Appendix - International Assistance Program

[Appendix]
[Detailed Budget Estimates by Agency]
[International Assistance Program]
[From the U.S. Government Printing Office, www.gpo.gov]

[[Page 927]]

INTERNATIONAL ASSISTANCE PROGRAMS

INTERNATIONAL SECURITY ASSISTANCE

Federal Funds

General and special funds:

Economic Support Fund

For necessary expenses to carry out the provisions of chapter 4 of
part II, [$2,400,000,000] $2,513,600,000, 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 30 days of enactment of this Act or by
October 31, 1997, whichever is later: Provided further, That not less
than $815,000,000 shall be available only for Egypt, which sum shall be
provided on a grant basis, and of which sum cash transfer assistance may
be provided, with the understanding that Egypt will undertake
significant economic reforms which are additional to those which were
undertaken in previous fiscal years: Provided further, That in
exercising the authority to provide cash transfer assistance for Israel,
the President shall ensure that the level of such assistance does not
cause an adverse impact on the total level of nonmilitary exports from
the United States to such country: Provided further, That of the funds
appropriated under this heading, not less than $150,000,000 shall be
made available for Jordan: Provided further, That of the funds made
available under this heading in previous Acts making appropriations for
foreign operations, export financing, and related programs,
notwithstanding any provision in any such heading in such previous Acts,
up to $116,000,000 may be allocated or made available for programs and
activities under this heading including the Middle East Peace and
Stability Fund: Provided further, That in carrying out the previous
proviso, the President should seek to ensure to the extent feasible that
not more than 1 percent of the amount specified in section 586 of this
Act should be derived from funds that would otherwise be made available
for any single country: Provided further, That funds provided for the
Middle East Peace and Stability Fund by a country in the region under
the authority of section 635(d) of the Foreign Assistance Act of 1961,
and funds made available for Jordan following the date of enactment of
this Act from previous Acts making appropriations for foreign
operations, export financing, and related programs, shall count toward
meeting the earmark contained in the fourth proviso under this heading:
Provided further, That up to $10,000,000 of funds under this heading in
previous foreign operations, export financing, and related programs
appropriations Acts that were reprogrammed for Jordan during fiscal year
1997 shall also count toward such earmark: Provided further, That, in
order to facilitate the implementation of the fourth proviso under this
heading, the requirement of section 515 of this Act or any similar
provision of law shall not apply to the making available of funds
appropriated for a fiscal year for programs, projects, or activities
that were justified for another fiscal year: Provided further, That for
fiscal year 1998 such portions of the notification required under
section 653 of the Foreign Assistance Act of 1961 that relate to the
Middle East may be submitted to the Congress as soon as practicable, but
no later than March 1, 1998: Provided further, That during fiscal year
1998, of the local currencies generated from funds made available under
this heading for Guatemala by this Act and prior appropriations Acts,
the United States and Guatemala may jointly program the Guatemala
quetzales equivalent of a total of up to $10,000,000 for the purpose of
retiring the debt owed by universities in Guatemala to the Inter-
American Development Bank] expended, of which not to exceed $10,000,000
may be used, notwithstanding any other provision of law, to support
victims of and programs related to the Holocaust: Provided further, That
notwithstanding any provision in this or any other Act, funds provided
under this heading may be used to support the Bank for Economic
Cooperation and Development in the Middle East and North Africa.
(Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1037-0-1-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations................. 2,420 2,662 2,514
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 287 242
22.00 New budget authority (gross)...... 2,385 2,420 2,514
22.10 Resources available from
recoveries of prior year
obligations..................... 16
22.21 Unobligated balance transferred to
other accounts.................. -6
22.30 Unobligated balance expiring...... -20
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,662 2,662 2,514
23.95 New obligations................... -2,420 -2,662 -2,514
24.40 Unobligated balance available, end
of year: Uninvested............. 242
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 2,363 2,420 2,514
41.00 Transferred to other accounts..... -19
42.00 Transferred from other accounts... 41
--------- --------- ----------
43.00 Appropriation (total)........... 2,385 2,420 2,514
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,385 2,420 2,514
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 2,799 2,976 3,217
73.10 New obligations................... 2,420 2,662 2,514
73.20 Total outlays (gross)............. -2,226 -2,421 -2,418
73.40 Adjustments in expired accounts... -1
73.45 Adjustments in unexpired accounts. -16
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 2,976 3,217 3,313
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1,214 1,285 1,292
86.93 Outlays from current balances..... 1,012 1,136 1,126
--------- --------- ----------
87.00 Total outlays (gross)........... 2,226 2,421 2,418
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2,385 2,420 2,514
90.00 Outlays........................... 2,226 2,421 2,418
---------------------------------------------------------------------------

This account supports U.S. foreign policy objectives by providing
economic assistance to allies and countries in transition to democracy,
supporting the Middle East peace process, and financing economic
stabilization programs, frequently in a multi-donor context. Key
objectives include:

(1) Supporting strategically significant friends and allies through
assistance designed to increase the role of the private sector in the
economy, reduce government controls over markets, enhance job creation,
and improve economic growth.

(2) Developing and strengthening institutions necessary for
sustainable democracy. Typical areas of assistance include technical
assistance to administer and monitor elections, capacity-building for
non-governmental organizations, judicial training, and women's
participation in politics. Assistance is also provided to support the
transformation of the public sector to encourage democratic development,
including training to improve public administration, promote
decentralization, strengthen local governments, parliaments, independent
media and non-governmental organizations.

(3) Strengthening the capacity to manage the human dimension of the
transition to democracy and a market econ-

[[Page 928]]

omy, and to help sustain the neediest sectors of the population during
the transition period.

Haiti.--The Administration is requesting a total of $140,000,000 out
of the total ESF appropriation for Haiti. Haiti is at a pivotal juncture
in its efforts to make the transformation to a democratic form of
government and a free market economy. The Administration believes these
additional resources for Haiti will be especially beneficial to show
continued support for Haiti following the scheduled conclusion of the
United Nation's peacekeeping operations in Haiti at the end of November
1998.

Holocaust Victims Relief.--This is a contribution toward the three-
year U.S. Government donation (not to exceed $25 million) for a
multilateral program of financial relief to certain victims of Nazi
persecution during World War II. Grants from the fund will be provided
through approved non-governmental organizations with established
administrative and organizational infrastructure to ensure the
contributions are utilized only for the relief of living victims, who
have to date received little or no relief and currently live below the
poverty line in their country of residence.

Object Classification (in millions of dollars)

Direct obligations:

25.2 Other services.................. 6 5 5
41.0 Grants, subsidies, and
contributions................. 2,371 2,657 2,509
--------- --------- ----------
99.0 Subtotal, direct obligations.. 2,377 2,662 2,514
41.0 Allocation Account: Grants,
subsidies, and contributions.... 43
--------- --------- ----------
99.9 Total obligations............... 2,420 2,662 2,514
---------------------------------------------------------------------------

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,
[$3,296,550,000] $3,275,910,000: Provided, [That of the funds
appropriated under this heading, not less than $1,800,000,000 shall be
available for grants only for Israel, and not less than $1,300,000,000
shall be made available for grants only for Egypt: Provided further,
That the funds appropriated by this paragraph for Israel shall be
disbursed within 30 days of enactment of this Act or by October 31,
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 shall, 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 $75,000,000 shall be
available for assistance for Jordan: Provided further, That during
fiscal year 1998 the President is authorized to, and shall, direct
drawdowns of defense articles from the stocks of the Department of
Defense, defense services of the Department of Defense, and military
education and training of an aggregate value of not less than
$25,000,000 under the authority of this proviso for Jordan for the
purposes of part II of the Foreign Assistance Act of 1961, and any
amount so directed shall count toward meeting the earmark in the
previous proviso: Provided further, That section 506(c) of the Foreign
Assistance Act of 1961 shall apply, and section 632(d) of the Foreign
Assistance Act of 1961 shall not apply, to any such drawdown: Provided
further, That of the funds appropriated by this paragraph, a total of
$18,300,000 should be available for assistance for Estonia, Latvia, and
Lithuania: Provided further, That none of the funds made available under
this heading shall be available for any non-NATO country participating
in the Partnership for Peace Program except through the regular
notification procedures of the Committees on Appropriations: Provided
further,] That funds appropriated by this paragraph shall be
nonrepayable notwithstanding any requirement in section 23 of the Arms
Export Control Act: Provided further, That funds made available under
this paragraph shall be obligated upon apportionment in accordance with
paragraph (5)(C) of title 31, United States Code, section 1501(a)[:
Provided further, That $50,000,000 of the funds appropriated or
otherwise made available under this heading should be made available for
the purpose of facilitating the integration of Poland, Hungary, and the
Czech Republic into the North Atlantic Treaty Organization].
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, [$60,000,000] $20,000,000:
Provided, That these funds are available to subsidize gross obligations
for the principal amount of direct loans of not to exceed [$657,000,000:
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 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: $105,000,000 only for Greece and $150,000,000 only for
Turkey] $167,000,000.
None of the funds made available under this heading shall be
available to finance the procurement of defense articles, defense
services, or design and construction services that are not sold by the
United States Government under the Arms Export Control Act unless the
foreign country proposing to make such procurements has first signed an
agreement with the United States Government specifying the conditions
under which such procurements may be financed with such funds: Provided,
[That all country and funding level increases in allocations shall be
submitted through the regular notification procedures of section 515 of
this Act: Provided further, That none of the funds appropriated under
this heading shall be available for Sudan and Liberia: Provided
further,] That funds made available under this heading may be used,
notwithstanding any other provision of law, for demining, the clearance
of unexploded ordnance, and related activities and may include
activities implemented through nongovernmental and international
organizations: Provided further, That only those countries for which
assistance was justified for the ``Foreign Military Sales Financing
Program'' in the fiscal year 1989 congressional presentation for
security assistance programs may utilize funds made available under this
heading for procurement of defense articles, defense services or design
and construction services that are not sold by the United States
Government under the Arms Export Control Act: Provided further, That,
subject to the regular notification procedures of the Committees on
Appropriations, funds made available under this heading for the cost of
direct loans may also be used to supplement the funds available under
this heading for grants, and funds made available under this heading for
grants may also be used to supplement the funds available under this
heading for the cost of direct loans: Provided further, That funds
appropriated under this heading shall be expended at the minimum rate
necessary to make timely payment for defense articles and services:
Provided further, That not more than [$23,250,000] $29,910,000 of the
funds appropriated under this heading may be obligated for necessary
expenses, including the purchase of passenger motor vehicles for
replacement only for use outside of the United States, for the general
costs of administering military assistance and sales: [Provided further,
That none of the funds under this heading shall be available for
Guatemala:] Provided further, That not more than [$350,000,000]
$340,000,000 of funds realized pursuant to section 21(e)(1)(A) of the
Arms Export Control Act may be obligated for expenses incurred by the
Department of Defense during fiscal year [1998] 1999 pursuant to section
43(b) of the Arms Export Control Act, except that this limitation may be
exceeded only through the regular notification procedures of the
Committees on Appropriations. (Foreign Operations, Export Financing, and
Related Programs Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Program Activity [GPRA].... 3,266 3,313 3,246
00.02 Direct Program Activity [GPRA].... 23 30 30
--------- --------- ----------
10.00 Total obligations............... 3,289 3,343 3,276
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3,288 3,343 3,276

[[Page 929]]

23.95 New obligations................... -3,289 -3,343 -3,276
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 3,224 3,297 3,276
42.00 Transferred from other accounts... 64 46
--------- --------- ----------
43.00 Appropriation (total)........... 3,288 3,343 3,276
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 3,288 3,343 3,276
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 1,781 2,110 2,240
73.10 New obligations................... 3,289 3,343 3,276
73.20 Total outlays (gross)............. -2,960 -3,213 -3,178
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 2,110 2,240 2,337
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1,844 1,843 1,839
86.93 Outlays from current balances..... 1,116 1,370 1,339
--------- --------- ----------
87.00 Total outlays (gross)........... 2,960 3,213 3,178
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3,288 3,343 3,276
90.00 Outlays........................... 2,960 3,213 3,178
---------------------------------------------------------------------------

The foreign military financing (FMF) program enables selected
friendly and allied countries to improve their ability to defend
themselves by financing their acquisition of U.S. military articles,
services, and training. This account provides the grant financing
portion of the FMF program. Credit financing, in the form of direct
loans, is provided in the FMF loan program account.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1082-0-1-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
25.2 Other services.................... 23 30 30
41.0 Grants, subsidies, and
contributions................... 3,266 3,313 3,246
--------- --------- ----------
99.9 Total obligations............... 3,289 3,343 3,276
---------------------------------------------------------------------------

International Military Education and Training

For necessary expenses to carry out the provisions of section 541 of
the Foreign Assistance Act of 1961, $50,000,000, to remain available
until September 30, 2000: Provided, That the civilian personnel for whom
military education and training may be provided under this heading may
include civilians who are not members of a government whose
participation would contribute to improved civil-military relations,
civilian control of the military, or respect for human rights[: Provided
further, That funds appropriated under this heading for grant financed
military education and training for Indonesia and Guatemala may only be
available for expanded international military education and training and
funds made available for Guatemala may only be provided through the
regular notification procedures of the Committees on Appropriations:
Provided further, That none of the funds appropriated under this heading
may be made available to support grant financed military education and
training at the School of the Americas unless: (1) the Secretary of
Defense certifies that the instruction and training provided by the
School of the Americas is fully consistent with training and doctrine,
particularly with respect to the observance of human rights, provided by
the Department of Defense to United States military students at
Department of Defense institutions whose primary purpose is to train
United States military personnel; (2) the Secretary of Defense certifies
that the Secretary of State, in consultation with the Secretary of
Defense, has developed and issued specific guidelines governing the
selection and screening of candidates for instruction at the School of
the Americas; and (3) the Secretary of Defense submits to the Committees
on Appropriations a report detailing the training activities of the
School of the Americas and a general assessment regarding the
performance of its graduates during 1996]. (Foreign Operations, Export
Financing, and Related Programs Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total obligations................. 43 50 50
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 43 50 50
23.95 New obligations................... -43 -50 -50
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 43 50 50
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 27 35 39
73.10 New obligations................... 43 50 50
73.20 Total outlays (gross)............. -34 -46 -49
73.40 Adjustments in expired accounts... -2
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 35 39 40
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 20 25 25
86.93 Outlays from current balances..... 14 21 24
--------- --------- ----------
87.00 Total outlays (gross)........... 34 46 49
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 43 50 50
90.00 Outlays........................... 34 46 49
---------------------------------------------------------------------------

This assistance provides grants for military education and training
to military and civilian students from foreign countries. In addition to
helping these countries move toward self-sufficiency in defending
themselves, this program also exposes foreign students to American
democratic values, particularly military respect for civilian rule and
for internationally recognized standards of individual and human rights.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1081-0-1-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
26.0 Supplies and materials............ 4 5 5
41.0 Grants, subsidies, and
contributions................... 38 44 44
--------- --------- ----------
99.0 Subtotal, direct obligations.. 42 49 49
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total obligations............... 43 50 50
---------------------------------------------------------------------------

Military-to-Military Contact Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1084-0-1-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 3 2 1
73.20 Total outlays (gross)............. -2 -1
73.40 Adjustments in expired accounts... -1
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 2 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 2 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 2 1
---------------------------------------------------------------------------

This program financed expenses associated with direct contacts
between U.S. military and the military establishments of Eastern Europe
and the Baltic and Pacific regions. These contacts were designed to
promote the development of foreign

[[Page 930]]

military organizations that are non-political, loyal to civilian
constitutional authority, structured for defensive needs, and respectful
of human and individual rights.

Peacekeeping Operations

For necessary expenses to carry out the provisions of section 551 of
the Foreign Assistance Act of 1961, [$77,500,000] $83,000,000[:
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]. (Foreign
Operations, Export Financing, and Related Programs Appropriations Act,
1998).

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1032-0-1-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
41.0)........................... 97 78 83
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 97 78 83
23.95 New obligations................... -97 -78 -83
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 65 78 83
42.00 Transferred from other accounts... 32
--------- --------- ----------
43.00 Appropriation (total)........... 97 78 83
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 97 78 83
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 50 41 25
73.10 New obligations................... 97 78 83
73.20 Total outlays (gross)............. -106 -94 -81
73.40 Adjustments in expired accounts... -2
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 41 25 27
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 68 54 57
86.93 Outlays from current balances..... 38 40 24
--------- --------- ----------
87.00 Total outlays (gross)........... 106 94 81
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 97 78 83
90.00 Outlays........................... 106 94 81
---------------------------------------------------------------------------

This account funds U.S. assistance to international efforts to
monitor and maintain the peace in areas of special concern to the United
States and provides funds to other related programs carried out in
furtherance of the national security interests of the United States. In
1999, contributions are planned for the Multinational Force and
Observers in the Sinai, Europe, Africa and other regional programs, and
other activities.

Nonproliferation, Anti-Terrorism, Demining and Related Programs

For necessary expenses for nonproliferation, anti-terrorism and
related programs and activities, [$133,000,000] $215,900,000, to carry
out the provisions of chapter 8 of part II of the Foreign Assistance Act
of 1961 for anti-terrorism assistance, section 504 of the FREEDOM
Support Act for the Nonproliferation and Disarmament Fund, section 23 of
the Arms Export Control Act or the Foreign Assistance Act of 1961 for
demining, the clearance of unexploded ordnance, and related activities,
notwithstanding any other provision of law, including activities
implemented through nongovernmental and international organizations,
section 301 of the Foreign Assistance Act of 1961 for a voluntary
contribution to the International Atomic Energy Agency (IAEA) [and], a
voluntary contribution to the Korean Peninsula Energy Development
Organization (KEDO), and for a United States contribution to the
Comprehensive Nuclear Test Ban Treaty Preparatory Commission: Provided,
That of this amount not to exceed $15,000,000, to remain available until
expended, may be made available for the Nonproliferation and Disarmament
Fund, notwithstanding any other provision of law, to promote bilateral
and multilateral activities relating to nonproliferation and
disarmament: Provided further, That such funds may also be used for such
countries other than the new independent states of the former Soviet
Union and international organizations when it is in the national
security interest of the United States to do so[: Provided further, That
such funds shall be subject to the regular notification procedures of
the Committees on Appropriations: Provided further, That funds
appropriated under this heading may be made available for the
International Atomic Energy Agency only if the Secretary of State
determines (and so reports to the Congress) that Israel is not being
denied its right to participate in the activities of that Agency:
Provided further, That 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, 30 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 April 1, 1998; 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 calendar 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
KEDO, to include unpaid debt, proposed annual costs associated with
heavy fuel oil purchases, and the amount of funds pledged by other donor
nations and organizations to support KEDO activities on a per country
basis, and other related activities: Provided further, That of the funds
made available under this heading, up to $10,000,000 may be made
available to 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 by
donors other than the United States]. (Foreign Operations, Export
Financing, and Related Programs Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1075-0-1-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Comprehensive test ban treaty
prepcom......................... 29
00.02 Demining.......................... 1 20 50
00.03 Export control.................... 3 5
00.04 Nonproliferation and disarmament
assistance...................... 15 15 15
00.05 Anti-terrorism assistance......... 18 19 21
00.06 IAEA voluntary contribution....... 36 36 40
00.07 KEDO payment...................... 25 40 35
00.08 Science centers in NIS............ 14 21
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 108 133 216
----------------------------------------------------------------------------

[[Page 931]]

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1 1
22.00 New budget authority (gross)...... 109 133 216
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 109 134 217
23.95 New obligations................... -108 -133 -216
24.40 Unobligated balance available, end
of year: Uninvested............. 1 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 151 133 216
41.00 Transferred to other accounts..... -56
42.00 Transferred from other accounts... 14
--------- --------- ----------
43.00 Appropriation (total)........... 109 133 216
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 109 133 216
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 37 60
73.10 New obligations................... 108 133 216
73.20 Total outlays (gross)............. -71 -110 -183
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 37 60 93
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 71 86 140
86.93 Outlays from current balances..... 24 43
--------- --------- ----------
87.00 Total outlays (gross)........... 71 110 183
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 109 133 216
90.00 Outlays........................... 71 110 183
---------------------------------------------------------------------------

This account funds contributions to certain organizations supporting
nonproliferation, and provides assistance for nonproliferation,
demining, antiterrorism, and export control activities.

Assistance for Relocation of Facilities in Israel

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 2
24.40 Unobligated balance available, end
of year: Uninvested............. 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 2
68.49 Portion applied to liquidate
contract authority............ -1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 1
----------------------------------------------------------------------------

Change in unpaid obligations:
72.49 Unpaid obligations, start of year:
Obligated balance: Contract
authority....................... 4 3
73.20 Total outlays (gross)............. -1 1
73.40 Adjustments in expired accounts... -3
74.49 Unpaid obligations, end of year:
Obligated balance: Contract
authority....................... 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 1
86.98 Outlays from permanent balances... -1
--------- --------- ----------
87.00 Total outlays (gross)........... 1 -1
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -2
90.00 Outlays........................... -1
---------------------------------------------------------------------------

Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1088-0-1-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
0100 Balance, start of year............ 4 3
0360 Adjustments in expired accounts... -3
0500 Offsetting collections applied to
liquidate contract authority.... -1
0700 Balance, end of year.............. 3
---------------------------------------------------------------------------

This account shows financial transactions related to the
construction of two airfields in Israel that were part of the Camp David
agreement. The 1998 transactions are expected to be the last ones in
this account.

Non-Proliferation and Disarmament Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total obligations................. 11 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 16 5
23.95 New obligations................... -11 -5
24.40 Unobligated balance available, end
of year: Uninvested............. 5
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 13 18 7
73.10 New obligations................... 11 5
73.20 Total outlays (gross)............. -6 -16 -7
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 18 7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 6 16 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 6 16 7
---------------------------------------------------------------------------

This account provided financial and technical assistance to support
nonproliferation and disarmament efforts in foreign countries, including
education and training, elimination of weapons of mass destruction, and
development of export control capabilities. Starting in 1997, these
activities have been funded from the Non-Proliferation, Anti-Terrorism,
Demining and Related Programs account. This schedule reflects the spend-
out of prior-year obligations.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1071-0-1-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
25.2 Other services.................... 10 5
41.0 Grants, subsidies, and
contributions................... 1
--------- --------- ----------
99.9 Total obligations............... 11 5
---------------------------------------------------------------------------

Credit accounts:

Foreign Military Financing Loan Program Account

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1085-0-1-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 11 26
Receipts:
02.01 Downward reestimates of subsidies. 11 15
--------- --------- ----------

[[Page 932]]

04.00 Total: Balances and collections... 11 26 26
07.99 Total balance, end of year........ 11 26 26
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 58 20 20
00.05 Direct program.................... 23 16
00.06 Direct program.................... 1 3
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 82 39 20
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 82 39 20
23.95 New obligations................... -82 -39 -20
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 60 60 20
41.00 Transferred to other accounts... -2 -40
--------- --------- ----------
43.00 Appropriation (total)......... 58 20 20
Permanent:

60.05 Appropriation (indefinite)...... 24 19
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 82 39 20
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 184 202 176
73.10 New obligations................... 82 39 20
73.20 Total outlays (gross)............. -64 -65 -39
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 202 176 158
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 40 46 39
86.97 Outlays from new permanent
authority....................... 24 19
--------- --------- ----------
87.00 Total outlays (gross)........... 64 65 39
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 82 39 20
90.00 Outlays........................... 64 65 39
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records the subsidy costs associated with the direct loans obligated for
foreign military financing committed in 1992 and beyond, as well as the
administrative expenses of this program. The foreign military financing
credit program provides loans that finance sales of defense articles,
defense services, and design and construction services to foreign
countries and international organizations. The subsidy amounts are
estimated on a present value basis; the administrative expenses are
estimated on a cash basis.

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1085-0-1-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct loan levels................ 297 200 167
--------- --------- ----------
1159 Total direct loan levels........ 297 200 167
Direct loan subsidy (in percent):
1320 Subsidy rate...................... 13.43 10.00 11.97
--------- --------- ----------
1329 Weighted average subsidy rate... 13.43 10.00 11.97
Direct loan subsidy budget authority:
1330 Subsidy budget authority.......... 83 60 20
--------- --------- ----------
1339 Total subsidy budget authority.. 83 60 20
Direct loan subsidy outlays:
1340 Subsidy outlays................... 64 46 39
--------- --------- ----------
1349 Total subsidy outlays........... 64 46 39
---------------------------------------------------------------------------

Foreign Military Financing Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 298 200 167
00.02 Direct program.................... 99 112 148
00.03 Direct program.................... 11 13
00.04 Direct program.................... 2
--------- --------- ----------
10.00 Total obligations............... 408 327 315
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 408 327 315
23.95 New obligations................... -408 -327 -315
----------------------------------------------------------------------------

New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 258 196 147
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 183 467 567
68.10 Change in receivables from
program account............... 18 -26 -18
68.47 Portion applied to debt
reduction..................... -51 -310 -381
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 150 131 168
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 408 327 315
----------------------------------------------------------------------------

Change in unpaid obligations:
Unpaid obligations, start of year:

72.40 Obligated balance: Uninvested... 1,789 1,692 1,445
72.95 Receivables from program account 184 202 176
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 1,973 1,894 1,621
73.10 New obligations................... 408 327 315
73.20 Total financing disbursements
(gross)......................... -487 -600 -691
Unpaid obligations, end of year:

74.40 Obligated balance: Uninvested... 1,692 1,445 1,089
74.95 Receivables from program account 202 176 158
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 1,894 1,621 1,247
87.00 Total financing disbursements
(gross)......................... 487 600 691
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
Federal sources:
88.00 Federal sources............. -64 -46 -39
88.00 Federal sources............. -25 -19
88.40 Non-Federal sources........... -94 -402 -528
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -183 -467 -567
88.95 Change in receivables from program
account......................... -18 26 18
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 207 -114 -234
90.00 Financing disbursements........... 303 133 124
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4122-0-3-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 540 200 167
1112 Unobligated direct loan limitation -242
--------- --------- ----------
1150 Total direct loan obligations... 298 200 167
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,098 1,451 1,702
1231 Disbursements: Direct loan
disbursements................... 376 471 543
1251 Repayments: Repayments and
prepayments..................... -23 -220 -322
--------- --------- ----------

[[Page 933]]

1290 Outstanding, end of year........ 1,451 1,702 1,923
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans for foreign military financing obligated in
1992 and beyond. The foreign military financing credit program provides
loans that finance sales of defense articles, defense services, and
design and construction services to foreign countries and international
organizations. The amounts in this account are a means of financing and
are not included in budget totals.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 11-4122-0-3-152 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 160 130
Investments in US securities:
1106 Receivables, net.............. 184 202 176 158
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 1,098 1,451 1,702 1,923
1402 Interest receivable............. 12 16 18 21
1405 Allowance for subsidy cost (-).. -143 -189 -235 -274
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 967 1,278 1,485 1,670
1901 Other Federal assets: Other assets 1,630 1,562 1,317 959
------------ -------------- ------------ -------------
1999 Total assets.................... 2,941 3,172 2,978 2,787
LIABILITIES:
Federal liabilities:

2103 Debt............................ 1,134 1,408 1,589 1,751
2105 Other........................... 1,623 1,764 1,389 1,036
------------ -------------- ------------ -------------
2999 Total liabilities............... 2,757 3,172 2,978 2,787
NET POSITION:
3100 Appropriated capital.............. 184
------------ -------------- ------------ -------------
3999 Total net position.............. 184
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,941 3,172 2,978 2,787
-----------------------------------------------------------------------------------------------

Foreign Military Loan Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 28 10 9
00.02 Direct program.................... 20 39 37
--------- --------- ----------
10.00 Total obligations (object class
33.0)......................... 48 49 46
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 48 49 46
23.95 New obligations................... -48 -49 -46
----------------------------------------------------------------------------

New budget authority (gross), detail:
60.05 Appropriation (indefinite)........ 16 28 31
Spending authority from offsetting
collections:

Offsetting collections (cash):
68.00 Offsetting collections (cash). 236 241 233
68.00 Offsetting collections (cash). 4 18 4
68.27 Capital transfer to general fund -9 -19 -4
68.47 Portion applied to debt
reduction..................... -199 -219 -218
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 32 21 15
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 48 49 46
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 New obligations................... 48 49 46
73.20 Total outlays (gross)............. -48 -49 -46
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 48 49 46
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
Federal sources:
88.00 Federal sources.............
88.00 Federal sources............. -4 -18 -4
Non-Federal sources:
88.40 Non-Federal sources......... -37 -22 -15
88.40 Non-Federal sources......... -199 -219 -218
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -240 -259 -237
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -192 -210 -191
90.00 Outlays........................... -192 -210 -191
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4121-0-3-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 7,021 6,154 5,313
1231 Disbursements: Direct loan
disbursements................... 14 9 8
1251 Repayments: Repayments and
prepayments..................... -892 -812 -628
1261 Adjustments: Capitalized interest. 21
1264 Write-offs for default: Other
adjustments, net................ -10 -38 -6
--------- --------- ----------
1290 Outstanding, end of year........ 6,154 5,313 4,687
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4121-0-3-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 6,129 5,691 5,303
2251 Repayments and prepayments........ -432 -387 -379
2261 Adjustments: Terminations for
default that result in loans
receivable...................... -6 -1 -1
--------- --------- ----------
2290 Outstanding, end of year........ 5,691 5,303 4,923
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 5,122 4,772 4,430
----------------------------------------------------------------------------

Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2331 Disbursements for guaranteed
loan claims................... 34 10 9
2364 Other adjustments, net.......... -34 -10 -9
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records all cash flows to and from the Government resulting from direct
loans obligated and loan guarantees for foreign military financing
committed prior to 1992. This account is shown on a cash basis and
reflects the transactions resulting from loans provided to finance sales
of defense articles, defense services, and design and construction
services to foreign countries and international organizations. All new
foreign military financing credit activity in 1992 and beyond (including
modifications of direct loans or loan guarantees that resulted from
obligations or commitments in any year) is recorded in corresponding
program and financing accounts.

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 11-4121-0-3-152 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
0111 Revenue........................... 282 322 283 252
0112 Expense........................... -293 -330 -283 -252
------------ -------------- ------------ -------------
0119 Net income or loss (-)............ -11 -8
------------ -------------- ------------ -------------
0199 Net income or loss................ -11 -8
-----------------------------------------------------------------------------------------------

[[Page 934]]

Balance Sheet (in millions of dollars)

1601 Direct loans, gross............. 7,021 6,154 5,313 4,687
1602 Interest receivable............. 655 729 636 563
1604 Direct loans and interest
receivable, net............... 7,676 6,883 5,949 5,250
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 7,676 6,883 5,949 5,250
------------ -------------- ------------ -------------
1999 Total assets.................... 7,676 6,883 5,949 5,250
LIABILITIES:
Federal liabilities:

2102 Interest payable................ 51 48 44 41
2103 Debt............................ 3,247 3,048 2,829 2,611
2105 Other........................... 3,767 3,177 2,466 1,988
------------ -------------- ------------ -------------
2999 Total liabilities............... 7,065 6,273 5,339 4,640
NET POSITION:
3100 Appropriated capital..............
3300 Cumulative results of operations.. 611 610 610 610
------------ -------------- ------------ -------------
3999 Total net position.............. 611 610 610 610
------------ -------------- ------------ -------------
4999 Total liabilities and net position 7,676 6,883 5,949 5,250
-----------------------------------------------------------------------------------------------

Military Debt Reduction Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Reimbursable program.............. 4 18 4
09.02 Reimbursable program.............. 1 1
--------- --------- ----------
10.00 Total obligations............... 4 19 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 4 19 5
23.95 New obligations................... -4 -19 -5
----------------------------------------------------------------------------

New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 3 16 2
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1 3 3
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 4 19 5
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 New obligations................... 4 19 5
73.20 Total financing disbursements
(gross)......................... -4 -19 -5
87.00 Total financing disbursements
(gross)......................... 4 19 5
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -3 -3
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 3 16 2
90.00 Financing disbursements........... 3 16 2
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4174-0-3-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 3 18 4
--------- --------- ----------
1150 Total direct loan obligations... 3 18 4
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 3 17
1233 Disbursements: Purchase of loans
assets from a liquidating
account......................... 3 14 1
--------- --------- ----------
1290 Outstanding, end of year........ 3 17 18
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from restructuring foreign military loans. The amounts in this
account are a means of financing and are not included in budget totals.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 11-4174-0-3-152 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 3 17 18
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 3 17 18
------------ -------------- ------------ -------------
1999 Total assets.................... 3 17 18
LIABILITIES:
2103 Federal liabilities: Debt......... 3 17 18
------------ -------------- ------------ -------------
2999 Total liabilities............... 3 17 18
------------ -------------- ------------ -------------
4999 Total liabilities and net position 3 17 18
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4174-0-3-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
33.0 Investments and loans............. 4 18 4
43.0 Interest and dividends............ 1 1
--------- --------- ----------
99.9 Total obligations............... 4 19 5
---------------------------------------------------------------------------

INTERNATIONAL DEVELOPMENT ASSISTANCE
MULTILATERAL ASSISTANCE

Federal Funds

General and special funds:

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), [$47,500,000]
$300,000,000, to remain available until [September 30, 1999] expended.
(Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-0077-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
33.0)........................... 35 48 300
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 7,663 7,663 7,663
22.00 New budget authority (gross)...... 35 48 300
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 7,698 7,711 7,963
23.95 New obligations................... -35 -48 -300
24.40 Unobligated balance available, end
of year: Uninvested............. 7,663 7,663 7,663
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 35 48 300
----------------------------------------------------------------------------

[[Page 935]]

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 191 158 169
73.10 New obligations................... 35 48 300
73.20 Total outlays (gross)............. -67 -37 -61
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 158 169 408
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 3 4 27
86.93 Outlays from current balances..... 64 33 34
--------- --------- ----------
87.00 Total outlays (gross)........... 67 37 61
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 35 48 300
90.00 Outlays........................... 67 37 61
---------------------------------------------------------------------------

The International Bank for Reconstruction and Development (World
Bank) finances development projects in less developed countries. By
applying banking principles to the achievement of development goals, it
promotes increased economic productivity and helps developing economies
meet more of the basic needs of their people.

The IBRD also plays a vital role in providing policy advice to
borrowing countries; assisting in donor coordination and promoting co-
financing.

The IBRD made new commitments of $14.5 billion during its 1997
fiscal year; IBRD gross disbursements were $14.0 billion. Since its
establishment in 1945, the IBRD has made loans totalling $295 billion--
$147 for every $1 of U.S. paid in capital.

The Global Environment Facility (GEF) provides technical assistance
and partial funding for developing country investments designed to
provide global environmental benefits by reducing international water
pollution, and ozone depletion, and by promoting biodiversity and energy
conservation. With its highly specific focus on global environmental
issues--where both costs and benefits are shared across international
borders--the GEF occupies a unique and increasingly important niche in
the international financial institution system. Its basic mission is to
support innovative and cost-effective pilot investments whose design and
environmental benefits can be duplicated (and financed) elsewhere. Under
strong U.S. leadership, flowing in part from our position as the largest
donor on the GEF's governing Council, the GEF has been making
substantial progress in leveraging its limited resources. The World
Bank, the UN Development Program, the UN Environment Program and,
increasingly, private investors, provide substantial cofinancing for GEF
projects. Since its inception in 1994, total GEF commitments amount to
about $1.7 billion, triggering additional cofinancing of over $4
billion.

The initial U.S. commitment to the GEF in 1995 amounted to $430
million, of which we have delivered $227.5 million. As of the end of
1998, U.S. arrears will amount to $192.5 million. The Administration is
negotiating a GEF-2 replenishment and intends to limit its contributions
to GEF-1 levels, and will seek Congressional authorization to contribute
$430 million to GEF over four years. The 1999 request of $300 million
would clear all arrears to GEF-1 and cover one year of annual
commitments to the GEF's second funding cycle.

contribution to the international development association

For payment to the International Development Association by the
Secretary of the Treasury, [$1,034,503,100] $800,000,000, to remain
available until expended[, of which $234,503,100 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 procurement
restrictions applicable to United States firms under the terms of the
Interim Trust Fund have been lifted from all funds which Interim Trust
Fund donors proposed to set aside for review of procurement restrictions
at the conclusion of the February 1997 IDA Deputies Meeting in Paris].
(Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-0073-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
33.0)........................... 700 1,035 800
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 700 1,035 800
23.95 New obligations................... -700 -1,035 -800
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 700 1,035 800
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 3,282 2,755 2,733
73.10 New obligations................... 700 1,035 800
73.20 Total outlays (gross)............. -1,227 -1,057 -911
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 2,755 2,733 2,622
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 64 79 61
86.93 Outlays from current balances..... 1,163 979 850
--------- --------- ----------
87.00 Total outlays (gross)........... 1,227 1,057 911
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 700 1,035 800
90.00 Outlays........................... 1,227 1,057 911
---------------------------------------------------------------------------

The International Development Association (IDA), a member of the
World Bank Group, provides development financing on highly concessional
terms to the world's poorest and least creditworthy nations. These
countries are primarily in Sub-Saharan Africa and South Asia, but also
in Latin America, Eastern Europe, and the former Soviet Union. IDA
places special emphasis on poverty alleviation, environmental
protection, and economic reform and growth. The IDA is the largest
source of multilateral lending that is extended on concessional terms to
developing countries. Projects have to meet the same economic,
financial, and environmental standards as other World Bank projects.

During its fiscal year 1997, IDA made new commitments of $4.6
billion, and IDA's gross disbursements were $6.0 billion. Since its
establishment, IDA has made commitments totalling $101.6 billion (as of
June 30, 1997).

The Tenth Replenishment of IDA provides donor country resources of
about $18 billion. The United States pledged $3.75 billion (20.86
percent share of all donor contributions) to the replenishment. The
eleventh replenishment of IDA will provide total resources for new loan
commitments of about $22 billion over the 1997-1999 period. The United
States elected not to participate in 1997, the first year of the three-
year replenishment. The United States pledged $1.6 billion for the last
two years of the replenishment (15 percent of total donor
contributions). The 1999 request is $800 million for the final United
States contribution to the eleventh replenishment.

contribution to the international finance corporation

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-0078-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
33.0)........................... 7
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 7

[[Page 936]]

23.95 New obligations................... -7
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 7
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 90 36 3
73.10 New obligations................... 7
73.20 Total outlays (gross)............. -60 -33 -3
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 36 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1
86.93 Outlays from current balances..... 59 33 3
--------- --------- ----------
87.00 Total outlays (gross)........... 60 33 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 7
90.00 Outlays........................... 60 33 3
---------------------------------------------------------------------------

The International Finance Corporation (IFC), a member of the World
Bank Group, was established in 1956 to further economic development by
encouraging the growth of private enterprise in developing countries.
The IFC provides technical assistance, and mobilizes loans and equity
investments for promising ventures. The IFC is now playing an important
role in the former Soviet Union and Eastern Europe's transition to free
markets and private enterprise, due to the IFC's special expertise in
foreign investment, capital markets development, and privatization. The
U.S. completed its contributions to the IFC in 1997. The IFC is not
expected to require any additional capital in the foreseeable future.

During World Bank FY 1997 the Corporation approved 246 new
investments totalling $6.7 billion, and net investments for the IFC's
own account were $3.3 billion. IFC's committed loan and equity portfolio
(for its own account) was $10.5 billion as of June 30, 1997.

contribution to multilateral investment guarantee agency

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-0084-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 22 22 22
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 22 22 22
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

The Multilateral Investment Guarantee Agency (MIGA) is an
international development institution affiliated with the World Bank
Group. MIGA is designed to encourage the flow of foreign private
investment to and among developing countries by: (1) issuing guarantees
against noncommercial risks and (2) carrying out a wide range of
investment promotion activities.

Negotiations are now underway for MIGA's first General Capital
Increase (GCI), and on related policy measures. The first U.S.
contribution will not be requested before the year 2000.

During World Bank FY 1997, the MIGA issued 70 guarantees, with a
maximum contingent liability of $614 million, to facilitate aggregate
direct investment of $4.7 billion. There are no claims pending against
MIGA.

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] $21,152,000, 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. (Foreign Operations, Export Financing, and
Related Programs Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-0072-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Paid-in capital................... 26 25 26
00.02 Fund for special operations....... 10 21 21
--------- --------- ----------
10.00 Total obligations (object class
33.0)......................... 36 46 47
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 3,798 3,798 3,798
22.00 New budget authority (gross)...... 36 46 47
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,834 3,844 3,845
23.95 New obligations................... -36 -46 -47
24.40 Unobligated balance available, end
of year: Uninvested............. 3,798 3,798 3,798
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 36 46 47
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 186 116 89
73.10 New obligations................... 36 46 47
73.20 Total outlays (gross)............. -106 -73 -36
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 116 89 100
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 6 5 6
86.93 Outlays from current balances..... 100 68 31
--------- --------- ----------
87.00 Total outlays (gross)........... 106 73 36
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 36 46 47
90.00 Outlays........................... 106 73 36
---------------------------------------------------------------------------

The Inter-American Development Bank (IDB) promotes sustainable
economic growth and development, poverty reduction, private sector
development, and good governance in Latin America and the Caribbean
through loans and technical assistance. Since its inception in 1960, the
Bank has lent over $90 billion.

The Bank lends money through: (1) the Ordinary Capital window that
lends at market-based rates; and, (2) the Fund for Special Operations
(FSO), which makes loans on concessional terms to the region's poorest
nations.

The 1999 request includes: (1) budget authority of $25.6 million for
paid-in capital subscriptions and $1,503.7 million in program
limitations for callable capital subscriptions for payments on the U.S.
contribution to the IDB's eighth general

[[Page 937]]

capital increase; and, (2) budget authority of $21.2 million for the
final U.S. payment to the Eighth Replenishment of the FSO.

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), [$150,000,000] $250,000,000, of which [$50,000,000] $150,000,000
shall be available for contributions previously due, to remain available
until expended. (Foreign Operations, Export Financing, and Related
Programs Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-0076-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Paid-in capital................... 13 13 13
00.02 Asian development fund............ 100 150 250
--------- --------- ----------
10.00 Total obligations (object class
33.0)......................... 113 163 263
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 748 748 748
22.00 New budget authority (gross)...... 113 163 263
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 861 911 1,011
23.95 New obligations................... -113 -163 -263
24.40 Unobligated balance available, end
of year: Uninvested............. 748 748 748
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 113 163 263
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 741 673 649
73.10 New obligations................... 113 163 263
73.20 Total outlays (gross)............. -181 -187 -166
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 673 649 746
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 4 18 29
86.93 Outlays from current balances..... 177 169 137
--------- --------- ----------
87.00 Total outlays (gross)........... 181 187 166
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 113 163 263
90.00 Outlays........................... 181 187 166
---------------------------------------------------------------------------

The Asian Development Bank (ADB) fosters broad-based sustainable
economic development, poverty alleviation, and cooperation in the Asia/
Pacific region. The Bank lends at market-based rates through its
ordinary capital window and on highly concessional terms to the region's
poorer nations through the Asian Development Fund (ADF).

The United States successfully negotiated a 41 percent reduction in
U.S. contributions to the seventh replenishment of the Asian Fund.

In 1997, the Bank lent $7.7 billion of its ordinary capital
resources and extended loans and grants of $1.6 billion from its ADF
resources for development projects. Since its founding in 1966, the ADB
has loaned over $46.9 billion, and the ADF has loaned over $19.1
billion. The Bank has made cumulative equity investments of $428
million.

The 1999 request includes: (1) budget authority of $13.2 million for
paid-in capital subscriptions and $647.9 million in program limitations
for callable capital subscriptions for the fourth of six installments on
the U.S. subscription to the ADB's fourth general capital increase; and,
(2) $250 million in budget authority to participate in the sixth
replenishment of ADF resources, and to partially clear outstanding unmet
commitments on the U.S. share of the $4.2 billion fifth replenishment of
ADF resources.

contribution to the african development fund

For the United States contribution by the Secretary of the Treasury
to the increase in resources of the African Development Fund,
[$45,000,000] $155,000,000, to remain available until expended [and
which shall be available for contributions previously due] of which
$88,333,334 shall be for contributions previously due. (Foreign
Operations, Export Financing, and Related Program Appropriations Act,
1998).

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-0079-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
33.0)........................... 45 155
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 45 155
23.95 New obligations................... -45 -155
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 45 155
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 420 335 308
73.10 New obligations................... 45 155
73.20 Total outlays (gross)............. -85 -72 -77
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 335 308 386
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 85 72 77
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 45 155
90.00 Outlays........................... 85 72 77
---------------------------------------------------------------------------

The African Development Bank (AFDB) lends at market-based rates for
economic development in countries on the African continent. The United
States joined the AFDB in 1983 when membership was open to non-regional
countries. In 1997, the AFDB financed 21 new projects worth $798
million. Since its inception in 1963, the AFDB has financed 746 projects
worth over $20.6 billion.

The African Development Fund (AFDF), the concessional lending
affiliate of the African Development Bank, makes loans to the poorest
African nations. The AFDF-7 replenishment negotiations, which were
concluded in May 1996, brought about far-reaching and comprehensive
restructuring and institutional reforms. In 1997, the AFDF loaned $807
million for 84 projects. By the end of 1997 and since its inception in
1974, cumulative AFDF lending totaled $11.4 billion for 1,267
development projects.

The 1999 request includes $155 million in budget authority: $66.7
million for the third installment plus $88.3 million in arrears for the
first two installments on the U.S. share of the seventh replenishment of
AFDF resources.

[[Page 938]]

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. (Foreign Operations,
Export Financing, and Related Programs Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-0088-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
33.0)........................... 12 36 36
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 12 36 36
23.95 New obligations................... -12 -36 -36
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 12 36 36
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 35 16 19
73.10 New obligations................... 12 36 36
73.20 Total outlays (gross)............. -31 -32 -25
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 16 19 30
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 8 19 19
86.93 Outlays from current balances..... 23 14 6
--------- --------- ----------
87.00 Total outlays (gross)........... 31 32 25
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 12 36 36
90.00 Outlays........................... 31 32 25
---------------------------------------------------------------------------

The European Bank for Reconstruction and Development (EBRD) supports
market-oriented economic reform and democratic pluralism through
predominately private sector lending and investments in the nations of
Central and Eastern Europe and the former Soviet Union. Over three-
quarters of projects approved in 1996 were in the private sector. The
United States and other shareholders signed the articles of agreement of
the EBRD on May 29, 1990, and the Bank officially began operating on
April 15, 1991.

In April 1996, shareholders approved a doubling of EBRD's capital
base from ECU 10 billion to ECU 20 billion (approximately $24 billion).
The capital increase went into effect in April 1997, with the U.S.
subscribing to its shares on December 19, 1997. Under the capital
increase, paid-in contributions constitute 22.5 percent of total
capital, with the remainder callable. The annual payment for the U.S.'s
ten percent share dropped from $70 million under the initial
subscription to $35.8 million under the capital increase. At the end of
1996, the EBRD had approved over 450 loans and investments totalling
$12.4 billion.

The 1999 request consists of $35.8 million in budget authority for
paid-in capital subscriptions and $123.2 million in program limitations
for callable capital subscriptions for the second of eight installments
on the U.S. subscription to the general capital increase.

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 of
which $250,000 shall be available for contributions previously due:
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: Provided further, That of the amount
appropriated under this heading, not more than $41,250,000 may be
expended for the purchase of such capital shares in fiscal year 1998.]

[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.]
(Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1008-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
33.0)........................... 56 57
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 56 57
23.95 New obligations................... -56 -57
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 56 57
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 51
73.10 New obligations................... 56 57
73.20 Total outlays (gross)............. -56 -6 -11
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 51 40
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 56 6
86.93 Outlays from current balances..... 11
--------- --------- ----------
87.00 Total outlays (gross)........... 56 6 11
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 56 57
90.00 Outlays........................... 56 6 11
---------------------------------------------------------------------------

The North American Development Bank (NADBank) provides $2-3 billion
in financing for high priority environmental infrastructure projects in
the border region and, more broadly within the United States for NAFTA-
related community adjustment and investment. The Bank has begun its
environmental lending and guarantee operations in both the United States
and Mexico. NADBank operations provide significant direct benefits to
U.S. citizens, particularly those in the border states. The NADBank's
capital shares ($450 million in paid-in and $2.55 billion in callable
capital) were contributed equally by the United States and Mexico over a
four-year period. The final U.S. installment was appropriated in 1998.

The NADBank will finance environmental infrastructure projects that
have been certified by the U.S.-Mexican Border Environment Cooperation
Commission (BECC), an institution designed to assist border states and
local communities in coordinating border clean-up. Communities on both
sides of the border have long been plagued by problems such as raw
sewage dumped in boundary waters, unsafe drinking water, and inadequate
municipal waste disposal. Based on its paid-in and callable capital, the
NADBank will be able to provide partial guarantees of private sector
financing and borrow in capital markets to provide loans to help finance
the projects certified by the BECC. The NADBank has begun its environ-

[[Page 939]]

mental lending operations and approved financing for four projects in
1997.

In addition, 10 percent of the U.S. and Mexican shares of NADBank
will be available for NAFTA-related community adjustment and investment
in both countries, which need not be in the border region. In 1999, the
Administration proposes that $37 million be appropriated for the
Community Adjustment and Investment Program (CAIP). This appropriation
is sought in the Treasury chapter as a domestic assistance program. The
Secretary of Treasury would have the authority to transfer CAIP funds to
the NADBank or other Federal agencies to assist in carrying out the
program. The CAIP offers financing directly and through existing federal
credit programs, such as those run by the Small Business Administration,
to both new and existing businesses within communities that suffered job
losses as a result of changing trade patterns with Canada and Mexico.
The program launched its lending operations during 1997. An Advisory
Committee, which includes low income community representatives and non-
governmental organizations, helps ensure broad public participation in
the community adjustment window of the NADBank.

Contribution to 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] $50,000,000 to remain available until
expended, which shall be available for contributions previously due.
(Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-0089-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
33.0)........................... 28 30 50
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 28 30 50
23.95 New obligations................... -28 -30 -50
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 28 30 50
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 240 268 253
73.10 New obligations................... 28 30 50
73.20 Total outlays (gross)............. -45 -55
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 268 253 248
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1 1
86.93 Outlays from current balances..... 44 54
--------- --------- ----------
87.00 Total outlays (gross)........... 45 55
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 28 30 50
90.00 Outlays........................... 45 55
---------------------------------------------------------------------------

The Multilateral Investment Fund (MIF) is a component of the
Enterprise for the Americas Initiative, a program to unlock the
potential for domestic and foreign investment and encourage market-based
capital flows. The MIF, administered by the Inter-American Development
Bank, is a multilateral fund which provides grants and loans to support
private-sector development and investment sector reforms. Special
consideration is given to reforms that encourage private foreign direct
investment and promote privatization. Grants and loans are used for
technical assistance to identify and resolve investment constraints, for
investment in human capital, and for business infrastructure and
development.

The 1999 request for the MIF is $50 million for partial payment of
outstanding U.S. commitments to the U.S. share of MIF resources.

Department of the Treasury International Affairs Technical Assistance
Program

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Technical assistance.............. 5
--------- --------- ----------
10.00 Total obligations............... 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 5
23.95 New obligations................... -5
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 5
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 New obligations................... 5
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5
90.00 Outlays...........................
---------------------------------------------------------------------------

This account will provide technical assistance to other countries in
support of the responsibilities of the U.S. Treasury Department to
formulate, conduct and coordinate the international financial policies
of the United States. In addition to overseeing U.S. interests in the
work of international financial institutions, including the
International Monetary Fund, the World Bank and the various regional
development banks, the Treasury Department frequently has the lead
responsibility for implementing fiscal and financial policy aspects of
U.S. foreign policy toward individual countries. Technical assistance
provided through this account will facilitate key short- and medium-term
reforms in the policy and management areas of budget, tax, government
debt, financial institutions and financial crimes enforcement.

Using funding provided under the SEED and Freedom Support Acts, U.S.
Treasury Department advisors have provided policy and management advice
in the areas described above to countries in Eastern Europe and the
former Soviet Union in their transition to market economies and
democratic fiscal structures. Beginning in 1997, advisors have also
provided assistance, using funding from USAID Development Assistance and
the Economic Support Fund, to the governments of South Africa and Haiti.
The flexibility provided by direct funding will permit the Department to
be responsive when governments make decisions to implement key fiscal
and financial reforms, and allow it to act quickly to help these
governments strengthen governmental fiscal and financial institutions
during crucial transition periods toward market-oriented economies.

The proposed $5 million appropriation will fully fund approximately
10 resident advisors, including selected administrative costs and
intermittent expert visits in support of the advisors. This
appropriation will permit the continuation of the program in Haiti,
expansion of the program in southern Africa, and implementation of
programs in other emerging market economies. The Treasury Department
will closely coordinate with international financial institutions and
with USAID, the Department of State and other relevant U.S.

[[Page 940]]

Government agencies when determining where its technical assistance
program can have the greatest positive impact.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1045-2-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
41.0 Direct obligations: Grants,
subsidies, and contributions.... 4
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total obligations............... 5
---------------------------------------------------------------------------

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, [$192,000,000:
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 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
UNFPA: Provided further, That not more than one-half of this amount may
be provided to UNFPA before March 1, 1998, and that no later than
February 15, 1998, the Secretary of State shall submit a report to the
Committees on Appropriations indicating the amount UNFPA is budgeting
for the People's Republic of China in 1998: Provided further, That any
amount UNFPA plans to spend in the People's Republic of China in 1998
shall be deducted from the amount of funds provided to UNFPA after March
1, 1998, pursuant to the previous provisos: 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): Provided
further, That not less than $4,000,000 should be made available to the
World Food Program] $314,000,000. (Foreign Operations, Export Financing,
and Related Programs Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
01.01 UNICEF............................ 100 100 100
01.02 UN development program............ 76 98 105
01.03 UN population fund................ 43 25 25
01.08 Various other organizations....... 71 71 84
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 290 294 314
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 18
22.00 New budget authority (gross)...... 272 294 314
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 290 294 314
23.95 New obligations................... -290 -294 -314
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 170 192 314
42.00 Transferred from other accounts... 102 102
--------- --------- ----------
43.00 Appropriation (total)........... 272 294 314
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 272 294 314
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 57 40 46
73.10 New obligations................... 290 294 314
73.20 Total outlays (gross)............. -307 -288 -312
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 40 46 48
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 250 265 283
86.93 Outlays from current balances..... 57 23 29
--------- --------- ----------
87.00 Total outlays (gross)........... 307 288 312
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 272 294 314
90.00 Outlays........................... 307 288 312
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1005-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 34 32 30
1251 Repayments: Repayments and
prepayments..................... -2 -2 -2
--------- --------- ----------
1290 Outstanding, end of year........ 32 30 28
---------------------------------------------------------------------------

In addition to its assessed payments, the United States contributes
to voluntary funds of over 25 international organizations and programs
involved in a wide range of sustainable development, humanitarian, and
scientific activities. Any funds made available for United Nations
Population Fund will not be used for activities in the People's Republic
of China and will be maintained in a separate account and not commingled
with any other funds.

Credit accounts:

Debt Restructuring

For the cost, as defined in section 502 of the Congressional Budget
Act of 1974, of modifying direct loans and loan guarantees, as the
President may determine, for which funds have been appropriated or
otherwise made available for programs within the International Affairs
Budget Function 150, including the cost of selling, reducing, or
canceling amounts, through debt buybacks and swaps, owed to the United
States as a result of concessional loans made to eligible Latin American
and Caribbean countries, pursuant to part IV of the Foreign Assistance
Act of 1961; of modifying concessional [loans extended to] credit
agreements with least developed countries, as authorized under section
411 of the Agricultural Trade Development and Assistance Act of 1954, as
amended; and of modifying any obligation, or portion of such obligation
[for Latin American countries] of Honduras to pay for purchases of
United States agricultural commodities guaranteed by the Commodity
Credit Corporation under export credit guarantee programs authorized
pursuant to section 5(f) of the Commodity Credit Corporation Charter Act
of June 29, 1948, as amended, section 4(b) of the Food for Peace Act of
1966, as amended (Public Law 89-808), or section 202 of the Agricultural
Trade Act of 1978, as amended (Public Law 95-501); [$27,000,000]
$72,000,000, to remain available until expended[: Provided, That not to
exceed $1,500,000 of such funds may be used for implementation of
improvements in the foreign credit reporting system of the United States
Government]. (Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1998.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-0091-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 6 6 6
07.99 Total balance, end of year........ 6 6 6
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
01.01 Paris club debt reduction......... 26 48
01.02 Jordan debt reduction............. 21
01.03 Africa concessional debt
initiative...................... 18
--------- --------- ----------

[[Page 941]]

10.00 Total obligations (object class
41.0)......................... 21 26 66
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 25 31 32
22.00 New budget authority (gross)...... 27 27 72
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 52 58 104
23.95 New obligations................... -21 -26 -66
24.40 Unobligated balance available, end
of year: Uninvested............. 31 32 39
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 27 27 72
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 New obligations................... 21 26 66
73.20 Total outlays (gross)............. -21 -26 -66
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 21 15 36
86.93 Outlays from current balances..... 11 30
--------- --------- ----------
87.00 Total outlays (gross)........... 21 26 66
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 27 27 72
90.00 Outlays........................... 21 26 66
---------------------------------------------------------------------------

Paris Club Debt Reduction. For the poorest countries, debt reduction
provides an incentive to implement macroeconomic and structural reforms
necessary to improve economic performance and creditworthiness. The
combination of economic reform and debt reduction contribute to growth
and sustained development, which can mean greater opportunities for U.S.
commercial interests in these countries. For the poorest and most
heavily indebted countries, debt reduction will be undertaken in concert
with the Paris Club of creditor nations, including extraordinary debt
reduction under the Heavily-Indebted Poor Countries (HIPC) debt
initiative. The Administration anticipates that $37 million in
appropriations will fund debt reduction under Naples and HIPC terms for
qualifying countries. This request level, combined with funds previously
appropriated, will allow the U.S. in 1998-99 to provide approximately
$1.5 billion in face value debt reduction for the poorest countries,
potentially including Cameroon, Cote d'Ivoire, Mozambique, Tanzania,
Uganda, Bolivia, and Nicaragua. For agreements implemented in the
remainder of FY 1998 and subsequently, the Administration intends to
obligate funds for debt reduction at the date of the signing of a
bilateral framework agreement, to be concluded at the time of the
signing of the Paris Club Agreed Minute, rather than 30 days after the
conclusion of a formal U.S. bilateral debt agreement, as is currently
the practice. This change of date for budget cost obligations is
appropriate because the Paris Club Agreed Minute is the date when the
U.S. Government commits politically to reducing debt for a particular
country.

Concessional Debt Reduction for Africa. The President announced the
``Partnership for Growth and Opportunity in Africa'' on June 17, 1997.
The Africa Initiative will target countries undertaking the boldest
economic reforms to receive the maximum benefits from the program. Such
reforms will encompass governance issues, macroeconomic policy, trade
and investment policy, and investment in people. The best way the United
States can support Africa is by making trade and investment--not just
aid--the centerpiece of our economic relations. To support African
economic reform efforts, the Administration, at the discretion of the
President, will offer to provide 100% debt reduction of concessional
debt owed to the United States. This 100% debt reduction program will
complement Administration efforts to maximize debt relief for the most
heavily indebted poor countries under the HIPC debt initiative. The
Administration anticipates that $35 million in appropriations will fund
100% debt reduction for approximately $325 million in the face value of
concessional debts for qualifying African countries.

Funds allocated within the debt restructuring account are fungible
between these two programs to allow sufficient flexibility in effecting
international commitments. The resulting cash flows from debt reduction
are recorded in the debt reduction financing and liquidating accounts
for the Export-Import Bank, foreign military loans, the Department of
Agriculture's G.S.M. (Honduras only) and P.L. 480 programs, and the
Agency for International Development.

Debt Buyback/Swap Program. For Latin America and the Caribbean, the
Administration proposes that debt reduction be effected at zero cost
through buybacks and swaps of eligible concessional debt, linked to
commitment of local currency payments to support environment or child
survival projects. The Administration will be seeking new authority for
no-cost buybacks and swaps of P.L. 480 concessional debt and the
approval of the Appropriations Committee for this program.

AGENCY FOR INTERNATIONAL DEVELOPMENT

Federal Funds

General and special funds:

Sustainable 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, $1,210,000,000] $1,265,798,000, to
remain available until [September 30, 1999] expended: Provided, That [of
the amount appropriated under this heading, up to $22,000,000 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 $14,000,000 may be made
available for the African Development Foundation and shall be
apportioned directly to that agency: 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, not to exceed $2,500,000 [shall] may be
transferred to ``International Organizations and Programs'' for a
contribution to the International Fund for Agricultural Development
(IFAD)[, and that any such transfer of funds shall be subject to the
regular notification procedures of the Commit-

[[Page 942]]

tees 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 none of the funds made available under this heading may be
used for any activity which is in contravention to the Convention on
International Trade in Endangered Species of Flora and Fauna (CITES).

[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 headings ``Development
Assistance'' and ``Economic Support Fund'', 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 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]

[None of the funds appropriated in this Act may be made available
for the Government of Cambodia: Provided, That the restrictions under
this heading shall not apply to humanitarian, demining or election-
related programs or activities: Provided further, That such funds shall
be subject to the regular notification procedures of the Committees on
Appropriations: Provided further, That 30 days after enactment of this
Act, the President shall report to the Committees on Appropriations on
the results of the FBI investigation into the bombing attack in Phnom
Penh on March 30, 1997.]

[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 percent of its
total annual funding for international activities from sources other
than the United States Government: Provided, That the requirements of
the provisions of section 123(g) of the Foreign Assistance Act of 1961
and the provisions on private and voluntary organizations in title II of
the Foreign Assistance and Related Programs Appropriations Act, 1985 (as
enacted in Public Law 98-473) shall be superseded by the provisions of
this section, except that the authority contained in the last sentence
of section 123(g) may be exercised by the Administrator with regard to
the requirements of this paragraph.]
[Funds appropriated 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.] (Foreign Operations, Export Financing, and
Related Programs Appropriation Act, 1998.)

[International Fund for Ireland]

[For necessary expenses to carry out the provisions of chapter 4 of
part II of the Foreign Assistance Act of 1961, $19,600,000, which shall
be available for the United States contribution to the International
Fund for Ireland and shall be made available in accordance with the
provisions of the Anglo-Irish Agreement Support Act of 1986 (Public Law
99-415): Provided, That such amount shall be expended at the minimum
rate necessary to make timely payment for projects and activities:
Provided further, That funds made available under this heading shall
remain available until September 30, 1999]. (Foreign Operations, Export
Financing, and Related Programs Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1021-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Functional development assistance. 1,277 1,440 1,255
09.01 Reimbursable program.............. 3
--------- --------- ----------
10.00 Total obligations............... 1,280 1,440 1,255
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 404 271
22.00 New budget authority (gross)...... 1,133 1,168 1,255
22.10 Resources available from
recoveries of prior year
obligations..................... 15 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,552 1,440 1,255
23.95 New obligations................... -1,280 -1,440 -1,255
24.40 Unobligated balance available, end
of year: Uninvested............. 271
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 1,182 1,210 1,265
41.00 Transferred to other accounts... -52 -42 -10
--------- --------- ----------
43.00 Appropriation (total)......... 1,130 1,168 1,255
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,133 1,168 1,255
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 1,506 1,610 1,900
73.10 New obligations................... 1,280 1,440 1,255
73.20 Total outlays (gross)............. -1,165 -1,149 -1,041
73.40 Adjustments in expired accounts... 2
73.45 Adjustments in unexpired accounts. -15 -1
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 1,610 1,900 2,114
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 25 83 89
86.93 Outlays from current balances..... 1,140 1,066 952
--------- --------- ----------
87.00 Total outlays (gross)........... 1,165 1,149 1,041
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.45 Offsetting collections (cash)
from: Offsetting governmental
collections................... -3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,130 1,168 1,255
90.00 Outlays........................... 1,162 1,149 1,041
---------------------------------------------------------------------------

Sustainable Development Assistance Program.--The Sustainable
Development Assistance account funds sustainable development assistance
activities that are not related to child survival, disease prevention
and basic education. While these latter activities are funded in the
Child Survival and Disease Programs account, the Sustainable Development
Assistance account funds programs in the areas of economic growth,
democracy, family planning and global environment.

However, activities funded through both accounts are key components
of AID's principle mission of supporting the people of developing and
transitional countries in their efforts to achieve sustainable economic
and social progress. These activities support five key USAID strategic
goals:

(1) Encouraging broad-based economic growth and agricultural
development, with the objectives of expanding and strengthening critical
private markets, achieving enhanced

[[Page 943]]

agricultural development and food security, and, expanding access to
economic opportunity for the rural and urban poor.

(2) Strengthening democracy and good governance, with the objectives
of strengthening the rule of law and respect for human rights of both
men and women, encouraging credible and competitive political processes,
promoting the development of a politically active civil society, and
encouraging more transparent and accountable government institutions.

(3) Building human capacity through education and training, with the
objectives of expanding access to quality basic education, especially
for girls and women, and, increasing the contributions of institutions
of higher education to sustainable development.

(4) Stabilizing the world population and protecting human health,
with the objectives of reducing unintended pregnancies, improving infant
and child health and nutrition and reducing infant and child mortality,
reducing deaths, nutrition insecurity and adverse health outcomes to
women as a result of pregnancy and child birth, reducing HIV
transmission and the impact of the HIV/AIDS pandemic in developing
countries, and, reducing the threat of infectious diseases of major
public health importance.

(5) Protecting the world's environment, with the objectives of
preparing national environmental management strategies, improving
conservation of biologically significant habitats, reducing the rate of
growth of net emissions of greenhouse gases, increasing the access of
urban populations to adequate environmental services, conserving energy
through increased efficiency and reliance on renewable sources, and
reducing the loss of forest area.

The 1999 Request for Sustainable Development Assistance includes
funding for two Presidential Initiatives:

(1) African Trade and Investment which includes a $30 million
request for USAID to provide assistance to countries that are attempting
to implement critical economic policy reforms. The purpose of this
assistance is to expand the number of African countries that can attract
U.S. and other foreign trade and investment. By doing so, these
countries should be able to increase economic growth and employment and
reduce poverty. The initiative will provide a combination of program and
technical assistance to African nations that have demonstrated a clear
commitment to economic reform to help them design and implement trade
and investment-related legal and institutional reforms. By increasing
the access of these countries to trade and investment, this initiative
will support the broader Africa initiative that was proposed by the
President and has been supported by the Congress.

(2) Summit of the Americas which includes a $20 million request for
USAID to provide assistance in support of the key summit goals of
increased access to basic education, reduced levels of poverty and
achievement of hemispheric free trade. Specific AID activities to be
funded will include expansion of basic education in remote areas,
support for increased access to micro-finance, and technical assistance
to improve legal and institutional reforms necessary to reduce barriers
to trade and investment.

While exact allocations of Child Survival and Sustainable
Development Assistance funds will not be determined until funds are
actually appropriated, notional allocations by region and by strategic
goal are shown below (amounts are in millions of dollars):

Regional Allocations:
Africa........................................... $730
Asia/Near East................................... 298
Latin America/Caribbean.......................... 297
Global........................................... 363
Other............................................ 81
--------------------

Total.......................................... 1,769

Strategic Goal Allocations:
Economic Growth.................................. 464
Human Capacity Development....................... 98
Population, Health, & Nutrition.................. 780
Environment...................................... 290
Democracy........................................ 137
--------------------

Total.......................................... 1,769

The above figures include the amounts for which permissive transfers
for the Development Credit Authority and the International Fund for
Agricultural Development were requested.

Object Classification (in millions of dollars)

Direct obligations:

22.0 Transportation of things........ 4 2 2
23.2 Rental payments to others....... 5 5
25.1 Advisory and assistance services 16 15 15
25.2 Other services.................. 50 54 50
26.0 Supplies and materials.......... 9
41.0 Grants, subsidies, and
contributions................. 1,198 1,364 1,183
--------- --------- ----------
99.0 Subtotal, direct obligations.. 1,277 1,440 1,255
99.0 Reimbursable obligations.......... 3
--------- --------- ----------
99.9 Total obligations............... 1,280 1,440 1,255
---------------------------------------------------------------------------

Child Survival and Disease Programs Fund

For necessary expenses to carry out the provisions of chapters 1 and
10 of part I of the Foreign Assistance Act of 1961, for child survival,
basic education, assistance to combat tropical and other diseases, and
related activities, in addition to funds otherwise available for such
purposes, [$650,000,000] $502,836,000, to remain available until
expended: Provided, That this amount shall be made available for such
activities as: (1) immunization programs; (2) oral rehydration programs;
(3) health and nutrition programs, and related education programs, which
address the needs of mothers and children; (4) water and sanitation
programs; (5) assistance for displaced and orphaned children; (6)
programs for the prevention, treatment, and control of, and research on,
tuberculosis, HIV/AIDS, polio, malaria and other diseases; and (7) [up
to $98,000,000 for] basic education programs for children[; and (8) a
contribution on a grant basis to the United Nations Children's Fund
(UNICEF) pursuant to section 301 of the Foreign Assistance Act of 1961].
(Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 463 587 504
--------- --------- ----------
10.00 Total obligations............... 463 587 504
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 37
22.00 New budget authority (gross)...... 500 550 504
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 500 587 504
23.95 New obligations................... -463 -587 -504
24.40 Unobligated balance available, end
of year: Uninvested............. 37
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 600 650 504
41.00 Transferred to other accounts..... -100 -100
--------- --------- ----------
43.00 Appropriation (total)........... 500 550 504
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 500 550 504
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 458 831
73.10 New obligations................... 463 587 504
73.20 Total outlays (gross)............. -5 -214 -469
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 458 831 866
----------------------------------------------------------------------------

[[Page 944]]

Outlays (gross), detail:
86.90 Outlays from new current authority 5 39 36
86.93 Outlays from current balances..... 175 433
--------- --------- ----------
87.00 Total outlays (gross)........... 5 214 469
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 500 550 504
90.00 Outlays........................... 5 214 469
---------------------------------------------------------------------------

This program provides economic resources to developing countries to
support programs to: (1) improve infant and child health nutrition with
the aim of reducing infant and child mortality rates; (2) reduce HIV
transmission and the impact of the HIV/AIDS pandemic in developing
countries; (3) reduce the threat of infectious diseases of major public
health importance such as polio and malaria; and (4), expand access to
quality basic education, especially for girls and women.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1095-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
21.0 Travel and transportation of
persons......................... 4
25.2 Other services.................... 25
41.0 Grants, subsidies, and
contributions................... 434 587 504
--------- --------- ----------
99.9 Total obligations............... 463 587 504
---------------------------------------------------------------------------

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] $464,500,000, to remain
available until September 30, [1999] 2000, which shall be available,
notwithstanding any other provision of law, for economic assistance and
for related programs for Eastern Europe and the Baltic States.
(b) Funds appropriated under this heading 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) None of the funds appropriated under this heading may be made
available for new housing construction or repair or reconstruction of
existing housing in Bosnia and Herzegovina unless directly related to
the efforts of United States troops to promote peace in said country.]
[(e) 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 532 of this Act shall apply.]
[(f) The President is authorized to withhold funds appropriated
under this heading made available for economic revitalization programs
in Bosnia and Herzegovina, if he determines and certifies to the
Committees on Appropriations that the Federation of Bosnia and
Herzegovina has not complied with article III of annex 1-A of the
General Framework Agreement for Peace in Bosnia and Herzegovina
concerning the withdrawal of foreign forces, and that intelligence
cooperation on training, investigations, and related activities between
Iranian officials and Bosnian officials has not been terminated.]
[(g) Not to exceed $200,000,000 of the funds appropriated under this
heading may be made available for Bosnia and Herzegovina exclusive of
assistance for police training.]
[(h) Not to exceed $7,000,000 of the funds made available for Bosnia
and Herzegovina may be made available for the cost, as defined in
section 502 of the Congressional Budget Act of 1974, of modifying direct
loans and loan guarantees for said country.] (Foreign Operations, Export
Financing, and Related Programs Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1010-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations................. 367 652 463
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 119 169
22.00 New budget authority (gross)...... 406 483 463
22.10 Resources available from
recoveries of prior year
obligations..................... 12
22.21 Unobligated balance transferred to
other accounts.................. -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 536 652 463
23.95 New obligations................... -367 -652 -463
24.40 Unobligated balance available, end
of year: Uninvested............. 169
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 475 485 465
41.00 Transferred to other accounts..... -69 -2 -2
--------- --------- ----------
43.00 Appropriation (total)........... 406 483 463
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 406 483 463
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 839 655 830
73.10 New obligations................... 367 652 463
73.20 Total outlays (gross)............. -539 -479 -304
73.45 Adjustments in unexpired accounts. -12
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 655 830 991
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 101 24 23
86.93 Outlays from current balances..... 438 455 280
--------- --------- ----------
87.00 Total outlays (gross)........... 539 479 304
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 406 483 463
90.00 Outlays........................... 539 479 304
---------------------------------------------------------------------------

This account provides funds to promote country-specific strategies
that build on common, region-wide strategic goals, including economic
restructuring, democratic transition, and social stabilization.
Authorized Support for Eastern European Democracy (SEED) programs
concentrate on: (a) the development of market economies and a strong
private sector; (b) the development and strengthening of institutions
necessary for sustainable democracy; and, (c) the improvement of the
basic quality of life in selected areas. This interagency program is
coordinated out of the State Department's Bureau of European and
Canadian Affairs.

The single largest SEED program funded in this account is Bosnia,
which remains a major Administration priority. Reconstruction needs and
support for local police continue to be significant in this country as
it moves towards stability

[[Page 945]]

and normalcy. The request for 1999 also includes $12.5 million for the
first of four tranches to capitalize a $100 million trust fund, on a 50-
50 basis, in a public-private partnership with a number of U.S.
foundations. This trust is designed to help sustain support for
democracy and economic reform through support for non-governmental
organizations in countries where U.S. direct assistance has been phased
out.

Object Classification (in millions of dollars)

Direct obligations:

11.8 Personnel compensation: Special
personal services payments.... 2 3 3
21.0 Travel and transportation of
persons....................... 1 1 1
25.1 Advisory and assistance services 15 36 36
25.2 Other services.................. 55 107 52
41.0 Grants, subsidies, and
contributions................. 291 505 371
--------- --------- ----------
99.0 Subtotal, direct obligations.. 364 652 463
41.0 Allocation Account: Grants,
subsidies, and contributions.... 3
--------- --------- ----------
99.9 Total obligations............... 367 652 463
---------------------------------------------------------------------------

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, [$770,000,000] $925,000,000, to remain
available until September 30, [1999] 2000: 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 the Government of Russia--
(1) unless that government is making progress in implementing
comprehensive economic reforms based on market principles, private
ownership, negotiating repayment of commercial debt, respect for
commercial contracts, and equitable treatment of foreign private
investment;
(2) if that government applies or transfers United States
assistance to any entity for the purpose of expropriating or seizing
ownership or control of assets, investments, or ventures; and
(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, demining, 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)] (b) Funds appropriated under title II of this Act, including
funds appropriated under this heading, may be made available 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) 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.]
[(i)] (c) 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 proposes 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.
[(j)(1) Of the funds appropriated under this heading that are
allocated for assistance for the Government of Russia, 50 percent shall
be withheld from obligation until the President determines and certifies
in writing to the Committees on Appropriations that the Government of
Russia has terminated implementation of arrangements to provide Iran
with technical expertise, training, technology, or equipment necessary
to develop a nuclear reactor, related nuclear research facilities or
programs, or ballistic missile capability.
(2) Notwithstanding paragraph (1) assistance may be provided for the
Government of Russia if the President determines and certifies to the
Committees on Appropriations that making such funds available: (A) is
vital to the national security interest of the United States; and (B)
that the Government of Russia is taking meaningful steps to limit major
supply contracts and to curtail the transfer of technology and
technological expertise related to activities referred to in paragraph
(1).]
[(k) Of the funds appropriated under this heading, not less than
$225,000,000 shall be made available for Ukraine, which sum shall be
provided with the understanding that Ukraine will undertake significant
economic reforms which are additional to those which were undertaken in
the previous fiscal year: Provided, That 50 percent of the amount made
available in this subsection, exclusive of funds made available for
election related initiatives and nuclear reactor safety activities,
shall be withheld from obligation and expenditure until the Secretary of
State determines and certifies no later than April 30, 1998, that the
Government of Ukraine has made significant progress toward resolving
complaints made by United States investors to the United States embassy
prior to April 30, 1997: Provided further, That funds made available
under this subsection, and funds appropriated for Ukraine in the Foreign
Operations, Export Financing, and Related Programs Appropriations Act,
1997 as contained in Public Law 104-208 shall be made available to
complete the preparation of safety analysis reports at each nuclear
reactor in Ukraine over the next three years.]
[(l) Of the funds appropriated under this heading, not less than
$250,000,000 shall be made available for assistance for the Southern
Caucasus region: Provided, That of the funds provided under this
subsection 37 percent shall be made available for Georgia and 35 percent
shall be made available for Armenia: Provided further, That of the funds
made available for the Southern Caucasus region, 28 percent should be
used for reconstruction and remedial activities relating to the
consequences of conflicts within the region, especially those in the
vicinity of Abkhazia and Nagorno-Karabakh: Provided further, That if the
Secretary of State after May 30, 1998, determines and reports to the
relevant committees of Congress that the full amount of reconstruction
and remedial funds that may be made available under the previous proviso
cannot be effectively utilized, up to 62.5 percent of the amount
provided under the previous proviso for reconstruction and remediation
may be used for other purposes under this heading.]
[(m)] (d) Funds provided under [the previous subsection] this
heading [shall] may be made available for humanitarian assistance for
refugees, displaced persons, and needy civilians affected by the
conflicts in the Southern Caucasus region, including those in the
vicinity of Abkhazia and Nagorno-Karabakh, notwithstanding any other
provision of this or any other Act.
[(n)] (e) Funds made available under this Act or any other Act may
not be provided for assistance to the Government of Azerbaijan

[[Page 946]]

until the President determines, and so reports to the Congress, that the
Government of Azerbaijan is taking demonstrable steps to cease all
blockades 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 democracy or assistance under title V
of the FREEDOM Support Act and section 1424 of Public Law 104-201;
(2) any assistance provided by the Trade and Development Agency
under section 661 of the Foreign Assistance Act of 1961 (22 U.S.C.
2421); and
(3) any activity carried out by a member of the United States
and Foreign Commercial Service while acting within his or her
official capacity.
[(o) None of the funds appropriated under this heading or in prior
appropriations legislation may be made available to establish a joint
public-private entity or organization engaged in the management of
activities or projects supported by the Defense Enterprise Fund.]
(Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1093-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations................. 518 990 922
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 262 223 3
22.00 New budget authority (gross)...... 470 769 922
22.10 Resources available from
recoveries of prior year
obligations..................... 4
22.21 Unobligated balance transferred to
other accounts.................. -8
22.22 Unobligated balance transferred
from other accounts............. 14 1
22.30 Unobligated balance expiring...... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 741 993 925
23.95 New obligations................... -518 -990 -922
24.40 Unobligated balance available, end
of year: Uninvested............. 223 3 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 625 770 925
41.00 Transferred to other accounts..... -155 -2 -3
42.00 Transferred from other accounts... 1
--------- --------- ----------
43.00 Appropriation (total)........... 470 769 922
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 470 769 922
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 1,097 906 1,178
73.10 New obligations................... 518 990 922
73.20 Total outlays (gross)............. -705 -718 -514
73.45 Adjustments in unexpired accounts. -4
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 906 1,178 1,586
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 34 59 61
86.93 Outlays from current balances..... 671 658 453
--------- --------- ----------
87.00 Total outlays (gross)........... 705 718 514
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 470 769 922
90.00 Outlays........................... 705 718 514
---------------------------------------------------------------------------

This account provides funds for a program of assistance to the
independent states that emerged from the former Soviet Union. These
programs for the New Independent States (NIS) have been envisioned since
the outset as short-term in nature. They are designed to jump-start the
process of political and economic transition to market democracies, and
to help address major socioeconomic dislocations where they occur during
these transitions. Funds will support economic restructuring through
helping to create conditions that encourage: trade and investment and
private sector growth; improved government fiscal policy, revenue
collection, and financial management; a market-oriented financial
sector; and a more efficient energy sector and a cleaner environment.
Funds will support democratic transitions through promoting citizen
participation, establishing the rule of law, and strengthening local
governments.

Program resources requested in 1999 will be increasingly focused on
the Partnership for Freedom (PFF) approach begun in 1998. This approach
is designed to achieve the mutual economic and political goals of the
United States and countries in the region. Building on traditional
government-to-government technical assistance and tailoring the overall
U.S. assistance program to unique NIS circumstances, the PFF supports
broader economic and social ties between the United States and the NIS.
It includes the development and expansion of sustainable partnerships,
professional linkages, and citizen exchanges. Programs will be
increasingly aimed at enhancing local public and private institutional
capacity as part of the comprehensive strategy to expand trade and
investment, develop and strengthen small and medium enterprises,
mobilize capital, reduce crime and corruption, and build viable civil
societies.

Object Classification (in millions of dollars)

Direct obligations:

11.8 Personnel compensation: Special
personal services payments.... 2 5 5
21.0 Travel and transportation of
persons....................... 1 5 5
25.1 Advisory and assistance services 15 35 35
25.2 Other services.................. 60 110 110
26.0 Supplies and materials.......... 33 30 30
41.0 Grants, subsidies, and
contributions................. 381 805 737
--------- --------- ----------
99.0 Subtotal, direct obligations.. 492 990 922
41.0 Allocation Account: Grants,
subsidies, and contributions.... 26
--------- --------- ----------
99.9 Total obligations............... 518 990 922
---------------------------------------------------------------------------

Development Fund for Africa

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1014-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program.................... 53 51
--------- --------- ----------
10.00 Total obligations............... 53 51
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 70 51
22.10 Resources available from
recoveries of prior year
obligations..................... 34
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 104 51
23.95 New obligations................... -53 -51
24.40 Unobligated balance available, end
of year: Uninvested............. 51
----------------------------------------------------------------------------

New budget authority (gross), detail:
42.00 Transferred from other accounts... 1
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 1,316 770 534
73.10 New obligations................... 53 51
73.20 Total outlays (gross)............. -565 -287 -196
73.45 Adjustments in unexpired accounts. -34

[[Page 947]]

74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 770 534 338
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 565 287 196
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 565 287 196
---------------------------------------------------------------------------

The Development Fund for Africa account provided development
assistance to sub-Saharan African countries. The account was designed to
enhance the U.S. Agency for International Development's (USAID's)
effectiveness in meeting Africa's development requirements. Beginning in
1996, development assistance for Africa has been appropriated under the
Sustainable Development Assistance and Child Survival and Disease
Programs accounts.

Object Classification (in millions of dollars)

Direct obligations:

25.2 Other services.................. 3 3
41.0 Grants, subsidies, and
contributions................. 49 48
--------- --------- ----------
99.0 Subtotal, direct obligations.. 52 51
41.0 Allocation Account: Grants,
subsidies, and contributions.... 1
--------- --------- ----------
99.9 Total obligations............... 53 51
---------------------------------------------------------------------------

Sahel Development Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1012-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
41.0)........................... 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1
23.95 New obligations................... -1
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 3 2 1
73.10 New obligations................... 1
73.20 Total outlays (gross)............. -1 -1
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 2 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 1 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1 1
---------------------------------------------------------------------------

The goal of the Sahel Regional Program was to increase food security
and ecological balance in Sahel, West Africa. Within that goal, the
program promoted trade and investment in the West Africa Region,
encouraged regional dialogue, and provided decision-makers with ready
access to relevant information on development issues.

Since 1988 these activities have been funded from the Development
Fund for Africa and Development Assistance accounts.

American Schools and Hospitals Abroad

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1013-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 13 6 3
73.20 Total outlays (gross)............. -7 -3 -3
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 6 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 7 3 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 7 3 3
---------------------------------------------------------------------------

Separate funding for American Schools and Hospitals Abroad ceased in
1994. This account contains remaining balances from prior activity.
Financing of key institutions that meet important foreign policy and
developmental criteria will be done within the regular economic and
development assistance accounts.

Sub-Saharan Africa Disaster Assistance

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1040-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 2 3 3
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3 3 3
24.40 Unobligated balance available, end
of year: Uninvested............. 3 3 3
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 8 6 4
73.20 Total outlays (gross)............. -1 -2 -2
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 6 4 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 1 2 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1 2 2
---------------------------------------------------------------------------

In 1993, this account provided funding for timely relief,
rehabilitation and reconstruction for disasters in Africa. Since 1994,
these activities have been funded under the International Disaster
Assistance Program.

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, [$190,000,000]
$205,000,000, to remain available until expended. (Foreign Operations,
Export Financing, and Related Programs Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1035-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations................. 203 227 205
----------------------------------------------------------------------------

[[Page 948]]

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 45 37
22.00 New budget authority (gross)...... 190 190 205
22.10 Resources available from
recoveries of prior year
obligations..................... 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 240 227 205
23.95 New obligations................... -203 -227 -205
24.40 Unobligated balance available, end
of year: Uninvested............. 37
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 190 190 205
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 226 254 303
73.10 New obligations................... 203 227 205
73.20 Total outlays (gross)............. -170 -178 -172
73.45 Adjustments in unexpired accounts. -5
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 254 303 336
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 34 48 51
86.93 Outlays from current balances..... 136 130 121
--------- --------- ----------
87.00 Total outlays (gross)........... 170 178 172
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 190 190 205
90.00 Outlays........................... 170 178 172
---------------------------------------------------------------------------

The International Disaster Assistance (IDA) account provides funds
for two separate Offices. The Office of U.S. Foreign Disaster Assistance
(OFDA) manages relief, rehabilitation, and reconstruction assistance to
foreign countries struck by natural and man-made disasters and supports
disaster prevention, mitigation and preparedness. OFDA's program has
been placing increasing emphasis on complex emergencies; a product of
ethnic and national tensions leading to civil strife and the
displacement of large numbers of people. The $160 million request for
OFDA for 1999 will be used to provide temporary shelter, blankets,
supplementary food, potable water, medical supplies and agricultural
rehabilitation aid, including seeds and hand tools.

The Office of Transition Initiatives (OTI) promotes the successful
transition of countries from the initial crisis stage of a complex
emergency (frequently addressed by OFDA) to the path of sustainable
development. OTI seeks to promote peace and stability which can include:
support for demobilization and re-integration of ex-combatants into
civil society; landmine awareness; community self-help projects that
reduce tension and promote democratic processes; and conflict
resolution. The 1999 request for OTI includes an increase of $15 million
to $45 million. Since its inception in 1994, OTI has established a
successful track record and requires additional funding to respond to
the significant number of opportunities for peaceful transitions from
complex emergencies.

Object Classification (in millions of dollars)

Direct obligations:

11.8 Personnel compensation: Special
personal services payments.... 4 5 5
21.0 Travel and transportation of
persons....................... 2 1 1
25.2 Other services.................. 20 18 17
26.0 Supplies and materials.......... 6 6 6
41.0 Grants, subsidies, and
contributions................. 170 197 176
--------- --------- ----------
99.0 Subtotal, direct obligations.. 202 227 205
41.0 Allocation Account: Grants,
subsidies, and contributions.... 1
--------- --------- ----------
99.9 Total obligations............... 203 227 205
---------------------------------------------------------------------------

Operating Expenses of the Agency for International Development

For necessary expenses to carry out the provisions of section 667,
[$473,000,000: Provided, That none of the funds appropriated by this Act
for programs administered by the Agency for International Development
may be used to finance printing costs of any report or study (except
feasibility, design, or evaluation reports or studies) in excess of
$25,000 without the approval of the Administrator of the Agency or the
Administrator's designee] $483,858,000, to remain available until
September 30, 2000. (Foreign Operations, Export Financing, and Related
Programs Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1000-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
Direct program:

00.01 Direct program.................. 505 504 497
00.02 Foreign national separation fund 2 2 2
09.00 Reimbursable program.............. 6 5 5
--------- --------- ----------
10.00 Total obligations............... 513 511 504
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 40 32 16
22.00 New budget authority (gross)...... 494 484 489
22.10 Resources available from
recoveries of prior year
obligations..................... 12 10 10
22.30 Unobligated balance expiring...... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 545 526 515
23.95 New obligations................... -513 -511 -504
24.40 Unobligated balance available, end
of year: Uninvested............. 32 16 11
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 471 473 484
42.00 Transferred from other accounts. 17 6
--------- --------- ----------
43.00 Appropriation (total)......... 488 479 484
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 6 5 5
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 494 484 489
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 168 209 226
73.10 New obligations................... 513 511 504
73.20 Total outlays (gross)............. -460 -484 -479
73.45 Adjustments in unexpired accounts. -12 -10 -10
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 209 226 241
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 361 354 358
86.93 Outlays from current balances..... 93 125 116
86.97 Outlays from new permanent
authority....................... 6 5 5
--------- --------- ----------
87.00 Total outlays (gross)........... 460 484 479
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -6 -5 -5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 488 479 484
90.00 Outlays........................... 455 479 474
---------------------------------------------------------------------------

These funds cover the appropriated dollar costs of managing U.S.
Agency for International Development (USAID) pro-

[[Page 949]]

grams, including salaries and other expenses of direct hire personnel.
USAID currently maintains resident staff in more than 70 foreign
countries as well as a headquarters in Washington, which supports field
programs and manages regional and worldwide activities.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 162 163 167
11.3 Other than full-time permanent 4 4 4
11.5 Other personnel compensation.. 10 9 10
11.8 Special personal services
payments.................... 41 37 38
--------- --------- ----------
11.9 Total personnel compensation 217 213 219
12.1 Civilian personnel benefits..... 48 54 55
13.0 Benefits for former personnel... 3 1 1
21.0 Travel and transportation of
persons....................... 21 25 24
22.0 Transportation of things........ 9 8 8
23.1 Rental payments to GSA.......... 11 25 26
23.2 Rental payments to others....... 35 24 24
23.3 Communications, utilities, and
miscellaneous charges......... 12 12 13
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 5 2 3
25.2 Other services.................. 47 62 53
25.3 Purchases of goods and services
from Government accounts...... 37 31 31
25.4 Operation and maintenance of
facilities.................... 3 5 5
25.7 Operation and maintenance of
equipment..................... 12 15 15
25.8 Subsistence and support of
persons....................... 1
26.0 Supplies and materials.......... 7 6 6
31.0 Equipment....................... 32 16 13
32.0 Land and structures............. 3 5
41.0 Grants, subsidies, and
contributions................. 2
42.0 Insurance claims and indemnities 1 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 506 506 499
99.0 Reimbursable obligations.......... 6 5 5
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total obligations............... 513 511 504
---------------------------------------------------------------------------

Personnel Summary

1001 Full-time equivalent employment. 2,608 2,588 2,573
1011 Exempt Full-time equivalent
employment.................... 13 10 10
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 5 5 5
---------------------------------------------------------------------------

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]
$44,552,000. (Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1036-0-1-153 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
13.0)........................... 44 44 45
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 44 44 45
23.95 New obligations................... -44 -44 -45
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 44 44 45
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 New obligations................... 44 44 45
73.20 Total outlays (gross)............. -44 -44 -45
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 44 44 45
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 44 44 45
90.00 Outlays........................... 44 44 45
---------------------------------------------------------------------------

The 1999 request will finance the 1999 installment of the unfunded
liability created by the addition of the U.S. Agency for International
Development (USAID) Foreign Service personnel to the foreign service
retirement system and by subsequent salary increases and changes in
legislation affecting benefits.

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] $33,000,000, to remain available until September 30,
[1999] 2000, which sum shall be available for the Office of the
Inspector General of the Agency for International Development. (Foreign
Operations, Export Financing, and Related Programs Appropriations Act,
1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 30 35 36
--------- --------- ----------
10.00 Total obligations............... 30 35 36
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 9 10 4
22.00 New budget authority (gross)...... 30 29 33
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 39 39 37
23.95 New obligations................... -30 -35 -36
24.40 Unobligated balance available, end
of year: Uninvested............. 10 4 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 30 29 33
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 7 12 19
73.10 New obligations................... 30 35 36
73.20 Total outlays (gross)............. -25 -28 -32
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 12 19 23
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 23 20 23
86.93 Outlays from current balances..... 2 8 9
--------- --------- ----------
87.00 Total outlays (gross)........... 25 28 32
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 30 29 33
90.00 Outlays........................... 25 28 32
---------------------------------------------------------------------------

The funds cover the costs of operations of the Office of the
Inspector General, Agency for International Development, and include
salaries, expenses, and support costs of the Inspector General's
personnel as well as costs associated with providing for the physical
security of Agency personnel at overseas missions.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 13 14 14
11.5 Other personnel compensation.... 1 1
11.8 Special personal services
payments...................... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 15 15 16

[[Page 950]]

12.1 Civilian personnel benefits....... 4 4 4
21.0 Travel and transportation of
persons......................... 2 2 2
22.0 Transportation of things.......... 1 1
23.1 Rental payments to GSA............ 1 2 2
23.2 Rental payments to others......... 1 1 1
25.2 Other services.................... 1 4 4
25.3 Purchases of goods and services
from Government accounts........ 2 2 3
31.0 Equipment......................... 1 1 1
32.0 Land and structures............... 1 1 2
--------- --------- ----------
99.0 Subtotal, direct obligations.. 29 33 35
99.5 Below reporting threshold......... 1 2 1
--------- --------- ----------
99.9 Total obligations............... 30 35 36
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 72-1007-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 197 229 229
---------------------------------------------------------------------------

Public enterprise funds:

Property Management Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-4175-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
32.0)........................... 3 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 3 5 3
22.00 New budget authority (gross)...... 2 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5 6 3
23.95 New obligations................... -3 -3
24.40 Unobligated balance available, end
of year: Uninvested............. 5 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 2 1
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 3
73.10 New obligations................... 3 3
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 3 6
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -2 -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -2 -1
---------------------------------------------------------------------------

This Fund, as authorized by Public Law 101-513, is maintained for
the deposit of proceeds from the sale of overseas property acquired by
the Agency for International Development (USAID). The proceeds are
available to construct or otherwise acquire outside the United States:
(1) essential living quarters, office space, and necessary supporting
facilities for use of USAID personnel; and, (2) schools (including
dormitories and boarding facilities) and hospitals for use of USAID
personnel, U.S. Government personnel, and their dependents. In addition,
the proceeds may be used to equip, staff, operate, and maintain such
schools and hospitals.

Intragovernmental funds:

Advance Acquisition of Property--Revolving Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-4590-0-4-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1 1 1
24.40 Unobligated balance available, end
of year: Uninvested............. 1 1 1
---------------------------------------------------------------------------

This revolving fund finances the acquisition and rehabilitation of
U.S. Government-owned excess property, at minimal cost, for purchase by
friendly countries and eligible organizations, for use in conjunction
with economic development programs. Excess property, most of it obtained
from the Department of Defense, includes heavy construction equipment,
vehicles, heavy machinery, electrical generating equipment, and medical
equipment and supplies. The program is self-financed from service fees
and reimbursements by equipment purchasers ultimately funded from
development assistance appropriations to the Agency for International
Development.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 72-4590-0-4-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 2 1 1 1
------------ -------------- ------------ -------------
1999 Total assets.................... 2 1 1 1
NET POSITION:
3300 Cumulative results of operations.. 2 1 1 1
------------ -------------- ------------ -------------
3999 Total net position.............. 2 1 1 1
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2 1 1 1
-----------------------------------------------------------------------------------------------

Assistance for the New Independent States of the Former Soviet Union:
Ukraine Export Credit Insurance Program Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Guaranteed loan subsidy........... 8
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 8
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 13 1
22.21 Unobligated balance transferred to
other accounts.................. -4 -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 9
23.95 New obligations................... -8
24.40 Unobligated balance available, end
of year: Uninvested............. 1
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 11
73.10 New obligations................... 8
73.20 Total outlays (gross)............. -19
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 19
----------------------------------------------------------------------------

[[Page 951]]

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 19
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 72-0402-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 32
--------- --------- ----------
2159 Total loan guarantee levels..... 32
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... 13.20
--------- --------- ----------
2329 Weighted average subsidy rate... 13.20
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority..........
--------- --------- ----------
2339 Total subsidy budget authority..
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 19
--------- --------- ----------
2349 Total subsidy outlays........... 19
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, the subsidy costs associated with the direct
loans obligated and loan guarantees committed in 1992 and beyond
(including modifications of direct loans or loan guarantees that
resulted from obligations or commitments in any year) as well as for the
administrative expenses of this program. The subsidy amounts are
estimated on a net present value basis. The administrative expenses are
eliminated on a cash basis.

The Ukraine Export Credit Guarantee Program, which terminated in
1997, insured U.S. exporters against the risk of non-payment for their
goods on the part of Ukrainian entities. The program had multiple
objectives, including: (a) helping to feed the needy by pump-priming the
Ukrainian agricultural sector; (b) paving the way for the resumption of
U.S. Eximbank activity within the country; and, (c) encouraging the
requisite shift in orientation of the Ukrainian economy from statist to
private-sector led.

Assistance for the New Independent States of the Former Soviet Union:
Ukraine Export Credit Insurance Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1 26 27
22.00 New financing authority (gross)... 25 1 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 26 27 28
24.40 Unobligated balance available, end
of year: Uninvested............. 26 27 28
----------------------------------------------------------------------------

New financing authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 25 1 1
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -19
88.25 Interest on uninvested funds.. -1 -1 -1
88.40 Non-Federal sources........... -5
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -25 -1 -1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -25 -1 -1
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-4345-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation.................
--------- --------- ----------
2150 Total guaranteed loan
commitments...................
2199 Guaranteed amount of guaranteed
loan commitments................
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 81 142 61
2231 Disbursements of new guaranteed
loans........................... 61
2251 Repayments and prepayments........ -81 -61
2261 Adjustments: Terminations for
default that result in loans
receivable......................
--------- --------- ----------
2290 Outstanding, end of year........ 142 61
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 142 61
----------------------------------------------------------------------------

Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year......
2331 Disbursements for guaranteed
loan claims...................
2361 Write-offs of loans receivable..
--------- --------- ----------
2390 Outstanding, end of year......
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated in 1992 and beyond (including
modifications of direct loans that resulted from obligations in any
year). The amounts in this account are a means of financing and are not
included in the budget totals.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 72-4345-0-3-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 1 26 27 28
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:

1501 Defaulted guaranteed loans
receivable, gross.............
1505 Allowance for subsidy cost (-)..
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............
------------ -------------- ------------ -------------
1999 Total assets.................... 1 26 27 28
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 1 26 27 28
------------ -------------- ------------ -------------
2999 Total liabilities............... 1 26 27 28
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1 26 27 28
-----------------------------------------------------------------------------------------------

Debt Reduction, Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Payment to liquidating accounts... 27 14
00.02 Interest on Treasury borrowing
(Paris club debt reduction)..... 1 2
00.03 Interest on Treasury borrowing-EAI
debt............................ 15 16 9
--------- --------- ----------

[[Page 952]]

10.00 Total obligations............... 15 44 25
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1 49
22.00 New financing authority (gross)... 63 44 25
22.60 Redemption of debt................ -49
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 64 44 25
23.95 New obligations................... -15 -44 -25
24.40 Unobligated balance available, end
of year: Uninvested............. 49
----------------------------------------------------------------------------

New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 6 20 8
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 57 69 67
68.47 Portion applied to debt
reduction..................... -45 -50
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 57 24 17
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 63 44 25
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 New obligations................... 15 44 25
73.20 Total financing disbursements
(gross)......................... -15 -44 -25
87.00 Total financing disbursements
(gross)......................... 15 44 25
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
Federal sources:
88.00 Federal Sources-EAI
reestimate................
88.00 Federal sources--Paris club
debt reduction............ -8 -8
88.25 Interest on uninvested funds.. -4 -2
88.40 Repayment of principal--EAI
debt........................ -57 -57 -57
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -57 -69 -67
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 6 -25 -42
90.00 Financing disbursements........... -42 -25 -42
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-4137-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
--------- --------- ----------
1150 Total direct loan obligations...
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 396 339 351
1233 Disbursements: Purchase of loans
assets from a liquidating
account......................... 69 89
1251 Repayments: Repayments and
prepayments..................... -57 -57 -57
--------- --------- ----------
1290 Outstanding, end of year........ 339 351 383
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from restructuring loans administered by the Agency for
International Development.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 72-4137-0-3-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 1 49
Investments in US securities:
1106 Receivables, net..............
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 396 339 351 383
1405 Allowance for subsidy cost (-).. -169 -154 -192 -217
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 227 185 159 166
------------ -------------- ------------ -------------
1999 Total assets.................... 228 234 159 166
LIABILITIES:
Federal liabilities:

Debt:
2103 Debt (EAI).................... 228 234 140 90
2103 Debt (Paris Club debt
reduction).................. 19 28
------------ -------------- ------------ -------------
2999 Total liabilities............... 228 234 159 118
------------ -------------- ------------ -------------
4999 Total liabilities and net position 228 234 159 118
-----------------------------------------------------------------------------------------------

Loan Guarantees to Israel Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 341 397 485
22.00 New financing authority (gross)... 56 88 31
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 397 485 516
24.40 Unobligated balance available, end
of year: Uninvested............. 397 485 516
----------------------------------------------------------------------------

New financing authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 56 88 31
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -25 -31
88.40 Non-Federal sources........... -56 -63
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -56 -88 -31
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -56 -88 -31
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-4119-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 2,000
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 2,000
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 6,564 7,814 9,226
2231 Disbursements of new guaranteed
loans........................... 1,250 1,412
--------- --------- ----------
2290 Outstanding, end of year........ 7,814 9,226 9,226
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 7,814 9,226 9,226
---------------------------------------------------------------------------

[[Page 953]]

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 72-4119-0-3-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 341 463 551 582
------------ -------------- ------------ -------------
1999 Total assets.................... 341 463 551 582
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 341 397 551 582
------------ -------------- ------------ -------------
2999 Total liabilities............... 341 397 551 582
-----------------------------------------------------------------------------------------------

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, including the cost of guaranteed
loans designed to promote the urban and environmental policies and
objectives of part I of such Act, [$3,000,000] $6,000,000, to remain
available until [September 30, 1999] expended: Provided, That these
funds are available to subsidize loan principal, 100 percent 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] $6,053,000 to remain available until September
30, 2000, 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. (Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1998.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-0401-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 9 9 9
07.99 Total balance, end of year........ 9 9 9
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Direct program.................... 3 3 6
00.09 Direct program.................... 6 6 6
--------- --------- ----------
10.00 Total obligations............... 9 9 12
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 4 9 7
22.00 New budget authority (gross)...... 10 9 12
22.10 Resources available from
recoveries of prior year
obligations..................... 8
22.30 Unobligated balance expiring...... -4 -2 -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 18 16 17
23.95 New obligations................... -9 -9 -12
24.40 Unobligated balance available, end
of year: Uninvested............. 9 7 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 10 9 12
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 38 34 26
73.10 New obligations................... 9 9 12
73.20 Total outlays (gross)............. -5 -17 -14
73.45 Adjustments in unexpired accounts. -8
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 34 26 24
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 3 5 5
86.93 Outlays from current balances..... 2 12 9
--------- --------- ----------
87.00 Total outlays (gross)........... 5 17 14
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 10 9 12
90.00 Outlays........................... 5 17 14
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 72-0401-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 50 31 68
--------- --------- ----------
2159 Total loan guarantee levels..... 50 31 68
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... 7.97 9.70 8.82
--------- --------- ----------
2329 Weighted average subsidy rate... 7.97 9.70 8.82
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority.......... 4 3 6
--------- --------- ----------
2339 Total subsidy budget authority.. 4 3 6
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 2 3 6
--------- --------- ----------
2349 Total subsidy outlays........... 2 3 6
---------------------------------------------------------------------------

The Urban and Environmental Credit Program (formerly the Housing
Guaranty Program) provides long-term financing to developing countries
for innovative urban investment programs in areas such as shelter,
potable water, wastewater treatment, solid waste disposal, environmental
improvement of poor urban neighborhoods, and energy distribution. These
investments focus on improving the quality of life for the urban poor
through the development of infrastructure and the encouragement of
reforms in urban policy. The Urban and Environmental Credit Program
operates by guaranteeing loans from U.S. private investors to borrowers
in developing countries who are implementing urban programs which have
been approved by U.S.A.I.D.

As required by the Federal Credit Reform Act of 1990, this account
records, for the Urban and Environmental Credit Program, the subsidy
costs associated with the loan guarantees committed in 1992 and beyond,
as well as administrative expenses of this program. The subsidy amounts
are estimated on a present value basis; the administrative expenses are
estimated on a cash basis.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 1 2 2
11.8 Special personal services
payments...................... 1
--------- --------- ----------
11.9 Total personnel compensation.. 2 2 2
21.0 Travel and transportation of
persons......................... 1 1 1
23.2 Rental payments to others......... 1 1
25.3 Purchases of goods and services
from Government accounts........ 1 1 1
41.0 Grants, subsidies, and
contributions................... 3 3 6
--------- --------- ----------
99.0 Subtotal, direct obligations.. 7 8 11
99.5 Below reporting threshold......... 2 1 1
--------- --------- ----------
99.9 Total obligations............... 9 9 12
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 72-0401-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 20 30 30
---------------------------------------------------------------------------

[[Page 954]]

Urban and Environmental Credit Program Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 34 37 62
22.00 New financing authority (gross)... 3 25 12
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 37 62 74
24.40 Unobligated balance available, end
of year: Uninvested............. 37 62 74
----------------------------------------------------------------------------

New financing authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): (cash)..... 3 25 12
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -19 -5
88.25 Interest on uninvested funds.. -2 -3 -4
88.40 Non-Federal sources........... -1 -3 -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -3 -25 -12
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -2 -25 -12
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-4344-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 43 31 68
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 43 31 68
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 239 343 493
2231 Disbursements of new guaranteed
loans........................... 104 150 65
--------- --------- ----------
2290 Outstanding, end of year........ 343 493 558
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 343 493 558
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from loan guarantees under the Agency for International
Development (USAID) Urban and Environmental Credit Program committed in
1992 and beyond. The amounts in this account are a means of financing
and are not included in the budget totals.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 72-4344-0-3-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 35 37 62 74
Investments in US securities:
1106 Receivables, net.............. 36 36 18 16
------------ -------------- ------------ -------------
1999 Total assets.................... 71 73 80 90
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 35 53 62 74
------------ -------------- ------------ -------------
2999 Total liabilities............... 35 53 62 74
NET POSITION:
3100 Appropriated capital.............. 36 20 18 16
------------ -------------- ------------ -------------
3999 Total net position.............. 36 20 18 16
------------ -------------- ------------ -------------
4999 Total liabilities and net position 71 73 80 90
-----------------------------------------------------------------------------------------------

Housing and Other Credit Guaranty Programs Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Claims payments................... 48 27 15
00.02 Interest on borrowing............. 10 8 6
--------- --------- ----------
10.00 Total obligations............... 58 35 21
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 63
22.00 New budget authority (gross)...... 121 57 59
22.40 Capital transfer to general fund.. -47 -14
22.60 Redemption of debt................ -38 -24
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 121 35 21
23.95 New obligations................... -58 -35 -21
24.40 Unobligated balance available, end
of year: Uninvested............. 63
----------------------------------------------------------------------------

New budget authority (gross), detail:
60.05 Appropriation (indefinite)........ 38 25
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 83 57 34
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 121 57 59
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 5 5 5
73.10 New obligations................... 58 35 21
73.20 Total outlays (gross)............. -58 -35 -21
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 5 5 5
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 58 30 21
86.98 Outlays from permanent balances... 5
--------- --------- ----------
87.00 Total outlays (gross)........... 58 35 21
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources--Payments from
debt reduction financing
account..................... -27 -14
Non-Federal sources:
88.40 Receipts of principal
resulting from rescheduled
claims.................... -13 -11
88.40 Recoveries resulting from
rescheduled claims........ -56 -8 -1
88.40 Fees........................ -9 -5 -5
88.40 Interest & late pmt.
collection................ -18 -4 -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -83 -57 -34
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 38 25
90.00 Outlays........................... -25 -22 -13
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-4340-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 1,950 1,884 1,786
2231 Disbursements of new guaranteed
loans........................... 41 29
2251 Repayments and prepayments........ -107 -100 -101
2261 Adjustments: Terminations for
default that result in loans
receivable...................... -27 -15
--------- --------- ----------
2290 Outstanding, end of year........ 1,884 1,786 1,670
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 1,884 1,786 1,670
----------------------------------------------------------------------------

[[Page 955]]

Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year...... 476 467 385
2331 Disbursements for guaranteed
loan claims................... 43 27 15
Repayments of loans receivable:
2351 Repayments of loans receivable -11 -10
2351 Repayments of loans receivable
(EAI)....................... -52 -1 -5
2351 Repayments of loans receivable
(Paris Club debt reduction). -27 -14
Write-offs of loans receivable:
2361 Write-offs of loans receivable -28 -10
2361 Write-offs of loans receivable -42 -74
--------- --------- ----------
2390 Outstanding, end of year...... 467 385 287
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records, for the Urban and Environmental Credit Program, all cash flows
to and from the Government resulting from direct loans obligated and
loan guarantees committed prior to 1992. This account is shown on a cash
basis. All new activity in this program in 1992 and beyond is recorded
in corresponding program and financing accounts.

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 72-4340-0-3-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
0111 Revenue........................... 20 35 9 8
0112 Expense........................... -21 -9 -8 -6
------------ -------------- ------------ -------------
0119 Net income or loss (-)............ -1 26 1 2
------------ -------------- ------------ -------------
0199 Net income or loss................ -1 26 1 2
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury..... 4 5 5 5
Investments in US securities:
1104 Agency securities, par........
1206 Non-Federal assets: Receivables,
net.............................
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1701 Defaulted guaranteed loans,
gross......................... 476 506 385 287
1703 Allowance for estimated
uncollectible loans and
interest (-).................. -453 -224 -215 -214
1704 Defaulted guaranteed loans and
interest receivable, net...... 23 282 170 73
------------ -------------- ------------ -------------
1799 Value of assets related to
loan guarantees............. 23 282 170 73
1803 Other Federal assets: Property,
plant and equipment, net........
------------ -------------- ------------ -------------
1999 Total assets.................... 27 287 175 78
LIABILITIES:
Federal liabilities:

2102 Interest payable................ 5 4 14 6
2103 Debt............................ 110 85 72 48
2105 Other........................... 5 3 3 3
Non-Federal liabilities:

2201 Accounts payable................
2204 Liabilities for loan guarantees. 654 385 358 333
------------ -------------- ------------ -------------
2999 Total liabilities............... 774 477 447 390
NET POSITION:
3100 Appropriated capital.............. 182 183 151 155
3300 Cumulative results of operations.. -929 12 -65 -134
3500 Future funding requirements....... -385 -358 -333
------------ -------------- ------------ -------------
3999 Total net position.............. -747 -190 -272 -312
------------ -------------- ------------ -------------
4999 Total liabilities and net position 27 287 175 78
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

Micro and Small Enterprise Development Program Account

For the cost of direct loans and loan guarantees, $1,500,000, as
authorized by section 108 of the Foreign Assistance Act of 1961, as
amended: Provided, That such costs shall be as defined in section 502 of
the Congressional Budget Act of 1974: Provided further, That guarantees
of loans made under this heading in support of microenterprise
activities may guarantee up to 70 percent of the principal amount of any
such loans notwithstanding section 108 of the Foreign Assistance Act of
1961. In addition, for administrative expenses to carry out programs
under this heading, $500,000, all of which may be transferred to and
merged with the appropriation for Operating Expenses of the Agency for
International Development: Provided further, That funds made available
under this heading shall remain available until September 30, [1999]
2000. (Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Guaranty loan subsidy--
Microenterprise credits......... 1 3 1
00.09 Administrative expenses........... 1 1
--------- --------- ----------
10.00 Total obligations............... 1 4 2
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1 2
22.00 New budget authority (gross)...... 2 2 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3 4 2
23.95 New obligations................... -1 -4 -2
24.40 Unobligated balance available, end
of year: Uninvested............. 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 2 2 2
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 3 3 5
73.10 New obligations................... 1 4 2
73.20 Total outlays (gross)............. -1 -2 -2
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 3 5 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1 1
86.93 Outlays from current balances..... 1 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 1 2 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2 2 2
90.00 Outlays........................... 1 2 2
---------------------------------------------------------------------------

The Micro and Small Enterprise Development Program account supports
private sector activities in developing countries by providing direct
loans and loan guarantees to support local micro and small enterprises.

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, the subsidy costs associated with the loan
guarantees committed in 1992 and beyond, as well as administrative
expenses of this program. The subsidy amounts are estimated on present
value basis. Administrative expenses are estimated on a cash basis.

The MSED program works with financial institutions to increase the
flow of credit to small businesses in developing nations worldwide;
poverty reduction requires thriving micro and small businesses whose
success depends, in turn, on the ability to secure credit. The MSED
program: (a) stimulates the growth and expansion of private sector
activity by enhancing access to credit for micro and small businesses;
(b) develops innovative financing mechanisms that address imperfec-

[[Page 956]]

tions in the credit market that make it difficult for small enterprises
to get credit; and, (c) strengthens the capacity of indigenous financial
institutions to engage in micro and small business lending through
targeted training programs.

The primary tool is the Loan Portfolio Guaranty (LPG) program which
provides loan guarantees. The MSED program also uses direct loans and
guarantees to provide capital for private voluntary organizations (PVOs)
and non-governmental organizations (NGOs) engaged in microenterprise
lending activities and to create sustainable relationships between these
PVOs/NGOs and formal financial institutions. Guarantees are combined
with training and technical assistance to improve the capacity of banks
to assess small and micro business credits and to assist borrowers to
present credible proposals to lending institutions.

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 72-0400-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 45 53 61
--------- --------- ----------
2159 Total loan guarantee levels..... 45 53 61
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... 4.40 3.76 3.29
--------- --------- ----------
2329 Weighted average subsidy rate... 4.40 3.76 3.29
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority.......... 2 2 2
--------- --------- ----------
2339 Total subsidy budget authority.. 2 2 2
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 1 1 2
--------- --------- ----------
2349 Total subsidy outlays........... 1 1 2
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 2 1 1
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-0400-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
41.0 Direct obligations: Grants,
subsidies, and contributions.... 3 1
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total obligations............... 1 4 2
---------------------------------------------------------------------------

Microenterprise and Small Enterprise Development Credit Direct Loan
Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 1
--------- --------- ----------
10.00 Total obligations............... 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 1
23.95 New obligations................... -1
----------------------------------------------------------------------------

New financing authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 1
1
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 1
73.10 New obligations................... 1
73.20 Total financing disbursements
(gross)......................... -1 -1
87.00 Total financing disbursements
(gross)......................... 1 1
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... 1
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-4342-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation.................
--------- --------- ----------
1150 Total direct loan obligations...
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2 2 2
1231 Disbursements: Direct loan
disbursements................... 1
1251 Repayments: Repayments and
prepayments..................... -1
--------- --------- ----------
1290 Outstanding, end of year........ 2 2 2
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated under the Agency for International
Development (USAID) Microenterprise and Small Enterprise Development
Credit Direct Loan program in 1992 and beyond (including modifications
of direct loans that resulted from obligations in any year). The amounts
in this account are a means of financing and are not included in the
budget totals.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 72-4342-0-3-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 2 2 2 2
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 2 2 2 2
------------ -------------- ------------ -------------
1999 Total assets.................... 2 2 2 2
LIABILITIES:
2201 Non-Federal liabilities: Accounts
payable......................... 2 2 2 2
------------ -------------- ------------ -------------
2999 Total liabilities............... 2 2 2 2
-----------------------------------------------------------------------------------------------

Microenterprise and Small Enterprise Development Guaranteed Loan
Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default claims.................... 1 1
--------- --------- ----------
10.00 Total obligations............... 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1 2 4
22.00 New financing authority (gross)... 1 2 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2 4 7
23.95 New obligations................... -1 -1
24.40 Unobligated balance available, end
of year: Uninvested............. 2 4 7
----------------------------------------------------------------------------

[[Page 957]]

New financing authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 1 2 3
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 New obligations................... 1 1
73.20 Total financing disbursements
(gross)......................... -1 -1
87.00 Total financing disbursements
(gross)......................... 1 1
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -1 -2
88.40 Non-Federal sources........... -1 -1 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1 -2 -3
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -1 -2
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-4343-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 96 69 46
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 96 69 46
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 26 32 63
2231 Disbursements of new guaranteed
loans........................... 6 33 36
2251 Repayments and prepayments........ -1 -20
2261 Adjustments: Terminations for
default that result in loans
receivable...................... -1 -1
--------- --------- ----------
2290 Outstanding, end of year........ 32 63 78
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 16 32 39
----------------------------------------------------------------------------

Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year...... 1
2331 Disbursements for guaranteed
loan claims................... 1 1
2351 Repayments of loans receivable..
2361 Write-offs of loans receivable..
--------- --------- ----------
2390 Outstanding, end of year...... 1 2
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from loan guarantees under the Agency for International
Development (USAID) Microenterprise and Small Enterprise Development
Guarantee program committed in 1992 and beyond (including modifications
of loan guarantees that resulted from commitments in any year). The
amounts in this account are a means of financing and are not included in
the budget totals.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 72-4343-0-3-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 2 2 3 5
Investments in US securities:
1106 Receivables, net..............
------------ -------------- ------------ -------------
1999 Total assets.................... 2 2 3 5
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 1 1 2 4
------------ -------------- ------------ -------------
2999 Total liabilities............... 1 1 2 4
NET POSITION:
3100 Appropriated capital.............. 1 1 1 1
------------ -------------- ------------ -------------
3999 Total net position.............. 1 1 1 1
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2 2 3 5
-----------------------------------------------------------------------------------------------

Private Sector Revolving Fund Liquidating Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 4 4
22.40 Capital transfer to general fund.. -4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 4
24.40 Unobligated balance available, end
of year: Uninvested............. 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 1
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -1
90.00 Outlays........................... -1
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-4341-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 16 8
2264 Adjustments: Other adjustments,
net............................. -8 -8
--------- --------- ----------
2290 Outstanding, end of year........ 8
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 4
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records all cash flows to and from the Government resulting from direct
loans obligated and loan guarantees committed under the Private Sector
Loan Fund prior to 1992. This account is shown on a cash basis. All new
activity in this program in 1992 and beyond is recorded in corresponding
program and financing accounts.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 72-4341-0-3-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 3
------------ -------------- ------------ -------------
1599 Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:
Net present value of assets
related to defaulted
guaranteed loans.............. 2 1
------------ -------------- ------------ -------------
1999 Total assets.................... 3
LIABILITIES:
2101 Federal liabilities: Accounts
payable.........................
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 1 1
------------ -------------- ------------ -------------
2999 Total liabilities............... 1 1
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1 1
-----------------------------------------------------------------------------------------------

[[Page 958]]

Development Credit Authority Program Account

For the cost of direct loans and loan guarantees, up
to $15,000,000, to be derived by transfer from funds
appropriated by this Act to carry out Part I of the Foreign
Assistance Act of 1961, as amended, and funds appropriated
by this Act under the heading, ``Assistance for Eastern
Europe and the Baltic States,'' to remain available until
expended, as authorized by section 635 of the Foreign
Assistance Act of 1961: 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 for administrative expenses to carry
out the direct and guaranteed loan programs, up to
$2,000,000 of this amount may be transferred to and merged
with the appropriation for ``Operating Expenses of the
Agency for International Development'': Provided further,
That the provisions of section 107A(d) (relating to general
provisions applicable to the Development Credit Authority)
of the Foreign Assistance Act of 1961, as contained in
section 306 of H.R. 1486 as reported by the House Committee
on International Relations on May 9, 1997, shall be
applicable to direct loans and loan guarantees provided
under this heading.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Guaranteed loan subsidy........... 3 18
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 3 18
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 5
22.00 New budget authority (gross)...... 8 15
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 8 20
23.95 New obligations................... -3 -18
24.40 Unobligated balance available, end
of year: Uninvested............. 5 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
42.00 Transferred from other accounts... 8 15
--------- --------- ----------
43.00 Appropriation (total)........... 8 15
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 8 15
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 3
73.10 New obligations................... 3 18
73.20 Total outlays (gross)............. -6
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 3 15
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 4
86.93 Outlays from current balances..... 2
--------- --------- ----------
87.00 Total outlays (gross)........... 6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 8 15
90.00 Outlays........................... 6
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1264-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 36 155
--------- --------- ----------
2159 Total loan guarantee levels..... 36 155
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... 8.44 8.39
--------- --------- ----------
2329 Weighted average subsidy rate... 8.44 8.39
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority.......... 3 13
--------- --------- ----------
2339 Total subsidy budget authority.. 3 13
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 6
--------- --------- ----------
2349 Total subsidy outlays........... 6
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority..................
3580 Outlays from balances.............
3590 Outlays from new authority........
---------------------------------------------------------------------------

The Development Credit Authority (DCA) will permit USAID to utilize
direct loans and loan guarantees that have market-based rates and other
market-based terms and conditions to achieve sustainable development
objectives where these objectives can be achieved more effectively
through the use of credit mechanisms, as opposed to through grants or
other financing mechanisms. The DCA will only be used in cases where
credit risks can be accurately assessed, where the specific sovereign or
non-sovereign developing country obligor can responsibly undertake the
credit servicing obligation, and where the use of USAID credit
mechanisms will assist in the development of private sector mechanisms
that can sustain the development impact. Therefore, while DCA will offer
USAID an additional financing mechanism, it will not alter the Agency's
programmatic priorities. The Agency will continue to provide the
majority of its assistance on a grant basis and will utilize the DCA to
finance sovereign and non-sovereign development projects that are both
developmentally sound and creditworthy.

The DCA is requested as a permitted transfer from funds appropriated
to carry out Part I of the Foreign Assistance Act so that the actual
amount of funds transferred for the subsidy cost of DCA credits can be
commensurate with USAID's credit management capabilities. USAID has
undertaken an ambitious Credit Management Improvement Action Plan and is
implementing this plan with the cooperation of the Office of Management
and Budget. The Agency is currently putting a number of far-reaching
credit management reforms into effect and expects to have capabilities
in place by the end of 1998 that will allow the transfer of the entire
$15 million requested for the DCA.

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, the subsidy costs associated with the direct
loans obligated and loan guarantees committed in 1992 and beyond,
(including modifications of direct loans or loan guarantees that
resulted from obligations or commitments in any year) as well as for the
administrative expenses of this program. The subsidy amounts are
estimated on a net present value basis.

Development Credit Authority Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 7
24.40 Unobligated balance available, end
of year: Uninvested............. 7
----------------------------------------------------------------------------

New financing authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 7
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources: Subsidy
payments from program
account..................... -6
88.25 Interest on uninvested funds..
88.40 Non-Federal sources: Fees..... -1
--------- --------- ----------

[[Page 959]]

88.90 Total, offsetting
collections (cash)........ -7
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -7
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-4266-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 36 214
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 36 214
2199 Guaranteed amount of guaranteed
loan commitments................
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........
2231 Disbursements of new guaranteed
loans........................... 94
2251 Repayments and prepayments........
2261 Adjustments: Terminations for
default that result in loans
receivable......................
--------- --------- ----------
2290 Outstanding, end of year........ 94
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 47
----------------------------------------------------------------------------

Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year......
2331 Disbursements for guaranteed
loan claims...................
2351 Repayments of loans receivable..
2361 Write-offs of loans receivable..
--------- --------- ----------
2390 Outstanding, end of year......
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 72-4266-0-3-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 7
Investments in US securities:
1106 Receivables, net.............. 3 18
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:

1501 Defaulted guaranteed loans
receivable, gross.............
1502 Interest receivable.............
1504 Foreclosed property.............
1505 Allowance for subsidy cost (-)..
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............
------------ -------------- ------------ -------------
1999 Total assets.................... 3 25
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 7
------------ -------------- ------------ -------------
2999 Total liabilities............... 7
NET POSITION:
3100 Appropriated capital.............. 3 18
------------ -------------- ------------ -------------
3999 Total net position.............. 3 18
------------ -------------- ------------ -------------
4999 Total liabilities and net position 3 25
-----------------------------------------------------------------------------------------------

Economic Assistance Loans--Liquidating Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 128
22.00 New budget authority (gross)...... 921 944 890
22.40 Capital transfer to general fund.. -793 -1,072 -890
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 128
24.40 Unobligated balance available, end
of year: Uninvested............. 128
----------------------------------------------------------------------------

New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 921 944 890
921 944 890
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 10
73.20 Total outlays (gross)............. -10
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 10
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Non-Federal sources-
Principal................. -593 -671 -637
88.40 Non-Federal sources-Interest -328 -273 -253
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -921 -944 -890
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -911 -944 -890
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-4103-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 12,649 12,164 11,493
1231 Disbursements: Direct loan
disbursements................... 10
1251 Repayments: Repayments and
prepayments..................... -593 -671 -637
1261 Adjustments: Capitalized interest. 46
1264 Write-offs for default: Other
adjustments, net................ 52
--------- --------- ----------
1290 Outstanding, end of year........ 12,164 11,493 10,856
---------------------------------------------------------------------------

The Economic Assistance Loans liquidating account consolidates
liquidating credit activity from three previous accounts: Economic
Support Fund, Functional Development Assistance Program, and the
Development Loans Revolving Fund. This was done to simplify
presentation. As required by the Federal Credit Reform Act of 1990, this
account records all cash flows to and from the Government resulting from
direct loans prior to 1992. This account is shown on a cash basis.

Trust Funds

Foreign Service National Separation Liability Trust Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-8342-0-7-602 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
12.1)........................... 3 2 2
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 2 2 2
23.95 New obligations................... -3 -2 -2
----------------------------------------------------------------------------

New budget authority (gross), detail:
60.27 Appropriation (trust fund,
indefinite)..................... 3 2 2
----------------------------------------------------------------------------

[[Page 960]]

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 6 8 9
73.10 New obligations................... 3 2 2
73.20 Total outlays (gross)............. -1 -1 -1
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 8 9 10
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 1 1 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2 2 2
90.00 Outlays........................... 1 1 1
---------------------------------------------------------------------------

This Fund is maintained to pay separation costs for Foreign Service
National employees of the U.S. Agency for International Development in
those countries in which such pay is legally required. The Fund, as
authorized by Public Law 102-138, is maintained by annual Government
contributions which are appropriated in several Agency accounts.

Miscellaneous Trust Funds, AID

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-9971-0-7-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............
Receipts:
02.01 Gifts and donations............... 51
Appropriation:
05.01 Miscellaneous trust funds......... -51
07.99 Total balance, end of year........
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total obligations (object class
41.0)........................... 52 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 2 1
22.00 New budget authority (gross)...... 51
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 53 1
23.95 New obligations................... -52 -1
24.40 Unobligated balance available, end
of year: Uninvested............. 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
60.27 Appropriation (trust fund,
indefinite)..................... 51
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 1 1
73.10 New obligations................... 52 1
73.20 Total outlays (gross)............. -52 -1
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 51
86.98 Outlays from permanent balances... 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 52 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 51
90.00 Outlays........................... 52 1
---------------------------------------------------------------------------

The Miscellaneous Trust Funds account includes gifts and donations
that AID receives from other governments, non-governmental
organizations, or private citizens. AID has authority to spend these
gifts and donations for development purposes under Section 635(d) of the
Foreign Assistance Act. In 1997, this account received $50 million from
Israel that was used to finance part of the Mideast Peace and Stability
Fund.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 72-9971-0-7-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 3 3 3 3
------------ -------------- ------------ -------------
1999 Total assets.................... 3 3 3 3
LIABILITIES:
2202 Non-Federal liabilities: Interest
payable......................... 1 1 1
------------ -------------- ------------ -------------
2999 Total liabilities............... 1 1 1
NET POSITION:
3300 Cumulative results of operations.. 3 3 3 3
------------ -------------- ------------ -------------
3999 Total net position.............. 3 3 3 3
------------ -------------- ------------ -------------
4999 Total liabilities and net position 4 3 4 4
-----------------------------------------------------------------------------------------------

OVERSEAS PRIVATE INVESTMENT CORPORATION

Federal Funds

Public enterprise funds:

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] $34,000,000: 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.
(Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1998.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 71-4184-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 2,192 2,381 2,556
--------- --------- ----------
03.00 Offsetting collections............ 189 175 176
04.00 Total: Balances and collections... 2,381 2,556 2,732
07.99 Total balance, end of year........ 2,381 2,556 2,732
---------------------------------------------------------------------------

These balances are reserves held for potential claims and are not
expected to be obligated.

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Noncredit administrative expenses. 13 13 14
09.02 Insurance claim payments/
provisions...................... 32 21 30
09.03 Credit administrative expenses.... 19 19 20
--------- --------- ----------
10.00 Total obligations............... 64 53 64
----------------------------------------------------------------------------

[[Page 961]]

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 20 21 22
22.00 New budget authority (gross)...... 65 53 64
22.10 Resources available from
recoveries of prior year
obligations..................... 1 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 85 75 87
23.95 New obligations................... -64 -53 -64
24.40 Unobligated balance available, end
of year: Uninvested............. 21 22 23
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

41.00 Transferred to other accounts... -19 -79 -70
Permanent:

Spending authority from
offsetting collections:
68.00 Offsetting collections (cash). 270 309 310
68.10 Change in orders on hand from
Federal sources............. 3 -2
68.45 Portion not expected to be
obligated................... -189 -175 -176
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)................... 84 132 134
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 65 53 64
----------------------------------------------------------------------------

Change in unpaid obligations:
Unpaid obligations, start of year:

72.40 Obligated balance: Uninvested... 38 65 76
72.95 Orders on hand from Federal
sources....................... 44 47 45
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 82 112 121
73.10 New obligations................... 64 53 64
73.20 Total outlays (gross)............. -34 -43 -56
73.45 Adjustments in unexpired accounts. -1 -1
Unpaid obligations, end of year:

74.40 Obligated balance: Uninvested... 65 76 83
74.95 Orders on hand from Federal
sources....................... 47 45 45
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 112 121 128
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 29 34 42
86.98 Outlays from permanent balances... 5 9 14
--------- --------- ----------
87.00 Total outlays (gross)........... 34 43 56
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -16 -38 -20
88.20 Interest on U.S. securities... -167 -192 -203
88.40 Non-Federal sources........... -87 -79 -87
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -270 -309 -310
88.95 Change in orders on hand from
Federal sources................. -3 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -208 -254 -246
90.00 Outlays........................... -236 -266 -254
---------------------------------------------------------------------------

The Overseas Private Investment Corporation encourages the
participation of United States private sector capital and skills in the
economic and social development of developing countries and emerging
market economies. Its primary noncredit program is political risk
insurance against losses due to expropriation, inconvertibility, and
damage due to political violence.

Status of Funds (in millions of dollars)

0101 Par value....................... 2,252 2,470 2,654
0102 Unrealized discounts............ -22 -24 -20
--------- --------- ----------
0199 Total balance, start of year.... 2,250 2,467 2,656
Cash income during the year:
Offsetting collections:

0280 Offsetting collections.......... 270 309 310
Cash outgo during year:
0500 Overseas private investment
corporation noncredit account... -34 -43 -56
0645 Balance transferred, net.......... -19 -79 -70
Unexpended balance, end of year:
0700 Treasury balance.................. 21 22 23
U.S. Securities:

0701 Par value....................... 2,470 2,654 2,837
0702 Unrealized discounts............ -24 -20 -20
--------- --------- ----------
0799 Total balance, end of year...... 2,467 2,656 2,840
---------------------------------------------------------------------------
INSURANCE PROGRAM ACTIVITY
[In millions 1996 actual 1997 actual 1998 est. 1999 est.
Aggregate insurance outstanding, start of year.. 21,297 31,395 26,579 28,198
Aggregate insurance issued during year.......... 16,584 3,732 8,000 9,000
Aggregate insurance reductions and cancellations -6,486 -8,548 6,382 -6,770
------------------------------------------------
Aggregate insurance outstanding, end of year.... 31,395 26,579 28,197 30,428
Net growth/(decline) of portfolio............... 10,098 -4,816 1,618 2,230
Net growth rate of insurance portfolio (in
percent).................................... 47.41 -15.34 6.09 7.91
------------------------------------------------
STATUS OF INSURANCE AUTHORITY
[In millions 1996 actual 1997 actual 1998 est. 1999 est.
Statutory authority limitation.................. 13,500 \1\ 23,000 \1\ 29,000 \1\ 29,000
Maximum contingent liability, end of year....... 13,386 12,137 13,986 15,092
Estimated potential exposure to claims, end of
year........................................ 6,413 7,172 8,177 8,824
================================================
\1\ This is a combined insurance and finance limitation created under
OPIC's FY97 appropriation. OPIC will monitor issuance and runoff to stay
within the limitation.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 71-4184-0-3-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 36 20 21 22
Investments in US securities:
1102 Treasury securities, par...... 2,396 2,649 2,720 2,800
1106 Receivables, net.............. 44 47 45 45
1206 Non-Federal assets: Receivables,
net............................. 9 11 15 15
1803 Other Federal assets: Property,
plant and equipment, net........ 12 14 15 15
------------ -------------- ------------ -------------
1999 Total assets.................... 2,497 2,741 2,816 2,897
LIABILITIES:
2101 Federal liabilities: Accounts
payable.........................
Non-Federal liabilities:

2201 Accounts payable................ 56 5 5 5
2207 Other........................... 108 188 200 200
------------ -------------- ------------ -------------
2999 Total liabilities............... 164 193 205 205
NET POSITION:
3300 Cumulative results of operations.. 2,333 2,548 2,611 2,692
------------ -------------- ------------ -------------
3999 Total net position.............. 2,333 2,548 2,611 2,692
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,497 2,741 2,816 2,897
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 71-4184-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 5 6 7
12.1 Civilian personnel benefits....... 2 2 2
21.0 Travel and transportation of
persons......................... 1 1 1
23.2 Rental payments to others......... 2 2 2
25.2 Other services.................... 3 2 2
25.3 Purchases of goods and services
from Government accounts........ 19 19 20
42.0 Insurance claims and indemnities.. 32 21 30
--------- --------- ----------
99.9 Total obligations............... 64 53 64
---------------------------------------------------------------------------

Personnel Summary

[[Page 962]]

Credit accounts:

Overseas Private Investment Corporation Program Account

For the cost of direct and guaranteed loans, [$60,000,000]
$50,000,000, as authorized by section 234 of the Foreign Assistance Act
of 1961, to be derived by transfer from the Overseas Private Investment
Corporation Noncredit Account: Provided, That such costs, including the
cost of modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974: Provided further, That such sums shall
be available for direct loan obligations and loan guaranty commitments
incurred or made during fiscal years [1998 and 1999] 1999 and 2000:
Provided further, That such sums shall remain available through fiscal
year [2006] 2007 for the disbursement of direct and guaranteed loans
obligated in fiscal year [1998] 1999, and through fiscal year [2007]
2008 for the disbursement of direct and guaranteed loans obligated in
fiscal year [1999] 2000: Provided further, That in addition, such sums
as may be necessary for administrative expenses to carry out the credit
program may be derived from amounts available for administrative
expenses to carry out the credit and insurance programs in the Overseas
Private Investment Corporation Noncredit Account and merged with said
account. (Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 1 4 4
00.02 Guaranteed loan subsidy........... 12 68 46
00.09 Credit administrative expenses.... 19 19 20
--------- --------- ----------
10.00 Total obligations............... 32 91 70
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 37 87 63
22.00 New budget authority (gross)...... 96 79 70
22.10 Resources available from
recoveries of prior year
obligations..................... 41 3
22.21 Unobligated balance transferred to
other accounts.................. -10
22.30 Unobligated balance expiring...... -45 -15
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 119 154 133
23.95 New obligations................... -32 -91 -70
24.40 Unobligated balance available, end
of year: Uninvested............. 87 63 63
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 72
42.00 Transferred from other accounts... 24 79 70
--------- --------- ----------
43.00 Appropriation (total)........... 96 79 70
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 96 79 70
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 176 127 161
73.10 New obligations................... 32 91 70
73.20 Total outlays (gross)............. -39 -54 -57
73.45 Adjustments in unexpired accounts. -41 -3
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 127 161 174
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 21 22
86.93 Outlays from current balances..... 39 33 35
--------- --------- ----------
87.00 Total outlays (gross)........... 39 54 57
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 96 79 70
90.00 Outlays........................... 39 54 57
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 71-0100-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct loan levels................ 133 133 200
--------- --------- ----------
1159 Total direct loan levels........ 133 133 200
Direct loan subsidy (in percent):
1320 Subsidy rate...................... 3.00 3.00 2.00
--------- --------- ----------
1329 Weighted average subsidy rate... 3.00 3.00 2.00
Direct loan subsidy budget authority:
1330 Subsidy budget authority.......... 4 4 4
--------- --------- ----------
1339 Total subsidy budget authority.. 4 4 4
Direct loan subsidy outlays:
1340 Subsidy outlays................... 1 2 4
--------- --------- ----------
1349 Total subsidy outlays........... 1 2 4
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 2,433 1,800 2,600
--------- --------- ----------
2159 Total loan guarantee levels..... 2,433 1,800 2,600
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... 3.00 3.00 2.00
--------- --------- ----------
2329 Weighted average subsidy rate... 3.00 3.00 2.00
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority.......... 73 56 46
--------- --------- ----------
2339 Total subsidy budget authority.. 73 56 46
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 22 33 34
--------- --------- ----------
2349 Total subsidy outlays........... 22 33 34
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 19 19 20
3590 Outlays from new authority........ 16 19 19
---------------------------------------------------------------------------

The Overseas Private Investment Corporation encourages the
participation of United States private sector capital and skills in the
economic and social development of developing countries and emerging
market economies. Its primary credit program is investment financing
through loans and guaranteed loans.

As required by the Federal Credit Reform Act of 1990, the Program
Account records the subsidy costs associated with the direct loans
obligated and loan guarantees committed in 1992 and beyond (including
modifications of direct loans or loan guarantees that resulted from
obligations or commitments in any year), as well as administrative
expenses of this program. The subsidy amounts are estimated on a present
value basis; the administrative expenses are estimated on a cash basis.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 71-0100-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 7 7 7
12.1 Civilian personnel benefits....... 2 2 2
21.0 Travel and transportation of
persons......................... 1 1
23.2 Rental payments to others......... 3 3 3
25.2 Other services (contracts)........ 6 4 5
26.0 Supplies and materials............ 1
41.0 Grants, subsidies, and
contributions................... 13 72 50
--------- --------- ----------
99.0 Subtotal, direct obligations.. 32 89 68
99.5 Below reporting threshold......... 2 2
--------- --------- ----------
99.9 Total obligations............... 32 91 70
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 71-0100-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 109 120 132
---------------------------------------------------------------------------

[[Page 963]]

Overseas Private Investment Corporation Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 17 100 133
00.02 Direct program.................... 5 9 9
--------- --------- ----------
10.00 Total obligations............... 22 109 142
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 6 14 23
22.00 New financing authority (gross)... 30 118 148
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 36 132 171
23.95 New obligations................... -22 -109 -142
24.40 Unobligated balance available, end
of year: Uninvested............. 14 23 29
----------------------------------------------------------------------------

New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 17 100 129
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 13 18 19
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 30 118 148
----------------------------------------------------------------------------

Change in unpaid obligations:
Unpaid obligations, start of year:

72.40 Obligated balance: Uninvested... 65 64 123
72.95 Receivables from program account 4 4 4
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 69 68 127
73.10 New obligations................... 22 109 142
73.20 Total financing disbursements
(gross)......................... -25 -50 -70
Unpaid obligations, end of year:

74.40 Obligated balance: Uninvested... 64 123 195
74.95 Receivables from program account 4 4 4
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 68 127 199
87.00 Total financing disbursements
(gross)......................... 25 50 70
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -2 -3 -3
Non-Federal sources:
88.40 Repayments of Principal..... -4 -5 -6
88.40 Interest received on loans.. -7 -8 -8
88.40 Fees........................ -2 -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -13 -18 -19
88.95 Change in receivables from program
accounts........................
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 17 100 129
90.00 Financing disbursements........... 11 32 51
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 71-4074-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 133 133 133
--------- --------- ----------
1150 Total direct loan obligations... 133 133 133
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 72 83 119
1231 Disbursements: Direct loan
disbursements................... 15 41 61
1251 Repayments: Repayments and
prepayments..................... -4 -5 -6
--------- --------- ----------
1290 Outstanding, end of year........ 83 119 174
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 71-4074-0-3-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 11 14 10 10
Investments in US securities:
1106 Receivables, net.............. 4 4 8 8
1206 Non-Federal assets: Receivables,
net............................. 2 2
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 72 83 119 174
1402 Interest receivable............. 1 1
1404 Foreclosed property.............
1405 Allowance for subsidy cost (-).. -10 -13 -20 -20
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 63 71 99 154
------------ -------------- ------------ -------------
1999 Total assets.................... 78 89 119 174
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 4 4 4
2102 Interest payable................ 4
2103 Debt............................ 69 84 110 165
2105 Other Federal liabilities....... 3 4 4
2207 Non-Federal liabilities: Other.... 1 2 1 1
------------ -------------- ------------ -------------
2999 Total liabilities............... 78 89 119 174
NET POSITION:
3300 Cumulative results of operations..
------------ -------------- ------------ -------------
3999 Total net position..............
------------ -------------- ------------ -------------
4999 Total liabilities and net position 78 89 119 174
-----------------------------------------------------------------------------------------------

Overseas Private Investment Corporation Guaranteed Loan Financing
Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default claims.................... 7 20 50
00.02 Capitalized costs................. 2 2 3
--------- --------- ----------
10.00 Total obligations............... 9 22 53
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 106 181 268
22.00 New financing authority (gross)... 83 109 123
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 189 290 391
23.95 New obligations................... -9 -22 -53
24.40 Unobligated balance available, end
of year: Uninvested............. 181 268 338
----------------------------------------------------------------------------

New financing authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 83 109 123
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 4 4 4
73.10 New obligations................... 9 22 53
73.20 Total financing disbursements
(gross)......................... -10 -22 -53
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 4 4 4
87.00 Total financing disbursements
(gross)......................... 10 22 53
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources: Payments from
program account............. -23 -33 -35
88.25 Interest on uninvested funds.. -9 -11 -13
Non-Federal sources:
88.40 Claim recoveries............ -4 -5 -5

[[Page 964]]

88.40 Fees........................ -47 -60 -70
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -83 -109 -123
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -75 -87 -70
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 71-4075-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 2,143 1,800 2,000
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 2,143 1,800 2,000
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 1,335 1,981 2,681
2231 Disbursements of new guaranteed
loans........................... 857 1,100 1,300
2251 Repayments and prepayments........ -204 -400 -500
Adjustments:

2262 Terminations for default that
result in acquisition of
property...................... -5
2263 Terminations for default that
result in claim payments...... -2
--------- --------- ----------
2290 Outstanding, end of year........ 1,981 2,681 3,481
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 1,981 2,681 3,481
----------------------------------------------------------------------------

Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year...... 15 18 27
2331 Disbursements for guaranteed
loan claims................... 7 20 50
2351 Repayments of loans receivable.. -4 -11 -15
--------- --------- ----------
2390 Outstanding, end of year...... 18 27 62
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from loan guarantees committed in 1992 and beyond (including
modifications of loan guarantees that resulted from commitments in any
year). The amounts in this account are a means of financing and are not
included in the budget totals.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 71-4075-0-3-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 112 188 268 338
1206 Non-Federal assets: Receivables,
net............................. 6 9 17 17
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:

1501 Defaulted guaranteed loans
receivable, gross............. 15 16 27 62
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............ 15 16 27 62
------------ -------------- ------------ -------------
1999 Total assets.................... 133 213 312 417
LIABILITIES:
2103 Federal liabilities: Debt......... 4 4
Non-Federal liabilities:

2204 Liabilities for loan guarantees. 97 170 275 380
2207 Other non-fed................... 26 25 25 25
------------ -------------- ------------ -------------
2999 Total liabilities............... 127 199 300 405
NET POSITION:
3300 Cumulative results of operations.. 6 14 12 12
------------ -------------- ------------ -------------
3999 Total net position.............. 6 14 12 12
------------ -------------- ------------ -------------
4999 Total liabilities and net position 133 213 312 417
-----------------------------------------------------------------------------------------------

Overseas Private Investment Corporation Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 6 25 15
--------- --------- ----------
10.00 Total obligations (object class
43.0)......................... 6 25 15
----------------------------------------------------------------------------

Budgetary resources available for obligation:
Unobligated balance available, start of year:

21.40 Uninvested...................... 100 81
21.41 U.S. Securities: Par value...... 35 35
--------- --------- ----------
21.99 Total unobligated balance,
start of year............... 135 116
22.00 New budget authority (gross)...... 31 25 21
22.40 Capital transfer to general fund.. -43 -116 -6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 123 25 15
23.95 New obligations................... -6 -25 -15
Unobligated balance available, end of year:

24.40 Uninvested...................... 81
24.41 U.S. Securities: Par value...... 35
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 116
----------------------------------------------------------------------------

New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 31 25 21
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 6 6 5
73.10 New obligations................... 6 25 15
73.20 Total outlays (gross)............. -6 -25 -15
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 6 5 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 25 15
86.98 Outlays from permanent balances... 6
--------- --------- ----------
87.00 Total outlays (gross)........... 6 25 15
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.20 Interest on U.S. securities... -3 -3 -3
88.40 Non-Federal sources........... -28 -22 -18
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -31 -25 -21
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -23 -6
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 71-4030-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 53 37 24
1231 Disbursements: Direct loan
disbursements................... 3
1251 Repayments: Repayments and
prepayments..................... -16 -10 -6
1264 Write-offs for default: Other
adjustments, net................ -3 -3 -2
--------- --------- ----------
1290 Outstanding, end of year........ 37 24 16
---------------------------------------------------------------------------

[[Page 965]]

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 71-4030-0-3-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 216 141 66
2231 Disbursements of new guaranteed
loans........................... 20
2251 Repayments and prepayments........ -95 -75 -56
2264 Adjustments: Other adjustments,
net.............................
--------- --------- ----------
2290 Outstanding, end of year........ 141 66 10
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 141 66 10
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, all cash flows to and from the Government
resulting from direct loans obligated and loan guarantees committed
prior to 1992. This account is shown on a cash basis. All new activity
in this program in 1992 and beyond (including modifications of direct
loans or loan guarantees that resulted from obligations or commitments
in any year) is recorded in corresponding program, financing, and
noncredit accounts.

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 71-4030-0-3-151 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 12 12 12 12
0102 Expense........................... 9 -2 -2 -2
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ 21 10 10 10
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury..... 106 86 59 59
Investments in US securities:
1102 Treasury securities, par...... 35 35 35 35
1106 Receivables, net.............. 1 1 1 1
1206 Non-Federal assets: Receivables,
net............................. 1 1 1
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 53 37 24 16
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -18 -14 -22 -14
1604 Direct loans and interest
receivable, net............... 35 23 2 2
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 35 23 2 2
1706 Foreclosed property............. 3 2 3 3
------------ -------------- ------------ -------------
1999 Total assets.................... 181 147 101 101
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 43 40 40
2207 Non-Federal liabilities: Other.... 15 11 10 10
------------ -------------- ------------ -------------
2999 Total liabilities............... 58 11 50 50
NET POSITION:
3200 Invested capital.................. 50 50 50 50
3300 Cumulative results of operations.. 73 86 1 1
------------ -------------- ------------ -------------
3999 Total net position.............. 123 136 51 51
------------ -------------- ------------ -------------
4999 Total liabilities and net position 181 147 101 101
-----------------------------------------------------------------------------------------------

TRADE AND DEVELOPMENT AGENCY

Federal Funds

General and special funds:

Trade and Development Agency

For necessary expenses to carry out the provisions of section 661 of
the Foreign Assistance Act of 1961, [$41,500,000] $50,000,000, to remain
available until September 30, [1999] 2000: Provided, That the Trade and
Development Agency may receive reimbursements from corporations and
other entities for the costs of grants for feasibility studies and other
project planning services, to be deposited as an offsetting collection
to this account and to be available for obligation until September 30,
[1999] 2000, for necessary expenses under this paragraph: Provided
further, That such reimbursements shall not cover, or be allocated
against, direct or indirect administrative costs of the agency. (Foreign
Operations, Export Financing, and Related Programs Appropriation Act,
1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Feasibility studies, and other
activities...................... 45 50 44
00.02 Operating expenses................ 6 6 6
--------- --------- ----------
10.00 Total obligations............... 51 56 50
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 11 14
22.00 New budget authority (gross)...... 54 42 50
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 65 56 50
23.95 New obligations................... -51 -56 -50
24.40 Unobligated balance available, end
of year: Uninvested............. 14
----------------------------------------------------------------------------

New budget authority (gross), detail:
Appropriation:

40.00 Appropriation................... 34 42 50
40.00 Appropriation................... 6
42.00 Transferred from other accounts... 14
--------- --------- ----------
43.00 Appropriation (total)........... 54 42 50
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 54 42 50
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 78 80 76
73.10 New obligations................... 51 56 50
73.20 Total outlays (gross)............. -51 -60 -46
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 80 76 80
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 15 12 13
86.93 Outlays from current balances..... 36 48 34
--------- --------- ----------
87.00 Total outlays (gross)........... 51 60 46
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 54 42 50
90.00 Outlays........................... 51 60 46
---------------------------------------------------------------------------

Appropriated funds provide for the costs of the U.S. Trade and
Development Agency (TDA), which include: program costs of grants for
feasibility studies and other project planning activities; and, the cost
of managing the TDA programs such as salaries and expenses of direct
hire personnel, and obtaining the services of consultants. TDA finances
these activities for major projects in the developing world to foster
economic development and to encourage the use of U.S. technology, goods,
and services in project implementation.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1001-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 3 3 3
12.1 Civilian personnel benefits....... 1 1 1
25.1 Advisory and assistance services.. 1 1 1
41.0 Grants, subsidies, and
contributions................... 46 50 44
--------- --------- ----------
99.0 Subtotal, direct obligations.. 51 55 49
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total obligations............... 51 56 50
---------------------------------------------------------------------------

[[Page 966]]

Personnel Summary

PEACE CORPS

Federal Funds

General and special funds:

Peace Corps

For expenses necessary to carry out the provisions of the Peace
Corps Act (75 Stat. 612), [$222,000,000] $270,335,000, 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] ¹ funds
appropriated under this heading shall remain available until September
30, [1999] 2000. (Foreign Operations, Export Financing, and Related
Programs Appropriation Act, 1998.)
¹ The Administration proposes to delete this provision
and will work with Congress to address the issue of abortion funding.

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Millennium initiative........... 33
00.02 Africa region................... 54 54 55
00.03 Europe, Mediterranean & Asia
region........................ 36 37 39
00.04 Inter-America & Pacific region.. 39 39 39
00.05 Other volunteer support......... 92 102 105
--------- --------- ----------
00.91 Total direct program.......... 221 232 271
09.01 Reimbursable program.............. 7 8 8
--------- --------- ----------
10.00 Total obligations............... 228 240 279
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 8 7 2
22.00 New budget authority (gross)...... 227 235 279
22.22 Unobligated balance transferred
from other accounts............. 1
22.30 Unobligated balance expiring...... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 235 242 281
23.95 New obligations................... -228 -240 -279
24.40 Unobligated balance available, end
of year: Uninvested............. 7 2 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 208 222 270
42.00 Transferred from other accounts. 12 4
--------- --------- ----------
43.00 Appropriation (total)......... 220 226 270
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 7 9 9
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 227 235 279
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 68 61 55
73.10 New obligations................... 228 240 279
73.20 Total outlays (gross)............. -233 -246 -274
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 61 55 60
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 172 181 216
86.93 Outlays from current balances..... 54 56 49
86.97 Outlays from new permanent
authority....................... 7 9 9
--------- --------- ----------
87.00 Total outlays (gross)........... 233 246 274
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -7 -9 -9
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 220 226 270
90.00 Outlays........................... 226 237 265
---------------------------------------------------------------------------

Peace Corps' operating expenses will provide direct and indirect
support for an average of 6,000 Americans engaged in voluntary services
in 84 countries worldwide in 1998. The Volunteers help fill the trained
manpower needs of developing countries and encourage self-sustaining
development of skilled manpower. The Peace Corps promotes mutual
understanding between the peoples of the developing world and the United
States and focuses the attention of the American people on the benefits
of volunteerism. Peace Corps Volunteers work primarily in the areas of
agriculture, education, economic development, health, and environment.

Millennium Initiative.--This presidential initiative will support
the Peace Corps' efforts to place a total of 5,712 new trainees in the
field in 1999 and will put the Peace Corps on a path to a volunteer
corps of 10,000 in the new century. The World Wise Schools Program,
which connects Peace Corps volunteers with American teachers and
students to promote international understanding, will be expanded to
10,000 teachers. The Initiative also includes an increase of 100 in the
number of Crisis Corps volunteers, who provide assistance to the
international relief community during humanitarian crises and natural
disasters.

Africa Region.--The Africa Region will support 1,272 new trainees
and an average of 2,227 Volunteers during 1998. These Volunteers and
trainees will work in 28 sub-Saharan countries.

Europe, Mediterranean, and Asia Region.--In 1998 an average of 1,815
volunteers will work in 26 countries in Eastern and Central Europe, the
former Soviet Union, North Africa, and Asia. The region will support
1,140 new trainees.

Inter-America and Pacific Region.--An average of 1,947 volunteers
will work in 30 countries in the Caribbean, Central America, South
America, and the Pacific. This office will also fund 1,166 new trainees
in 1998.

Other Volunteer Support.--These activities fund a wide range of
volunteer- and program-related costs, including medical support for
Volunteers, recruitment and placement, technical resources, domestic
programs, policy and direction, and related administration and
oversight.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 45 46 52
11.3 Other than full-time permanent 2 2 2
11.5 Other personnel compensation.. 2 2 2
Special personal services
payments:
11.8 Special personal services
payments..................
11.8 Trainees and volunteers..... 20 20 23
--------- --------- ----------
11.9 Total personnel compensation 69 70 79
12.1 Civilian personnel benefits..... 41 43 47
13.0 Benefits for former personnel... 1 1
21.0 Travel and transportation of
persons....................... 25 27 34
22.0 Transportation of things........ 3 3 4
23.1 Rental payments to GSA.......... 6 6 6
23.2 Rental payments to others....... 7 7 9
23.3 Communications, utilities, and
miscellaneous charges......... 5 7 7
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 31 35 42
25.3 Purchases of goods and services
from Government accounts...... 5 8 6
25.4 Operation and maintenance of
facilities.................... 1 1 1

[[Page 967]]

25.6 Medical care.................... 11 8 13
25.7 Operation and maintenance of
equipment..................... 1 1 1
26.0 Supplies and materials.......... 9 8 10
31.0 Equipment....................... 5 6 9
--------- --------- ----------
99.0 Subtotal, direct obligations.. 220 232 270
99.0 Reimbursable obligations.......... 6 7 7
99.5 Below reporting threshold......... 2 1 2
--------- --------- ----------
99.9 Total obligations............... 228 240 279
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 11-0100-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 1,071 1,130 1,270
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 6 6 6
---------------------------------------------------------------------------

Peace Corps Miscellaneous Trust Funds

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-9972-0-7-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............
Receipts:
02.01 Miscellaneous trust funds, Peace
Corps........................... 1 1
Appropriation:
05.01 Peace Corps miscellaneous trust
fund............................ -1 -1
07.99 Total balance, end of year........
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total obligations (object class
26.0)........................... 1 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 2 1 1
22.00 New budget authority (gross)...... 1 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2 2 2
23.95 New obligations................... -1 -1 -1
24.40 Unobligated balance available, end
of year: Uninvested............. 1 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
60.27 Appropriation (trust fund,
indefinite)..................... 1 1
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 New obligations................... 1 1 1
73.20 Total outlays (gross)............. -1 -1 -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from permanent balances... 1 1 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1 1
90.00 Outlays........................... 1 1 1
---------------------------------------------------------------------------

Miscellaneous contributions received by gift, devise, bequest, or
from foreign governments are used for the furtherance of the program, as
authorized by 22 U.S.C. 2509(a)(3) (75 Stat. 612, as amended). Trust
funds also include a fund to pay separation costs for Foreign Service
National employees of the Peace Corps in those countries in which such
pay is legally authorized. The fund, as authorized by Public Law 102-
138, is maintained by annual Government contributions which are
appropriated in the Peace Corps salaries and expenses account.

Personnel Summary

----------------------------------------------------------------------------
Identification code 11-9972-0-7-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 3 4 4
---------------------------------------------------------------------------

INTER-AMERICAN FOUNDATION

Federal Funds

General and special funds:

Inter-American Foundation

For expenses necessary to carry out the functions of the Inter-
American Foundation in accordance with the provisions of section 401 of
the Foreign Assistance Act of 1969, and to make commitments without
regard to fiscal year limitations, as provided by 31 U.S.C. 9104(b)(3),
$22,000,000.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Development grants................ 15 19 19
00.02 Development research and
dissemination................... 1 1 1
00.03 In-country support................ 3 3 3
00.04 Program management and operations. 6 7 7
--------- --------- ----------
10.00 Total obligations............... 25 30 30
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 16 18 18
22.00 New budget authority (gross)...... 22 30 30
22.10 Resources available from
recoveries of prior year
obligations..................... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 42 48 48
23.95 New obligations................... -25 -30 -30
24.40 Unobligated balance available, end
of year: Uninvested............. 18 18 18
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 22
42.00 Transferred from other accounts. 20 22
--------- --------- ----------
43.00 Appropriation (total)......... 20 22 22
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 2 8 8
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 22 30 30
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 21 18 20
73.10 New obligations................... 25 30 30
73.20 Total outlays (gross)............. -22 -28 -29
73.45 Adjustments in unexpired accounts. -4
74.40 Unpaid obligations, end of year:
Obligated balance: Approriation. 18 20 20
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 9 11 11
86.93 Outlays from current balances..... 8 12 11
86.97 Outlays from new permanent
authority....................... 2 3 3
86.98 Outlays from permanent balances... 3 2 4
--------- --------- ----------
87.00 Total outlays (gross)........... 22 28 29
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -2 -8 -8
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 20 22 22
90.00 Outlays........................... 20 20 21
---------------------------------------------------------------------------

Established by the 1969 Foreign Assistance Act, the Inter-American
Foundation supports grassroots development initia-

[[Page 968]]

tives in Latin America and the Caribbean with a direct impact on the
lives and the capacity for self reliance of people at the lowest
economic levels. In addition to appropriations and private gifts, the
Foundation is funded by annual transfers from the Social Progress Trust
Fund administered by the Inter-American Development Bank. In 1999, the
IAF will continue its new strategic programming approach which
emphasizes: (1) building partnerships among grassroots organizations,
Non-Governmental Organizations, local governments, and private
enterprises to foster social and economic development at the local
level; and, (2) expanding access to private business sector resources
for grassroots development. The IAF will continue to refine its system
of measuring the results of its grants for the purposes of identifying
and disseminating best practices and lessons for the benefit of the
major development funders, new private sector contributors and
development practitioners. Using information derived from the results
system that is based on the grassroots development framework from a set
of learning practices focused on grants, the Foundation will
systematically incorporate lessons learned back into the Foundation's
strategic planning and grant decision-making processes. It will also
disseminate the results assessment system and development information to
partner organizations in the region, to other donors and enterprises
supporting development activities, and to grassroots practitioners.

Development Grants.--This activity includes the cost of all grants
made directly to grassroots membership and service organizations to
carry out development projects in Latin America and the Caribbean. In
1999, the Foundation plans to award approximately 100 grants and 20
grant supplements in 17 countries.

Development Research and Evaluation.--This activity funds grants and
fellowships for grassroots development research and for the evaluation
of the Foundation's projects.

In-country Support.--Resources associated with this activity are
used by local development professionals in Latin America and the
Caribbean to provide grantees with technical assistance and training
when necessary to conduct and assess the results of their projects.

Program Management and Operation.--This activity includes Foundation
expenses for salaries and benefits, travel, rent, service contracts, and
other support costs.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-3100-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 3 4 4
12.1 Civilian personnel benefits....... 1 1 1
23.2 Rental payments to others......... 1 1 1
25.1 Advisory and assistance services.. 3 4 4
41.0 Grants, subsidies, and
contributions................... 16 20 20
--------- --------- ----------
99.0 Subtotal, direct obligations.. 24 30 30
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total obligations............... 25 30 30
---------------------------------------------------------------------------

Personnel Summary

AFRICAN DEVELOPMENT FOUNDATION

Federal Funds

General and special funds:

African Development Foundation

To carry out Title V of the International Security and Development
Cooperation Act of 1980, Public Law 96-533, and to make commitments
without regard to fiscal year limitations (31 U.S.C. 9104(b)(3)),
$14,000,000: Provided, That funds made available to grantees may be
invested pending expenditure for project purposes when authorized by the
President of the Foundation: Provided further, That interest earned
shall be used only for the purposes for which the grant was made:
Provided further, That this authority applies to interest earned both
prior to and following enactment of this provision: Provided further,
That notwithstanding section 505(a)(2) of the African Development
Foundation Act, in exceptional circumstances the board of directors of
the Foundation may waive the $250,000 limitation contained in that
section with respect to a project: Provided further, That the Foundation
shall provide a report to the Committees on Appropriations after each
time such waiver authority is exercised.

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Advance sustainable development
and empowerment of the poor in
Africa........................ 6 14 10
00.02 Enhance US assistance and
relations with Africa......... 1 1
00.03 Expand use of participatory
development policies and
practices..................... 1 2 2
00.04 Internal agency objectives...... 1 1 1
09.00 Reimbursable program.............. 1 1
--------- --------- ----------
10.00 Total obligations............... 8 19 15
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 4
22.00 New budget authority (gross)...... 12 15 15
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 12 19 15
23.95 New obligations................... -8 -19 -15
24.40 Unobligated balance available, end
of year: Uninvested............. 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 14
42.00 Transferred from other accounts. 12 14
--------- --------- ----------
43.00 Appropriation (total)......... 12 14 14
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 12 15 15
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: start of year 17 15 21
73.10 New obligations................... 8 19 15
73.20 Total outlays (gross)............. -10 -13 -15
74.40 Unpaid obligations, end of year:
Obligated balance: end of year.. 15 21 21
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 6 6 6
86.93 Outlays from current balances..... 4 6 8
86.97 Outlays from new permanent
authority....................... 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 10 13 15
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 12 14 14
90.00 Outlays........................... 10 12 14
---------------------------------------------------------------------------

[[Page 969]]

The African Development Foundation (ADF), a public corporation, is a
unique agency of the U.S. Government that supports community-based,
self-help initiatives to alleviate poverty and to promote sustainable
development in Africa. Through its grant program, ADF has pioneered
participatory development in Africa. Foundation grants are made directly
to private grassroots African groups and are premised on self-help to
foster self-reliance through the promotion of African leadership and
ownership of the development process.

The Foundation has recently completed a 15-month comprehensive,
reengineering process in which ADF has: (a) developed new strategic
goals and objectives, at the corporate level and for all country
programs, to focus and concentrate financial resources for greater
impact; (b) completed an organizational restructuring to focus more
human resources on field operations; (c) streamlined all programming and
support systems to increase operational efficiency and effectiveness;
and (d) implemented a plan designed to increase the decision making,
program monitoring and evaluation capacity of field staff. In addition,
ADF has installed a new grants accounting system and procured computer
hardware and software to permit Internet access and connectivity with
field staff. Finally, the Foundation is pursuing strategic partnerships
with the private sector and other donors to leverage resources and to
develop new modes of assistance for Africa.

In 1999, ADF will provide assistance to fifteen countries in Africa,
but resources will be concentrated in eight: Benin, Ghana, Guinea, Mali,
Senegal, Tanzania, Uganda, and Zimbabwe. This budget request will fund
the Foundation's operating costs and more than 50 small grants to
African non-governmental organizations, community-based groups and
researchers, in pursuit of ADF's three strategic goals.

Program Components:

(1) Advance sustainable development and empowerment of the poor
in Africa.--ADF will promote micro and small enterprise development
which will generate employment and enhance income. ADF will also
seek to improve community-based natural resource management for
sustainable rural development. Increasing participation of African
grassroots enterprises and producer groups in trade and investment
relationships with the U.S. and within Africa is another primary
focus of ADF. Finally, ADF will work to strengthen civil society and
local governance and to encourage African governments to expand
grassroots participation in policy-making and resource allocation
processes. Examples of projects which will be funded are: micro-
finance capital; business development services, training and
technical assistance; soil and water reclamation; civil education;
and advocacy training.
(2) Enhance U.S. assistance and relations with Africa.--ADF will
share its experience and encourage expanded U.S. funding for
participatory grassroots development, improve program and policy
coordination on grassroots development among U.S. foreign assistance
and foreign policy agencies, and leverage public and private
resources through strategic partnerships.
(3) Expand use of participatory development policies and
practices.--ADF will intensify its efforts to develop, evaluate and
disseminate new interventions and methodologies for participatory
development, and encourage African governments to increase
utilization of participatory development ``best practices.''

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 2 2 2
41.0 Grants, subsidies, and
contributions................. 4 14 10
--------- --------- ----------
99.0 Subtotal, direct obligations.. 6 16 12
99.0 Reimbursable obligations.......... 1 1
99.5 Below reporting threshold......... 2 2 2
--------- --------- ----------
99.9 Total obligations............... 8 19 15
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 11-0700-0-1-151 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 27 32 32
---------------------------------------------------------------------------

INTERNATIONAL MONETARY PROGRAMS

Federal Funds

General and special funds:

United States Quota, International Monetary Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-0003-0-1-155 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.02 Direct program.................... 160
--------- --------- ----------
10.00 Total obligations (object class
33.0)......................... 160
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 15,598 14,054 14,054
22.10 Resources available from
recoveries of prior year
obligations..................... -13
22.30 Unobligated balance expiring...... -1,370
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14,215 14,054 14,054
23.95 New obligations................... -160
24.40 Unobligated balance available, end
of year: Uninvested............. 14,054 14,054 14,054
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 22,666 22,078 22,078
73.10 New obligations................... 160
73.20 Total outlays (gross)............. -761
73.45 Adjustments in unexpired accounts. 13
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 22,078 22,078 22,078
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from permanent balances... 761
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 761
---------------------------------------------------------------------------

Recent financial developments in Asia have required an urgent
response from the international community. The United States,
independently and through the multilateral mechanism of the
International Monetary Fund (IMF), has taken a strong lead in shaping
the international response to the threat of more widespread financial
instability. The IMF has acted quickly to provide financial support in
conjunction with strong policy direction to the affected countries in
the region, mitigating the spillover effects from their financial crises
on the global economy, and consequently on U.S. output and employment.
It is imperative that the United States continue to provide strong
leadership in the IMF and to support the IMF's efforts to bring about
fundamental economic and financial sector reforms in these countries
that establish the foundation for renewed growth. In consultation with
Congress, the Administration expects to request a supplemental
appropriation for 1998 for an increase in the U.S. quota of the IMF and
for U.S. participation in the New Arrangements to Borrow (NAB) so that
the IMF remains an effective promoter of international financial
stability, which is essential to continued U.S. economic growth.

[[Page 970]]

Quota Increase.--The International Monetary Fund, established in
1945, is a multilateral organization of 182 member nations. Its
functions include: promoting international monetary cooperation and
exchange rate stability; facilitating the development of the productive
resources of its members; and, consistent with these objectives,
providing financial assistance with adequate safeguards to allow members
to correct prolonged payments imbalances without resort to measures
harmful to the international monetary system. The IMF is a subscription-
based institution. Members' quota subscriptions are the primary source
of the IMF's funding for members seeking to redress the underlying
causes of severe and prolonged external payments problems. IMF quotas
have not been increased since 1992.

The IMF membership completed the Eleventh Review of Quotas in
September of 1997 and agreed on the need for a 45% overall increase in
quotas to maintain the IMF's relative influence in relation to the
growing international capital markets and its ability to respond
effectively to financial crises. Recent IMF programs to provide crisis
assistance in Asia have drawn heavily on the Fund's existing quota
resources, reducing them to relatively low levels. The United States
urgently needs to provide its share of the IMF's proposed $87 billion
increase in regular resources so that the IMF can continue to meet
members' anticipated demands while coping with additional exceptional
calls under current crisis conditions should they arise.

In consultation with Congress, the Administration expects to request
a supplemental appropriation for 1998 amounting to the U.S. dollar
equivalent of 10,622.5 million Special Drawing Rights, $14.5 billion,
for an increase in the U.S. quota for the IMF. In accordance with the
budgetary treatment recommended by the Presidential Commission on
Budgetary Concepts in 1968 and modified by the Congress in 1980, U.S.
transactions with the IMF under the quota subscription are monetary
exchanges which will not be scored as outlays and thus will not increase
the deficit. This is because the United States receives a liquid,
interest-bearing claim on the IMF, corresponding to any transfer under
the U.S. quota subscription to the IMF, and that claim would be backed
by the IMF's substantial reserves, including its holdings of gold. The
authority for the discretionary cap adjustment to accommodate the budget
authority for an appropriation for the quota was obtained in P.L. 105-
33.

Loans to International Monetary Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-0074-0-1-155 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 6,260 6,260 6,260
24.40 Unobligated balance available, end
of year: Uninvested............. 6,260 6,260 6,260
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

New Arrangements to Borrow.--The New Arrangements to Borrow (NAB),
proposed by the IMF in 1997, is modeled on the General Arrangements to
Borrow (GAB), which was established in 1962 by 10 industrial countries
including the United States. The GAB is a set of individual credit lines
extended to the IMF by participating countries; these credit lines are
intended to supplement the IMF's resources when responding to financial
crises that threaten the stability of the international monetary system.
The NAB would provide additional resources for such emergencies beyond
those available under the GAB. IMF lending programs financed from
credits extended to the IMF under both the GAB and the NAB typically
require borrowing countries to implement comprehensive market-based
structural reforms to support the immediate stabilization efforts and
long-term market opening and transparency.

In consultation with the Congress, the Administration expects to
request a 1998 supplemental appropriation amounting to the dollar
equivalent of 2,462 million Special Drawing Rights, $3.4 billion, to
cover the United States' share of the proposed NAB. This supplemental
request would allow the United States to provide its fair share of
contingent supplementary resources for the IMF for dealing with
international financial crises of systemic import.

In accordance with the budgetary treatment recommended by the
Presidential Commission on Budgetary concepts in 1968 and modified by
the Congress in 1980, United States' transactions with the IMF under the
NAB, as under the GAB, will not be scored as outlays and thus will not
increase the deficit. This is because the United States would receive a
liquid, interest-bearing claim on the IMF corresponding to any transfer
under the NAB to the IMF, and that claim would be backed by the IMF's
substantial reserves, including its holdings of gold. The authority for
a discretionary cap adjustment to accommodate the budget authority for
an appropriation for the NAB was obtained in P.L. 105-33.

Contribution to the Enhanced Structural Adjustment Facility of the
International Monetary Fund

For payment to the Interest Subsidy Account of the
Enhanced Structural Adjustment Facility of the International
Monetary Fund, $7,000,000, to remain available until
expended. (Additional authorizing legislation required.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-0005-0-1-155 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program.................... 7
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 7
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 7
23.95 New obligations................... -7
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 7
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 97 71 47
73.10 New obligations................... 7
73.20 Total outlays (gross)............. -26 -24 -22
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 71 47 32
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 26 24 22
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 7
90.00 Outlays........................... 26 24 22
---------------------------------------------------------------------------

The Enhanced Structural Adjustment Facility (ESAF) is an important
feature of United States' foreign economic policy in the developing
world. The relatively modest U.S. contribution to the facility helps to
leverage $15 billion in total concessional lending to developing and
transitional economies. ESAF promotes strong market-based economic and
financial

[[Page 971]]

reforms, catalyzes other sources of assistance, supports the
multilateral program for sustainable debt for the most heavily indebted
poor countries (HIPC), and advances the objectives of the
Administration's Partnership for Growth and Opportunity in Africa.
Countries that borrow from ESAF are usually required to adopt strong
multi-year economic and structural reform programs that foster a
transition to open, transparent, market-based economic activity. ESAF
programs advance critical U.S. interests in promoting economic growth,
financial stability, and the conditions essential to foster open and
accountable democratic institutions.

Created by the International Monetary Fund (IMF) in 1987, ESAF
provides financing on concessional terms to poor countries with
protracted balance of payments problems. These poor countries, most of
which are in Africa or were part of the former Soviet Union, generally
do not have access to private capital flows and are otherwise dependent
principally upon direct aid flows from official bilateral sources to
meet their external financing needs. ESAF obtains its resources from
members of the IMF through loans to the ESAF Trust or through
contributions to its interest subsidy account. In the late 1980's,
Congress authorized and appropriated $150 million for the U.S.
contributions to the initial ESAF interest subsidy account. In 1994 the
IMF membership agreed to an expanded and enlarged successor ESAF,
bringing the total amount available for loans to roughly $15 billion.
The Administration offered to contribute an additional $100 million to
the interest subsidy account to help support the enlarged loan capacity
under this expanded ESAF. This $100 million would outlay over a 15-year
period. The Congress authorized and appropriated $25 million of this
amount in 1995. There is still $75 million outstanding from this
commitment.

The Administration is seeking an appropriation of $7 million for
1999 to meet part of the remaining $75 million commitment to the
enlarged ESAF. It is also seeking authorization for this $75 million.

MILITARY SALES PROGRAMS

Federal Funds

Public enterprise funds:

Special Defense Acquisition Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4116-0-3-155 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
09.00 Reimbursable program.............. 1 3 6
--------- --------- ----------
10.00 Total obligations (object class
25.2)......................... 1 3 6
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 194 134 135
22.00 New budget authority (gross)...... 1 3 6
22.10 Resources available from
recoveries of prior year
obligations..................... 17 1 1
22.40 Capital transfer to general fund.. -77
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 135 138 142
23.95 New obligations................... -1 -3 -6
24.40 Unobligated balance available, end
of year: Uninvested............. 134 135 136
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.29 Appropriation available in prior
year.......................... 1 3 6
Permanent:

Spending authority from
offsetting collections:
68.00 Offsetting collections (cash). 89 80 56
68.27 Capital transfer to general
fund........................ -89 -80 -56
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)...................
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1 3 6
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 75 44 20
73.10 New obligations................... 1 3 6
73.20 Total outlays (gross)............. -14 -26 -20
73.45 Adjustments in unexpired accounts. -17 -1 -1
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 44 20 6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 3 6
86.98 Outlays from permanent balances... 14 24 14
--------- --------- ----------
87.00 Total outlays (gross)........... 14 26 20
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -89 -80 -56
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -88 -77 -50
90.00 Outlays........................... -75 -54 -36
---------------------------------------------------------------------------

This fund shows the financing transactions related to the transfer
of defense articles and services to foreign countries and international
organizations. This program is being phased out.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 11-4116-0-3-155 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 269 178 152 158
Investments in US securities:
1106 Receivables, net.............. 34 25 25 25
1802 Other Federal assets: Inventories
and related properties.......... 138 99 20 9
------------ -------------- ------------ -------------
1999 Total assets.................... 441 302 197 192
LIABILITIES:
2101 Federal liabilities: Accounts
payable......................... 1
Non-Federal liabilities:

2201 Accounts payable................ 1
2207 Other........................... 239 268 197 192
------------ -------------- ------------ -------------
2999 Total liabilities............... 241 268 197 192
NET POSITION:
3200 Invested capital.................. 200 34
------------ -------------- ------------ -------------
3999 Total net position.............. 200 34
------------ -------------- ------------ -------------
4999 Total liabilities and net position 441 302 197 192
-----------------------------------------------------------------------------------------------

Trust Funds

Foreign Military Sales Trust Fund

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-8242-0-7-155 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Encumbered future receipts, start
of year......................... -19,340 -18,111 -17,711
Receipts:
02.01 Deposits, advances, foreign
military sales.................. 15,128 13,750 12,550
--------- --------- ----------
04.00 Total: Balances and collections... -4,212 -4,361 -5,161
Appropriation:
05.01 Foreign military sales trust fund. -13,899 -13,350 -11,320
07.99 Total balance, end of year........ -18,111 -17,711 -16,481
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Military personnel................ 87 83 71
09.02 Operations and maintenance........ 265 255 216

[[Page 972]]

09.03 Procurement....................... 11,788 11,393 9,628
09.04 Research, development, test and
evaluation...................... 21 20 17
09.05 Special defense acquisition fund.. 166 80 56
09.06 Revolving and management funds.... 1,091 1,048 889
09.07 Construction...................... 126 121 103
09.08 Other............................. 355 350 340
--------- --------- ----------
09.99 Total reimbursable program...... 13,899 13,350 11,320
--------- --------- ----------
10.00 Total obligations (object class
25.3)......................... 13,899 13,350 11,320
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 13,899 13,350 11,320
23.95 New obligations................... -13,899 -13,350 -11,320
----------------------------------------------------------------------------

New budget authority (gross), detail:
60.27 Appropriation (trust fund,
indefinite)..................... 15,128 13,750 12,550
60.49 Portion applied to liquidate
contract authority.............. -15,128 -13,750 -12,550
--------- --------- ----------
63.00 Appropriation (total)...........
66.15 Contract authority (indefinite)... 13,899 13,350 11,320
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 13,899 13,350 11,320
----------------------------------------------------------------------------

Change in unpaid obligations:
Unpaid obligations, start of year:

Obligated balance:
72.40 Uninvested.................... 5,887 5,919 5,909
72.49 Contract authority............ 19,340 18,111 17,711
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 25,227 24,030 23,620
73.10 New obligations................... 13,899 13,350 11,320
73.20 Total outlays (gross)............. -15,096 -13,760 -12,550
Unpaid obligations, end of year:

Obligated balance:
74.40 Uninvested.................... 5,919 5,909 5,909
74.49 Contract authority............ 18,111 17,711 16,481
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 24,030 23,620 22,390
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 1,736 1,582 1,443
86.98 Outlays from permanent balances... 13,360 12,178 11,107
--------- --------- ----------
87.00 Total outlays (gross)........... 15,096 13,760 12,550
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 13,899 13,350 11,320
90.00 Outlays........................... 15,096 13,760 12,550
---------------------------------------------------------------------------

Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-8242-0-7-155 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
0100 Balance, start of year............ 19,340 18,111 17,711
Contract authority:
0200 Contract authority................ 13,899 13,350 11,320
0400 Appropriation to liquidate
contract authority.............. -15,128 -13,750 -12,550
0700 Balance, end of year.............. 18,111 17,711 16,481
---------------------------------------------------------------------------

This trust fund facilitates government-to-government sales of
defense articles, defense services, and design and construction
services. Estimates of sales used in this budget are (in millions of
dollars):

ESTIMATES OF NEW SALES

1997 actual 1998 est. 1999 est.
Estimates of new orders (sales)..... 8,808 10,300 10,700

Orders placed through this trust fund can be combined with
procurement for U.S. military departments. The savings are shared by the
United States and foreign governments. The net impact of foreign
military sales on the budget is (in millions of dollars):

FMS TRUST FUND TRANSACTIONS

1997 actual 1998 est. 1999 est.
Obligations of the fund............. 13,899 13,350 11,320
Receipts from foreign governments
(appropriation)..................... -15,128 -13,750 -12,550
------------------------------------
Net budget authority............ -1,279 -400 -1,230
====================================
Payments from the fund (outlays).... 15,096 13,760 12,550
Receipts from foreign governments
(appropriation)..................... -15,128 -13,750 -12,550
------------------------------------
Net outlays..................... -32 10
====================================

Kuwait Civil Reconstruction Trust Fund

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-8238-0-7-155 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
06.10 Unobligated balance returned to
receipts........................ 3
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 3 3
22.30 Unobligated balance expiring...... -3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3
24.40 Unobligated balance available, end
of year: Uninvested............. 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

This trust fund was established to show the U.S. costs in helping
the Government of Kuwait survey and assess the cost of repairing its
civil infrastructure. The Government of Kuwait reimburses the United
States with its own funds for all incurred expenses. Any unused funds
will be returned to the Government of Kuwait.

SPECIAL ASSISTANCE FOR CENTRAL AMERICA

Federal Funds

General and special funds:

Demobilization and Transition Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1500-0-1-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 5 3
73.20 Total outlays (gross)............. -2 -3
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 2 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 2 3
---------------------------------------------------------------------------

Funds for this account were transferred from Foreign Military
Financing pursuant to P.L. 101-513, to support costs of demobilization,
retraining, relocation, and reemployment in civilian pursuits of former
combatants in the conflict in El Salvador.

[[Page 973]]

Central American Reconciliation Assistance

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1038-0-1-152 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1 1
24.40 Unobligated balance available, end
of year: Uninvested............. 1
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 1 1 1
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 1 1 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

Funds for this account were transferred from the Department of
Defense in accordance with Public Law 101-14 in order to provide
humanitarian assistance to the Nicaraguan democratic resistance.
Adjustments to the account were made in Public Law 101-119 and Public
Law 101-215.

General Fund Receipt Accounts

(in millions of dollars)

----------------------------------------------------------------------------
1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
11-146800 Interest on foreign
military credit sales............... 208 172 137
11-296800 Repayment of loans, foreign
military credit sales............... 653 553 391
72-294100 Dollar repayments of loans,
Agency for International Development -1
--------- --------- ----------
General Fund Offsetting receipts from
the public............................. 860 725 528
---------------------------------------------------------------------------

TITLE V--GENERAL PROVISIONS

Obligations During Last Month of Availability

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

Prohibition of Bilateral Funding for International Financial
Institutions

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

Limitation on Residence Expenses

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

Limitation on Expenses

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

Limitation on Representational Allowances

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

Prohibition on Financing Nuclear Goods

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

Prohibition Against Direct Funding for Certain Countries

Sec. 507. None of the funds appropriated or otherwise made available
pursuant to this Act shall be obligated or expended to finance directly
any assistance or reparations to Cuba, Iraq, Libya, North Korea, Iran,
Sudan, or Syria, unless the President determines that to do so is in the
national interest of the United States: 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, unless the President determines that
to do so is in the national interest of the United States: Provided,
That assistance may be resumed to such country if the President
determines and reports to the Committees on Appropriations that
subsequent to the termination of assistance a democratically elected
government has taken office.

Transfers Between Accounts

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

Deobligation/Reobligation Authority

Sec. 510. (a) Amounts certified pursuant to section 1311 of the
Supplemental Appropriations Act, 1955, as having been obligated against
appropriations heretofore made under the authority of the Foreign
Assistance Act of 1961 for the same general purpose as any of the
headings under title II of this Act are, if deobligated, hereby
continued available for the same period as the respective appropriations
under such headings or until September 30, [1998] 1999, whichever is
later, and for the same general purpose, and for countries within the
same region as originally obligated: Provided, That the Appropriations
Committees of both Houses of the Congress are notified 15 days in
advance of the reobligation of such funds in accordance with regular
notification procedures of the Committees on Appropriations.
(b) Obligated balances of funds appropriated to carry out section 23
of the Arms Export Control Act as of the end of the fiscal year
immediately preceding the current fiscal year are, if deobligated,
hereby continued available during the current fiscal year for the same
purpose under any authority applicable to such appropriations

[[Page 974]]

under this Act: Provided, That the authority of this subsection may not
be used in fiscal year [1998] 1999.

Availability of Funds

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

Limitation on Assistance to Countries in Default

Sec. 512. No part of any appropriation contained in this Act shall
be used to furnish assistance to any country which is in default during
a period in excess of one calendar year in payment to the United States
of principal or interest on any loan made to such country by the United
States pursuant to a program for which funds are appropriated under this
Act, unless the President determines that furnishing assistance to such
country is in the national interest of the United States: 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, the Democratic Republic of Congo, and
Liberia, and for any narcotics-related assistance for Colombia, Bolivia,
and Peru authorized by the Foreign Assistance Act of 1961 or the Arms
Export Control Act.

[Commerce and Trade]

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

[Surplus Commodities]

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

Notification Requirements

Sec. [515] 513. (a) For the purposes of providing the executive
branch with the necessary administrative flexibility, none of the funds
made available under this Act for ``Child Survival and Disease Programs
Fund'', ``Development Assistance'', ``Development Credit Authority'',
``International organizations and programs'', ``Trade and Development
Agency'', ``International narcotics control'', ``Narcotics
Interdiction'', ``Assistance for Eastern Europe and the Baltic States'',
``Assistance for the New Independent States of the Former Soviet
Union'', ``Economic Support Fund'', ``Peacekeeping operations'',
``Operating expenses of the Agency for International Development'',
``Operating expenses of the Agency for International Development Office
of Inspector General'', ``Nonproliferation, anti-terrorism, demining and
related programs'', ``Foreign Military Financing Program'',
``International military education and training'', ``Peace Corps'',
``Migration and refugee assistance'', shall be available for obligation
for activities, programs, projects, type of materiel assistance,
countries, or other operations not justified or in excess of the amount
justified to the Appropriations Committees for obligation under any of
these specific headings unless the Appropriations Committees of both
Houses of Congress are previously notified 15 days in advance: Provided,
That the President shall not enter into any commitment of funds
appropriated for the purposes of section 23 of the Arms Export Control
Act for the provision of major defense equipment, other than
conventional ammunition, or other major defense items defined to be
aircraft, ships, missiles, or combat vehicles, not previously justified
to Congress or 20 percent in excess of the quantities justified to
Congress unless the Committees on Appropriations are notified 15 days in
advance of such commitment: Provided further, That this section shall
not apply to any reprogramming for an activity, program, or project
under chapter 1 of part I of the Foreign Assistance Act of 1961 of less
than 10 percent of the amount previously justified to the Congress for
obligation for such activity, program, or project for the current fiscal
year: Provided further, That the requirements of this section or any
similar provision of this Act or any other Act, including any prior Act
requiring notification in accordance with the regular notification
procedures of the Committees on Appropriations, may be waived if failure
to do so would pose a substantial risk to human health or welfare, or
that waiving such requirement is in the national interest of the United
States: Provided further, That in case of any such waiver, notification
to the Congress, or the appropriate congressional committees, shall be
provided as early as practicable, but in no event later than three days
after taking the action to which such notification requirement was
applicable, in the context of the circumstances necessitating such
waiver: Provided further, That any notification provided pursuant to
such a waiver shall contain an explanation of the emergency
circumstances.
(b) Drawdowns made pursuant to section 506(a)(2) of the Foreign
Assistance Act of 1961 shall be subject to the regular notification
procedures of the Committees on Appropriations.

limitation on Availability of Funds for International Organizations and
Programs

Sec. [516] 514. 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

[[Page 975]]

because of the implementation of this section or any similar provision
of law, shall remain available for obligation through September 30,
[1999] 2000.

[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 under the Treaty of Peace Between the Arab Republic of Egypt
and the State of Israel, done at Washington on March 26, 1979, Israel
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] 515. 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.

[Reporting Requirement]

[Sec. 519. 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. 520. None of the funds appropriated in this Act shall be
obligated or expended for Colombia, Haiti, Liberia, Pakistan, Panama,
Peru, Serbia, Sudan, or the Democratic Republic of Congo except as
provided through the regular notification procedures of the Committees
on Appropriations.]

Definition of Program, Project, and Activity

Sec. [521] 516. For the purpose of this Act, ``program, project, and
activity'' shall be defined at the appropriations Act account level and
shall include all appropriations and authorizations Acts earmarks,
ceilings, and limitations with the exception that for the following
accounts: Economic Support Fund and Foreign Military Financing Program,
``program, project, and activity'' shall also be considered to include
country, regional, and central program level funding within each such
account; for the development assistance accounts of the Agency for
International Development ``program, project, and activity'' shall also
be considered to include central program level funding, either as: (1)
justified to the Congress; or (2) allocated by the executive branch in
accordance with a report, to be provided to the Committees on
Appropriations within 30 days of enactment of this Act, as required by
section 653(a) of the Foreign Assistance Act of 1961.

Child Survival, Aids, and Other Activities

Sec. [522] 517. 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. [523] 518. None of the funds appropriated or otherwise made
available pursuant to this Act shall be obligated to finance indirectly
any assistance or reparations to Cuba, Iraq, Libya, Iran, Syria, North
Korea, or the People's Republic of China, unless the President of the
United States certifies that the withholding of these funds is contrary
to the national interest of the United States.

Reciprocal Leasing

Sec. [524] 519. Section 61(a) of the Arms Export Control Act is
amended by striking out [``1997''] ``1998'' and inserting in lieu
thereof [``1998''] ``1999''.

[Notification on Excess Defense Equipment]

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

Excess Defense Equipment for Central European Countries

Sec. 520. Section 105 of P.L. 104-164 (110 Stat 1427) is amended by
striking ``1996 and 1997'' and inserting, ``1999 and 2000''.

[Authorization Requirement]

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

Prohibition on Bilateral Assistance to Terrorist Countries

Sec. [527. (a) Notwithstanding any other provision of law, funds]
521. (a) 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 15 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.

[[Page 976]]

Commercial Leasing of Defense Articles

Sec. [528] 522. Notwithstanding any other provision of law, and
subject to the regular notification procedures of the Committees on
Appropriations, the authority of section 23(a) of the Arms Export
Control Act may be used to provide financing to Israel, Egypt and NATO
and major non-NATO allies for the procurement by leasing (including
leasing with an option to purchase) of defense articles from United
States commercial suppliers, not including Major Defense Equipment
(other than helicopters and other types of aircraft having possible
civilian application), if the President determines that there are
compelling foreign policy or national security reasons for those defense
articles being provided by commercial lease rather than by government-
to-government sale under such Act.

[Competitive Insurance]

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

[Stingers in the Persian Gulf Region]

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

Debt-for-Development

Sec. [531] 523. In order to enhance the continued participation of
nongovernmental organizations in economic assistance activities under
the Foreign Assistance Act of 1961, including endowments, debt-for-
development and debt-for-nature exchanges, a nongovernmental
organization which is a grantee or contractor of the Agency for
International Development may place in interest bearing accounts funds
made available under this Act or prior Acts or local currencies which
accrue to that organization as a result of economic assistance provided
under title II of this Act and any interest earned on such investment
shall be used for the purpose for which the assistance was provided to
that organization.

[Separate Accounts]

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

Compensation for United States Executive Directors to International
Financial Institutions

Sec. [533] 524. (a) No funds appropriated by this Act may be made as
payment to any international financial institution while the United
States Executive Director to such institution is compensated by the
institution at a rate which, together with whatever compensation such
Director receives from the United States, is in excess of the rate
provided for an individual occupying a position at level IV of the
Executive Schedule under section 5315 of title 5, United States Code, or
while any alternate United States Director to such institution is
compensated by the institution at a rate in excess of the rate provided
for an individual occupying a position at level V of the Executive
Schedule under section 5316 of title 5, United States Code.
(b) For purposes of this section, ``international financial
institutions'' are: the International Bank for Reconstruction and
Development, the Inter-American Development Bank, the Asian Development
Bank, the Asian Development Fund, the African Development Bank, the
African Development Fund, the International Monetary Fund, the North
American Development Bank, and the European Bank for Reconstruction and
Development.

Compliance With United Nations Sanctions Against Iraq

Sec. [534] 525. 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

[[Page 977]]

(3) the assistance to be provided will be humanitarian
assistance for foreign nationals who have fled Iraq and Kuwait.

Competitive Pricing for Sales of Defense Articles

Sec. [535] 526. 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.

[Extension of Authority To Obligate Funds To Close the Special Defense
Acquisition Fund]

[Sec. 536. Title III of Public Law 103-306 is amended under the
heading ``Special Defense Acquisition Fund'' by striking ``1998'' and
inserting ``2000''.]

Authorities for the Peace Corps, the Inter-American Foundation and the
African Development Foundation

Sec. [537] 527. Unless expressly provided to the contrary,
provisions of this or any other Act, including provisions contained in
prior Acts authorizing or making appropriations for foreign operations,
export financing, and related programs, shall not be construed to
prohibit activities authorized by or conducted under the Peace Corps
Act, the Inter-American Foundation Act, or the African Development
Foundation Act. The appropriate agency shall promptly report to the
Committees on Appropriations whenever it is conducting activities or is
proposing to conduct activities in a country for which assistance is
prohibited.

Impact on Jobs in the United States

Sec. [538] 528. None of the funds appropriated by this Act may be
obligated or expended to provide--
(1) any financial incentive to a business enterprise currently
located in the United States for the purpose of inducing such an
enterprise to relocate outside the United States if such incentive
or inducement is likely to reduce the number of employees of such
business enterprise in the United States because United States
production is being replaced by such enterprise outside the United
States;
(2) assistance for the purpose of establishing or developing in
a foreign country any export processing zone or designated area in
which the tax, tariff, labor, environment, and safety laws of that
country do not apply, in part or in whole, to activities carried out
within that zone or area, unless the President determines and
certifies that such assistance is not likely to cause a loss of jobs
within the United States; or
(3) assistance for any project or activity that contributes to
the violation of internationally recognized workers rights, as
defined in section 502(a)(4) of the Trade Act of 1974, of workers in
the recipient country, including any designated zone or area in that
country: Provided, That in recognition that the application of this
subsection should be commensurate with the level of development of
the recipient country and sector, the provisions of this subsection
shall not preclude assistance for the informal sector in such
country, micro and small-scale enterprise, and smallholder
agriculture.

Special Authorities

Sec. [539] 529. (a) Funds appropriated in title II of this Act that
are made available for Afghanistan, Lebanon, programs to support
democratization, and for victims of war, displaced children, displaced
Burmese, humanitarian assistance for Romania, and humanitarian
assistance for the peoples of Bosnia and Herzegovina, Croatia, and
Kosova, may be made available notwithstanding any other provision of
law.
(b) Funds appropriated by this Act to carry out the provisions of
sections 103 through 106 of the Foreign Assistance Act of 1961 may be
used, notwithstanding any other provision of law, for the purpose of
supporting 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) The Agency for International Development may employ personal
services contractors, notwithstanding any other provision of law, for
the purpose of administering programs for the West Bank and Gaza.
(d)(1) Waiver.--The President may waive the provisions of section
1003 of Public Law 100-204 if the President determines and certifies in
writing to the Speaker of the House of Representatives and the President
pro tempore of the Senate that it is important to the national security
interests of the United States.
(2) Period of Application of Waiver.--Any waiver pursuant to
paragraph (1) shall be effective for no more than a period of six months
at a time and shall not apply beyond twelve months after enactment of
this Act.
(e) During fiscal year 1999, the President may use up to $50,000,000
under the authority of section 451 of the Foreign Assistance Act of
1961, notwithstanding the funding ceiling contained in subsection (a) of
that section.

[Policy on Terminating the Arab League Boycott of Israel]

[Sec. 540. It is the sense of the Congress that--
(1) the Arab League countries should immediately and publicly
renounce the primary boycott of Israel and the secondary and
tertiary boycott of American firms that have commercial ties with
Israel;
(2) the decision by the Arab League in 1997 to reinstate the
boycott against Israel was deeply troubling and disappointing;
(3) the Arab League should immediately rescind its decision on
the boycott and its members should develop normal relations with
their neighbor Israel; and
(4) the President should--
(A) take more concrete steps to encourage vigorously Arab
League countries to renounce publicly the primary boycotts of
Israel and the secondary and tertiary boycotts of American firms
that have commercial relations with Israel as a confidence-
building measure;
(B) take into consideration the participation of any
recipient country in the primary boycott of Israel and the
secondary and tertiary boycotts of American firms that have
commercial relations with Israel when determining whether to
sell weapons to said country;
(C) report to Congress on the specific steps being taken by
the President to bring about a public renunciation of the Arab
primary boycott of Israel and the secondary and tertiary
boycotts of American firms that have commercial relations with
Israel and to expand the process of normalizing ties between
Arab League countries and Israel; and
(D) encourage the allies and trading partners of the United
States to enact laws prohibiting businesses from complying with
the boycott and penalizing businesses that do comply.]

Anti-Narcotics Activities

Sec. [541] 530. (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. [542] 531. (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 the Support for East European Democracy Act
of 1989: 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: 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

[[Page 978]]

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] 1999, restrictions
contained in this or any other Act with respect to assistance for a
country shall not be construed to restrict assistance under the
Agricultural Trade Development and Assistance Act of 1954: Provided,
That none of the funds appropriated to carry out title I of such Act and
made available pursuant to this subsection may be obligated or expended
except as provided through the regular notification procedures of the
Committees on Appropriations.
(c) Exception.--This section shall not apply--
(1) with respect to section 620A of the Foreign Assistance Act
or any comparable provision of law prohibiting assistance to
countries that support international terrorism; or (2) with respect
to section 116 of the Foreign Assistance Act of 1961 or any
comparable provision of law prohibiting assistance to [countries
that violate] the government of a country that violates
internationally recognized human rights.

Earmarks

Sec. [543] 532. (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. [544] 533. 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. [545] 534. No part of any appropriation contained in this Act
shall be used for publicity or propaganda purposes within the United
States not authorized before the date of enactment of this Act by the
Congress[: Provided, That not to exceed $500,000 may be made available
to carry out the provisions of section 316 of Public Law 96-533].

Purchase of American-Made Equipment and Products

Sec. [546] 535. [(a)] To the maximum extent possible, assistance
provided under this Act should make full use of American resources,
including commodities, products, and services.
[(b) It is the Sense of the Congress that, to the greatest extent
practicable, all equipment and products purchased with funds made
available in this Act should be American-made.]
[(c) In providing financial assistance to, or entering into any
contract with, any entity using funds made available in this Act, the
head of each Federal agency, to the greatest extent practicable, shall
provide to such entity a notice describing the statement made in
subsection (b) by the Congress.]

[Prohibition of Payments to United Nations Members]

[Sec. 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 October 1, 1997.]
[(b) Assistance restricted by subsection (a) or any other similar
provision of law, may be furnished if the President determines that
furnishing such assistance is important to the national interests of the
United States.]
[(c) Whenever the waiver of subsection (b) is exercised, the
President shall submit to the appropriate congressional committees a
report with respect to the furnishing of such assistance. Any such
report shall include a detailed explanation of the assistance estimated
to be provided, including the estimated dollar amount of such
assistance, and an explanation of how the assistance furthers United
States national interests.]

[Withholding of Assistance for Parking Fines Owed by Foreign Countries]

[Sec. 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 percent of the total unpaid fully adjudicated
parking fines and penalties owed to the District of Columbia by such
country as of the date of enactment of this Act shall be withheld from
obligation for such country until the Secretary of State certifies and
reports in writing to the appropriate congressional committees that such
fines and penalties are fully paid to the government of the District of
Columbia.]
[(b) Definition.--For purposes of this section, the term
``appropriate congressional committees'' means the Committee on Foreign
Relations and the Committee on Appropriations of the Senate and the
Committee on International Relations and the Committee on Appropriations
of the House of Representatives.]

[Limitation on Assistance for the PLO for the West Bank and Gaza]

[Sec. 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

[[Page 979]]

Act may not be obligated for assistance for the Palestine Liberation
Organization for the West Bank and Gaza.]

War Crimes Tribunals Drawdown

Sec. [553] 536. If the President determines that doing so will
contribute to a just resolution of charges regarding genocide or other
violations of international humanitarian law, the President may direct a
drawdown pursuant to section 552(c) of the Foreign Assistance Act of
1961, as amended, of up to $25,000,000 of commodities and services for
the United Nations War Crimes Tribunal established with regard to the
former Yugoslavia by the United Nations Security Council or such other
tribunals or commissions as the Council may establish to deal with such
violations, without regard to the ceiling limitation contained in
paragraph (2) thereof: Provided, That the determination required under
this section shall be in lieu of any determinations otherwise required
under section 552(c): Provided further, That 60 days after the date of
enactment of this Act, and every 180 days thereafter, the Secretary of
State shall submit a report to the Committees on Appropriations
describing the steps the United States Government is taking to collect
information regarding allegations of genocide or other violations of
international law in the former Yugoslavia and to furnish that
information to the United Nations War Crimes Tribunal for the former
Yugoslavia.

Landmines

Sec. [554] 537. Notwithstanding any other provision of law, demining
equipment available to the Agency for International Development and the
Department of State and used in support of the clearance of landmines
and unexploded ordnance for humanitarian purposes may be disposed of on
a grant basis in foreign countries, subject to such terms and conditions
as the President may prescribe[: Provided, That not later than 90 days
after the enactment of this Act, the Secretary of Defense, in
consultation with the Secretary of State, shall submit a report to the
Committees on Appropriations describing potential alternative
technologies or tactics and a plan for the development of such
alternatives to protect anti-tank mines from tampering in a manner
consistent with the ``Convention on the Prohibition, Use, Stockpiling,
Production and Transfer of Anti-personnel Mines and on Their
Destruction''].

[Restrictions Concerning the Palestinian Authority]

[Sec. 555. 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. [556] 538. None of the funds appropriated or otherwise made
available by this Act under the heading ``International Military
Education and Training'' or ``Foreign Military Financing Program'' for
Informational Program activities may be obligated or expended to pay
for--
(1) alcoholic beverages;
(2) food (other than food provided at a military installation)
not provided in conjunction with Informational Program trips where
students do not stay at a military installation; or
(3) entertainment expenses for activities that are substantially
of a recreational character, including entrance fees at sporting
events and amusement parks.

[Equitable Allocation of Funds]

[Sec. 557. Not more than 18 percent of the funds appropriated by
this Act to carry out the provisions of sections 103 through 106 and
chapter 4 of part II of the Foreign Assistance Act of 1961, that are
made available for Latin America and the Caribbean region may be made
available, through bilateral and Latin America and the Caribbean
regional programs, to provide assistance for any country in such
region.]

Special Debt Relief for the Poorest

Sec. [558] 539. (a) Authority To Reduce Debt.--The President may
reduce amounts owed to the United States (or any agency of the United
States) by an eligible country as a result of--
(1) guarantees issued under sections 221 and 222 of the Foreign
Assistance Act of 1961;
(2) credits extended or guarantees issued under the Arms Export
Control Act; or
(3) any obligation or portion of such obligation for a Latin
American country, to pay for purchases of United States agricultural
commodities guaranteed by the Commodity Credit Corporation under
export credit guarantee programs authorized pursuant to section 5(f)
of the Commodity Credit Corporation Charter Act of June 29, 1948, as
amended, section 4(b) of the Food for Peace Act of 1966, as amended
(Public Law 89-808), or section 202 of the Agricultural Trade Act of
1978, as amended (Public Law 95-501).
(b) Limitations.--
(1) The authority provided by subsection (a) may be exercised
only to implement multilateral official debt relief 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. [559] 540. (a) Loans Eligible for Sale, Reduction, or
Cancellation.--
(1) Authority to sell, reduce, or cancel certain loans.--
Notwithstanding any other provision of law, the President may, in
accordance with this section, sell to any eligible purchaser any
concessional loan or portion thereof made before January 1, 1995,
pursuant to the Foreign Assistance Act of 1961, to the government of
any eligible country as defined in section 702(6) of that Act or on
receipt of payment from an eligible purchaser, reduce or cancel such
loan or portion thereof, only for the purpose of facilitating--
(A) debt-for-equity swaps, debt-for-development swaps, or
debt-for-nature swaps; or
(B) a debt buyback by an eligible country of its own
qualified debt, only if the eligible country uses an additional
amount of the local currency of the eligible country, equal to
not less than 40 percent of the price paid for such debt by such
eligible country, or the difference between the price paid for
such debt and the face value of such debt, to support activities
that link conservation and sustainable use of natural resources
with local community development, and child survival and other
child develop-

[[Page 980]]

ment, 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''.

[International Financial Institutions]

[Sec. 560. (a) Authorizations.--The Secretary of the Treasury may,
to fulfill commitments of the United States: (1) effect the United
States participation in the first general capital increase of the
European Bank for Reconstruction and Development, subscribe to and make
payment for 100,000 additional shares of the capital stock of the Bank
on behalf of the United States; and (2) contribute on behalf of the
United States to the eleventh replenishment of the resources of the
International Development Association, to the sixth replenishment of the
resources of the Asian Development Fund, a special fund of the Asian
Development Bank. The following amounts are authorized to be
appropriated without fiscal year limitation for payment by the Secretary
of the Treasury: (1) $285,772,500 for paid-in capital, and $984,327,500
for callable capital of the European Bank for Reconstruction and
Development; (2) $1,600,000,000 for the International Development
Association; (3) $400,000,000 for the Asian Development Fund; and (4)
$76,832,001 for paid-in capital, and $4,511,156,729 for callable capital
of the Inter-American Development Bank in connection with the eighth
general increase in the resources of that Bank. Each such subscription
or contribution shall be subject to obtaining the necessary
appropriations.]
[(b) Consideration of Environmental Impact of International Finance
Corporation Loans.--Section 1307 of the International Financial
Institutions Act (Public Law 95-118) is amended as follows:
(1) in subsection (a)(1)(A) strike ``borrowing country'' and
insert in lieu thereof ``borrower'';
(2) in subsection (a)(2)(A) strike ``country''; and
(3) at the end of section 1307, add a new subsection as follows:
``(g) For purposes of this section, the term `multilateral
development bank' means any of the institutions named in section
1303(b) of this Act, and the International Finance Corporation.''.]
[(c) 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.]

Sanctions Against Countries Harboring War Criminals

Sec. [561] 541. (a) Bilateral Assistance.--The President is
authorized to withhold funds appropriated by this Act under the Foreign
Assistance Act of 1961 or the Arms Export Control Act for any country
described in subsection (c).
(b) Multilateral Assistance.--The Secretary of the Treasury should
instruct the United States executive directors of the international
financial institutions to work in opposition to, and vote against, any
extension by such institutions of financing or financial or technical
assistance to any country described in subsection (c).
(c) Sanctioned Countries.--A country described in this subsection is
a country the government of which knowingly grants sanctuary to persons
in its territory for the purpose of evading prosecution, where such
persons--
(1) have been indicted by the International Criminal Tribunal
for Rwanda, the International Criminal Tribunal for the former
Yugoslavia, or any other international tribunal with similar
standing under international law; or
(2) have been indicted for war crimes or crimes against humanity
committed during the period beginning March 23, 1933 and ending on
May 8, 1945 under the direction of, or in association with--
(A) the Nazi government of Germany;
(B) any government in any area occupied by the military
forces of the Nazi government of Germany;
(C) any government which was established with the assistance
or cooperation of the Nazi government; or
(D) any government which was an ally of the Nazi government
of Germany.

[Limitation on Assistance for Haiti]

[Sec. 562. (a) Limitation.--None of the funds appropriated or
otherwise made available by this Act may be provided to the Government
of Haiti unless the President reports to Congress that the Government of
Haiti--
(1) is conducting thorough investigations of extrajudicial and
political killings;
(2) is cooperating with United States authorities in the
investigations of political and extrajudicial killings;
(3) has substantially completed privatization of (or placed
under long-term private management or concession) at least three
major public enterprises; and
(4) has taken action to remove from the Haitian National Police,
national palace and residential guard, ministerial guard, and any
other public security entity of Haiti those individuals who are
credibly alleged to have engaged in or conspired to conceal gross
violations of internationally recognized human rights.]
[(b) Exceptions.--The limitation in subsection (a) does not apply to
the provision of humanitarian, electoral, counter-narcotics, or law
enforcement assistance.]
[(c) Waiver.--The President may waive the requirements of this
section on a semiannual basis if the President determines and certifies
to the appropriate committees of Congress that such waiver is in the
national interest of the United States.]
[(d) Parastatals Defined.--As used in this section, the term
``parastatal'' means a government-owned enterprise.]

[Requirement for Disclosure of Foreign Aid in Report of Secretary of
State]

[Sec. 563. (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 1997.]
[(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)).]

[[Page 981]]

[Restrictions on Voluntary Contributions to United Nations Agencies]

[Sec. 564. (a) Prohibition on Voluntary Contributions for the United
Nations.--None of the funds appropriated or otherwise made available by
this Act may be made available to pay any voluntary contribution of the
United States to the United Nations (including the United Nations
Development Program) if the United Nations implements or imposes any
taxation on any United States persons.]
[(b) Certification Required for Disbursement of Funds.--None of the
funds appropriated or otherwise made available under this Act may be
made available to pay any voluntary contribution of the United States to
the United Nations (including the United Nations Development Program)
unless the President certifies to the Congress 15 days in advance of
such payment that the United Nations is not engaged in any effort to
implement or impose any taxation on United States persons in order to
raise revenue for the United Nations or any of its specialized
agencies.]
[(c) Definitions.--As used in this section the term ``United States
person'' refers to--
(1) a natural person who is a citizen or national of the United
States; or
(2) a corporation, partnership, or other legal entity organized
under the United States or any State, territory, possession, or
district of the United States.]

[Assistance to Turkey]

[Sec. 565. (a) Not more than $40,000,000 of the funds appropriated
in this Act under the heading ``Economic Support Fund'' may be made
available for Turkey.]
[(b) Of the funds made available under the heading ``Economic
Support Fund'' for Turkey, not less than 50 percent of these funds shall
be made available for the purpose of supporting private nongovernmental
organizations engaged in strengthening democratic institutions in
Turkey, providing economic assistance for individuals and communities
affected by civil unrest, and supporting and promoting peaceful
solutions and economic development which will contribute to the
settlement of regional problems in Turkey.]

Limitation on Assistance to the Palestinian Authority or the Palestinian
Liberation Organization

Sec. [566] 542. (a) Prohibition of Funds.--None of the funds
appropriated by this Act to carry out the provisions of chapter 4 of
part II of the Foreign Assistance Act of 1961 may be obligated or
expended with respect to providing funds to the Palestinian Authority or
the Palestinian Liberation Organization.
(b) Waiver.--The prohibition included in subsection (a) shall not
apply if the President certifies in writing to the Speaker of the House
of Representatives and the President pro tempore of the Senate that
waiving such prohibition is important to the national security interests
of the United States.
(c) Period of Application of Waiver.--Any waiver pursuant to
subsection (b) shall be effective for no more than a period of six
months at a time and shall not apply beyond twelve months after
enactment of this Act.

[Limitation on Assistance to the Government of Croatia]

[Sec. 567. None of the funds appropriated or otherwise made
available by title II of this Act may be made available to the
Government of Croatia to relocate the remains of Croatian Ustashe
soldiers, at the site of the World War II concentration camp at
Jasenovac, Croatia.]

[Burma Labor Report]

[Sec. 568. Not later than 120 days after enactment of this Act, the
Secretary of Labor in consultation with the Secretary of State shall
provide to the Committees on Appropriations a report addressing labor
practices in Burma.]

Haiti

Sec. [569] 543. 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.

[Limitation on Assistance to Security Forces]

[Sec. 570. None of the funds made available by this Act may be
provided to any unit of the security forces of a foreign country if the
Secretary of State has credible evidence that such unit has committed
gross violations of human rights, unless the Secretary determines and
reports to the Committees on Appropriations that the government of such
country is taking effective measures to bring the responsible members of
the security forces unit to justice: Provided, That nothing in this
section shall be construed to withhold funds made available by this Act
from any unit of the security forces of a foreign country not credibly
alleged to be involved in gross violations of human rights: Provided
further, That in the event that funds are withheld from any unit
pursuant to this section, the Secretary of State shall promptly inform
the foreign government of the basis for such action and shall, to the
maximum extent practicable, assist the foreign government in taking
effective measures to bring the responsible members of the security
forces to justice.]

[Limitations on Transfer of Military Equipment to East Timor]

[Sec. 571. In any agreement for the sale, transfer, or licensing of
any lethal equipment or helicopter for Indonesia entered into by the
United States pursuant to the authority of this Act or any other Act,
the agreement shall state that the United States expects that the items
will not be used in East Timor: Provided, That nothing in this section
shall be construed to limit Indonesia's inherent right to legitimate
national self-defense as recognized under the United Nations Charter and
international law.]

[Transparency of Budgets]

[Sec. 572. (a) 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;''. (b)
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 Assistance 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 financing and related programs, may be provided for
any country, entity or canton described in subsection (d).]
[(b) Multilateral Assistance.--
(1) Prohibition.--The Secretary of the Treasury shall instruct
the United States executive directors of the international financial
institutions to work in opposition to, and vote against, any
extension by such institutions of any financial or technical
assistance or grants of any kind to any country or entity described
in subsection (d).
(2) Notification.--Not less than 15 days before any vote in an
international financial institution regarding the extension of
financial or technical assistance or grants to any country or entity
described in subsection (d), the Secretary of the Treasury, in
consultation with the Secretary of State, shall provide to the
Committee on Appropriations and the Committee on Foreign Relations
of the Senate and the Committee on Appropriations and the Committee
on Banking and Financial Services of the House of Representatives a
written justification for the proposed assistance, including an
explanation of the United States position regarding any such vote,
as well as a description of the location of the proposed assistance
by municipality, its purpose, and its intended beneficiaries.
(3) Definition.--The term ``international financial
institution'' includes the International Monetary Fund, the
International Bank for Reconstruction and Development, the
International Development Association, the International Finance
Corporation, the Multilateral Investment Guaranty Agency, and the
European Bank for Reconstruction and Development.]
[(c) Exceptions.--
(1) In general.--Subject to paragraph (2), subsections (a) and
(b) shall not apply to the provision of--
(A) humanitarian assistance;

[[Page 982]]

(B) democratization assistance;
(C) assistance for cross border physical infrastructure
projects involving activities in both a sanctioned country,
entity, or canton and a nonsanctioned contiguous country,
entity, or canton, if the project is primarily located in and
primarily benefits the nonsanctioned country, entity, or canton
and if the portion of the project located in the sanctioned
country, entity, or canton is necessary only to complete the
project;
(D) small-scale assistance projects or activities requested
by United States Armed Forces that promote good relations
between such forces and the officials and citizens of the areas
in the United States SFOR sector of Bosnia;
(E) implementation of the Brcko Arbitral Decision;
(F) lending by the international financial institutions to a
country or entity to support common monetary and fiscal policies
at the national level as contemplated by the Dayton Agreement;
or
(G) direct lending to a non-sanctioned entity, or lending
passed on by the national government to a non-sanctioned entity.
(2) Further limitations.--Notwithstanding paragraph (1)--
(A) no assistance may be made available by this Act, or any
prior Act making appropriations for foreign operations, export
financing and related programs, in any country, entity, or
canton described in subsection (d), for a program, project, or
activity in which a publicly indicted war criminal is known to
have any financial or material interest; and
(B) no assistance (other than emergency foods or medical
assistance or demining assistance) may be made available by this
Act, or any prior Act making appropriations for foreign
operations, export financing and related programs for any
program, project, or activity in a community within any country,
entity or canton described in subsection (d) if competent
authorities within that community are not complying with the
provisions of Article IX and Annex 4, Article II, paragraph 8 of
the Dayton Agreement relating to war crimes and the Tribunal.]
[(d) Sanctioned Country, Entity, or Canton.--A sanctioned country,
entity, or canton described in this section is one whose competent
authorities have failed, as determined by the Secretary of State, to
take necessary and significant steps to apprehend and transfer to the
Tribunal all persons who have been publicly indicted by the Tribunal.]
[(e) Waiver.--
(1) In general.--The Secretary of State may waive the
application of subsection (a) or subsection (b) with respect to
specified bilateral programs or international financial institution
projects or programs in a sanctioned country, entity, or canton upon
providing a written determination to the Committee on Appropriations
and the Committee on Foreign Relations of the Senate and the
Committee on Appropriations and the Committee on International
Relations of the House of Representatives that such assistance
directly supports the implementation of the Dayton Agreement and its
Annexes, which include the obligation to apprehend and transfer
indicted war criminals to the Tribunal.
(2) Report.--Not later than 15 days after the date of any
written determination under paragraph (e)(1), the Secretary of State
shall submit a report to the Committee on Appropriations and the
Committee on Foreign Relations of the Senate and the Committee on
Appropriations and the Committee on International Relations of the
House of Representatives regarding the status of efforts to secure
the voluntary surrender or apprehension and transfer of persons
indicted by the Tribunal, in accordance with the Dayton Agreement,
and outlining obstacles to achieving this goal.
(3) Assistance programs and projects affected.--Any waiver made
pursuant to this subsection shall be effective only with respect to
a specified bilateral program or multilateral assistance project or
program identified in the determination of the Secretary of State to
Congress.]
[(f) Termination of Sanctions.--The sanctions imposed pursuant to
subsections (a) and (b) with respect to a country or entity shall cease
to apply only if the Secretary of State determines and certifies to
Congress that the authorities of that country, entity, or canton have
apprehended and transferred to the Tribunal all persons who have been
publicly indicted by the Tribunal.]
[(g) Definitions.--As used in this section--
(1) Country.--The term ``country'' means Bosnia-Herzegovina,
Croatia, and Serbia-Montenegro (Federal Republic of Yugoslavia).
(2) Entity.--The term ``entity'' refers to the Federation of
Bosnia and Herzegovina and the Republika Srpska.
(3) Canton.--The term ``canton'' means the administrative units
in Bosnia and Herzegovina.
(4) Dayton agreement.--The term ``Dayton Agreement'' means the
General Framework Agreement for Peace in Bosnia and Herzegovina,
together with annexes relating thereto, done at Dayton, November 10
through 16, 1995.
(5) Tribunal.--The term ``Tribunal'' means the International
Criminal Tribunal for the Former Yugoslavia.]
[(h) Role of Human Rights Organizations and Government Agencies.--In
carrying out this subsection, the Secretary of State, the Administrator
of the Agency for International Development, and the executive directors
of the international financial institutions shall consult with
representatives of human rights organizations and all government
agencies with relevant information to help prevent publicly indicted war
criminals from benefitting from any financial or technical assistance or
grants provided to any country or entity described in subsection (d).]

[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''.]

Additional Requirements Relating to Stockpiling of Defense articles for
Foreign Countries

Sec. [575] 544. (a) Value of Additions to Stockpiles.--Section
514(b)(2)(A) of the Foreign Assistance Act of 1961 (22 U.S.C.
2321h(b)(2)(A)) is amended by inserting before the period at the end the
following: ``and [$60,000,000 for fiscal year 1998''] $340,000,000 for
fiscal year 1999''.
(b) Requirements Relating to the Republic of Korea and Thailand.--
Section 514(b)(2)(B) of such Act (22 U.S.C. 2321h(b)(2)(B)) is amended
by adding at the end the following: ``Of the amount specified in
subparagraph (A) for fiscal year [1998, not more than $40,000,000] 1999,
not more than $320,000,000 may be made available for stockpiles in the
Republic of Korea and not more than $20,000,000 may be made available
for stockpiles in Thailand.''.

[Delivery of Drawdown by Commercial Transportation Services]

[Sec. 576. Section 506 of the Foreign Assistance Act of 1961 (22
U.S.C. 2318) is amended--
(1) in subsection (b)(2), by striking the period and inserting
the following: ``, including providing the Congress with a report
detailing all defense articles, defense services, and military
education and training delivered to the recipient country or
international organization upon delivery of such articles or upon
completion of such services or education and training. Such report
shall also include whether any savings were realized by utilizing
commercial transport services rather than acquiring those services
from United States Government transport assets.'';
(2) by redesignating subsection (c) as subsection (d); and
(3) by inserting after subsection (b) the following:
``(c) For the purposes of any provision of law that
authorizes the drawdown of defense or other articles or
commodities, or defense or other services from an agency of the
United States Government, such drawdown may include the supply
of commercial transportation and related services that are
acquired by contract for the purposes of the drawdown in
question if the cost to acquire such commercial transportation
and related services is less than the cost to the United States
Government of providing such services from existing agency
assets.''.]

[To Prohibit Foreign Assistance to the Government of Russia Should It
Implement Laws Which Would Discriminate Against Minority Religious
Faiths in the Russian Federation]

[Sec. 577. (a) None of the funds appropriated under this Act may be
made available for the Government of the Russian Federation

[[Page 983]]

unless within 30 days of the date this section becomes effective the
President determines and certifies in writing to the Committees on
Appropriations and the Committee on Foreign Relations of the Senate and
the Committee on International Relations of the House of Representatives
that the Government of the Russian Federation has implemented no
statute, executive order, regulation or similar government action that
would discriminate, or would have as its principal effect
discrimination, against religious groups or religious communities in the
Russian Federation in violation of accepted international agreements on
human rights and religious freedoms to which the Russian Federation is a
party.]
[(b) This section shall become effective 150 days after the
enactment of this Act.]

[United States Policy Regarding Support for Countries of the South
Caucasus and Central Asia]

[Sec. 578. (a) Findings.--Congress makes the following findings:
(1) The ancient Silk Road, once the economic lifeline of Central
Asia and the South Caucasus, traversed much of the territory now
within the countries of Armenia, Azerbaijan, Georgia, Kazakstan,
Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.
(2) Economic interdependence spurred mutual cooperation among
the peoples along the Silk Road and restoration of the historic
relationships and economic ties between those peoples is an
important element of ensuring their sovereignty as well as the
success of democratic and market reforms.
(3) The development of strong political and economic ties
between countries of the South Caucasus and Central Asia and the
West will foster stability in the region.
(4) The development of open market economies and open democratic
systems in the countries of the South Caucasus and Central Asia will
provide positive incentives for international private investment,
increased trade, and other forms of commercial interactions with the
rest of the world.
(5) The Caspian Sea Basin, overlapping the territory of the
countries of the South Caucasus and Central Asia, contains proven
oil and gas reserves that may exceed $4,000,000,000,000 in value.
(6) The region of the South Caucasus and Central Asia will
produce oil and gas in sufficient quantities to reduce the
dependence of the United States on energy from the volatile Persian
Gulf region.
(7) United States foreign policy and international assistance
should be narrowly targeted to support the economic and political
independence of the countries of the South Caucasus and Central
Asia.]
[(b) General.--The policy of the United States in the countries of
the South Caucasus and Central Asia should be--
(1) to promote sovereignty and independence with democratic
government;
(2) to assist actively in the resolution of regional conflicts;
(3) to promote friendly relations and economic cooperation;
(4) to help promote market-oriented principles and practices;
(5) to assist in the development of infrastructure necessary for
communications, transportation, and energy and trade on an East-West
axis in order to build strong international relations and commerce
between those countries and the stable, democratic, and market-
oriented countries of the Euro-Atlantic Community; and
(6) to support United States business interests and investments
in the region.]
[(c) Definition.--In this section, the term ``countries of the South
Caucasus and Central Asia'' means Armenia, Azerbaijan, Georgia,
Kazakstan, Kyrgystan, Tajikistan, Turkmenistan, and Uzbekistan.]

Pakistan

[Sec. 579. (a) OPIC.--Section 239(f) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2199(f)) is amended by inserting ``, or Pakistan''
after ``China''.]
[(b) Trade and Development.--It is the sense of Congress that the
Director of the Trade and Development Agency should use funds made
available to carry out the provisions of section 661 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2421) to promote United States exports
to Pakistan.]
Sec. 545. Section 638(b) of the Foreign Assistance Act of 1961 (22
U.S.C. 2398(b)) is amended (1) by inserting ``or any activity to promote
the development of democratic institutions'' after ``activity''; and (2)
by inserting ``, Pakistan,'' after ``Brazil''.

[Requirements for the Reporting to Congress of the Costs to the Federal
Government Associated with the Proposed Agreement to Reduce Greenhouse
Gas Emissions]

[Sec. 580. The President shall provide to the Congress a detailed
account of all Federal agency obligations and expenditures for climate
change programs and activities, domestic and international, for fiscal
year 1997, planned obligations for such activities in fiscal year 1998,
and any plan for programs thereafter in the context of negotiations to
amend the Framework Convention on Climate Change (FCCC) to be provided
to the appropriate congressional committees no later than November 15,
1997.]

[Authority To Issue Insurance and Extend Financing]

[Sec. 581. (a) In General.--Section 235(a) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2195(a)) is amended--
(1) by striking paragraphs (1) and (2)(A) and inserting the
following:
``(1) Insurance and financing.--(A) The maximum contingent
liability outstanding at any one time pursuant to insurance
issued under section 234(a), and the amount of financing issued
under sections 234(b) and (c), shall not exceed in the aggregate
$29,000,000,000.'';
(2) by redesignating paragraph (3) as paragraph (2); and
(3) by amending paragraph (2) (as so redesignated) by striking
``September 30, 1997'' and inserting ``September 30, 1999''.]
[(b) Conforming Amendment.--Paragraph (2) of section 235(a) of that
Act (22 U.S.C. 2195(a)), as redesignated by subsection (a), is further
amended by striking ``(a) and (b)'' and inserting ``(a), (b), and
(c)''.]

Withholding Assistance to Countries Violating United Nations Sanctions
Against Libya

Sec. [582. (a)] 546. Withholding of Assistance.--Except as provided
in subsection (b), whenever the President determines and certifies to
Congress that the government of any country is violating any sanction
against Libya imposed pursuant to United Nations Security Council
Resolution 731, 748, or 883, then not less than 5 percent of the funds
allocated for the country under section 653(a) of the Foreign Assistance
Act of 1961 out of appropriations in this Act shall be withheld from
obligation and expenditure for that country.
(b) Exception.--The requirement to withhold funds under subsection
(a) shall not apply to funds appropriated in this Act for allocation
under section 653(a) of the Foreign Assistance Act of 1961 for
development assistance or for humanitarian assistance.
(c) Waiver.--Funds may be provided for a country without regard to
subsection (a) if the President determines that to do so is in the
national security interest of the United States.

[War Crimes Prosecution]

[Sec. 583. Section 2401 of title 18, United States Code (Public Law
104-192; the War Crimes Act of 1996) is amended as follows--
(1) in subsection (a), by striking ``grave breach of the Geneva
Conventions'' and inserting ``war crime'';
(2) in subsection (b), by striking ``breach'' each place it
appears and inserting ``war crime''; and
(3) so that subsection (c) reads as follows:
``(c) Definition.--As used in this section the term `war crime'
means any conduct--
``(1) defined as a grave breach in any of the international
conventions signed at Geneva 12 August 1949, or any protocol to such
convention to which the United States is a party;
``(2) prohibited by Article 23, 25, 27, or 28 of the Annex to
the Hague Convention IV, Respecting the Laws and Customs of War on
Land, signed 18 October 1907;

``(3) which constitutes a violation of common Article 3 of the
international conventions signed at Geneva, 12 August 1949, or any
protocol to such convention to which the United States is a party
and which deals with non-international armed conflict; or
``(4) of a person who, in relation to an armed conflict and
contrary to the provisions of the Protocol on Prohibitions or
Restrictions on the Use of Mines, Booby-Traps and Other Devices as
amended at Geneva on 3 May 1996 (Protocol II as amended on 3 May
1996), when the United States is a party to such Protocol, willfully
kills or causes serious injury to civilians.''.]

[[Page 984]]

[International Military Education and Training Programs for Latin
America]

[Sec. 584. (a) Expanded IMET.--The Secretary of Defense, in
consultation with the Secretary of State, should make every effort to
ensure that approximately 30 percent of the funds appropriated in this
Act for ``International Military Education and Training'' for the cost
of Latin American participants in IMET programs will be disbursed for
the purpose of supporting enrollment of such participants in expanded
IMET courses.]
[(b) Civilian Participation.--The Secretary of State, in
consultation with the Secretary of Defense, should identify sufficient
numbers of qualified, non-military personnel from countries in Latin
America so that approximately 25 percent of the total number of
individuals from Latin American countries attending United States
supported IMET programs and the Center for Hemispheric Defense Studies
at the National Defense University are civilians.]
[(c) Report.--Not later than twelve months after the date of
enactment of this Act, the Secretary of Defense, in consultation with
the Secretary of State, shall report in writing to the appropriate
committees of the Congress on the progress made to improve military
training of Latin American participants in the areas of human rights and
civilian control of the military. The Secretary shall include in the
report plans for implementing additional expanded IMET programs for
Latin America during the next three fiscal years.]

[Aid to the Government of the Democratic Republic of Congo]

[Sec. 585. None of the funds appropriated or otherwise made
available by this Act may be provided to the central Government of the
Democratic Republic of Congo until such time as the President reports in
writing to the Congress that the central Government of the Democratic
Republic of Congo is cooperating fully with investigators from the
United Nations in accounting for human rights violations committed in
the Democratic Republic of Congo or adjacent countries.]

[Assistance for the Middle East]

[Sec. 586. Of the funds appropriated by this Act under the headings
``Economic Support Fund'', ``Foreign Military Financing'',
``International Military Education and Training'', ``Peacekeeping
Operations'', for refugees resettling in Israel under the heading
``Migration and Refugee Assistance'', and for assistance for Israel to
carry out provisions of chapter 8 of part II of the Foreign Assistance
Act of 1961 under the heading ``Nonproliferation, Anti-Terrorism,
Demining, and Related Programs'', not more than a total of
$5,402,850,000 may be made available for Israel, Egypt, Jordan, Lebanon,
the West Bank and Gaza, the Israel-Lebanon Monitoring Group, the
Multinational Force and Observers, the Middle East Regional Democracy
Fund, Middle East Regional Cooperation, and Middle East Multilateral
Working Groups: Provided, That any funds that were appropriated under
such headings in prior fiscal years and that were at the time of
enactment of this Act obligated or allocated for other recipients may
not during fiscal year 1998 be made available for activities that, if
funded under this Act, would be required to count against this ceiling:
Provided further, That funds may be made available notwithstanding the
requirements of this section if the President determines and certifies
to the Committees on Appropriations that it is important to the national
security interest of the United States to do so and any such additional
funds shall only be provided through the regular notification procedures
of the Committees on Appropriations.]

[Agriculture]

[Sec. 587. The first proviso of subsection (k) under the heading
``Assistance for the New Independent States of the Former Soviet Union''
in the Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1997, as contained in Public Law 104-208, is amended
by striking ``not less than'' and inserting in lieu thereof ``up to''.]

[Enterprise Fund Restrictions]

[Sec. 588. 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
nor for arrangements approved by the grantor and notified in writing
to the Committees on Appropriations.''.]

[Cambodia]

[Sec. 589. The Secretary of the Treasury should instruct the United
States executive directors of the international financial institutions
to use the voice and vote of the United States to oppose loans to the
Government of Cambodia, except loans to support basic human needs.]

Export Financing Transfer Authorities

Sec. [590] 547. Not to exceed 5 percent of any appropriation other
than for administrative expenses made available for fiscal year [1998]
1999 for programs under title I of this Act may be transferred between
such appropriations for use for any of the purposes, programs and
activities for which the funds in such receiving account may be used,
but no such appropriation, except as otherwise specifically provided,
shall be increased by more than 25 percent by any such transfer:
Provided, That the exercise of such authority shall be subject to the
regular notification procedures of the Committees on Appropriations.

[Development Credit Authority]

[Sec. 591. For the cost, as defined in section 502 of the
Congressional Budget Act of 1974, of direct loans and loan guarantees in
support of the development objectives of the Foreign Assistance Act of
1961, up to $7,500,000, which amount may be derived by transfer from
funds appropriated by this Act to carry out part I of the Foreign
Assistance Act of 1961 and funds appropriated by this Act under the
heading ``Assistance for Eastern Europe and the Baltic States'', to
remain available until expended: Provided, That up to $500,000 of the
funds appropriated by this Act under the heading ``Operating Expenses of
the Agency for International Development'' may be made available for
administrative expenses to carry out such programs: Provided further,
That the provisions of section 107A(d) (relating to general provisions
applicable to development credit authority) of the Foreign Assistance
Act of 1961, as added by section 306 of H.R. 1486 as reported by the
House Committee on International Relations on May 9, 1997, shall be
applicable to direct loans and loan guarantees provided under this
paragraph: Provided further, That direct loans or loan guarantees under
this paragraph may not be provided until the Director of the Office of
Management and Budget has certified to the Committees on Appropriations
that the Agency for International Development has established a credit
management system capable of effectively managing the credit programs
funded under this heading, including that such system: (1) can provide
accurate and timely provision of loan and loan guarantee data; (2)
contains information control systems for loan and loan guarantee data;
(3) is adequately staffed; and (4) contains appropriate review and
monitoring procedures.]

[Authorization for Population Planning]

[Sec. 592. (a) Not to exceed $385,000,000 of the funds appropriated
in title II of this Act may be available for population planning
activities or other population assistance.]
[(b) Such funds may be apportioned only on a monthly basis, and such
monthly apportionments may not exceed 8.34 percent of the total
available for such activities.]
(Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1998.)