[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 955 Placed on Calendar Senate (PCS)]

                                                        Calendar No. 94
105th CONGRESS
  1st Session
                                 S. 955

                          [Report No. 105-35]

  Making appropriations for foreign operations, export financing, and 
related programs for the fiscal year ending September 30, 1998, and for 
                            other purposes.


Rule___________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 24, 1997

   Mr. McConnell from the Committee on Appropriations, reported the 
    following original bill; which was read twice and placed on the 
                                calendar

_______________________________________________________________________

                                 A BILL


 
  Making appropriations for foreign operations, export financing, and 
related programs for the fiscal year ending September 30, 1998, 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, 1998, 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, $700,000,000 to remain available until September 30, 
1999: 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 2013 for the disbursement of direct loans, loan guarantees, 
insurance and tied-aid grants obligated in fiscal years 1998 and 1999: 
Provided further, That up to $50,000,000 of funds appropriated by this 
paragraph shall remain available until expended and may be used for 
tied-aid grant purposes: Provided further, That none of the funds 
appropriated by this 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.

                        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, 
$46,614,000: Provided, That necessary expenses (including special 
services performed on a contract or fee basis, but not including other 
personal services) in connection with the collection of moneys owed the 
Export-Import Bank, repossession or sale of pledged collateral or other 
assets acquired by the Export-Import Bank in satisfaction of moneys 
owed the Export-Import Bank, or the investigation or appraisal of any 
property, or the evaluation of the legal or technical aspects of any 
transaction for which an application for a loan, guarantee or insurance 
commitment has been made, shall be considered nonadministrative 
expenses for the purposes of this heading: Provided further, That, 
notwithstanding subsection (b) of section 117 of the Export Enhancement 
Act of 1992, subsection (a) thereof shall remain in effect until 
October 1, 1998.

                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 $32,000,000: 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, $60,000,000, 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 1998 and 1999: 
Provided further, That such sums shall remain available through fiscal 
year 2006 for the disbursement of direct and guaranteed loans obligated 
in fiscal year 1998, and through fiscal year 2007 for the disbursement 
of direct and guaranteed loans obligated in fiscal year 1999: 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, $43,000,000, to remain available 
until September 30, 1999: 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, 1999, 
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, 1998, unless 
otherwise specified herein, as follows:

                  agency for international development

                         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, title V of the International Security and Development Cooperation 
Act of 1980 (Public Law 96-533) and the provisions of section 401 of 
the Foreign Assistance Act of 1969, $1,358,093,020, to remain available 
until September 30, 1999: Provided, That of the amount appropriated 
under this heading, up to $18,000,000 may be made available for the 
Inter-American Foundation and shall be apportioned directly to that 
Agency: Provided further, That of the amount appropriated under this 
heading, up to $10,500,000 may be made available for the African 
Development Foundation and shall be apportioned directly to that 
agency: Provided further, That of the funds appropriated under title II 
of this Act that are administered by the Agency for International 
Development and made available for family planning assistance, not less 
than 65 per centum shall be made available directly to the agency's 
central Office of Population and shall be programmed by that office for 
family planning activities: Provided further, That of the funds made 
available under this heading, not less than $30,000,000, above the 
amount of funds made available to combat infectious diseases in the 
fiscal year 1997, shall be made available to strengthen global 
surveillance and control of infectious diseases: Provided further, That 
such funds shall be subject to the regular notification procedures of 
the Committees on Appropriations: Provided further, 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, $2,500,000 shall 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 of the funds appropriated under this heading 
that are made available for assistance programs for displaced and 
orphaned children and victims of war, not to exceed $25,000, in 
addition to funds otherwise available for such purposes, may be used to 
monitor and provide oversight of such programs: Provided further, That 
of the funds appropriated under this heading, not less than $15,000,000 
shall be available for the American Schools and Hospitals Abroad 
Program: Provided further, That not less than $500,000 of the funds 
appropriated under this heading shall be made available only for 
support of the United States Telecommunications Training Institute.

                   population, development assistance

    For necessary expenses to carry out the provisions of section 
104(b) of the Foreign Assistance Act of 1961, $435,000,000, to remain 
available until September 30, 1999.

                                 cyprus

    Of the funds appropriated under the headings ``Development 
Assistance'' and ``Economic Support Fund'', not less than $15,000,000 
shall be made available for Cyprus to be used only for scholarships, 
administrative support of the scholarship program, bicommunal projects, 
and measures aimed at reunification of the island and designed to 
reduce tensions and promote peace and cooperation between the two 
communities on Cyprus.

                                 burma

    Of the funds appropriated under the heading ``Development 
Assistance'', not less than $5,000,000 shall be made available to 
support activities in Burma, along the Burma-Thailand border, and for 
activities of Burmese student groups and other organizations located 
outside Burma: Provided, That $3,000,000 of these funds shall be made 
available for the purposes of fostering democracy, including not less 
than $200,000 to be made available for newspapers, media, and 
publications promoting democracy for Burma: Provided further, That 
$2,000,000 of these funds shall be made available to support the 
provision of medical supplies and services and other humanitarian 
assistance to Burmese located in Burma or displaced Burmese along the 
borders: Provided further, That funds made available for Burma related 
activities under this heading may be made available notwithstanding any 
other provision of law: Provided further, That provision of such funds 
shall be made available subject to the regular notification procedures 
of the Committees on Appropriations.

                                cambodia

    Of the funds appropriated under the headings ``Economic Support 
Fund'' and ``Development Assistance'', not less than $40,000,000 should 
be available for Cambodia: Provided, That of these funds $12,000,000 
shall be made available for the promotion of rule of law and political 
reform including support for an independent election commission, voter 
registration and regulatory and legal reforms associated with national 
and municipal elections: Provided further, That none of the funds made 
available by this Act for Cambodia may be made available for economic 
growth activities until the Secretary of State determines and reports 
to the Committees on Appropriations that the Government of Cambodia has 
taken significant steps to (1) end political violence and intimidation 
of opposition parties and members; (2) establish an independent 
election commission; (3) protect the rights of voters, candidates and 
election participants by establishing electoral laws and procedures 
guaranteeing freedom of speech and assembly; and (4) eliminate official 
corruption and collaboration with narcotics smugglers: Provided 
further, That 30 days after the date of enactment of this Act, the 
Secretary of State, in consultation with the Director of the Federal 
Bureau of Investigations, shall report to the Committees on 
Appropriations on the results of the investigation conducted by the FBI 
into the bombing attack in Phnom Penh on March 30, 1997.

                   guatemala clarification commission

    Of the funds made available under the headings ``Development 
Assistance''and ``Economic Support Fund'', not less than $1,000,000 
shall be made available to support the Guatemala Clarification 
Commission.

                   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, $195,000,000, to 
remain available until expended.

                           debt restructuring

    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of modifying direct loans and loan guarantees, as the 
President may determine, for which funds have been appropriated or 
otherwise made available for programs within the International Affairs 
Budget Function 150, including the cost of selling, reducing, or 
canceling amounts, through debt buybacks and swaps, owed to the United 
States as a result of concessional loans made to eligible Latin 
American and Caribbean countries, pursuant to part IV of the Foreign 
Assistance Act of 1961, and of modifying concessional loans authorized 
under title I of the Agricultural Trade Development and Assistance Act 
of 1954, as amended, as authorized under subsection (a) under the 
heading ``Debt Reduction for Jordan'' in title VI of Public Law 103-306 
and (b) direct loans extended to least developed countries, as 
authorized under section 411 of the Agriculture Trade and Assistance 
Act of 1954 as amended; $34,000,000, to remain available until 
expended: Provided, That none of the funds appropriated under this 
heading shall be obligated except as provided through the regular 
notification procedures of the Committees on Appropriations.

         micro and small enterprise development program account

    For the cost of direct loans and loan guarantees, $1,500,000, as 
authorized by section 108 of the Foreign Assistance Act of 1961, as 
amended: Provided, That such costs shall be as defined in section 502 
of the Congressional Budget Act of 1974: Provided further, That 
guarantees of loans made under this heading in support of 
microenterprise activities may guarantee up to 70 per centum 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, 1999.

             urban and environmental credit program account

    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of guaranteed loans authorized by sections 221 and 222 of 
the Foreign Assistance Act of 1961, $3,000,000, to remain available 
until September 30, 1999: Provided, That these funds are available to 
subsidize loan principal, 100 per centum of which shall be guaranteed, 
pursuant to the authority of such sections. In addition, for 
administrative expenses to carry out guaranteed loan programs, 
$6,000,000, all of which may be transferred to and merged with the 
appropriation for Operating Expenses of the Agency for International 
Development: Provided further, That commitments to guarantee loans 
under this heading may be entered into notwithstanding the second and 
third sentences of section 222(a) and, with regard to programs for 
Central and Eastern Europe and programs for the benefit of South 
Africans disadvantaged by apartheid, section 223(j) of the Foreign 
Assistance Act of 1961.

                  private and voluntary organizations

    None of the funds appropriated or otherwise made available by this 
Act for development assistance may be made available to any United 
States private and voluntary organization, except any cooperative 
development organization, which obtains less than 20 per centum of its 
total annual funding for international activities from sources other 
than the United States Government: Provided, That the requirements of 
the provisions of section 123(g) of the Foreign Assistance Act of 1961 
and the provisions on private and voluntary organizations in title II 
of the ``Foreign Assistance and Related Programs Appropriations Act, 
1985'' (as enacted in Public Law 98-473) shall be superseded by the 
provisions of this section, except that the authority contained in the 
last sentence of section 123(g) may be exercised by the Administrator 
with regard to the requirements of this paragraph.
    Funds appropriated or otherwise made available under title II of 
this Act should be made available to private and voluntary 
organizations at a level which is 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.

     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, $44,208,000.

     operating expenses of the agency for international development

    For necessary expenses to carry out the provisions of section 667, 
$473,000,000, to remain available until September 30, 1999: 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, 
$29,047,000, to remain available until September 30, 1999, 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, $2,585,100,000, to remain available until September 30, 1999: 
Provided, That of the funds appropriated under this heading, not less 
than $1,200,000,000 shall be available only for Israel, which sum shall 
be available on a grant basis as a cash transfer and shall be disbursed 
within thirty days of enactment of this Act or by October 31, 1997, 
whichever is later: 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: Provided further, That of the funds appropriated under 
this heading, not less than $150,000,000 shall be made available for 
Jordan.

          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, $485,000,000, to remain available until 
September 30, 1999, which shall be available, notwithstanding any other 
provision of law, for economic assistance and for related programs for 
Eastern Europe and the Baltic States.
    (b) Funds appropriated under this heading or in prior 
appropriations Acts that are or have been made available for an 
Enterprise Fund may be deposited by such Fund in interest-bearing 
accounts prior to the Fund's disbursement of such funds for program 
purposes. The Fund may retain for such program purposes any interest 
earned on such deposits without returning such interest to the Treasury 
of the United States and without further appropriation by the Congress. 
Funds made available for Enterprise Funds shall be expended at the 
minimum rate necessary to make timely payment for projects and 
activities.
    (c) Funds appropriated under this heading shall be considered to be 
economic assistance under the Foreign Assistance Act of 1961 for 
purposes of making available the administrative authorities contained 
in that Act for the use of economic assistance.
    (d) With regard to funds appropriated or otherwise made available 
under this heading for the economic revitalization program in Bosnia 
and Herzegovina, and local currencies generated by such funds 
(including the conversion of funds appropriated under this heading into 
currency used by Bosnia and Herzegovina as local currency and local 
currency returned or repaid under such program)--
            (1) the Administrator of the Agency for International 
        Development shall provide written approval for grants and loans 
        prior to the obligation and expenditure of funds for such 
        purposes, and prior to the use of funds that have been returned 
        or repaid to any lending facility or grantee; and
            (2) the provisions of section 533 of this Act shall apply.
    (e) Funds appropriated under this heading may not be made available 
for economic revitalization programs in Bosnia and Herzegovina, if the 
President 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.

  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, $800,000,000, to remain 
available until September 30, 1999: Provided, That the provisions of 
such chapter shall apply to funds appropriated by this paragraph.
    (b) None of the funds appropriated under this heading shall be made 
available to a Government of the New Independent States of the former 
Soviet Union--
            (1) unless that Government is making progress in 
        implementing comprehensive economic reforms based on market 
        principles, private ownership, negotiating repayment of 
        commercial debt, respect for commercial contracts, and 
        equitable treatment of foreign private investment; and
            (2) if that Government applies or transfers United States 
        assistance to any entity for the purpose of expropriating or 
        seizing ownership or control of assets, investments, or 
        ventures.
            (3) Funds may be furnished without regard to this 
        subsection if the President determines that to do so is in the 
        national interest.
    (c) None of the funds appropriated under this heading shall be made 
available to any government of the New Independent States of the former 
Soviet Union if that government directs any action in violation of the 
territorial integrity or national sovereignty of any other new 
independent state, such as those violations included in the Helsinki 
Final Act: Provided, That such funds may be made available without 
regard to the restriction in this subsection if the President 
determines 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.
    (d) None of the funds appropriated under this heading for the New 
Independent States of the former Soviet Union shall be made available 
for any state to enhance its military capability: Provided, That this 
restriction does not apply to demilitarization or nonproliferation 
programs.
    (e) Funds appropriated under this heading shall be subject to the 
regular notification procedures of the Committees on Appropriations.
    (f) 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.
    (g) Of the funds appropriated under title II of this Act, including 
funds appropriated under this heading, not less than $12,000,000 shall 
be available only for assistance for Mongolia: 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.
    (h) Funds made available in this Act for assistance to the New 
Independent States of the former Soviet Union shall be provided to the 
maximum extent feasible through the private sector, including small- 
and medium-size businesses, entrepreneurs, and others with indigenous 
private enterprises in the region, intermediary development 
organizations committed to private enterprise, and private voluntary 
organizations: Provided, That grantees and contractors should, to the 
maximum extent possible, place in key staff positions specialists with 
prior on the ground expertise in the region of activity and fluency in 
one of the local languages.
    (i) In issuing new task orders, entering into contracts, or making 
grants, with funds appropriated under this heading or in prior 
appropriations Acts, for projects or activities that have as one of 
their primary purposes the fostering of private sector development, the 
Coordinator for United States Assistance to the New Independent States 
and the implementing agency shall encourage the participation of and 
give significant weight to contractors and grantees who propose 
investing a significant amount of their own resources (including 
volunteer services and in-kind contributions) in such projects and 
activities.
    (j) Of the funds appropriated under this heading, not less than 
$225,000,000 shall be made available for Ukraine: Provided, That of 
this amount not less than $8,000,000 shall be made available to support 
law enforcement institutions and training, not less than $25,000,000 
shall be made available for nuclear reactor safety programs, and not 
less than $5,000,000 shall be made available for political party and 
related institutional development: Provided further, That 50 per centum 
of the amount made available for Ukraine by this subsection, exclusive 
of funds made available in the previous proviso, shall be withheld from 
obligation and expenditure until the Secretary of State determines and 
certifies that the Government of Ukraine has taken meaningful steps: 
(1) to enforce the April 10, 1997 Anti-Corruption Presidential decree; 
(2) to privatize state owned agricultural storage, distribution, 
equipment and supply monopolies; and (3) to resolve cases involving 
U.S. business complaints and establish a permanent legal mechanism for 
commercial dispute resolution.
    (k) Of the funds appropriated under this heading, not less than 
$100,000,000 shall be made available for Georgia, of which not less 
than $10,000,000 shall be made available to support energy development 
and privatization initiatives: Provided, That not less than $15,000,000 
shall be made available for development of border security 
telecommunications infrastructure: Provided further, That not less than 
$7,000,000 shall be available for judicial reform and law enforcement 
training: Provided further, That not less than $5,000,000 shall be made 
available to support training for border and customs control: Provided 
further, That not less than $3,000,000 shall be made available to 
support political party and related institutional development: Provided 
further, That not less than $5,000,000 shall be available for Supsa 
urban and commercial development: Provided further, That up to 
$7,000,000 may be made available for business and education exchanges 
and related activities.
    (l) Of the funds made available under this heading, not less than 
$95,000,000 shall be made available for Armenia.
    (m) Funds appropriated under this heading or in prior 
appropriations Acts that are or have been made available for an 
Enterprise Fund may be deposited by such Fund in interest-bearing 
accounts prior to the disbursement of such funds by the Fund for 
program purposes. The Fund may retain for such program purposes any 
interest earned on such deposits without returning such interest to the 
Treasury of the United States and without further appropriation by the 
Congress. Funds made available for Enterprise Funds shall be expended 
at the minimum rate necessary to make timely payment for projects and 
activities.
    (n) None of the funds appropriated under this heading may be made 
available for Russia unless the President determines and certifies in 
writing to the Committees on Appropriations that the Government of 
Russia has terminated implementation of arrangements to provide Iran 
with technical expertise, training, technology, or equipment necessary 
to develop a nuclear reactor or related nuclear research facilities or 
programs.
    (o) Of the funds appropriated under this heading, not less than 
$10,000,000 shall be made available for a United States contribution to 
the Trans-Caucasus Enterprise Fund: Provided, That to further the 
development of the private sector in the Trans-Caucasus, such amount 
may be invested in a Trans-Caucasus Enterprise Fund or invested in 
other funds established by public or private organizations, or 
transferred to the Overseas Private Investment Corporation to be 
available, subject to the requirements of the Federal Credit Reform 
Act, to subsidize the costs of direct and guaranteed loans.
    (p) Funds made available under this Act or any other Act may not be 
provided for assistance to the Government of Azerbaijan until the 
President determines, and so reports to the Congress, that the 
Government of Azerbaijan is taking demonstrable steps to cease all 
blockades and other offensive uses of force against Armenia and 
Nagorno-Karabakh: Provided, That the restriction of this subsection and 
section 907 of the FREEDOM Support Act shall not apply to--
            (1) activities to support electoral and political reforms 
        or assistance under title V of the FREEDOM Support Act and 
        section 1424 of the ``National Defense Authorization Act for 
        Fiscal Year 1997'';
            (2) any insurance, reinsurance, guarantee, or other 
        assistance provided by the Overseas Private Investment 
        Corporation under title IV of chapter 2 of part I of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2191 et seq.);
            (3) any assistance provided by the Trade and Development 
        Agency under section 661 of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2421);
            (4) any financing provided under the Export-Import Bank Act 
        of 1945 (12 U.S.C. 635 et seq.); or
            (5) any activity carried out by a member of the Foreign 
        Commercial Service while acting within his or her official 
        capacity.

                           Independent Agency

                              peace corps

    For expenses necessary to carry out the provisions of the Peace 
Corps Act (75 Stat. 612), $206,000,000, 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, 1999.

                          Department of State

                    international narcotics control

    For necessary expenses to carry out section 481 of the Foreign 
Assistance Act of 1961, $216,200,000: Provided, That of these funds not 
less than $10,000,000 shall be made available for Law Enforcement 
Training and Demand Reduction: Provided further, That not less than 
$22,000,000 shall be made available for anti-crime programs: Provided 
further, That none of the funds appropriated under this heading that 
are made available for counter-narcotics activities may be obligated or 
expended until the Secretary of State submits a report to the 
Committees on Appropriations containing: (1) a list of all countries in 
which the United States carries out international counter-narcotics 
activities; (2) the number, mission and agency affiliation of U.S. 
personnel assigned to each such country; and (3) all costs and expenses 
obligated for each program, project or activity by each U.S. agency in 
each country: Provided further, That funds appropriated under this 
heading shall be provided subject to the regular notification 
procedures of the Committees on Appropriations.

                    migration and refugee assistance

    For expenses, not otherwise provided for, necessary to enable the 
Secretary of State to provide, as authorized by law, a contribution to 
the International Committee of the Red Cross, assistance to refugees, 
including contributions to the International Organization for Migration 
and the United Nations High Commissioner for Refugees, and other 
activities to meet refugee and migration needs; salaries and expenses 
of personnel and dependents as authorized by the Foreign Service Act of 
1980; allowances as authorized by sections 5921 through 5925 of title 
5, United States Code; purchase and hire of passenger motor vehicles; 
and services as authorized by section 3109 of title 5, United States 
Code, $650,000,000: Provided, That not more than $12,000,000 shall be 
available for administrative expenses: Provided further, That not less 
than $80,000,000 shall be made available for refugees from the former 
Soviet Union and Eastern Europe and other refugees resettling in 
Israel.

     united states emergency refugee and migration assistance fund

    For necessary expenses to carry out the provisions of section 2(c) 
of the Migration and Refugee Assistance Act of 1962, as amended (22 
U.S.C. 260(c)), $50,000,000, to remain available until expended: 
Provided, That the funds made available under this heading are 
appropriated notwithstanding the provisions contained in section 
2(c)(2) of the 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, $129,000,000, 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 for demining activities, notwithstanding any 
other provision of law, including activities implemented through 
nongovernmental and international organizations, section 301 of the 
Foreign Assistance Act of 1961 for a voluntary contribution to the 
International Atomic Energy Agency (IAEA) and a voluntary contribution 
to the Korean Peninsula Energy Development Organization (KEDO): 
Provided, That of this amount not to exceed $15,000,000, to remain 
available until expended, may be made available for the 
Nonproliferation and Disarmament Fund, notwithstanding any other 
provision of law, to promote bilateral and multilateral activities 
relating to nonproliferation and disarmament: Provided further, That 
such funds may also be used for such countries other than the New 
Independent States of the former Soviet Union and international 
organizations when it is in the national security interest of the 
United States to do so: Provided further, That such funds shall be 
subject to the regular notification procedures of the Committees on 
Appropriations: Provided further, That funds appropriated under this 
heading may be made available for the International Atomic Energy 
Agency only if the Secretary of State determines (and so reports to the 
Congress) that Israel is not being denied its right to participate in 
the activities of that Agency: Provided further, That not to exceed 
$30,000,000 may be made available to the Korean Peninsula Energy 
Development Organization (KEDO) only for the administrative expenses 
and heavy fuel oil costs associated with the Agreed Framework: Provided 
further, That such funds may be obligated to KEDO only if, thirty days 
prior to such obligation of funds, the President certifies and so 
reports to Congress that: (1)(A) the parties to the Agreed Framework 
are taking steps to assure that progress is made on the implementation 
of the January 1, 1992, Joint Declaration on the Denuclearization of 
the Korean Peninsula and the implementation of the North-South 
dialogue, and (B) North Korea is complying with the other provisions of 
the Agreed Framework between North Korea and the United States and with 
the Confidential Minute; (2) North Korea is cooperating fully in the 
canning and safe storage of all spent fuel from its graphite-moderated 
nuclear reactors and that such canning and safe storage is scheduled to 
be completed by the end of fiscal year 1997; and (3) North Korea has 
not significantly diverted assistance provided by the United States for 
purposes for which it was not intended: Provided further, That the 
President may waive the certification requirements of the preceding 
proviso if the President determines that it is vital to the national 
security interests of the United States: Provided further, That no 
funds may be obligated for KEDO until 30 days after submission to 
Congress of the waiver permitted under the preceding proviso: Provided 
further, That the obligation of any funds for KEDO shall be subject to 
the regular notification procedures of the Committees on 
Appropriations: 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 
the Korean Peninsula Energy Development Organization, 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: Provided further, That of the funds made 
available under this heading, up to $14,000,000 may be made available 
to the Korean Peninsula Economic Development Organization (KEDO), in 
addition to funds otherwise made available under this heading for KEDO, 
if the Secretary of State certifies and reports to the Committees on 
Appropriations that, except for the funds made available under this 
proviso, funds sufficient to cover all outstanding debts owed by KEDO 
for heavy fuel oil have been provided to KEDO.

                     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, $47,000,000: Provided, That none 
of the funds appropriated under this heading shall be available for 
Guatemala: Provided further, 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.

                   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, 
$3,265,000,000: Provided, That of the funds appropriated under this 
heading, not less than $1,800,000,000 shall be available for grants 
only for Israel: Provided further, That the funds appropriated by this 
paragraph for Israel shall be disbursed within thirty days of enactment 
of this Act or by October 31, 1997, 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 may, as agreed by Israel and the United States, be 
available for advanced weapons systems, of which not less than 
$475,000,000 shall be available for the procurement in Israel of 
defense articles and defense services, including research and 
development: Provided further, That of the funds appropriated by this 
paragraph, not less than $100,000,000 shall be available for assistance 
for Jordan: Provided further, That of the funds appropriated by this 
paragraph, a total of $12,000,000 shall be available for assistance for 
Estonia, Latvia, and Lithuania: Provided further, That funds 
appropriated by this paragraph shall be nonrepayable notwithstanding 
any requirement in section 23 of the Arms Export Control Act.
    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, $74,000,000: 
Provided, That these funds are available to subsidize gross obligations 
for the principal amount of direct loans of not to exceed $759,500,000: 
Provided further, That the rate of interest charged on such loans shall 
be not less than the current average market yield on outstanding 
marketable obligations of the United States of comparable maturities: 
Provided further, That of the funds appropriated under this paragraph, 
a total of $8,000,000 shall be available for assistance to Estonia, 
Latvia, and Lithuania: Provided further, That funds appropriated under 
this paragraph shall be made available for Greece and Turkey only on a 
loan basis, and the principal amount of direct loans for each country 
shall not exceed the following: $122,500,000 only for Greece and 
$175,000,000 only for Turkey.
    None of the funds made available under this heading shall be 
available to finance the procurement of defense articles, defense 
services, or design and construction services that are not sold by the 
United States Government under the Arms Export Control Act unless the 
foreign country proposing to make such procurements has first signed an 
agreement with the United States Government specifying the conditions 
under which such procurements may be financed with such funds: 
Provided, That all country and funding level increases in allocations 
shall be submitted through the regular notification procedures of 
section 515 of this Act: Provided further, That none of the funds 
appropriated under this heading shall be available for Sudan, Liberia, 
and Guatemala: Provided further, That funds made available under this 
heading may be used, notwithstanding any other provision of law, for 
activities related to the clearance of landmines and unexploded 
ordnance, 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 $23,250,000 of the funds appropriated under this heading may 
be obligated for necessary expenses, including the purchase of 
passenger motor vehicles for replacement only for use outside of the 
United States, for the general costs of administering military 
assistance and sales: Provided further, That not more than $355,000,000 
of funds realized pursuant to section 21(e)(1)(A) of the Arms Export 
Control Act may be obligated for expenses incurred by the Department of 
Defense during fiscal year 1998 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, $75,000,000: 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: Provided further, That none of the 
funds made available under this heading for the Multilateral Force and 
Observers until the Secretary of State submits a report to the 
Committees on Appropriations on the status of efforts to retain a new 
Director General of that organization.

               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), $60,000,000, to 
remain available until September 30, 1999.

       contribution to the international development association

    For payment to the International Development Association by the 
Secretary of the Treasury, $950,000,000, to remain available until 
expended, of which $150,000,000 shall be available to pay for the tenth 
replenishment: Provided, That none of the funds may be obligated or 
made available until the Secretary of the Treasury certifies to the 
Committees on Appropriations that all procurement restrictions imposed 
by the Interim Trust Fund have been lifted and that the balance 
available for open competition in such Fund approximates 
$1,000,000,000.

          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, $20,835,000, to remain available until expended.

              limitation on callable capital subscriptions

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

contribution to the enterprise for the americas multilateral investment 
                                  fund

    For payment to the Enterprise for the Americas Multilateral 
Investment Fund by the Secretary of the Treasury, for the United States 
contribution to the Fund to be administered by the Inter-American 
Development Bank, $30,000,000 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), $140,000,000, of which $40,000,000 shall be available for 
contributions previously due, to remain available until expended.

  contribution to the european bank for reconstruction and development

    For payment to the European Bank for Reconstruction and Development 
by the Secretary of the Treasury, $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.

                    North American Development Bank

    For payment to the North American Development Bank by the Secretary 
of the Treasury, for the United States share of the paid-in portion of 
the capital stock, $56,500,000, to remain available until expended: 
Provided, That none of the funds appropriated under this heading that 
are made available for the Community Adjustment and Investment Program 
shall be used for purposes other than those set out in the binational 
agreement establishing the Bank.

              limitation on callable capital subscriptions

    The United States Governor of the North American Development Bank 
may subscribe without fiscal year limitation to the callable capital 
portion of the United States share of the capital stock of the North 
American Development Bank in an amount not to exceed $318,750,000.

                    international monetary programs

                  loans to international monetary fund

    For loans to the International Monetary Fund under the New 
Arrangements to Borrow, the dollar equivalent of 2,462,000,000 Special 
Drawing Rights, to remain available until expended; in addition, up to 
the dollar equivalent of 4,250,000,000 Special Drawing Rights 
previously appropriated by the Act of November 30, 1983 (Public Law 98-
181), and the Act of October 23, 1962 (Public Law 87-872), for the 
General Arrangements to Borrow, may also be used for the New 
Arrangements to Borrow.

                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, $277,000,000: 
Provided, That none of the funds appropriated under this heading shall 
be made available for the United Nations Fund for Science and 
Technology: Provided further, That not less than $5,000,000 shall be 
made available to the World Food Program: Provided further, That none 
of the funds appropriated under this heading that are made available to 
the United Nations Population Fund (UNFPA) shall be made available for 
activities in the People's Republic of China: Provided further, That 
not more than $25,000,000 of the funds appropriated under this heading 
may be made available to the UNFPA: Provided further, That with respect 
to any funds appropriated under this heading that are made available to 
UNFPA, UNFPA shall be required to maintain such funds in a separate 
account and not commingle them with any other funds: Provided further, 
That none of the funds appropriated under this heading may be made 
available to the Korean Peninsula Energy Development Organization 
(KEDO) or the International Atomic Energy Agency (IAEA).

                      TITLE V--GENERAL PROVISIONS

                      enterprise fund restrictions

    Sec. 501. Section 201(l) of the Support for East European Democracy 
Act (22 U.S.C. 5421(l)) is amended to read as follows:
    ``(l) Limitation on Payments to Enterprise Fund Personnel.--
            ``(1) No part of the funds of an Enterprise Fund shall 
        inure to the benefit of any board member, officer, or employee 
        of such Enterprise Fund, except as salary or reasonable 
        compensation for services subject to paragraph (2).
            ``(2) An Enterprise Fund shall not pay compensation for 
        services to--
                    ``(A) any board member of the Enterprise Fund, 
                except for services as a board member; or
                    ``(B) any firm, association, or entity in which a 
                board member of the Enterprise Fund serves as partner, 
                director, officer, or employee.
            ``(3) Nothing in paragraph (2) shall preclude payment for 
        services performed before the date of enactment of this 
        subsection.''.

     prohibition of bilateral funding for international financial 
                              institutions

    Sec. 502. None of the funds contained in title II of this Act may 
be used to carry out the provisions of section 209(d) of the Foreign 
Assistance Act of 1961.

                    limitation on residence expenses

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

                         limitation on expenses

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

               limitation on representational allowances

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

                 prohibition on financing nuclear goods

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

        prohibition against direct funding for certain countries

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

                             military coups

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

                       transfers between accounts

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

                  deobligation/reobligation authority

    Sec. 510. (a) Amounts certified pursuant to section 1311 of the 
Supplemental Appropriations Act, 1955, as having been obligated against 
appropriations heretofore made under the authority of the Foreign 
Assistance Act of 1961 for the same general purpose as any of the 
headings under title II of this Act are, if deobligated, hereby 
continued available for the same period as the respective 
appropriations under such headings or until September 30, 1998, 
whichever is later, and for the same general purpose, and for countries 
within the same region as originally obligated: Provided, That the 
Appropriations Committees of both Houses of the Congress are notified 
fifteen days in advance of the reobligation of such funds in accordance 
with regular notification procedures of the Committees on 
Appropriations.
    (b) Obligated balances of funds appropriated to carry out section 
23 of the Arms Export Control Act as of the end of the fiscal year 
immediately preceding the current fiscal year are, if deobligated, 
hereby continued available during the current fiscal year for the same 
purpose under any authority applicable to such appropriations under 
this Act: Provided, That the authority of this subsection may not be 
used in fiscal year 1998.

                         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, 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.
    (b) None of the funds appropriated by this or any other Act to 
carry out chapter 1 of part I of the Foreign Assistance Act of 1961 
shall be available for any testing or breeding feasibility study, 
variety improvement or introduction, consultancy, publication, 
conference, or training in connection with the growth or production in 
a foreign country of an agricultural commodity for export which would 
compete with a similar commodity grown or produced in the United 
States: Provided, That this subsection shall not prohibit--
            (1) activities designed to increase food security in 
        developing countries where such activities will not have a 
        significant impact in the export of agricultural commodities of 
        the United States; or
            (2) research activities intended primarily to benefit 
        American producers.

                          surplus commodities

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

                       notification requirements

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

limitation on availability of funds for international organizations and 
                                programs

    Sec. 516. Notwithstanding any other provision of law or of this 
Act, none of the funds provided for ``International Organizations and 
Programs'' shall be available for the United States proportionate 
share, in accordance with section 307(c) of the Foreign Assistance Act 
of 1961, for any programs identified in section 307, or for Libya, 
Iran, or, at the discretion of the President, Communist countries 
listed in section 620(f) of the Foreign Assistance Act of 1961, as 
amended: Provided, That, subject to the regular notification procedures 
of the Committees on Appropriations, funds appropriated under this Act 
or any previously enacted Act making appropriations for foreign 
operations, export financing, and related programs, which are returned 
or not made available for organizations and programs because of the 
implementation of this section or any similar provision of law, shall 
remain available for obligation through September 30, 1999.

              economic support fund assistance for israel

    Sec. 517. The Congress finds that progress on the peace process in 
the Middle East is vitally important to United States security 
interests in the region. The Congress recognizes that, in fulfilling 
its obligations, Israel has incurred severe economic burdens. 
Furthermore, the Congress recognizes that an economically and 
militarily secure Israel serves the security interests of the United 
States, for a secure Israel is an Israel which has the incentive and 
confidence to continue pursuing the peace process. Therefore, the 
Congress declares that, subject to the availability of appropriations, 
it is the policy and the intention of the United States that the funds 
provided in annual appropriations for the Economic Support Fund which 
are allocated to Israel shall not be less than the annual debt 
repayment (interest and principal) from Israel to the United States 
Government in recognition that such a principle serves United States 
interests in the region.

   prohibition on funding for abortions and involuntary sterilization

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

        limitations on funding for international family planning

    Sec. 519. In determining eligibility for assistance from funds 
appropriated to carry out section 104 of the Foreign Assistance Act of 
1961, nongovernmental and multilateral organizations shall not be 
subjected to requirements more restrictive than the requirements 
applicable to foreign governments for such assistance.

                         reporting requirement

    Sec. 520. Section 25 of the Arms Export Control Act is amended--
            (1) in subsection (a), by striking ``Congress'' and 
        inserting in lieu thereof ``appropriate congressional 
        committees'';
            (2) in subsection (b), by striking ``the Committee on 
        Foreign Relations of the Senate or the Committee on Foreign 
        Affairs of the House of Representatives'' and inserting in lieu 
        thereof ``any of the congressional committees described in 
        subsection (e)''; and
            (3) by adding the following subsection:
    ``(e) As used in 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.''.

                   special notification requirements

    Sec. 521. None of the funds appropriated in this Act shall be 
obligated or expended for Colombia, Guatemala (except that this 
provision shall not apply to development assistance for Guatemala), 
Dominican Republic, Haiti, Liberia, Pakistan, Peru, Serbia, Sudan, or 
the Democratic Republic of Congo except as provided through the regular 
notification procedures of the Committee on Appropriations.

              definition of program, project, and activity

    Sec. 522. For the purpose of this Act, ``program, project, and 
activity'' shall be defined at the Appropriations Act account level and 
shall include all Appropriations and Authorizations Acts earmarks, 
ceilings, and limitations with the exception that for the following 
accounts: Economic Support Fund and Foreign Military Financing Program, 
``program, project, and activity'' shall also be considered to include 
country, regional, and central program level funding within each such 
account; for the development assistance accounts of the Agency for 
International Development ``program, project, and activity'' shall also 
be considered to include central program level funding, either as (1) 
justified to the Congress, or (2) allocated by the executive branch in 
accordance with a report, to be provided to the Committees on 
Appropriations within thirty days of enactment of this Act, as required 
by section 653(a) of the Foreign Assistance Act of 1961.

               child survival, aids, and other activities

    Sec. 523. 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 activities or activities relating to 
research on, and the treatment and control of, acquired immune 
deficiency syndrome may be made available notwithstanding any provision 
of law that restricts assistance to foreign countries: Provided 
further, That funds appropriated by this Act that are made available 
for family planning activities may be made available notwithstanding 
section 512 of this Act and section 620(q) of the Foreign Assistance 
Act of 1961.

       prohibition against indirect funding to certain countries

    Sec. 524. 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. 525. Section 61(a) of the Arms Export Control Act is amended 
by striking out ``1997'' and inserting in lieu thereof ``1998''.

                notification on excess defense equipment

    Sec. 526. 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. 527. Funds appropriated by this Act may be obligated and 
expended notwithstanding section 10 of Public Law 91-672 and section 15 
of the State Department Basic Authorities Act of 1956.

       prohibition on bilateral assistance to terrorist countries

    Sec. 528. (a) Notwithstanding any other provision of law, funds 
appropriated for bilateral assistance under any heading of this Act and 
funds appropriated under any such heading in a provision of law enacted 
prior to enactment of this Act, shall not be made available to any 
country which the President determines--
            (1) grants sanctuary from prosecution to any individual or 
        group which has committed an act of international terrorism, or
            (2) otherwise supports international terrorism.
      (b) The President may waive the application of subsection (a) to 
a country if the President determines that national security or 
humanitarian reasons justify such waiver. The President shall publish 
each waiver in the Federal Register and, at least fifteen days before 
the waiver takes effect, shall notify the Committees on Appropriations 
of the waiver (including the justification for the waiver) in 
accordance with the regular notification procedures of the Committees 
on Appropriations.

                 commercial leasing of defense articles

    Sec. 529. 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. 530. 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. 531. 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. 532. 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. 533. (a) Separate Accounts for Local Currencies.--(1) If 
assistance is furnished to the government of a foreign country under 
chapters 1 and 10 of part I or chapter 4 of part II of the Foreign 
Assistance Act of 1961 under agreements which result in the generation 
of local currencies of that country, the Administrator of the Agency 
for International Development shall--
            (A) require that local currencies be deposited in a 
        separate account established by that government;
            (B) enter into an agreement with that government which sets 
        forth--
                    (i) the amount of the local currencies to be 
                generated, and
                    (ii) the terms and conditions under which the 
                currencies so deposited may be utilized, consistent 
                with this section; and
            (C) establish by agreement with that government the 
        responsibilities of the Agency for International Development 
        and that government to monitor and account for deposits into 
        and disbursements from the separate account.
    (2) Uses of Local Currencies.--As may be agreed upon with the 
foreign government, local currencies deposited in a separate account 
pursuant to subsection (a), or an equivalent amount of local 
currencies, shall be used only--
            (A) to carry out chapters 1 or 10 of part I or chapter 4 of 
        part II (as the case may be), for such purposes as--
                    (i) project and sector assistance activities, or
                    (ii) debt and deficit financing, or
            (B) for the administrative requirements of the United 
        States Government.
    (3) Programming Accountability.--The Agency for International 
Development shall take all necessary steps to ensure that the 
equivalent of the local currencies disbursed pursuant to subsection 
(a)(2)(A) from the separate account established pursuant to subsection 
(a)(1) are used for the purposes agreed upon pursuant to subsection 
(a)(2).
    (4) Termination of Assistance Programs.--Upon termination of 
assistance to a country under chapters 1 or 10 of part I or chapter 4 
of part II (as the case may be), any unencumbered balances of funds 
which remain in a separate account established pursuant to subsection 
(a) shall be disposed of for such purposes as may be agreed to by the 
government of that country and the United States Government.
    (5) Conforming Amendments.--The provisions of this subsection shall 
supersede the tenth and eleventh provisos contained under the heading 
``Sub-Saharan Africa, Development Assistance'' as included in the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1989 and sections 531(d) and 609 of the Foreign 
Assistance Act of 1961.
    (6) Reporting Requirement.--The Administrator of the Agency for 
International Development shall report on an annual basis as part of 
the justification documents submitted to the Committees on 
Appropriations on the use of local currencies for the administrative 
requirements of the United States Government as authorized in 
subsection (a)(2)(B), and such report shall include the amount of local 
currency (and United States dollar equivalent) used and/or to be used 
for such purpose in each applicable country.
    (b) Separate Accounts for Cash Transfers.--(1) If assistance is 
made available to the government of a foreign country, under chapters 1 
or 10 of part I or chapter 4 of part II of the Foreign Assistance Act 
of 1961, as cash transfer assistance or as nonproject sector 
assistance, that country shall be required to maintain such funds in a 
separate account and not commingle them with any other funds.
    (2) Applicability of Other Provisions of Law.--Such funds may be 
obligated and expended notwithstanding provisions of law which are 
inconsistent with the nature of this assistance including provisions 
which are referenced in the Joint Explanatory Statement of the 
Committee of Conference accompanying House Joint Resolution 648 (H. 
Report No. 98-1159).
    (3) Notification.--At least fifteen days prior to obligating any 
such cash transfer or nonproject sector assistance, the President shall 
submit a notification through the regular notification procedures of 
the Committees on Appropriations, which shall include a detailed 
description of how the funds proposed to be made available will be 
used, with a discussion of the United States interests that will be 
served by the assistance (including, as appropriate, a description of 
the economic policy reforms that will be promoted by such assistance).
    (4) Exemption.--Nonproject sector assistance funds may be exempt 
from the requirements of subsection (b)(1) only through the 
notification procedures of the Committees on Appropriations.

  compensation for united states executive directors to international 
                         financial institutions

    Sec. 534. (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. 535. 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. 536. 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

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

                  impact on jobs in the united states

    Sec. 538. None of the funds appropriated by this Act may be 
obligated or expended to provide--
            (a) any financial incentive to a business enterprise 
        currently located in the United States for the purpose of 
        inducing such an enterprise to relocate outside the United 
        States if such incentive or inducement is likely to reduce the 
        number of employees of such business enterprise in the United 
        States because United States production is being replaced by 
        such enterprise outside the United States;
            (b) assistance for the purpose of establishing or 
        developing in a foreign country any export processing zone or 
        designated area in which the tax, tariff, labor, environment, 
        and safety laws of that country do not apply, in part or in 
        whole, to activities carried out within that zone or area, 
        unless the President determines and certifies that such 
        assistance is not likely to cause a loss of jobs within the 
        United States; or
            (c) assistance for any project or activity that contributes 
        to the violation of internationally recognized workers rights, 
        as defined in section 502(a)(4) of the Trade Act of 1974, of 
        workers in the recipient country, including any designated zone 
        or area in that country: Provided, That in recognition that the 
        application of this subsection should be commensurate with the 
        level of development of the recipient country and sector, the 
        provisions of this subsection shall not preclude assistance for 
        the informal sector in such country, micro and small-scale 
        enterprise, and smallholder agriculture.

    restrictions on the termination of sanctions against serbia and 
                               montenegro

    Sec. 539. (a) Restrictions.--Notwithstanding any other provision of 
law, no sanction, prohibition, or requirement described in section 1511 
of the National Defense Authorization Act for Fiscal Year 1994 (Public 
Law 103-160), with respect to Serbia or Montenegro, may cease to be 
effective, unless--
            (1) the President first submits to the Congress a 
        certification described in subsection (b); and
            (2) the requirements of section 1511 of that Act are met.
    (b) Certification.--A certification described in this subsection is 
a certification that--
            (1) there is substantial progress toward--
                    (A) the realization of a separate identity for 
                Kosova and the right of the people of Kosova to govern 
                themselves; or
                    (B) the creation of an international protectorate 
                for Kosova;
            (2) there is substantial improvement in the human rights 
        situation in Kosova;
            (3) international human rights observers are allowed to 
        return to Kosova; and
            (4) the elected government of Kosova is permitted to meet 
        and carry out its legitimate mandate as elected representatives 
        of the people of Kosova.
    (c) Waiver Authority.--The President may waive the application in 
whole or in part, of subsection (a) if the President certifies to the 
Congress that the President has determined that the waiver is necessary 
to meet emergency humanitarian needs or to achieve a negotiated 
settlement of the conflict in Bosnia and Herzegovina that is acceptable 
to the parties.

                          special authorities

    Sec. 540. (a) Funds appropriated in title II of this Act that are 
made available for Afghanistan, Lebanon, and for victims of war, 
displaced children, displaced Burmese, humanitarian assistance for 
Romania, and humanitarian assistance for the peoples of Kosova, may be 
made available notwithstanding any other provision of law: Provided, 
That any such funds that are made available for Cambodia shall be 
subject to the provisions of section 531(e) of the Foreign Assistance 
Act of 1961 and section 906 of the International Security and 
Development Cooperation Act of 1985.
    (b) Funds appropriated by this Act to carry out the provisions of 
sections 103 through 106 of the Foreign Assistance Act of 1961 may be 
used, notwithstanding any other provision of law, for the purpose of 
supporting tropical forestry and energy programs aimed at reducing 
emissions of greenhouse gases, and for the purpose of supporting 
biodiversity conservation activities: Provided, That such assistance 
shall be subject to sections 116, 502B, and 620A of the Foreign 
Assistance Act of 1961.
    (c) During fiscal year 1998, the President may use up to 
$40,000,000 under the authority of section 451 of the Foreign 
Assistance Act of 1961, notwithstanding the funding ceiling contained 
in subsection (a) of that section.
    (d) The Agency for International Development may employ personal 
services contractors, notwithstanding any other provision of law, for 
the purpose of administering programs for the West Bank and Gaza.

        policy on terminating the arab league boycott of israel

    Sec. 541. It is the sense of the Congress that--
            (1) the Arab League countries should immediately and 
        publicly renounce the primary boycott of Israel and the 
        secondary and tertiary boycott of American firms that have 
        commercial ties with Israel; and
            (2) the President should--
                    (A) take more concrete steps to encourage 
                vigorously Arab League countries to renounce publicly 
                the primary boycotts of Israel and the secondary and 
                tertiary boycotts of American firms that have 
                commercial relations with Israel as a confidence-
                building measure;
                    (B) take into consideration the participation of 
                any recipient country in the primary boycott of Israel 
                and the secondary and tertiary boycotts of American 
                firms that have commercial relations with Israel when 
                determining whether to sell weapons to said county;
                    (C) report to Congress on the specific steps being 
                taken by the President to bring about a public 
                renunciation of the Arab primary boycott of Israel and 
                the secondary and tertiary boycotts of American firms 
                that have commercial relations with Israel; and
                    (D) encourage the allies and trading partners of 
                the United States to enact laws prohibiting businesses 
                from complying with the boycott and penalizing 
                businesses that do comply.

                       anti-narcotics activities

    Sec. 542. (a) Of the funds appropriated or otherwise made available 
by this Act for ``Economic Support Fund'', assistance may be provided 
to strengthen the administration of justice in countries in Latin 
America and the Caribbean and in other regions consistent with the 
provisions of section 534(b) of the Foreign Assistance Act of 1961, 
except that programs to enhance protection of participants in judicial 
cases may be conducted notwithstanding section 660 of that Act.
    (b) Funds made available pursuant to this section may be made 
available notwithstanding section 534(c) and the second and third 
sentences of section 534(e) of the Foreign Assistance Act of 1961. 
Funds made available pursuant to subsection (a) for Bolivia, Colombia 
and Peru may be made available notwithstanding section 534(c) and the 
second sentence of section 534(e) of the Foreign Assistance Act of 
1961.

                       eligibility for assistance

    Sec. 543. (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, and from funds appropriated under the heading ``Assistance for 
Eastern Europe and the Baltic States'': 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 1998, 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. 544. (a) Funds appropriated by this Act which are earmarked 
may be reprogrammed for other programs within the same account 
notwithstanding the earmark if compliance with the earmark is made 
impossible by operation of any provision of this or any other Act or, 
with respect to a country with which the United States has an agreement 
providing the United States with base rights or base access in that 
country, if the President determines that the recipient for which funds 
are earmarked has significantly reduced its military or economic 
cooperation with the United States since enactment of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1991; however, before exercising the authority of this subsection with 
regard to a base rights or base access country which has significantly 
reduced its military or economic cooperation with the United States, 
the President shall consult with, and shall provide a written policy 
justification to the Committees on Appropriations: Provided, That any 
such reprogramming shall be subject to the regular notification 
procedures of the Committees on Appropriations: Provided further, That 
assistance that is reprogrammed pursuant to this subsection shall be 
made available under the same terms and conditions as originally 
provided.
    (b) In addition to the authority contained in subsection (a), the 
original period of availability of funds appropriated by this Act and 
administered by the Agency for International Development that are 
earmarked for particular programs or activities by this or any other 
Act shall be extended for an additional fiscal year if the 
Administrator of such agency determines and reports promptly to the 
Committees on Appropriations that the termination of assistance to a 
country or a significant change in circumstances makes it unlikely that 
such earmarked funds can be obligated during the original period of 
availability: Provided, That such earmarked funds that are continued 
available for an additional fiscal year shall be obligated only for the 
purpose of such earmark.

                         ceilings and earmarks

    Sec. 545. Ceilings and earmarks contained in this Act shall not be 
applicable to funds or authorities appropriated or otherwise made 
available by any subsequent Act unless such Act specifically so 
directs.

                 prohibition on publicity or propaganda

    Sec. 546. No part of any appropriation contained in this Act shall 
be used for publicity or propaganda purposes within the United States 
not authorized before the date of enactment of this Act by the 
Congress.

           prohibition of payments to united nations members

    Sec. 547. 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. 548. 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. 549. 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. 550. (a) None of the funds appropriated or otherwise made 
available by this Act may be available to any foreign government which 
provides lethal military equipment to a country the government of which 
the Secretary of State has determined is a terrorist government for 
purposes of section 40(d) of the Arms Export Control Act. The 
prohibition under this section with respect to a foreign government 
shall terminate 12 months after that government ceases to provide such 
military equipment. This section applies with respect to lethal 
military equipment provided under a contract entered into after the 
date of enactment of this Act.
    (b) Assistance restricted by subsection (a) or any other similar 
provision of law, may be furnished if the President determines that 
furnishing such assistance is important to the national interests of 
the United States.
    (c) Whenever the waiver of subsection (b) is exercised, the 
President shall submit to the appropriate congressional committees a 
report with respect to the furnishing of such assistance. Any such 
report shall include a detailed explanation of the assistance to be 
provided, including the estimated dollar amount of such assistance, and 
an explanation of how the assistance furthers United States national 
interests.

 withholding of assistance for parking fines owed by foreign countries

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

                 export financing transfer authorities

    Sec. 553. Not to exceed 5 per centum of any appropriation other 
than for administrative expenses made available for fiscal year 1998 
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 per centum by any such transfer: Provided, 
That the exercise of such authority shall be subject to the regular 
notification procedures of the Committees on Appropriations.

                     war crimes tribunals drawdown

    Sec. 554. 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 sixty days after the date 
of enactment of this Act, and every one hundred eighty 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. 555. 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 clearing 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. 556. 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. 557. 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.

            purchase of american-made equipment and products

    Sec. 558. (a) To the greatest extent practicable, assistance 
provided or used for purchases should use American equipment, services, 
commodities, and products.
    (b) Notice Requirement.--In providing financial assistance to, or 
entering into any contract with, any entity using funds made available 
in this Act, the head of each Federal agency, to the greatest extent 
practicable, shall provide to such entity a notice describing the 
statement made in subsection (a) by the Congress.

                  special debt relief for the poorest

    Sec. 559. (a) Authority to Reduce Debt.--The President may reduce 
amounts owed to the United States (or any agency of the United States) 
by an eligible country as a result of--
            (1) guarantees issued under sections 221 and 222 of the 
        Foreign Assistance Act of 1961; or
            (2) credits extended or guarantees issued under the Arms 
        Export Control Act.
    (b) Limitations.--
            (1) The authority provided by subsection (a) may be 
        exercised only to implement multilateral official debt relief 
        and referendum agreements, commonly referred to as ``Paris Club 
        Agreed Minutes''.
            (2) The authority provided by subsection (a) may be 
        exercised only in such amounts or to such extent as is provided 
        in advance by appropriations Acts.
            (3) The authority provided by subsection (a) may be 
        exercised only with respect to countries with heavy debt 
        burdens that are eligible to borrow from the International 
        Development Association, but not from the International Bank 
        for Reconstruction and Development, commonly referred to as 
        ``IDA-only'' countries.
    (c) Conditions.--The authority provided by subsection (a) may be 
exercised only with respect to a country whose government--
            (1) does not have an excessive level of military 
        expenditures;
            (2) has not repeatedly provided support for acts of 
        international terrorism;
            (3) is not failing to cooperate on international narcotics 
        control matters;
            (4) (including its military or other security forces) does 
        not engage in a consistent pattern of gross violations of 
        internationally recognized human rights; and
            (5) is not ineligible for assistance because of the 
        application of section 527 of the Foreign Relations 
        Authorization Act, fiscal years 1994 and 1995.
    (d) Availability of Funds.--The authority provided by subsection 
(a) may be used only with regard to funds appropriated by this Act 
under the heading ``Debt restructuring''.
    (e) Certain Prohibitions Inapplicable.--A reduction of debt 
pursuant to subsection (a) shall not be considered assistance for 
purposes of any provision of law limiting assistance to a country. The 
authority provided by subsection (a) may be exercised notwithstanding 
section 620(r) of the Foreign Assistance Act of 1961.

             authority to engage in debt buybacks or sales

    Sec. 560. (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 per centum 
                of the price paid for such debt by such eligible 
                country, or the difference between the price paid for 
                such debt and the face value of such debt, to support 
                activities that link conservation and sustainable use 
                of natural resources with local community development, 
                and child survival and other child development, in a 
                manner consistent with sections 707 through 710 of the 
                Foreign Assistance Act of 1961, if the sale, reduction, 
                or cancellation would not contravene any term or 
                condition of any prior agreement relating to such loan.
            (2) Terms and conditions.--Notwithstanding any other 
        provision of law, the President shall, in accordance with this 
        section, establish the terms and conditions under which loans 
        may be sold, reduced, or canceled pursuant to this section.
            (3) Administration.--The Facility, as defined in section 
        702(8) of the Foreign Assistance Act of 1961, shall notify the 
        administrator of the agency primarily responsible for 
        administering part I of the Foreign Assistance Act of 1961 of 
        purchasers that the President has determined to be eligible, 
        and shall direct such agency to carry out the sale, reduction, 
        or cancellation of a loan pursuant to this section. Such agency 
        shall make an adjustment in its accounts to reflect the sale, 
        reduction, or cancellation.
            (4) Limitation.--The authorities of this subsection shall 
        be available only to the extent that appropriations for the 
        cost of the modification, as defined in section 502 of the 
        Congressional Budget Act of 1974, are made in advance.
    (b) Deposit of Proceeds.--The proceeds from the sale, reduction, or 
cancellation of any loan sold, reduced, or canceled pursuant to this 
section shall be deposited in the United States Government account or 
accounts established for the repayment of such loan.
    (c) Eligible Purchasers.--A loan may be sold pursuant to subsection 
(a)(1)(A) only to a purchaser who presents plans satisfactory to the 
President for using the loan for the purpose of engaging in debt-for-
equity swaps, debt-for-development swaps, or debt-for-nature swaps.
    (d) Debtor Consultations.--Before the sale to any eligible 
purchaser, or any reduction or cancellation pursuant to this section, 
of any loan made to an eligible country, the President should consult 
with the country concerning the amount of loans to be sold, reduced, or 
canceled and their uses for debt-for-equity swaps, debt-for-development 
swaps, or debt-for-nature swaps.
    (e) Availability of Funds.--The authority provided by subsection 
(a) may be used only with regard to funds appropriated by this Act 
under the heading ``Debt restructuring''.

                                liberia

    Sec. 561. Funds appropriated by this Act may be made available for 
assistance for Liberia notwithstanding section 620(q) of the Foreign 
Assistance Act of 1961 and section 512 of this Act.

                               guatemala

    Sec. 562. (a) Funds provided in this Act may be made available for 
the Guatemalan military forces, and the restrictions on Guatemala under 
the headings ``International Military Education and Training'' and 
``Foreign Military Financing Program'' shall not apply, only if the 
President determines and certifies to the Congress that the Guatemalan 
military is cooperating fully with efforts to resolve human rights 
abuses which elements of the Guatemalan military forces are alleged to 
have committed, ordered or attempted to thwart the investigation of, 
and with efforts to implement a peace settlement.
    (b) The prohibition contained in subsection (a) shall not apply to 
funds made available to implement a ceasefire or peace agreement.
    (c) Any funds made available pursuant to subsections (a) and (b) 
for international military education and training may only be for 
expanded international military education and training.

          sanctions against countries harboring war criminals

    Sec. 563. (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, or territory within its control, for the 
purpose of evading prosecution, where such persons have been indicted 
by the International Criminal Tribunal for Rwanda.

                   limitation on assistance for haiti

    Sec. 564. (a) Limitation.--None of the funds appropriated or 
otherwise made available by this Act, may be provided to the Government 
of Haiti until the President reports to Congress that--
            (1) the Government is conducting thorough investigations of 
        extrajudicial and political killings; and
            (2) the Government is cooperating with United States 
        authorities in the investigations of political and 
        extrajudicial killings.
    (b) Nothing in this section shall be construed to restrict the 
provision of humanitarian, development, or electoral assistance.
    (c) The President may waive the requirements of this section on a 
semiannual basis if he determines and certifies to the appropriate 
committees of Congress that it is in the national interest of the 
United States.

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

    Sec. 565. (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 1996.
    (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)).

                           burma labor report

    Sec. 566. Not later than one hundred twenty days after enactment of 
this Act, the Secretary of Labor shall provide to the Committees on 
Appropriations a report addressing labor practices in Burma: Provided, 
That the report shall provide comprehensive details on child labor 
practices, worker's rights, force relocation of laborers, forced labor 
performed to support the tourism industry, and forced labor performed 
in conjunction with, and in support of, the Yadonna gas pipeline: 
Provided further, That the report should discuss whether the State Law 
and Order Restoration Council (SLORC) is in compliance with 
international labor standards: Provided further, That the report should 
provide considerable detail regarding the U.S. government's efforts to 
address the issue of forced labor in Burma.

                                 haiti

    Sec. 567. The Government of Haiti shall be eligible to purchase 
defense articles and services under the Arms Export Control Act (22 
U.S.C. 2751 et seq.), for the civilian-led Haitian National Police and 
Coast Guard: Provided, That the authority provided by this section 
shall be subject to the regular notification procedures of the 
Committees on Appropriations.

              international financial institution policies

    Sec. 568. The Secretary of the Treasury shall instruct the United 
States Executive Directors of the International Bank for Reconstruction 
and Development and the International Development Association to use 
the voice and vote of the United States to strongly encourage their 
respective institutions to--
            (1) provide timely public information on procurement 
        opportunities available to United States suppliers, with a 
        special emphasis on small business; and
            (2) systematically consult with local communities on the 
        potential impact of loans as part of the normal lending 
        process, and expand the participation of affected peoples and 
        nongovernmental organizations in decisions on the selection, 
        design and implementation of policies and projects.

              limitation on assistance to security forces

    Sec. 569. 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 to believe 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 steps to bring the responsible 
members of the security forces unit to justice.

                                cambodia

    Sec. 570. The Secretary of the Treasury shall 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, 
unless the Government of Cambodia is taking significant steps to: (1) 
end political violence and intimidation of opposition party members; 
(2) establish an independent election commission; (3) protect the 
rights of voters, candidates and election participants by establishing 
electoral laws and procedures guaranteeing freedom of speech and 
assembly; and (4) eliminate official corruption and collaboration with 
narcotics smugglers.

      limitations on transfer of military equipment to east timor

    Sec. 571. In any agreement between the United States and the 
Government of Indonesia for the sale or transfer of any lethal 
equipment or helicopter pursuant to the authority of this Act or any 
other Act, the agreement shall state that such items will not be used 
in East Timor.

                        transparency of budgets

    Sec. 572. Section 576(a)(1) of the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1997, as contained 
in Public Law 104-208, is amended to read as follows:
            ``(1) does not have in place a functioning system for 
        reporting to civilian authorities audits of receipts and 
        expenditures that fund activities of the armed forces and 
        security forces;''.
    Section 576(a)(2) of the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 1997, as contained in Public Law 
104-208, is amended to read as follows:
            ``(2) has not provided to the institution information about 
        the audit process requested by the institution.''.

 restrictions on funding to countries providing sanctuary to indicted 
                             war criminals

    Sec. 573. (a) Bilateral Assistance.--None of the funds made 
available by this or any prior Act making appropriations for foreign 
operations, export promotion and related programs, may be provided for 
any country described in subsection (d).
    (b) Multilateral Assistance.--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 described in subsection (d).
    (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; or
                    (C) assistance for physical infrastructure projects 
                involving activities in both a sanctioned country and a 
                nonsanctioned contiguous country, if the nonsanctioned 
                country is the primary beneficiary.
            (2) Further limitations.--Notwithstanding paragraph (1)--
                    (A) no assistance may be made available by this 
                Act, or any other Act making appropriations for foreign 
                operations, export promotion and related programs, for 
                a program, project, or activity in any country 
                described in subsection (d) in which an indicted war 
                criminal has any financial or material interest or 
                through any organization in which the indicted 
                individual is affiliated; and
                    (B) no assistance (other than emergency foods or 
                medical assistance or demining assistance) may be made 
                available by this Act, or any other Act making 
                appropriations for foreign operations, export promotion 
                and related programs to any program, project, or 
                activity in any area of any country described in 
                subsection (d) in which local authorities are not 
                complying with the provisions of Article IX and Annex 
                4, Article II of the Dayton Agreement relating to war 
                crimes and the Tribunal, or with the provisions of 
                Annex 7 of the Dayton Agreement relating to the rights 
                of refugees and displaced persons to return to their 
                homes of origin.
    (d) Sanctioned Countries.--A country described in this section is a 
country the authorities of which fail to apprehend and transfer to the 
Tribunal all persons in territory that is under their effective control 
who have been indicted by the Tribunal.
    (e) Waiver.--
            (1) Authority.--The President may waive the application of 
        subsection (a) or subsection (b) with respect to a country if 
        the President determines and certifies to the appropriate 
        committees of Congress within six months after the date of 
        enactment of this Act that a majority of the indicted persons 
        who are within territory that is under the effective control of 
        the country have been arrested and transferred to the Tribunal.
            (2) Period of effectiveness.--Any waiver made pursuant to 
        this subsection shall be effective for a period of six months.
    (f) Termination of Sanctions.--The sanctions imposed pursuant to 
subsection (a) or subsection (b) with respect to a country shall cease 
to apply only if the President determines and certifies to Congress 
that the authorities of that country have apprehended and transferred 
to the Tribunal all persons in territory that is under their effective 
control who have been indicted by the Tribunal.
    (g) Definitions.--As used in this section--
            (1) Country.--The term ``country'' shall not include Bosnia 
        and Herzegovina, and the provisions of this Act shall be 
        applied separately to its constituent entities of Republika 
        Srpska and the Federation of Bosnia and Herzegovina.
            (2) 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.
            (3) Democratization assistance.--The term ``democratization 
        assistance'' includes electoral assistance and assistance used 
        in establishing the institutions of a democratic and civil 
        society.
            (4) Humanitarian assistance.--The term ``humanitarian 
        assistance'' includes assistance for food, demining, refugees, 
        housing, education, health care, and other social services.
            (5) Tribunal.--The term ``Tribunal'' means the 
        International Criminal Tribunal for the Former Yugoslavia.

              extension of certain adjudication provisions

    Sec. 574. The Foreign Operations, Export Financing, and Related 
Programs Appropriations Act, 1990 (Public Law 101-167) is amended--
            (1) in section 599D (8 U.S.C. 1157 note)--
                    (A) in subsection (b)(3), by striking ``and 1997'' 
                and inserting ``1997, and 1998''; and
                    (B) in subsection (e), by striking ``October 1, 
                1997'' each place it appears and inserting ``October 1, 
                1998''; and
            (2) in section 599E (8 U.S.C. 1255 note) in subsection 
        (b)(2), by striking ``September 30, 1997'' and inserting 
        ``September 30, 1998''.
    Titles I through V of this Act may be cited as the ``Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1998''.

            Passed the Senate       (legislative day,      ), 1997.

            Attest:

                                                    GARY SISCO,

                                                             Secretary.


                                                        Calendar No. 94

105th CONGRESS

  1st Session

                                 S. 955

                          [Report No. 105-35]

_______________________________________________________________________

                                 A BILL

  Making appropriations for foreign operations, export financing, and 
related programs for the fiscal year ending September 30, 1998, and for 
                            other purposes.

_______________________________________________________________________

                             June 24, 1997

                 Read twice and placed on the calendar