[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 375 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 375

  To provide assistance to East Timor to facilitate the transition of 
      East Timor to an independent nation, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 15, 2001

   Mr. Kennedy (for himself, Mr. Chafee, Mr. Leahy, Mr. Harkin, Mr. 
    Feingold, Mr. Reed, Mr. Jeffords, and Mr. Kerry) introduced the 
 following bill; which was read twice and referred to the Committee on 
                           Foreign Relations

_______________________________________________________________________

                                 A BILL


 
  To provide assistance to East Timor to facilitate the transition of 
      East Timor to an independent nation, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``East Timor Transition to 
Independence Act of 2001''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) On August 30, 1999, the East Timorese people voted 
        overwhelmingly in favor of independence from Indonesia. Anti-
        independence militias, with the support of the Indonesian 
        military, attempted to prevent then retaliated against this 
        vote by launching a campaign of terror and violence, displacing 
        500,000 people and murdering at least 1,000 people.
            (2) The violent campaign devastated East Timor's 
        infrastructure, destroyed or severely damaged 60 to 80 percent 
        of public and private property, and resulted in the collapse of 
        virtually all vestiges of government, public services and 
        public security.
            (3) The Australian-led International Force for East Timor 
        (INTERFET) entered East Timor in September 1999 and 
        successfully restored order. On October 25, 1999, the United 
        Nations Transitional Administration for East Timor (UNTAET) 
        began to provide overall administration of East Timor, guide 
        the people of East Timor in the establishment of a new 
        democratic government, and maintain security and order.
            (4) UNTAET and the East Timorese leadership currently 
        anticipate that East Timor will become an independent nation as 
        early as late 2001.
            (5) East Timor is one of the poorest places in Asia. A 
        large percentage of the population live below the poverty line, 
        only 20 percent of East Timor's population is literate, most of 
        East Timor's people remain unemployed, the annual per capita 
        Gross National Product is $340, and life expectancy is only 56 
        years.
            (6) The World Bank and the United Nations have estimated 
        that it will require $300,000,000 in development assistance 
        over the next three years to meet East Timor's basic 
        development needs.

SEC. 3. SENSE OF CONGRESS RELATING TO SUPPORT FOR EAST TIMOR.

    It is the sense of Congress that the United States should--
            (1) facilitate East Timor's transition to independence, 
        support formation of broad-based democracy in East Timor, help 
        lay the groundwork for East Timor's economic recovery, and 
        strengthen East Timor's security;
            (2) help ensure that the nature and pace of the economic 
        transition in East Timor is consistent with the needs and 
        priorities of the East Timorese people, that East Timor 
        develops a strong and independent economic infrastructure, and 
        that the incomes of the East Timorese people rise accordingly;
            (3) begin to lay the groundwork, prior to East Timor's 
        independence, for an equitable bilateral trade and investment 
        relationship;
            (4)(A) officially open a diplomatic mission to East Timor 
        as soon as possible;
            (B) recognize East Timor, and establish diplomatic 
        relations with East Timor, upon its independence; and
            (C) ensure that a fully functioning, fully staffed, 
        adequately resourced, and securely maintained United States 
        diplomatic mission is accredited to East Timor upon its 
        independence;
            (5) support efforts by the United Nations and East Timor to 
        ensure justice and accountability related to past atrocities in 
        East Timor through--
                    (A) United Nations investigations;
                    (B) development of East Timor's judicial system, 
                including appropriate technical assistance to East 
                Timor from the Department of Justice, the Federal 
                Bureau of Investigation, and the Drug Enforcement 
                Administration;
                    (C) the possible establishment of an international 
                tribunal for East Timor; and
                    (D) sharing with the United Nations Transitional 
                Administration for East Timor (UNTAET) and East 
                Timorese investigators any unclassified information 
                relevant to past atrocities in East Timor gathered by 
                the United States Government; and
            (6)(A) as an interim step, support observer status for an 
        official delegation from East Timor to observe and participate, 
        as appropriate, in all deliberations of the Asia-Pacific 
        Economic Cooperation (APEC) group, the Association of Southeast 
        Asian Nations (ASEAN), and other international institutions; 
        and
            (B) after East Timor achieves independence, support full 
        membership for East Timor in these and other international 
        institutions, as appropriate.

SEC. 4. BILATERAL ASSISTANCE.

    (a) Authority.--The President, acting through the Administrator of 
the United States Agency for International Development, is authorized 
to--
            (1) support the development of civil society, including 
        nongovernmental organizations in East Timor;
            (2) promote the development of an independent news media;
            (3) support job creation, including support for small 
        business and microenterprise programs, environmental 
        protection, sustainable development, development of East 
        Timor's health care infrastructure, educational programs, and 
        programs strengthening the role of women in society;
            (4) promote reconciliation, conflict resolution, and 
        prevention of further conflict with respect to East Timor, 
        including establishing accountability for past gross human 
        rights violations;
            (5) support the voluntary and safe repatriation and 
        reintegration of refugees into East Timor; and
            (6) support political party development, voter education, 
        voter registration, and other activities in support of free and 
        fair elections in East Timor.
    (b) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the President to carry out this section $30,000,000 for each of 
        the fiscal years 2002, 2003, and 2004.
            (2) Availability.--Amounts appropriated pursuant to the 
        authorization of appropriations under paragraph (1) are 
        authorized to remain available until expended.

SEC. 5. MULTILATERAL ASSISTANCE.

    The Secretary of the Treasury shall instruct the United States 
executive director at each international financial institution to which 
the United States is a member to use the voice, vote, and influence of 
the United States to support economic and democratic development in 
East Timor.

SEC. 6. PEACE CORPS ASSISTANCE.

    (a) Authority.--The Director of the Peace Corps is authorized to--
            (1) provide English language and other technical training 
        for individuals in East Timor as well as other activities which 
        promote education, economic development, and economic self-
        sufficiency; and
            (2) quickly address immediate assistance needs in East 
        Timor using the Peace Corps Crisis Corps, to the extent 
        practicable.
    (b) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Peace Corps to carry out this section $2,000,000 for each 
        of the fiscal years 2001, 2002, 2003, and 2004.
            (2) Availability.--Amounts appropriated pursuant to the 
        authorization of appropriations under paragraph (1) are 
        authorized to remain available until expended.

SEC. 7. TRADE AND INVESTMENT ASSISTANCE.

    (a) OPIC.--Beginning on the date of the enactment of this Act, the 
President should initiate negotiations with the United Nations 
Transitional Administration for East Timor (UNTAET), the National 
Council of East Timor, and the government of East Timor (after 
independence for East Timor)--
            (1) to apply to East Timor the existing agreement between 
        the Overseas Private Investment Corporation and Indonesia; or
            (2) to enter into a new agreement authorizing the Overseas 
        Private Investment Corporation to carry out programs with 
        respect to East Timor,
in order to expand United States investment in East Timor, emphasizing 
partnerships with local East Timorese enterprises.
    (b) Trade and Development Agency.--
            (1) In general.--The Director of the Trade and Development 
        Agency is authorized to carry out projects in East Timor under 
        section 661 of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2421).
            (2) Authorization of appropriations.--
                    (A) In general.--There are authorized to be 
                appropriated to the Trade and Development Agency to 
                carry out this subsection $1,000,000 for each of the 
                fiscal years 2001, 2002, 2003, and 2004.
                    (B) Availability.--Amounts appropriated pursuant to 
                the authorization of appropriations under subparagraph 
                (A) are authorized to remain available until expended.
    (c) Export-Import Bank.--The Export-Import Bank of the United 
States shall expand its activities in connection with exports to East 
Timor.

SEC. 8. GENERALIZED SYSTEM OF PREFERENCES.

    (a) Sense of Congress.--It is the sense of Congress that the 
President should encourage the United Nations Transitional 
Administration for East Timor (UNTAET), in close consultation with the 
National Council of East Timor, to seek to become eligible for duty-
free treatment under title V of the Trade Act of 1974 (19 U.S.C. 2461 
et seq.; relating to generalized system of preferences).
    (b) Technical Assistance.--The United States Trade Representative 
and the Commissioner of the United States Customs Service are 
authorized to provide technical assistance to UNTAET, the National 
Council of East Timor, and the government of East Timor (after 
independence for East Timor) in order to assist East Timor to become 
eligible for duty-free treatment under title V of the Trade Act of 
1974.

SEC. 9. BILATERAL INVESTMENT TREATY.

    It is the sense of Congress that the President should seek to enter 
into a bilateral investment treaty with the United Nations Transitional 
Administration for East Timor (UNTAET), in close consultation with the 
National Council of East Timor, in order to establish a more stable 
legal framework for United States investment in East Timor.

SEC. 10. SCHOLARSHIPS FOR EAST TIMORESE STUDENTS.

    (a) Authority.--The Secretary of State--
            (1) is authorized to carry out an East Timorese scholarship 
        program under the authorities of the United States Information 
        and Educational Exchange Act of 1948, the Mutual Educational 
        and Cultural Exchange Act of 1961, Reorganization Plan Number 2 
        of 1977, and the National Endowment for Democracy Act; and
            (2) shall make every effort to identify and provide 
        scholarships and other support to East Timorese students 
        interested in pursuing undergraduate and graduate studies at 
        institutions of higher education in the United States.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of State, $1,000,000 for the fiscal year 
2002 and $1,000,000 for the fiscal year 2003 to carry out subsection 
(a).

SEC. 11. PLAN FOR ESTABLISHMENT OF DIPLOMATIC FACILITIES IN EAST TIMOR.

    (a) Development of Detailed Plan.--The Secretary of State shall 
develop a detailed plan for the official establishment of a United 
States diplomatic mission to East Timor, with a view to--
            (1) officially open a fully functioning, fully staffed, 
        adequately resourced, and securely maintained diplomatic 
        mission in East Timor as soon as possible;
            (2) recognize East Timor, and establish diplomatic 
        relations with East Timor, upon its independence; and
            (3) ensure that a fully functioning, fully staffed, 
        adequately resourced, and securely maintained diplomatic 
        mission is accredited to East Timor upon its independence.
    (b) Reports.--
            (1) Initial report.--Not later than three months after the 
        date of the enactment of this Act, the Secretary of State shall 
        submit to the Committee on International Relations of the House 
of Representatives and the Committee on Foreign Relations of the Senate 
a report that contains the detailed plan described in subsection (a), 
including a timetable for the official opening of a facility in Dili, 
East Timor, the personnel requirements for the mission, the estimated 
costs for establishing the facility, and its security requirements.
            (2) Subsequent reports.--Beginning six months after the 
        submission of the initial report under paragraph (1), and every 
        six months thereafter until January 1, 2004, the Secretary of 
        State shall submit to the committees specified in that 
        paragraph a report on the status of the implementation of the 
        detailed plan described in subsection (a), including any 
        revisions to the plan (including its timetable, costs, or 
        requirements) that have been made during the period covered by 
        the report.
            (3) Form of report.--Each report submitted under this 
        subsection shall be in unclassified form, with a classified 
        annex as necessary.

SEC. 12. SECURITY ASSISTANCE FOR EAST TIMOR.

    (a) Authorization.--Beginning on the date on which the President 
transmits to the Congress a certification described in subsection (b), 
the President is authorized--
            (1) to transfer excess defense articles under section 516 
        of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) to East 
        Timor in accordance with such section; and
            (2) to provide military education and training under 
        chapter 5 of part II of such Act (22 U.S.C. 2347 et seq.) for 
        the armed forces of East Timor in accordance with such chapter.
    (b) Certification.--A certification described in this subsection is 
a certification that--
            (1) East Timor has established an independent armed forces; 
        and
            (2) the assistance proposed to be provided pursuant to 
        subsection (a)--
                    (A) is in the national security interests of the 
                United States; and
                    (B) will promote both human rights in East Timor 
                and the professionalization of the armed forces of East 
                Timor.
    (c) Study and Report.--
            (1) Study.--The President shall conduct a study to 
        determine--
                    (A) the extent to which East Timor's security needs 
                can be met by the transfer of excess defense articles 
                under section 516 of the Foreign Assistance Act of 
                1961;
                    (B) the extent to which international military 
                education and training (IMET) assistance will enhance 
                professionalism of the armed forces of East Timor, 
                provide training in human rights, and promote respect 
                for human rights and humanitarian law; and
                    (C) the terms and conditions under which such 
                defense articles or training, as appropriate, should be 
                provided.
            (2) Report.--Not later than 1 month after the date of 
        enactment of this Act, the President shall submit a report to 
        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 setting forth the findings of the study 
        conducted under paragraph (1).

SEC. 13. AUTHORITY FOR RADIO BROADCASTING.

    The Broadcasting Board of Governors shall further the communication 
of information and ideas through the increased use of audio 
broadcasting to East Timor to ensure that radio broadcasting to that 
country serves as a consistently reliable and authoritative source of 
accurate, objective, and comprehensive news.

SEC. 14. REPORTING REQUIREMENT.

    (a) In General.--Not later than three months after the date of the 
enactment of this Act, and every six months thereafter until January 1, 
2004, the Secretary of State, in coordination with the Administrator of 
the United States Agency for International Development, the Secretary 
of the Treasury, the United States Trade Representative, the Secretary 
of Commerce, the Overseas Private Investment Corporation, the Director 
of the Trade and Development Agency, the President of the Export-Import 
Bank of the United States, the Secretary of Agriculture, and the 
Director of the Peace Corps, shall prepare and transmit to the 
Committee on International Relations of the House of Representatives 
and the Committee on Foreign Relations of the Senate a report that 
contains the information described in subsection (b).
    (b) Information.--The report required by subsection (a) shall 
include--
            (1) developments in East Timor's political and economic 
        situation in the period covered by the report, including an 
        evaluation of any elections occurring in East Timor and the 
        refugee reintegration process in East Timor;
            (2)(A) in the initial report, a 3-year plan for United 
        States foreign assistance to East Timor in accordance with 
        section 4, prepared by the Administrator of the United States 
        Agency for International Development, which outlines the goals 
        for United States foreign assistance to East Timor during the 
        3-year period; and
            (B) in each subsequent report, a description in detail of 
        the expenditure of United States bilateral foreign assistance 
        during the period covered by each such report;
            (3) a description of the activities undertaken in East 
        Timor by the International Bank for Reconstruction and 
        Development, the Asian Development Bank, and other 
        international financial institutions, and an evaluation of the 
        effectiveness of these activities;
            (4) an assessment of--
                    (A) the status of United States trade and 
                investment relations with East Timor, including a 
                detailed analysis of any trade and investment-related 
                activity supported by the Overseas Private Investment 
                Corporation, the Export-Import Bank of the United 
                States, and the Trade and Development Agency during the 
                period of time since the previous report; and
                    (B) the status of any negotiations with the United 
                Nations Transitional Administration for East Timor 
                (UNTAET) or East Timor to facilitate the operation of 
                the United States trade agencies in East Timor;
            (5) the nature and extent of United States-East Timor 
        cultural, education, scientific, and academic exchanges, both 
        official and unofficial, and any Peace Corps activities;
            (6) a comprehensive study and report on local agriculture 
        in East Timor, emerging opportunities for producing, 
        processing, and exporting indigenous agricultural products, and 
        recommendations for appropriate technical assistance from the 
        United States; and
            (7) statistical data drawn from other sources on economic 
        growth, health, education, and distribution of resources in 
        East Timor.
                                 <all>