
enactment of this Act.

        policy on terminating the arab league boycott of israel

    Sec. 539. It is the sense of the Congress that--
            (1) the Arab League countries should immediately and 
        publicly renounce the primary boycott of Israel and the 
        secondary and tertiary boycott of American firms that have 
        commercial ties with Israel;
            (2) the decision by the Arab League in 1997 to reinstate 
        the boycott against Israel was deeply troubling and 
        disappointing;
            (3) the Arab League should immediately rescind its decision 
        on the boycott and its members should develop normal relations 
        with their neighbor Israel; and
            (4) the President should--
                    (A) take more concrete steps to encourage 
                vigorously Arab League countries to renounce publicly 
                the primary boycotts of Israel and the secondary and 
                tertiary boycotts of American firms that have 
                commercial relations with Israel as a confidence-
                building measure;
                    (B) take into consideration the participation of 
                any recipient country in the primary boycott of Israel 
                and the secondary and tertiary boycotts of American 
                firms that have commercial relations with Israel when 
                determining whether to sell weapons to said country;
                    (C) report to Congress on the specific steps being 
                taken by the President to bring about a public 
                renunciation of the Arab primary boycott of Israel and 
                the secondary and tertiary boycotts of American firms 
                that have commercial relations with Israel and to 
                expand the process of normalizing ties between Arab 
                League countries and Israel; and
                    (D) encourage the allies and trading partners of 
                the United States to enact laws prohibiting businesses 
                from complying with the boycott and penalizing 
                businesses that do comply.

                       anti-narcotics activities

    Sec. 540. (a) Of the funds appropriated by this Act for ``Economic 
Support Fund'', assistance may be provided to strengthen the 
administration of justice in countries in Latin America and the 
Caribbean and in other regions consistent with the provisions of 
section 534(b) of the Foreign Assistance Act of 1961, except that 
programs to enhance protection of participants in judicial cases may be 
conducted notwithstanding section 660 of that Act.
    (b) Funds made available pursuant to this section may be made 
available notwithstanding section 534(c) and the second and third 
sentences of section 534(e) of the Foreign Assistance Act of 1961.

                       eligibility for assistance

    Sec. 541. (a) Assistance Through Nongovernmental Organizations.--
Restrictions contained in this or any other Act with respect to 
assistance for a country shall not be construed to restrict assistance 
in support of programs of nongovernmental organizations from funds 
appropriated by this Act to carry out the provisions of chapters 1, 10, 
and 11 of part I, and chapter 4 of part II, of the Foreign Assistance 
Act of 1961: Provided, That the President shall take into 
consideration, in any case in which a restriction on assistance would 
be applicable but for this subsection, whether assistance in support of 
programs of nongovernmental organizations is in the national interest 
of the United States: Provided further, That before using the authority 
of this subsection to furnish assistance in support of programs of 
nongovernmental organizations, the President shall notify the 
Committees on Appropriations under the regular notification procedures 
of those committees, including a description of the program to be 
assisted, the assistance to be provided, and the reasons for furnishing 
such assistance: Provided further, That nothing in this subsection 
shall be construed to alter any existing statutory prohibitions against 
abortion or involuntary sterilizations contained in this or any other 
Act.
    (b) Public Law 480.--During fiscal year 1999, restrictions 
contained in this or any other Act with respect to assistance for a 
country shall not be construed to restrict assistance under the 
Agricultural Trade Development and Assistance Act of 1954: Provided, 
That none of the funds appropriated to carry out title I of such Act 
and made available pursuant to this subsection may be obligated or 
expended except as provided through the regular notification procedures 
of the Committees on Appropriations.
    (c) Exception.--This section shall not apply--
            (1) with respect to section 620A of the Foreign Assistance 
        Act or any comparable provision of law prohibiting assistance 
        to countries that support international terrorism; or
            (2) with respect to section 116 of the Foreign Assistance 
        Act of 1961 or any comparable provision of law prohibiting 
        assistance to countries that violate internationally recognized 
        human rights.

                                earmarks

    Sec. 542. (a) Funds appropriated by this Act which are earmarked 
may be reprogrammed for other programs within the same account 
notwithstanding the earmark if compliance with the earmark is made 
impossible by operation of any provision of this or any other Act or, 
with respect to a country with which the United States has an agreement 
providing the United States with base rights or base access in that 
country, if the President determines that the recipient for which funds 
are earmarked has significantly reduced its military or economic 
cooperation with the United States since enactment of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1991; however, before exercising the authority of this subsection with 
regard to a base rights or base access country which has significantly 
reduced its military or economic cooperation with the United States, 
the President shall consult with, and shall provide a written policy 
justification to the Committees on Appropriations: Provided, That any 
such reprogramming shall be subject to the regular notification 
procedures of the Committees on Appropriations: Provided further, That 
assistance that is reprogrammed pursuant to this subsection shall be 
made available under the same terms and conditions as originally 
provided.
    (b) In addition to the authority contained in subsection (a), the 
original period of availability of funds appropriated by this Act and 
administered by the Agency for International Development that are 
earmarked for particular programs or activities by this or any other 
Act shall be extended for an additional fiscal year if the 
Administrator of such agency determines and reports promptly to the 
Committees on Appropriations that the termination of assistance to a 
country or a significant change in circumstances makes it unlikely that 
such earmarked funds can be obligated during the original period of 
availability: Provided, That such earmarked funds that are continued 
available for an additional fiscal year shall be obligated only for the 
purpose of such earmark.

                         ceilings and earmarks

    Sec. 543. Ceilings and earmarks contained in this Act shall not be 
applicable to funds or authorities appropriated or otherwise made 
available by any subsequent Act unless such Act specifically so 
directs.

                 prohibition on publicity or propaganda

    Sec. 544. No part of any appropriation contained in this Act shall 
be used for publicity or propaganda purposes within the United States 
not authorized before the date of enactment of this Act by the 
Congress: Provided, That not to exceed $950,000 may be made available 
to carry out the provisions of section 316 of Public Law 96-533.

            purchase of american-made equipment and products

    Sec. 545. (a) To the maximum extent possible, assistance provided 
under this Act should make full use of American resources, including 
commodities, products, and services.
    (b) It is the Sense of the Congress that, to the greatest extent 
practicable, all equipment and products purchased with funds made 
available in this Act should be American-made.
    (c) In providing financial assistance to, or entering into any 
contract with, any entity using funds made available in this Act, the 
head of each Federal agency, to the greatest extent practicable, shall 
provide to such entity a notice describing the statement made in 
subsection (b) by the Congress.

           prohibition of payments to united nations members

    Sec. 546. None of the funds appropriated or made available pursuant 
to this Act for carrying out the Foreign Assistance Act of 1961, may be 
used to pay in whole or in part any assessments, arrearages, or dues of 
any member of the United Nations.

                          consulting services

    Sec. 547. The expenditure of any appropriation under this Act for 
any consulting service through procurement contract, pursuant to 
section 3109 of title 5, United States Code, shall be limited to those 
contracts where such expenditures are a matter of public record and 
available for public inspection, except where otherwise provided under 
existing law, or under existing Executive order pursuant to existing 
law.

             private voluntary organizations-documentation

    Sec. 548. None of the funds appropriated or made available pursuant 
to this Act shall be available to a private voluntary organization 
which fails to provide upon timely request any document, file, or 
record necessary to the auditing requirements of the Agency for 
International Development.

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

    Sec. 549. (a) None of the funds appropriated or otherwise made 
available by this Act may be available to any foreign government which 
provides lethal military equipment to a country the government of which 
the Secretary of State has determined is a terrorist government for 
purposes of section 40(d) of the Arms Export Control Act or any other 
comparable provision of law. The prohibition under this section with 
respect to a foreign government shall terminate 12 months after that 
government ceases to provide such military equipment. This section 
applies with respect to lethal military equipment provided under a 
contract entered into after October 1, 1997.
    (b) Assistance restricted by subsection (a) or any other similar 
provision of law, may be furnished if the President determines that 
furnishing such assistance is important to the national interests of 
the United States.
    (c) Whenever the waiver of subsection (b) is exercised, the 
President shall submit to the appropriate congressional committees a 
report with respect to the furnishing of such assistance. Any such 
report shall include a detailed explanation of the assistance estimated 
to be provided, including the estimated dollar amount of such 
assistance, and an explanation of how the assistance furthers United 
States national interests.

 withholding of assistance for parking fines owed by foreign countries

    Sec. 550. (a) In General.--Of the funds made available for a 
foreign country under part I of the Foreign Assistance Act of 1961, an 
amount equivalent to 110 percent of the total unpaid fully adjudicated 
parking fines and penalties owed to the District of Columbia by such 
country as of the date of enactment of this Act shall be withheld from 
obligation for such country until the Secretary of State certifies and 
reports in writing to the appropriate congressional committees that 
such fines and penalties are fully paid to the government of the 
District of Columbia.
    (b) Definition.--For purposes of this section, the term 
``appropriate congressional committees'' means the Committee on Foreign 
Relations and the Committee on Appropriations of the Senate and the 
Committee on International Relations and the Committee on 
Appropriations of the House of Representatives.

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

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

                     war crimes tribunals drawdown

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

                               landmines

    Sec. 553. Notwithstanding any other provision of law, demining 
equipment available to the Agency for International Development and the 
Department of State and used in support of the clearance of landmines 
and unexploded ordnance for humanitarian purposes may be disposed of on 
a grant basis in foreign countries, subject to such terms and 
conditions as the President may prescribe.

           restrictions concerning the palestinian authority

    Sec. 554. None of the funds appropriated by this Act may be 
obligated or expended to create in any part of Jerusalem a new office 
of any department or agency of the United States Government for the 
purpose of conducting official United States Government business with 
the Palestinian Authority over Gaza and Jericho or any successor 
Palestinian governing entity provided for in the Israel-PLO Declaration 
of Principles: Provided, That this restriction shall not apply to the 
acquisition of additional space for the existing Consulate General in 
Jerusalem: Provided further, That meetings between officers and 
employees of the United States and officials of the Palestinian 
Authority, or any successor Palestinian governing entity provided for 
in the Israel-PLO Declaration of Principles, for the purpose of 
conducting official United States Government business with such 
authority should continue to take place in locations other than 
Jerusalem. As has been true in the past, officers and employees of the 
United States Government may continue to meet in Jerusalem on other 
subjects with Palestinians (including those who now occupy positions in 
the Palestinian Authority), have social contacts, and have incidental 
discussions.

               prohibition of payment of certain expenses

    Sec. 555. None of the funds appropriated or otherwise made 
available by this Act under the heading ``International Military 
Education and Training'' or ``Foreign Military Financing Program'' for 
Informational Program activities may be obligated or expended to pay 
for--
            (1) alcoholic beverages;
            (2) food (other than food provided at a military 
        installation) not provided in conjunction with Informational 
        Program trips where students do not stay at a military 
        installation; or
            (3) entertainment expenses for activities that are 
        substantially of a recreational character, including entrance 
        fees at sporting events and amusement parks.

                     equitable allocation of funds

    Sec. 556. Not more than 18 percent of the funds appropriated by 
this Act to carry out the provisions of sections 103 through 106 and 
chapter 4 of part II of the Foreign Assistance Act of 1961, that are 
made available for Latin America and the Caribbean region may be made 
available, through bilateral and Latin America and the Caribbean 
regional programs, to provide assistance for any country in such 
region.

                  special debt relief for the poorest

    Sec. 557. (a) Authority To Reduce Debt.--The President may reduce 
amounts owed to the United States (or any agency of the United States) 
by an eligible country as a result of--
            (1) guarantees issued under sections 221 and 222 of the 
        Foreign Assistance Act of 1961;
            (2) credits extended or guarantees issued under the Arms 
        Export Control Act; or
            (3) any obligation or portion of such obligation for a 
        Latin American country, to pay for purchases of United States 
        agricultural commodities guaranteed by the Commodity Credit 
        Corporation under export credit guarantee programs authorized 
        pursuant to section 5(f) of the Commodity Credit Corporation 
        Charter Act of June 29, 1948, as amended, section 4(b) of the 
        Food for Peace Act of 1966, as amended (Public Law 89-808), or 
        section 202 of the Agricultural Trade Act of 1978, as amended 
        (Public Law 95-501).
    (b) Limitations.--
            (1) The authority provided by subsection (a) may be 
        exercised only to implement multilateral official debt relief 
        ad referendum agreements, commonly referred to as ``Paris Club 
        Agreed Minutes''.
            (2) The authority provided by subsection (a) may be 
        exercised only in such amounts or to such extent as is provided 
        in advance by appropriations Acts.
            (3) The authority provided by subsection (a) may be 
        exercised only with respect to countries with heavy debt 
        burdens that are eligible to borrow from the International 
        Development Association, but not from the International Bank 
        for Reconstruction and Development, commonly referred to as 
        ``IDA-only'' countries.
    (c) Conditions.--The authority provided by subsection (a) may be 
exercised only with respect to a country whose government--
            (1) does not have an excessive level of military 
        expenditures;
            (2) has not repeatedly provided support for acts of 
        international terrorism;
            (3) is not failing to cooperate on international narcotics 
        control matters;
            (4) (including its military or other security forces) does 
        not engage in a consistent pattern of gross violations of 
        internationally recognized human rights; and
            (5) is not ineligible for assistance because of the 
        application of section 527 of the Foreign Relations 
        Authorization Act, Fiscal Years 1994 and 1995.
    (d) Availability of Funds.--The authority provided by subsection 
(a) may be used only with regard to funds appropriated by this Act 
under the heading ``Debt restructuring''.
    (e) Certain Prohibitions Inapplicable.--A reduction of debt 
pursuant to subsection (a) shall not be considered assistance for 
purposes of any provision of law limiting assistance to a country. The 
authority provided by subsection (a) may be exercised notwithstanding 
section 620(r) of the Foreign Assistance Act of 1961.

             authority to engage in debt buybacks or sales

    Sec. 558. (a) Loans Eligible for Sale, Reduction, or 
Cancellation.--
            (1) Authority to sell, reduce, or cancel certain loans.--
        Notwithstanding any other provision of law, the President may, 
        in accordance with this section, sell to any eligible purchaser 
        any concessional loan or portion thereof made before January 1, 
        1995, pursuant to the Foreign Assistance Act of 1961, to the 
        government of any eligible country as defined in section 702(6) 
        of that Act or on receipt of payment from an eligible 
        purchaser, reduce or cancel such loan or portion thereof, only 
        for the purpose of facilitating--
                    (A) debt-for-equity swaps, debt-for-development 
                swaps, or debt-for-nature swaps; or
                    (B) a debt buyback by an eligible country of its 
                own qualified debt, only if the eligible country uses 
                an additional amount of the local currency of the 
                eligible country, equal to not less than 40 percent of 
                the price paid for such debt by such eligible country, 
                or the difference between the price paid for such debt 
                and the face value of such debt, to support activities 
                that link conservation and sustainable use of natural 
                resources with local community development, and child 
                survival and other child development, in a manner 
                consistent with sections 707 through 710 of the Foreign 
                Assistance Act of 1961, if the sale, reduction, or 
                cancellation would not contravene any term or condition 
                of any prior agreement relating to such loan.
            (2) Terms and conditions.--Notwithstanding any other 
        provision of law, the President shall, in accordance with this 
        section, establish the terms and conditions under which loans 
        may be sold, reduced, or canceled pursuant to this section.
            (3) Administration.--The Facility, as defined in section 
        702(8) of the Foreign Assistance Act of 1961, shall notify the 
        administrator of the agency primarily responsible for 
        administering part I of the Foreign Assistance Act of 1961 of 
        purchasers that the President has determined to be eligible, 
        and shall direct such agency to carry out the sale, reduction, 
        or cancellation of a loan pursuant to this section. Such agency 
        shall make an adjustment in its accounts to reflect the sale, 
        reduction, or cancellation.
            (4) Limitation.--The authorities of this subsection shall 
        be available only to the extent that appropriations for the 
        cost of the modification, as defined in section 502 of the 
        Congressional Budget Act of 1974, are made in advance.
    (b) Deposit of Proceeds.--The proceeds from the sale, reduction, or 
cancellation of any loan sold, reduced, or canceled pursuant to this 
section shall be deposited in the United States Government account or 
accounts established for the repayment of such loan.
    (c) Eligible Purchasers.--A loan may be sold pursuant to subsection 
(a)(1)(A) only to a purchaser who presents plans satisfactory to the 
President for using the loan for the purpose of engaging in debt-for-
equity swaps, debt-for-development swaps, or debt-for-nature swaps.
    (d) Debtor Consultations.--Before the sale to any eligible 
purchaser, or any reduction or cancellation pursuant to this section, 
of any loan made to an eligible country, the President should consult 
with the country concerning the amount of loans to be sold, reduced, or 
canceled and their uses for debt-for-equity swaps, debt-for-development 
swaps, or debt-for-nature swaps.
    (e) Availability of Funds.--The authority provided by subsection 
(a) may be used only with regard to funds appropriated by this Act 
under the heading ``Debt restructuring''.

          sanctions against countries harboring war criminals

    Sec. 559. (a) Bilateral Assistance.--The President is authorized to 
withhold funds appropriated by this Act under the Foreign Assistance 
Act of 1961 or the Arms Export Control Act for any country described in 
subsection (c).
    (b) Multilateral Assistance.--The Secretary of the Treasury should 
instruct the United States executive directors of the international 
financial institutions to work in opposition to, and vote against, any 
extension by such institutions of financing or financial or technical 
assistance to any country described in subsection (c).
    (c) Sanctioned Countries.--A country described in this subsection 
is a country the government of which knowingly grants sanctuary to 
persons in its territory for the purpose of evading prosecution, where 
such persons--
            (1) have been indicted by the International Criminal 
        Tribunal for Rwanda, or any other international tribunal with 
        similar standing under international law; or
            (2) have been indicted for war crimes or crimes against 
        humanity committed during the period beginning March 23, 1933 
        and ending on May 8, 1945 under the direction of, or in 
        association with--
                    (A) the Nazi government of Germany;
                    (B) any government in any area occupied by the 
                military forces of the Nazi government of Germany;
                    (C) any government which was established with the 
                assistance or cooperation of the Nazi government; or
                    (D) any government which was an ally of the Nazi 
                government of Germany.

                   limitation on assistance for haiti

    Sec. 560. (a) Limitation.--Funds appropriated by this Act may be 
made available for assistance for the Government of Haiti only if the 
President reports to the Committee on Appropriations and the Committee 
on International Relations of the House of Representatives and the 
Committee on Appropriations and the Committee on Foreign Relations of 
the Senate that the Government of Haiti--
            (1) has completed privatization of (or placed under long-
        term private management or concession) three major public 
        entities including the completion of all required incorporating 
        documents, the transfer of assets, and the eviction of 
        unauthorized occupants of the land or facility;
            (2) is cooperating with the United States in halting 
        illegal emigration from Haiti;
            (3) is conducting thorough investigations of extrajudicial 
        and political killings and has made substantial progress in 
        bringing to justice a person or persons responsible for one or 
        more extrajudicial or political killings in Haiti, and is 
        cooperating with United States authorities and with United 
        States-funded technical advisors to the Haitian National Police 
        in such investigations;
            (4) has taken action to remove from the Haitian National 
        Police, national palace and residential guard, ministerial 
        guard, and any other public security entity or unit of Haiti 
        those individuals who are credibly alleged to have engaged in 
        or conspired to conceal gross violations of internationally 
        recognized human rights or credibly alleged to have engaged in 
        or conspired to engage in narcotics trafficking; and
            (5) is implementing the maritime counter-narcotics 
        agreements signed in October 1997.
    (b) Availability of Electoral Assistance.--Funds appropriated by 
this Act may be made available to support elections in Haiti only if 
the President reports to the Congress that the Government of Haiti:
            (1) has achieved a transparent settlement of the contested 
        April 1997 elections; and
            (2) has made concrete progress on the constitution of a 
        credible and competent provisional electoral council with the 
        agreement of a broad spectrum of diverse political parties.
    (c) Exceptions.--The limitations in subsections (a) and (b) shall 
not apply to the provision of--
            (1) counter-narcotics assistance, support for the Haitian 
        National Police's Special Investigations Unit and anti-
        corruption programs, the International Criminal Investigative 
        Assistance Program, and assistance in support of Haitian 
        customs and maritime officials;
            (2) food assistance management and support;
            (3) assistance for urgent humanitarian needs, such as 
        medical and other supplies and services in support of community 
        health services, schools, and orphanages; and
            (4) not more than $3,000,000 for the development and 
        support of political parties.
    (d) Waiver.--At any time after 150 days from the date of enactment 
of this Act, the Secretary of State may waive the requirements 
contained in subsection (a)(1) if she reports to the Committees 
specified in subsection (a) that the Government of Haiti has satisfied 
the requirements of subsection (a)(1) with regard to one major public 
entity.
    (e) Reports.--The Secretary of State shall provide to the 
Committees specified in subsection (a) on a quarterly basis--
            (1) in consultation with the Secretary of Defense and the 
        Administrator of the Drug Enforcement Administration, a report 
        on the status and number of United States personnel deployed in 
        and around Haiti on Department of Defense, Drug Enforcement 
        Administration, and United Nations missions, including displays 
        by functional or operational assignment for such personnel and 
        the cost to the United States of these operations; and
            (2) the monthly reports, prepared during the previous 
        quarter, of the Organization of American States/United Nations 
        International Civilian Mission to Haiti (MICIVIH).

  requirement for disclosure of foreign aid in report of secretary of 
                                 state

    Sec. 561. (a) Foreign Aid Reporting Requirement.--In addition to 
the voting practices of a foreign country, the report required to be 
submitted to Congress under section 406(a) of the Foreign Relations 
Authorization Act, fiscal years 1990 and 1991 (22 U.S.C. 2414a), shall 
include a side-by-side comparison of individual countries' overall 
support for the United States at the United Nations and the amount of 
United States assistance provided to such country in fiscal year 1998.
    (b) United States Assistance.--For purposes of this section, the 
term ``United States assistance'' has the meaning given the term in 
section 481(e)(4) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2291(e)(4)).

   restrictions on voluntary contributions to united nations agencies

    Sec. 562. (a) Prohibition on Voluntary Contributions for the United 
Nations.--None of the funds appropriated by this Act may be made 
available to pay any voluntary contribution of the United States to the 
United Nations (including the United Nations Development Program) if 
the United Nations implements or imposes any taxation on any United 
States persons.
    (b) Certification Required for Disbursement of Funds.--None of the 
funds appropriated by this Act may be made available to pay any 
voluntary contribution of the United States to the United Nations 
(including the United Nations Development Program) unless the President 
certifies to the Congress 15 days in advance of such payment that the 
United Nations is not engaged in any effort to implement or impose any 
taxation on United States persons in order to raise revenue for the 
United Nations or any of its specialized agencies.
    (c) Definitions.--As used in this section the term ``United States 
person'' refers to--
            (1) a natural person who is a citizen or national of the 
        United States; or
            (2) a corporation, partnership, or other legal entity 
        organized under the United States or any State, territory, 
        possession, or district of the United States.

         limitation on assistance to the palestinian authority

    Sec. 563. (a) Prohibition of Funds.--None of the funds appropriated 
by this Act to carry out the provisions of chapter 4 of part II of the 
Foreign Assistance Act of 1961 may be obligated or expended with 
respect to providing funds to the Palestinian Authority.
    (b) Waiver.--The prohibition included in subsection (a) shall not 
apply if the President certifies in writing to the Speaker of the House 
of Representatives and the President pro tempore of the Senate that 
waiving such prohibition is important to the national security 
interests of the United States.
    (c) Period of Application of Waiver.--Any waiver pursuant to 
subsection (b) shall be effective for no more than a period of six 
months at a time and shall not apply beyond twelve months after 
enactment of this Act.

         limitation on assistance to the government of croatia

    Sec. 564. None of the funds appropriated by title II of this Act 
may be made available to the Government of Croatia to relocate the 
remains of Croatian Ustashe soldiers, at the site of the World War II 
concentration camp at Jasenovac, Croatia.

              limitation on assistance to security forces

    Sec. 565. None of the funds made available by this Act may be 
provided to any unit of the security forces of a foreign country if the 
Secretary of State has credible evidence that such unit has committed 
gross violations of human rights, unless the Secretary determines and 
reports to the Committees on Appropriations that the government of such 
country is taking effective measures to bring the responsible members 
of the security forces unit to justice: Provided, That nothing in this 
section shall be construed to withhold funds made available by this Act 
from any unit of the security forces of a foreign country not credibly 
alleged to be involved in gross violations of human rights: Provided 
further, That in the event that funds are withheld from any unit 
pursuant to this section, the Secretary of State shall promptly inform 
the foreign government of the basis for such action and shall, to the 
maximum extent practicable, assist the foreign government in taking 
effective measures to bring the responsible members of the security 
forces to justice.

      limitations on transfer of military equipment to east timor

    Sec. 566. In any agreement for the sale, transfer, or licensing of 
any lethal equipment or helicopter for Indonesia entered into by the 
United States pursuant to the authority of this Act or any other Act, 
the agreement shall state that the United States expects that the items 
will not be used in East Timor: Provided, That nothing in this section 
shall be construed to limit Indonesia's inherent right to legitimate 
national self-defense as recognized under the United Nations Charter 
and international law.

restrictions on assistance to countries providing sanctuary to indicted 
                             war criminals

    Sec. 567. (a) Bilateral Assistance.--None of the funds made 
available by this or any prior Act making appropriations for foreign 
operations, export financing and related programs, may be provided for 
any country, entity or canton described in subsection (d).
    (b) Multilateral Assistance.--
            (1) Prohibition.--The Secretary of the Treasury shall 
        instruct the United States executive directors of the 
        international financial institutions to work in opposition to, 
        and vote against, any extension by such institutions of any 
        financial or technical assistance or grants of any kind to any 
        country or entity described in subsection (d).
            (2) Notification.--Not less than 15 days before any vote in 
        an international financial institution regarding the extension 
        of financial or technical assistance or grants to any country 
        or entity described in subsection (d), the Secretary of the 
        Treasury, in consultation with the Secretary of State, shall 
        provide to the Committee on Appropriations and the Committee on 
        Foreign Relations of the Senate and the Committee on 
        Appropriations and the Committee on Banking and Financial 
        Services of the House of Representatives a written 
        justification for the proposed assistance, including an 
        explanation of the United States position regarding any such 
        vote, as well as a description of the location of the proposed 
        assistance by municipality, its purpose, and its intended 
        beneficiaries.
            (3) Definition.--The term ``international financial 
        institution'' includes the International Monetary Fund, the 
        International Bank for Reconstruction and Development, the 
        International Development Association, the International 
        Finance Corporation, the Multilateral Investment Guaranty 
        Agency, and the European Bank for Reconstruction and 
        Development.
    (c) Exceptions.--
            (1) In general.--Subject to paragraph (2), subsections (a) 
        and (b) shall not apply to the provision of--
                    (A) humanitarian assistance;
                    (B) democratization assistance;
                    (C) assistance for cross border physical 
                infrastructure projects involving activities in both a 
                sanctioned country, entity, or canton and a 
                nonsanctioned contiguous country, entity, or canton, if 
                the project is primarily located in and primarily 
                benefits the nonsanctioned country, entity, or canton 
                and if the portion of the project located in the 
                sanctioned country, entity, or canton is necessary only 
                to complete the project;
                    (D) small-scale assistance projects or activities 
                requested by United States Armed Forces that promote 
                good relations between such forces and the officials 
                and citizens of the areas in the United States SFOR 
                sector of Bosnia;
                    (E) implementation of the Brcko Arbitral Decision;
                    (F) lending by the international financial 
                institutions to a country or entity to support common 
                monetary and fiscal policies at the national level as 
                contemplated by the Dayton Agreement; or
                    (G) direct lending to a non-sanctioned entity, or 
                lending passed on by the national government to a non-
                sanctioned entity.
            (2) Further limitations.--Notwithstanding paragraph (1)--
                    (A) no assistance may be made available by this 
                Act, or any prior Act making appropriations for foreign 
                operations, export financing and related programs, in 
                any country, entity, or canton described in subsection 
                (d), for a program, project, or activity in which a 
                publicly indicted war criminal is known to have any 
                financial or material interest; and
                    (B) no assistance (other than emergency foods or 
                medical assistance or demining assistance) may be made 
                available by this Act, or any prior Act making 
                appropriations for foreign operations, export financing 
                and related programs for any program, project, or 
                activity in a community within any country, entity or 
                canton described in subsection (d) if competent 
                authorities within that community are not complying 
                with the provisions of Article IX and Annex 4, Article 
                II, paragraph 8 of the Dayton Agreement relating to war 
                crimes and the Tribunal.
    (d) Sanctioned Country, Entity, or Canton.--A sanctioned country, 
entity, or canton described in this section is one whose competent 
authorities have failed, as determined by the Secretary of State, to 
take necessary and significant steps to apprehend and transfer to the 
Tribunal all persons who have been publicly indicted by the Tribunal.
    (e) Waiver.--
            (1) In general.--The Secretary of State may waive the 
        application of subsection (a) or subsection (b) with respect to 
        specified bilateral programs or international financial 
        institution projects or programs in a sanctioned country, 
        entity, or canton upon providing a written determination to the 
        Committee on Appropriations and the Committee on Foreign 
        Relations of the Senate and the Committee on Appropriations and 
        the Committee on International Relations of the House of 
        Representatives that such assistance directly supports the 
        implementation of the Dayton Agreement and its Annexes, which 
        include the obligation to apprehend and transfer indicted war 
        criminals to the Tribunal.
            (2) Report.--Not later than 15 days after the date of any 
        written determination under paragraph (e)(1), the Secretary of 
        State shall submit a report to the Committee on Appropriations 
        and the Committee on Foreign Relations of the Senate and the 
        Committee on Appropriations and the Committee on International 
        Relations of the House of Representatives regarding the status 
        of efforts to secure the voluntary surrender or apprehension 
        and transfer of persons indicted by the Tribunal, in accordance 
        with the Dayton Agreement, and outlining obstacles to achieving 
        this goal.
            (3) Assistance programs and projects affected.--Any waiver 
        made pursuant to this subsection shall be effective only with 
        respect to a specified bilateral program or multilateral 
        assistance project or program identified in the determination 
        of the Secretary of State to Congress.
    (f) Termination of Sanctions.--The sanctions imposed pursuant to 
subsections (a) and (b) with respect to a country or entity shall cease 
to apply only if the Secretary of State determines and certifies to 
Congress that the authorities of that country, entity, or canton have 
apprehended and transferred to the Tribunal all persons who have been 
publicly indicted by the Tribunal.
    (g) Definitions.--As used in this section--
            (1) Country.--The term ``country'' means Bosnia-
        Herzegovina, Croatia, Serbia, and Montenegro.
            (2) Entity.--The term ``entity'' refers to the Federation 
        of Bosnia and Herzegovina and the Republika Srpska.
            (3) Canton.--The term ``canton'' means the administrative 
        units in Bosnia and Herzegovina.
            (4) Dayton agreement.--The term ``Dayton Agreement'' means 
        the General Framework Agreement for Peace in Bosnia and 
        Herzegovina, together with annexes relating thereto, done at 
        Dayton, November 10 through 16, 1995.
            (5) Tribunal.--The term ``Tribunal'' means the 
        International Criminal Tribunal for the Former Yugoslavia.
    (h) Role of Human Rights Organizations and Government Agencies.--In 
carrying out this section, the Secretary of State, the Administrator of 
the Agency for International Development, and the executive directors 
of the international financial institutions shall consult with 
representatives of human rights organizations and all government 
agencies with relevant information to help prevent publicly indicted 
war criminals from benefitting from any financial or technical 
assistance or grants provided to any country or entity described in 
subsection (d).

additional requirements relating to stockpiling of defense articles for 
                           foreign countries

    Sec. 568. (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 $340,000,000 for fiscal year 1999''.
    (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 1999, not more than $320,000,000 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.''.

requirements for the reporting to congress of the costs to the federal 
government associated with the proposed agreement to reduce greenhouse 
                             gas emissions

    Sec. 569. The President shall provide to the Congress a detailed 
account of all Federal agency obligations and expenditures for climate 
change programs and activities, domestic and international, for fiscal 
year 1998, planned obligations for such activities in fiscal year 1999, 
and any plan for programs thereafter in the context of negotiations to 
amend the Framework Convention on Climate Change (FCCC) to be provided 
to the appropriate congressional committees no later than November 15, 
1998.

withholding assistance to countries violating united nations sanctions 
                             against libya

    Sec. 570. (a) Withholding of Assistance.--Except as provided in 
subsection (b), whenever the President determines and certifies to 
Congress that the government of any country is violating any sanction 
against Libya imposed pursuant to United Nations Security Council 
Resolution 731, 748, or 883, then not less than 5 percent of the funds 
allocated for the country under section 653(a) of the Foreign 
Assistance Act of 1961 out of appropriations in this Act shall be 
withheld from obligation and expenditure for that country.
    (b) Exception.--The requirement to withhold funds under subsection 
(a) shall not apply to funds appropriated in this Act for allocation 
under section 653(a) of the Foreign Assistance Act of 1961 for 
development assistance or for humanitarian assistance.
    (c) Waiver.--Funds may be provided for a country without regard to 
subsection (a) if the President determines that to do so is in the 
national security interest of the United States.

       aid to the government of the democratic republic of congo

    Sec. 571. None of the funds appropriated by this Act may be 
provided for assistance for the central Government of the Democratic 
Republic of Congo until such time as the President reports in writing 
to the Congress that the central Government of the Democratic Republic 
of Congo is cooperating fully with investigators from the United 
Nations in accounting for human rights violations committed in the 
Democratic Republic of Congo or adjacent countries.

                     assistance for the middle east

    Sec. 572. Of the funds appropriated by this Act under the headings 
``Economic Support Fund'', ``Foreign Military Financing'', 
``International Military Education and Training'', ``Peacekeeping 
Operations'', for refugees resettling in Israel under the heading 
``Migration and Refugee Assistance'', and for assistance for Israel to 
carry out provisions of chapter 8 of part II of the Foreign Assistance 
Act of 1961 under the heading ``Nonproliferation, Anti-Terrorism, 
Demining, and Related Programs'', not more than a total of 
$5,402,850,000 may be made available for Israel, Egypt, Jordan, 
Lebanon, the West Bank and Gaza, the Israel-Lebanon Monitoring Group, 
the Multinational Force and Observers, the Middle East Regional 
Democracy Fund, Middle East Regional Cooperation, and Middle East 
Multilateral Working Groups: Provided, That any funds that were 
appropriated under such headings in prior fiscal years and that were at 
the time of enactment of this Act obligated or allocated for other 
recipients may not during fiscal year 1999 be made available for 
activities that, if funded under this Act, would be required to count 
against this ceiling: Provided further, That funds may be made 
available notwithstanding the requirements of this section if the 
President determines and certifies to the Committees on Appropriations 
that it is important to the national security interest of the United 
States to do so and any such additional funds shall only be provided 
through the regular notification procedures of the Committees on 
Appropriations.

                      enterprise fund restrictions

    Sec. 573. Prior to the distribution of any assets resulting from 
any liquidation, dissolution, or winding up of an Enterprise Fund, in 
whole or in part, the President shall submit to the Committees on 
Appropriations, in accordance with the regular notification procedures 
of the Committees on Appropriations, a plan for the distribution of the 
assets of the Enterprise Fund.

                                cambodia

    Sec. 574. (a) None of the funds appropriated in this Act may be 
made available for assistance for the Government of Cambodia: Provided, 
That the restrictions under this heading shall not apply to 
humanitarian, demining or election-related programs or activities: 
Provided further, That the provision of such assistance shall be made 
available subject to the regular notification procedures of the 
Committees on Appropriations.
    (b) The Secretary of the Treasury should instruct the United States 
executive directors of the international financial institutions to use 
the voice and vote of the United States to oppose loans to the 
Government of Cambodia, except loans to support basic human needs.

                 export financing transfer authorities

    Sec. 575. Not to exceed 5 percent of any appropriation other than 
for administrative expenses made available for fiscal year 1999 for 
programs under title I of this Act may be transferred between such 
appropriations for use for any of the purposes, programs and activities 
for which the funds in such receiving account may be used, but no such 
appropriation, except as otherwise specifically provided, shall be 
increased by more than 25 percent by any such transfer: Provided, That 
the exercise of such authority shall be subject to the regular 
notification procedures of the Committees on Appropriations.

                 authorization for population planning

    Sec. 576. Not to exceed $385,000,000 of the funds appropriated in 
title II of this Act may be available for population planning 
activities or other population assistance.

                  report on foreign military training

    Sec. 577. The Secretary of Defense and the Secretary of State shall 
jointly provide to the Congress by January 31, 1999, a report on all 
overseas military training provided to foreign military personnel under 
programs administered by the Department of Defense and the Department 
of State during fiscal years 1998 and 1999, including those proposed 
for fiscal year 1999. This report shall include, for each such military 
training activity, the foreign policy justification and purpose for the 
training activity, the cost of the training activity, the number of 
foreign students trained and their units of operation, and the location 
of the training. In addition, this report shall also include, with 
respect to United States personnel, the operational benefits to United 
States forces derived from each such training activity and the United 
States military units involved in each such training activity. This 
report may include a classified annex if deemed necessary and 
appropriate.

            korean peninsula energy development organization

    Sec. 578. Notwithstanding sections 614 and 451 of the Foreign 
Assistance Act of 1961, as amended, or any other provision of law, none 
of the funds appropriated by this Act may be used for a voluntary 
contribution to, or assistance for, the Korean Peninsula Energy 
Development Organization.

                  repeal of restrictions on assistance

    Sec. 579. Section 907 of the FREEDOM Support Act is hereby 
repealed.

                                TITLE VI

                  Funds Appropriated to the President

                    international monetary programs

                loans to the international monetary fund

    For loans to the International Monetary Fund under section 17 of 
the Bretton Woods Agreements Act pursuant to the New Arrangements to 
Borrow, the dollar equivalent of 2,462,000,000 Special Drawing Rights, 
to remain available until expended. In addition, the amounts 
appropriated by title III of the Foreign Aid and Related Agencies 
Appropriations Act, 1963 (Public Law 87-872) and section 1101(b) of the 
Supplemental Appropriations Act, 1984 (Public Law 98-181) may also be 
used under section 17 of the Bretton Woods Agreements Act pursuant to 
the New Arrangements to Borrow.

                     General Provisions--This Title

              conditions for the use of appropriated funds

    Sec. 601. (a) Condition for the Use of Appropriated Funds for Quota 
Increase.--None of the funds appropriated after July 15, 1998, under 
the heading ``United States Quota in the International Monetary Fund'' 
may be obligated or made available to the International Monetary Fund 
until 15 days after the Secretary of the Treasury and the Chairman of 
the Board of Governors of the Federal Reserve System jointly provide 
written notification to the appropriate committees that the major 
shareholders of the International Monetary Fund have publicly agreed 
to, and will act to implement in the Fund policies providing that for 
conditions in standby agreements or other arrangements regarding the 
use of Fund resources include requirements that the recipient country--
            (1) liberalize restrictions on trade in goods and services 
        and on investment, at a minimum consistent with the terms of 
        all international trade agreements of which the borrowing 
        country is a signatory;
            (2) eliminate the pervasive practice or policy of 
        government directed lending on non-commercial terms or 
        provision of market distorting subsidies to favored industries, 
        enterprises, parties, or institutions; and
            (3) guarantee nondiscriminatory treatment in insolvency 
        proceedings between domestic and foreign creditors, and for 
        debtors and other concerned persons.
    (b) Condition for the Use of Appropriated Funds for Loans to the 
IMF.--
            (1) In general.--None of the funds appropriated in this 
        title under the heading ``Loans to the International Monetary 
        Fund'' may be obligated or made available to the International 
        Monetary Fund unless--
                    (A) there is in effect a written certification, 
                made by the Secretary of the Treasury, to the 
                appropriate committees that the International Monetary 
                Fund has met the requirements of paragraph (2); and
                    (B) the Congress has enacted legislation approving 
                the certification.
            (2) Requirements.--The requirements of this paragraph are 
        that the International Monetary Fund has in effect policies 
        that are designed to ensure the following:
                    (A) Within 3 months after any meeting of the 
                Executive Board of the International Monetary Fund at 
                which a Letter of Intent, a Policy Framework Paper, an 
                Article IV economic review consultation with a member 
                country, or a change in a general policy of the 
                International Monetary Fund is discussed, a full 
                written summary of the meeting shall be made available 
                for public inspection, with the following information 
                redacted:
                            (i) Information which, if released, would 
                        adversely affect the national security of a 
                        country, and which is of the type that would be 
                        classified by United States Government.
                            (ii) Market-sensitive information.
                            (iii) Proprietary information.
                    (B) Within 3 months after the Executive Board of 
                the International Monetary Fund at which a Letter of 
                Intent or a Policy Framework Paper is discussed, a copy 
                of the Letter of Intent or Policy Framework Paper shall 
                be made available for public inspection with the 
                following information redacted:
                            (i) Information which, if released, would 
                        adversely affect the national security of a 
                        country, and which is of the type that would be 
                        classified by United States Government.
                            (ii) Market-sensitive information.
                            (iii) Proprietary information.
                    (C) Interest charges on loans to member countries 
                shall be based on the International Monetary Fund's 
                market-determined cost of financing, adjusted weekly, 
                and loans from any facility established to address 
                circumstances of exceptional balance of payments 
                difficulties and impaired access to capital due to a 
                sudden loss of market confidence should carry a 
                substantial surcharge that serves to provide an 
                incentive for early repayment and encourage private 
                market refinancing, and that reflects risk.

 reports on financial stabilization programs led by the international 
     monetary fund in connection with financing from the exchange 
                           stabilization fund

    Sec. 602. (a) In General.--The Secretary of the Treasury shall 
submit to the appropriate committees 2 reports on the implementation of 
financial stabilization programs led by the International Monetary Fund 
in any country in connection with which the United States has made a 
commitment to provide or has provided financing from the stabilization 
fund established under section 5302 of title 31, United States Code. A 
report shall include the following with respect to each such country:
            (1) The extent that the country has made progress in making 
        conglomerate business practices more transparent through the 
        application of internationally accepted accounting practices, 
        independent external audits, full disclosure, and provision of 
        consolidated statements.
            (2) The success of measures undertaken by the United States 
        Government and the International Monetary Fund to ensure that 
        the country will not provide Government-subsidized support or 
        tax privileges to bail out individual corporations, 
        particularly in the semiconductor, steel, plywood, paper, and 
        glassware industries.
            (3) Whether International Monetary Fund involvement in 
        labor market flexibility measures has had a negative effect on 
        worker rights in the country, and the nature of any such 
        negative effects.
    (b) Timing of Reports.--The first report required by subsection (a) 
shall be due by December 1, 1998, and the second such report shall be 
due by May 1, 1999.
    (c) Notification of Impending Disbursements.--Not later than 36 
hours before the disbursement to a country with respect to which a 
report is required by subsection (a) of any resources from the 
stabilization fund referred to in subsection (a) in connection with the 
implementation of a financial stabilization program described in 
subsection (a), the Secretary of the Treasury shall notify the 
appropriate committees of the impending disbursement.

                          advisory commission

    Sec. 603. (a) In General.--The Secretary of the Treasury shall 
establish an International Financial Institution Advisory Commission 
(in this section referred to as the ``Commission'').
    (b) Membership.--The Commission shall include--
            (1) 6 individuals appointed by the Congress, including at 
        least 2 former Secretaries of the Treasury, 1 of whom shall 
        serve as the chairman of the Commission; and
            (2) not to exceed 2 members as designated by the Secretary.
    (c) Recommendations.--Within 180 days after the appointment of 
Commission members, the Commission shall submit to the appropriate 
committees a report that contains the recommendations of the Commission 
regarding the future role and responsibilities of the International 
Monetary Fund and the International Bank for Reconstruction and 
Development, including changes to the policy goals set forth for the 
International Monetary Fund and the International Bank for 
Reconstruction and Development in the Bretton Woods Agreements Act and 
the International Financial Institutions Act.
    (d) International Advisory Committee.--The Secretary of the 
Treasury shall instruct the United States Executive Director at the 
International Monetary Fund to use the voice and vote of the United 
States to seek the establishment of a permanent advisory committee to 
the Interim Committee of the Board of Governors of the International 
Monetary Fund, that is to consist of elected members of the national 
legislatures of the member countries directly represented by appointed 
members of the Executive Board of the International Monetary Fund.

                              definitions

    Sec. 604. For purposes of sections 601 through 603 of this chapter, 
the term ``appropriate committees'' means the Committees on 
Appropriations, Foreign Relations, and Banking, Housing, and Urban 
Affairs of the Senate and the Committees on Appropriations and Banking 
and Financial Services of the House of Representatives.

                    participation in quota increase

    Sec. 605. (a) In General.--The Bretton Woods Agreements Act (22 
U.S.C. 286-286mm) is amended by adding at the end the following:

``SEC. 61. QUOTA INCREASE.

    ``(a) In General.--The United States Governor of the Fund may 
consent to an increase in the quota of the United States in the Fund 
equivalent to 10,622,500,000 Special Drawing Rights.
    ``(b) Subject to Appropriations.--The authority provided by 
subsection (a) shall be effective only to such extent or in such 
amounts as are provided in advance in appropriations Acts.''.
    (b) Effectiveness Subject to Certification.--The amendment made by 
subsection (a) shall not take effect until the Secretary of the 
Treasury certifies to the Committee on Banking and Financial Services 
of the House of Representatives and the Committee on Foreign Relations 
of the Senate that the investors and banks have made a significant 
contribution in conjunction with a financing package that, in the 
context of an international financial crisis, might include taxpayer 
supported official financing.

                       new arrangements to borrow

    Sec. 606. Section 17 of the Bretton Woods Agreements Act (22 U.S.C. 
286e-2 et seq.) is amended--
            (1) in subsection (a)--
                    (A) by striking ``and February 24, 1983'' and 
                inserting ``February 24, 1983, and January 27, 1997''; 
                and
                    (B) by striking ``4,250,000,000'' and inserting 
                ``6,712,000,000'';
            (2) in subsection (b), by striking ``4,250,000,000'' and 
        inserting ``6,712,000,000''; and
            (3) in subsection (d)--
                    (A) by inserting ``or the Decision of January 27, 
                1997,'' after ``February 24, 1983,''; and
                    (B) by inserting ``or the New Arrangements to 
                Borrow, as applicable'' before the period at the end.

   advocacy of policies to enhance the general effectiveness of the 
                      international monetary fund

    Sec. 607. (a) In General.--Title XV of the International Financial 
Institutions Act (22 U.S.C. 262o-262o-1) is amended by adding at the 
end the following:

``SEC. 1503. ADVOCACY OF POLICIES TO ENHANCE THE GENERAL EFFECTIVENESS 
              OF THE INTERNATIONAL MONETARY FUND.

    ``(a) In General.--The Secretary of the Treasury shall instruct the 
United States Executive Director of the International Monetary Fund to 
use aggressively the voice and vote of the Executive Director to do the 
following:
            ``(1) Vigorously promote policies to increase the 
        effectiveness of the International Monetary Fund in structuring 
        programs and assistance so as to promote policies and actions 
        that will contribute to exchange rate stability and avoid 
        competitive devaluations that will further destabilize the 
        international financial and trading systems.
            ``(2) Vigorously promote policies to increase the 
        effectiveness of the International Monetary Fund in promoting 
        market-oriented reform, trade liberalization, economic growth, 
        democratic governance, and social stability through--
                    ``(A) appropriate liberalization of pricing, trade, 
                investment, and exchange rate regimes of countries to 
                open countries to the competitive forces of the global 
                economy;
                    ``(B) opening domestic markets to fair and open 
                internal competition among domestic enterprises by 
                eliminating inappropriate favoritism for small or large 
                businesses, eliminating elite monopolies, creating and 
                effectively implementing anti-trust and anti-monopoly 
                laws to protect free competition, and establishing fair 
                and accessible legal procedures for dispute settlement 
                among domestic enterprises;
                    ``(C) privatizing industry in a fair and equitable 
                manner that provides economic opportunities to a broad 
                spectrum of the population, eliminating government and 
                elite monopolies, closing loss-making enterprises, and 
                reducing government control over the factors of 
                production;
                    ``(D) economic deregulation by eliminating 
                inefficient and overly burdensome regulations and 
                strengthening the legal framework supporting private 
                contract and intellectual property rights;
                    ``(E) establishing or strengthening key elements of 
                a social safety net to cushion the effects on workers 
                of unemployment and dislocation; and
                    ``(F) encouraging the opening of markets for 
                agricultural commodities and products by requiring 
recipient countries to make efforts to reduce trade barriers.
            ``(3) Vigorously promote policies to increase the 
        effectiveness of the International Monetary Fund, in concert 
        with appropriate international authorities and other 
        international financial institutions (as defined in section 
        1701(c)(2)), in strengthening financial systems in developing 
        countries, and encouraging the adoption of sound banking 
        principles and practices, including the development of laws and 
        regulations that will help to ensure that domestic financial 
        institutions meet strong standards regarding capital reserves, 
        regulatory oversight, and transparency.
            ``(4) Vigorously promote policies to increase the 
        effectiveness of the International Monetary Fund, in concert 
        with appropriate international authorities and other 
        international financial institutions (as defined in section 
        1701(c)(2)), in facilitating the development and implementation 
        of internationally acceptable domestic bankruptcy laws and 
        regulations in developing countries, including the provision of 
        technical assistance as appropriate.
            ``(5) Vigorously promote policies that aim at appropriate 
        burden-sharing by the private sector so that investors and 
        creditors bear more fully the consequences of their decisions, 
        and accordingly advocate policies which include--
                    ``(A) strengthening crisis prevention and early 
                warning signals through improved and more effective 
                surveillance of the national economic policies and 
                financial market development of countries (including 
                monitoring of the structure and volume of capital flows 
                to identify problematic imbalances in the inflow of 
                short and medium term investment capital, potentially 
                destabilizing inflows of offshore lending and foreign 
                investment, or problems with the maturity profiles of 
                capital to provide warnings of imminent economic 
                instability), and fuller disclosure of such information 
                to market participants;
                    ``(B) accelerating work on strengthening financial 
                systems in emerging market economies so as to reduce 
                the risk of financial crises;
                    ``(C) consideration of provisions in debt contracts 
                that would foster dialogue and consultation between a 
                sovereign debtor and its private creditors, and among 
                those creditors;
                    ``(D) consideration of extending the scope of the 
                International Monetary Fund's policy on lending to 
                members in arrears and of other policies so as to 
                foster the dialogue and consultation referred to in 
                subparagraph (C);
                    ``(E) intensified consideration of mechanisms to 
                facilitate orderly workout mechanisms for countries 
                experiencing debt or liquidity crises;
                    ``(F) consideration of establishing ad hoc or 
                formal linkages between the provision of official 
                financing to countries experiencing a financial crisis 
                and the willingness of market participants to 
                meaningfully participate in any stabilization effort 
                led by the International Monetary Fund;
                    ``(G) using the International Monetary Fund to 
                facilitate discussions between debtors and private 
                creditors to help ensure that financial difficulties 
                are resolved without inappropriate resort to public 
                resources; and
                    ``(H) the International Monetary Fund accompanying 
                the provision of funding to countries experiencing a 
                financial crisis resulting from imprudent borrowing 
                with efforts to achieve a significant contribution by 
                the private creditors, investors, and banks which had 
                extended such credits.
            ``(6) Vigorously promote policies that would make the 
        International Monetary Fund a more effective mechanism, in 
        concert with appropriate international authorities and other 
        international financial institutions (as defined in section 
        1701(c)(2)), for promoting good governance principles within 
        recipient countries by fostering structural reforms, including 
        procurement reform, that reduce opportunities for corruption 
        and bribery, and drug-related money laundering.
            ``(7) Vigorously promote the design of International 
        Monetary Fund programs and assistance so that governments that 
        draw on the International Monetary Fund channel public funds 
        away from unproductive purposes, including large `show case' 
        projects and excessive military spending, and toward investment 
        in human and physical capital as well as social programs to 
        protect the neediest and promote social equity.
            ``(8) Work with the International Monetary Fund to foster 
        economic prescriptions that are appropriate to the individual 
        economic circumstances of each recipient country, recognizing 
        that inappropriate stabilization programs may only serve to 
        further destabilize the economy and create unnecessary 
        economic, social, and political dislocation.
            ``(9) Structure International Monetary Fund programs and 
        assistance so that the maintenance and improvement of core 
        labor standards are routinely incorporated as an integral goal 
        in the policy dialogue with recipient countries, so that--
                    ``(A) recipient governments commit to affording 
                workers the right to exercise internationally 
                recognized core worker rights, including the right of 
                free association and collective bargaining through 
                unions of their own choosing;
                    ``(B) measures designed to facilitate labor market 
                flexibility are consistent with such core worker 
                rights; and
                    ``(C) the staff of the International Monetary Fund 
                surveys the labor market policies and practices of 
                recipient countries and recommends policy initiatives 
                that will help to ensure the maintenance or improvement 
                of core labor standards.
            ``(10) Vigorously promote International Monetary Fund 
        programs and assistance that are structured to the maximum 
        extent feasible to discourage practices which may promote 
        ethnic or social strife in a recipient country.
            ``(11) Vigorously promote recognition by the International 
        Monetary Fund that macroeconomic developments and policies can 
        affect and be affected by environmental conditions and 
        policies, and urge the International Monetary Fund to encourage 
        member countries to pursue macroeconomic stability while 
        promoting environmental protection.
            ``(12) Facilitate greater International Monetary Fund 
        transparency, including by enhancing accessibility of the 
        International Monetary Fund and its staff, fostering a more 
        open release policy toward working papers, past evaluations, 
        and other International Monetary Fund documents, seeking to 
        publish all Letters of Intent to the International Monetary 
        Fund and Policy Framework Papers, and establishing a more open 
        release policy regarding Article IV consultations.
            ``(13) Facilitate greater International Monetary Fund 
        accountability and enhance International Monetary Fund self-
        evaluation by vigorously promoting review of the effectiveness 
        of the Office of Internal Audit and Inspection and the 
        Executive Board's external evaluation pilot program and, if 
        necessary, the establishment of an operations evaluation 
        department modeled on the experience of the International Bank 
        for Reconstruction and Development, guided by such key 
        principles as usefulness, credibility, transparency, and 
        independence.
            ``(14) Vigorously promote coordination with the 
        International Bank for Reconstruction and Development and other 
        international financial institutions (as defined in section 
        1701(c)(2)) in promoting structural reforms which facilitate 
        the provision of credit to small businesses, including 
        microenterprise lending, especially in the world's poorest, 
        heavily indebted countries.
    ``(b) Coordination With Other Executive Departments.--To the extent 
that it would assist in achieving the goals described in subsection 
(a), the Secretary of the Treasury shall pursue the goals in 
coordination with the Secretary of State, the Secretary of Labor, the 
Secretary of Commerce, the Administrator of the Environmental 
Protection Agency, the Administrator of the Agency for International 
Development, and the United States Trade Representative.''.
    (b) Advisory Committee on IMF Policy.--Section 1701 of such Act (22 
U.S.C. 262p-5) is amended by adding at the end the following:
    ``(e) Advisory Committee on IMF Policy.--
            ``(1) In general.--The Secretary of the Treasury shall 
        establish an International Monetary Fund Advisory Committee (in 
        this subsection referred to as the `Advisory Committee').
            ``(2) Membership.--The Advisory Committee shall consist of 
        9 members appointed by the Secretary of the Treasury, after 
        appropriate consultations with the relevant organizations, as 
        follows:
                    ``(A) 1 member shall be a former Secretary or 
                Deputy Secretary of the Treasury, who shall serve as 
                the chairman of the Advisory Committee.
                    ``(B) 2 members shall be representatives from 
                organized labor.
                    ``(C) 2 members shall be representatives from 
                banking and financial services.
                    ``(D) 2 members shall be representatives from 
                industry and agriculture.
                    ``(E) 2 members shall be representatives from 
                nongovernmental environmental and human rights 
                organizations.
            ``(3) Duties.--Not less frequently than every 6 months, the 
        Advisory Committee shall meet with the Secretary of the 
        Treasury or the Deputy Secretary of the Treasury to review, and 
        provide advice on, the extent to which individual country 
        International Monetary Fund programs meet the policy goals set 
        forth in this Act regarding the International Monetary Fund.
            ``(4) Inapplicability of termination provision of the 
        federal advisory committee act.--Section 14(a)(2) of the 
        Federal Advisory Committee Act shall not apply to the Advisory 
        Committee.''.

 sense of the congress on the role of japan in restoring regional and 
                         global economic growth

    Sec. 608. It is the sense of the Congress that Japan should assume 
a greater regional leadership role, which would coincide with Japan's 
goal of promoting strong domestic demand-led growth and avoiding a 
significant increase in its external surplus with the United States and 
the countries of the Asia-Pacific region.

   semiannual reports on financial stabilization programs led by the 
   international monetary fund in connection with financing from the 
                      exchange stabilization fund

    Sec. 609. Title XVII of the International Financial Institutions 
Act (22 U.S.C. 262r-262r-2) is amended by adding at the end the 
following:

``SEC. 1704. REPORTS ON FINANCIAL STABILIZATION PROGRAMS LED BY THE 
              INTERNATIONAL MONETARY FUND IN CONNECTION WITH FINANCING 
              FROM THE EXCHANGE STABILIZATION FUND.

    ``(a) In General.--The Secretary of the Treasury, in consultation 
with the Secretary of Commerce and other appropriate Federal agencies, 
shall prepare reports on the implementation of financial stabilization 
programs (and any material terms and conditions thereof) led by the 
International Monetary Fund in countries in connection with which the 
United States has made a commitment to provide, or has provided 
financing from the stabilization fund established under section 5302 of 
title 31, United States Code. The reports shall include the following:
            ``(1) A description of the condition of the economies of 
        countries requiring the financial stabilization programs, 
        including the monetary, fiscal, and exchange rate policies of 
        the countries.
            ``(2) A description of the degree to which the countries 
        requiring the financial stabilization programs have fully 
        implemented financial sector restructuring and reform measures 
        required by the International Monetary Fund, including--
                    ``(A) ensuring full respect for the commercial 
                orientation of commercial bank lending;
                    ``(B) ensuring that governments will not intervene 
                in bank management and lending decisions (except in 
                regard to prudential supervision);
                    ``(C) the enactment and implementation of 
                appropriate financial reform legislation;
                    ``(D) strengthening the domestic financial system 
                and improving transparency and supervision; and
                    ``(E) the opening of domestic capital markets.
            ``(3) A description of the degree to which the countries 
        requiring the financial stabilization programs have fully 
        implemented reforms required by the International Monetary Fund 
        that are directed at corporate governance and corporate 
        structure, including--
                    ``(A) making nontransparent conglomerate practices 
                more transparent through the application of 
                internationally accepted accounting practices, 
                independent external audits, full disclosure, and 
                provision of consolidated statements; and
                    ``(B) ensuring that no government subsidized 
                support or tax privileges will be provided to bail out 
                individual corporations, particularly in the 
                semiconductor, steel, and paper industries.
            ``(4) A description of the implementation of reform 
        measures required by the International Monetary Fund to 
        deregulate and privatize economic activity by ending domestic 
        monopolies, undertaking trade liberalization, and opening up 
        restricted areas of the economy to foreign investment and 
        competition.
            ``(5) A detailed description of the trade policies of the 
        countries, including any unfair trade practices or adverse 
        effects of the trade policies on the United States.
            ``(6) A description of the extent to which the financial 
        stabilization programs have resulted in appropriate burden-
        sharing among private sector creditors, including rescheduling 
        of outstanding loans by lengthening maturities, agreements on 
        debt reduction, and the extension of new credit.
            ``(7) A description of the extent to which the economic 
        adjustment policies of the International Monetary Fund and the 
        policies of the government of the country adequately balance 
        the need for financial stabilization, economic growth, 
        environmental protection, social stability, and equity for all 
        elements of the society.
            ``(8) Whether International Monetary Fund involvement in 
        labor market flexibility measures has had a negative effect on 
        core worker rights, particularly the rights of free association 
        and collective bargaining.
            ``(9) A description of any pattern of abuses of core worker 
        rights in recipient countries.
            ``(10) The amount, rate of interest, and disbursement and 
        repayment schedules of any funds disbursed from the 
        stabilization fund established under section 5302 of title 31, 
        United States Code, in the form of loans, credits, guarantees, 
        or swaps, in support of the financial stabilization programs.
            ``(11) The amount, rate of interest, and disbursement and 
        repayment schedules of any funds disbursed by the International 
        Monetary Fund to the countries in support of the financial 
        stabilization programs.
    ``(b) Timing.--Not later than October 1, 1998, and semiannually 
thereafter, the Secretary of the Treasury shall submit to the 
Committees on Banking and Financial Services and International 
Relations of the House of Representatives and the Committees on Foreign 
Relations, and Banking, Housing, and Urban Affairs of the Senate a 
report on the matters described in subsection (a).''.

 reports on reforming the architecture of the international financial 
                                 system

    Sec. 610. (a) Findings.--The Congress finds that, in order to 
ensure that the International Monetary Fund does not become the global 
lender of last resort to private sector corporations and financial 
institutions, and in order to help prevent future threats to the 
international financial system, the Secretary of the Treasury and the 
Chairman of the Board of Governors of the Federal Reserve System, 
working with their counterparts in other countries and with 
international organizations as appropriate, should--
            (1) seek to establish a broad set of international 
        transparency principles on accounting and disclosure policies 
        and practices covering, in particular, private sector financial 
        organizations;
            (2) promote improvements in the provision by both borrowers 
        and lenders of timely and comprehensive aggregate information 
        on cross-border financial stocks and flows;
            (3) seek an international accord establishing uniform 
        minimum standards with respect to robust banking and 
        supervisory systems, which individual countries should be 
        required to meet as a condition for the establishment of 
        subsidiaries, branches, or other offices of banking 
        institutions from their countries in the jurisdictions of the 
        countries participating in the accord;
            (4) immediately initiate with appropriate representatives 
        of the countries that are members of the International Monetary 
        Fund discussions aimed at securing national treatment for 
        United States investors in such countries; and
            (5) seek to establish internationally acceptable bankruptcy 
        standards and should work particularly to have International 
        Monetary Fund recipient countries adopt such standards.
    (b) Reports.--
            (1) In general.--The Secretary of the Treasury shall 
        prepare 3 reports on progress made toward achieving the 
        objectives outlined in subsection (a), which shall describe the 
        steps taken by the United States, other members of the world 
        community, and the international financial institutions to 
        strengthen safeguards in the global financial system, including 
        measures to promote more efficient functioning of global 
        markets, by--
                    (A) helping to develop effective legal and 
                regulatory frameworks, including appropriate bankruptcy 
                and foreclosure mechanisms;
                    (B) increasing transparency and disclosure by both 
                the private and public sectors;
                    (C) strengthening prudential standards, both 
                globally and in individual economies;
                    (D) improving domestic policy management;
                    (E) strengthening the role of the international 
                financial institutions in financial crisis prevention 
                and management; and
                    (F) ensuring appropriate burden-sharing by the 
                private sector, particularly commercial banks and 
financial institutions, in the resolution of crises.
            (2) Timing.--The Secretary of the Treasury shall submit to 
        the Committees on Banking and Financial Services and 
        International Relations of the House of Representatives and the 
        Committees on Foreign Relations and Banking, Housing, and Urban 
        Affairs of the Senate 2 interim reports on the matters 
        described in paragraph (1), the first of which is due by 
        October 1, 1998, and the second of which is due on April 1, 
        1999, and a final report on such matters, which is due on 
        October 1, 1999.

annual report and testimony on the state of the international financial 
         system, imf reform, and compliance with imf agreements

    Sec. 611. Title XVII of the International Financial Institutions 
Act (22 U.S.C. 262r-262r-2) is further amended by adding at the end the 
following:

``SEC. 1705. ANNUAL REPORT AND TESTIMONY ON THE STATE OF THE 
              INTERNATIONAL FINANCIAL SYSTEM, IMF REFORM, AND 
              COMPLIANCE WITH IMF AGREEMENTS.

    ``(a) Reports.--Not later than October 1 of each year, the 
Secretary of the Treasury shall submit to the Committee on Banking and 
Financial Services of the House of Representatives and the Committee on 
Foreign Relations of the Senate a written report on the progress (if 
any) made by the United States Executive Director at the International 
Monetary Fund in influencing the International Monetary Fund to adopt 
the policies and reform its internal procedures in the manner described 
in section 1503.
    ``(b) Testimony.--After submitting the report required by 
subsection (a) but not later than October 31 of each year, the 
Secretary of the Treasury shall appear before the Committee on Banking 
and Financial Services of the House of Representatives and the 
Committee on Foreign Relations of the Senate and present testimony on--
            ``(1) any progress made in reforming the International 
        Monetary Fund;
            ``(2) the status of efforts to reform the international 
        financial system; and
            ``(3) the compliance of countries which have received 
        assistance from the International Monetary Fund with agreements 
        made as a condition of receiving the assistance.''.

               audits of the international monetary fund

    Sec. 612. Title XVII of the International Financial Institutions 
Act (22 U.S.C. 262r-262r-2) is further amended by adding at the end the 
following:

``SEC. 1706. AUDITS OF THE INTERNATIONAL MONETARY FUND.

    ``(a) Access to Materials.--Not later than 30 days after the date 
of the enactment of this section, the Secretary of the Treasury shall 
certify to the Committee on Banking and Financial Services of the House 
of Representatives and the Committee on Foreign Relations of the Senate 
that the Secretary has instructed the United States Executive Director 
at the International Monetary Fund to facilitate timely access by the 
General Accounting Office to information and documents of the 
International Monetary Fund needed by the Office to perform financial 
reviews of the International Monetary Fund that will facilitate the 
conduct of United States policy with respect to the Fund.
    ``(b) Reports.--Not later than June 30, 1999, and annually 
thereafter, the Comptroller General of the United States shall prepare 
and submit to the committees specified in subsection (a) a report on 
the financial operations of the Fund during the preceding year, which 
shall include--
            ``(1) the current financial condition of the International 
        Monetary Fund;
            ``(2) the amount, rate of interest, disbursement schedule, 
        and repayment schedule for any loans that were initiated or 
        outstanding during the preceding calendar year, and with 
        respect to disbursement schedules, the report shall identify 
        and discuss in detail any conditions required to be fulfilled 
        by a borrower country before a disbursement is made;
            ``(3) a detailed description of whether the trade policies 
        of borrower countries permit free and open trade by the United 
        States and other foreign countries in the borrower countries;
            ``(4) a detailed description of the export policies of 
        borrower countries and whether the policies may result in 
        increased export of their products, goods, or services to the 
        United States which may have significant adverse effects on, or 
        result in unfair trade practices against or affecting United 
        States companies, farmers, or communities;
            ``(5) a detailed description of any conditions of 
        International Monetary Fund loans which have not been met by 
        borrower countries, including a discussion of the reasons why 
        such conditions were not met, and the actions taken by the 
        International Monetary Fund due to the borrower country's 
        noncompliance;
            ``(6) an identification of any borrower country and loan on 
        which any loan terms or conditions were renegotiated in the 
        preceding calendar year, including a discussion of the reasons 
        for the renegotiation and any new loan terms and conditions; 
        and
            ``(7) a specification of the total number of loans made by 
        the International Monetary Fund from its inception through the 
        end of the period covered by the report, the number and 
        percentage (by number) of such loans that are in default or 
        arrears, and the identity of the countries in default or 
        arrears, and the number of such loans that are outstanding as 
        of the end of period covered by the report and the aggregate 
        amount of the outstanding loans and the average yield (weighted 
        by loan principal) of the historical and outstanding loan 
        portfolios of the International Monetary Fund.''.

                              short title

    Sec. 613. Sections 605 through 613 of this title may be cited as 
the ``International Monetary Fund Reform and Authorization Act of 
1998''.
    Titles I through V, the appropriations paragraphs of title VI, and 
sections 601 through 604, of this Act may be cited as the ``Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1999''.