[House Prints 105-94, Part 2]
[From the U.S. Government Publishing Office]


[DOCID: f:hr094p2.105]
                            COMMITTEE PRINT

House Committee on Foreign Affairs


105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-   
_______________________________________________________________________


 
                       FOREIGN POLICY REFORM ACT

_______________________________________________________________________


  May   , 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Gilman, from the Committee on International Relations, submitted 
                             the following


                          SUPPLEMENTAL REPORT

                        [To accompany H.R. 1486]

    This supplemental report shows the cost estimate of the 
Congressional Budget Office and changes in existing law made by 
the bill (H.R. 1486), as reported, which was not included in 
the report submitted on May 9, 1997 (H. Rept. 105-94).
    This supplemental report is submitted in accordance with 
clause 2(l)(5)(ii) of Rule XI of the Rules of the House of 
Representatives.
  
                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 12, 1997.
Hon. Benjamin A. Gilman,
Chairman, Committee on International Relations,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1486, the Foreign 
Policy Reform Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts an Joseph C. 
Whitehill and Sunita D'Monte.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.
               Congressional Budget Office Cost Estimate

H.R. 1486--Foreign Policy Reform Act
    Summary: H.R. 1486 would consolidate various international 
affairs agencies, would authorize appropriations for foreign 
assistance programs, the Department of State, and related 
agencies, and would authorize the sale of 14 naval vessels.
    Assuming appropriation of the authorized amounts, CBO 
estimates that enacting H.R. 1486 would result in additional 
discretionary spending of $33 billion over the 1998-2002 
period. The legislation would increase direct spending by $11 
million in 1998 and by $0.3 billion over the next five years; 
therefore, pay-as-you-go procedures would apply. The sale of 
naval vessels would generate an estimated $163 million in 
offsetting receipts.
    The bill contains a provision that would result in costs to 
state, local, or tribal governments. CBO is unsure whether this 
provision constitutes an intergovernmental mandate as defined 
in the Unfunded Mandates Reform Act (UMRA), but mandate costs, 
if any, would be well below the threshold established in the 
law ($50 million in 1996, adjusted annually for inflation). 
H.R. 1486 would impose no new private-sector mandates as 
defined in UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1486 is shown in the table. For the 
purpose of this estimate, CBO assumes that all amounts 
authorized would be appropriated by the start of each fiscal 
year and that outlays would follow historical spending 
patterns.

                                     [By fiscal year in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
                                                 DIRECT SPENDING                                                
                                                                                                                
Proposed changes refugee determination: \1\                                                                     
    Estimated budget authority............................        0        0       20       60       70       80
    Estimated outlays.....................................        0        0       20       60       70       80
Other proposed changes:                                                                                         
    Estimated budget authority............................        0       11       15       15       16       17
    Estimated outlays.....................................        0       11       15       15       16       17
Total change in direct spending:                                                                                
    Estimated budget authority............................        0       11       35       75       86       87
    Estimated outlays.....................................        0       11       35       75       86       97
                                                                                                                
                                                 ASSET SALES \2\                                                
Estimated budget authority................................        0     -163        0        0        0        0
Estimated outlays.........................................        0     -163        0        0        0        0
                                                                                                                
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
Spending under current law: \3\                                                                                 
    Estimated authorization level \4\.....................   15,740        0        0        0        0        0
    Estimated outlays.....................................   16,322    7,073    2,974    1,513      702      383
Proposed changes:                                                                                               
    Estimated authorization level.........................        0   16,467   16,099      621      633      646
    Estimated outlays.....................................        0    9,337   13,547    6,031    2,592    1,601
Spending under the bill: \3\                                                                                    
    Estimated budget authorization level \4\..............   15,740   16,467   16,099      621      633      646
    Estimated outlays.....................................   16,322   16,410   16,521    7,544    3,294    1,984
----------------------------------------------------------------------------------------------------------------
\1\ Spending for Medicaid, Food Stamps, and Supplemental Security Income. Under current law, CBO estimates that 
  spending for these programs will be $150 billion in 1997 and will rise to $208 billion in 2002.               
\2\ Under recent budget resolutions, proceeds from assets sales are counted in the budget totals for purposes of
  Congressional scoring. Under the Balanced Budget Act, however, proceeds from asset sales are not counted in   
  determining compliance with the discretionary spending limits or pay-as-you-go requirement.                   
\3\ Funding for foreign assistance programs, the Department of State, and related agencies.                     
\4\ The 1997 level is the amount appropriated for that year.                                                    

    Basis of estimate:

                            direct spending

    This bill would increase direct spending by an estimated 
$0.3 billion over the next five years.
    Refugee Determination.--Section 1218 would extend a 
provision of U.S. immigration law that favors the automatic 
admission as refugees of certain nationals of the former Soviet 
Union (chiefly Jews and evangelical Christians), Vietnam, Laos, 
and Cambodia. Applicants for admission need only assert that 
they have a fear of persecution and a ``credible basis'' (not 
the stricter ``well-founded basis'' that others must prove) for 
that fear. (These provisions are commonly known as the 
Lautenberg criteria.)
    These criteria were first enacted in November 1989, and 
have been renewed several times since then. They currently 
cover applicants for refugee status who apply through September 
30, 1997. Section 1218 would extend that deadline for two 
years, through September 30, 1999.
    Under current law (section 207 of the Immigration and 
Nationality Act), the annual ceiling on refugee admissions is 
set by the President after consultation with the Congress. The 
refugees affected by this bill are accommodated within that 
ceiling. However, CBO believes that these criteria lead the 
President and the Congress to set a higher ceiling for refugee 
admissions than they otherwise would. That is, without these 
criteria, refugee admissions would be lower. There is no 
mechanism by which lower admissions of, for example, Soviet 
Jews and evangelicals would automatically lead to higher 
admissions of, say, Rwandans or Bosnians.
    According to the Department of State, approximately 2,000 
people in the former Soviet Union currently apply for admission 
each month as refugees, and about three-quarters of them are 
found to meet those criteria. (They are the principal 
beneficiaries of the provision.) Those figures are 
significantly smaller than the peak levels of the early 1990s. 
Because there are lags in scheduling applicants for interviews 
and then in assembling travel documents, CBO expects that 
extending the criteria for fiscal years 1998 and 1999 would 
boost the number of entries in 1999 and 2000. By the end of 
1999, an estimated 18,000 more refugees would be in the United 
States as a result of the extension; by the end of 2000, an 
estimated 36,000.
    According to the annual Report to the Congress of the 
Office of Refugee Resettlement in the Department of Health and 
Human Services, about 10 percent of these refugees go on 
Supplemental Security Income (SSI), 60 percent on Food Stamps, 
and up to 60 percent on Medicaid. (Also, some go on Aid to 
Families with Dependent Children, which has now been converted 
to a block grant at fixed levels of funding; on general 
assistance, which is state-funded; or on short-term refugee 
assistance, a federally-funded program that is subject to 
appropriation.) Last year's welfare reform law, the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 
(Public Law 104-193), curtailed the eligibility of most 
immigrants for welfare benefits, but spared refugees during 
their first five years in the United States. Based on these 
past patterns of welfare participation, CBO estimates that 
extra outlays in the SSI, Food Stamp, and Medicaid programs 
would total $20 million in 1999 and would grow to $80 million 
in 2002.
    Appropriation of Interest.--The bill contains several 
sections that authorize the deposit of certain funds into 
interest-bearing accounts and the spending of subsequent 
interest earnings without further appropriation. Sections 1205, 
1202, and 1204 provide this authority for proceeds from the 
sale of overseas property, the Foreign Service National 
Separation Liability Trust Fund and the International Center 
Reserve Fund, respectively. CBO estimates that these provisions 
would increase direct spending by $7 million to $10 million a 
year. Section 1402 authorizes recipients of grants from the 
National Endowment for Democracy to deposit grant funds in 
interest-bearing accounts and to use the interest for the same 
purpose for which the grant was made. Under current law, the 
grantees refund their interest earnings to the government. CBO 
estimates that under this provision the Treasury would forgo 
collections of less than $60,000 a year.
    Recovery of Health Care Costs.--Section 1214 would 
authorize the Secretary of State to recover from insurance 
companies the reasonable costs of health care services provided 
by the department and to deposit the funds as offsetting 
collections. These amounts would be available for spending. The 
provision would increase mandatory payments for Federal 
Employee Health Benefits (FEHB) and discretionary 
appropriations. CBO estimates that the department would collect 
and spend $12 million in 1998. Collections in 1999 through 2002 
were estimated assuming that collections grow at the same rate 
as inflation in health care costs, rising to $17 million by 
2002.
    CBO assumes that, after a short lag, insurance companies 
would recover the amount paid to the State Department plus 15 
percent for administrative overhead through higher FEHB 
premiums. The government pays 72 percent of FEHB premiums; of 
this, 45 percent is paid through a mandatory government payment 
for annuitants and 55 percent is paid through discretionary 
appropriations. Additional mandatory spending would average 
about $5 million a year, and increases in discretionary 
spending would average $6 million a year.
    Reappropriations.--The bill contains two provisions that 
would extend the availability of funds by specifying that the 
funds ``shall'' remain available until expended. Section 1203 
would extend the availability of funds deposited into the 
Capital Investment Fund and section 1216 would extend the 
availability of fees for commercial services. CBO estimates 
that reappropriations from both sections would be less than 
$500,000.
    Authority to Provide Services on a Reimbursable Basis.--
H.R. 1486 contains several provisions that would allow the 
Department of State to provide various services on a fee-for-
service or reimbursable basis. CBO estimates that collections 
and spending from the provisions would total less than $500,000 
per year. Section 1209 allows the department to accept 
reimbursement for the expenses of pursuing a claim against a 
foreign government or entity. Section 1213 authorizes the 
department to provide training services to corporate employees, 
their families, and Congressional employees on a reimbursable 
basis and to collect a new fee for the use of the Foreign 
Affairs Training Center. And finally, section 1215 would 
authorize the department to collect a new fee for the use of 
diplomatic reception rooms. All provisions specify that amounts 
collected would be deposited as offsetting collections and 
would remain available until expended.
    Termination Expenses.--Section 704 authorizes the President 
to deobligate and reobligate development assistance funds for 
countries whose assistance program is terminated. The 
reobligation would cover equitable settlements of third parties 
whose contracts were canceled when the assistance ended. CBO 
cannot estimate the budgetary effect of this section.

                              asset sales

    Chapter 5 would authorize the Secretary of the Navy to sell 
14 naval vessels to certain foreign countries. Based on 
information from the Navy, CBO estimates the sale would 
generate $163 million in offsetting receipts in 1998.
    Under recent budget resolutions, proceeds from asset sales 
have been counted in the budget totals for purposes of 
Congressional scoring. Under the Balanced Budget Act, however, 
proceeds from asset sales are not counted in determining 
compliance with the discretionary spending limits or pay-as-
you-go requirement.

                   spending subject to appropriations

    CBO estimates the bill would authorize appropriations of 
$16.5 billion in 1998, $16.1 billion in 1999, and $0.6 billion 
per year thereafter for foreign assistance programs, the 
Department of State, and other Ireland agencies. The estimate 
includes authorizations that specify both the dollar amounts 
and fiscal years, and the permanent, indefinite authorization 
for the appropriation of collections in special funds in the 
amounts discussed below under governmental receipts. In 
addition, the bill would authorize indefinite appropriations 
discussed below.
    Department of State Rewards Program.--Subject to 
appropriations action, section 1201 would authorize the 
President to take up to 2 percent of the earnings from the 
assets of foreign governments that have been blocked under the 
International Emergency Powers Act.
    Based on information from the Treasury Department, CBO 
estimates that 2 percent of the earnings on blocked assets 
would be $2 million per year. The funds would be available for 
the Department of State to pay rewards for the prevention of 
international terrorism, narcotics trafficking, and other 
crimes. The assets affected are not the property of the U.S. 
Government. Any taking would create a claim against the U.S. 
Government that would need to be resolved when normal relations 
between the United States and the countries are restored. The 
Department of State currently provides rewards totaling 
approximately $2 million a year, and this estimate assumes that 
section 1201 would result in an authorization of that amount 
each year.
    Indefinite Authorizations for Currency Fluctuations.--
Section 1102 (f) authorizes such sums as may be necessary in 
1998 and 1999 for international organizations and programs to 
compensate for adverse fluctuations in exchange rates. Any 
funds appropriated for this purpose would only be obligated and 
expended subject to an OMB certification. Section 1107 
authorizes such sums as may be necessary in 1998 and 1999 for 
the Arms Control and Disarmament Agency (ACDA) to compensate 
for increases in pay, employee benefits, and adverse 
fluctuations in exchange rates.
    Currency fluctutations are extremely difficult to estimate 
in advance. The spending to meet the foreign currency 
requirements for the two programs could be higher or lower than 
the amounts specifically authorized in the bill. Therefore, 
this estimate includes no costs associated with currency 
fluctuations.

                         governmental receipts

    The bill contains two provisions that would authorize 
collections of certain passport and consular fees to be 
deposited into special funds of the Treasury. CBO estimates 
these provisions would not affect governmental receipts or 
direct spending. The State Department already has the authority 
to collect these fees, and the authority to spend them would be 
subject to appropriation and is included as such in the table 
above.
    Section 1210 would authorize the deposit of passport and 
consular fees into a special fund of the Treasury. These 
collections would be available to the Department of State in 
such amounts as are provided for in advance in appropriations 
Acts. CBO estimates the department would collect $446 million 
in 1998 and $483 million in 2002.
    Similarly, section 1211 would establish a Machine Readable 
Visa fee account such that collections of the fee, a surcharge 
for processing certain types of visas, would be deposited into 
a special fund of the Treasury and would be available to the 
Department in such amounts as are provided for in advance in 
appropriations acts. CBO estimates that the department would 
collect $143 million in 1998 and $155 million in 2002.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act of 1985 establishes pay-as-you-go 
procedures for legislation affecting direct spending or 
receipts through fiscal year 1998. CBO estimates that enactment 
of H.R. 1486 would cause an increase in direct spending of $11 
million in 1998.
    Estimated impact on State, local, tribal governments: While 
H.R. 1486 would, by itself, establish no new enforceable duties 
on state, local, or tribal governments, increasing the number 
of refugees admitted to the United States, as required by the 
bill, would increase the costs associated with SSI 
supplementary payments. Approximately ten percent of the 
additional refugees would be eligible for federal SSI payments. 
Most states would be required under current law to supplement 
the federal payments to these individuals. CBO cannot determine 
whether these additional payments would be considered the 
direct costs of a mandate for the purposes of UMRA. In any 
event, CBO estimates that the additional costs to states would 
not exceed $5 million annually.
    States would face other costs as a result of the increases 
in the number of refugees admitted to the United States, but 
these costs would result either from state public assistance 
requirements that are not controlled by the federal government, 
or from an increase in the number of people eligible for 
federal entitlement programs. Because the bill would not 
increase the stringency of conditions for these entitlement 
programs, the costs associated with these provisions do not 
constitute mandate costs under the law.
    The bill also contains a provision that would encourage 
foreign governments to pay parking fines they owe to Maryland, 
Virginia, New York State, New York City, and the District of 
Columbia. Section 308 of the bill would require that an amount 
equal to 110 percent of the total unpaid parking fines owed by 
foreign governments be withheld from the foreign aid for those 
countries. The funds would become available for obligation once 
the parking fines are paid.
    Estimated impact on the private sector: H.R. 1486 would 
impose no new private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal Cost: Joseph C. Whitehill, 
Sunita D'Monte, Kathy Ruffing, Dorothy A. Rosenbaum, Robin 
Rudowitz, and Jeffrey Lemieux; impact on State, Local, and 
Tribal Governments: Pepper Santalucia; impact on the Private 
Sector: Lesley Frymier.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.


         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                      TITLE 5, UNITED STATES CODE

          * * * * * * *

                          PART III--EMPLOYEES

          * * * * * * *

                  Subpart B--Employment and Retention

          * * * * * * *

    CHAPTER 35--RETENTION PREFERENCE, RESTORATION, AND REEMPLOYMENT

          * * * * * * *

    SUBCHAPTER IV--REEMPLOYMENT AFTER SERVICE WITH AN INTERNATIONAL 
                              ORGANIZATION

          * * * * * * *

Sec. 3582. Rights of transferring employees

    (a) * * *
    (b) An employee entitled to the benefits of subsection (a) 
of this section is entitled to be reemployed within 30 days of 
his application for reemployment in his former position or a 
position of like seniority, status, and pay in the agency from 
which he transferred, if--
            (1) he is separated from the international 
        organization within 5 years, or any extension thereof, 
        after entering on duty with the international 
        organization or within such shorter period as may be 
        named by the head of the agency at the time of consent 
        to transfer; and
            (2) he applies for reemployment not later than 90 
        days after the separation.
[On reemployment, he is entitled to the rate of basic pay to 
which he would be entitled had he remained in the civil 
service. On reemployment, the agency shall restore his sick 
leave account, by credit or charge, to its status at the time 
of transfer. The period of separation caused by his employment 
with the international organization and the period necessary to 
effect reemployment are deemed creditable service for all 
appropriate civil service employment purposes. On reemployment, 
he is entitled to be paid, under such regulations as the 
President may prescribe and from appropriations or funds of the 
agency from which transferred, an amount equal to the 
difference between the pay, allowances, post differential, and 
other monetary benefits paid by the international organization 
and the pay, allowances, post differential, and other monetary 
benefits that would have been paid by the agency had he been 
detailed to the international organization under section 3343 
of this title. Such a payment shall be made to an employee who 
is unable to exercise his reemployment right because of 
disability incurred while on transfer to an international 
organization under this subchapter and, in the case of any 
employee who dies while on such a transfer or during the period 
after separation from the international organization in which 
he is properly exercising or could exercise his reemployment 
right, in accordance with subchapter VIII of chapter 55 of this 
title. This subsection does not apply to a congressional 
employee nor may any payment provided for in the preceding two 
sentences of this subsection be based on a period of employment 
with an international organization occurring before the first 
day of the first pay period which begins after December 29, 
1969.] On reemployment, he is entitled to the rate of basic pay 
to which he would have been entitled had he remained in the 
civil service. On reemployment, the agency shall restore his 
sick leave account, by credit or charge, to its status at the 
time of transfer. The period of separation caused by his 
employment with the international organization and the period 
necessary to effect reemployment are deemed creditable service 
for all appropriate civil service employment purposes. This 
subsection does not apply to a congressional employee.
          * * * * * * *

                     Subpart D--Pay and Allowances

          * * * * * * *

                     CHAPTER 55--PAY ADMINISTRATION

          * * * * * * *

                       SUBCHAPTER V--PREMIUM PAY

          * * * * * * *

Sec. 5542. Overtime rates; computation

    (a) * * *
          * * * * * * *
    (e) Notwithstanding subsection (d)(1) of this section, all 
hours of overtime work scheduled in advance of the 
administrative workweek shall be compensated under subsection 
(a) if that work involves duties as authorized by section 
3056(a) of [title 18, United States Code,] title 18 or section 
37(a)(3) of the State Department Basic Authorities Act of 1956, 
and if the investigator performs, on that same day, at least 2 
hours of overtime work not scheduled in advance of the 
administrative workweek.
          * * * * * * *

Sec. 5544. Wage-board overtime and Sunday rates; computation

    (a) An employee whose pay is fixed and adjusted from time 
to time in accordance with prevailing rates under section 5343 
or 5349 of this title, or by a wage board or similar 
administrative authority serving the same purpose, is entitled 
to overtime pay for overtime work in excess of 8 hours a day or 
40 hours a week. However, an employee subject to this 
subsection who regularly is required to remain at or within the 
confines of his post of duty in excess of 8 hours a day in a 
standby or on-call status is entitled to overtime pay only for 
hours of duty, exclusive of eating and sleeping time, in excess 
of 40 a week. The overtime hourly rate of pay is computed as 
follows:
            (1) If the basic rate of pay of the employee is 
        fixed on a basis other than an annual or monthly basis, 
        multiply the basic hourly rate of pay by not less than 
        one and one-half.
            (2) If the basic rate of pay of the employee is 
        fixed on an annual basis, divide the basic annual rate 
        of pay by 2,087, and multiply the quotient by one and 
        one-half. For employees serving outside the United 
        States in areas where Sunday is a routine workday and 
        another day of the week is officially recognized as the 
        day of rest and worship, the Secretary of State may 
        designate the officially recognized day of rest and 
        worship as the day with respect to which the preceding 
        sentence shall apply instead of Sunday.
            (3) If the basic rate of pay of the employee is 
        fixed on a monthly basis, multiply the basic monthly 
        rate of pay by 12 to derive a basic annual rate of pay, 
        divide the basic annual rate of pay by 2,087, and 
        multiply the quotient by one and one-half.
An employee subject to this subsection whose regular work 
schedule includes an 8-hour period of service a part of which 
is on Sunday is entitled to additional pay at the rate of 25 
percent of his hourly rate of basic pay for each hour of work 
performed during that 8-hour period of service. Time spent in a 
travel status away from the official duty station of an 
employee subject to this subsection is not hours of work unless 
the travel (i) involves the performance of work while 
traveling, (ii) is incident to travel that involves the 
performance of work while traveling, (iii) is carried out under 
arduous conditions, or (iv) results from an event which could 
not be scheduled or controlled administratively. The first and 
third sentences of this subsection shall not be applicable to 
an employee who is subject to the overtime pay provisions of 
section 7 of the Fair Labor Standards Act of 1938. In the case 
of an employee who would, were it not for the preceding 
sentence, be subject to the first and third sentences of this 
subsection, the Office of Personnel Management shall by 
regulation prescribe what hours shall be deemed to be hours of 
work and what hours of work shall be deemed to be overtime 
hours for the purpose of such section 7 so as to ensure that no 
employee receives less pay by reason of the preceding sentence.
          * * * * * * *

Sec. 5545a. Availability pay for criminal investigators

    (a) For purposes of this section--
            (1) * * *
            (2) the term ``criminal investigator'' means a law 
        enforcement officer as defined under section 5541(3) 
        (other than an officer occupying a position under title 
        II of [Public Law 99-399)] Public Law 99-399, subject 
        to subsection (k)) who is required to--
                    (A) * * *
          * * * * * * *
    (k)(1) For purposes of this section, the term ``criminal 
investigator'' includes an officer occupying a position under 
title II of Public Law 99-399 if--
            (A) subject to subparagraph (C), such officer meets 
        the definition of such term under paragraph (2) of 
        subsection (a) (applied disregarding the parenthetical 
        matter before subparagraph (A) thereof);
            (B) the primary duties of the position held by such 
        officer consist of performing--
                    (i) protective functions; or
                    (ii) criminal investigations; and
            (C) such officer satisfies the requirements of 
        subsection (d) without taking into account any hours 
        described in paragraph (2)(B) thereof.
    (2) In applying subsection (h) with respect to an officer 
under this subsection--
            (A) any reference in such subsection to ``basic 
        pay'' shall be considered to include amounts designated 
        as ``salary'';
            (B) paragraph (2)(A) of such subsection shall be 
        considered to include (in addition to the provisions of 
        law specified therein) sections 609(b)(1), 805, 806, 
        and 856 of the Foreign Service Act of 1980; and
            (C) paragraph (2)(B) of such subsection shall be 
        applied by substituting for ``Office of Personnel 
        Management'' the following: ``Office of Personnel 
        Management or the Secretary of State (to the extent 
        that matters exclusively within the jurisdiction of the 
        Secretary are concerned)''.

Sec. 5546. Pay for Sunday and holiday work

    (a) An employee who performs work during a regularly 
scheduled 8-hour period of service which is not overtime work 
as defined by section 5542(a) of this title a part of which is 
performed on Sunday is entitled to pay for the entire period of 
service at the rate of his basic pay, plus premium pay at a 
rate equal to 25 percent of his rate of basic pay. For 
employees serving outside the United States in areas where 
Sunday is a routine workday and another day of the week is 
officially recognized as the day of rest and worship, the 
Secretary of State may designate the officially recognized day 
of rest and worship as the day with respect to which the 
preceding sentence shall apply instead of Sunday.
          * * * * * * *

           Subpart F--Labor-Management and Employee Relations

          * * * * * * *

Sec. 7103. Definitions; application

    (a) For the purpose of this chapter--
            (1) ``person'' means an individual, labor 
        organization, or agency;
            (2) ``employee'' means an individual--
                    (A) employed in an agency; or
                    (B) whose employment in an agency has 
                ceased because of any unfair labor practice 
                under section 7116 of this title and who has 
                not obtained any other regular and 
                substantially equivalent employment, as 
                determined under regulations prescribed by the 
                Federal Labor Relations Authority;
        but does not include--
                    (i) * * *
          * * * * * * *
                    (iv) an officer or employee in the Foreign 
                Service of the United States employed in the 
                Department of State, the International 
                Communication Agency, [the United States 
                International Development Cooperation Agency] 
                the United States Agency for International 
                Development, the Department of Agriculture, or 
                the Department of Commerce; or
          * * * * * * *
                              ----------                              


            SECTION 8A OF THE INSPECTOR GENERAL ACT OF 1978

special provisions relating to the agency for international development

    Sec. 8A. (a) In addition to the other duties and 
responsibilities specified in this Act, the Inspector General 
of the [Agency for International Development--
            [(1) shall supervise] Agency for International 
        Development shall supervise, direct, and control all 
        security activities relating to the programs and 
        operations of that Agency, subject to the supervision 
        of the Administrator of that Agency[; and].
            [(2) to the extent requested by the Director of the 
        United States International Development Cooperation 
        Agency (after consultation with the Administrator of 
        the Agency for International Development), shall 
        supervise, direct, and control all audit, 
        investigative, and security activities relating to 
        programs and operations within the United States 
        International Development Cooperation Agency.]
          * * * * * * *
    [(c) The semiannual reports required to be submitted to the 
Administrator of the Agency for International Development 
pursuant to section 5(b) of this Act shall also be submitted to 
the Director of the United States International Development 
Cooperation Agency.]
          * * * * * * *
    [(f) The reference in section 7(a) of this Act to an 
employee of the establishment shall, with respect to the 
Inspector General of the Agency for International Development, 
be construed to include an employee of or under the United 
States International Development Cooperation Agency.]
          * * * * * * *
                              ----------                              


     INTERNATIONAL SECURITY AND DEVELOPMENT COOPERATION ACT OF 1980

          * * * * * * *

               TITLE III--DEVELOPMENT ASSISTANCE PROGRAMS

          * * * * * * *

                              world hunger

    Sec. 316. (a) In order to further the purposes of section 
103 of the Foreign Assistance Act of 1961, the [Director of the 
United States International Development Cooperation Agency] 
Administrator of the United States Agency for International 
Development shall encourage the ongoing work of private and 
voluntary organizations to deal with world hunger problems 
abroad. To this end, the [Director] Administrator shall help 
facilitate widespread public discussion, analysis, and review 
of the issues raised by the Report of the Presidential 
Commission on World Hunger of March 1980, especially the issues 
raised by the Commission's call for increased public awareness 
of the political, economic, technical, and social factors 
relating to hunger and poverty.
    (b) As a means of carrying out subsection (a), and to 
ensure the effectiveness of private and voluntary organizations 
in dealing with world hunger abroad, the [Director] 
Administrator is urged to provide assistance to private and 
voluntary organizations engaged in facilitating public 
discussion of hunger and other related issues.
          * * * * * * *

                TITLE V--AFRICAN DEVELOPMENT FOUNDATION

          * * * * * * *

                    authorizations of appropriations

    Sec. 510. There are authorized to be appropriated to carry 
out this title, in addition to amounts otherwise available for 
that purpose, [$3,872,000 for fiscal year 1986 and $3,872,000 
for fiscal year 1987] $11,500,000 for fiscal year 1998 and 
$10,000,000 for fiscal year 1999. Funds appropriated under this 
section are authorized to remain available until expended.
          * * * * * * *
                              ----------                              


             STATE DEPARTMENT BASIC AUTHORITIES ACT OF 1956

 AN ACT To provide certain basic authority for the Department of State.

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act may be cited as the ``State Department Basic Authorities 
Act of 1956''.

                  TITLE I--BASIC AUTHORITIES GENERALLY

                organization of the department of state

    Section 1. (a) * * *
          * * * * * * *
    (c) Assistant Secretaries.--
            (1) * * *
          * * * * * * *
            (3) Assistant secretary for human resources.--There 
        shall be in the Department of State an Assistant 
        Secretary for Human Resources who shall be responsible 
        to the Secretary of State for matters relating to human 
        resources including the implementation of personnel 
        policies and programs within the Department of State 
        and international affairs functions and activities 
        carried out through the Department of State. The 
        Assistant Secretary shall have substantial professional 
        qualifications in the field of human resource policy 
        and management.
            (4) Assistant secretary for diplomatic security.--
        There shall be in the Department of State an Assistant 
        Secretary for Diplomatic Security who shall be 
        responsible to the Secretary of State for matters 
        relating to diplomatic security. The Assistant 
        Secretary shall have substantial professional 
        qualifications in the field of Federal law enforcement, 
        intelligence, or security.
          * * * * * * *
    (e) Other Senior Officials.--[In] (1) In addition to 
officials of the Department of State who are otherwise 
authorized to be appointed by the President, by and with the 
advice and consent of the Senate, and to be compensated at 
level IV of the Executive Schedule of section 5315 of title 5, 
United States Code, four other such appointments are 
authorized.
    (2) Coordinator for counterterrorism.--
            (A) There shall be within the office of the 
        Secretary of State a Coordinator for Counterterrorism 
        (hereafter in this paragraph referred to as the 
        ``Coordinator'') who shall be appointed by the 
        President, by and with the advice and consent of the 
        Senate.
            (B)(i) The Coordinator shall perform such duties 
        and exercise such power as the Secretary of State shall 
        prescribe.
            (ii) The principal duty of the Coordinator shall be 
        the overall supervision (including policy oversight of 
        resources) of international counterterrorism 
        activities. The Coordinator shall be the principal 
        adviser to the Secretary of State on international 
        counterterrorism matters. The Coordinator shall be the 
        principal counterterrorism official within the senior 
        management of the Department of State and shall report 
        directly to the Secretary of State.
            (C) The Coordinator shall have the rank and status 
        of Ambassador-at-Large. The Coordinator shall be 
        compensated at the annual rate of basic pay in effect 
        for a position at level IV of the Executive Schedule 
        under section 5314 of title 5, United States Code, or, 
        if the Coordinator is appointed from the Foreign 
        Service, the annual rate of pay which the individual 
        last received under the Foreign Service Schedule, 
        whichever is greater.
          * * * * * * *
    Sec. 25. (a) * * *
          * * * * * * *
    (f) The authorities available to the Secretary of State 
under this section with respect to the Department of State 
shall be available to the Director of the United States 
Information Agency and the [Director of the United States 
International Development Cooperation Agency] Administrator of 
the United States Agency for International Development with 
respect to their respective agencies.
    Sec. 26. (a) * * *
    (b) The authority available to the Secretary of State under 
this section shall be available to the Director of the United 
States Information Agency, the chairman of the Board for 
International Broadcasting, and the [Director of the United 
States International Development Cooperation Agency] 
Administrator of the United States Agency for International 
Development with respect to their respective agencies.
          * * * * * * *
    Sec. 29. Whenever the Secretary of State determines that 
educational facilities are not available, or that existing 
educational facilities are inadequate, to meet the needs of 
children of United States citizens stationed outside the United 
States who are engaged in carrying out Government activities, 
the Secretary may, in such manner as he deems appropriate and 
under such regulations as he may prescribe, establish, operate, 
and maintain primary schools, and school dormitories and 
related educational facilities for primary and secondary 
schools, outside the United States, make grants of funds for 
such purposes, or otherwise provide for such educational 
facilities. The authorities of the Foreign Service Buildings 
Act, 1926, and of paragraphs (h) and (i) of section 3 of this 
Act, may be utilized by the Secretary in providing assistance 
for educational facilities. Such assistance may include hiring, 
transporting, and payment of teachers and other necessary 
personnel. Notwithstanding any other provision of law, where 
the children of United States citizen employees of an agency of 
the United States Government who are stationed outside the 
United States attend educational facilities assisted by the 
Department of State under this section, such agency is 
authorized make grants to, or otherwise to reimburse or credit 
with advance payment, the Department of State for funds used in 
providing assistance to such educational facilities.
          * * * * * * *
    Sec. 32. The Secretary of State may pay, without regard to 
section 5702 of title 5, United States Code, subsistence 
expenses of (1) special agents of the Department of State who 
are on authorized protective missions, and (2) members of the 
Foreign Service and employees of the Department who are 
required to spend extraordinary amounts of time in travel 
status. The authorities available to the Secretary of State 
under this section with respect to the Department of State 
shall be available to the Director of the United States 
Information Agency and the [Director of the United States 
International Development Cooperation Agency] Administrator of 
the United States Agency for International Development with 
respect to their respective agencies, except that the authority 
of clause (2) shall be available with respect to those agencies 
only in the case of members of the Foreign Service and 
employees of the agency who are performing security-related 
functions abroad.
    Sec. 33. The following documents shall have the same force 
and effect as proof of United States citizenship as 
certificates of naturalization or of citizenship issued by the 
Attorney General or by a court having naturalization 
jurisdiction:
            (1) A passport, during its period of validity (if 
        such period is the maximum period authorized by law), 
        issued by the Secretary of State to a citizen of the 
        United States.
            (2) The report, designated as a ``Report of Birth 
        Abroad of a Citizen of the United States'', issued by a 
        consular officer (or any United States citizen employee 
        of the Department of State designated by the Secretary 
        of State to adjudicate nationality abroad pursuant to 
        such regulations as the Secretary may prescribe) to 
        document a citizen born abroad.
    Sec. 34. (a) * * *
          * * * * * * *
    (c) Emergency Waiver of Notification Requirement.--The 
Secretary of State may waive the notification requirement of 
subsection (a), if the Secretary determines that failure to do 
so would pose a substantial risk to human health or welfare. In 
the case of any waiver under this subsection, notification to 
the appropriate congressional committees shall be provided as 
soon as practicable, but not later than 3 days after taking the 
action to which the notification requirement was applicable, 
and shall contain an explanation of the emergency 
circumstances.
          * * * * * * *
    [Sec. 36. (a)(1) The Secretary of State shall establish and 
publicize a program under which rewards may be paid to any 
individual who furnishes information--
            [(A) leading to the arrest or conviction in any 
        country, of any individual for the commission of an act 
        of international terrorism, or
            [(B) leading to the arrest or conviction, in any 
        country, of any individual for conspiring or attempting 
        to commit an act of international terrorism, or
            [(C) leading to the prevention, frustration, or 
        favorable resolution of an act of international 
        terrorism.
if the act of international terrorism is against a United 
States person or United States property.
    [(2) For purposes of this subsection, the term ``act of 
international terrorism'' includes any act substantially 
contributing to the acquisition of unsafeguarded special 
nuclear material (as defined in section 830(8) of the Nuclear 
Proliferation Prevention Act of 1994) or any nuclear explosive 
device (as defined in section 830(4) of that Act) by an 
individual, group, or non-nuclear-weapon state (as defined in 
section 830(5) of that Act).
    [(b)(1) The Secretary of State, upon the request of a chief 
of mission and with the concurrence of the Attorney General, 
may pay a reward to any individual who furnishes information 
leading to--
            [(A) the arrest or conviction in any country of any 
        individual for committing, primarily outside the 
        territorial jurisdiction of the United States, any 
        narcotics-related offense if that offense involves or 
        is a significant part of conduct that involves--
                    [(i) a violation of United States drug laws 
                which occurs primarily outside the territorial 
                jurisdiction of the United States and which is 
                such that the individual would be a major 
                violator of such laws; or
                    [(ii) the killing or kidnapping outside the 
                territorial jurisdiction of the United States 
                of--
                            [(I) any officer, employee, or 
                        contract employee of the United States 
                        Government while such individual is 
                        engaged in official duties, or on 
                        account of that individual's official 
                        duties, in connection with the 
                        enforcement of United States drug laws 
                        or the implementing of United States 
                        drug control objectives; or
                            [(II) a member of the immediate 
                        family of any such individual on 
                        account of that individual's official 
                        duties in connection with the 
                        enforcement of United States drug laws 
                        or the implementation of United States 
                        drug control objectives; or
                    [(iii) an attempt or conspiracy to do any 
                of the acts described in clause (i) or (ii); or
            [(B) the prevention or frustration of an act 
        described in subparagraph (A).
    [(2) The purpose of the rewards under this subsection is to 
assist narcotics law enforcement in the effective arrest and 
prosecution of major narcotics traffickers and, wherever 
appropriate, to offer rewards in connection with the killing 
of, or the attempt to kill, any United States officer or 
employee, in connection with the performance of narcotics 
control duties by such officer or employee, or any member of 
the family of such officer or employee. To ensure that the 
rewards program authorized by this subsection, especially 
paragraph (1)(A)(i), does not duplicate or interfere with the 
payment of informants or the purchase of evidence or 
information, as authorized to the Department of Justice, the 
offering, administration, and payment of rewards under this 
subsection, including procedures for--
            [(A) identifying individuals, organizations, and 
        offenses with respect to which rewards will be offered,
            [(B) the publication of rewards,
            [(C) offering of joint rewards with foreign 
        governments,
            [(D) the receipt and analysis of data,
            [(E) the payment and the approval of payment, and
            [(F) the recommendations of rewards by chiefs of 
        mission to the Secretary of State and the Attorney 
        General,
shall be governed by procedures approved by the Secretary of 
State and the Attorney General.
    [(c) A reward under this section may not exceed $2,000,000. 
A reward of $100,000 or more may not be made without the 
approval of the President or the Secretary of State personally.
    [(d) Before making a reward under subsection (a) in a 
matter over which there is Federal criminal jurisdiction, the 
Secretary of State shall advise and consult with the Attorney 
General.
    [(e) Any reward granted under this section shall be 
certified for payment by the Secretary of State. If the 
Secretary determines that the identity of the recipient of a 
reward or of the members of the recipient's immediate family 
must be protected, the Secretary may take such measures in 
connection with the payment of the reward as he deems necessary 
to effect such protection.
    [(f) An officer or employee of any governmental entity who, 
while in the performance of his or her official duties, 
furnishes information described in subsection (a) or (b) shall 
not be eligible for a reward under this section.
    [(g) There are authorized to be appropriated, without 
fiscal year limitation, $5,000,000 for use in paying rewards 
under this section, up to $2,000,000 of which may be used for 
rewards for information described in subsection (b)(1). In 
addition to the amount authorized to be appropriated by the 
preceding sentence, there are authorized to be appropriated, 
without fiscal year limitation, $5,000,000 for ``Administration 
of Foreign Affairs'' for use in paying rewards for information 
described in subsection (b)(1). Additional funds to pay rewards 
under this section shall be authorized to be appropriated in 
the annual authorizing legislation for the Department of State.
    [(h) Not later than 30 days after paying any reward under 
this section, the Secretary of State shall submit a report to 
the Congress with respect to that reward. The report, which may 
be submitted on a classified basis if necessary, shall specify 
the amount of the reward paid, to whom the reward was paid, and 
the acts with respect to which the reward was paid, and shall 
discuss the significance of the information for which the 
reward was paid in dealing with those acts.
    [(i) As used in this section--
            [(1) the term ``United States drug laws'' means the 
        laws of the United States for the prevention and 
        control of illicit traffic in controlled substances (as 
        such term is defined for purposes of the Controlled 
        Substances Act); and
            [(2) the term ``member of the immediate family'' 
        includes--
                    [(A) a spouse, parent, brother, sister, or 
                child of the individual;
                    [(B) a person to whom the individual stands 
                in loco parentis; and
                    [(C) any other person living in the 
                individual's household and related to the 
                individual by blood or marriage.]

SEC. 36. DEPARTMENT OF STATE REWARDS PROGRAM.

    (a) Establishment.--(1) There is established a program for 
the payment of rewards to carry out the purposes of this 
section.
    (2) The rewards program established by this section shall 
be administered by the Secretary of State, in consultation, 
where appropriate, with the Attorney General.
    (b) Purpose.--(1) The rewards program established by this 
section shall be designed to assist in the prevention of acts 
of international terrorism, international narcotics 
trafficking, and other related criminal acts.
    (2) At the sole discretion of the Secretary of State and in 
consultation, as appropriate, with the Attorney General, the 
Secretary may pay a reward to any individual who furnishes 
information leading to--
            (A) the arrest or conviction in any country of any 
        individual for the commission of an act of 
        international terrorism against a United States person 
        or United States property;
            (B) the arrest or conviction in any country of any 
        individual conspiring or attempting to commit an act of 
        international terrorism against a United States person 
        or United States property;
            (C) the arrest or conviction in any country of any 
        individual for committing, primarily outside the 
        territorial jurisdiction of the United States, any 
        narcotics-related offense if that offense involves or 
        is a significant part of conduct that involves--
                    (i) a violation of United States narcotics 
                laws and which is such that the individual 
                would be a major violator of such laws; or
                    (ii) the killing or kidnapping of--
                            (I) any officer, employee, or 
                        contract employee of the United States 
                        Government while such individual is 
                        engaged in official duties, or on 
                        account of that individual's official 
                        duties, in connection with the 
                        enforcement of United States narcotics 
                        laws or the implementing of United 
                        States narcotics control objectives; or
                            (II) a member of the immediate 
                        family of any such individual on 
                        account of that individual's official 
                        duties, in connection with the 
                        enforcement of United States narcotics 
                        laws or the implementing of United 
                        States narcotics control objectives; or
                    (iii) an attempt or conspiracy to commit 
                any of the acts described in clause (i) or 
                (ii); or
            (D) the arrest or conviction in any country of any 
        individual aiding or abetting in the commission of an 
        act described in subparagraphs (A) through (C); or
            (E) the prevention, frustration, or favorable 
        resolution of an act described in subparagraphs (A) 
        through (C).
    (c) Coordination.--(1) To ensure that the payment of 
rewards pursuant to this section does not duplicate or 
interfere with the payment of informants or the obtaining of 
evidence or information, as authorized to the Department of 
Justice, the offering, administration, and payment of rewards 
under this section, including procedures for--
            (A) identifying individuals, organizations, and 
        offenses with respect to which rewards will be offered;
            (B) the publication of rewards;
            (C) offering of joint rewards with foreign 
        governments;
            (D) the receipt and analysis of data; and
            (E) the payment and approval of payment,
shall be governed by procedures developed by the Secretary of 
State, in consultation with the Attorney General.
    (2) Before making a reward under this section in a matter 
over which there is Federal criminal jurisdiction, the 
Secretary of State shall advise and consult with the Attorney 
General.
    (d) Funding.--(1) There is authorized to be appropriated to 
the Department of State from time to time such amounts as may 
be necessary to carry out the purposes of this section, 
notwithstanding section 102 of the Foreign Relations 
Authorization Act, Fiscal Years 1986 and 1987 (Public Law 99-
93).
    (2) No amount of funds may be appropriated which, when 
added to the amounts previously appropriated but not yet 
obligated, would cause such amounts to exceed $15,000,000.
    (3) To the maximum extent practicable, funds made available 
to carry out this section should be distributed equally for the 
purpose of preventing acts of international terrorism and for 
the purpose of preventing international narcotics trafficking.
    (4) Amounts appropriated to carry out the purposes of this 
section shall remain available until expended.
    (e) Limitation and Certification.--(1) A reward under this 
section may not exceed $2,000,000.
    (2) A reward under this section of more than $100,000 may 
not be made without the approval of the President or the 
Secretary of State.
    (3) Any reward granted under this section shall be approved 
and certified for payment by the Secretary of State.
    (4) The authority of paragraph (2) may not be delegated to 
any other officer or employee of the United States Government.
    (5) If the Secretary determines that the identity of the 
recipient of a reward or of the members of the recipient's 
immediate family must be protected, the Secretary may take such 
measures in connection with the payment of the reward as he 
considers necessary to effect such protection.
    (f) Ineligibility.--An officer or employee of any 
governmental entity who, while in the performance of his or her 
official duties, furnishes information described in subsection 
(b) shall not be eligible for a reward under this section.
    (g) Reports.--(1) Not later than 30 days after paying any 
reward under this section, the Secretary of State shall submit 
a report to the appropriate congressional committees with 
respect to such reward. The report, which may be submitted on a 
classified basis if necessary, shall specify the amount of the 
reward paid, to whom the reward was paid, and the acts with 
respect to which the reward was paid. The report shall also 
discuss the significance of the information for which the 
reward was paid in dealing with those acts.
    (2) Not later than 60 days after the end of each fiscal 
year, the Secretary of State shall submit an annual report to 
the appropriate congressional committees with respect to the 
operation of the rewards program authorized by this section. 
Such report shall provide information on the total amounts 
expended during such fiscal year to carry out the purposes of 
this section, including amounts spent to publicize the 
availability of rewards.
    (h) Publication Regarding Rewards Offered by Foreign 
Governments.--Notwithstanding any other provision of this 
section, at the sole discretion of the Secretary of State the 
resources of the rewards program authorized by this section, 
shall be available for the publication of rewards offered by 
foreign governments regarding acts of international terrorism 
which do not involve United States persons or property or a 
violation of the narcotics laws of the United States.
    (i) Definitions.--As used in this section--
            (1) the term ``appropriate congressional 
        committees'' means the Committee on International 
        Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate;
            (2) the term ``act of international terrorism'' 
        includes, but is not limited to--
                    (A) any act substantially contributing to 
                the acquisition of unsafeguarded special 
                nuclear material (as defined in section 830(8) 
                of the Nuclear Proliferation Prevention Act of 
                1994) or any nuclear explosive device (as 
                defined in section 830(4) of that Act) by an 
                individual, group, or non-nuclear weapon state 
                (as defined in section 830(5) of that Act); and
                    (B) any act, as determined by the Secretary 
                of State, which materially supports the conduct 
                of international terrorism, including the 
                counterfeiting of United States currency or the 
                illegal use of other monetary instruments by an 
                individual, group, or country supporting 
                international terrorism as determined for 
                purposes of section 6(j) of the Export 
                Administration Act of 1979;
            (3) the term ``United States narcotics laws'' means 
        the laws of the United States for the prevention and 
        control of illicit traffic in controlled substances (as 
        such term is defined for purposes of the Controlled 
        Substances Act); and
            (4) the term ``member of the immediate family'' 
        includes--
                    (A) a spouse, parent, brother, sister, or 
                child of the individual;
                    (B) a person to whom the individual stands 
                in loco parentis; and
                    (C) any other person living in the 
                individual's household and related to the 
                individual by blood or marriage.
    (j) Determinations of the Secretary.--A determination made 
by the Secretary of State under this section shall be final and 
conclusive and shall not be subject to judicial review.
          * * * * * * *

 expenses relating to participation in arbitrations of certain disputes

    Sec. 38. (a) * * *
          * * * * * * *
    (c) Procurement of Services.--The Secretary of State may 
use competitive procedures or procedures other than competitive 
procedures to procure the services of experts for use in 
preparing or prosecuting a proceeding before an international 
tribunal or a claim by or against a foreign government or other 
foreign entity, whether or not the expert is expected to 
testify, or to procure personal and other support services for 
such proceedings or claims. The Secretary need not provide any 
written justification for the use of procedures other than 
competitive procedures when procuring such services under this 
subsection and need not furnish for publication in the Commerce 
Business Daily or otherwise any notice of solicitation or 
synopsis with respect to such procurement.
          * * * * * * *

                defense trade controls registration fees

    Sec. 45. (a) Defense Trade Controls Registration Fees.--For 
each fiscal year, [$700,000 of the] all registration fees 
collected by the Office of Defense Trade Controls of the 
Department of State shall be credited to a Department of State 
account, to be available without fiscal year limitation. Fees 
credited to that account shall be available only for payment of 
expenses incurred for--
            (1) contract personnel to assist in the evaluation 
        of defense trade controls license applications, 
        reduction in processing time for license applications, 
        and improved monitoring of compliance with the terms of 
        licenses; [and]
            (2) the automation of defense trade control 
        [functions] functions, including compliance and 
        enforcement activities, and the processing of defense 
        trade control license applications, including the 
        development, procurement, and utilization of computer 
        equipment and related software[.]; and
            (3) the enhancement of defense trade export 
        compliance and enforcement activities to include 
        compliance audits of United States and foreign parties, 
        the conduct of administrative proceedings, end-use 
        monitoring of direct commercial arms sales and 
        transfer, and cooperation in criminal proceedings 
        related to defense trade export controls.
          * * * * * * *

SEC. 52. FEES FOR COMMERCIAL SERVICES.

    (a) * * *
    (b) Use of Fees.--Funds collected under the authority of 
subsection (a) shall be deposited as an offsetting collection 
to any Department of State appropriation to recover the costs 
of providing commercial services. Funds deposited under this 
subsection shall remain available for obligation until 
expended.

SEC. 53. FEES FOR USE OF THE NATIONAL FOREIGN AFFAIRS TRAINING CENTER.

    The Secretary is authorized to charge a fee for use of the 
National Foreign Affairs Training Center Facility of the 
Department of State. Funds collected under the authority of 
this section, including reimbursements, surcharges, and fees, 
shall be deposited as an offsetting collection to any 
Department of State appropriation to recover the costs of such 
use and shall remain available for obligation until expended.

SEC. 54. FEE FOR USE OF DIPLOMATIC RECEPTION ROOMS.

    The Secretary of State is authorized to charge a fee for 
use of the diplomatic reception rooms of the Department of 
State. Amounts collected under the authority of this section 
(including any reimbursements and surcharges) shall be 
deposited as an offsetting collection to any Department of 
State appropriation to recover the costs of such use and shall 
remain available for obligation until expended.
          * * * * * * *
                              ----------                              


                      FOREIGN SERVICE ACT OF 1980

          * * * * * * *

           TITLE I--THE FOREIGN SERVICE OF THE UNITED STATES

          * * * * * * *

                  Chapter 2--Management of the Service

          * * * * * * *
    Sec. 202. Other Agencies Utilizing the Foreign Service 
Personnel System.--(a)(1) The Director of the United States 
Information Agency and the [Director of the United States 
International Development Cooperation Agency] Administrator of 
the United States Agency for International Development may 
utilize the Foreign Service personnel system with respect to 
their respective agencies in accordance with this Act.
          * * * * * * *
    Sec. 209. Inspector General.--(a) * * *
          * * * * * * *
    (c)(1) * * *
          * * * * * * *
            (4) In the case of a formal interview where an 
        employee is the likely subject or target of an 
        Inspector General criminal investigation, the Inspector 
        General shall make all best efforts to provide the 
        employee with notice of the full range of his or her 
        rights, including the right to retain counsel and the 
        right to remain silent, as well as the identification 
        of those attending the interview.
            (5) In carrying out the duties and responsibilities 
        established under this section, the Inspector General 
        shall develop and provide to employees--
                    (A) information detailing their rights to 
                counsel; and
                    (B) guidelines describing in general terms 
                the policies and procedures of the Office of 
                Inspector General with respect to individuals 
                under investigation, other than matters exempt 
                from disclosure under other provisions of law.
          * * * * * * *
    Sec. 210. Board of the Foreign Service.--The President 
shall establish a Board of the Foreign Service to advise the 
Secretary of State on matters relating to the Service, 
including furtherance of the objectives of maximum 
compatibility among agencies authorized by law to utilize the 
Foreign Service personnel system and compatibility between the 
Foreign Service personnel system and the other personnel 
systems of the Government. The Board of the Foreign Service 
shall be chaired by an individual appointed by the President 
and shall include one or more representatives of the Department 
of State, the United States Information Agency, the [United 
States International Development Cooperation Agency] United 
States Agency for International Development, the Department of 
Agriculture, the Department of Commerce, the Department of 
Labor, the Office of Personnel Management, the Office of 
Management and Budget, the Equal Employment Opportunity 
Commission, and such other agencies as the President may 
designate.
          * * * * * * *

                   Chapter 6--Promotion and Retention

    Sec. 601. Promotions.--(a) * * *
          * * * * * * *
    (c)(1) * * *
          * * * * * * *
    [(4) Not later than March 1 of each year, the Secretary of 
State shall submit a report to the Speaker of the House of 
Representatives and to the Committee on Foreign Relations of 
the Senate which shall--
            [(A) describe the steps taken and planned in 
        furtherance of--
                    [(i) maximum compatibility among agencies 
                utilizing the Foreign Service personnel system, 
                as provided for in section 203, and
                    [(ii) the development of uniform policies 
                and procedures and consolidated personnel 
                functions, as provided for in section 204;
            [(B) specify the upper and lower limits planned by 
        each such agency for recruitment, advancement, and 
        retention of members of the Service, as provided for in 
        section 601(c)(2), including, with respect to each of 
        the relevant promotion competition groups, the 
        projected ranges of rates of appointment, promotion, 
        and attrition over each of the next 5 fiscal years, as 
        well as a comparison of such projections with the 
        projections for the preceding year and with actual 
        rates of appointment, promotion, and attrition, 
        including a full explanation of any deviations from 
        projections reported in the preceding year; and
            [(C) specify the numbers of members of the Service 
        who are assigned to positions classified under section 
        501 which are more than one grade higher or lower than 
        the personal rank of the member.]
          * * * * * * *
    Sec. 609. Retirement Benefits.--(a) A member of the 
Service--
            (1) who is retired under section 607(c)(2); or
            (2) who is retired under section 607(c)(1) or 
        608(b) or 611--
                    (A) after becoming eligible for voluntary 
                retirement under section 811, or any other 
                applicable provision of chapter 84 of title 5, 
                United States Code, or
shall receive retirement benefits in accordance with section 
806 or section 855, as appropriate.
    (b) Any member of the Service (other than a member to whom 
subsection (a) applies) who is retired under section 607(c)(1) 
or 608(b) or 611 shall receive--
            (1) * * *
            (2)(A) for those participants in the Foreign 
        Service Retirement and Disability System, a refund as 
        provided in section 815 of the contributions made by 
        the members to the Foreign Service Retirement and 
        Disability Fund, except that in lieu of such refund a 
        member who has at least 5 years of service credit 
        toward retirement under the Foreign Service Retirement 
        and Disability System (excluding military and naval 
        service) may elect to receive an annuity, computed 
        under section 806, commencing at age 60; and (B) for 
        those participants in the Foreign Service Pension 
        System, benefits as provided in section 851.
In the event that a member of the Service has elected to 
receive retirement benefits under paragraph (2) and dies before 
reaching age 60 (for participants in the Foreign Service 
Retirement and Disability System) or age 62 (for participants 
in the Foreign Service Pension System), his or her death shall 
be considered a death in service within the meaning of section 
809.
          * * * * * * *
    Sec. 610. Separation for Cause.--(a)(1) * * *
    (2) [A member] Except in the case of an individual who has 
been convicted of a crime for which a sentence of imprisonment 
of more than 1 year may be imposed, a member of the Service 
(other than a United States citizen employed under section 311 
who is not a family member) who is a member of the Senior 
Foreign Service or is assigned to a salary class in the Foreign 
Service Schedule and who either (A) is serving under a career 
appointment, or (B) if separation is to be by reason of 
misconduct, is serving under a limited appointment, shall not 
be separated from the Service under this section until the 
member has been granted a hearing before the Foreign Service 
Grievance Board and the cause for separation established at 
such hearing, unless the member waives in writing the right to 
a hearing or, notwithstanding section 1106(8) of this Act, 
unless the member has been convicted of a crime related to the 
cause for separation, subject to reinstatement with back pay 
(for any period during which separation for cause had not been 
established by such a hearing) if such conviction is reversed 
on appeal. If such cause is not established at such hearing, 
the Grievance Board shall have the authority to direct the 
Department to pay reasonable attorneys fees to the extent and 
in the manner provided by section 1107(b)(5) of this Act. The 
hearing provided under this paragraph shall be in accordance 
with the hearing procedures applicable to grievances under 
section 1106 and shall be in lieu of any other administrative 
procedure authorized or required by this or any other law. 
Section 1110 shall apply to proceedings under this paragraph.
          * * * * * * *

        Chapter 7--Career Development, Training, and Orientation

    Sec. 701. Institution for Training.--(a) * * *
          * * * * * * *
    (d)(1) * * *
          * * * * * * *
    [(4) The authorities of section 704 shall apply to training 
and instruction provided under this section.]
    (e)(1) The Secretary of State may, in the discretion of the 
Secretary, provide appropriate training and related services 
through the institution to employees of United States companies 
engaged in business abroad, and to the families of such 
employees.
    (2) In the case of any company under contract to provide 
services to the Department of State, the Secretary of State is 
authorized to provide job-related training and related services 
to any company employee who is performing such services.
    (3) Training under this subsection shall be on a 
reimbursable or advance-of-funds basis. Such reimbursements or 
advances shall be credited to the currently available 
applicable appropriation account.
    (4) Training and related services under this subsection is 
authorized only to the extent that it will not interfere with 
the institution's primary mission of training employees of the 
Department and of other agencies in the field of foreign 
relations.
    (f)(1) The Secretary of State is authorized to provide on a 
reimbursable basis training programs to Members of Congress or 
the judiciary.
    (2) Congressional staff members and employees of the 
judiciary may participate on a reimbursable, space-available 
basis in training programs offered by the institution.
    (3) Reimbursements collected under this subsection shall be 
credited to the currently available applicable appropriation 
account.
    (4) Training under this subsection is authorized only to 
the extent that it will not interfere with the institution's 
primary mission of training employees of the Department of 
State and of other agencies in the field of foreign relations.
    (g) The authorities of section 704 shall apply to training 
and instruction provided under this section.
          * * * * * * *
    Sec. 706. Career Counseling.--(a) In order to facilitate 
their transition from the Service, the Secretary may provide 
(by contract or otherwise, subject to the availability of 
appropriations) professional career counseling, advice, and 
placement assistance to members of the Service, and to former 
members of the Service who were assigned to receive counseling 
and assistance under this subsection before they were separated 
from the Service, other than those separated for cause. Career 
counseling and related services provided pursuant to this Act 
shall not be construed to permit an assignment to training or 
to another assignment that consists primarily of paid time to 
conduct a job search and without other substantive duties, 
except that career members of the Service who upon their 
separation are not eligible to receive an immediate annuity and 
have not been assigned to a post in the United States during 
the 12 months prior to their separation from the Service may be 
permitted up to 2 months of paid time to conduct a job search.
          * * * * * * *

          Chapter 8--Foreign Service Retirement and Disability

          * * * * * * *

             subchapter ii--foreign service pension system

          * * * * * * *
    Sec. 855. Entitlement to Annuity.--(a) * * *
    (b)(1) Any participant who retires voluntarily or 
mandatorily under section 607, 608, 611, 811, 812, or 813 under 
conditions authorizing an immediate annuity for participants in 
the Foreign Service Retirement and Disability System and for 
participants in the Foreign Service Pension System and who has 
completed at least 5 years as a member of the Foreign Service 
shall be entitled to an immediate annuity computed under 
paragraph (2).
          * * * * * * *
    (3) any participant who is involuntarily retired or 
separated under section 607, 608, [or 610] 610, or 611 and who 
would if a participant under subchapter I, become eligible for 
a refund of contributions or a deferred annuity under 
subchapter I, shall, in lieu thereof, receive benefits for an 
involuntary separation under this subchapter.
          * * * * * * *

              Chapter 9--Travel, Leave, and Other Benefits

          * * * * * * *
    Sec. 904. Health Care.--(a) The Secretary of State shall 
establish a health care program to promote and maintain the 
physical and mental health of members of the Service, and (when 
incident to service abroad) other designated eligible 
Government employees, [and] members of the families of such 
members and employees, and (for care provided abroad) such 
other persons as are designated by the Secretary of State.
          * * * * * * *
    (d) If an individual eligible for health care under this 
section incurs an illness, injury, or medical condition which 
requires treatment while assigned to a post abroad located 
overseas pursuant to Government authorization, subject to 
subsections (g) through (i) the Secretary may pay the cost of 
such treatment.
          * * * * * * *
    (g)(1)(A) In the case of a covered beneficiary who is 
provided health care under this section and who is enrolled in 
a covered health benefits plan of a third-party payer, the 
United States shall have the right to collect from the third-
party payer a reasonable charge amount for the care to the 
extent that the payment would be made under such plan for such 
care under the conditions specified in paragraph (2) if a claim 
were submitted by or on behalf of the covered beneficiary.
    (B) Such a covered beneficiary is not required to pay any 
deductible, copayment, or other cost-sharing under the covered 
health benefits plan or under this section for health care 
provided under this section.
    (2) With respect to health care provided under this section 
to a covered beneficiary, for purposes of carrying out 
paragraph (1)--
            (A) the reasonable charge amount (as defined in 
        paragraph (9)(C)) shall be treated by the third-party 
        payer as the payment basis otherwise allowable for the 
        care under the plan;
            (B) under regulations, if the covered health 
        benefits plan restricts or differentiates in benefit 
        payments based on whether a provider of health care has 
        a participation agreement with the third-party payer, 
        the Secretary shall be treated as having such an 
        agreement as results in the highest level of payment 
        under this subsection;
            (C) no provision of the health benefit plan having 
        the effect of excluding from coverage or limiting 
        payment of charges for certain care shall operate to 
        prevent collection under subsection (a), including (but 
        not limited to) any provision that limits coverage or 
        payment on the basis that--
                    (i) the care was provided outside the 
                United States,
                    (ii) the care was provided by a 
                governmental entity,
                    (iii) the covered beneficiary (or any other 
                person) has no obligation to pay for the care,
                    (iv) the provider of the care is not 
                licensed to provide the care in the United 
                States or other location,
                    (v) a condition of coverage relating to 
                utilization review, prior authorization, or 
                similar utilization control has not been met, 
                or
                    (vi) in the case that drugs were provided, 
                the provision of the drugs for any indicated 
                purpose has not been approved by the Federal 
                Food, Drug, and Cosmetic Administration;
            (D) if the covered health benefits plan contains a 
        requirement for payment of a deductible, copayment, or 
        similar cost-sharing by the beneficiary--
                    (i) the beneficiary's not having paid such 
                cost-sharing with respect to the care shall not 
                preclude collection under this section, and
                    (ii) the amount the United States may 
                collect under this section shall be reduced by 
                application of the appropriate cost-sharing;
            (E) amounts that would be payable by the third-
        party payer under this section but for the application 
        of a deductible under subparagraph (D)(ii) shall be 
        counted towards such deductible notwithstanding that 
        under paragraph (1)(B) the individual is not charged 
        for the care and did not pay an amount towards such 
        care; and
            (F) the Secretary may apply such other provisions 
        as may be appropriate to carry out this section in an 
        equitable manner.
    (3) In exercising authority under paragraph (1)--
            (A) the United States shall be subrogated to any 
        right or claim that the covered beneficiary may have 
        against a third-party payer;
            (B) the United States may institute and prosecute 
        legal proceedings against a third-party payer to 
        enforce a right of the United States under this 
        section; and
            (C) the Secretary may compromise, settle, or waive 
        a claim of the United States under this section.
    (4) No law of any State, or of any political subdivision of 
a State, shall operate to prevent or hinder collection by the 
United States under this section.
    (5) If collection is sought from a third-party payer for 
health care furnished a covered beneficiary under this section, 
under regulations medical records of the beneficiary shall be 
made available for inspection and review by representatives of 
the third-party payer for the sole purpose of permitting the 
third-party payer to verify, consistent with this subsection 
that--
            (A) the care for which recovery or collection is 
        sought were furnished to the beneficiary; and
            (B) except as otherwise provided in this 
        subsection, the provision of such care to the 
        beneficiary meets criteria generally applicable under 
        the covered health benefits plan.
    (6) The Secretary shall establish (and periodically update) 
a schedule of reasonable charge amounts for health care 
provided under this section. The amount under such schedule for 
health care shall be based on charges or fee schedule amounts 
recognized by third-party payers under covered health benefits 
plans for payment purposes for similar health care services 
furnished in the Metropolitan Washington, District of Columbia, 
area.
    (7) The Secretary shall establish a procedure under which a 
covered beneficiary may elect to have subsection (h) apply 
instead of this subsection with respect to some or all health 
care provided to the beneficiary under this section.
    (8) Amounts collected under this subsection, under 
subsection (h), or under any authority referred to in 
subsection (i), from a third-party payer or from any other 
payer shall be deposited as an offsetting collection to any 
Department of State appropriation and shall remain available 
until expended.
    (9) For purposes of this section:
            (A) The term ``covered beneficiary'' means a member 
        or employee (or family member of such a member of 
        employee) described in subsection (a) who is enrolled 
        under a covered health benefits plan.
            (B)(i) Subject to clause (ii), the term ``covered 
        health benefits plan'' means a health benefits plan 
        offered under the Federal Employees Health Benefits 
        Program under chapter 89 of title 5, United States 
        Code.
            (ii) Such term does not include such a health 
        benefits plan (such as a plan of a staff-model health 
        maintenance organization) as the Secretary determines 
        pursuant to regulations to be structured in a manner 
        that impedes the application of this subsection to 
        individuals enrolled under the plan. To the extent 
        practicable, the Secretary shall seek to disseminate to 
        members of the Service and designated employees 
        described in subsection (a) who are eligible to receive 
        health care under this section the names of plans 
        excluded under this clause.
            (C) The term ``reasonable charge amount'' means, 
        with respect to health care provided under this 
        section, the amount for such care specified in the 
        schedule established under paragraph (6).
            (D) The term ``third-party payer'' means an entity 
        that offers a covered health benefits plan.
    (h)(1) In the case of an individual who--
            (A) receives health care pursuant to this section; 
        and
            (B)(i) is not a covered beneficiary (including by 
        virtue of enrollment only in a health benefits plan 
        excluded under subsection (g)(9)(B)(ii)), or
            (ii) is such a covered beneficiary and has made an 
        election described in subsection (g)(7) with respect to 
        such care,
the Secretary is authorized to collect from the individual the 
full reasonable charge amount for such care.
    (2) The United States shall have the same rights against 
such individuals with respect to collection of such amounts as 
the United States has with respect to collection of amounts 
against a third-party payer under subsection (g), except that 
the rights under this subsection shall be exercised without 
regard to any rules for deductibles, coinsurance, or other 
cost-sharing.
    (i) Subsections (g) and (h) shall apply to reimbursement 
for the cost of hospitalization and related outpatient expenses 
paid for under subsection (d) only to the extent provided in 
regulations. Nothing in this subsection, or subsections (g) and 
(h), shall be construed as limiting any authority the Secretary 
otherwise has with respect to obtaining reimbursement for the 
payments made under subsection (d).
          * * * * * * *

                 Chapter 10--Labor-Management Relations

          * * * * * * *
    Sec. 1003. Application.--(a) This chapter applies only with 
respect to the Department of State, the United States 
Information Agency, the [United States International 
Development Cooperation Agency] United States Agency for 
International Development, the Department of Agriculture, and 
the Department of Commerce.
          * * * * * * *
    Sec. 1017. Standards of Conduct for Labor Organizations.--
(a) * * *
          * * * * * * *
    (e)(1) Notwithstanding any other provision of this 
chapter--
    [(2) For the purposes of paragraph (1)(A)(ii) and paragraph 
(1)(B), the term ``management official'' shall not include 
chiefs of mission, principal officers and their deputies, and 
administrative and personnel officers abroad.]
    (2) For the purposes of paragraph (1)(A)(ii) and paragraph 
(1)(B), the term ``management official'' does not include 
chiefs of mission, principal officers or their deputies, 
administrative and personnel officers abroad, or individuals 
described in section 1002(12)(B), (C), and (D) who are not 
involved in the administration of this chapter or in the 
formulation of the personnel policies and programs of the 
Department.
          * * * * * * *

                         Chapter 11--Grievances

    Sec. 1101. Definition of Grievance.--(a) * * *
          * * * * * * *
    (c) This chapter applies only with respect to the 
Department of State, the United States Information Agency, the 
[United States International Development Cooperation Agency] 
United States Agency for International Development, the 
Department of Agriculture, and the Department of Commerce.
          * * * * * * *
                              ----------                              


                     INTERNAL REVENUE CODE OF 1986

                        Subtitle A--Income Taxes

          * * * * * * *

                  CHAPTER 1--NORMAL TAXES AND SURTAXES

          * * * * * * *

              Subchapter B--Computation of Taxable Income

          * * * * * * *

             PART VII--ITEMIZED DEDUCTIONS FOR INDIVIDUALS

          * * * * * * *

SEC. 170. CHARITABLE, ETC., CONTRIBUTIONS AND GIFTS.

    (a) * * *
          * * * * * * *
    (m) Other cross references.--
            (1) * * *
          * * * * * * *
            (7) For treatment of gifts accepted by the 
        Secretary of State, the Director of the International 
        Communication Agency, or the [Director of the United 
        States International Development Cooperation Agency] 
        Administrator of the United States Agency for 
        International Development, as gifts to or for the use 
        of the United States, see section 25 of the State 
        Department Basic Authorities Act of 1956.
          * * * * * * *

                   Subtitle B--Estate and Gift Taxes

          * * * * * * *

                        CHAPTER 11--ESTATE TAXES

          * * * * * * *

             Subchapter A--Estate of Citizens or Residents

          * * * * * * *

                        PART IV--TAXABLE INCOME

          * * * * * * *

SEC. 2055. TRANSFERS FOR PUBLIC, CHARITABLE, AND RELIGIOUS USES.

    (a) * * *
          * * * * * * *
    (g) Cross references.--
            (1) * * *
     * * * * * * *
            (6) For treatment of gifts, devises, or bequests accepted by 
        the Secretary of State, the Director of the International 
        Communication Agency, or the [Director of the United States 
        International Development Cooperation Agency] Administrator of 
        the United States Agency for International Development as gifts, 
        devises, or bequests to or for the use of the United States, see 
        section 25 of the State Department Basic Authorities Act of 
        1956.
          * * * * * * *
                              ----------                              


                      TITLE 49, UNITED STATES CODE

          * * * * * * *

                    SUBTITLE VII--AVIATION PROGRAMS

          * * * * * * *

                    PART A--AIR COMMERCE AND SAFETY

                           SUBPART I--GENERAL

                    CHAPTER 401--GENERAL PROVISIONS

          * * * * * * *

Sec. 40118. Government-financed air transportation

    (a) * * *
          * * * * * * *
    (d) Certain Transportation by Air Outside the United 
States.--Notwithstanding subsections (a) and (c) of this 
section, any amount appropriated to the Secretary of State, the 
Director of the United States Information Agency, the Director 
of the [United States International Development Cooperation 
Agency] Administrator of the United States Agency for 
International Development, or the Director of the Arms Control 
and Disarmament Agency may be used to pay for the 
transportation of an officer or employee of the Department of 
State or one of those agencies, a dependent of the officer or 
employee, and accompanying baggage, by a foreign air carrier 
when the transportation is between 2 places outside the United 
States.
          * * * * * * *

                         CHAPTER 449--SECURITY

          * * * * * * *

Sec. 44908. Travel advisory and suspension of foreign assistance

    (a) Travel Advisories.--On being notified by the Secretary 
of Transportation that the Secretary of Transportation has 
decided under section 44907(d)(2)(A)(ii) of this title that a 
condition exists that threatens the safety or security of 
passengers, aircraft, or crew traveling to or from a foreign 
airport that the Secretary of Transportation has decided under 
section 44907 of this title does not maintain and carry out 
effective security measures, the Secretary of State--
            (1) immediately shall issue a travel advisory for 
        that airport;
            [(2) shall publish the advisory in the Federal 
        Register; and]
            [(3)] (2) shall publicize the advisory widely.
          * * * * * * *
                              ----------                              


           SECTION 6 OF THE EXPORT ADMINISTRATION ACT OF 1979

                        foreign policy controls

    Sec. 6. (a) * * *
          * * * * * * *
    (g) Exclusion for Medicine and Medical Supplies and for 
Certain Food Exports.--This section does not authorize export 
controls on medicine or medical supplies. This section also 
does not authorize export controls on donations of goods 
(including, but not limited to, food, educational materials, 
seeds and hand tools, medicines and medical supplies, water 
resources equipment, clothing and shelter materials, and basic 
household supplies) that are intended to meet basic human 
needs. Before export controls on food are imposed, expanded, or 
extended under this section, the Secretary shall notify the 
Secretary of State in the case of export controls applicable 
with respect to any developed country and shall notify the 
[Director of the United States International Development 
Cooperation Agency] Administrator of the United States Agency 
for International Development in the case of export controls 
applicable with respect to any developing country. The 
Secretary of State with respect to developed countries, and the 
[Director] Administrator with respect to developing countries, 
shall determine whether the proposed export control on food 
would cause measurable malnutrition and shall inform the 
Secretary of that determination. If the Secretary is informed 
that the proposed export controls on food would cause 
measurable malnutrition, then those controls may not be 
imposed, expanded, or extended, as the case may be, unless the 
President determines that those controls are necessary to 
protect the national security interest of the United States, or 
unless the President determines that arrangements are 
insufficient to ensure that the food will reach those most in 
need. Each such determination by the Secretary of State or the 
[Director of the United States International Development 
Cooperation Agency] Administrator of the United States Agency 
for International Development, and any such determination by 
the President, shall be reported to the Congress, together with 
a statement of the reasons for that determination. It is the 
intent of Congress that the President not impose export 
controls under this section on any goods or technology if he 
determines that the principal effect of the export of such 
goods or technology would be to help meet basic human needs. 
The subsection shall not be construed to prohibit the President 
from imposing restrictions on the export of medicine or medical 
supplies or of food under the International Emergency Economic 
Powers Act. This subsection shall not apply to any export 
control on medicine, medical supplies, or food, except for 
donations, which is in effect on the date of the enactment of 
the Export Administration Amendments Act of 1985. 
Notwithstanding the proceding provisions of this subsection, 
the President may impose export controls under this section on 
medicine, medical supplies, food, and donations of goods in 
order to carry out the policy set forth in paragraph (13) of 
section 3 of this Act.
          * * * * * * *
                              ----------                              


                     FOREIGN ASSISTANCE ACT OF 1961

                                 PART I

       Chapter 1--Policy; Development Assistance Authorizations 

          * * * * * * *
    Sec. 104. Population and Health.--(a) * * *
          * * * * * * *
    [(c) Assistance for Health and Disease Prevention.--(1) In 
order to contribute to improvements in the health of the 
greatest number of poor people in developing countries, the 
President is authorized to furnish assistance, on such terms 
and conditions as he may determine, for health programs. 
Assistance under this subsection shall be used primarily for 
basic integrated health services, safe water and sanitation, 
disease prevention and control, and related health planning and 
research. The assistance shall emphasize self-sustaining 
community-based health programs by means such as training of 
health auxiliary and other appropriate personnel, support for 
the establishment and evaluation of projects that can be 
replicated on a broader scale, measures to improve management 
of health programs, and other services and suppliers to support 
health and disease prevention programs.
    [(2)(A) In carrying out the purposes of this subsection, 
the President shall promote, encourage, and undertake 
activities designed to deal directly with the special health 
needs of children and mothers. Such activities should utilize 
simple, available technologies which can significantly reduce 
childhood mortality, such as improved and expanded immunization 
programs, oral rehydration to combat diarrhoeal diseases, and 
education programs aimed at improving nutrition and sanitation 
and at promoting child spacing. In carrying out this paragraph, 
guidance shall be sought from knowledgeable health 
professionals from outside the agency primarily responsible for 
administering this part. In addition to government-to-
government programs, activities pursuant to this paragraph 
should include support for appropriate activities of the types 
described in this paragraph which are carried out by 
international organizations (which may include international 
organizations receiving funds under chapter 3 of this part) and 
by private and voluntary organizations, and should include 
encouragement to other donors to support such types of 
activities.
    [(B) In addition to amounts otherwise available for such 
purpose, there are authorized to be appropriated to the 
President $25,000,000 for fiscal year 1986 and $75,000,000 for 
fiscal year 1987 for use in carrying out this paragraph. 
Amounts appropriated under this subparagraph are authorized to 
remain available until expended.
    [(C) Appropriations pursuant to subparagraph (B) may be 
referred to as the ``Child Survival Fund.''
    [(3) The Congress recognizes that the promotion of primary 
health care is a major objective of the foreign assistance 
program. The Congress further recognizes that simple, 
relatively low-cost means already exist to reduce incidence of 
communicable diseases among children, mothers, and infants. The 
promotion of vaccines for immunization, and salts for oral 
rehydration, therefore, is an essential feature of the health 
assistance program. To this end, the Congress expects the 
agency primarily responsible for administering this part to set 
as a goal the protection of not less than 80 percent of all 
children, in those countries in which such agency has 
established development programs, from immunizable diseases by 
January 1, 1991. Of the aggregate amounts made available for 
fiscal year 1987 to carry out paragraph (2) of this subsection 
(relating to the Child Survival Fund) and to carry out 
subsection (c) (relating to development assistance for health), 
$50,000,000 shall be used to carry out this paragraph.]
    (c) Assistance for Child Survival, Health, Basic Education 
for Children, and Disease Prevention.--
            (1) Authority.--The President is authorized to 
        furnish assistance, on such terms and conditions as he 
        may determine, for child survival and health programs, 
        including programs that address the special health and 
        nutrition needs of children and mothers, and basic 
        education programs for children. Assistance under this 
        subsection may be used for the following:
                    (A) Activities whose primary purpose is to 
                reduce child morbidity and child mortality and 
                which have a substantial, direct, and 
                measurable impact on child morbidity and child 
                mortality, such as--
                            (i) immunization;
                            (ii) oral rehydration;
                            (iii) activities relating to 
                        Vitamin A deficiency, iodine 
                        deficiency, and other micronutrients;
                            (iv) programs designed to reduce 
                        child malnutrition;
                            (v) programs to prevent and treat 
                        acute respiratory infections;
                            (vi) programs for the prevention, 
                        treatment, and control of, and research 
                        on, polio, malaria and other diseases 
                        primarily affecting children; and
                            (vii) programs whose primary 
                        purpose is to prevent neonatal 
                        mortality.
                    (B) Other child survival activities such 
                as--
                            (i) basic integrated health 
                        services;
                            (ii) assistance for displaced and 
                        orphaned children;
                            (iii) safe water and sanitation;
                            (iv) health programs, and related 
                        education programs, which primarily 
                        address the needs of mothers and 
                        children; and
                            (v) related health planning and 
                        research.
                    (C) Basic education programs for mothers 
                and children.
                    (D) Other disease activities such as 
                programs for the prevention, treatment and 
                control of, and research on, tuberculosis, HIV/
                AIDS, and other diseases.
            (2) Priority.--Child survival activities 
        administered by the United States Agency for 
        International Development under this subsection shall 
        be primarily devoted to activities of the type 
        described in paragraph (1)(A).
            (3) Application of other authorities.--Funds made 
        available to carry out this subsection that are 
        provided for countries receiving assistance under 
        chapters 10 and 11 of part I of this Act or the Support 
        for East European Democracy (SEED) Act of 1989, may be 
        made available--
                    (A) only for the activities described in of 
                paragraph (1); and
                    (B) except to the extent inconsistent with 
                subparagraph (A), pursuant to the authorities 
                otherwise applicable to the provision of 
                assistance for such countries.
            (4) International organizations.--Funds made 
        available to carry out this subsection may be used to 
        make contributions on a grant basis to the United 
        Nations Children's Fund (UNICEF) pursuant to section 
        301 of this Act.
            (5) PVO/child survival grants program.--Of amounts 
        made available to carry out this subsection for a 
        fiscal year, not less than $30,000,000 should be 
        provided to the private and voluntary organizations 
        under the PVO/Child Survival grants program carried out 
        by the United States Agency for International 
        Development.
            (6) Report.--The Administrator of the United States 
        Agency for International Development shall report to 
        Congress, as part of the congressional presentation 
        document required under section 634 of this Act, the 
        total amounts to be provided for activities under each 
        subparagraph of paragraph (1).
            (7) Authorization of appropriations.--(A) In 
        addition to amounts otherwise available for such 
        purposes, and in addition to amounts made available 
        under section 107, there are authorized to be 
        appropriated to the President $600,000,000 for each of 
        the fiscal years 1998 and 1999 for use in carrying out 
        this subsection.
            (B) Amounts appropriated under this paragraph are 
        authorized to remain available until expended.
            (8) Designation of fund.--Appropriations pursuant 
        to this subsection may be referred to as the ``Child 
        Survival and Disease Programs Fund''.
          * * * * * * *

SEC. 107. DEVELOPMENT ASSISTANCE FUND.

    (a) Authorization of Appropriations.--There are authorized 
to be appropriated to the President to carry out sections 103 
through 106, in addition to amounts otherwise available for 
such purposes, $1,203,000,000 for each of the fiscal years 1998 
and 1999.
    (b) Additional Use of Amounts.--Of the amounts authorized 
to be appropriated under subsection (a)--
            (1) the President may use such amounts as he deems 
        appropriate to carry out the provisions of section 316 
        of the International Security and Development 
        Cooperation Act of 1980;
            (2) $2,500,000 for fiscal year 1998 and $4,000,000 
        for fiscal year 1999 may be made available to carry out 
        section 510 of the International Security and 
        Development Cooperation Act of 1980 (relating to the 
        African Development Foundation) (such amounts are in 
        addition to amounts otherwise made available to carry 
        out section 510 of such Act); and
            (3) $2,000,000 for fiscal year 1998 and $7,000,000 
        for fiscal year 1999 may be made available to carry out 
        section 401 of the Foreign Assistance Act of 1969 
        (relating to the Inter-American Foundation) (such 
        amounts are in addition to amounts otherwise made 
        available to carry out section 401 of such Act).
    (c) Availability.--The amounts authorized to be 
appropriated under subsection (a) are authorized to remain 
available until expended.

SEC. 107A. DEVELOPMENT CREDIT AUTHORITY.

    (a) General Authority.--The President is authorized to use 
credit authority (loans, loan guarantees, and other investments 
involving the extension of credit) to achieve any of the 
development purposes of this part in cases where--
            (1) the borrowers or activities are deemed 
        sufficiently creditworthy and do not otherwise have 
        access to such credit; and
            (2) the use of credit authority would be 
        appropriate to the achievement of such development 
        purposes.
    (b) Priority Sector Policies and Activities.--
            (1) In general.--To the maximum extent practicable, 
        preference shall be given to the use of credit 
        authority to promote--
                    (A) micro- and small enterprise development 
                policies of section 108;
                    (B) sustainable urban and environmental 
                activities pursuant to the policy directives 
                set forth in this part; and
                    (C) other development activities that will 
                support and enhance grant-financed policy and 
                institutional reforms under this part.
            (2) Development credit authority.--The credit 
        authority described in paragraph (1) shall be known as 
        the ``Development Credit Authority''.
    (c) General Authority.--
            (1) Authority.--Of the amounts made available to 
        carry out this chapter, chapters 10 and 11 of this 
        part, chapter 4 of part II of this Act, and the Support 
        for East European Democracy (SEED) Act of 1989 for 
        fiscal years 1998 and 1999, not more than $13,000,000 
        for each such fiscal year may be made available to 
        carry out this section.
            (2) Limitations.--(A) Funds made available under 
        paragraph (1) shall be used for activities in the same 
        geographic region for which such funds were originally 
        allocated.
            (B) The President shall notify the congressional 
        committees specified in section 634A at least fifteen 
        days in advance of each transfer of funds under 
        paragraph (1) in accordance with procedures applicable 
        to reprogramming notifications under such section.
            (3) Subsidy cost.--Amounts made available under 
        paragraph (1) shall be made available for the subsidy 
        cost, as defined in section 502(5) of the Federal 
        Credit Reform Act of 1990, for activities under this 
        section.
            (4) Administrative expenses.--
                    (A) Amounts made available.--Of the amounts 
                made available under paragraph (1) for a fiscal 
                year, not more than $1,500,000 may be made 
                available for administrative expenses to carry 
                out this section.
                    (B) Authorization of appropriations.--In 
                addition to amounts made available under 
                subparagraph (A), there are authorized to be 
                appropriated for administrative expenses to 
                carry out this section and section 221 
                $6,000,000 for each of the fiscal years 1998 
                and 1999.
                    (C) Transfer authority.--Amounts made 
                available under and subparagraph (A) and 
                amounts authorized to be appropriated under 
                subparagraph (B) may be transferred and merged 
                with amounts made available for ``Operating 
                Expenses of the Agency for International 
                Development''.
            (5) Availability.--Amounts made available under 
        paragraph (1) are authorized to remain available until 
        expended.
    (d) General Provisions Applicable to Development Credit 
Authority.--
            (1) Policy provisions.--In providing the credit 
        assistance authorized by this section, the President 
        should apply, as appropriate, the policy provisions in 
        this part applicable to development assistance 
        activities.
            (2) Default and procurement provisions.--
                    (A) Default provision.--The provisions of 
                section 620(q) of this Act, or any comparable 
                provisions of law, shall not be construed to 
                prohibit assistance to a country in the event 
                that a private sector recipient of assistance 
                furnished under this section is in default in 
                its payment to the United States for the period 
                specified in such section.
                    (B) Procurement provision.--Assistance may 
                be provided under this section without regard 
                to section 604(a) of this Act.
            (3) Terms and conditions of credit assistance.--(A) 
        Assistance provided under this section shall be offered 
        on such terms and conditions, including fees charged, 
        as the President may determine.
            (B) The principal amount of loans made or 
        guaranteed under this section in any fiscal year, with 
        respect to any single country or borrower, may not 
        exceed $100,000,000.
            (C) No payment may be made under any guarantee 
        issued under this section for any loss arising out of 
        fraud or misrepresentation for which the party seeking 
        payment is responsible.
            (4) Full faith and credit.--All guarantees issued 
        under this section shall constitute obligations, in 
        accordance with the terms of such guarantees, of the 
        United States of America and the full faith and credit 
        of the United States of America is hereby pledged for 
        the full payment and performance of such obligations to 
        the extent of the guarantee.
            (5) Co-financing and risk sharing.--
                    (A) In general.--(i) Assistance provided 
                under this section shall be in the form of co-
                financing or risk sharing.
                    (ii) Credit assistance may not be provided 
                to a borrower under this section unless the 
                Administrator of the United States Agency for 
                International Development determines that there 
                are reasonable prospects of repayment by such 
                borrower.
                    (B) Additional requirement.--The investment 
                or risk of the United States in any one 
                development activity may not exceed 80 percent 
                of the total outstanding investment or risk.
            (6) Eligible borrowers.--
                    (A) In general.--In order to be eligible to 
                receive credit assistance under this section, a 
                borrower shall be sufficiently credit worthy so 
                that the estimated costs (as defined in section 
                502 of the Federal Credit Reform Act of 1990) 
                of the proposed credit assistance for the 
                borrower does not exceed 30 percent of the 
                principal amount of credit assistance to be 
                received.
                    (B) Additional requirement.--(i) In 
                addition, with respect to the eligibility of 
                foreign governments as an eligible borrowers 
                under this section, the Administrator of the 
                United States Agency for International 
                Development shall make a determination that the 
                additional debt of the government will not 
                exceed the debt repayment capacity of the 
                government.
                    (ii) In making the determination under 
                clause (i), the Administrator shall consult, as 
                appropriate, with international financial 
                institutions and other institutions or agencies 
                that assess debt service capacity.
            (7) Assessment of credit risk.--(A) The 
        Administrator of the United States Agency for 
        International Development shall use the Interagency 
        Country Risk Assessment System (ICRAS) and the 
        methodology approved by the Office of Management and 
        Budget to assess the cost of risk credit assistance 
        provided under this section to foreign governments.
            (B) With respect to the provision of credit to 
        nongovernmental organizations, the Administrator--
                    (i) shall consult with appropriate private 
                sector institutions, including the two largest 
                United States private sector debt rating 
                agencies, prior to establishing the risk 
                assessment standards and methodologies to be 
                used; and
                    (ii) shall periodically consult with such 
                institutions in reviewing the performance of 
                such standards and methodologies.
            (C) In addition, if the anticipated share of 
        financing attributable to public sector owned or 
        controlled entities, including the United States Agency 
        for International Development, exceeds 49 percent, the 
        Administrator shall determine the cost (as defined in 
        section 502(5) of the Federal Credit Reform Act of 
        1990) of such assistance by using the cost and risk 
        assessment determinations of the private sector co-
        financing entities.
            (8) Use of united states technology, firms, and 
        equipment.--Activities financed under this section 
        shall, to the maximum extent practicable, use or employ 
        United States technology, firms, and equipment.
          * * * * * * *
    [Sec. 108. Private Sector Revolving Fund.--(a) The Congress 
finds that the development of private enterprise, including 
cooperatives, is a vital factor in the stable growth of 
developing countries and in the development and stability of a 
free, open, and equitable international economic system. It is 
therefore in the best interests of the United States to assist 
the development of the private sector in developing countries 
and to engage the United States private sector in that process. 
In order to promote such private sector development, the 
President is authorized to establish a revolving fund account 
in the United States Treasury. All funds deposited in such 
account shall, notwithstanding any provision in an 
appropriation Act to the contrary, be free from fiscal year 
limitations.
    [(b) Of the funds made available under this chapter in each 
of the fiscal years 1986 and 1987, up to $18,000,000 may be 
deposited in this account. Such funds used in accordance with 
the policies and authorities of this section shall be in 
addition to other funds available for private sector activities 
under other authorities in this Act. Any reflows and income 
arising from activities carried out pursuant to this section, 
including loan repayments and fee income (as provided in 
subsection (e) of this section), shall be deposited into the 
revolving fund and remain available to carry out the purposes 
of this section. All funds in such account may be invested in 
obligations of the United States.
    [(c)(1) The agency primarily responsible for administering 
this part is authorized to use the funds maintained in this 
revolving fund account to furnish assistance in furtherance of 
the policy of subsection (a) on such terms and conditions as it 
may determine. Amounts in the revolving fund account shall be 
available for obligation for assistance under this section only 
to such extent as may be provided in advance in appropriation 
Acts. Assistance may be provided under this section without 
regard to sections 604(a) and 620(r) of this Act.
    [(2) Assistance under this section may be provided only to 
support private sector activities which--
            [(A) are consistent with the United States 
        development assistance policies set forth in section 
        102 of this Act and with the development priorities of 
        the host country;
            [(B) are the types of activities for which 
        assistance may be provided under sections 103 through 
        106 of this Act;
            [(C) will have a demonstration effect;
            [(D) will be innovative;
            [(E) are financially viable;
            [(F) will maximize the development impact 
        appropriate to the host country, particularly in 
        employment and the use of appropriate technology; and
            [(G) are primarily directed to making available to 
        small business enterprises and cooperatives necessary 
        support and services which are not otherwise generally 
        available.
In determining whether an enterprise is a small business 
enterprise, the agency primarily responsible for administering 
this part shall take into consideration the enterprise's total 
net fixed assets and number of employees, together with the 
relevant definition utilized by the host country government and 
the International Bank for Reconstruction and Development and 
other international organizations.
    [(3)(A) Not more than $3,000,000 may be made available 
under this section to support any one project.
    [(B) Not more than 50 per centum of the financial support 
for any project may be provided under this section, and a 
substantial portion of the financial support for a project 
assisted under this section must be provided by sources within 
the host country.
    [(C) Not more than 20 per centum of the assets of the 
revolving fund account under this section may be used to 
support projects in any one country.
    [(D) In order to maximize the impact on institution 
building, loans under this section shall be made primarily to 
intermediary entities which provide necessary support and 
services for private sector activities.
    [(E) Loans under this section shall be at or near the 
interest rate otherwise available to the recipient.
    [(d)(1) If at any time the assets of the revolving fund 
account exceeds $100,000,000, the President shall remit the 
amount in excess of $100,000,000 to the United States Treasury.
    [(2) As used in this section, ``assets'' includes amounts 
in the revolving fund account plus the value of investments 
made with amounts from the fund plus the current value of 
outstanding obligations under loans under this section.
    [(3) In addition to the requirement of paragraph (1), at 
the end of any fiscal year, the agency primarily responsible 
for administering this part may determine that amounts in the 
revolving fund are sufficient to permit the remittance to the 
United States Treasury of an amount equal to a portion or the 
total amount of appropriated funds deposited in the revolving 
fund. Any such remittance shall be deemed to be a decrease in 
the appropriated funds in the revolving fund. After remittance 
has been made of an amount equal to the total amount of 
appropriated funds, the revolving fund shall consist and be 
deemed to consist entirely of nonappropriated funds.
    [(e) A fee may be charged, where appropriate, in carrying 
out activities with funds from the revolving fund authorized in 
this section. The amount of any such fee shall be determined by 
the agency primarily responsible for administering this part.
    [(f) In the event the revolving fund is terminated, all 
unobligated money in the fund at the time of such termination 
shall be transferred to and become part of the miscellaneous 
receipts account of the Treasury.
    [(g) As part of its annual congressional presentation 
documents submitted to the Congress, the agency primarily 
responsible for administering this part shall include a 
description of projects proposed to be funded from the 
revolving fund account for that fiscal year. To the extent that 
projects are proposed for funding which are not contained in 
the annual congressional presentation documents, at least 
fifteen days' advance notification shall be provided to the 
Congress in accordance with section 634A of this Act.
    [(h) Not later than December 31 of each year, the President 
shall submit a comprehensive report which details all projects 
funded under this section during the previous fiscal year, all 
reflows to the revolving fund account, a status report on all 
projects currently contained in the fund's portfolio. Such 
reports shall include, but not be limited to, information 
regarding numbers and kinds of beneficiaries reached, amounts 
and kinds of benefits provided by the funded projects to 
targeted populations, and a justification for projects within 
the context of the goals and objectives of the United States 
development assistance program.
    [(i)(1) To carry out the purposes of subsection (a), in 
addition to the other authorities set forth in this section, 
the agency primarily responsible for administering this part is 
authorized to issue guarantees on such terms and conditions as 
it shall determine assuring against losses incurred in 
connection with loans made to projects that meet the criteria 
set forth in subsection (c). The full faith and credit of the 
United States is hereby pledged for the full payment and 
performance of such guarantees.
    [(2) Loans guaranteed under this subsection shall be on 
such terms and conditions as the agency may prescribe, except 
for the following:
            [(A) The agency shall issue guarantees only when it 
        is necessary to alleviate a credit market imperfection.
            [(B) Loans guaranteed shall provide for complete 
        amortization within a period not to exceed ten years 
        or, if the principal purpose of the guaranteed loan is 
        to finance the construction or purchase of a physical 
        asset with a useful life of less than ten years, within 
        a period not to exceed such useful life.
            [(C) No loan guaranteed to any one borrower may 
        exceed 50 percent of the cost of the activity to be 
        financed, or $3,000,000, whichever is less, as 
        determined by the agency.
            [(D) No loan may be guaranteed unless the agency 
        determines that the lender is responsible and that 
        adequate provision is made for servicing the loan on 
        reasonable terms and protecting the financial interest 
        of the United States.
            [(E) The fees earned from the loan guarantees 
        issued under this subsection shall be deposited in the 
        revolving fund account as part of the guarantee reserve 
        established under paragraph (5) of this subsection. 
        Fees shall be assessed at a level such that the fees 
        received, plus the funds from the revolving fund 
        account placed in the guarantee reserve satisfy the 
        requirements of paragraph (5). Fees shall be reviewed 
        every twelve months to ensure that the fees assessed on 
        new loan guarantees are at the required level.
            [(F) Any guarantee shall be conclusive evidence 
        that such guarantee has been properly obtained, and 
        that the underlying loan as contracted qualifies for 
        such guarantee. Except for fraud or material 
        misrepresentation for which the parties seeking payment 
        under such guarantee are responsible, such guarantee 
        shall be presumed to be valid, legal, and enforceable.
            [(G) The agency shall determine that the standards 
        used by the lender for assessing the credit risk of new 
        and existing guaranteed loans are reasonable. The 
        agency shall require that there be a reasonable 
        assurance of repayment before credit assistance is 
        extended.
            [(H) Commitments to guarantee loans may be made by 
        the agency only to the extent that the total loan 
        principal, any part of which is guaranteed, will not 
        exceed the amount specified in annual appropriations 
        Acts.
    [(3) To the extent that fees are not sufficient as 
specified under paragraph (2)(E) to cover expected future 
liabilities, appropriations are authorized to maintain an 
appropriate reserve.
    [(4) The losses guaranteed under this subsection may be in 
dollars or in other currencies. In the case of loans in 
currencies other than dollars, the guarantees issued shall be 
subject to an overall payment limitation expressed in dollars.
    [(5) The agency shall segregate in the revolving fund 
account and hold as a reserve an amount estimated to be 
sufficient to cover the agency's expected net liabilities on 
the loan guarantees outstanding under this subsection; except 
that the amount held in reserve shall not be less than 25 
percent of the principal amount of the agency's outstanding 
contingent liabilities on such guarantees. Any payments made to 
discharge liabilities arising from the loan guarantees shall be 
paid first out of the assets in the revolving fund account and 
next out of other funds made available for this purpose.]

SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.

    (a) Findings and Policy.--The Congress finds and declares 
that--
            (1) the development of micro- and small enterprise, 
        including cooperatives, is a vital factor in the stable 
        growth of developing countries and in the development 
        and stability of a free, open, and equitable 
        international economic system;
            (2) it is, therefore, in the best interests of the 
        United States to assist the development of the private 
        sector in developing countries and to engage the United 
        States private sector in that process;
            (3) the support of private enterprise can be served 
        by programs providing credit, training, and technical 
        assistance for the benefit of micro- and small 
        enterprises; and
            (4) programs that provide credit, training, and 
        technical assistance to private institutions can serve 
        as a valuable complement to grant assistance provided 
        for the purpose of benefiting micro- and small private 
        enterprise.
    (b) Program.--To carry out the policy set forth in 
subsection (a), the President is authorized to provide 
assistance to increase the availability of credit to micro- and 
small enterprises lacking full access to credit, including 
through--
            (1) loans and guarantees to credit institutions for 
        the purpose of expanding the availability of credit to 
        micro- and small enterprises;
            (2) training programs for lenders in order to 
        enable them to better meet the credit needs of micro- 
        and small entrepreneurs; and
            (3) training programs for micro- and small 
        entrepreneurs in order to enable them to make better 
        use of credit and to better manage their enterprises.
    (c) Authorization of Appropriations.--
            (1) In general.--There is authorized to be 
        appropriated the following amounts for the following 
        purposes (in addition to amounts otherwise available 
        for such purposes):
                    (A)(i) $1,500,000 for each of the fiscal 
                years 1998 and 1999 to carry out subsection 
                (b)(1).
                    (ii) Funds authorized to be appropriated 
                under this subparagraph shall be made available 
                for the subsidy cost, as defined in section 
                502(5) of the Federal Credit Reform Act of 
                1990, for activities under such subsection.
                    (B) $500,000 for each of the fiscal years 
                1998 and 1999 to carry out paragraphs (2) and 
                (3) of subsection (b).
            (2) Availability of amounts.--Amounts authorized to 
        be appropriated under paragraph (1) are authorized to 
        remain available until expended.

SEC. 108A. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.

    (a) Authorization.--(1) In carrying out this part, the 
Administrator of the United States Agency for International 
Development is authorized to provide grant assistance for 
programs of credit and other assistance for micro enterprises 
in developing countries.
    (2) Assistance authorized under paragraph (1) shall be 
provided through organizations that have a capacity to develop 
and implement microenterprise programs, including 
particularly--
                    (A) United States and indigenous private 
                and voluntary organizations;
                    (B) United States and indigenous credit 
                unions and cooperative organizations; or
                    (C) other indigenous governmental and 
                nongovernmental organizations.
    (3) Approximately one-half of the credit assistance 
authorized under paragraph (1) shall be used for poverty 
lending programs, including the poverty lending portion of 
mixed programs. Such programs--
            (A) shall meet the needs of the very poor members 
        of society, particularly poor women; and
            (B) should provide loans of $300 or less in 1995 
        United States dollars to such poor members of society.
    (4) The Administrator should continue support for 
mechanisms that--
            (A) provide technical support for field missions;
            (B) strengthen the institutional development of the 
        intermediary organizations described in paragraph (2); 
        and
            (C) share information relating to the provision of 
        assistance authorized under paragraph (1) between such 
        field missions and intermediary organizations.
    (b) Monitoring System.--In order to maximize the 
sustainable development impact of the assistance authorized 
under subsection (a)(1), the Administrator shall, in accordance 
with section 1115 of title 31, United States Code (relating to 
performance plans), establish a monitoring system that--
            (1) establishes performance goals for such 
        assistance and expresses such goals in an objective and 
        quantifiable form, to the extent feasible;
            (2) establishes performance indicators to be used 
        in measuring or assessing the achievement of the goals 
        and objectives of such assistance; and
            (3) provides a basis for recommendations for 
        adjustments to such assistance to enhance the 
        sustainable development impact of such assistance, 
        particularly the impact of such assistance on the very 
        poor, particularly poor women.
          * * * * * * *
    Sec. 116. Human Rights.--(a) * * *
          * * * * * * *
    (d) The Secretary of State shall transmit to the Speaker of 
the House of Representatives and the Committee on Foreign 
Relations of the Senate, by [January 31] February 25 of each 
year, a full and complete report regarding--
            (1) the status of internationally recognized human 
        rights, within the meaning of subsection (a)--
                    (A) in countries that receive assistance 
                under this part, and
                    (B) in all other foreign countries which 
                are members of the United Nations and which are 
                not otherwise the subject of a human rights 
                report under this Act;
            (2) wherever applicable, practices regarding 
        coercion in population control, including coerced 
        abortion and involuntary sterilization;
            (3) the status of child labor practices in each 
        country, including--
                    (A) whether such country has adopted 
                policies to protect children from exploitation 
                in the workplace, including a prohibition of 
                forced and bonded labor and policies regarding 
                acceptable working conditions; and
                    (B) the extent to which each country 
                enforces such policies, including the adequacy 
                of resources and oversight dedicated to such 
                policies;
            [(3)] (4) the votes of each member of the United 
        Nations Commission on Human Rights on all country-
        specific and thematic resolutions voted on at the 
        Commission's annual session during the period covered 
        during the preceding year;
            [(4)] (5) the extent to which each country has 
        extended protection to refugees, including the 
        provision of first asylum and resettlement; and
            [(5)] (6) the steps the Administrator has taken to 
        alter United States programs under this part in any 
        country because of human rights considerations.
          * * * * * * *
    Sec. 123. Private and Voluntary Organizations and 
Cooperatives in Overseas Development.--(a) * * *
          * * * * * * *
    [(e) Prohibitions on assistance to countries contained in 
this or any other Act shall not be construed to prohibit 
assistance by the agency primarily responsible for 
administering this part in support of programs of private and 
voluntary organizations and cooperatives already being 
supported prior to the date such prohibition becomes 
applicable. The President shall take into consideration, in any 
case in which statutory prohibitions on assistance would be 
applicable but for this subsection, whether continuation of 
support for such programs is in the national interest of the 
United States. If the President continues such support after 
such date, he shall prepare and transmit, not later than one 
year  after such date, to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate a report setting forth the reasons for 
such continuation.]
    (e)(1) Subject to paragraph (3), restrictions contained in 
this Act or any other provision of law with respect to 
assistance for a country shall not be construed to restrict 
assistance under this chapter, chapter 10, and chapter 11 of 
this part, chapter 4 of part II, or the Support for East 
European Democracy (SEED) Act of 1989 (22 U.S.C. 5401 et seq.), 
in support of programs of nongovernmental organizations.
    (2) The President shall take into consideration, in any 
case in which a restriction on assistance for a country would 
be applicable but for this subsection, whether assistance for 
programs of nongovernmental organizations is in the national 
interest of the United States.
    (3) Whenever the authority of this subsection is used to 
furnish assistance in support of a program of a nongovernmental 
organization, the President shall notify the congressional 
committees specified in section 634A(a) of this Act in 
accordance with procedures applicable to reprogramming 
notifications under that section. Such notification shall 
describe the program assisted, the assistance provided, and the 
reasons for furnishing such assistance.
          * * * * * * *
    [(g) After December 31, 1984, funds made available to carry 
out section 103(a), 104(b), 104(c), 105, 106, 491, or 496  of 
this Act may not be made available for programs of any United 
States private and voluntary organization which does not obtain 
at least 20 percent of its total annual financial support for 
its international activities from sources other than the United 
States Government, except that this restriction does not apply 
with respect to programs which, as of that date, are receiving 
financial support from the agency primarily responsible for 
administering this part. The Administrator of the agency 
primarily responsible for administering this part may, on a 
case-by-case basis, waive the restriction established by this 
subsection, after taking into account the effectiveness of the 
overseas development activities of the organization, its level 
of volunteer support, its financial viability and stability, 
and the degree of its dependence for its financial support on 
the agency primarily responsible for administering this part.]
    (g) Funds made available to carry out this chapter or 
chapter 10 of this part may not be made available to any United 
States private and voluntary organization, except any 
cooperative development organization, that obtains less than 20 
percent of its total annual funding for its international 
activities from sources other than the United States 
Government.
          * * * * * * *

                       Chapter 2--Other Programs

          * * * * * * *

        [TITLE III--HOUSING AND OTHER CREDIT GUARANTY PROGRAMS]

           TITLE III--URBAN AND ENVIRONMENTAL CREDIT PROGRAM

          * * * * * * *
    Sec. 222. Authorization.--(a) * * *
          * * * * * * *
    [(k) The total principal amount of guaranties issued under 
this section for each of the fiscal years 1986 and 1987 shall 
be comparable to the total principal amount of such guaranties 
issued for fiscal year 1984, subject to the dollar limitations 
on the issuance of guaranties under this section which are 
contained in subsection (a) and in appropriation Acts.
    [Sec. 222A. Agricultural and Productive Credit and Self-
Help Community Development Programs.--(a) It is the sense of 
the Congress that in order to stimulate the participation of 
the private sector in the economic development of less-
developed countries, the authority conferred by this section 
should be used to establish pilot programs  to encourage 
private banks, credit institutions, similar private lending 
organizations, cooperatives, and private nonprofit development 
organizations to make loans on reasonable terms to organized 
groups and individuals residing in a community for the purpose 
of enabling such groups and individuals to carry out 
agricultural credit and self-help community development 
projects for which they are unable to obtain financial 
assistance on reasonable terms. Agricultural credit and 
assistance for self-help community development projects should 
include, but not be limited to, material and such projects as 
wells, pumps, farm machinery, improved seed, fertilizer, 
pesticides, vocational training, food industry development, 
nutrition projects, improved breeding stock for farm animals, 
sanitation facilities, and looms and other handicraft aids.
    [(b) To carry out the purposes of subsection (a), the 
agency primarily responsible for administering part I is 
authorized to issue guaranties, on such terms and conditions as 
it shall determine, to private lending institutions, 
cooperatives, and private nonprofit development organizations  
assuring against loss of not to exceed 50 per centum of the 
portfolio of such loans made by any lender to organized groups 
or individuals residing in a community to enable such groups or 
individuals to carry out agricultural credit and self-help 
community development projects for which they are unable to 
obtain financial assistance on reasonable terms. In no event 
shall the liability of the United States exceed 75 per centum 
of any one loan.
    [(c) The total face amount of guaranties issued under this 
section outstanding at any one time shall not exceed 
$20,000,000. Not more than 10 per centum of such sum shall be 
provided for any one institution, cooperative, or organization.
    [(d) The Inter-American Foundation shall be consulted in 
developing criteria for making loans eligible for guaranty 
coverage in Latin America under this section.
    [(e) Not to exceed $3,000,000 of the guaranty reserve 
established under section 223(b) shall be available to make 
such payments as may be necessary to discharge liabilities 
under guaranties issued under this section or any guaranties 
previously issued under section 240 of this Act.
    [(f) Funds held by the Overseas Private Investment 
Corporation pursuant to section 236 may be available for 
meeting necessary administrative and operating expenses for 
carrying out the provisions of this section through June 30, 
1976.
    [(g) The Overseas Private Investment Corporation shall, 
upon enactment of this subsection, transfer to the agency 
primarily responsible for administering part I all obligations, 
assets, and related rights and responsibilities arising out of, 
or related to the predecessor program provided for in section 
240 of this Act.
    [(h) The authority of this section shall continue through 
September 30, 1988.
    [(i) Notwithstanding the limitations in subsection (c) of 
this section, foreign currencies owned by the United States and 
determined by the Secretary of the Treasury to be excess to the 
needs of the United States may be utilized to carry out the 
purposes of this section, including the discharge of 
liabilities under this subsection. The authority conferred by 
this subsection shall be in addition to authority conferred by 
any other provision of law to implement guaranty programs 
utilizing excess local currency.]
          * * * * * * *
    Sec. 223. General Provisions.--(a) * * *
          * * * * * * *
    [(j) Guaranties shall be issued under section 222  only for 
housing projects which are coordinated with and complementary 
to any development assistance being furnished under chapter 1 
of this part and which are specifically designed to demonstrate 
the feasibility and suitability of particular kinds of housing 
or of financial or other institutional arrangements. Of the 
aggregate face value of housing guaranties hereafter issued 
under this title, not less than 90 per centum shall be issued 
for housing suitable for families with income below the median 
income (below the median urban income for housing in urban 
areas) in the country in which the housing is located. The face 
value of guaranties issued with respect to housing in any 
country shall not exceed $25,000,000 in any fiscal year, and 
the average face value of guaranties issued in any fiscal year 
shall not exceed $15,000,000. Of the total amount of housing 
guaranties authorized to be issued under section 222 through 
September 30, 1982, not less than a face amount of $25,000,000 
shall be issued for projects in Israel and not less than a face 
amount of $25,000,000 shall be issued for projects in Egypt.]
          * * * * * * *

          Chapter 3--International Organizations and Programs

          * * * * * * *
    Sec. 307. Withholding of United States Proportionate Share 
for Certain Programs of International Organizations.--(a) * * *
          * * * * * * *
  (c) [The limitations] (1) Subject to paragraph (2), the 
limitations of subsection (a) shall not apply to contributions 
to the International Atomic Energy Agency or the United Nations 
Children's Fund (UNICEF).
    (2)(A) Except as provided in subparagraph (B), with respect 
to funds authorized to be appropriated by this chapter and 
available for the International Atomic Energy Agency, the 
limitations of subsection (a) shall apply to programs or 
projects of such Agency in Cuba.
    (B)(i) Subparagraph (A) shall not apply with respect to 
programs or projects of the International Atomic Energy Agency 
that provide for the discontinuation, dismantling, or safety 
inspection of nuclear facilities or related materials, or for 
inspections and similar activities designed to prevent the 
development of nuclear weapons by a country described in 
subsection (a).
    (ii) Clause (i) shall not apply with respect to the Juragua 
Nuclear Power Plant near Cienfuegos, Cuba, or the Pedro Pi 
Nuclear Research Center unless Cuba--
            (I) ratifies the Treaty on the Non-Proliferation of 
        Nuclear Weapons (21 UST 483) or the Treaty for the 
        Prohibition of Nuclear Weapons in Latin America 
        (commonly known as the Treaty of Tlatelolco);
            (II) negotiates full-scope safeguards of the 
        International Atomic Energy Agency not later than two 
        years after ratification by Cuba of such Treaty; and
            (III) incorporates internationally accepted nuclear 
        safety standards.
          * * * * * * *

                        Chapter 5--Contingencies

    Sec. 451. Contingencies.--(a)(1) Notwithstanding any other 
provision of law, the President is authorized to use funds made 
available to carry out any provision of this Act (other than 
the provisions of chapter 1 of this part) in order to provide, 
for any unanticipated contingencies, assistance authorized by 
this part in accordance with the provisions applicable to the 
furnishing of such assistance, except that the authority of 
this subsection may not be used to authorize the use of more 
than [$25,000,000] $50,000,000 during any fiscal year.
          * * * * * * *

     [Chapter 6--Central America Democracy, Peace, and Development 
                               Initiative

    [Sec. 461. Statement of Policy.--(a) The Congress finds 
that--
            [(1) the building of democracy, the restoration of 
        peace, the improvement of living conditions, and the 
        application of equal justice under law in Central 
        America are important to the interests of the United 
        States and the community of American States; and
            [(2) the interrelated issues of social and human 
        progress, economic growth, political reform, and 
        regional security must be effectively dealt with to 
        assure a democratic and economically and politically 
        secure Central America.
    [(b)(1) The achievement of democracy, respect for human 
rights, peace, and equitable economic growth depends primarily 
on the cooperation and the human and economic resources of the 
people and governments of Central America. The Congress 
recognizes that the United States can make a significant 
contribution to such peaceful and democratic development 
through a consistent and coherent policy which includes a long-
term commitment of assistance. This policy should be designed 
to support actively--
            [(A) democracy and political reform, including 
        opening the political process to all members of 
        society;
            [(B) full observance of internationally recognized 
        human rights, including free elections, freedom of the 
        press, freedom of association, and the elimination of 
        all human rights abuses;
            [(C) leadership development, including training and 
        educational programs to improve public administration 
        and the administration of justice;
            [(D) land reform, reform in tax systems, 
        encouragement of private enterprise and individual 
        initiative, creation of favorable investment climates, 
        curbing corruption where it exists, and spurring 
        balanced trade;
            [(E) the establishment of the rule of law and an 
        effective judicial system; and
            [(F) the termination of extremist violence by both 
        the left and the right as well as vigorous action to 
        prosecute those guilty of crimes and the prosecution to 
        the extent possible of past offenders.
    [(2) The policy described in paragraph (1) should also 
promote equitable economic growth and development, including 
controlling the flight of capital and the effective use of 
foreign assistance and adhering to approved programs for 
economic stabilization and fiscal responsibility. Finally, this 
policy should foster dialog and negotiations--
            [(A) to achieve peace based upon the objectives of 
        democratization, reduction of armament, an end to 
        subversion, and the withdrawal of foreign military 
        forces and advisers; and
            [(B) to provide a security shield against violence 
        and intimidation.
    [(3) It is the purpose of this chapter to establish the 
statutory framework and to authorize the appropriations and 
financing necessary to carry out the policy described in this 
section.
    [(c) The Congress finds, therefore, that the people of the 
United States are willing to sustain and expand a program for 
economic and military assistance in Central America if the 
recipient countries can demonstrate progress toward and a 
commitment to these goals.]

                         CHAPTER 6--DEBT RELIEF

SEC. 461. SPECIAL DEBT RELIEF FOR POOR COUNTRIES.

    (a) Authority to Reduce Debt.--The President may reduce 
amounts owed to the United States Government by a country 
described in subsection (b) as a result of--
            (1) loans or guarantees issued under this Act; or
            (2) credits extended or guarantees issued under the 
        Arms Export Control Act (22 U.S.C. 2751 et seq.).
    (b) Country Described.--A country described in this 
subsection is a country--
            (1) with a heavy debt burden that is eligible to 
        borrow from the International Development Association 
        but not from the International Bank for Reconstruction 
        and Development (commonly referred to as an ``IDA-
        only'' country);
            (2) the government of which--
                    (A) does not have an excessive level of 
                military expenditures;
                    (B) has not repeatedly provided support for 
                acts of international terrorism; and
                    (C) is not failing to cooperate with the 
                United States on international narcotics 
                control matters;
            (3) the government (including the military or other 
        security forces of such government) of which does not 
        engage in a consistent pattern of gross violations of 
        internationally recognized human rights; and
            (4) that is not ineligible for assistance because 
        of the application of section 527(a) of the Foreign 
        Relations Authorization Act, Fiscal Years 1994 and 
        1995.
    (c) Limitations.--The authority under subsection (a) may be 
exercised--
            (1) only to implement multilateral official debt 
        relief ad referendum agreements (commonly referred to 
        as ``Paris Club Agreed Minutes''); and
            (2) only to the extent that appropriations for the 
        cost of the modification, as defined in section 502 of 
        the Congressional Budget Act of 1974, are made in 
        advance.
    (d) Certain Prohibitions Inapplicable.--A reduction of debt 
pursuant to the exercise of authority under subsection (a)--
            (1) shall not be considered assistance for purposes 
        of any provision of law limiting assistance to a 
        country; and
            (2) may be exercised notwithstanding section 620(r) 
        of this Act or any comparable provision of law.
    (e) Authorization of Appropriations.--
            (1) In general.--There are authorized to be 
        appropriated to the President for the purpose of 
        carrying out this section and the Foreign Operations, 
        Export Financing, and Related Programs Supplemental 
        Appropriations Act, 1994 (title VI of the Foreign 
        Operations, Export Financing, and Related Programs 
        Appropriations Act, 1994; Public Law 103-306) 
        $32,000,000 for each of the fiscal years 1998 and 1999.
            (2) Availability.--Amounts authorized to be 
        appropriated under paragraph (1) are authorized to 
        remain available until expended.
          * * * * * * *

               Chapter 8--International Narcotics Control

SEC. 481. POLICY, GENERAL AUTHORITIES, COORDINATION, FOREIGN POLICE 
                    ACTIONS, DEFINITIONS, AND OTHER PROVISIONS.

    (a) * * *
          * * * * * * *
    (e) Definitions.--For purposes of this chapter and other 
provisions of this Act relating specifically to international 
narcotics matters--
            (1) * * *
          * * * * * * *
            (4) the term ``United States assistance'' means--
                    (A) any assistance under this Act 
                (including programs under title IV of chapter 
                2, relating to the Overseas Private Investment 
                Corporation), other than--
                            (i) assistance under this chapter,
                            (ii) any other narcotics-related 
                        assistance under this part (including 
                        chapter 4 of part II) or under chapter 
                        5 of part II, but any such assistance 
                        provided under this clause shall be 
                        subject to the prior notification 
                        procedures applicable to reprogrammings 
                        pursuant to section 634A of this Act,
                            (iii) disaster relief assistance, 
                        including any assistance under chapter 
                        9 of this part,
                            (iv) assistance which involves the 
                        provision of food (including 
                        monetization of food) or medicine, and
                            (v) assistance for refugees;
                    (B) sales, or financing on any terms, under 
                the Arms Export Control Act, other than sales 
                or financing provided for narcotics-related 
                purposes following notification in accordance 
                with procedures applicable to reprogramming 
                notifications under section 634A of this Act;
          * * * * * * *
            (8) the term ``appropriate congressional 
        committees'' means the [Committee on Foreign Affairs] 
        Committee on International Relations and the Committee 
        on Appropriations of the House of Representatives and 
        the Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate.
          * * * * * * *
    Sec. 482. Authorization.--(a)(1) To carry out the purposes 
of section 481, there are authorized to be appropriated to the 
President [$147,783,000 for fiscal year 1993 and $171,500,000 
for fiscal year 1994] $230,000,000 for each of the fiscal years 
1998 and 1999.
          * * * * * * *
    Sec. 485. Records of Aircraft Use.--(a) * * *
    (b) Congressional Access to Records.--The President shall 
make the records maintained pursuant to subsection (a) 
available to the Congress upon a request of the Chairman of the 
[Committee on Foreign Affairs] Committee on International 
Relations of the House of Representatives or the Chairman of 
the Committee on Foreign Relations of the Senate .
          * * * * * * *

SEC. 488. LIMITATIONS ON ACQUISITION OF REAL PROPERTY AND CONSTRUCTION 
                    OF FACILITIES.

    (a) Acquisition of Real Property.--
            (1) * * *
          * * * * * * *
            (3) Report.--The Secretary of State shall provide 
        to the [Committee on Foreign Affairs] Committee on 
        International Relations of the House of Representatives 
        and the Committee on Foreign Relations of the Senate 
        within 30 days after the end of each quarter of the 
        fiscal year a detailed report on all leases entered 
        into pursuant to paragraph (2), including the cost and 
        duration of such lease, a description of the property 
        leased, and the purpose for which such lease was 
        entered into.
          * * * * * * *

SEC. 489. REPORTING REQUIREMENTS.

    (a) International Narcotics Control Strategy Report.--Not 
later than March 1 of each year, the President shall transmit 
to the Speaker of the House of Representatives, and to the 
Committee on Foreign Relations of the Senate, a report 
containing the following:
            (1) * * *
          * * * * * * *
            (3) The identity of those countries which are--
                    (A) major illicit drug producing countries 
                or major drug-transit countries [as determined 
                under section 490(h)];
          * * * * * * *
            (7) In addition, for those countries identified 
        pursuant to paragraph [(3)(D)] (3)(C) the following:
                    (A)(i) Which countries have financial 
                institutions engaging in currency transactions 
                involving international narcotics trafficking 
                proceeds that include significant amounts of 
                United States currency or currency derived from 
                illegal drug sales in the United States or that 
                otherwise significantly affect the United 
                States;
          * * * * * * *

[SEC. 490. ANNUAL CERTIFICATION PROCEDURES.

    [(a) Withholding of Bilateral Assistance and Opposition to 
Multilateral Development Assistance.--
            [(1) Bilateral assistance.--Fifty percent of the 
        United States assistance allocated each fiscal year in 
        the report required by section 653 for each major 
        illicit drug producing country or major drug-transit 
        country shall be withheld from obligation and 
        expenditure, except as provided in subsection (b). This 
        paragraph shall not apply with respect to a country if 
        the President determines that its application to that 
        country would be contrary to the national interest of 
        the United States, except that any such determination 
        shall not take effect until at least 15 days after the 
        President submits written notification of that 
        determination to the appropriate congressional 
        committees in accordance with the procedures applicable 
        to reprogramming notifications under section 634A.
            [(2) Multilateral assistance.--The Secretary of the 
        Treasury shall instruct the United States Executive 
        Director of each multilateral development bank to vote, 
        on and after March 1 of each year, against any loan or 
        other utilization of the funds of their respective 
        institution to or for any major illicit drug producing 
        country or major drug-transit country (as determined 
        under subsection (h)), except as provided in subsection 
        (b). For purposes of this paragraph, the term 
        ``multilateral development bank'' means the 
        International Bank for Reconstruction and Development, 
        the International Development Association, the Inter-
        American Development Bank, the Asian Development Bank, 
        the African Development Bank, and the European Bank for 
        Reconstruction and Development.
    [(b) Certification Procedures.--
            [(1) What must be certified.--Subject to subsection 
        (d), the assistance withheld from a country pursuant to 
        subsection (a)(1) may be obligated and expended, and 
        the requirement of subsection (a)(2) to vote against 
        multilateral development bank assistance to a country 
        shall not apply, if the President determines and 
        certifies to the Congress, at the time of the 
        submission of the report required by section 489(a), 
        that--
                    [(A) during the previous year the country 
                has cooperated fully with the United States, or 
                has taken adequate steps on its own, to achieve 
                full compliance with the goals and objectives 
                established by the United Nations Convention 
                Against Illicit Traffic in Narcotic Drugs and 
                Psychotropic Substances; or
                    [(B) for a country that would not otherwise 
                qualify for certification under subparagraph 
                (A), the vital national interests of the United 
                States require that the assistance withheld 
                pursuant to subsection (a)(1) be provided and 
                that the United States not vote against 
                multilateral development bank assistance for 
                that country pursuant to subsection (a)(2).
            [(2) Considerations regarding cooperation.--In 
        making the determination described in paragraph (1)(A), 
        the President shall consider the extent to which the 
        country has--
                    [(A) met the goals and objectives of the 
                United Nations Convention Against Illicit 
                Traffic in Narcotic Drugs and Psychotropic 
                Substances, including action on such issues as 
                illicit cultivation, production, distribution, 
                sale, transport and financing, and money 
                laundering, asset seizure, extradition, mutual 
                legal assistance, law enforcement and transit 
                cooperation, precursor chemical control, and 
                demand reduction;
                    [(B) accomplished the goals described in an 
                applicable bilateral narcotics agreement with 
                the United States or a multilateral agreement; 
                and
                    [(C) taken legal and law enforcement 
                measures to prevent and punish public 
                corruption, especially by senior government 
                officials, that facilitates the production, 
                processing, or shipment of narcotic and 
                psychotropic drugs and other controlled 
                substances, or that discourages the 
                investigation or prosecution of such acts.
            [(3) Information to be included in national 
        interest certification.--If the President makes a 
        certification with respect to a country pursuant to 
        paragraph (1)(B), the President shall include in such 
        certification--
                    [(A) a full and complete description of the 
                vital national interests placed at risk if 
                United States bilateral assistance to that 
                country is terminated pursuant to this section 
                and multilateral development bank assistance is 
                not provided to such country; and
                    [(B) a statement weighing the risk 
                described in subparagraph (A) against the risks 
                posed to the vital national interests of the 
                United States by the failure of such country to 
                cooperate fully with the United States in 
                combating narcotics or to take adequate steps 
                to combat narcotics on its own.
    [(c) Licit Opium Producing Countries.--The President may 
make a certification under subsection (b)(1)(A) with respect to 
a major illicit drug producing country, or major drug-transit 
country, that is a producer of licit opium only if the 
President determines that such country maintains licit 
production and stockpiles at levels no higher than those 
consistent with licit market demand, and has taken adequate 
steps to prevent significant diversion of its licit cultivation 
and production into the illicit markets and to prevent illicit 
cultivation and production.
    [(d) Congressional Review.--Subsection (e) shall apply if, 
within 30 calendar days after receipt of a certification 
submitted under subsection (b) at the time of submission of the 
report required by section 489(a), the Congress enacts a joint 
resolution disapproving the determination of the President 
contained in such certification.
    [(e) Denial of Assistance for Countries Decertified.--If 
the President does not make a certification under subsection 
(b) with respect to a country or the Congress enacts a joint 
resolution disapproving such certification, then until such 
time as the conditions specified in subsection (f) are 
satisfied--
            [(1) funds may not be obligated for United States 
        assistance for that country, and funds previously 
        obligated for United States assistance for that country 
        may not be expended for the purpose of providing 
        assistance for that country; and
            [(2) the requirement to vote against multilateral 
        development bank assistance pursuant to subsection 
        (a)(2) shall apply with respect to that country, 
        without regard to the date specified in that 
        subsection.
    [(f) Recertification.--Subsection (e) shall apply to a 
country described in that subsection until--
            [(1) the President, at the time of submission of 
        the report required by section 489(a), makes a 
        certification under subsection (b)(1)(A) or (b)(1)(B) 
        with respect to that country, and the Congress does not 
        enact a joint resolution under subsection (d) 
        disapproving the determination of the President 
        contained in that certification; or
            [(2) the President, at any other time, makes the 
        certification described in subsection (b)(1)(B) with 
        respect to that country, except that this paragraph 
        applies only if either--
                    [(A) the President also certifies that--
                            [(i) that country has undergone a 
                        fundamental change in government, or
                            [(ii) there has been a fundamental 
                        change in the conditions that were the 
                        reason--
                                    [(I) why the President had 
                                not made a certification with 
                                respect to that country under 
                                subsection (b)(1)(A), or
                                    [(II) if he had made such a 
                                certification and the Congress 
                                enacted a joint resolution 
                                disapproving the determination 
                                contained in the certification, 
                                why the Congress enacted that 
                                joint resolution; or
                    [(B) the Congress enacts a joint resolution 
                approving the determination contained in the 
                certification under subsection (b)(1)(B).
Any certification under subparagraph (A) of paragraph (2) shall 
discuss the justification for the certification.
    [(g) Senate Procedures.--Any joint resolution under this 
section shall be considered in the Senate in accordance with 
the provisions of section 601(b) of the International Security 
Assistance and Arms Export Control Act of 1976.
    [(h) Determining Major Drug-Transit and Major Illicit Drug 
Producing Countries.--Not later than November 1 of each year, 
the President shall notify the appropriate committees of the 
Congress of which countries have been determined to be major 
drug-transit countries, and which countries have been 
determined to be major illicit drug producing countries, for 
purposes of this Act.]

SEC. 490. AUTHORITY TO WITHHOLD BILATERAL ASSISTANCE AND OPPOSE 
                    MULTILATERAL DEVELOPMENT ASSISTANCE FOR MAJOR 
                    ILLICIT DRUG PRODUCING COUNTRIES, DRUG-TRANSIT 
                    COUNTRIES, AND MONEY LAUNDERING COUNTRIES.

    (a) In General.--For every country identified in the report 
under section 489(a)(3), the President shall, on or after March 
1, 1998, and March 1 of each succeeding year, to the extent 
considered necessary by the President to achieve the purposes 
of this chapter, take one or more of the following actions:
            (1) Withhold from obligation and expenditure any or 
        all United States assistance allocated each fiscal year 
        in the report required by section 653 for each such 
        country.
            (2) Instruct the Secretary of the Treasury to 
        instruct the United States Executive Director of each 
        multilateral development bank to vote, on and after 
        March 1 of each year, against any loan or other 
        utilization of the funds of their respective 
        institution to or for any such country.
    (b) Considerations.--In determining whether or not take one 
or more actions described in subsection (a), the President 
shall consider the extent to which--
            (1) the country has--
                    (A) met the goals and objectives of the 
                United Nations Convention Against Illicit 
                Traffic in Narcotic Drugs and Psychotropic 
                Substances, including action on such issues as 
                illicit cultivation, production, distribution, 
                sale, transport and financing, and money 
                laundering, asset seizure, extradition, mutual 
                legal assistance, law enforcement and transit 
                cooperation, precursor chemical control, and 
                demand reduction;
                    (B) accomplished the goals described in an 
                applicable bilateral narcotics agreement with 
                the United States or a multilateral agreement;
                    (C) reached agreement, or is negotiating in 
                good faith to reach agreement, to ensure that 
                banks and other financial institutions of the 
                country maintain adequate records of large 
                United States currency transactions;
                    (D) reached agreement, or is negotiating in 
                good faith to reach agreement, to establish a 
                mechanism for exchanging adequate records on 
                international currency transactions in 
                connection with narcotics investigations and 
                proceedings; and
                    (E) taken legal and law enforcement 
                measures to prevent and punish public 
                corruption, especially by senior government 
                officials, that facilitates the production, 
                processing, or shipment of narcotic and 
                psychotropic drugs and other controlled 
                substances, or that discourages the 
                investigation or prosecution of such acts; and
            (2) such actions will--
                    (A) promote the purposes of this chapter; 
                and
                    (B) affect other United States national 
                interests.
    (c) Consultations with the Congress.--
            (1) Consultations.--The President shall consult 
        with the Congress on the status of counter-narcotics 
        cooperation between the United States and each major 
        illicit drug producing country, major drug-transit 
        country, or major money laundering country.
            (2) Purpose.--
                    (A) In general.--The purpose of the 
                consultations under paragraph (1) shall be to 
                facilitate improved discussion and 
                understanding between the Congress and the 
                President on United States counter-narcotics 
                goals and objectives with regard to the 
                countries described in paragraph (1), including 
                the strategy for achieving such goals and 
                objectives.
                    (B) Regular and special consultations.--In 
                order to carry out subparagraph (A), the 
                President (or senior officials designated by 
                the President who are responsible for 
                international narcotics programs and policies) 
                shall meet with Members of Congress--
                            (i) on a quarterly basis for 
                        discussions and consultations; and
                            (ii) whenever time-sensitive issues 
                        arise.
    (d) Definition.--For purposes of this section, the term 
``multilateral development bank'' means the International Bank 
for Reconstruction and Development, the International 
Development Association, the Inter-American Development Bank, 
the Asian Development Bank, the African Development Bank, and 
the European Bank for Reconstruction and Development.
          * * * * * * *

              Chapter 9--International Disaster Assistance

    Sec. 491. Policy and General Authority.--(a) The Congress, 
recognizing that prompt United States assistance to alleviate 
human suffering caused by natural and manmade disasters is an 
important expression of the humanitarian concern and tradition 
of the people of the United States, affirms the willingness of 
the United States to provide assistance for the relief [and 
rehabilitation], rehabilitation, and reconstruction, as the 
case may be, of people and countries affected by such 
disasters.
    (b) Subject to the limitations in section 492, and 
notwithstanding any other provision of this or any other Act, 
the President is authorized to furnish assistance to any 
foreign country, international organization, or private 
voluntary organization, on such terms and conditions as he may 
determine, for international disaster relief [and 
rehabilitation], rehabilitation, and reconstruction, including 
assistance relating to disaster preparedness, and to the 
prediction of, and contingency planning for, natural disasters 
abroad.
    (c) In carrying out the provisions of this section the 
President shall insure that the assistance provided by the 
United States shall, to the greatest extent possible, reach 
those most in need of relief [and rehabilitation], 
rehabilitation, and reconstruction as a result of natural and 
manmade disasters.
          * * * * * * *
    Sec. 492. Authorization.--(a) [There are authorized to be 
appropriated to the President to carry out section 491, 
$25,000,000 for the fiscal year 1986 and $25,000,000 for the 
fiscal year 1987.] There are authorized to be appropriated to 
the President to carry out section 491, in addition to funds 
otherwise available for such purposes, $190,000,000 for each of 
the fiscal years 1998 and 1999. Amounts appropriated under this 
section are authorized to remain available until expended.
          * * * * * * *

                Chapter 10--Development Fund for Africa

          * * * * * * *
    [Sec. 497. Authorizations of Appropriations for the 
Development Fund for Africa.--Funds appropriated to carry out 
this chapter are authorized to be made available until 
expended. It is the sense of the Congress that the authority of 
this subsection should be used to extend the period of 
availability of those funds whenever appropriate to improve the 
quality of assistance provided under section 496.]

SEC. 497. AVAILABILITY OF AMOUNTS.

    (a) In General.--Of the amounts made available to carry out 
sections 103 through 106 (including section 104(c)) for fiscal 
years 1998 and 1999, not less than $700,000,000 for each of the 
fiscal years 1998 and 1999 shall be made available to carry out 
this chapter (in addition to amounts otherwise available for 
such purposes).
    (b) Availability.--Amounts made available under subsection 
(a) are authorized to remain available until expended.
          * * * * * * *

SEC. 498C. AUTHORIZATION OF APPROPRIATIONS.

    (a) In general.--To carry out this chapter, there are 
authorized to be appropriated to the President [for fiscal year 
1993 $410,000,000] for economic assistance and related 
programs, $839,900,000 for fiscal year 1998 and $789,900,000 
for fiscal year 1999, in addition to amounts otherwise 
available for assistance for the independent states of the 
former Soviet Union. Amounts appropriated pursuant to this 
subsection are authorized to remain available until expended.
          * * * * * * *

                                PART II

          * * * * * * *

                     Chapter 2--Military Assistance

          * * * * * * *
    Sec. 506. Special Authority.--(a) * * *
    (b)(1) * * *
    (2) The President shall keep the Congress fully and 
currently informed of all defense articles, defense services, 
and military education and training provided under this 
section[.], 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.
    (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.
    [(c)] (d) There are authorized to be appropriated to the 
President such sums as may be necessary to reimburse the 
applicable appropriation, fund, or account for defense 
articles, defense services, and military education and training 
provided under this section.
          * * * * * * *
    Sec. 514. Stockpiling of Defense Articles for Foreign 
Countries.--(a) * * *
    (b)(1) * * *
    (2)(A) The value of such additions to stockpiles of defense 
articles in foreign countries shall not exceed $50,000,000 for 
each of the fiscal years 1996 and 1997 and $60,000,000 for 
fiscal year 1998.
    (B) Of the amount specified in subparagraph (A) for each of 
the fiscal years 1996 and 1997, not more than $40,000,000 may 
be made available for stockpiles in the Republic of Korea and 
not more than $10,000,000 may be made available for stockpiles 
in Thailand. Of the amount specified in subparagraph (A) for 
fiscal year 1998, not more than $40,000,000 may be made 
available for stockpiles in the Republic of Korea and not more 
than $20,000,000 may be made available for stockpiles in 
Thailand.
          * * * * * * *

                    Chapter 4--Economic Support Fund

          * * * * * * *
    Sec. 532. Authorizations of Appropriations.--[(a) There are 
authorized to be appropriated to the President to carry out the 
purposes of this chapter--
            [(1) $2,015,000,000 for the fiscal year 1986 and 
        $2,015,000,000 for the fiscal year 1987 for the 
        following countries signing the Camp David agreement: 
        Israel and Egypt; and
            [(2) $1,785,000,000 for the fiscal year 1986 and 
        $1,785,000,000 for the fiscal year 1987 for assistance 
        under this chapter for recipients or purposes other 
        than the countries referred to in paragraph (1).]
    (a) There are authorized to be appropriated to the 
President to carry out the purposes of this chapter 
$2,388,350,000 for fiscal year 1998 and $2,350,600,000 for 
fiscal year 1999.
          * * * * * * *

        Chapter 5--International Military Education and Training

          * * * * * * *
    Sec. 542. Authorization.--There are authorized to be 
appropriated to the President to carry out the purposes of this 
chapter [$56,221,000 for the fiscal year 1986 and $56,221,000 
for the fiscal year 1987] $50,000,000 for each of the fiscal 
years 1998 and 1999.
          * * * * * * *

   CHAPTER 9--NONPROLIFERATION, ANTITERRORISM, DEMINING AND RELATED 
                                PROGRAMS

SEC. 581. NONPROLIFERATION AND DISARMAMENT FUND.

    (a) Establishment of Fund.--The President shall establish a 
Nonproliferation and Disarmament Fund, which may be used 
notwithstanding any other provision of law, to promote 
bilateral and multilateral nonproliferation and disarmament 
activities--
            (1) to halt the proliferation of nuclear, 
        biological, and chemical weapons, their delivery 
        systems, related technologies, and other weapons;
            (2) to dismantle and destroy nuclear, biological, 
        and chemical weapons, their delivery systems, and 
        conventional weapons;
            (3) to prevent the diversion of weapons-related 
        scientific and technical expertise; and
            (4) to support science and technology centers in 
        Russia and the Ukraine.
    (b) Prohibited Activities.--Amounts made available to carry 
out subsection (a) may not be used to implement United States 
obligations pursuant to bilateral or multilateral arm control 
treaties or nonproliferation accords, including the payment of 
salaries and expenses.
    (c) Additional Requirements.--
            (1) Notification.--Amounts made available to carry 
        out subsection (a) may be provided only if the 
        congressional committees specified in section 634A of 
        this Act are notified at least fifteen days before 
        providing funds under such subsection in accordance 
        with procedures applicable to reprogramming 
        notifications under such section.
            (2) Assistance for the independent states of the 
        former soviet union and international organizations.--
        Amounts made available to carry out subsection (a) may 
        only be provided for the independent states of the 
        former Soviet Union and international organizations if 
        the Secretary of State--
                    (A) determines it is in the national 
                interest of the United States to do so; and
                    (B) includes such determination in the 
                notification described in paragraph (1).
    (d) Availability of Amounts.--
            (1) In general.--Of the amounts made available to 
        carry out this chapter for fiscal years 1998 and 1999--
                    (A) not less than $15,000,000 for each such 
                fiscal year may be made available to carry out 
                subsection (a); and
                    (B) not more than $5,000,000 of the amount 
                made available under subparagraph (A) for 
                fiscal year 1998, and not more than $3,000,000 
                of such amount made available in fiscal year 
                1999, may be used to support export control 
                programs.
            (2) Availability.--Amounts made available under 
        paragraph (1) are authorized to remain available until 
        expended.

SEC. 582. ASSISTANCE FOR ANTITERRORISM.

    Amounts made available to carry out this chapter for fiscal 
years 1998 and 1999 may be made available to carry out chapter 
8 of part II of this Act.

SEC. 583. ASSISTANCE FOR DEMINING.

    The President is authorized to provide assistance for 
demining activities, notwithstanding any other provision of 
law, including--
            (1) to enhance the ability of countries, 
        international organizations, and nongovernmental 
        organizations to detect and clear landmines; and
            (2) to educate affected populations about the 
        dangers of landmines.

SEC. 584. ASSISTANCE FOR RELATED PROGRAMS.

    (a) In General.--Amounts made available to carry out this 
chapter for fiscal years 1998 and 1999 may be made available to 
carry out section 301 of this Act for voluntary contributions 
to the International Atomic Energy Agency (IAEA) and the Korean 
Peninsula Energy Development Organization (KEDO) and to 
programs administered by such organizations. -
    (b) Limitation.--Of the amounts made available under 
subsection (a) for fiscal years 1998 and 1999, not more than 
$30,000,000 may be made available for each fiscal year to KEDO 
for the administrative expenses and heavy fuel oil costs 
associated with implementation of the Agreed Framework.

SEC. 585. DEFINITIONS.

    As used in this chapter--
            (1) Agreed framework.--The term ``Agreed 
        Framework'' means the documents agreed to between the 
        United States and the Democratic People's Republic of 
        Korea on October 21, 1994, regarding elimination of the 
        nuclear weapons program of the Democratic People's 
        Republic of Korea and the provision of certain 
        assistance to that country.
            (2) Independent states of the former soviet 
        union.--The term ``independent states of the former 
        Soviet Union'' has the meaning given such term in 
        section 3 of the Freedom for Russia and Emerging 
        Eurasian Democracies and Open Markets Support Act of 
        1992 (22 U.S.C. 5801).

SEC. 586. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations.--There are authorized 
to be appropriated $110,000,000 for fiscal year 1998 and 
$111,000,000 for fiscal year 1999, in addition to amounts 
otherwise available for such purposes, to carry out the purpose 
of this chapter. -
    (b) Administrative Authorities.--Any agency of the United 
States Government may utilize such funds in accordance with 
authority granted under this Act or under authority governing 
the activities of that agency.
    (c) Designation of Account.--Appropriations pursuant to 
subsection (a) may be referred to as the ``Nonproliferation, 
Antiterrorism, Demining and Related Programs Account'' or 
``NADR Account''.

                                PART III

                     Chapter 1--General Provisions

    Sec. 601. Encouragement of Free Enterprise and Private 
Participation.--(a)(1) The Congress of the United States 
recognizes the vital role of free enterprise in achieving 
rising levels of production and standards of living essential 
to economic progress and development. Accordingly, it is 
declared to be the policy of the United States to encourage the 
efforts of other countries to increase the flow of 
international trade, to foster private initiative and 
competition, to encourage the development and use of 
cooperatives, credit unions, and savings and loan associations, 
to discourage monopolistic practices, to improve the technical 
efficiency of their industry, agriculture, and commerce, and to 
strengthen free labor unions; and to encourage the contribution 
of United States enterprise toward economic strength of less 
developed friendly countries, through private trade and 
investment abroad, private participation in programs carried 
out under this Act (including the use of private trade channels 
to the maximum extent practicable in carrying out such 
programs), and exchange of ideas and technical information on 
the matters covered by this subsection.
    (2) To the maximum extent feasible, in providing assistance 
under Part I of this Act, the President should give special 
emphasis to programs and activities that encourage the creation 
and development of private enterprise and free market systems, 
including--
            (A) the development of private cooperatives, credit 
        unions, labor unions, and civic and professional 
        associations;
            (B) the reform and restructuring of banking and 
        financial systems; and
            (C) the development and strengthening of commercial 
        laws and regulations, including laws and regulations to 
        protect intellectual property.
          * * * * * * *

SEC. 601A. PRIVATE SECTOR ENTERPRISE FUNDS.

    (a) Authority.--(1) The President may provide funds and 
support to Enterprise Funds designated in accordance with 
subsection (b) that are or have been established for the 
purposes of promoting--
            (A) development of the private sectors of eligible 
        countries, including small businesses, the agricultural 
        sector, and joint ventures with United States and host 
        country participants; and
            (B) policies and practices conducive to private 
        sector development in eligible countries;
on the same basis as funds and support may be provided with 
respect to Enterprise Funds for Poland and Hungary under the 
Support for East European Democracy (SEED) Act of 1989 (22 
U.S.C. 5401 et seq.).
    (2) Funds may be made available under this section 
notwithstanding any other provision of law, except sections 
502B and 490 of this Act.
    (b) Countries Eligible for Enterprise Funds.--(1) Except as 
provided in paragraph (2), the President is authorized to 
designate a private, nonprofit organization as eligible to 
receive funds and support pursuant to this section with respect 
to any country eligible to receive assistance under part I of 
this Act in the same manner and with the same limitations as 
set forth in section 201(d) of the Support for East European 
Democracy (SEED) Act of 1989 (22 U.S.C. 5421(d)).
    (2) The authority of paragraph (1) shall not apply to any 
country with respect to which the President is authorized to 
designate an enterprise fund under section 498B(c) of this Act 
or section 201 of the Support for East European Democracy 
(SEED) Act of 1989 (22 U.S.C. 5421).
    (c) Treatment Equivalent to Enterprise Funds for Poland and 
Hungary.--Except as otherwise specifically provided in this 
section, the provisions contained in section 201 of the Support 
for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5421) 
(excluding the authorizations of appropriations provided in 
subsection (b) of that section) shall apply to any Enterprise 
Fund that receives Funds and support under this section. The 
officers, members, or employees of an Enterprise Fund that 
receive funds and support under this section shall enjoy the 
same status under law that is applicable to officers, members, 
or employees of the Enterprise Funds for Poland and Hungary 
under section 201 of the Support for East European Democracy 
(SEED) Act of 1989 (22 U.S.C. 5421).
    (d) Reporting Requirement.--Notwithstanding any other 
provision of this section, the requirement of section 201(p) of 
the Support for East European Democracy (SEED) Act of 1989 (22 
U.S.C. 5421(p)), that an Enterprise Fund shall be required to 
publish an annual report not later than January 31 each year, 
shall not apply with respect to an Enterprise Fund that 
receives funds and support under this section for the first 
twelve months after it is designated as eligible to receive 
such funds and support.
    (e) Funding.--(1) Amounts made available for a fiscal year 
to carry out chapter 1 of part I of this Act (relating to 
development assistance) and to carry out chapter 4 of part II 
of this Act (relating to the economic support fund) shall be 
available for such fiscal year to carry out this section, in 
addition to amounts otherwise available for such purposes.
    (2) In addition to amounts available under paragraph (1) 
for a fiscal year, amounts made available for such fiscal year 
to carry out chapter 10 of part I of this Act (relating to the 
Development Fund for Africa) shall be available for such fiscal 
year to carry out this section with respect to countries in 
Africa.
          * * * * * * *
    [Sec. 610. Transfer Between Accounts.--(a) Whenever the 
President determines it to be necessary for the purposes of 
this Act, not to exceed 10 per centum of the funds made 
available for any provision of this Act (except funds made 
available pursuant to title IV of chapter 2 of part I or for 
section 23 of the Arms Export Control Act) may be transferred 
to, and consolidated with, the funds made available for any 
provision of this Act, (except funds made available under 
chapter 2 of part II of this Act) and may be used for any of 
the purposes for which such funds may be used, except that the 
total in the provision for the benefit of which the transfer is 
made shall not be increased by more than 20 per centum of the 
amount of funds made available for such provision.
    [(b) The authority contained in this section and in 
sections 451, 506, and 614 shall not be used to augment 
appropriations made available pursuant to sections 636(g)(1) 
and 637 or used otherwise to finance activities which normally 
would be financed from appropriations for administrative 
expenses.
    [(c) Any funds which the President has notified Congress 
pursuant to section 653 that he intends to provide in military 
assistance to any country may be transferred to, and 
consolidated with, any other funds he has notified Congress 
pursuant to such section that he intends to provide to that 
country for development assistance purposes.]

SEC. 610. TRANSFER BETWEEN ACCOUNTS.

    (a) General Authority.--Whenever the President determines 
it to be necessary for the purposes of this Act or the Arms 
Export Control Act (22 U.S.C. 2751 et seq.), not to exceed 20 
percent of the funds made available to carry out any provision 
of this Act (except funds made available pursuant to title IV 
of chapter 2 of part I) or section 23 of the Arms Export 
Control Act (22 U.S.C. 2763)--
            (1) may be transferred to, and consolidated with, 
        the funds in any other account or fund available to 
        carry out any provision of this Act or the Arms Export 
        Control Act; and
            (2) may be used for any purpose for which funds in 
        that account or fund may be used.
    (b) Limitation on Amount of Increase.--The total amount in 
the account or fund for the benefit of which transfer is made 
under subsection (a) during any fiscal year may not be 
increased by more than 20 percent of the amount of funds 
otherwise made available.
    (c) Notification.--The President shall notify in writing 
the congressional committees specified in section 634A at least 
fifteen days in advance of each such transfer between accounts 
in accordance with procedures applicable to reprogramming 
notifications under such section.
          * * * * * * *
    Sec. 614. Special Authorities.--[(a)(1) The President may 
authorize the furnishing of assistance under this Act without 
regard to any provision of this Act, the Arms Export Control 
Act, any law relating to receipts and credits accruing to the 
United States, and any Act authorizing or appropriating funds 
for use under this Act, in furtherance of any of the purposes 
of this Act, when the President determines, and so notifies in 
writing the Speaker of the House of Representatives and the 
chairman of the Committee on Foreign Relations of the Senate, 
that to do so is important to the security interests of the 
United States.
    [(2) The President may make sales, extend credit, and issue 
guarantees under the Arms Export Control Act, without regard to 
any provision of this Act, the Arms Export Control Act, any law 
relating to receipts and credits accruing to the United States, 
and any Act authorizing or appropriating funds for use under 
the Arms Export Control Act, in furtherance of any of the 
purposes of such Act, when the President determines, and so 
notifies in writing the Speaker of the House of Representatives 
and the chairman of the Committee on Foreign Relations of the 
Senate, that to do so is vital to the national security 
interests of the United States.]
    (a) Authority To Authorize Assistance, Sales, and Other 
Actions; Limitations.--(1) The President may authorize 
assistance, sales, or other action under this Act, the Arms 
Export Control Act, or any annual (or periodic) foreign 
assistance authorization or appropriations legislation, without 
regard to any of the provisions described in subsection (b), if 
the President determines, and notifies in writing the Speaker 
of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate--
            (A) with respect to assistance or other actions 
        under chapter 2 or 5 of part II of this Act, or 
        assistance, sales, or other actions under the Arms 
        Export Control Act, that to do so is vital to the 
        national security interests of the United States; and
            (B) with respect to other assistance or actions 
        that to do so is important to the national interests of 
        the United States.
    (2) The President may waive any provision described in 
paragraph (1), (2), or (3) of subsection (b) that would 
otherwise prohibit or restrict assistance or other action under 
any provision of law not described in those paragraphs if the 
President determines, and notifies in writing the Speaker of 
the House of Representatives and the chairman of the Committee 
on Foreign Relations of the Senate, that to do so is important 
to the national interests of the United States.
          * * * * * * *
    (4)(A) The authority of this subsection may not be used in 
any fiscal year to authorize--
            (i) more than [$750,000,000] $1,000,000,000 in 
        sales to be made under the Arms Export Control Act;
            (ii) the use of more than [$250,000,000] 
        $500,000,000 of funds made available for use under this 
        Act or the Arms Export Control Act; and
            (iii) the use of more than [$100,000,000] 
        $200,000,000 of foreign currencies accruing under this 
        Act or any other law.
    (B) If the authority of this subsection is used both to 
authorize a sale under the Arms Export Control Act and to 
authorize funds to be used under [the Arms Export Control Act 
or under] this Act with respect to the financing of that sale, 
then the use of the funds shall be counted against the 
limitation in subparagraph (A)(ii) and the portion, if any, of 
the sale which is not so financed shall be counted against the 
limitation in subparagraph (A)(i).
    (C) Not more than [$50,000,000] $75,000,000 of the 
$250,000,000 limitation provided in subparagraph (A)(ii) may be 
allocated to any one country in any fiscal year unless that 
country is a victim of active aggression, and not more than 
$500,000,000 of the aggregate limitation of [$1,000,000,000] 
$1,500,000,000 provided in subparagraphs (A)(i) and (A)(ii) may 
be allocated to any one country in any fiscal year.
    [(b) Whenever the President determines it to be important 
to the national interest, he may use funds available for the 
purposes of chapter 4 of part I in order to meet the 
responsibilities or objectives of the United States in Germany, 
including West Berlin, and without regard to such provisions of 
law as he determines should be disregarded to achieve this 
purpose.
    [(c) The President is authorized to use amounts not to 
exceed $50,000,000 of the funds made available under this Act 
pursuant to his certification that it is inadvisable to specify 
the nature of the use of such funds, which certification shall 
be deemed to be a sufficient voucher for such amounts. The 
President shall fully inform the chairman and ranking minority 
member of the Committee on Foreign Affairs of the House of 
Representatives and the chairman and ranking minority member of 
the Committee on Foreign Relations of the Senate of each use of 
funds under this subsection prior to the use of such funds.]
    (b) Laws Which May Be Waived.--The provisions referred to 
in paragraphs (1) and (2) of subsection (a) are--
            (1) the provisions of this Act;
            (2) the provisions of the Arms Export Control Act;
            (3) the provisions of any annual (or periodic) 
        foreign assistance authorization or appropriations 
        legislation, including any amendment made by any such 
        Act;
            (4) any other provision of law that restricts 
        assistance, sales or leases, or other action under the 
        Acts referred to in paragraph (1), (2), or (3); and
            (5) any law relating to receipts and credits 
        accruing to the United States.
          * * * * * * *
    [Sec. 617. Termination of Assistance.--Assistance under any 
provision of this Act may, unless sooner terminated by the 
President, be terminated by concurrent resolution. Funds made 
available under this Act shall remain available for a period 
not to exceed eight months from the date of termination of 
assistance under this Act for the necessary expenses of winding 
up programs related thereto. In order to ensure the 
effectiveness of assistance under this Act, such expenses for 
orderly termination of programs may include the obligation and 
expenditure of funds to complete the training or studies 
outside their countries of origin of students whose course of 
study or training program began before assistance was 
terminated.]

SEC. 617. TERMINATION OF ASSISTANCE.

    (a) In General.--(1) In order to ensure the effectiveness 
of assistance provided under this Act, notwithstanding any 
other provision of law, funds made available under this Act or 
the Arms Export Control Act to carry out any program, project, 
or activity of assistance shall remain available for obligation 
for a period not to exceed 8 months after the date of 
termination of such assistance for the necessary expenses of 
winding up such programs, projects, or activities, and funds so 
obligated may remain available until expended.
    (2) Funds obligated to carry out any program, project, or 
activity of assistance before the effective date of the 
termination of such assistance are authorized to be available 
for expenditure for the necessary expenses of winding up such 
programs, projects, and activities, notwithstanding any 
provision of law restricting the expenditure of funds, and may 
be reobligated to meet any other necessary expenses arising 
from the termination of such assistance.
    (3) The necessary expenses of winding up programs, 
projects, and activities of assistance include the obligation 
and expenditure of funds to complete the training or studies 
outside their countries of origin of students whose course of 
study or training program began before assistance was 
terminated.
    (b) Liability to Contractors.--For the purpose of making an 
equitable settlement of termination claims under extraordinary 
contractual relief standards, the President is authorized to 
adopt as a contract or other obligation of the United States 
Government, and assume (in whole or in part) any liabilities 
arising thereunder, any contract with a United States or third-
country contractor to carry out any program, project, or 
activity of assistance under this Act that was subsequently 
terminated pursuant to law.
    (c) Guarantee Programs.--Provisions of this or any other 
Act requiring the termination of assistance under this Act 
shall not be construed to require the termination of guarantee 
commitments that were entered into before the effective date of 
the termination of assistance.
          * * * * * * *
    Sec. 620. Prohibitions Against Furnishing Assistance.--(a) 
* * *
          * * * * * * *
    (v) None of the funds made available to carry out this Act 
shall be available to any private and voluntary organization 
which--
            (1) fails to provide upon timely request any 
        document, file, or record necessary to the auditing 
        requirements of the United States Agency for 
        International Development; or
            (2) is not registered with the United States Agency 
        for International Development.
          * * * * * * *
    (y)(1) Except as provided in paragraph (2), the President 
shall withhold from amounts made available under this Act or 
any other Act and allocated for a country for a fiscal year an 
amount equal to the aggregate value of nuclear fuel and related 
assistance and credits provided by that country, or any entity 
of that country, to Cuba during the preceding fiscal year.
    (2) The requirement to withhold assistance for a country 
for a fiscal year under paragraph (1) shall not apply if Cuba--
                    (A) has ratified the Treaty on the Non-
                Proliferation of Nuclear Weapons (21 UST 483) 
                or the Treaty of Tlatelelco, and Cuba is in 
                compliance with the requirements of either such 
                Treaty;
                    (B) has negotiated and is in compliance 
                with full-scope safeguards of the International 
                Atomic Energy Agency not later than two years 
                after ratification by Cuba of such Treaty; and
                    (C) incorporates and is in compliance with 
                internationally accepted nuclear safety 
                standards.
    (3) The Secretary of State shall prepare and submit to the 
Congress each year a report containing a description of the 
amount of nuclear fuel and related assistance and credits 
provided by any country, or any entity of a country, to Cuba 
during the preceding year, including the terms of each transfer 
of such fuel, assistance, or credits.

SEC. [620G.] 620J. DEPLETED URANIUM AMMUNITION.

    (a) Prohibition.--Except as provided in subsection (b), 
none of the funds made available to carry out this Act or any 
other Act may be made available to facilitate in any way the 
sale of M-833 antitank shells or any comparable antitank shells 
containing a depleted uranium penetrating component to any 
country other than--
            (1) a country that is a member of the North 
        Atlantic Treaty Organization;
            (2) a country that has been designated as a major 
        non-NATO ally (as defined in section 644(q)); or
            (3) Taiwan.
    (b) Exception.--The prohibition contained in subsection (a) 
shall not apply with respect to the use of funds to facilitate 
the sale of antitank shells to a country if the President 
determines that to do so is in the national security interest 
of the United States.

SEC. 620K. FOREIGN GOVERNMENT PARKING FINES.

    (a) In General.--An amount equivalent to 110 percent of the 
total unpaid fully adjudicated parking fines and penalties owed 
to the District of Columbia, Virginia, Maryland, New York, and 
New York City by the government of a foreign country as of the 
end of a fiscal year, as certified and transmitted to the 
President by the chief executive officer of each State, City, 
or District, shall be withheld from obligation for such country 
out of funds available in the next fiscal year to carry out 
part I of this Act, until the requirement of subsection (b) is 
satisfied.
    (b) Requirement.--The requirement of this subsection is 
satisfied when the Secretary of State determines and certifies 
to the appropriate congressional committees that such fines and 
penalties are fully paid to the governments of the District of 
Columbia, Virginia, Maryland, and New York.
    (c) Appropriate Congressional Committees Defined.--For 
purposes of this section, the term ``appropriate congressional 
committees'' means the Committee on International Relations and 
the Committee on Appropriations of the House of Representatives 
and the Committee on Foreign Relations and the Committee on 
Appropriations of the Senate.
          * * * * * * *

                  Chapter 2--Administrative Provisions

          * * * * * * *
    [Sec. 634. Annual Report.--(a) In order that the Congress 
and the American people may be better and more currently 
informed regarding American foreign policy and the 
effectiveness of assistance provided by the United States 
Government to other countries and to international 
organizations, the Chairman of the Development Coordination 
Committee shall prepare and transmit to the Congress, no later 
than February 1 of each year, as a part of the annual 
presentation materials for foreign assistance, a report as 
described in this subsection. This report shall include--
            [(1)(A) a comprehensive and coordinated review of 
        all United States policies and programs having a major 
        impact on the development of developing countries, 
        including but not limited to bilateral and multilateral 
        assistance, trade, debt, employment, food, energy, 
        technology, population, oceans, environment, human 
        settlements, natural resources, and participation in 
        international agencies concerned with development;
            [(B) an assessment of the impact of such policies 
        and programs on the well-being of the poor majority in 
        developing countries in accordance with the policy 
        objectives of chapter 1 of part I, including increasing 
        life expectancy and literacy, lowering infant mortality 
        and birth rates, and increasing food production and 
        employment, such assessment to include an evaluation of 
        the extent to which programs under chapter 1 of part I 
        directly benefit the poor majority; and
            [(C) an assessment of the impact of such policies 
        and programs on economic conditions in the United 
        States, including but not limited to employment, wages, 
        and working conditions;
            [(2) the dollar value of all foreign assistance and 
        guaranties by category and by country provided or made 
        by the United States Government by any means to all 
        foreign countries and international organizations--
                    [(A) from 1946 to the fiscal year 
                immediately preceding the fiscal year for which 
                the report is required;
                    [(B) as presented to Congress for the 
                immediate preceding fiscal year;
                    [(C) as obligated during the immediately 
                preceding fiscal year;
                    [(D) as planned for the fiscal year in 
                which the report is presented;
                    [(E) as proposed for the fiscal year 
                following the year in which the report is 
                presented; and
                    [(F) of any contract in excess of $100,000 
                administered by the Agency for International 
                Development which was entered into in the 
                preceding fiscal year without competitive 
                selection procedures, and the reasons for doing 
                so;
            [(3) a summary of repayments, by country, to the 
        United States from previous foreign assistance loans;
            [(4) the status of each sale of agricultural 
        commodities on credit terms theretofore made under the 
        Agricultural Trade Development and Assistance Act of 
        1954 with respect to which there remains outstanding 
        any unpaid obligation; and the status of each 
        transaction with respect to which a loan, contract or 
        guarantee of insurance, or extension of credit (or 
        participation therein) was theretofore made under the 
        Export-Import Bank Act of 1945 with respect to which 
        there remains outstanding any unpaid obligation or 
        potential liability; except that such report shall 
        include individually only any loan, contract, sale, 
        extension of credit, or other transactions listed in 
        this paragraph which is in excess of $1,000,000;
            [(5)(A) the status of the debt servicing capacity 
        of each country receiving assistance under this Act;
            [(B) all forms of debt relief granted by the United 
        States with respect to such countries, together with a 
        detailed statement of the specific debt relief granted 
        with respect to each such country and the purpose for 
        which it was granted; and
            [(C) a summary of the net aid flow from the United 
        States to such countries, taking into consideration the 
        debt relief granted by the United States;
            [(6) the dollar value of all official development 
        assistance, security assistance, international disaster 
        assistance, refugee assistance, and international 
        narcotic control assistance provided by each government 
        of a country which is a member of the Organization for 
        Economic Cooperation and Development or of the 
        Organization of Petroleum Exporting Countries;
            [(7) the percentage which each type of assistance 
        described in paragraph (6) represents of (A) the gross 
        national product of each country referred to in 
        paragraph (6), and (B) the budget of the government of 
        such country, as well as the per capita contribution 
        for each country for each type of assistance described 
        in paragraph (6);
            [(8) the amount of all foreign currencies acquired 
        without payment of dollars on hand of each foreign 
        country as of September 30 of the preceding fiscal 
        year;
            [(9) the Development Coordination Committee's 
        operations pursuant to section 640B(f) of this Act;
            [(10) the aggregate dollar value and quantity of 
        grant military assistance, military education and 
        training, and any other defense articles and services 
        furnished under this Act by the United States to each 
        foreign country and international organization for the 
        preceding fiscal year;
            [(11) information concerning the activities of the 
        Minority Resource Center during the preceding fiscal 
        year; and
            [(12) other information appropriate to the conduct 
        of the foreign assistance program of the United States 
        Government.
    [(b) For purposes of this section--
            [(1) ``foreign assistance'' means any tangible or 
        intangible item provided by the United States 
        Government to a foreign country or international 
        organization under this or any other Act, including but 
        not limited to any training, service, or technical 
        advice, any item of real, personal, or mixed property, 
        any agricultural commodity, United States dollars, and 
        any currencies of any foreign country which are owned 
        by the United States Government; and
            [(2) ``provided by the United States Government'' 
        includes, but is not limited to, foreign assistance 
        provided by means of gift, loan, sale, credit, or 
        guaranty.]

SEC. 634. CONGRESSIONAL PRESENTATION DOCUMENTS.

    (a) Requirement for Submission.--As part of the annual 
requests for enactment of authorizations and appropriations for 
foreign assistance programs for each fiscal year, the President 
shall prepare and transmit to the Congress annual congressional 
presentation documents for the programs authorized under this 
Act and the Arms Export Control Act (22 U.S.C. 2751 et seq.).
    (b) Materials To Be Included.--The documents submitted 
pursuant to subsection (a) shall include--
            (1) the rationale and direct United States national 
        interest for the allocation of assistance or 
        contributions to each country, regional, or centrally- 
        funded program, or organization, as the case may be;
            (2) a description of how each such program or 
        contribution supports the objectives of this Act or the 
        Arms Export Control Act, as the case may be;
            (3) a description of planned country, regional, or 
        centrally-funded programs or contributions to 
        international organizations and programs for the coming 
        fiscal year; and
            (4) for each country for which assistance is 
        requested under this Act or the Arms Export Control 
        Act--
                    (A) the total number of years since 1946 
                that the United States has provided assistance;
                    (B) the total amount of bilateral 
                assistance provided by the United States since 
                1946, including the principal amount of all 
                loans, credits, and guarantees; and
                    (C) the total amount of assistance provided 
                to such country from all multilateral 
                organizations to which the United States is a 
                member, including all international financial 
                institutions, the United Nations, and other 
                international organizations.
    (c) Graduation From Development Assistance.--
            (1) Determination.--As part of the congressional 
        presentation documents transmitted to the Congress 
        under this section, the President shall make a separate 
        determination for each country identified in such 
        documents for which bilateral development assistance is 
        requested, estimating the year in which each such 
        country will no longer be receiving bilateral 
        development assistance.
            (2) Development assistance defined.--For purposes 
        of this section, the term ``development assistance'' 
        means assistance under--
                    (A) chapter 1 of part I of this Act;
                    (B) chapter 10 of part I of this Act;
                    (C) chapter 11 of part I of this Act; and
                    (D) the Support for East European Democracy 
                (SEED) Act of 1989 (22 U.S.C. 5401 et seq.).
          * * * * * * *

                  Chapter 3--Miscellaneous Provisions

          * * * * * * *

SEC. 661. TRADE AND DEVELOPMENT AGENCY.

    (a) * * *
          * * * * * * *
    (f) Funding.--
            [(1) Authorization.--(A) There are authorized to be 
        appropriated for purposes of this section, in addition 
        to funds otherwise available for such purposes, 
        $77,000,000 for fiscal year 1995 and such sums as are 
        necessary for fiscal year 1996.]
            (1) Authorization.--(A) There are authorized to be 
        appropriated for purposes of this section, in addition 
        to funds otherwise available for such purposes, 
        $43,000,000 for each of the fiscal years 1998 and 1999.
          * * * * * * *
    Sec. 667. Operating Expenses.--(a) There are authorized to 
be appropriated to the President, in addition to funds 
otherwise available for such purposes--
            [(1) $387,000,000 for the fiscal year 1986 and 
        $387,000,000 for the fiscal year 1987 for necessary 
        operating expenses of the agency primarily responsible 
        for administering part I of this Act, of which 
        $21,750,000 for the fiscal year 1987 is authorized for 
        the necessary operating expenses of the Office of the 
        Inspector General of the Agency for International 
        Development and the remaining amount for the fiscal 
        year is authorized for other necessary operating 
        expenses of that agency and]
            (1) $473,000,000 for fiscal year 1998 and 
        $465,000,000 for fiscal year 1999 for necessary 
        operating expenses of the United States Agency for 
        International Development (other than the Office of the 
        Inspector General of such agency);
            (2) $29,047,000 for each of the fiscal years 1998 
        and 1999 for necessary operating expenses of the Office 
        of the Inspector General of such agency; and
            [(2)] (3) such amounts as may be necessary for 
        increases in salary, pay, retirement, and other 
        employee benefits authorized by law, and for other 
        nondiscretionary costs of such agency.
          * * * * * * *

            PART IV--ENTERPRISE FOR THE AMERICAS INITIATIVE

          * * * * * * *

SEC. 711. AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES.

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


 FREEDOM FOR RUSSIA AND EMERGING EURASIAN DEMOCRACIES AND OPEN MARKETS 
           SUPPORT ACT OF 1992'' OR THE ``FREEDOM SUPPORT ACT

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:
Sec. 1. Short titles.
     * * * * * * *

    TITLE V--NONPROLIFERATION AND DISARMAMENT PROGRAMS AND ACTIVITIES

     * * * * * * *
[Sec. 504. Nonproliferation and disarmament fund.]
     * * * * * * *

   TITLE V--NONPROLIFERATION AND DISARMAMENT PROGRAMS AND ACTIVITIES

          * * * * * * *

[SEC. 504. NONPROLIFERATION AND DISARMAMENT FUND.

    [(a) Authorization.--The President is authorized to promote 
bilateral and multilateral nonproliferation and disarmament 
activities--
            [(1) by supporting the dismantlement and 
        destruction of nuclear, biological, and chemical 
        weapons, their delivery systems, and conventional 
        weapons;
            [(2) by supporting bilateral and multilateral 
        efforts to halt the proliferation of nuclear, 
        biological, and chemical weapons, their delivery 
        systems, related technologies, and other weapons, 
        including activities such as--
                    [(A) the storage, transportation, and 
                safeguarding of such weapons, and
                    [(B) the purchase, barter, or other 
                acquisition of such weapons or materials 
                derived from such weapons;
            [(3) by establishing programs for safeguarding 
        against the proliferation of nuclear, biological, 
        chemical, and other weapons of the independent states 
        of the former Soviet Union;
            [(4) by establishing programs for preventing 
        diversion of weapons-related scientific and technical 
        expertise of the independent states to terrorist groups 
        or to third countries;
            [(5) by establishing science and technology centers 
        in the independent states for the purpose of engaging 
        weapons scientists and engineers of the independent 
        states (in particular those who were previously 
        involved in the design and production of nuclear, 
        biological, and chemical weapons) in productive, 
        nonmilitary undertakings; and
            [(6) by establishing programs for facilitating the 
        conversion of military technologies and capabilities 
        and defense industries of the former Soviet Union into 
        civilian activities.
    [(b) Funding Priorities.--Priority in carrying out this 
section shall be given to the activities described in 
paragraphs (1) through (5) of subsection (a).
    [(c) Use of Security Assistance Funds.--
            [(1) Authorization.--In recognition of the direct 
        contributions to the national security interests of the 
        United States of the programs and activities authorized 
        by subsection (a), the President is authorized to make 
        available for use in carrying out those programs and 
        activities, in addition to amounts otherwise available 
        for such purposes, up to $100,000,000 of security 
        assistance funds for fiscal year 1993.
            [(2) Definition.--As used in paragraph (1), the 
        term ``security assistance funds'' means funds made 
        available for assistance under chapter 4 of part II of 
        the Foreign Assistance Act of 1961 (relating to the 
        Economic Support Fund) or assistance under section 23 
        of the Arms Export Control Act (relating to the 
        ``Foreign Military Financing Program'').
            [(3) Exemption from certain restrictions.--Section 
        531(e) of the Foreign Assistance Act of 1961, and any 
        provision that corresponds to section 510 of the 
        Foreign Operations, Export Financing, and Related 
        Programs Appropriations Act, 1991 (relating to the 
        prohibition on financing exports of nuclear equipment, 
        fuel, and technology), shall not apply with respect to 
        funds used pursuant to this subsection.]
          * * * * * * *
                              ----------                              


                SECTION 105 OF THE ACT OF JULY 21, 1996

AN ACT To amend the Foreign Assistance Act of 1961 and the Arms Export 
   Control Act to make improvements to certain defense and security 
 assistance provisions under those Acts, to authorize the transfer of 
  naval vessels to certain foreign countries, and for other purposes.

SEC. 105. EXCESS DEFENSE ARTICLES FOR CERTAIN EUROPEAN COUNTRIES.

    Notwithstanding section 516(e) of the Foreign Assistance 
Act of 1961, as added by this Act, during each of the fiscal 
years [1996 and 1997] 1998 and 1999, funds available to the 
Department of Defense may be expended for crating, packing, 
handling, and transportation of excess defense articles 
transferred under the authority of section 516 of such Act to 
countries that are eligible to participate in the Partnership 
for Peace and that are eligible for assistance under the 
Support for East European Democracy (SEED) Act of 1989.
                              ----------                              


               SECTION 25 OF THE ARMS EXPORT CONTROL ACT

    Sec. 25. Annual Estimate and Justification for Sales 
Program.--(a) * * *
          * * * * * * *
    [(d)] (e) For the purposes of subsection (a)(5)(B) of this 
section, the term ``cash flow financing'' means the dollar 
amount of the difference between the total estimated price of a 
Letter of Offer and Acceptance or other purchase agreement that 
has been approved for financing under this Act or under section 
503(a)(3) of the Foreign Assistance Act of 1961 and the amount 
of the financing that has been approved therefor[;].
    (f) For each country that has been approved for cash flow 
financing (as defined in subsection (e)) under section 23 of 
this Act (relating to the ``Foreign Military Financing 
Program''), any letter of offer and acceptance or other 
purchase agreement, or any amendment thereto, for a procurement 
in excess of $100,000,000 that is to be financed in whole or in 
part with funds made available under this Act shall be 
submitted in accordance with the procedures applicable to 
reprogramming notifications pursuant to section 634A of this 
Act and through the regular notification procedures of the 
Committee on Appropriations.
                              ----------                              


               ANGLO-IRISH AGREEMENT SUPPORT ACT OF 1986

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Anglo-Irish Agreement 
Support Act of 1986''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) * * *
    (b) Purposes.--It is, therefore, the purpose of this Act to 
provide for United States contributions in support of the 
Anglo-Irish Agreement, such contributions to consist of 
economic support fund assistance for payment to the 
International Fund established pursuant to the Anglo-Irish 
Agreement, as well as other assistance to serve as an incentive 
for economic development and reconciliation in Ireland and 
Northern Ireland. The purpose of these United States 
contributions shall be to support the Anglo-Irish Agreement in 
promoting reconciliation in Northern Ireland and the 
establishment of a society in Northern Ireland in which all may 
live in peace, free from discrimination, terrorism, and 
intolerance, and with the opportunity for both communities to 
participate fully in the structures and processes of 
government. United States contributions shall be used in a 
manner that effectively increases employment opportunities in 
communities with rates of unemployment significantly higher 
than the local or urban average of unemployment in Northern 
Ireland. In addition, such contributions shall be used to 
benefit individuals residing in such communities.
          * * * * * * *

SEC. 5. CONDITIONS AND UNDERSTANDINGS RELATING TO THE UNITED STATES 
                    CONTRIBUTIONS.

    (a) Promoting Economic and Social Reconstruction and 
Development.--[The United States]
            (1) In general.--The United States contributions 
        provided for [in this Act may be used] in this Act--
                    (A) may be used only to support and promote 
                economic and social reconstruction and 
                development in Ireland and Northern Ireland[.]; 
                and
                    (B) may be provided to an individual or 
                entity in Northern Ireland only if such 
                individual or entity is in compliance with the 
                principles of economic justice.
            (2) Additional requirements.--The restrictions 
        contained in sections 531(e) and 660(a) of the Foreign 
        Assistance Act of 1961 apply with respect to any such 
        contributions.
          * * * * * * *
    (c) Prior Certifications.--Each fiscal year, the United 
States may make contributions to the International Fund only if 
the President certifies to the Congress that he is satisfied 
that--
            (1) * * *
          * * * * * * *
            (2) disbursements form the International Fund--
                    (A) will be distributed in accordance with 
                the [principle of equality of opportunity and 
                nondiscrimination in employment, without regard 
                to religious affiliation; and] principles of 
                economic justice; and
                    (B) will address the needs of both 
                communities in Northern Ireland and will create 
                employment opportunities in regions and 
                communities of Northern Ireland suffering the 
                highest rates of unemployment.
Each such certification shall include a detailed explanation of 
the basis for the President's decision.

SEC. 6. ANNUAL REPORTS.

    At the end of each fiscal year in which the United States 
Government makes any contribution to the International Fund, 
the President shall report to the Congress on the degree to 
which--
            (1) the International Fund has contributed to 
        reconciliation between the communities in Northern 
        Ireland;
            (2) the United States contribution to the 
        International Fund is meeting its objectives of 
        encouraging new investment, job creation, and economic 
        reconstruction on the basis of strict equality of 
        opportunity; [and]
            (3) the International Fund has increased respect 
        for the human rights and fundamental freedoms of all 
        people in Northern Ireland[.]; and
            (4) each individual or entity receiving assistance 
        from United States contributions to the International 
        Fund has agreed in writing to comply with the 
        principles of economic justice.

SEC. 7. REQUIREMENTS RELATING TO FUNDS FOR ``INTERNATIONAL 
                    ORGANIZATIONS AND CONFERENCES''.

    (a) * * *
          * * * * * * *
    (c) Prohibition.--Nothing included herein shall require 
quotas or reverse discrimination or mandate their use.

SEC. 8. DEFINITIONS.

    As used in this Act--
            (1) the term ``Anglo-Irish Agreement'' means the 
        Agreement Between the Government of Ireland and the 
        Government of the United Kingdom dated November 15, 
        1985; [and]
            (2) the term ``International Fund'' means the 
        international fund for economic development projects in 
        Northern Ireland and Ireland, established pursuant to 
        Article 10 of the Anglo-Irish Agreement[.];
            (3) the term ``Northern Ireland'' includes the 
        counties of Antrim, Armagh, Derry, Down, Tyrone, and 
        Fermanagh; and
            (4) the term ``principles of economic justice'' 
        means the following principles:
                    (A) Increasing the representation of 
                individuals from underrepresented religious 
                groups in the workforce, including managerial, 
                supervisory, administrative, clerical, and 
                technical jobs.
                    (B) Providing adequate security for the 
                protection of minority employees at the 
                workplace.
                    (C) Banning provocative sectarian or 
                political emblems from the workplace.
                    (D) Providing that all job openings be 
                advertised publicly and providing that special 
                recruitment efforts be made to attract 
                applicants from underrepresented religious 
                groups.
                    (E) Providing that layoff, recall, and 
                termination procedures do not favor a 
                particular religious group.
                    (F) Abolishing job reservations, 
                apprenticeship restrictions, and differential 
                employment criteria which discriminate on the 
                basis of religion.
                    (G) Providing for the development of 
                training programs that will prepare substantial 
                numbers of minority employees for skilled jobs, 
                including the expansion of existing programs 
                and the creation of new programs to train, 
                upgrade, and improve the skills of minority 
                employees.
                    (H) Establishing procedures to assess, 
                identify, and actively recruit minority 
                employees with the potential for further 
                advancement.
                    (I) Providing for the appointment of a 
                senior management staff member to be 
                responsible for the employment efforts of the 
                entity and, within a reasonable period of time, 
                the implementation of the principles described 
                in subparagraphs (A) through (H).
                              ----------                              


           SECTION 401 OF THE FOREIGN ASSISTANCE ACT OF 1969

          * * * * * * *

               PART IV--THE INTER-AMERICAN FOUNDATION ACT

    Sec. 401. Inter-American Foundation.--(a) * * *
          * * * * * * *
    (s)(1) * * *
    [(2) There are authorized to be appropriated $28,800,000 
for the fiscal year 1992 and $31,000,000 for the fiscal year 
1993 to carry out this section.]
    (2)(A) There are authorized to be appropriated to the 
President to carry out programs under this section, in addition 
to amounts otherwise available for such purposes, $20,000,000 
for fiscal year 1998 and $15,000,000 for fiscal year 1999.
    (B) Amounts authorized to be appropriated under 
subparagraph (A) are authorized to remain available until 
expended.
          * * * * * * *
                              ----------                              


                            PEACE CORPS ACT

                        TITLE I--THE PEACE CORPS

                              short title

    Section 1. This Act may be cited as the ``Peace Corps 
Act''.
          * * * * * * *

                             authorization

    Sec. 3. (a) The President is authorized to carry out 
programs in furtherance of the purposes of this Act, on such 
terms and conditions as he may determine.
    [(b) Authorizations and Appropriations.--There are 
authorized to be appropriated to carry out the purposes of this 
Act $218,146,000 for fiscal year 1993, which are authorized to 
remain available until September 30, 1994.]
    (b)(1) There are authorized to be appropriated to carry out 
the purposes of this Act $222,000,000 for fiscal year 1998 and 
$225,000,000 for fiscal year 1999.
    (2) Amounts authorized to be appropriated under paragraph 
(1)--
            (A) with respect to fiscal year 1998 are authorized 
        to remain available until September 30, 1999; and
            (B) with respect to fiscal year 1999 are authorized 
        to remain available until September 30, 2000.
          * * * * * * *

                         peace corps volunteers

    Sec. 5. (a) * * *
          * * * * * * *
    (f)(1) Any period of satisfactory service of a volunteer 
under this Act shall be credited in connection with subsequent 
employment in the same manner as a like period of civilian 
employment by the United States Government.--
            (A) for the purposes of section 816(a) of the 
        Foreign Service Act of 1980 and every other Act 
        establishing a retirement system for civilian employees 
        of any United States Government agency; and
            (B) except as otherwise determined by the 
        President, for the purposes of determining seniority, 
        reduction in force, and layoff rights, leave 
        entitlement, and other rights and privileges based upon 
        length of service under the laws administered by the 
        [Civil Service Commission] Office of Personnel 
        Management, the Foreign Service Act of 1980, and every 
        other Act establishing or governing terms and 
        conditions of service of civilian employees of the 
        United States Government: Provided, That service of a 
        volunteer shall not be credited toward completion of 
        any probationary or trial period or completion of any 
        service requirement for career appointment.
          * * * * * * *
    (h) Volunteers shall be deemed employees of the United 
States Government for the purposes of the Federal Tort Claims 
Act and any other Federal tort liability statute, [the Federal 
Voting Assistance Act of 1955 (5 U.S.C. 2171 et seq.), the Act 
of June 4, 1954, chapter 264, section 4 (5 U.S.C. 73b-75), the 
Act of December 23, 1944, chapter 716, section 1, as amended 
(31 U.S.C. 492a), section 5584 of title 5, United States Code 
(and readjustment allowances paid under this Act shall be 
considered as pay for purposes of such section, and section 1 
of the Act of June 4, 1920 (41 Stat. 750), as amended (22 
U.S.C. 214).] sections 5584 and 5732 of title 5, United States 
Code (and readjustment allowances paid under this Act shall be 
considered as pay for purposes of such section 5732), section 1 
of the Act of June 4, 1920 (22 U.S.C. 214), and section 3342 of 
title 31, United States Code.
          * * * * * * *
    (j) Upon enrollment in the Peace Corps, every volunteer 
shall take the oath prescribed for persons appointed to any 
office of honor or profit by [section 1757 of the Revised 
Statutes of the United States, as amended (5 U.S.C. 16) and 
shall swear (or affirm) that he does not advocate the overthrow 
of our constitutional form of government in the United States, 
and that he is not a member of an organization that advocates 
the overthrow of our constitutional form of government in the 
United States, knowing that such organization so advocates.] 
section 3331 of title 5, United States Code.
          * * * * * * *

                     general powers and authorities

    Sec. 10. (a) In the furtherance of the purposes of this 
Act, the President may--
            (1) * * *
          * * * * * * *
            (4) accept in the name of the Peace Corps and 
        employ or transfer in furtherance of the purposes of 
        this Act (A) voluntary services notwithstanding the 
        provisions of [31 U.S.C. 665(b)] section 1342 of title 
        31, United States Code, and (B) any money or property 
        (real, personal or mixed, tangible or intangible) 
        received by gift, devise, bequest, or otherwise; and
            (5) contract with individuals for personal services 
        abroad, and with aliens (abroad or within the United 
        States) for personal services within the United 
        States[: Provided, That no such person shall be deemed 
        an officer or employee or otherwise in the service or 
        employment of the United States Government for any 
        purpose.], except that such individuals shall not be 
        deemed employees for the purpose of any law 
        administered by the Office of Personnel Management.
          * * * * * * *

                          utilization of funds

    Sec. 15. (a) * * *
          * * * * * * *
    (c) Funds available under this Act may be used to pay costs 
of training employees employed or assigned pursuant to section 
7(a)(2) of this Act (through interchange or otherwise) at any 
State or local unit of government, public or private nonprofit 
institution, trade, labor, agricultural, or scientific 
association or organization, or commercial firms and the 
provisions of [Public Law 84-918 (7 U.S.C. 1881 et seq.)] 
subchapter VI of chapter 33 of title 5, United States Code (5 
U.S.C. 3371 et seq.) may be used to carry out the foregoing 
authority notwithstanding that interchange of personnel may not 
be involved or that the training may not take place at the 
institutions [specified in that Act] or other organizations 
specified in section 3372(b) of such title. Any payments or 
contributions in connection therewith may, as deemed 
appropriate by the head of the agency of the United States 
Government authorizing such training, be made by private or 
public sources and be accepted by any trainee, or may be 
accepted by and credited to the current applicable 
appropriation of such agency: Provided, however, That any such 
payments to an employee in the nature of compensation shall be 
in lieu, or in reduction, of compensation received from the 
United States Government.
    (d) Funds available for the purposes of this Act shall be 
available for--
            (1) rent of buildings and space in buildings in the 
        United States, and for repair, alteration, and 
        improvement of such leased properties;
            (2) expenses of attendance at meetings concerned 
        with the purposes of this Act, including 
        (notwithstanding the provisions of [section 9 of Public 
        Law 60-328 (31 U.S.C. 673)] section 1346 of title 31, 
        United States Code) expenses in connection with 
        meetings of persons whose employment is authorized by 
        section 13(a) of this Act;
          * * * * * * *
            (6) exchange of funds [without regard to section 
        3561 of the Revised Statutes (31 U.S.C. 543)] and loss 
        by exchange;
          * * * * * * *
            (11) use in accordance with authorities of the 
        [Foreign Service Act of 1946, as amended (22 U.S.C. 801 
        et seq.),] Foreign Service Act of 1980 (22 U.S.C. 3901 
        et seq.) not otherwise provided for; [and]
            (12) ice and drinking water for use abroad[.]; and
            (13) the transportation of Peace Corps employees, 
        Peace Corps volunteers, dependents of employees and 
        volunteers, and accompanying baggage, by a foreign air 
        carrier when the transportation is between 2 places 
        outside the United States without regard to section 
        40118 of title 49, United States Code.
          * * * * * * *
    (e) Funds made available for the purposes of this Act may 
not be used to pay for abortions.
          * * * * * * *
                              ----------                              


     CUBAN LIBERTY AND DEMOCRATIC SOLIDARITY (LIBERTAD) ACT OF 1996

          * * * * * * *

   TITLE I--STRENGTHENING INTERNATIONAL SANCTIONS AGAINST THE CASTRO 
                               GOVERNMENT

          * * * * * * *

SEC. 109. AUTHORIZATION OF SUPPORT FOR DEMOCRATIC AND HUMAN RIGHTS 
                    GROUPS AND INTERNATIONAL OBSERVERS.

    (a) * * *
          * * * * * * *
    (d) Local Assistance.--
            (1) In general.--For the purposes of providing 
        assistance to independent nongovernmental organizations 
        and individuals in Cuba as authorized by subsection 
        (a), amounts made available under such subsection may 
        be used for assistance to individuals and 
        nongovernmental organizations in Cuba and for local 
        costs incurred in delivering such assistance.
            (2) Certification.--A certification by a 
        representative of a United States or local 
        nongovernmental organization, or other entity, 
        administering assistance described in paragraph (1), 
        that such assistance is being used for its intended 
        purpose, shall be deemed to satisfy any accountability 
        requirement of the United States Agency for 
        International Development for the administration of 
        such assistance.
          * * * * * * *

                 TITLE IV--EXCLUSION OF CERTAIN ALIENS

SEC. 401. EXCLUSION FROM THE UNITED STATES OF ALIENS WHO HAVE 
                    CONFISCATED PROPERTY OF UNITED STATES NATIONALS OR 
                    WHO TRAFFIC IN SUCH PROPERTY.

    (a) * * *
          * * * * * * *
    (e) Reports to Congress.--The Secretary of State shall, not 
later than 30 days after the date of the enactment of this 
subsection and every 3 months thereafter, submit to the 
Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the 
Senate a report on the implementation of this section. Each 
report shall include--
            (1) an unclassified list, by economic sector, of 
        the number of entities then under review pursuant to 
        this section;
            (2) an unclassified list of all entities and a 
        classified list of all individuals that the Secretary 
        of State has determined to be subject to this section;
            (3) an unclassified list of all entities and a 
        classified list of all individuals that the Secretary 
        of State has determined are no longer subject to this 
        section;
            (4) an explanation of the status of the review 
        under way for the cases referred to in paragraph (1); 
        and
            (5) an unclassified explanation of each 
        determination of the Secretary of State under 
        subsection (a) and each finding of the Secretary under 
        subsection (c)--
                    (A) since the date of the enactment of this 
                Act, in the case of the first report under this 
                subsection; and
                    (B) in the preceding 3-month period, in the 
                case of each subsequent report.
                              ----------                              


      SECTION 539 OF THE FOREIGN ASSISTANCE AND RELATED PROGRAMS 
                        APPROPRIATIONS ACT, 1987

    Sec. 539. (a) * * *
          * * * * * * *
    (g) The Administrator of the Agency for International 
Development, in conjunction with the Secretaries of Treasury 
and State, shall--
            (1) * * *
            [(2) in preparation of reviews required by 
        subsection (g)(1), compile a list of categories of 
        projects likely to have adverse impacts on the 
        environment, natural resources, or indigenous peoples. 
        The list shall be developed in consultation with 
        interested members of the public and made available to 
        the Committee on Appropriations by December 31, 1986 
        and semiannually thereafter; and]
          * * * * * * *
                              ----------                              


                 SPECIAL FOREIGN ASSISTANCE ACT OF 1986

   AN ACT To promote immunization and oral rehydration in developing 
 countries, to promote democracy in Haiti, to protect tropical forests 
    and biological diversity in developing countries, to authorize 
  increased funding for the Child Survival Fund and for international 
         narcotics control assistance, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Special Foreign Assistance 
Act of 1986''.

  [TITLE I--PROMOTING IMMUNIZATION AND ORAL REHYDRATION IN DEVELOPING 
                               COUNTRIES

[SEC. 101. FINDINGS.

    [The Congress finds that--
            [(1) the United Nations Children's Fund (UNICEF) 
        reports that 3.5 million children die annually because 
        they have not been immunized against the six major 
        childhood diseases: polio measles, whooping cough, 
        diphtheria, tetanus, and tuberculosis:
            [(2) at present less than 20 percent of the 
        children in the developing world are fully immunized 
        against these diseases;
            [(3) each year more than five million additional 
        children are permanently disabled and suffer diminished 
        capacities to contribute to the economic, social, and 
        political development of their countries because they 
        have not been immunized;
            [(4) ten million additional childhood deaths from 
        immunizable and potentially immunizable diseases could 
        be averted annually by the development of techniques in 
        biotechnology for new a cost-effective vaccines;
            [(5) the World Health Assembly, the Executive Board 
        of the United Nations Children's Fund, and the United 
        Nations General Assembly are calling upon the nations 
        of the world to commit the resources necessary to meet 
        the challenge of universal access to childhood 
        immunization by 1990;
            [(6) at the 1984 ``Bellagio Conference'' it was 
        determined that the goal of universal childhood 
        immunization by 1990 is indeed achievable; and
            [(7) the Congress has expressed its expectation 
        that the Agency for International Development will set 
        as a goal the immunization by 1990 of at least 80 
        percent of all the children in those countries in which 
        the Agency has a program.

[SEC. 102. UNITED STATES PARTICIPATION IN GLOBAL EFFORT.

    [(a) United States Government Support.--The Congress calls 
upon the President to direct the Agency for International 
Development, working through the Centers for Disease Control 
and other appropriate Federal agencies, to work in a global 
effort to provide enhanced support toward achieving the goal of 
universal access to childhood immunization by 1990 by--
            [(1) assisting in the delivery, distribution, and 
        use of vaccines, including--
                    [(A) the building of locally sustainable 
                systems and technical capacities in developing 
                countries to reach, by the appropriate age, not 
                less than 80 percent of their annually 
                projected target population with the full 
                schedule of required immunizations; and
                    [(B) the development of a sufficient 
                network of indigenous professionals and 
                institutions with responsibility for 
                developing, monitoring, and assessing 
                immunization programs and continually adapting 
                strategies to reach the goal of preventing 
                immunizable diseases; and
            [(2) performing, supporting, and encouraging 
        research and development activities, both in the public 
        and private sector, that will be targeted at developing 
        new vaccines and at modifying and improving existing 
        vaccines to make them more appropriate for use in 
        developing countries.
    [(b) Private Sector Support.--In support of this global 
effort, the President should appeal to the people of the United 
States and the United States private sector to support public 
and private efforts to provide the resources necessary to 
achieve universal access to childhood immunization by 1990.

[SEC. 103. FUNDING LEVELS.

    [(a) Earmarking.--Section 104(c)(3) of the Foreign 
Assistance Act of 1961 is amended by adding at the end thereof 
the following: ``Of the aggregate amounts made available for 
fiscal year 1987 to carry out paragraph (2) of this subsection 
(relating to the Child Survival Fund) and to carry out 
subsection (c) (relating to development assistance for health), 
$50,000,000 shall be used to carry out this paragraph.''.
    [(b) Authorization Level for Child Survival Fund.--Section 
104(c)(2)(B) of that Act is amended by striking out 
``$25,000,000 for fiscal year 1987'' and inserting in lieu 
thereof ``$75,000,000 for fiscal year 1987''.

                [TITLE II--PROMOTING DEMOCRACY IN HAITI

[SEC. 201. FINDINGS CONCERNING HAITI.

    [The Congress finds that--
            [(1) the establishment of an interim government in 
        Haiti committed to a restoration of democracy provides 
        Haiti with an opportunity to build the political, 
        social, and economic institutions necessary to promote 
        Haiti's development, to provide a better future for the 
        people of Haiti and to provide the framework for more 
        effective mutual cooperation with the United States, 
        Haiti's neighbor in the Caribbean, and the other 
        nations of the Hemisphere;
            [(2) the magnitude of the political, economic, and 
        social tasks facing the people of Haiti will make the 
        achievement of a better future a difficult task which 
        will require a determined and sustained effort by the 
        Haitian people over a long period of time and will 
        require significant external assistance from the United 
        States and other donors; and
            [(3) it is in the interest of the United States to 
        provide appropriate support for the development of 
        Haiti, a close neighbor which is one of the world's 
        poorest nations and which is committed to the 
        establishment of a democratic government.

[SEC. 202. ECONOMIC ASSISTANCE FOR HAITI.

    [(a) Earmarking of Funds.--Not less than $108,000,000 of 
the aggregate amounts available for fiscal year 1987 to carry 
out sections 103 through 106 of the Foreign Assistance Act of 
1961 (relating to development assistance), chapter 4 of part II 
of that Act (relating to the Economic Support Fund), and titles 
I and II of the Agricultural Trade Development and Assistance 
Act of 1954 (relating to the Food for Peace Program) shall be 
available only for Haiti.
    [(b) Use of Development Assistance.--Assistance under 
sections 103 through 106 of the Foreign Assistance Act of 1961 
which is provided for Haiti pursuant to subsection (a) shall be 
used to support a transition to democracy in Haiti, emphasizing 
foreign investment, job creation (especially in the private 
sector), rural development, health care and sanitation, small-
scale irrigation, reforestation and land conservation, and 
literacy education. Such assistance should reflect the need to 
distribute development assistance resources more equitably 
among the various regions in Haiti in order to support 
sustainable development in all of Haiti.
    [(c) Requirement for Segregated Account for Economic 
Support Assistance Funds Paid to Government of Haiti.--Funds 
under chapter 4 of part II of the Foreign Assistance Act of 
1961 which are made available for Haiti pursuant to subsection 
(a) may be paid to the Government of Haiti only if the 
Government of Haiti will maintain those funds in a separate 
account and not commingle them with other funds.
    [(d) Conditions on Economic Support and Development 
Assistance.--Funds may be obligated for assistance for Haiti 
under sections 103 through 106 of chapter 4 of part II of the 
Foreign Assistance Act of 1961 pursuant to subsection (a) only 
if the President determines that the interim Government of 
Haiti--
            [(1) is improving the human rights situation in 
        Haiti;
            [(2) is implementing its timetable for completion 
        of a new constitution that promotes genuine democratic 
        reforms and guarantees the fundamental principles of 
        democracy;
            [(3) is establishing a framework for free and open 
        elections leading to a democratically-elected civilian 
        government, which would include free and functioning 
        political parties and associations, free labor unions, 
        and freedom of the press;
            [(4) is cooperating fully in implementing United 
        States development, food, and other economic assistance 
        programs in Haiti (including programs for prior fiscal 
        years);
            [(5) is maintaining a system of fiscal 
        accountability to ensure that all resources allocated 
        to the development of Haiti are used in the most 
        effective and efficient manner;
            [(6) is continuing its investigation of alleged 
        human rights abuses and corruption by the Duvalier 
        government and is prosecuting, in accordance with due 
        process, those responsible for human rights abuses and 
        corruption;
            [(7) is maintaining a free and independent 
        judiciary system;
            [(8) is continuing to cooperate with the United 
        States in halting illegal emigration to the United 
        States from Haiti; and
            [(9) is encouraging private sector development.
    [(e) Inter-American Foundation.--Section 401(s)(2) of the 
Foreign Assistance Act of 1969 is amended by striking out 
``$11,969,000 for fiscal year 1987'' and inserting in lieu 
thereof ``$12,969,000 for fiscal year 1987 (not less than 
$1,000,000 of which shall be for Haiti)''.
    [(f) Additional Assistance for Economic Development in 
Haiti.--In order to assist economic development in Haiti, a 
Foreign Commercial Service officer should be assigned to the 
United States Embassy in Haiti.

[SEC. 203. MILITARY TRAINING AND OTHER NONLETHAL ASSISTANCE FOR HAITI.

    [(a) Authorization of Assistance.--Up to $4,000,000 of the 
aggregate amounts available for fiscal year 1987 to carry out 
chapter 2 of part II of the Foreign Assistance Act of 1961 
(relating to grant military assistance), chapter 5 of part II 
of that Act (relating to international military education and 
training), and the Arms Export Control Act (relating to FMS 
assistance) may be made available for Haiti for education, 
training, and other nonlethal assistance (such as 
transportation equipment, communications equipment, and 
uniforms).
    [(b) Conditions on Military Assistance.--Funds made 
available pursuant to subsection (a) may be obligated only if 
the President certifies to the Congress the following:
            [(1) The Government of Haiti has submitted a formal 
        request to the United States specifying a comprehensive 
        plan for the reform and reorganization of the mission, 
        command, and control structures of the Haitian armed 
        forces consistent with a transition to democracy, the 
        rule of law, constitutional government, and an elected 
        civilian government. Such a plan should include a 
        publicly announced commitment by the armed forces of 
        Haiti to abide by international human rights standards 
        and adoption of a code of conduct to assure adherence 
        to these standards.
            [(2) The Government of Haiti is making substantial 
        efforts--
                    [(A) to prevent the involvement of the 
                Haitian armed forces in human rights abuses and 
                corruption by removing from those forces and 
                prosecuting, in accordance with due process, 
                those military personnel responsible for the 
                human rights abuses and corruption;
                    [(B) to ensure that freedom of speech and 
                assembly are respected;
                    [(C) to conduct investigations into the 
                killings of unarmed civilians in Gonaives, 
                Martissant, and Fort Dimanche, to prosecute, in 
                accordance with due process, those responsible 
                for those killings, and to prevent any similar 
                occurrences in the future;
                    [(D) to provide education and training to 
                the Haitian armed forces with respect to 
                internationally recognized human rights and the 
                civil and political rights essential to 
                democracy, in order to enable those forces to 
                function consistent with those rights; and
                    [(E) to take steps to implement the policy 
                of the Government of Haiti requiring former 
                members of the Volunteers for National Security 
                (VSN) to turn in their weapons and to take the 
                necessary actions to enforce this requirement.
    [(c) Reports.--Not later than three months after the 
President submits his certification under subsection (b) and 
every three months thereafter, the President shall report to 
the Congress on the extent to which the actions of the 
Government of Haiti are consistent with each of the objectives 
specified in subsection (b). Half of the assistance provided 
pursuant to subsection (a) shall be withheld from delivery 
until the President submits the first such report.
    [(d) Notification to Congress.--Funds made available 
pursuant to subsection (a) may be obligated only if the 
Committee on Appropriations and the Committee on Foreign 
Affairs of the House of Representatives and the Committee on 
Appropriations and the Committee on Foreign Affairs of the 
House of Representatives and the Committee on Appropriations 
and the Committee on Foreign Relations of the Senate are 
notified fifteen days in advance.
    [(e) Relation to Existing Provision.--Assistance under 
subsection (a) may be provided notwithstanding the limitations 
contained in section 705(e) of the International Security and 
Development Cooperation Act of 1985 and is in addition to the 
assistance allowed under that section.]
          * * * * * * *

    [TITLE IV--MISCELLANEOUS PROVISIONS RELATING TO CERTAIN FOREIGN 
                          ASSISTANCE PROGRAMS

[SEC. 401. INCREASE AUTHORIZATION FOR INTERNATIONAL NARCOTICS CONTROL 
                    PROGRAMS.

    [Section 482(a)(1) of the Foreign Assistance Act of 1961 is 
amended by striking out ``$57,529,000 for the fiscal year 
1987'' and inserting in lieu thereof ``$65,445,000 for the 
fiscal year 1987''.

[SEC. 402. AUTHORIZING A SEPARATE LINE ITEM APPROPRIATION FOR THE 
                    INSPECTOR GENERAL OF THE AGENCY FOR INTERNATIONAL 
                    DEVELOPMENT.

    [Section 667(a)(1) of the Foreign Assistance Act of 1961 is 
amended by inserting after ``Act'' the following: ``, of which 
$21,750,000 for the fiscal year 1987 is authorized for the 
necessary operating expenses of the Office of the Inspector 
General of the Agency for International Development and the 
remaining amount for the fiscal year is authorized for other 
necessary operating expenses of that agency''.

[SEC. 403. ADDITIONAL PROVISIONS.

    [(a) Board of the Inter-American Foundation.--Section 
401(g) of the Foreign Assistance Act of 1969 (22 U.S.C. 
290f.(g)) is amended by striking out ``seven'' in the first 
sentence and ``Four'' in the second sentence and inserting in 
lieu thereof ``nine'' and ``Six'', respectively.
    [(b) Effective Date.--The amendments made by subsection (a) 
shall take effect 120 days after the date of enactment of this 
Act.

[SEC. 404. OFFSETTING REDUCTIONS IN CERTAIN FOREIGN ASSISTANCE 
                    PROGRAMS.

    [In order to provide the increased authorizations of 
appropriations contained in section 103(b), section 202(e), and 
section 401 without increasing the overall amount authorized to 
be appropriated for foreign assistance programs for fiscal year 
1987--
            [(1) section 104(g)(1)(B) of the Foreign Assistance 
        Act of 1961 (relating to development assistance for 
        health programs) is amended by striking out 
        ``$205,000,000 for fiscal year 1987'' and inserting in 
        lieu thereof ``$180,000,000 for fiscal year 1987''; and
            [(2) section 302(a)(1) of that Act (relating to 
        international organizations and programs) is amended by 
        striking out ``$270,000,000 for fiscal year 1987'' and 
        insert in lieu thereof ``$236,084,000 for fiscal year 
        1987''.

[SEC. 405. CONFORMING AMENDMENT.

    [Paragraph (6) of section 413(a) of the Omnibus Diplomatic 
Security and Antiterrorism Act of 1986 (Public Law 99-399) is 
repealed; and the sentence of section 209(a)(1) of the Foreign 
Service Act of 1980 which was repealed by that paragraph is 
hereby re-enacted.]
                              ----------                              


     INTERNATIONAL SECURITY AND DEVELOPMENT COOPERATION ACT OF 1985

 AN ACT To authorize international development and security assistance 
 programs and Peace Corps programs for fiscal years 1986 and 1987, and 
                           for other purposes

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the 
``International Security and Development Cooperation Act of 
1985''.
          * * * * * * *

      [TITLE I--MILITARY ASSISTANCE AND SALES AND RELATED PROGRAMS

[SEC. 101. FOREIGN MILITARY SALES CREDITS.

    [(a) Authorizations of Appropriations.--The first sentence 
of section 31(a) of the Arms Export Control Act is amended to 
read as follows: ``There are authorized to be appropriated to 
the President to carry out this Act $5,371,000,000 for fiscal 
year 1986 and $5,371,000,000 for fiscal year 1987.''.
    [(b) Aggregate Ceilings and Extended Repayment Terms.--
Sections 31 (b) and (c) of such Act are amended to read as 
follows:
    [``(b)(1) The total amount of credits extended under 
section 23 of this Act shall not exceed $5,371,000,000 for 
fiscal year 1986 and $5,371,000,000 for fiscal year 1987.
    [``(2) Of the aggregate amount of financing provided under 
this section, not more than $553,900,000 for fiscal year 1986 
and not more than $553,900,000 for fiscal year 1987 may be made 
available at concessional rates of interest. If a country is 
released from its contractual liability to repay the United 
States Government with respect to financing provided under this 
section, such financing shall not be considered to be financing 
provided at concessional rates of interest for purposes of the 
limitation established by this paragraph.
    [``(c) For fiscal year 1986 and fiscal year 1987, the 
principal amount of credits provided under section 23 at market 
rates of interest with respect to Greece, the Republican of 
Korea, the Philippines, Portugal, Spain, Thailand, and Turkey 
shall (if and to the extent each country so desires) be repaid 
in not more than twenty years, following a grace period of ten 
years on repayment of principal.''.
    [(c) FMS Financing for Israel.--(1) Of the total amount of 
credits extended under section 23 of the Arms Export Control 
Act, not less than $1,800,000,000 for fiscal year 1986 and not 
less than $1,800,000,000 for fiscal year 1987 shall be 
available only for Israel.
    [(2) Israel shall be released from its contractual 
liability to repay the United States Government with respect to 
the credits provided pursuant to paragraph (1).
    [(3) If the Government of Israel requests that funds be 
used for such purposes--
            [(A) up to $150,000,000 of the amount of credits 
        made available for Israel pursuant to paragraph (1) for 
        each of the fiscal years 1986 and 1987 shall be 
        available for research and development in the United 
        States for the Lavi program, and
            [(B) not less than $250,000,000 of the amount of 
        credits made available for Israel pursuant to paragraph 
        (1) for each of the fiscal years 1986 and 1987 shall be 
        available for the procurement in Israel of defense 
        articles and defense services (including research and 
        development) for the Lavi program.
    [(d) FMS Financing for Egypt.--Of the total amount of 
credits extended under section 23 of the Arms Export Control 
Act, not less than $1,300,000,000 for fiscal year 1986 and not 
less than $1,300,000,000 for fiscal year 1987 shall be 
available only for Egypt.
    [(2) Egypt shall be released from its contractual liability 
to repay the United States Government with respect to the 
credits provided pursuant to paragraph (1).
    [(e) FMS Financing for Greece.--Of the total amount of 
credits extended under section 23 of the Arms Export Control 
Act, $500,000,000 for each of the fiscal years 1986 and 1987 
shall be available only for Greece.
    [(2) For each of the fiscal years 1986 and 1987, of the 
total amount of credits extended for Greece under section 23 of 
the Arms Export Control Act, Greece shall receive the same 
proportion of credits extended at concessional rates of 
interest as the proportion of credits extended at concessional 
rates of interest which Turkey receives out of the total amount 
of credits for Turkey under that section, and the average 
annual rate of interest on the credits extended for Greece at 
concessional rates of interest shall be comparable to the 
average annual rate of interest on the credits extended for 
Turkey at concessional rates of interest. Credits extended for 
Greece for each of the fiscal years 1986 and 1987 at 
concessional rates of interest shall not be counted toward any 
ceiling established by law on concessional financing under the 
Arms Export Control Act.
    [(f) FMS Financing and MAP for Turkey.--For each of the 
fiscal years 1986 and 1987, the aggregate total of financing 
under the Arms Export Control Act and assistance under chapter 
2 of part II of the Foreign Assistance Act of 1961 provided for 
Turkey may not exceed $714,280,000. Of this amount, up to 
$215,000,000 may be used for assistance under chapter 2 of part 
II of the Foreign Assistance Act of 1961, with the 
understanding that the United States Government is acting with 
urgency and determination to oppose any actions aimed at 
effecting a permanent bifurcation of Cyprus.

[SEC. 102. TERMS OF FOREIGN MILITARY SALES CREDITS.

    [Section 23 of the Arms Export Control Act is amended to 
read as follows:
    [``Sec. 23. Credit Sales.--(a) The President is authorized 
to finance the procurement of defense articles, defense 
services, and design and construction services by friendly 
foreign countries and international organizations, on such 
terms and conditions as he may determine consistent with the 
requirements of this section.
    [``(b) The President shall require repayment in United 
States dollars within a period not to exceed twelve years after 
the loan agreement with the country or international 
organization is signed on behalf of the United States 
Government, unless a longer period is specifically authorized 
by statute for that country or international organization.
    [``(c)(1) The President shall charge interest under this 
section at such rate as he may determine, except that such rate 
may not be less than 5 percent per year.
    [``(2) For purposes of financing provided under this 
section--
            [``(A) the term `concessional rate of interest' 
        means any rate of interest which is less than market 
        rates of interest; and
            [``(B) the term `market rate of interest' means any 
        rate of interest which is equal to or greater than the 
        current average interest rate (as of the last day of 
        the month preceding the financing of the procurement 
        under this section) that the United States Government 
        pays on outstanding marketable obligations of 
        comparably maturity.
    [``(d) References in any law to credits extended under this 
section shall be deemed to include reference to participations 
in credits.''.

[SEC. 103. MILITARY ASSISTANCE.

    [Section 504(a)(1) of the Foreign Assistance Act of 1961 is 
amended to read as follows:
    [``(a)(1) There are authorized to be appropriated to the 
President to carry out the purposes of this chapter 
$805,100,000 for fiscal year 1986 and $805,100,000 for fiscal 
year 1987.''.

[SEC. 104. INTERNATIONAL MILITARY EDUCATION AND TRAINING.

    [Section 542 of the Foreign Assistance Act of 1961 is 
amended to read as follows:
    [``Sec. 542. Authorizations of Appropriations.--There are 
authorized to be appropriated to the President to carry out the 
purposes of this chapter $56,221,000 for fiscal year 1986 and 
$56,221,000 for fiscal year 1987.''.

[SEC. 105. PEACEKEEPING OPERATIONS.

    [(a) Authorizations.--Section 552(a) of the Foreign 
Assistance Act of 1961 is amended to read as follows:
    [``(a) There are authorized to be appropriated to the 
President to carry out the purposes of this chapter, in 
addition to amounts otherwise available for such purposes, 
$37,000,000 for fiscal year 1986 and $37,000,000 for fiscal 
year 1987.''.
    [(b) Peacekeeping Operations Emergencies.--(1) Section 552 
of such Act is amended--
            [(A) by inserting in subsection (c)``(1)'' 
        immediately after ``the President may'';
            [(B) by inserting in subsection (c) immediately 
        before the period at the end of the subsection ``; and 
        (2) in the event the President also determines that 
        such unforeseen emergency requires the immediate 
        provision of assistance under this chapter, direct the 
        drawdown of commodities and services from the inventory 
        and resources of any agency of the United States 
        Government of an aggregate value not to exceed 
        $25,000,000 in any fiscal year''; and
            [(C) by inserting at the end thereof the following 
        new subsection:
    [``(d) There are authorized to be appropriated to the 
President such sums as may be necessary to reimburse the 
applicable appropriation, fund, or account for commodities and 
services provided under subsection (c)(2).''.
    [(2) Section 652 of such Act is amended by inserting ``, 
552(c)(2),'' immediately after ``under section 506(a)''.

[SEC. 106. GUARANTY RESERVE FUND.

    [(a) Report on Replenishment.--For the purpose of providing 
recommendations for improving the security interests of the 
United States and the friends and allies of the United States, 
the President shall prepare and transmit to the Congress within 
90 days after the date of enactment of this Act a report which 
sets forth the history of United States foreign military sales 
financing under the Foreign Assistance Act of 1961 and the Arms 
Export Control Act. Such report shall include recommendations 
on replenishing the Guaranty Reserve Fund under section 24 of 
the Arms Export Control Act and recommendations on other 
matters agreed to in consultation with the chairman and ranking 
minority member of the Committee on Foreign Relations of the 
Senate and of the Committee on Foreign Affairs of the House of 
Representatives.
    [(b) Additional Funds for Payment of Claims.--The second 
sentence of section 24(c) of the Arms Export Control Act is 
amended to read as follows: ``Funds authorized to be 
appropriated by section 31(a) to carry out this Act which are 
allocated for credits at market rates of interest may be used 
to pay claims under such guarantees to the extent funds in the 
Guaranty Reserve Fund are inadequate for that purpose.''.
    [(c) Designation as Guaranty Reserve Fund.--Such section is 
further amended by inserting after the first sentence the 
following new sentence: ``The single reserve may, on and after 
the date of enactment of the International Security and 
Development Cooperation Act of 1985, be referred to as the 
``Guaranty Reserve Fund.''.

[SEC. 107. VALUATION OF CERTAIN DEFENSE ARTICLES.

    [(a) Certain Naval Vessels.--Section 21(a) of the Arms 
Export Control Act is amended--
            [(1) by redesignating paragraphs (1), (2), and (3) 
        as subparagraphs (A), (B), and (C), respectively;
            [(2) by inserting ``(1)'' immediately after 
        ``(a)''; and
            [(3) by adding at the end thereof the following new 
        paragraph:
    [``(2) For purposes of subparagraph (A) of paragraph (1), 
the actual value of a naval vessel of 3,000 tons or less and 20 
years or more of age shall be considered to be not less than 
the greater of the scrap value or fair value (including 
conversion costs) of such vessel, as determined by the 
Secretary of Defense.''.
    [(b) Conforming Amendment.--Section 47 of such Act is 
amended in paragraph (2) by inserting ``, except as otherwise 
provided in section 21(a),'' after ``excess defense article''.

[SEC. 108. FULL COSTING OF FMS SALES OF TRAINING.

    [(a) FMS Sales.--Section 21(a)(1)(C) of the Arms Export 
Control Act, as so redesignated by the preceding section of 
this Act, is amended to read as follows:
            [``(C) in the case of the sale of a defense 
        service, the full cost to the United States Government 
        of furnishing such service, except that in the case of 
        training sold to a purchaser who is concurrently 
        receiving assistance under chapter 5 of part II of the 
        Foreign Assistance Act of 1961, only those additional 
        costs that are incurred by the United States Government 
        in furnishing such assistance.''.
    [(b) NATO Standardization Agreements.--Section 21 of such 
Act is amended by inserting the following new subsection after 
subsection (f):
            [``(g) The President may enter into North Atlantic 
        Treaty Organization standardization agreements in 
        carrying out section 814 of the Act of October 7, 1975 
        (Public Law 94-106), and may enter into similar 
        agreements with Japan, Australia, and New Zealand, for 
        the cooperative furnishing of training on bilateral or 
        multilateral basis, if the financial principles of such 
        agreements are based on reciprocity. Such agreements 
        shall include reimbursement for all direct costs but 
        may exclude reimbursement for indirect costs, 
        administrative surcharges, and costs of billeting of 
        trainees (except to the extent that members of the 
        United States Armed Forces occupying comparable 
        accommodations are charged for such accommodations by 
        the United States). Each such agreement shall be 
        transmitted promptly to the Speaker of the House of 
        Representatives and the Committees on Appropriations, 
        Armed Services, and Foreign Relations of the Senate.''.

[SEC. 109. ADMINISTRATIVE SURCHARGE.

    [Subparagraph (A) of section 21(e)(1) of the Arms Export 
Control Act is amended by inserting ``(excluding a pro rata 
share of fixed base operation costs)'' immediately after ``full 
estimated costs''.

[SEC. 110. CONTRACT ADMINISTRATION SERVICES.

    [Section 21(h) of the Arms Export Control Act is amended by 
inserting ``contract administration services,'' immediately 
after ``inspection,'' in the text preceding paragraph (1).

[SEC. 111. CATALOG DATA AND SERVICES.

    [Section 21(h) of the Arms Export Control Act is further 
amended--
            [(1) by inserting ``(1)'' immediately after 
        ``(h)'';
            [(2) by striking out ``(1)'' and ``(2)'' and 
        inserting in lieu thereof ``(A)'' and ``(B)'', 
        respectively; and
            [(3) by adding at the end thereof the following:
    [``(2) In carrying out the objectives of this section, the 
President is authorized to provide cataloging data and 
cataloging services, without charge, to the North Atlantic 
Treaty Organization or to any member government of that 
Organization if that Organization or member government provides 
such data and services in accordance with an agreement on a 
reciprocal basis, without charge, to the United States 
Government.''.

[SEC. 112. REPORTS ON CASH FLOW FINANCING.

    [(a) Annual Reports.--Section 25 of the Arms Export Control 
Act is amended in paragraph (5) of subsection (a)--
            [(1) by inserting ``(A)'' immediately after 
        ``(5)'';
            [(2) by adding ``and'' after the semicolon at the 
        end of paragraph; and
            [(3) by adding at the end of the paragraph the 
        following new subparagraph:
            [``(B) for each country that is proposed to be 
        furnished credits or guaranties under this Act in the 
        next fiscal year and that has been approved for cash 
        flow financing (as defined in subsection (d) of this 
        section) in excess of $100,000,000 as of October 1 of 
        the current fiscal year--
                    [``(i) the amount of such approved cash 
                flow financing,
                    [``(ii) a description of administrative 
                ceilings and controls applied, and
                    [``(iii) a description of the financial 
                resources otherwise available to such country 
                to pay such approved cash flow financing;''.
    [(b) Definition of Cash Flow Financing.--Such section is 
amended by adding at the end thereof the following new 
subsection:
    [``(d) For the purposes of subsection (a)(5)(B) of this 
section, the term `cash flow financing' means the dollar amount 
of the difference between the total estimated price of a Letter 
of Offer and Acceptance or other purchase agreement that has 
been approved for financing under this Act or under section 
503(a)(3) of the Foreign Assistance Act of 1961 and the amount 
of the financing that has been approved therefor;''.

[SEC. 113. REPORT ON INTERNATIONAL VOLUME OF ARMS TRAFFIC.

    [Section 25 of the Arms Export Control Act is amended--
            [(1) in subsection (a) by striking out ``No later 
        than February 1'' and inserting in lieu thereof 
        ``Except as provided in subsection (d) of this section, 
        no later than February 1''; and
            [(2) by adding at the end thereof the following new 
        subsection:
    [``(d) The information required by subsection (a)(4) of 
this section shall be transmitted to the Congress no later than 
April 1 of each year.''.

[SEC. 114. SECURITY ASSISTANCE SURVEYS.

    [(a) Surveys Subject to Requirements.--Section 26 of the 
Arms Export Control Act is amended.--
            [(1) in the section caption, by striking out 
        ``Defense Requirement'' and inserting in lieu thereof 
        ``Security Assistance'';
            [(2) by striking out ``defense requirement'' each 
        place it appears in the section and inserting in lieu 
        thereof ``security assistance''; and
            [(3) by adding at the end of the section the 
        following new subsection:
    [``(d) As used in this section, the term `security 
assistance surveys' means any survey or study conducted in a 
foreign country by United States Government personnel for the 
purpose of assessing the needs of that country for security 
assistance, and includes defense requirement surveys, site 
surveys, general surveys or studies, and engineering assessment 
surveys.''.
    [(b) Submission of Surveys to Congress.--Section 26(c) of 
such Act is amended by striking out ``grant that committee 
access to'' and inserting in lieu thereof ``submit to that 
committee copies of ''.

[SEC. 115. NORTH ATLANTIC TREATY ORGANIZATION COOPERATIVE PROJECTS.

    [(a) Revision of Authority.--Section 27 of the Arms Export 
Control Act is amended to read as follows:
    [``Sec. 27. North Atlantic Treaty Organization Cooperative 
Projects.--(a) The President may enter into a cooperative 
project agreement with the North Atlantic Treaty Organization 
or with one or more member countries of that Organization.
    [``(b) As used in this section--
            [``(1) the term `cooperative project' means a 
        jointly managed arrangement, described in a written 
        agreement among the parties, which is undertaken in 
        order to further the objectives of standardization, 
        rationalization, and interoperability of the armed 
        forces of North Atlantic Treaty Organization member 
        countries and which provides--
                    [``(A) for one or more of the other 
                participants to share with the United States 
                the costs of research on and development, 
                testing, evaluation, or joint production 
                (including follow-on support) of certain 
                defense articles;
                    [``(B) for concurrent production in the 
                United States and in another member country of 
                a defense article jointly developed in 
                accordance with subparagraph (A); or
                    [``(C) for procurement by the United States 
                of a defense article or defense service from 
                another member country; and
            [``(2) the term `other participant' means a 
        participant in a cooperative project other than the 
        United States.
    [``(c) Each agreement for a cooperative project shall 
provide that the United States and each of the other 
participants will contribute to the cooperative project its 
equitable share of the full cost of such cooperative project 
and will receive an equitable share of the results of such 
cooperative project. The full costs of such cooperative project 
shall include overhead and administrative costs. The United 
States and the other participants may contribute their 
equitable shares of the full cost of such cooperative project 
in funds or in defense articles or defense services needed for 
such cooperative project. Military assistance and financing 
received from the United States Government may not be used by 
any other participant to provide its share of the cost of such 
cooperative project. Such agreements shall provide that no 
requirement shall be imposed by a participant for worksharing 
or other industrial or commercial compensation in connection 
with such agreement that is not in accordance with such 
agreement.
    [``(d) The President may enter into contracts or incur 
other obligations for a cooperative project on behalf of the 
other participants, without charge to any appropriation or 
contract authorization, if each of the other participants in 
the cooperative project agrees (1) to pay its equitable share 
of the contract or other obligation, and (2) to make such funds 
available in such amounts and at such times as may be required 
by the contract or other obligation and to pay any damages and 
costs that may accrue from the performance of or cancellation 
of the contract or other obligation in advance of the time such 
payments, damages, or costs are due.
    [``(e)(1) For those cooperative projects entered into on or 
after the effective date of the International Security and 
Development Cooperation Act of 1985, the President may reduce 
or waive the charge or charges which would otherwise be 
considered appropriate under section 21(e) of this Act in 
connection with sales under sections 21 and 22 of this Act when 
such sales are made as part of such cooperative project, if the 
other participants agree to reduce or waive corresponding 
charges.
    [``(2) Notwithstanding provisions of section 21(e)(1)(A) 
and section 43(b) of this Act, administrative surcharges shall 
not be increased on other sales made under this Act in order to 
compensate for reductions or waivers of such surcharges under 
this section. Funds received pursuant to such other sales shall 
not be available to reimburse the costs incurred by the United 
States Government for which reduction or waiver is approved by 
the President under this section.
    [``(f) Not less than 30 days before a cooperative project 
agreement is signed on behalf of the United States, the 
President shall transmit to the Speaker of the House of 
Representatives, the chairman of the Committee on Foreign 
Relations of the Senate, and the chairman of the Committee on 
Armed Services of the Senate, a numbered certification with 
respect to such proposed agreement, setting forth--
            [``(1) a detailed description of the cooperative 
        project with respect to the certification is made;
            [``(2) an estimate of the quantity of the defense 
        articles expected to be produced in furtherance of such 
        cooperative project;
            [``(3) an estimate of the full cost of the 
        cooperative project, with an estimate of the part of 
        the full cost to be incurred by the United States 
        Government for its participation in such cooperative 
        project and an estimate of that part of the full costs 
        to be incurred by the other participants;
            [``(4) an estimate of the dollar value of the funds 
        to be contributed by the United States and each of the 
        other participants on behalf of such cooperative 
        project;
            [``(5) a description of the defense articles and 
        defense services expected to be contributed by the 
        United States and each of the other participants on 
        behalf of such cooperative project;
            [``(6) a statement of the foreign policy and 
        national security benefits anticipated to be derived 
        from such cooperative project; and
            [``(7) to the extent known, whether it is likely 
        that prime contracts will be awarded to particular 
        prime contractors or that subcontracts will be awarded 
        to particular subcontractors to comply with the 
        proposed agreement.
    [``(g) Section 36(b) of this Act shall not apply to sales 
made under section 21 or 22 of this Act and to production and 
exports made pursuant to cooperative projects under this 
section, and section 36(c) of this Act shall not apply to the 
issuance of licenses or other approvals under section 38 of 
this Act, if such sales are made, such production and exports 
ensue, or such licenses or approvals are issued, as part of a 
cooperative project.
    [``(h) The authority under this section is in addition to 
the authority under sections 21 and 22 of this Act and under 
any other provision of law.
    [``(i)(1) With the approval of the Secretary of State and 
the Secretary of Defense, a cooperative agreement which was 
entered into by the United States before the effective date of 
the amendment to this section made by the International 
Security and Development Cooperation Act of 1985 and which 
meets the requirements of this section as so amended may be 
treated on and after such date as having been made under this 
section as so amended.
    [``(2) Notwithstanding the amendment made to this section 
made by the International Security and Development Cooperation 
Act of 1985, projects entered into under the authority of this 
section before the effective date of that amendment may be 
carried through to conclusion in accordance with the terms of 
this section as in effect immediately before the effective date 
of that amendment.''.
    [(b) Conforming Amendments.--(1) Section 2(b) of such Act 
is amended to read as follows:
    [``(b) Under the direction of the President, the Secretary 
of State (taking into account other United States activities 
abroad, such as military assistance, economic assistance, and 
the food for peace program) shall be responsible for the 
continuous supervision and general direction of sales, leases, 
financing, cooperative projects, and exports under this Act, 
including, but not limited to, determining--
            [``(1) whether there will be a sale to or financing 
        for a country and the amount thereof;
            [``(2) whether there will be a lease to a country;
            [``(3) whether there will be a cooperative project 
        and the scope thereof; and
            [``(4) whether there will be delivery or other 
        performance under such sale, lease, cooperative 
        project, or export,
to the end that sales, financing, leases, cooperative projects, 
and exports will be integrated with other United States 
activities and to the end that the foreign policy of the United 
States would be best served thereby.''.
    [(2) Section 3(a) of such Act is amended--
            [(A) in the text preceding paragraph (1), by 
        inserting ``, and no agreement shall be entered into 
        for a cooperative project (as defined in section 27 of 
        this Act),'' after ``international organization'';
            [(B) in paragraph (2)--
                    [(i) by inserting ``, or produced in a 
                cooperative project (as defined in section 27 
                of this Act),'' after ``so furnished to it''; 
                and
                    [(ii) by inserting ``(or the North Atlantic 
                Treaty Organization or the specified member 
                countries (other than the United States) in the 
                case of a cooperative project)'' after 
                ``international organization'' the second place 
                it appears; and
            [(C) in paragraph (3), by inserting ``or service'' 
        after ``such article'' both places it appears.
    [(3) Section 42(e) of such Act is amended--
            [(A) in paragraph (1), by inserting ``, and each 
        contract entered into under section 27(d) of this 
        Act,';' after ``of this Act''; and
            [(B) in paragraph (3), by inserting, ``, or under 
        contracts entered into under section 27(d) of this 
        Act,'' after ``of this Act''.

[SEC. 116. EXCHANGE OF TRAINING AND RELATED SUPPORT.

    [The Arms Export Control Act is amended by inserting the 
following new chapter after chapter 2B:

        [``Chapter 2C--Exchange of Training and Related Support

    [``Sec. 30A. Exchange of Training and Related Support.--(a) 
Subject to subsection (b), the President may provide training 
and related support to military and civilian defense personnel 
of a friendly foreign country or an international organization. 
Such training and related support shall be provided by a 
Secretary of a military department and may include the 
provision of transportation, food services, health services, 
and logistics and the use of facilities and equipment.
    [``(b) Training and related support may be provided under 
this section only pursuant to an agreement or other arrangement 
providing for the provision by the recipient foreign country or 
international organization, on a reciprocal basis, of 
comparable training and related support to military and 
civilian personnel under the jurisdiction of the Secretary of 
the military department providing the training and related 
support under this section. Such reciprocal training and 
related support must be provided within a reasonable period of 
time (which may not be more than one year) of the provision of 
training and related support by the United States. To the 
extent that a foreign country or international organization to 
which training and related support is provided under this 
section does not provide such comparable training and related 
support to the United States within a reasonable period of 
time, that country or international organization shall be 
required to reimburse the United States for the full costs of 
the training and related support provided by the United States.
    [``(c) Training and related support under this section 
shall be provided under regulations prescribed by the 
President.
    [``(d) Not later than February 1 of each year, the 
President shall submit to the Congress a report on the 
activities conducted pursuant to this section during the 
preceding fiscal year, including the estimated full costs of 
the training and related support provided by the United States 
to each country and international organization and the 
estimated value of the training and related support provided to 
the United States by that country or international 
organization.''.

[SEC. 117. QUARTERLY REPORTS ON UNITED STATES MILITARY ADVISORS ABROAD.

    [Section 36(a)(7) of the Arms Export Control Act is amended 
to read as follows:
            [``(7) an estimate of--
                    [``(A) the number of United States military 
                personnel, the number of United States 
                Government civilian personnel, and the number 
                of United States civilian contract personnel, 
                who were in each foreign country at the end of 
                that quarter, and
                    [``(B) the number of members of each such 
                category of personnel who were in each foreign 
                country at any time during the quarter,
        in implementation of sales and commercial exports under 
        this Act or of assistance under chapter 2, 5, 6, or 8 
        of part II of the Foreign Assistance Act of 1961, 
        including both personnel assigned to the country and 
        personnel temporarily in the country by detail or 
        otherwise;''.

[SEC. 118. SENSITIVE TECHNOLOGY.

    [Section 36(b) of the Arms Export Control Act is amended--
            [(1) by inserting before the period at the end of 
        the second sentence of paragraph (1) the following: ``, 
        and a detailed justification of the reasons 
        necessitating the sale of such articles or services in 
        view of the sensitivity of such technology''; and
            [(2) by adding at the end thereof the following new 
        paragraph:
    [``(5)(A) If, before the delivery of any major defense 
article or major defense equipment, or the furnishing of any 
defense service or design and construction service, sold 
pursuant to a letter of offer described in paragraph (1), the 
sensitivity of technology or the capability of the article, 
equipment, or service is enhanced or upgraded from the level of 
sensitivity or capability described in the numbered 
certification with respect to an offer to sell such article, 
equipment, or service, then, at least 45 days before the 
delivery of such article or equipment or the furnishing of such 
service, the President shall prepare and transmit to the 
chairman of the Committee on Foreign Affairs of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate a report--
            [``(i) describing the manner in which the 
        technology or capability has been enhanced or upgraded 
        and describing the significance of such enhancement or 
        upgrade; and
            [``(ii) setting forth a detailed justification for 
        such enhancement or upgrade.
    [``(B) The provisions of subparagraph (A) apply to an 
article or equipment delivered, or a service furnished, within 
ten years after the transmittal to the Congress of a numbered 
certification with respect to the sale of such article, 
equipment, or service.
    [``(C) If the enhancement or upgrade in the sensitivity of 
technology or the capability of major defense equipment, 
defense articles, defense services, or design and construction 
services described in a numbered certification submitted under 
this subsection costs $14,000,000 or more in the case of any 
major defense equipment, $50,000,000 or more in the case of 
defense articles or defense services, or $200,000,000 or more 
in the case of design or construction services, then the 
President shall submit to the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate a new numbered certification which 
relates to such enhancement or upgrade and which shall be 
considered for purposes of this subsection as if it were a 
separate letter of offer to sell defense equipment, articles, 
or services, subject to all of the requirements, restrictions, 
and conditions set forth in this subsection. For purposes of 
this subparagraph, references in this subsection to sales shall 
be deemed to be references to enhancements or upgrades in the 
sensitivity of technology or the capability of major defense 
equipment, articles, or services, as the case may be.
    [``(D) For the purposes of subparagraph (A), the term 
`major defense article' shall be construed to include 
electronic devices, which if upgraded, would enhance the 
mission capability of a weapons system.''.

[SEC. 119. INCREASE IN CRIMINAL PENALTIES FOR CERTAIN VIOLATIONS OF THE 
                    ARMS EXPORT CONTROL ACT.

    [(a) Criminal Penalties.--Section 38(c) of the Arms Export 
Control Act is amended by striking out ``not more than $100,000 
or imprisoned not more than two years, or both'' and inserting 
in lieu thereof ``for each violation not more than $1,000,000 
or imprisoned not more than ten years, or both''.
    [(b) Civil Penalties.--Section 38(e) of such Act is amended 
by adding at the end thereof the following: ``Notwithstanding 
section 11(c) of the Export Administration Act of 1979, the 
civil penalty for each violation involving controls imposed on 
the export of defense articles and defense services under this 
section may not exceed $500,000.''.
    [(c) Effective Date.--This section shall take effect upon 
the date of enactment of this Act or October 1, 1985, whichever 
is later. The amendments made by this section apply with 
respect to violations occurring after the effective date of 
this section.

[SEC. 120. OFFICIAL RECEPTION AND REPRESENTATION EXPENSES.

    [Section 43 of the Arms Export Control Act is amended--
            [(1) in subsection (b) by inserting ``and official 
        reception and representation expenses'' immediately 
        after ``administrative expenses''; and
            [(2) by adding at the end thereof the following new 
        subsection:
    [``(c) Not more than $72,500 of the funds derived from 
charges for administrative services pursuant to section 
21(e)(1)(A) of this Act may be used each fiscal year for 
official reception and representation expenses.''.

[SEC. 121. SPECIAL DEFENSE ACQUISITION FUND.

    [(a) Continuous Orders for Certain Articles and Services.--
Section 51(a) of the Arms Export Control Act is amended by 
adding at the end thereof the following new paragraph:
    [``(3) The Fund may be used to keep on continuous order 
such defense articles and defense services as are assigned by 
the Department of Defense for integrated management by a single 
agency thereof for the common use of all military departments 
in anticipation of the transfer of similar defense articles and 
defense services to foreign countries and international 
organizations pursuant to this Act, the Foreign Assistance Act 
of 1961, or other law.''.
    [(b) Revolving Fund.--Section 51(b) of such Act is amended 
to read as follows:
    [``(b) The Fund shall consist of collections from sales 
made under letters of offer, or transfers made under the 
Foreign Assistance Act of 1961, of defense articles and defense 
services acquired under this chapter (representing the value of 
such items calculated in accordance with subparagraph (B) or 
(C) of section 21(a)(1) or section 22 of this Act or section 
644(m) of the Foreign Assistance Act of 1961, as appropriate), 
together with such funds as may be authorized and appropriated 
or otherwise made available for the purposes of the Fund.''.

[SEC. 122. LEASING AUTHORITY.

    [Section 7307(b)(1) of title 10, United States Code, is 
amended by inserting before the period at the end thereof the 
following: ``, except that any lease or loan of such a vessel 
under such a law shall be made only in accordance with the 
provisions of chapter 6 of the Arms Export Control Act (22 
U.S.C. 2796 et seq.) or chapter 2 of part II of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2311 et seq.)''.

[SEC. 123. MILITARY ASSISTANCE COSTS; WAIVER OF NET PROCEEDS FOR SALE 
                    OF MAP ITEMS.

    [(a) Military Assistance Costs.--Section 503(a) of the 
Foreign Assistance Act of 1961 is amended by adding the 
following sentence after paragraph (3):
``Sales which are wholly paid from funds transferred under 
paragraph (3) shall be priced to exclude the costs of salaries 
of members of the Armed Forces of the United States.''.
    [(b) Waiver of Net Proceeds.--Section 505(f) of such Act is 
amended by adding at the end thereof the following: ``In the 
case of items which were delivered prior to 1975, the President 
may waiver the requirement that such net proceeds be paid to 
the United States Government if he determines that to do so is 
in the national interest of the United States.''.

[SEC. 124. STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES.

    [Section 514(b)(2) of the Foreign Assistance Act of 1961 is 
amended to read as follows:
    [``(2) The value of such additions to stockpiles in foreign 
countries shall not exceed $360,000,000 for fiscal year 1986 
and shall not exceed $125,000,000 for fiscal year 1987.''.

[SEC. 125. SECURITY ASSISTANCE ORGANIZATIONS.

    [Section 515(c)(1) of the Foreign Assistance Act of 1961 is 
amended in the last sentence by striking out ``for the fiscal 
year 1982 and the fiscal year 1983,'' and inserting in lieu 
thereof ``Pakistan, Tunisia, El Salvador, Honduras,''.

[SEC. 126. EXCHANGE TRAINING.

    [Chapter 5 of part II of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the following new 
section:
    [``Sec. 544. Exchange Training.--In carrying out this 
chapter, the President is authorized to provide for attendance 
of foreign military personnel at professional military 
education institutions in the United States (other than service 
academies) without charge, and without charge to funds 
available to carry out this chapter (notwithstanding section 
632(d) of this Act), if such attendance is pursuant to an 
agreement providing for the exchange of students on a one-for-
one, reciprocal basis each fiscal year between those United 
States professional military education institutions and 
comparable institutions of foreign countries and international 
organizations.''.

[SEC. 127. TRAINING IN MARITIME SKILLS.

    [(a) Authorization.--Chapter 5 of part II of the Foreign 
Assistance Act of 1961, as amended by the preceding section of 
this Act, is further amended by adding at the end thereof the 
following new section:
    [``Sec. 545. Training in Maritime Skills.--The President is 
encouraged to allocate a portion of the funds made available 
each fiscal year to carry out this chapter for use in providing 
education and training in maritime search and rescue, operation 
and maintenance of aids to navigation, port security, at-sea 
law enforcement, international maritime law, and general 
maritime skills.''.
    [(b) Exemption.--Section 660(b) of such Act is amended--
            [(1) by striking out ``or'' at the end of clause 
        (1);
            [(2) by striking out the period at the end of 
        clause (2) and inserting in lieu thereof ``; or''; and
            [(3) by adding the following new clause after 
        clause (2):
            [``(3) with respect to assistance, including 
        training, in maritime law enforcement and other 
        maritime skills.''.

[SEC. 128. SPECIAL WAIVER AUTHORITY.

    [Section 614(a)(4) of the Foreign Assistance Act of 1961 is 
amended to read as follows:
    [``(4)(A) The authority of this subsection may not be used 
in any fiscal year to authorize--
            [``(i) more than $750,000,000 in sales to be made 
        under the Arms Export Control Act;
            [``(ii) the use of more than $250,000,000 of funds 
        made available for use of more than $100,000,000 of 
        foreign currencies accruing under this Act or any other 
        law.
    [``(B) If the authority of this subsection is used both to 
authorize a sale under the Arms Export Control Act and to 
authorize funds to be used under the Arms Export Control Act or 
under this Act with respect to the financing of that sale, then 
the use of the funds shall be counted against the limitation in 
subparagraph (A)(ii) and the portion, if any, of the sale which 
is not so financed shall be counted against the limitation in 
subparagraph (A)(i).
    [``(C) Not more than $50,000,000 of the $250,000,000 
limitation provided in subparagraph (A)(ii) may be allocated to 
any one country in any fiscal year unless that country is a 
victim of active Communist or Communist-supported aggression, 
and not more than $500,000,000 of the aggregate limitation of 
$1,000,000,000 provided in subparagraphs (A)(i) and (A)(ii) may 
be allocated to any one country in any fiscal year.''.

[SEC. 129. CONVENTIONAL ARMS TRANSFERS.

    [(a) Negotiations.--At the earliest possible date, the 
President should, in consultation with United States allies, 
initiate discussions with the Soviet Union and France aimed at 
beginning multilateral negotiations to limit and control the 
transfer of conventional arms to less developed countries.
    [(b) Report.--Within one year after the date of enactment 
of this Act, the President shall submit to the Speaker of the 
House of Representatives and the chairman of the Committee on 
Foreign Relations of the Senate a report which specifies steps 
being taken to fulfill the requirements of subsection (a) and 
which examines and analyzes United States policies concerning 
the export of conventional arms, especially sophisticated 
weapons, and possible approaches to developing multilateral 
limitations on conventional arms sales. This report shall 
examine and analyze--
            [(1) the lessons of earlier efforts to negotiate 
        restraints on the export of conventional arms;
            [(2) the evolution of supplier practices and 
        policies;
            [(3) the evolution of recipient country attitudes 
        regarding conventional arms transfers;
            [(4) the effect upon regional stability and 
        security of conventional arms transfer by the United 
        States and its allies and the Soviet Union and its 
        allies;
            [(5) the relationship between arms imports and the 
        external debt of recipient countries, the allocation of 
        their internal resources, and their economic well-
        being;
            [(6) the relationship between arms exports by 
        Western European countries and the needs of those 
        countries to support their domestic military 
        procurement programs;
            [(7) the prospects for engaging the Soviet Union in 
        serious discussions concerning arms transfers, both 
        globally and as they relate to regional security 
        problems;
            [(8) possible measures by the United States and 
        Western European suppliers to control levels of 
        sophisticated weapons sales, both regionally and 
        globally; and
            [(9) the timing and phasing of international 
        conventional arms control negotiations.

[SEC. 130. FOREIGN MILITARY SALES FOR JORDAN.

    [(a) Middle East Peace.--The foreign military sales 
financing authorized by this Act for Jordan is provided and 
increased in the recognition of progress Jordan has made in the 
search for a just and lasting peace in the Middle East, to 
encourage further progress, in recognition of the continuing 
defense needs of Jordan, and in the expectation that Jordan 
will enter into direct negotiations with Israel based on United 
Nations Security Council Resolutions 242 and 338 in order to 
resolve the state of war between those two countries.
    [(b) Sense of Congress.--It is the sense of the Congress 
that no foreign military sales financing authorized by this Act 
may be used to finance the procurement by Jordan of United 
States advanced aircraft, new air defense weapons systems, or 
other new advanced military weapons systems, and no 
notification may be made pursuant to section 36(b) of the Arms 
Export Control Act with respect to a proposed sale to Jordan of 
United States advanced aircraft, new air defense systems, or 
other new advanced military weapons systems, unless Jordan is 
publicly committed to the recognition of Israel and to 
negotiate promptly and directly with Israel under the basic 
tenets of United Nations Security Council Resolutions 242 and 
338.
    [(c) Certification.--Any notification made pursuant to 
section 36(b) of the Arms Export Control Act with respect to a 
proposed sale to Jordan of United States advanced aircraft, new 
air defense systems, or other new advanced military weapons, 
shall be accompanied by a Presidential certification of 
Jordan's public commitment to the recognition of Israel and to 
negotiate promptly and directly with Israel under the basic 
tenets of United Nations Security Council Resolutions 242 and 
338.]
          * * * * * * *

                    [TITLE II--ECONOMIC SUPPORT FUND

[SEC. 201. PURPOSES AND USES OF ESF; AUTHORIZATIONS OF APPROPRIATIONS.

    [Sec. 201. (a) Policy Revisions and Authorizations of 
Appropriations.--Chapter 4 of part II of the Foreign Assistance 
Act of 1961 is amended by striking out sections 531, 532, 533, 
534, 536, 537, 538, 539, and 540 and inserting the following 
new sections after the chapter heading:
    [``Sec. 531. Authority.--(a) The Congress recognizes that, 
under special economic, political, or security conditions, the 
national interests of the United States may require economic 
support for countries or in amounts which could not be 
justified solely under chapter 1 of part I. In such cases, the 
President is authorized to furnish assistance to countries and 
organizations, on such terms and conditions as he may 
determine, in order to promote economic or political stability. 
To the maximum extent feasible, the President shall provide 
assistance under this chapter consistent with the policy 
directions, purposes, and programs of part I of this Act.
    [``(b) The Secretary of State shall be responsible for 
policy decisions and justifications for economic support 
programs under this chapter, including determinations of 
whether there will be an economic support program for a country 
and the amount of the program for each country. The Secretary 
shall exercise this responsibility in cooperation with the 
Administrator of the agency primarily responsible for 
administering part I of this Act.
    [``(c) As part of the annual presentation materials for 
foreign assistance submitted to the Congress, the agency 
primarily responsible for administering this part shall provide 
a detailed justification for the uses and the purposes of the 
funds provided under this chapter. Such material shall include, 
but not be limited to, information concerning the amounts and 
kinds of cash grant transfers, the amounts and kinds of 
budgetary and balance-of-payments support provided, and the 
amounts and kinds of project assistance provided with funds 
made available under this chapter.
    [``(d) To the maximum extent feasible, funds made available 
pursuant to this chapter for commodity import programs or other 
program assistance shall be used to generate local currencies, 
not less than 50 percent of which shall be available to support 
activities consistent with the objectives of sections 103 
through 106 of this Act, and administered by the agency 
primarily responsible for administering part I of this Act.
    [``(e) amounts appropriated to carry out this chapter shall 
be available for economic programs only and may not be used for 
military or paramilitary purposes.
    [``Sec. 532. Authorizations of Appropriations.--(a) There 
are authorized to be appropriated to the President to carry out 
the purposes of this chapter--
            [``(1) $2,015,000,000 for the fiscal year 1986 and 
        $2,015,000,000 for the fiscal year 1987 for the 
        following countries signing the Camp David agreement: 
        Israel and Egypt; and
            [``(2) $1,785,000,000 for the fiscal year 1986 and 
        $1,785,000,000 for the fiscal year 1987 for assistance 
        under this chapter for recipients or purposes other 
        than the countries referred to in paragraph (1).''.
    [``(b) Amounts appropriated to carry out this chapter are 
authorized to remain available until expended.''.
    [(b) Emergency Assistance.--Section 535 of such Act is 
amended--
    [(1) by striking out ``1982'' and ``1983'' inserting in 
lieu thereof ``1986'' and ``1987'', respectively; and
    [(2) by redesignating that section as section 533.

[SEC. 202. ASSISTANCE FOR THE MIDDLE EAST

    [(a) Israel.--(1) Of the amounts authorized to be 
appropriated to carry out chapter 4 of part II of the Foreign 
Assistance Act of 1961, not less than $1,200,000,000 for fiscal 
year 1986 and not less than $1,200,000,000 for fiscal year 1987 
shall be available only for Israel.
    [(2) The total amounts of funds allocated for Israel under 
that chapter for fiscal year 1986 and fiscal year 1987 shall be 
made available as a cash transfer on a grant basis. Such 
transfer shall be made on an expedited basis in the first 30 
days of the respective fiscal year. In exercising the authority 
of this paragraph, the President shall ensure that the level of 
cash transfer made to Israel does not cause an adverse impact 
on the total level of nonmilitary exports from the United 
States to Israel.
    [(b) Egypt.--(1) Of the amounts authorized to be 
appropriated to carry out chapter 4 of part II of the Foreign 
Assistance Act of 1961, not less than $815,000,000 for fiscal 
year 1986 and not less than $815,000,000 for fiscal year 1987 
shall be available only for Egypt.
    [(2) All of the funds made available to Egypt under that 
chapter for the fiscal years 1986 and 1987 shall be provided on 
a grant basis.
    [(3) Up to $115,000,000 of the amounts provided for Egypt 
for each of the fiscal years 1986 and 1987 pursuant to 
paragraph (1) may be provided as a cash transfer with the 
understanding that Egypt will undertake economic reforms or 
development activities which are additional to those which 
would be undertaken in the absence of the cash transfer.
    [(c) Cooperative Scientific and Technological Projects.--It 
is the sense of the Congress that, in order to continue to 
build the structure of peace in the Middle East, the United 
States should finance, and where appropriate participate in, 
cooperative projects of a scientific and technological nature 
involving Israel and Egypt and other Middle East countries 
wishing to participate. These cooperative projects should 
include projects in the fields of agriculture, health, energy, 
the environment, education, water resources, and the social 
sciences.

[SEC. 203. ASSISTANCE FOR CYPRUS.

    [(a) Earmarks.--Of the amounts authorized to be 
appropriated to carry out chapter 4 of part II of the Foreign 
Assistance Act of 1961, not less than $15,000,000 for fiscal 
year 1986 and not less than $15,000,000 for fiscal year 1987 
shall be available only for Cyprus.
    [(b) Cyprus Peace and Reconstruction Fund.--It is the sense 
of the Congress that, at the appropriate time, $250,000,000 
should be authorized to be appropriated to provide assistance 
for Cyprus under chapter 4 of part II of the Foreign Assistance 
Act of 1961 if the President certifies to the Congress that an 
agreement has been concluded by the Greek and Turkish Cypriots 
which is supported by Greece and Turkey and which achieves 
substantial progress toward settlement of the Cyprus dispute. 
Such an agreement should include an agreement on Varosha/
Famagusta, foreign troop levels in the Republic of Cyprus, the 
disposition of the international airport on Cyprus, or other 
significant steps which are evidence of substantial progress 
toward an overall settlement of the Cyprus dispute.

[SEC. 204. ASSISTANCE FOR PORTUGAL.

    [Of the amounts authorized to be appropriated to carry out 
chapter 4 of part II of the Foreign Assistance Act of 1961, 
$80,000,000 for fiscal year 1986 and $80,000,000 for fiscal 
year 1987 shall be available only for Portugal.

[SEC. 205. ACQUISITION OF AGRICULTURAL COMMODITIES UNDER COMMODITY 
                    IMPORT PROGRAMS.

    [The President shall use not less than 18 percent of the 
funds which are authorized to be appropriated to carry out 
chapter 4 of part II of the Foreign Assistance Act of 1961 for 
each of the fiscal years 1986 and 1987, and which are made 
available for commodity import programs, for the purchase of 
agricultural commodities of United States-origin.

[SEC. 206. TIED AID CREDIT PROGRAM.

    [Of the amounts authorized to be appropriated to carry out 
chapter 4 of part II of the Foreign Assistance Act of 1961 
which are allocated for Commodity Import Programs--
            [(1) not less than $50,000,000 for fiscal year 
        1986, and
            [(2) an aggregate of not less than $100,000,000 for 
        both fiscal years 1986 and 1987,
shall be deposited in the fund authorized by subsection (c)(2) 
of section 645 of the Trade and Development Enhancement Act of 
1983 (12 U.S.C. 635r) and shall be used by the Agency for 
International Development in carrying out the program of tied 
aid credits for United States exports which is provided for in 
that section. Funds that have not been obligated pursuant to 
the tied aid credit program by the end of the third quarter of 
the fiscal year for which they were appropriated may be used 
for other purposes under chapter 4 of part II of the Foreign 
Assistance Act of 1961 if the Administrator of the Agency for 
International Development certifies to the Congress that (A) no 
trade credit application acceptable and timely under the Trade 
and Development Enhancement Act of 1983 pending, or (B) those 
funds are not needed for that program because other countries 
are not engaging in predatory financing practices in order to 
compete with United States exports.

[SEC. 207. RESTRICTION ON USE OF FUNDS FOR NUCLEAR FACILITIES.

    [Funds authorized to be appropriated to carry out chapter 4 
of part II of the Foreign Assistance Act of 1961 for fiscal 
year 1986 or fiscal year 1987 may not be used to finance the 
construction of, the operation or maintenance of, or the 
supplying of fuel for, any nuclear facility in a foreign 
country unless the President certifies to the Congress that 
such country is a party to the Treaty on the Non-Proliferation 
of Nuclear Weapons or the Treaty for the Prohibition of Nuclear 
Weapons in Latin America (the ``Treaty of Tlatelolco''), 
cooperates fully with the International Atomic Energy Agency, 
and pursues nonproliferation policies consistent with those of 
the United States.

[SEC. 208. FISCAL YEAR 1995 SUPPLEMENTAL AUTHORIZATION.

    [(a) Authorization.--In addition to the amount appropriated 
for such purpose by Public Law 98-473, there are authorized to 
be appropriated $2,008,000,000 for fiscal year 1985 to carry 
out the purposes of chapter 4 of part II of the Foreign 
Assistance Act of 1961. Of this amount, $1,500,000,000 shall be 
available only for Israel, $500,000,000 shall be available only 
for Egypt, and $8,000,000 shall be available only for the 
Middle East Regional Program. Amounts appropriated pursuant to 
this section are authorized to remain available until September 
30, 1986.
    [(b) Effective Date.--This section shall take effect on the 
date of enactment of this Act.

                   [TITLE III--DEVELOPMENT ASSISTANCE

[SEC. 301. DEVELOPMENT ASSISTANCE POLICY.

    [Section 102(b) of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
paragraphs:
            [``(13) United States encouragement of policy 
        reforms is necessary if developing countries are to 
        achieve economic growth with equity.
            [``(14) Development assistance should, as a 
        fundamental objective, promote private sector activity 
        in open and competitive markets in developing 
        countries, recognizing such activity to be a productive 
        and efficient means of achieving equitable and long 
        term economic growth.
            [``(15) United States cooperation in development 
        should recognize as essential the need of developing 
        countries to have access to appropriate technology in 
        order to improve food and water, health and housing, 
        education and employment, and agriculture and industry.
            [``(16) United States assistance should focus on 
        establishing and upgrading the institutional capacities 
        of developing countries in order to promote long term 
        development. An important component of institution 
        building involves training to expand the human resource 
        potential of people in developing countries.''.

[SEC. 302. AGRICULTURE, RURAL DEVELOPMENT, AND NUTRITION.

    [Section 103(a)(2) of the Foreign Assistance Act of 1961 is 
amended by striking out the first sentence and inserting in 
lieu thereof the following: ``There are authorized to be 
appropriated to the President for purposes of this section, in 
addition to funds otherwise available for such purposes 
$760,000,000 for fiscal year 1986 and $760,000,000 for fiscal 
year 1987. Of these amounts, the President may use such amounts 
as he deems appropriate to carry out the provisions of section 
316 of the International Security and Development Cooperation 
Act of 1980.''.

[SEC. 303. POPULATION AND HEALTH.

    [Section 104(g) of the Foreign Assistance Act of 1961 is 
amended to read as follows:
    [``(g) Authorizations of Appropriations.--(1) There are 
authorized to be appropriated to the President, in addition to 
funds otherwise available for such purposes--
            [``(A) $290,000,000 for fiscal year 1986 and 
        $290,000,000 for fiscal year 1987 to carry out 
        subsection (b) of this section; and
            [``(B) $205,000,000 for fiscal year 1986 and 
        $205,000,000 for fiscal year 1987 to carry out 
        subsection (c) of this section.
    [``(2) Funds appropriated under this subsection are 
authorized to remain available until expended.''.

[SEC. 304. CHILD SURVIVAL FUND.

    [Section 104(c)(2)(B) of the Foreign Assistance Act of 1961 
is amended by striking out ``$25,000,000'' and inserting in 
lieu thereof ``$25,000,000 for fiscal year 1986 and $25,000,000 
for fiscal year 1987.''

[SEC. 305. PROMOTION OF IMMUNIZATION AND ORAL REHYDRATION.

    [(a) Policy and Goal.--Section 104(c) of the Foreign 
Assistance Act of 1961 is amended by adding at the end thereof 
the following new paragraph:
    [``(3) The Congress recognizes that the promotion of 
primary health care is a major objective of the foreign 
assistance program. The Congress further recognizes that 
simple, relatively low cost means already exist to reduce 
incidence of communicable diseases among children, mothers, and 
infants. The promotion of vaccines for immunization, and salts 
for oral rehydration, therefore, is an essential feature of the 
health assistance program. To this end, the Congress expects 
the agency primarily responsible for administering this part to 
set as a goal the protection of not less than 80 percent of all 
children, in those countries in which such agency has 
established development programs, from immunizable diseases by 
January 1, 1991.''.
    [(b) Annual Reports.--Each annual report required by 
section 634 of the Foreign Assistance Act of 1961 shall 
describe the progress achieved during the preceding fiscal year 
in carrying out section 104(c)(3) of such Act.

[SEC. 306. EDUCATION AND HUMAN RESOURCES DEVELOPMENT.

    [The second sentence of section 105(a) of the Foreign 
Assistance Act of 1961 is amended to read as follows: ``There 
are authorized to be appropriated to the President for the 
purposes of this section, in addition to funds otherwise 
available for such purposes, $180,000,000 for fiscal year 1986 
and $180,000,000 for fiscal year 1987, which are authorized to 
remain available until expended.

[SEC. 307. ENERGY, PRIVATE VOLUNTARY ORGANIZATIONS, AND SELECTED 
                    DEVELOPMENT ACTIVITIES.

    [(a) Authorizations.--Section 106(e)(1) of the Foreign 
Assistance Act of 1961 is amended to read as follows:
    [``(e)(1) There are authorized to be appropriated to the 
President for purposes of this section, in addition to funds 
otherwise available for such purposes, $207,000,000 for fiscal 
year 1986 and $207,000,000 for fiscal year 1987.''.
    [(b) Cooperative Development Program.--Section 106 of such 
Act is amended by adding at the end thereof the following new 
subsection:
    [``(f) Of the amounts authorized to be appropriated to 
carry out this chapter, $5,000,000 for fiscal year 1986 and 
$5,000,000 for fiscal year 1987 shall be used to finance 
cooperative projects among the United States, Israel, and 
developing countries.''.

[SEC. 308. PRIVATE SECTOR REVOLVING FUND.

    [Section 108(b) of the Foreign Assistance Act of 1961 is 
amended by striking out ``fiscal year 1984, up to $20,000,000'' 
in the first sentence and inserting in lieu thereof ``each of 
the fiscal years 1986 and 1987, up to $18,000,000''.

[SEC. 309. PRIVATE AND VOLUNTARY ORGANIZATIONS AND COOPERATIVES IN 
                    OVERSEAS DEVELOPMENT.

    [(a) Notification Date.--Section 123(e) of the Foreign 
Assistance Act of 1961 is amended by striking out ``thirty 
days'' in the third sentence and inserting in lieu thereof 
``one year''.
    [(b) Earmarking for PVOs.--Section 123(f) of such Act is 
amended--
            [(1) by striking out ``1982, 1983, and 1984'' and 
        inserting in lieu thereof ``1986 through 1989'';
            [(2) by striking out ``twelve'' and inserting in 
        lieu thereof ``thirteen and one half''; and
            [(3) by adding at the end thereof the following new 
        sentence: ``Funds made available under chapter 4 of 
        part II of this Act for the activities of private and 
        voluntary organizations may be considered in 
        determining compliance with the requirements of this 
        subsection.''.

[SEC. 310. PROMOTION OF DEMOCRATIC COOPERATIVES.

    [Section 123 of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
subsection:
    [``(h) The Congress recognizes that, in addition to their 
role in social and economic development, cooperatives provide 
an opportunity for people to participate directly in democratic 
decisionmaking. Therefore, assistance under this chapter shall 
be provided to rural and urban cooperatives which offer large 
numbers of low-and middle-income people in developing countries 
an opportunity to participate directly in democratic 
decisionmaking. Such assistance shall be designed to encourage 
the adoption of self-help, private sector cooperative 
techniques and practices which have been successful in the 
United States.''.

[SEC. 311. USE OF PRIVATE AND VOLUNTARY ORGANIZATIONS, COOPERATIVES, 
                    AND THE PRIVATE SECTOR.

    [(a) Study.--The Administrator of the Agency for 
International Development shall undertake a comprehensive study 
of additional ways to provide development assistance through 
nongovernmental organizations, including United States and 
indigenous private and voluntary organizations, cooperatives, 
the business community, and other private entities. Such study 
shall include--
            [(1) an analysis of the percentage of development 
        assistance allocated to governmental and 
        nongovernmental programs;
            [(2) an analysis of structural impediments, within 
        both the United States and foreign governments, to 
        additional use of nongovernmental programs; and
            [(3) an analysis of the comparative economic 
        benefits of governmental and nongovernmental programs.
    [(b) Report.--The Administrator shall report the results of 
this study to the Congress no later than September 30, 1986.

[SEC. 312. TARGETED ASSISTANCE.

    [(a) Requirements.--Section 128 of the Foreign Assistance 
Act of 1961 is amended to read as follows:
    [``Sec. 128. Targeted Assistance.--(a) The President shall 
use poverty measurement standards, such as those developed by 
the International Bank for Reconstruction and Development, and 
other appropriate measurements in determining target 
populations for United States development assistance, and shall 
strengthen United States efforts to assure that a substantial 
percentage of development assistance under this chapter 
directly improves the lives of the poor majority, with special 
emphasis on those individuals living in absolute poverty.
    [``(b) To the maximum extent possible, activities under 
this chapter that attempt to increase the institutional 
capabilities of private organizations or governments, or that 
attempt to stimulate scientific and technological research, 
shall be designed and monitored to ensure that the ultimate 
beneficiaries of these activities are the poor majority.''.
    [(b) Annual Reports.--Section 634(a)(1)(B) of such Act is 
amended by inserting immediately before the semicolon the 
following: ``, such assessment to include an evaluation of the 
extent to which programs under chapter 1 of part I directly 
benefit the poor majority''.

[SEC. 313. HOUSING AND OTHER GUARANTY PROGRAMS.

    [(a) Increasing Authorized HIG Program Level.--Section 
222(a) of the Foreign Assistance Act of 1961 is amended by 
striking out ``$1,958,000,000'' in the second sentence and 
inserting in lieu thereof ``$2,158,000,000''.
    [(b) Extending HIG Program Authority.--Such section is 
further amended by striking out ``1986'' in the third sentence 
and inserting in lieu thereof ``1988''.
    [(c) Minimum Annual HIG Program Levels.--Section 222 of 
such Act is amended by adding at the end thereof the following:
    [``(k) The total principal amount of guaranties issued 
under this section for each of the fiscal years 1986 and 1987 
shall be comparable to the total principal amount of such 
guaranties issued for fiscal year 1984, subject to the dollar 
limitations on the issuance of guaranties under this section 
which are contained in subsection (a) and in appropriation 
Acts.''.
    [(d) Agricultural and Productive Credit and Self-Help 
Community Development Programs.--Section 222A(h) of such Act is 
amended by striking out ``1986'' and inserting in lieu thereof 
``1988''.

[SEC. 314. TRADE CREDIT INSURANCE PROGRAM.

    [Sec 224(e) of the Foreign Assistance Act of 1961 is 
amended by striking out ``not to exceed $300,000,000 in the 
fiscal year 1985'' and inserting in lieu thereof ``except that 
the aggregate amount of outstanding commitments under 
subsection (a) may not exceed $300,000,000 of contingent 
liability for loan principal during fiscal year 1986 and may 
not exceed $400,000,000 of contingent liability for loan 
principal during fiscal year 1987''.

[SEC. 315. MINORITY SET-ASIDE.

    [Except to the extent that the Administrator of the Agency 
for International Development determines otherwise, not less 
than 10 percent of the aggregate of the funds made available 
for each of the fiscal years 1986 and 1987 to carry out chapter 
1 of part I of the Foreign Assistance Act of 1961 shall be made 
available only for activities of economically and socially 
disadvantaged enterprises (within the meaning of section 
133(c)(5) of the International Development and Food Assistance 
Act of 1977), historically black colleges and universities, and 
private and voluntary organizations which are controlled by 
individuals who are black Americans, Hispanic Americans, or 
Native Americans, or who are economically and socially 
disadvantaged (within the meaning of section 133(c)(5) (B) and 
(C) of the International Development and Food Assistance Act of 
1977). For purposes of this section, economically and socially 
disadvantaged individuals shall be deemed to include women.

              [TITLE IV--OTHER FOREIGN ASSISTANCE PROGRAMS

[SEC. 401. AMERICAN SCHOOLS AND HOSPITALS ABROAD.

    [Section 214(c) of the Foreign Assistance Act of 1961 is 
amended to read as follows:
    [``(c)(1) To carry out the purposes of this section, there 
are authorized to be appropriated to the president $35,000,000 
for fiscal year 1986 and $35,000,000 for fiscal year 1987.
    [``(2) Amounts appropriated under paragraph (1) are 
authorized to remain available until expended.''.

[SEC. 402. VOLUNTARY CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS AND 
                    PROGRAMS.

    [(a) Authorizations and Earmarkings.--Section 302(a)(1) of 
the Foreign Assistance Act of 1961 is amended to read as 
follows:
    [``(a)(1) There are authorized to be appropriated to the 
President $270,000,000 for fiscal year 1986 and $270,000,000 
for fiscal year 1987 for grants to carry out the purposes of 
this chapter, in addition to funds available under other Acts 
for such purposes. Of the amount appropriated for each of the 
fiscal years 1986 and 1987 pursuant to these authorizations--
            [``(A) 59.65 percent shall be for the United 
        Nations Development Program;
            [``(B) 19.30 percent shall be for the United 
        Nations Children's Fund;
            [``(C) 7.20 percent shall be for the International 
        Atomic Energy Agency, except that these funds may be 
        contributed to that 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;
            [``(D) 5.44 percent shall be for the Organization 
        of American States development assistance programs;
            [``(E) 3.51 percent shall be for the United Nations 
        Environment Program;
            [``(F) 0.70 percent shall be for the World 
        Meteorological Organization;
            [``(G) 0.70 percent shall be for the United Nations 
        Capital Development Fund;
            [``(H) 0.35 percent shall be for the United Nations 
        Education and Training Program for Southern Africa;
            [``(I) 0.18 percent shall be for the United Nations 
        Voluntary Fund for the Decade for Women;
            [``(J) 0.07 percent shall be for the Convention on 
        International Trade in Endangered Species;
            [``(K) 0.70 percent shall be for the World Food 
        Program;
            [``(L) 0.18 percent shall be for the United Nations 
        Institute for Namibia;
            [``(M) 0.12 percent shall be for the United Nations 
        Trust Fund for South Africa;
            [``(N) 0.04 percent shall be for the United Nations 
        Voluntary Fund for Victims of Torture;
            [``(O) 0.07 percent shall be for the United Nations 
        Industrial Development Organization;
            [``(P) 0.55 percent shall be for the United Nations 
        Development Program Trust Fund to Combat Poverty and 
        Hunger in Africa;
            [``(Q) 0.97 percent shall be for contributions to 
        international conventions and scientific organizations;
            [``(R) 0.18 percent for the United Nations Centre 
        on Human Settlements (Habitat); and
            [``(S) 0.09 percent shall be for the World Heritage 
        Fund.''.
    [(b) Fiscal Year 1985 Contribution to United Nations 
Environment Program.--Notwithstanding section 614 of the 
Foreign Assistance Act of 1961 or any other provision of law, 
$10,000,000 of the funds appropriated for the fiscal year 1985 
to carry out chapter 3 of part I of such Act shall be available 
only for the United Nations Environment Program. This 
subsection shall take effect on the date of enactment of this 
Act.

[SEC. 403. WITHHOLDING OF UNITED STATES PROPORTIONATE SHARE FOR CERTAIN 
                    PROGRAMS OF INTERNATIONAL ORGANIZATIONS.

    [Chapter 3 of part I of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the following new 
section:
    [``Sec. 307. Withholding of United States Proportionate 
Share for Certain Programs of International Organizations.--(a) 
Notwithstanding any other provision of law, none of the funds 
authorized to be appropriated by this chapter shall be 
available for the United States proportionate share for 
programs for the South-West Africa People's Organization, 
Libya, Iran, Cuba, or the Palestine Liberation Organization or 
for projects whose purpose is to provide benefits to the 
Palestine Liberation Organization or entities associated with 
it.
    [``(b) The Secretary of State--
            [``(1) shall review, at least annually, the budgets 
        and accounts of all international organizations 
        receiving payments of any funds authorized to be 
        appropriated by this chapter; and
            [``(2) shall report to the appropriate committees 
        of the Congress the amounts of funds expended by each 
        such organization for the purposes described in 
        subsection (a) and the amount contributed by the United 
        States to each such organization.''.

[SEC. 404. INTERNATIONAL DISASTER ASSISTANCE.

    [The first sentence of section 492(a) of the Foreign 
Assistance Act of 1961 is amended to read as follows: ``There 
are authorized to be appropriated to the President to carry out 
section 491, $25,000,000 for fiscal year 1986 and $25,000,000 
for fiscal year 1987.''.

[SEC. 405. TRADE AND DEVELOPMENT PROGRAM.

    [The first sentence of section 661(b) of the Foreign 
Assistance Act of 1961 is amended to read as follows: ``There 
are authorized to be appropriated to the President for purposes 
of this section, in addition to funds otherwise available for 
such purposes, $20,000,000 for fiscal year 1986 and $20,000,000 
for fiscal year 1987.''.

[SEC. 406. OPERATING EXPENSES.

    [Section 667(a)(1) of the Foreign Assistance Act of 1961 is 
amended to read as follows:
            [``(1) $387,000,000 for fiscal year 1986 and 
        $387,000,000 for fiscal year 1987 for necessary 
        operating expenses of the agency primarily responsible 
        for administering part I of this Act; and''.

     [TITLE V--INTERNATIONAL TERRORISM AND FOREIGN AIRPORT SECURITY

               [Part A--International Terrorism Generally

[SEC. 501. ANTI-TERRORISM ASSISTANCE PROGRAM.

    [(a) Authorizations.--Section 575 of the Foreign Assistance 
Act of 1961 is amended to read as follows:
    [``Sec. 575. Authorizations of Appropriations.--(a) There 
are authorized to be appropriated to the President to carry out 
this chapter $9,840,000 for fiscal year 1986 and $9,840,000 for 
fiscal year 1987.
    [``(b) Amounts appropriated under this section are 
authorized to remain available until expended.''.
    [(b) Items on the Munitions List.--Section 573(d)(4) of 
such Act is amended to read as follows:
    [``(4)(A) Except as provided in subparagraph (B), articles 
on the United States Munitions List established pursuant to the 
Arms Export Control Act may not be made available under this 
chapter.
    [``(B) For fiscal years 1986 and 1987, articles on the 
United States Munitions List may be made available under this 
chapter if--
            [``(i) they are small arms in category I (relating 
        to firearms), ammunition in category III (relating to 
        ammunition) for small arms in category I, or articles 
        in category X (relating to protective personnel 
        equipment), and they are directly related to anti-
        terrorism training being provided under this chapter;
            [``(ii) the recipient country is not prohibited by 
        law from receiving assistance under one or more of the 
        following provisions; chapter 2 of this part, chapter 5 
        of this part, or the Arms Export Control Act; and
            [``(iii) at least 15 days before the articles are 
        made available to the foreign country, the President 
        notifies the Committee on Foreign Affairs of the House 
        of Representatives and the Committee on Foreign 
        Relations of the Senate of the proposed transfer, in 
        accordance with the procedures applicable to 
        reprogramming notifications pursuant to section 634A of 
        this Act.
    [``(C) The value (in terms of original acquisition cost) of 
all equipment and commodities provided under subsection (a) of 
this section, including articles described in subparagraph 
(B)(i) of this paragraph, may not exceed $325,000 in fiscal 
year 1986 or $325,000 in fiscal year 1987.''.
    [(c) Restriction.--Section 573 of such Act is amended by 
adding at the end thereof the following new subsection:
    [``(f) Funds made available to carry out this chapter may 
not be used for personnel compensation or benefits.''.
    [(d) Expiration of Authority.--Section 577 of such Act is 
repealed.]
          * * * * * * *

[SEC. 506. INTERNATIONAL ANTI-TERRORISM COMMITTEE.

    [The Congress calls upon the President to seek the 
establishment of an international committee, to be known as the 
International Anti-Terrorism Committee, consisting of 
representatives of the member countries of the North Atlantic 
Treaty Organization, Japan, and such other countries as may be 
invited and may choose to participate. The purpose of the 
Committee should be to focus the attention and secure the 
cooperation of the governments and the public of the 
participating countries and of other countries on the problems 
and responses to international terrorism, by serving as a forum 
at both the political and law enforcement levels.

[SEC. 507. INTERNATIONAL TERRORISM CONTROL TREATY.

    [It is the sense of the Congress that the President should 
establish a process by which democratic and open societies of 
the world, which are those most plagued by terrorism, negotiate 
a viable treaty to effectively prevent and respond to terrorist 
attacks. Such a treaty should incorporate and operative 
definition of terrorism, and should establish effective close 
intelligence-sharing, joint counter-terrorist training, and 
uniform laws on asylum, extradition, and swift punishment for 
perpetrators of terrorism. Parties to such a treaty should 
include, but not be limited to, those democratic nations who 
are most victimized by terrorism.

[SEC. 508. STATE TERRORISM.

    [It is sense of the Congress that all civilized nations 
should firmly condemn the increasing use of terrorism by 
certain states as an official instrument for promoting their 
policy goals, as evidenced by such examples as the brutal 
assassination of Major Arthur D. Nicholson, Junior, by a member 
of the Soviet armed forces.

                   [Part B--Foreign Airport Security

[SEC. 551. SECURITY STANDARDS FOR FOREIGN AIR TRANSPORTATION.

    [(a) Security at Foreign Airports.--Section 1115 of the 
Federal Aviation Act of 1958 (49 U.S.C. App. 1515) is amended 
to read as follows:

          [``Security Standards in Foreign Air Transportation

                   [``assessment of security measures

    [``Sec. 1115. (a)(1) The Secretary of Transportation shall 
conduct at such intervals as the Secretary shall deem necessary 
an assessment of the effectiveness of the security measures 
maintained at those foreign airports being served by air 
carriers, those foreign airports from which foreign air 
carriers serve the United States, those foreign airports which 
pose a high risk of introducing danger to international air 
travel, and at such other foreign airports as the Secretary may 
deem appropriate.
    [``(2) Each such assessment shall be made by the Secretary 
of Transportation in consultation with the appropriate 
aeronautic authorities of the foreign government concerned and 
each air carrier serving the foreign airport at which the 
Secretary is conducting such assessment.
    [``(3) The assessment shall determine the extent to which 
an airport effectively maintains and administers security 
measures. In making an assessment of any airport under this 
subsection, the Secretary shall use a standard which will 
result in an analysis of the security measures at such airport 
based upon, at a minimum, the standards and appropriate 
recommended practices contained in Annex 17 to the Convention 
on International Civil Aviation, as those standards and 
recommended practices are in effect on the date of such 
assessment.

              [``consultation with the secretary of state

    [``(b) In carrying out subsection (a), the Secretary of 
Transportation shall consult the Secretary of State with 
respect to the terrorist threat which exists in each country. 
The Secretary of Transportation shall also consult with the 
Secretary of State in order to determine which foreign airports 
are not under the de facto control of the government of the 
country in which they are located and pose a high risk of 
introducing danger to international air travel.

                        [``report of assessments

    [``(c) Each report to the Congress required by section 315 
of this Act shall contain a summary of the assessments 
conducted pursuant to subsection (a).

          [``notification to foreign country of determination

    [``(d) Whenever, after an assessment in accordance with 
subsection (a), the Secretary of Transportation determines that 
an airport does not maintain and administer effective security 
measures, the Secretary (after advising the Secretary of State) 
shall notify the appropriate authorities of such foreign 
government of such determination, and recommend the steps 
necessary to bring the security measures in use at that airport 
up to the standard used by the Secretary in making such 
assessment.

                        [``notice and sanctions

    [``(e)(1) Paragraph (2) of this subsection shall become 
effective--
            [``(A) 90 days after notification to the foreign 
        government pursuant to subsection (d), if the Secretary 
        of Transportation finds that the foreign government has 
        failed to bring the security measures at the identified 
        airport up to the standard used by the Secretary in 
        making an assessment of such airport under subsection 
        (a); or
            [``(B) immediately upon the Secretary of 
        Transportation's determination under subsection (d) if 
        the Secretary of Transportation determines, after 
        consultation with the Secretary of State, that a 
        condition exists that threatens the safety or security 
        of passengers, aircraft, or crew traveling to or from 
        such airport.
The Secretary of Transportation shall immediately notify the 
Secretary of State of any determination made pursuant to 
subparagraph (B) so that the Secretary of State may comply with 
the requirement of section 552(a) of the International Security 
and Development Cooperation Act of 1985 that a travel advisory 
be issued.
    [``(2) Subject to paragraph (1), if the Secretary of 
Transportation determines pursuant to this section that an 
airport does not maintain and administer effective security 
measures--
            [``(A) the Secretary of Transportation--
                    [``(i) shall publish the identity of such 
                airport in the Federal Register,
                    [``(ii) shall cause the identity of such 
                airport to be posted and prominently displayed 
                at all United States airports regularly being 
                served by scheduled air carrier operations, and
                    [``(iii) shall notify the news media of the 
                identity of such airport;
            [``(B) each air carrier and foreign air carrier 
        providing service between the United States and such 
        airport shall provide notice of such determination by 
        the Secretary to any passenger purchasing a ticket for 
        transportation between the United States and such 
        airport, with such notice to be made by written 
        material included on or with such ticket;
            [``(C) the Secretary of Transportation, after 
        consultation with the appropriate aeronautical 
        authorities of the foreign government concerned and 
        each air carrier serving such airport, may, 
        notwithstanding section 1102 of this Act and with the 
        approval of the Secretary of State, withhold, revoke, 
        or impose conditions on the operating authority of any 
        air carrier or foreign air carrier to engage in foreign 
        air transportation utilizing such airport; and
            [``(D) the President may prohibit air carriers and 
        foreign air carriers from providing service between the 
        United States and any other foreign airport which is 
        directly or indirectly served by aircraft flying to or 
        from the airport with respect to which the 
        determination is made under this section.
    [``(3) The Secretary of Transportation shall promptly 
submit to the Congress a report (with a classified annex if 
necessary) on any action taken under this subsection, setting 
forth information concerning the attempts made to secure the 
cooperation of the foreign government in meeting the standard 
used by the Secretary in making the assessment of the airport 
under subsection (a).

                        [``lifting of sanctions

    [``(f)(1) The sanctions required to be imposed with respect 
to an airport pursuant to subsection (e)(2)(A) and (B) may be 
lifted only if the Secretary of Transportation, in consultation 
with the Secretary of State, has determined that effective 
security measures are maintained and administered at that 
airport.
    [``(2) The Congress shall be notified if any sanction 
imposed pursuant to subsection (e) is lifted.

          [``authority for immediate suspension of air service

    [``(g) Notwithstanding sections 1102 and 1114 of this Act, 
whenever the Secretary of Transportation determines that--
            [``(1) a condition exists that threatens the safety 
        or security of passengers, aircraft, or crew traveling 
        to or from a foreign airport, and
            [``(2) the public interest requires an immediate 
        suspension of services between the United States and 
        the identified airport,
the Secretary of Transportation shall, without notice or 
hearing and with the approval of the Secretary of State, 
suspend the right of any air carrier or foreign air carrier to 
engage in foreign air transportation to or from that foreign 
airport and the right of any person to operate aircraft in 
foreign air commerce to or from that foreign airport.

                       [``conditions of authority

    [``(h) The provisions of this section shall be deemed to be 
a condition to any authority granted under title IV or title VI 
of this Act to any air carrier or any foreign air carrier, 
issued under authority vested in the Secretary of 
Transportation.''.
    [(b) Conforming Amendments.--
            [``(1) Information in semiannual reports.--Section 
        315(a) of the Federal Aviation Act of 1958 (49 U.S.C. 
        App. 1356(a)) is amended by adding at the end thereof 
        the following new sentence: ``Each semiannual report 
        submitted by the Administrator pursuant to the 
        preceding sentence shall include the information 
        described in section 1115(c) of this Act.''.
            [``(2) Civil penalties.--Section 901(a)(1) of the 
        Federal Aviation Act of 1958 (49 U.S.C. App. 
        1471(a)(1)) is amended by inserting ``or 
        1115(e)(2)(B)'' after ``1114''.
            [``(3) Table of contents.--That portion of the 
        table of contents contained in the first section of the 
        Federal Aviation Act of 1958 which appears under the 
        center heading

                      [``title xi--miscellaneous''

            [is amended by striking out

[``Sec. 1115. Security standards in foreign air transportation.''.

            [and inserting in lieu thereof

[``Sec. 1115. Security standards in foreign air transportation.
        [``(a) Assessment of security measures.
        [``(b) Consultation with the Secretary of State.
        [``(c) Report of assessments.
        [``(d) Notification to foreign country of determination.
        [``(e) Notice and sanctions.
        [``(f) Lifting of sanctions.
        [``(g) Authority for immediate suspension of air service.
        [``(h) Conditions of authority.''.

    [(c) Closing of Beirut International Airport.--It is the 
sense of the Congress that the President is urged and 
encouraged to take all appropriate steps to carry forward his 
announced policy of seeking the effective closing of the 
international airport in Beirut, Lebanon, at least until such 
time as the Government of Lebanon has instituted measures and 
procedures designed to prevent the use of that airport by 
aircraft hijackers and other terrorists in attacking civilian 
airlines or their passengers, hijacking their aircraft, or 
taking or holding their passengers hostage.

[SEC. 552. TRAVEL ADVISORY AND SUSPENSION OF FOREIGN ASSISTANCE.

    [(a) Travel Advisory.--Upon being notified by the Secretary 
of Transportation that the Secretary has determined, pursuant 
to subsection (e)(1)(B) of section 1115 of the Federal Aviation 
Act of 1958 that a condition exists that threatens the safety 
or security of passengers, aircraft, or crew travelling to or 
from a foreign airport which the Secretary of Transportation 
has determined pursuant to that section to be an airport which 
does not maintain and administer effective security measures, 
the Secretary of State shall immediately issue a travel 
advisory with respect to that airport. Any travel advisory 
issued pursuant to this subsection shall be published in the 
Federal Register. The Secretary of State shall take the 
necessary steps to widely publicize that travel advisory.
    [(b) Suspension of Foreign Assistance.--The President shall 
suspend all assistance under the Foreign Assistance Act of 1961 
or the Arms Export Control Act to any country in which is 
located an airport with respect to which section 1115(e)(2) of 
the Federal Aviation Act of 1958 becomes effective if the 
Secretary of State determines that such country is a high 
terrorist threat country. The President may waive the 
requirements of this subsection if the President determines and 
reports to the Congress that national security interests or a 
humanitarian emergency require such waiver.
    [(c) Lifting Sanctions.--The sanctions required to be 
imposed pursuant to this section may be lifted only if, 
pursuant to section 1115(f) of the Federal Aviation Act of 
1958, the Secretary of Transportation, in consultation with the 
Secretary of State, has determined that effective security 
measures are maintained and administered at the airport with 
respect to which the Secretary of Transportation had made the 
determination described in section 1115 of that Act.
    [(d) Notification to Congress.--The Congress shall be 
notified if any sanction imposed pursuant to this section is 
lifted.

[SEC. 553. UNITED STATES AIRMARSHAL PROGRAM.

    [(a) Study of Need for Expansion of Program.--The Secretary 
of Transportation, in coordination with the Secretary of State, 
shall study the need for an expanded airmarshal program on 
international flights of United States air carriers. The 
Secretary of Transportation shall report the results of this 
study to the Congress within 6 months after the date of 
enactment of this Act.
    [(b) Authority to Carry Firearms and make Arrests.--The 
Secretary of Transportation, with the approval of the Attorney 
General and Secretary of State, may authorize persons, in 
connection with the performance of their air transportation 
security duties, to carry firearms and to make arrests without 
warrant for any offense against the United States committed in 
their presence, or for any felony cognizable under the laws of 
the United States, if they have reasonable grounds to believe 
that the person to be arrested has committed or is committing a 
felony.

[SEC. 554. ENFORCEMENT OF INTERNATIONAL CIVIL AVIATION ORGANIZATION 
                    STANDARDS.

    [The Secretary of State and the Secretary of 
Transportation, jointly, shall call on the member countries of 
the International Civil Aviation Organization to enforce that 
Organization's existing standards and to support United States 
actions enforcing such standards.

[SEC. 555. INTERNATIONAL CIVIL AVIATION BOYCOTT OF COUNTRIES SUPPORTING 
                    INTERNATIONAL TERRORISM.

    [It is the sense of the Congress that the President--
            [(1) should call for an international civil 
        aviation boycott with respect to those countries which 
        the President determines--
                    [(A) grant sanctuary from prosecution to 
                any individual or group which has committed an 
                act of international terrorism, or
                    [(B) otherwise support international 
                terrorism; and
            [(2) should take steps, both bilateral and 
        multilateral, to achieve a total international civil 
        aviation boycott with respect to those countries.

[SEC. 556. MULTILATERAL AND BILATERAL AGREEMENTS WITH RESPECT TO 
                    AIRCRAFT SABOTAGE, AIRCRAFT HIJACKING, AND AIRPORT 
                    SECURITY.

    [The Secretary of State shall seek multilateral and 
bilateral agreement on strengthening enforcement measures and 
standards for compliance with respect to aircraft sabotage, 
aircraft hijacking, and airport security.

[SEC. 557. RESEARCH ON AIRPORT SECURITY TECHNIQUES FOR DETECTING 
                    EXPLOSIVES.

    [In order to improve security at international airports, 
there are authorized to be appropriated to the Secretary of 
Transportation from the Airport and Airway Trust Fund (in 
addition to amounts otherwise available for such purpose) 
$5,000,000, without fiscal year limitation, to be used for 
research on and the development of airport security devices or 
techniques for detecting explosives.
          * * * * * * *

               [TITLE VI--INTERNATIONAL NARCOTICS CONTROL

[SEC. 601. SHORT TITLE.

    [This title may be cited as the ``International Narcotics 
Control Act of 1985''.

[SEC. 602. AUTHORIZATIONS FOR INTERNATIONAL NARCOTICS CONTROL 
                    ASSISTANCE.

    [Subsection (a)(1) of section 482 of the Foreign Assistance 
Act of 1961 is amended to read as follows:
    [``(a)(1) To carry out the purposes of section 481, there 
are authorized to be appropriated to the President $57,529,000 
for fiscal year 1986 and $57,529,000 for fiscal year 1987.''.

[SEC. 603. DEVELOPMENT AND ILLICIT NARCOTICS PRODUCTION.

    [Section 126(b) of the Foreign Assistance Act of 1961 is 
amended--
            [(1) by inserting ``and under chapter 4 of part 
        II'' immediately after ``this chapter''; and
            [(2) by inserting ``(1)'' after ``(b)'' and by 
        adding at the end thereof the following new paragraph:
    [``(2) The agency primarily responsible for administering 
this part may utilize resources for activities aimed at 
increasing awareness of the effects of production and 
trafficking of illicit narcotics on source and transit 
countries.''.

[SEC. 604. REPORTS ON INTERNATIONAL NARCOTICS CONTROL ASSISTANCE.

    [Section 481(b) of the Foreign Assistance Act of 1961 is 
amended to read as follows:
    [``(b)(1) Not later than 45 days after the end of each 
calendar quarter, the President shall transmit to the Speaker 
of the House of Representatives, and to the Committee on 
Foreign Relations of the Senate, a report on the programming 
and obligation, on a calendar basis, of funds under this 
chapter prior to the end of that quarter. The last such report 
for each fiscal year shall include the aggregate obligations 
and expenditures made, and the types and quantity of equipment 
provided, on a calendar quarter basis, prior to end of that 
fiscal year--
            [``(A) to carry out the purpose of this chapter 
        with respect to each country and each international 
        organization receiving assistance under this chapter, 
        including the cost of the United States personnel 
        engaged in carrying out such purposes in each such 
        country and with each such international organization;
            [``(B) to carry out each program conducted under 
        this chapter in each country and by each international 
        organization, including the cost of United States 
        personnel engaged in carrying out each such program; 
        and
            [``(C) for administrative support services within 
        the United States to carry out the purposes of this 
        chapter, including the cost of United States personnel 
        engaged in carrying out such purposes in the United 
        States.
    [``(2) Not later than August 1 of each year, the President 
shall transmit to the Speaker of the House of Representatives, 
and to the Committee on Foreign Relations of the Senate, a 
complete and detailed midyear report on the activities and 
operations carried out under this chapter prior to such date. 
Such midyear report shall included, but not be limited to, the 
status of each agreement concluded prior to such date with 
other countries to carry out the purposes of this chapter.''.

[SEC. 605. EXEMPTION FROM BAN ON INVOLVEMENT OF UNITED STATES PERSONNEL 
                    IN ARREST ACTIONS IN NARCOTICS CONTROL EFFORTS 
                    ABROAD.

    [Section 481(c) of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
paragraph:
    [``(2) Paragraph (1) of this subsection shall not prohibit 
officers and employees of the United States from being present 
during direct police arrest actions with respect to narcotic 
control efforts in a foreign country to the extent that the 
Secretary of State and the government of that country agree to 
such an exemption. The Secretary of State shall report any such 
agreement to the Congress before the agreement takes effect.''.

[SEC. 606. ANNUAL REPORTS ON INVOLVEMENT OF FOREIGN COUNTRIES IN 
                    ILLICIT DRUG TRAFFIC.

    [Section 481(e) of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
paragraph:
    [``(6) Each report pursuant to this subsection shall 
describe the involvement of any foreign government (including 
any communist government) in illicit drug trafficking during 
the preceding fiscal year, including--
            [``(A) the direct or indirect involvement of such 
        government (or any official thereof) in the production, 
        processing, or shipment of narcotic and psychotropic 
        drugs and other controlled substances, and
            [``(B) any other activities of such government (or 
        any official thereof) which have facilitated illicit 
        drug trafficking.''.

[SEC. 607. PROCUREMENT OF WEAPONS TO DEFEND AIRCRAFT INVOLVED IN 
                    NARCOTICS CONTROL EFFORTS.

    [Of the funds available to carry out chapter 2 of part II 
of the Foreign Assistance Act of 1961 (relating to grant 
military assistance), $1,000,000 for each of the fiscal years 
1986 and 1987 shall be made available to arm, for defensive 
purposes, aircraft used in narcotic control eradication or 
interdiction efforts. The Committee on Foreign Affairs of the 
House of Representatives and the Committee on Foreign Relations 
of the Senate shall be notified of the use of any such funds 
for that purpose at least 15 days in advance in accordance with 
the reprogramming procedures applicable under section 634A of 
the Foreign Assistance Act of 1961.

[SEC. 608. REQUIREMENT FOR COST-SHARING IN INTERNATIONAL NARCOTICS 
                    CONTROL ASSISTANCE PROGRAMS.

    [Section 482 of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
subsection:
    [``(d) Assistance may be provided under this chapter to a 
foreign country only if the country provides assurances to the 
President, and the President is satisfied, that the country 
will provide at least 25 percent of the costs of any narcotics 
control program, project, or activity for which such assistance 
is to be provided. The costs borne by the country may include 
`in-kind' contributions.''.

[SEC. 609. PROHIBITION ON USE OF FOREIGN ASSISTANCE FOR REIMBURSEMENTS 
                    FOR DRUG CROP ERADICATIONS.

    [Chapter 8 of part I of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the following new 
section:
    [``Sec. 483. Prohibition on Use of Foreign Assistance for 
Reimbursements for Drug Crop Eradications.--Funds made 
available to carry out this Act may not be used to reimburse 
persons whose illicit drug crops are eradicated.''.

[SEC. 610. ASSISTANCE FOR JAMAICA.

    [In allocating assistance for Jamaica for fiscal year 1986 
under chapter 4 of part II of the Foreign Assistance Act of 
1961 (relating to the economic support fund), the President 
shall give major consideration to whether the Government of 
Jamaica has prepared, presented, and committed itself to a 
comprehensive plan or strategy for the control and reduction of 
illicit cultivation, production, processing, transportation, 
and distribution of marijuana within a specifically stated 
period of time.

[SEC. 611. ASSISTANCE FOR BOLIVIA.

    [Assistance may be provided to Bolivia for fiscal years 
1986 and 1987 under chapter 2 (relating to grant military 
assistance), chapter 4 (relating to the economic support fund), 
and chapter 5 (relating to international military education and 
training) of part (( of the Foreign Assistance Act of 1961, and 
under chapter 2 of the Arms Export Control Act (relating to 
foreign military sales financing), only under the following 
conditions:
            [(1) For fiscal year 1986--
                    [(A) up to 50 percent of the aggregate 
                amount of such assistance allocated for Bolivia 
                may be provided at any time after the President 
                certifies to the Congress that the Government 
                of Bolivia has enacted legislation that will 
                establish its legal coca requirements, provide 
                for the licensing of the number of hectares 
                necessary to produce the legal requirement, and 
                make unlicensed coca production illegal; and
                    [(B) the remaining amount of such 
                assistance may be provided at any time 
                following a certification pursuant to 
                subparagraph (A) if the President certifies to 
                the Congress that the Government of Bolivia has 
                achieved the eradication targets for the 
                calendar year 1985 contained in its 1983 
                narcotics agreements with the United States.
            [(2) For fiscal year 1987, such assistance may not 
        be provided unless the President certifies to the 
        Congress that the Government of Bolivia has developed a 
        plan to eliminate illicit narcotics production 
        countrywide and is prepared to enter into an agreement 
        with the United States to implement that plan. If that 
        certification is made, then--
                    [(A) up to 50 percent of the aggregate 
                amount of such assistance allocated for Bolivia 
                may be provided at any time after the President 
                certifies to the Congress that Bolivia has 
                engaged in narcotics interdiction operations 
                which have significantly disrupted the illicit 
                coca industry in Bolivia or has cooperated with 
                the United States in such operations; and
                    [(B) the remaining amount of such 
                assistance may be provided at any time after 
                the President certifies to the Congress that 
                Bolivia has either met in calendar year 1986 
                the eradication targets for the calendar year 
                1985 contained in its 1983 narcotics agreements 
                with the United States or has entered into an 
                agreement of cooperation with the Untied States 
                for implementing that plan for 1987 and beyond 
                (including numerical eradication targets) and 
                is making substantial progress toward the 
                plan's objectives, including substantial 
                eradication of illicit coca crops and effective 
                use of United States assistance.
In the certification required by subparagraph (B), the 
President shall explain why the terms of the 1983 agreement 
provided unattainable and the reasons why a new agreement was 
necessary.

[SEC. 612. ASSISTANCE TO PERU.

    [(a) Conditions on Assistance.--United States assistance 
(as defined by section 481(i)(4) of the Foreign Assistance Act 
of 1961) may be provided for Peru--
            [(1) for fiscal year 1986, only if the President 
        reports to the Congress that the Government of Peru has 
        demonstrated substantial progress in developing a plan 
        that will establish its legal coca requirements, 
        license the number of hectares necessary to produce the 
        legal requirement, and eliminate illicit and unlicensed 
        coca production; and
            [(2) for fiscal year 1987, only if the President 
        reports to the Congress that the Government of Peru has 
        developed such a plan and is implementing it.
    [(b) Upper Huallaga Valley Project.--Funds authorized to be 
appropriated for fiscal year 1987 to carry out chapter 1 of 
part I of the Foreign Assistance Act of 1961 (relating to 
development assistance) may be made available for the project 
of the Agency for International Development in the Upper 
Huallaga Valley of Peru only if the Administrator of that 
Agency, after consultation with the Congress, determines that a 
comprehensive review of that project has been completed which 
establishes the effectiveness of that project in reducing and 
eradicating coca leaf production, distribution, and marketing 
in the Upper Huallaga Valley. The assistance for Peru described 
in this subsection may be provided only if the report required 
by subsection (a)(2) has been submitted to the Congress.

[SEC. 613. REALLOCATION OF FUNDS IF CONDITIONS NOT MET.

    [If any of the assistance described in section 611 is not 
provided for Bolivia because the conditions specified in that 
section are not met, or if any of the assistance described in 
sections 612(a) is not provided for Peru because the conditions 
specified in that section are not met, the President shall 
reprogram such assistance in order to provide additional 
assistance to countries which have taken significant steps to 
halt illicit drug production or trafficking.

[SEC. 614. CONDITIONS ON UNITED STATES CONTRIBUTIONS TO THE UNITED 
                    NATIONS FUND FOR DRUG ABUSE CONTROL.

    [Section 482(a) of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
subsection:
    [``(3) Funds authorized to be appropriated by this section 
for fiscal year 1986 and for fiscal year 1987 may be used for a 
contribution to the United Nations Fund for Drug Abuse Control 
only if that organization includes in its crop substitution 
projects a plan for cooperation with the law enforcement forces 
of the host country.''.

[SEC. 615. LATIN AMERICAN REGIONAL NARCOTICS CONTROL ORGANIZATION.

    [(a) Feasibility Study.--The Secretary of State, with the 
assistance of the National Drug Enforcement Policy Board, shall 
conduct a study of the feasibility of establishing a regional 
organization in Latin America which would combat narcotics 
production and trafficking through regional information-sharing 
and a regional enforcement unit.
    [(b) Report.--No later than six months after the date of 
enactment of this Act, a report on the advisability of 
encouraging the establishment of such an organization shall be 
submitted to the Committee on Foreign Affairs and the Committee 
on the Judiciary of the House of Representatives and the 
Committee on Foreign Relations and the Committee on the 
Judiciary of the Senate.

[SEC. 616. GREATER EFFORT BY UNITED STATES ARMED FORCES TO SUPPORT 
                    NARCOTICS CONTROL EFFORTS ABROAD.

    [No later than 60 days after the date of enactment of this 
Act, the President shall report to the Congress on why the 
United States Armed Forces should not exert greater effort in 
facilitating and supporting interception of narcotics 
traffickers, and in gathering narcotics-related intelligence, 
outside the United States.

[SEC. 617. CUBAN DRUG TRAFFICKING.

    [(a) Findings.--The Congress finds that--
            [(1) the subject of the flow, use, and control of 
        narcotic and psychotropic substances is a matter of 
        great international importance;
            [(2) the problem of drug abuse and drug trafficking 
        continues to worsen throughout most parts of the world;
            [(3) the concerns of the governments of many 
        countries have become manifest in several bilateral and 
        multilateral narcotics control projects;
            [(4) United Nations agencies monitor and apply 
        controls on the flow and use of drugs and coordinate 
        multilateral efforts to control production, 
        trafficking, and abuse of drugs;
            [(5) the United Nations Fund for Drug Abuse Control 
        funds narcotics projects throughout the world and has 
        been a vehicle since 1971 for multilateral 
        implementation of narcotics control and reduction 
        programs;
            [(6) the International Narcotics Control Board is 
        charged with monitoring compliance with the Single 
        Convention on Narcotic Drugs, 1961, and the Convention 
        on Psychotropic Substances, and Cuba is a party to both 
        Conventions;
            [(7) the United Nations Commission on Narcotic 
        Drugs is responsible for formulating polices, 
        coordinating activities, supervising the implementation 
        of international conventions, and making 
        recommendations to governments for international drug 
        control;
            [(8) the promotion of drug abuse and participation 
        in drug trafficking is universally considered egregious 
        criminal behavior wherever it occurs, whether it occurs 
        locally, nationally, or internationally;
            [(9) a Federal grand jury of the United States has 
        indicted four prominent Cuban officials on charges of 
        conspiring to smuggle drugs into the Untied States;
            [(10) United States Government officials have 
        testified at several congressional hearings that the 
        Government of Cuba is facilitating the flow of illicit 
        drugs into the United States in order to obtain hard 
        currency, support guerrilla/terrorist activities, and 
        undermine United States society; and
            [(11) such alleged conduct on the part of the 
        Government of Cuba would be injurious to the world 
        community and counter to the general principle of 
        international law that no country has the right to use 
        or permit the use of its territory in such a manner as 
        to injure another country or persons therein.
    [(b) Recommended Actions.--It is the sense of the Congress 
that the President should--
            [(1) acting through the Permanent Representative on 
        the United States to the United Nations, take such 
        steps as may be necessary to place the question of the 
        involvement by the Government of Cuba in illicit drug 
        trafficking on the agenda of the United Nations;
            [(2) acting through the Representative of the 
        United States to the Organization of American States, 
        request the Organization of American States to consider 
        this question as soon as possible; and
            [(3) request other appropriate international 
        organizations and international forums to consider this 
        question.
    [(c) Report.--The President shall report to the Congress on 
the actions taken pursuant to this section.

[SEC. 618. PROHIBITION ON ASSISTANCE TO COUNTRIES WHICH DO NOT TAKE 
                    ADEQUATE STEPS TO HALT DRUG TRAFFICKING.

    [Section 481(h) of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
paragraph:
    [``(4) In addition to the requirements applicable to major 
illicit drug producing countries pursuant to paragraph (1), the 
President shall not provide any assistance under this Act or 
the Arms Export Control Act to any other country which the 
President determines has not taken adequate steps to prevent--
            [``(A) the processing (in whole or in part) in such 
        country of narcotic and psychotropic drugs or other 
        controlled substances,
            [``(B) the transportation through such country of 
        narcotic and psychotropic drugs or other controlled 
        substances, and
            [``(C) the use of such country as a refuge for 
        illegal drug traffickers.''.

[SEC. 619. DRUG TRAFFICKING AND THE PROBLEM OF TOTAL CONFIDENTIALITY OF 
                    CERTAIN FOREIGN BANK ACCOUNTS.

    [(a) Findings.--The Congress finds that--
            [(1) several banks in Latin America and the 
        Caribbean are used by narcotics traffickers as 
        depositories for money obtained in providing illicit 
        drugs to the United States and other countries of the 
        region;
            [(2) offshore banks which provide total 
        confidentiality provide a service which materially 
        assists the operations of illicit drug traffickers; and
            [(3) cooperation in gaining access to the bank 
        accounts of such narcotics traffickers would materially 
        assist United States authorities in controlling the 
        activities of such traffickers.
    [(b) Policy.--The Congress--
            [(1) requests the President to negotiate treaties 
        or appropriate international agreements with all 
        countries providing confidential banking services 
        (giving high priority to countries in the Caribbean 
        region) to provide disclosure to the United States 
        Government of information contained in official 
        records, and in records of bank accounts, concerning 
        persons under investigation for violations of United 
        States law, in particular those regarding international 
        drug trafficking;
            [(2) directs the President to include reports on 
        the results of such efforts in the annual International 
        Narcotics Control Strategy Report; and
            [(3) reaffirms its intention to obtain maximum 
        cooperation on the part of all governments for the 
        purpose of halting international drug trafficking, and 
        constantly to evaluate the cooperation of those 
        governments receiving assistance from the United 
        States.

                     [TITLE VII--WESTERN HEMISPHERE

[SEC. 701. CENTRAL AMERICA DEMOCRACY, PEACE, AND DEVELOPMENT 
                    INITIATIVE.

    [Part I of the Foreign Assistance Act of 1961 is amended by 
adding after chapter 5 the following new chapter:

    [``CHAPTER 6--CENTRAL AMERICA DEMOCRACY, PEACE, AND DEVELOPMENT 
                               INITIATIVE

    [``Sec. 461. Statement of Policy.--(a) The congress finds 
that--
            [``(1) the building of democracy, the restoration 
        of peace, the improvement of living conditions, and the 
        application of equal justice under law in Central 
        America are important to the interests of the United 
        States and the community of American States; and
            [``(2) the interrelated issues of social and human 
        progress, economic growth, political reform, and 
        regional security must be effectively dealt with to 
        assure a democratic and economically and politically 
        secure Central America.
    [``(b)(1) The achievement of democracy, respect for human 
rights, peace, and equitable economic growth depends primarily 
on the cooperation and the human and economic resources of the 
people and governments of Central America. The Congress 
recognizes that the United States can make a significant 
contribution to such peaceful and democratic development 
through a consistent and coherent policy which includes a long-
term commitment of assistance. This policy should be designed 
to support actively--
            [``(A) democracy and political reform, including 
        opening the political process to all members of 
        society;
            [``(B) full observance of internationally 
        recognized human rights, including free elections, 
        freedom of the press, freedom of association, and the 
        elimination of all human rights abuses;
            [``(C) leadership development, including training 
        and educational programs to improve public 
        administration and the administration of justice;
            [``(D) land reform, reform in tax systems, 
        encouragement of private enterprise and individual 
        initiative, creation of favorable investment climates, 
        curbing corruption where it exists, and spurring 
        balanced trade;
            [``(E) the establishment of the rule of law and an 
        effective judicial system; and
            [``(F) the termination of extremist violence by 
        both the left and the right as well as vigorous action 
        to prosecute those guilty of crimes and the prosecution 
        to the extent possible of past offenders.
    [``(2) The policy described in paragraph (1) should also 
promote equitable economic growth and development, including 
controlling the flight of capital and the effective use of 
foreign assistance and adhering to approved programs for 
economic stabilization and fiscal responsibility. Finally, this 
policy should foster dialog and negotiations--
            [``(A) to achieve peace based upon the objectives 
        of democratization, reduction of armament, and end to 
        subversion, and the withdrawal of foreign military 
        forces and advisers; and
            [``(B) to provide a security shield against 
        violence and intimidation.
    [``(3) It is the purpose of this chapter to establish the 
statutory framework and to authorize the appropriations and 
financing necessary to carry out the policy described in this 
section.
    [``(c) The Congress finds, therefore, that the people of 
the United States are willing to sustain and expand a program 
of economic and military assistance in central America if the 
recipient countries can demonstrate progress toward and a 
commitment to these goals.
    [``Sec. 462. Conditions on Furnishing Assistance.--The 
President shall ensure that assistance authorized by this Act 
and the Arms Export Control Act to Central American countries 
is furnished in a manner which fosters demonstrated progress 
toward and commitment to the objectives set forth in section 
461. Where necessary to achieve this purpose, the President 
shall impose conditions on the furnishing of such assistance. 
In carrying out this section, the President shall consult with 
the Congress in regard to progress toward the objectives set 
forth in section 461, and any conditions imposed on the 
furnishing of assistance in furtherance of those objectives.
    [``Sec. 463. Peace Process in Central America.--The 
Congress--
            [``(1) strongly supports the initiatives taken by 
        the Contadora group and the resulting Document of 
        Objectives which has been agreed to by Costa Rica, El 
        Salvador, Guatemala, Honduras, and Nicaragua and which 
        sets forth a framework for negotiating a peaceful 
        settlement to the conflict and turmoil in the region; 
        and
            [``(2) finds that the United States should provide 
        such assistance and support as may be appropriate in 
        helping to reach comprehensive and verifiable final 
        agreements, based on the Document of Objectives, which 
        will ensure peaceful and enduring solutions to the 
        Central American conflicts.
    [``Sec. 464. Economic Assistance Coordination.--(a) The 
Congress finds that participation by Central American countries 
in an effective forum for dialog on, and the continuous review 
and advancement of, Central America's political, economic, and 
social development would foster cooperation between the United 
States and Central American countries.
    [``(b) It is the sense of the Congress that--
            [``(1) the President should enter into negotiations 
        with the countries of Central America to establish a 
        Central American Development Organization (hereafter in 
        this section referred to as the `Organization') to help 
        provide a continuous and coherent approach to the 
        development of the Central American region; and
            [``(2) the establishment of the Organization should 
        be based upon the following principles:
                    [``(A) Participation in the Organization 
                should be open to the United States, other 
                donors, and those Central American countries 
                that commit themselves to, among other things, 
                respecting internationally recognized human 
                rights, building democracy, and encouraging 
                equitable economic growth through policy 
                reforms.
                    [``(B) The Organization should be 
                structured to include representatives from both 
                the public and private sectors, including 
                representatives from the labor, agriculture, 
                and business communities.
                    [``(C) The Organization should meet 
                periodically to carry out the functions 
                described in subparagraphs (D) and (E) of this 
                paragraph and should be supported by a limited 
                professional secretariat.
                    [``(D) The Organization should make 
                recommendations affecting Central American 
                countries on such matters as--
                            [``(i) political, economic, and 
                        social development objectives, 
                        including the strengthening of 
                        democratic pluralism and the 
                        safeguarding of internationally 
                        recognized human rights;
                            [``(ii) mobilization of resources 
                        and external assistance needs; and
                            [``(iii) reform of economic 
                        policies and structures.
                    [``(E) The Organization should have the 
                capacity for monitoring country performance on 
                recommendations issued in accordance with 
                subparagraph (D) of this paragraph and for 
                evaluating progress toward meeting such country 
                objectives.
                    [``(F) To the maximum extent practicable, 
                the United States should follow the 
                recommendations of the Organization in 
                disbursing bilateral economic assistance for 
                any Central American country. No more than 75 
                percent of such United States assistance in any 
                fiscal year should be disbursed until the 
                recommendations of the Organization for that 
                fiscal year have been made final and 
                communicated to the donor countries. The 
                limitation on disbursements contained in the 
                preceding sentence should apply only to 
                recommendations made final and communicated to 
                donor countries prior to the fourth quarter of 
                such fiscal year. The United States 
                representative to the Organization should urge 
                other donor countries to similarly implement 
                the recommendations of the Organization.
                    [``(G) The administrator of the agency 
                primarily responsible for administering part I 
                of this Act, or his designee, should represent 
                the United States Government in the 
                Organization and should carry out his functions 
                in that capacity under the continuous 
                supervision and general direction of the 
                Secretary of State.
    [``(c) Subject to subsection (d)(2), the President is 
authorized to participate in the Organization.
    [``(d)(1) The administrator of the agency primarily 
responsible for administering part I of this Act, under the 
supervision and direction of the Secretary of State, shall 
prepare a detailed proposal to carry out this section and shall 
keep the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Foreign Relations of the 
Senate fully and currently informed concerning the development 
of this proposal.
    [``(2) The President shall transmit to the Committee on 
Foreign Affairs of the House of Representatives and the 
Committee on Foreign Relations of the Senate a copy of the text 
of any agreement, which he proposes to sign, that would provide 
for the establishment of and United States participation in the 
Organization no less than sixty days prior to his signature. 
During that sixty-day period there shall be full and formal 
consultations with and review by those committees in accordance 
with procedures applicable to reprogramming notifications 
pursuant to section 634A of this Act.
    [``Sec. 465. Authorizations for Fiscal Years 1988 and 
1989.--(a) In addition to amounts otherwise available for such 
purposes, there are authorized to be appropriated to the 
President, for the purpose of furnishing nonmilitary assistance 
for Central American countries, $1,200,000,000 for each of the 
fiscal years 1988 and 1989, which are authorized to remain 
available until expended.
    [``(b) For the purpose of providing the assistance 
described in subsection (a), funds appropriated pursuant to the 
authorizations in that subsection may be transferred by the 
President for obligation in accordance with the authorities of 
part I of this Act (including chapter 4 of part II), the Peace 
Corps Act, the Migration and Refugee Assistance Act of 1962, 
the United States Information and Education Exchange Act of 
1948, the Mutual Educational and Cultural Exchange Act of 1961, 
the National Endowment for Democracy Act, and the State 
Department Basic Authorities Act of 1956.
    [``Sec. 466. Definitions.--For the purposes of this 
chapter, the term `Central American countries' includes Belize, 
Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, 
Panama, and regional programs which benefit such countries.''.

[SEC. 702. EL SALVADOR.

    [(a) Support for El Salvador.--The Congress finds that--
            [(A) a free and democratic El Salvador is in the 
        security interest of the United States;
            [(B) Jose Napoleon Duarte was elected President of 
        El Salvador in 1984 in the most democratic election 
        held in El Salvador in many years;
            [(C) political violence in El Salvador has declined 
        dramatically under President Durate's leadership;
            [(D) President Duarte's policies of respect for 
        human rights, political pluralism, dialogue and 
        reconciliation with the Salvadoran guerrilla forces, 
        legal and social reform, and effective defense against 
        the violent overthrow of the Salvadoran government are 
        deserving of praise from all who believe in a 
        democratic form of government;
            [(E) the March 31, 1985, legislative and municipal 
        elections were successfully carried out, with 64 
        percent of the electorate defying guerrilla attacks to 
        vote;
            [(F) the victory of President Duarte's Christian 
        Democratic Party reaffirms the support for these 
        policies by his fellow citizens, the essential test of 
        any government or movement;
            [(G) in spite of the state of siege technically in 
        effect due to the insurgent threat, observance of free 
        speech, free press, and free assembly are widely 
        enjoyed in El Salvador and permit public airing of 
        opposing political views;
            [(H) President Duarte is firmly committed to 
        judicial reform and prosecution of cases involving 
        ``death squads'';
            [(I) President Duarte's leadership and popular 
        support has notably weakened the popular support given 
        the guerrillas, as evidenced by the high levels of 
        voter participation in the free elections held in El 
        Salvador since 1982, the reduction in territory in 
        which the guerrillas can freely operate, their 
        inability to mount frontal military attacks, and their 
        resort to economic sabotage, ambushes, political 
        assassination, and urban terrorism with blatant 
        disregard for basic human rights; and
            [(J) President Duarte has succeeded in reversing 
        the decline in his country's economy which, though 
        still weak, has better prospects than in recent years.
    [(2) Therefore, it is the sense of the Congress that--
            [(A) President Duarte is to be congratulated for 
        his outstanding leadership under difficult 
        circumstances and for his efforts to foster democratic 
        government and institutions in his country, and he is 
        encouraged to continue his efforts to promote political 
        pluralism, democratic institutions, and respect for 
        human rights in his country; and
            [(B) the armed services of El Salvador are to be 
        congratulated for their improved performance and 
        professionalism in defending Salvadoran citizens and 
        their democratically elected government from attack by 
        armed insurgents, and especially for their role in 
        helping to protect and uphold the electoral process.
    [(3) The Congress reaffirms the importance of continued 
support for democratic principles and institutions and respect 
for human rights by the various sectors of Salvadoran society, 
which is a major factor in United States support for El 
Salvador.
    [(b) Objectives.--The Congress expects that--
            [(1) the Government of El Salvador will be willing 
        to pursue a dialogue with the armed opposition forces 
        and their political representatives for the purposes of 
        achieving an equitable political settlement of the 
        conflict, including free and fair elections;
            [(2) the elected civilian government will be in 
        control of the Salvadoran military and security forces, 
        and those forces will comply with applicable rules of 
        international law and with Presidential directives 
        pertaining to the protection of civilians during combat 
        operations, including Presidential directive C-111-03-
        984 (relating to aerial fire support);
            [(3) the Government of El Salvador will make 
        demonstrated progress, during the period covered by 
        each report pursuant to subsection (c), in ending the 
        activities of the death squads;
            [(4) the Government of El Salvador will make 
        demonstrated progress, during the period covered by 
        each report pursuant to subsection (c), in establishing 
        an effective judicial system; and
            [(5) the Government of El Salvador will make 
        demonstrated progress, during the period covered by 
        each report pursuant to subsection (c), in implementing 
        the land reform program.
    [(c) Reports.--On October 1, 1985, April 1, 1986, October 
1, 1986, and April 1, 1987, the President shall report to the 
Speaker of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate on the extent to 
which the objectives described in subsection (b) are being met. 
With respect to the objective described in paragraph (4) of 
that subsection, each report shall discuss whether the 
commission proposed by the President of El Salvador to 
investigate human rights cases has been established, funded, 
and given sufficient investigative powers; whether the evidence 
that commission collects may be used in the Salvadoran judicial 
process; whether that commission has issued a comprehensive 
report with regard to its investigation of all Americans 
murdered in El Salvador; and whether those responsible for the 
Las Hojas massacre are being prosecuted.
    [(d) Aircraft for Aerial Warfare.--(1) The authorities of 
part II of the Foreign Assistance Act of 1961 and the Arms 
Export Control Act may not be used to make available to El 
Salvador any helicopters or other aircraft, and licenses may 
not be issued under section 38 of the Arms Export Control Act 
for the export to El Salvador of any such aircraft, unless the 
Committee on Foreign Affairs of the House of Representatives 
and the Committee on Foreign Relations of the Senate are 
notified at least 15 days in advance in accordance with the 
procedures applicable to reprogramming notifications under 
section 634A of the Foreign Assistance Act of 1961.
    [(2) Paragraph (1) shall take effect on the date of 
enactment of this Act and shall remain in effect until October 
1, 1987.
    [(e) Special Account for Local Currencies.--(1) All local 
currencies, which are generated with the funds provided to El 
Salvador for balance-of-payments support for fiscal years 1986 
and 1987 under chapter 4 of part II of the Foreign Assistance 
Act of 1961 (relating to the economic support fund), shall be 
deposited in accordance with section 609 of that Act in a 
special account established by the Government of El Salvador.
    [(2) Local currencies deposited pursuant to paragraph (1) 
shall be used for projects assisting agrarian reform and the 
agricultural sector (and particular emphasis shall be placed on 
projects for these purposes); judicial reform; employment 
generation; health, education, and other social services; 
infrastructure repair; and credits and other support for the 
private sector (principally for small and medium sized 
businesses).
    [(3) For purposes of this subsection--
            [(A) the term ``agrarian reform'' means projects 
        assisting or enhancing the abilities of agencies, 
        cooperatives, and farms to implement land reform 
        decrees in El Salvador, notwithstanding section 620(g) 
        of the Foreign Assistance Act of 1961; and
            [(B) the term ``judicial reform'' means projects 
        assisting or enhancing the abilities of agencies of the 
        Salvadoran Government to investigate and prosecute 
        politically motivated violence.
    [(f) Development Assistance.--Of the amounts available to 
carry out chapter 1 of part I of the Foreign Assistance Act of 
1961, $79,600,000 for fiscal year 1986 and $79,600,000 for 
fiscal year 1987 shall be available only for El Salvador.
    [(g) Suspension of Assistance if a Military Coup Occurs.--
All assistance authorized by this Act which is allocated for El 
Salvador shall be suspended if the elected President of that 
country is deposed by military coup or decree.

[SEC. 703. ASSISTANCE FOR GUATEMALA.

    [(a) Conditions on Military Assistance and Sales.--For 
fiscal years 1986 and 1987, assistance may be provided for 
Guatemala under chapter 2 of part II of the Foreign Assistance 
Act of 1961 (relating to grant military assistance) and sales 
may be made and financing may be provided for Guatemala under 
the Arms Export Control Act (relating to foreign military 
sales) only if the President makes the following certifications 
to the Congress:
            [(1) For fiscal year 1986, an elected civilian 
        government is in power in Guatemala and has submitted a 
        formal written request to the United States for the 
        assistance, sales, or financing to be provided.
            [(2) For both fiscal years 1986 and 1987, the 
        Government of Guatemala made demonstrated progress 
        during the preceding year--
                    [(A) in achieving control over its military 
                and security forces,
                    [(B) toward eliminating kidnappings and 
                disappearances, forced recruitment into the 
                civil defense patrols, and other abuses by such 
                forces of internationally recognized human 
                rights, and
                    [(C) in respecting the internationally 
                recognized human rights of its indigenous 
                Indian population.
    [(b) Construction Equipment and Mobile Medical Facilities 
and Related Training.--If the conditions specified in 
subsection (a) are met, Guatemala may be provided with the 
following for fiscal years 1986 and 1987 (in addition to such 
other assistance, sales, or financing as may be provided for 
Guatemala):
            [(1) Sales of construction equipment and mobile 
        medical facilities to assist in development programs 
        that will directly assist the poor in Guatemala.
            [(2) Sales of training, to be provided outside of 
        Guatemala, which is related to the sales described in 
        paragraph (1).
            [(3) A total for both fiscal years 1986 and 1987 of 
        no more than $10,000,000 in credits under the Arms 
        Export Control Act for sales described in paragraphs 
        (1) and (2).
Such sales and credits shall be provided only to enable the 
military forces of Guatemala to obtain equipment and training 
for civilian engineering and construction projects and mobile 
medical teams, which would not be used in the rural 
resettlement program.
    [(c) Prohibition on Furnishing Weapons.--Funds required to 
be appropriated by title I of this Act may not be used for the 
procurement by Guatemala of any weapons or ammunition.
    [(d) Suspension of Assistance if a Military Coup Occurs.--
All assistance authorized by this Act which is allocated for 
Guatemala shall be suspended if the elected civilian government 
of that country is deposed by military coup or decree.
    [(e) Rural Resettlement Program.--Assistance provided for 
Guatemala for the fiscal year 1986 and fiscal year 1987 under 
chapter 1 of part I (relating to development assistance) or 
under chapter 4 of part II (relating to the economic support 
fund) of the Foreign Assistance Act of 1961--
            [(1) may not be provided to the Government of 
        Guatemala for use in its rural resettlement program; 
        and
            [(2) shall be provided through private and 
        voluntary organizations to the maximum extent possible.
    [(f) Invitation for ICRC To Visit Guatemala.--The Congress 
calls upon the President to urge the Government of Guatemala to 
allow the International Committee of the Red Cross--
            [(1) to conduct an unimpeded visit to Guatemala in 
        order to investigate humanitarian needs in that country 
        and to report on human rights abuses in that country; 
        and
            [(2) to investigate the possibilities of its 
        providing humanitarian services in that country.
    [(g) Relations Between Belize and Guatemala.--It is the 
sense of the Congress that the United States should use its 
good offices and influences to encourage the Government of 
Guatemala to recognize the independence of Belize and to enter 
into a mutual nonaggression treaty with Belize.
    [(h) Human Rights Groups in Guatemala.--(1) The Congress 
finds that--
            [(A) the Group for Mutual Support was formed in 
        1984 to protest the disappearances of Guatemalan 
        civilians;
            [(B) the Group for Mutual Support has carried out 
        its work in a peaceful, non-ideological manner, and is 
        the only indigenous human rights group operating in 
        Guatemala; and
            [(C) two of the Group's six steering committee 
        members, Hector Gomez and Maria Rosario Godyo de 
        Cuevas, were recently killed.
    [(2) It is the sense of the Congress that--
            [(A) human rights groups in Guatemala, particularly 
        the Group for Mutual Support, should be allowed to 
        carry out their work against human rights abuses with 
        the full cooperation, protection, and support of the 
        Government of Guatemala; and
            [(B) whether the Government of Guatemala allows 
        human rights groups, including the Group for Mutual 
        Support, to carry out their work should be taken into 
        account by the United States in determining whether 
        there is human rights progress in Guatemala.

[SEC. 704. REFUGEES IN HONDURAS.

    [Funds authorized to be appropriated by this Act and funds 
authorized to be appropriated for the ``Migration and Refugee 
Assistance'' account for fiscal years 1986 and 1987--
            [(1) which are to be used for refugee assistance or 
        other assistance for Nicaraguan Indian refugees in 
        Honduras shall be channeled, to the maximum extent 
        possible, through the United Nations High Commissioner 
        for Refugees, the International Committee of the Red 
        Cross, the Intergovernmental Committee for Migration, 
        or other established and recognized international 
        refugee relief organizations; and
            [(2) may not be used to facilitate the involuntary 
        repatriation of Salvadoran refugees who are in 
        Honduras.

[SEC. 705. PROMOTING THE DEVELOPMENT OF THE HAITIAN PEOPLE AND 
                    PROVIDING FOR ORDERLY EMIGRATION FROM HAITI.

    [(a) Use of PVOs.--To the maximum extent practicable, 
assistance for Haiti under chapter 1 of part I (relating to 
development assistance) and under chapter 4 of part II 
(relating to the economic support fund) of the Foreign 
Assistance Act of 1961 should be provided through private and 
voluntary organizations.
    [(b) Conditions on Assistance.--Funds available for fiscal 
year 1986 and for fiscal year 1987 to carry out chapter 1 of 
part I (relating to development assistance), chapter 4 of part 
II (relating to the economic support fund), or chapter 5 of 
part II (relating to international military education and 
training) of the Foreign Assistance Act of 1961 may be 
obligated for Haiti only if the President determines that the 
Government of Haiti--
            [(1) is continuing to cooperate with the United 
        States in halting illegal emigration to the United 
        States from Haiti;
            [(2) is cooperating fully in implementing United 
        States development, food, and other economic assistance 
        programs in Haiti (including programs for prior fiscal 
        years); and
            [(3) is making progress toward improving the human 
        rights situation in Haiti and progress toward 
        implementing political reforms which are essential to 
        the development of democracy in Haiti, such as progress 
        toward the establishment of political parties, free 
        elections, free labor unions, and freedom of the press.
    [(c) Reports to the Congress.--Not later than one year 
after the date of the enactment of this Act and one year 
thereafter, the President shall report to the Congress on the 
extent to which the actions of the Government of Haiti are 
consistent with each paragraph of subsection (b).
    [(d) Assistance in Halting Illegal Emigration From Haiti.--
Notwithstanding the limitations of section 660 of the Foreign 
Assistance Act of 1961 (relating to police training), funds 
made available under such Act may be used for programs with 
Haiti, which shall be consistent with prevailing United States 
refugee policies, to assist in halting significant illegal 
emigration from Haiti to the United States.
    [(e) Limitation on MAP and FMS Financing.--Assistance may 
not be provided for Haiti for fiscal year 1986 or fiscal year 
1987 under chapter 2 of part II of the Foreign Assistance Act 
of 1961 (relating to grant military assistance) or under the 
Arms Export Control Act (relating to foreign military sales 
financing), except for necessary transportation, maintenance, 
communications, and related articles and services to enable the 
continuation of migrant and narcotics interdiction operations.
    [(f) Literacy and Other Education Programs.--Of the amounts 
authorized to be appropriated to carry out chapter 1 of part I 
of the Foreign Assistance Act of 1961 (relating to development 
assistance) which are allocated for Haiti, $1,000,000 for 
fiscal year 1986 and $1,000,000 for fiscal year 1987 shall be 
available only for literacy and other education programs in 
Haiti.

[SEC. 706. MILITARY ASSISTANCE FOR PARAGUAY.

    [For the fiscal years 1986 and 1987, none of the funds 
authorized to be appropriated to carry out chapter 2 of part II 
of the Foreign Assistance Act of 1961 (relating to grant 
military assistance) or to carry out the Arms Export Control 
Act (relating to foreign military sales financing) may be used 
for assistance for Paraguay unless the President certifies to 
the Congress that the Government of Paraguay has ended the 
practice of torture and abuse of individuals held in detention 
by its military and security forces and has instituted 
procedures to ensure that those arrested are promptly charged 
and brought to trial.

[SEC. 707. ASSISTANCE FOR PERU.

    [(a) Human Rights Training in IMET Programs.--Respect for 
internationally recognized human rights shall be an important 
component of the training provided for Peru under chapter 5 of 
part II of the Foreign Assistance Act of 1961 for fiscal year 
1986 and for fiscal year 1987.
    [(b) Strengthening the Peruvian Judicial System.--Of the 
amount authorized to be appropriated by this Act to carry out 
chapter 4 of part II of the Foreign Assistance Act of 1961 
(relating to the economic support fund), $1,000,000 for fiscal 
year 1986 and $1,000,000 for fiscal year 1987 shall be used to 
strengthen the judicial system in Peru under section 534 of the 
Foreign Assistance Act of 1961 (relating to administration of 
justice).

[SEC. 708. INTER-AMERICAN FOUNDATION.

    [The first sentence of section 401(s)(2) of the Foreign 
Assistance Act of 1969 is amended to read as follows: ``There 
are authorized to be appropriated $11,969,000 for fiscal year 
1986 and $11,969,000 for fiscal year 1987 to carry out the 
purposes of this section.''.

[SEC. 709. COMPREHENSIVE REPORTS ON ASSISTANCE FOR LATIN AMERICA AND 
                    THE CARIBBEAN.

    [(a) Requirement for Comprehensive Accounting of 
Assistance.--In the annual reports required by section 634 of 
the Foreign Assistance Act of 1961, the President shall provide 
to the Congress a full, complete, and detailed accounting of 
all assistance provided during the fiscal years 1986 and 1987 
for Latin America and the Caribbean under the Foreign 
Assistance Act of 1961 and the Arms Export Control Act.
    [(b) Information To Be Included.--The report provided 
pursuant to subsection (a) shall include for each fiscal year, 
among other things, the following with respect to each 
authorization account:
            [(1) The specific projects and other activities 
        carried out in each country.
            [(2) The number of persons from each country who 
        were provided with training, and the types of training 
        provided.
            [(3) The defense articles and defense services 
        provided for each country.
            [(4) The types of goods and commodities provided to 
        each country for economic stabilization purposes under 
        chapter 4 of part II of the Foreign Assistance Act of 
        1961 (relating to the economic support fund), and a 
        copy of each agreement for the furnishing of any 
        assistance under that chapter.
            [(5) The amounts of local currency generated by 
        United States assistance to each country, the uses of 
        those currencies, and the total amount of those 
        currency still available for use as of the time of the 
        report.
            [(6) A report on any transfers or reprogrammings of 
        funds, and a description of how transferred or 
        reprogrammed funds modified the amounts requested for 
        each account.
            [(7) A report on the funds which have been 
        obligated but remain unexpended for each country in 
        each account.
            [(8) An analysis of the amount of funds and 
        programs provided through nongovernmental as contrasted 
        to governmental channels.

[SEC. 710. USE OF PRIVATE AND VOLUNTARY ORGANIZATIONS.

    [To the maximum extent practicable, assistance under 
chapter 1 of part I (relating to development assistance) and 
chapter 4 of part II (relating to the economic support fund) of 
the Foreign Assistance Act of 1961 for countries in Latin 
America and the Caribbean should be provided through private 
and voluntary organizations which have a proven record of 
development assistance efforts overseas.

[SEC. 711. ASSISTANCE FOR LAW ENFORCEMENT AGENCIES.

    [Section 660 of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
subsections:
    [``(c) Subsection (a) shall not apply with respect to a 
country which has a longstanding democratic tradition, does not 
have standing armed forces, and does not engage in a consistent 
pattern of gross violations of internationally recognized human 
rights.
    [``(d) Notwithstanding the prohibition contained in 
subsection (a) assistance may be provided to Honduras or El 
Salvador for fiscal years 1986 and 1987 if, at least 30 days 
before providing assistance, the President notifies the 
Committee on Foreign Affairs of the House of Representatives 
and the Committee on Foreign Relations of the Senate, in 
accordance with the procedures applicable to reprogramming 
notifications pursuant to section 634A of this Act, that he has 
determined that the government of the recipient country has 
made significant progress, during the preceding six months, in 
eliminating any human rights violations including torture, 
incommunicado detention, detention of persons solely for the 
nonviolent expression of their political views, or prolonged 
detention without trial. Any such notification shall include a 
full description of the assistance which is proposed to be 
provided and of the purposes to which it is to be directed.''.

[SEC. 712. ADMINISTRATION OF JUSTICE.

    [Chapter 4 of part II of the Foreign Assistance Act of 1961 
(relating to the economic support fund), as amended by title II 
of this Act, is further amended by adding at the end thereof 
the following new section:
    [``Sec. 534. Administration of Justice.--(a) The President 
may furnish assistance under this chapter to countries and 
organizations, including national and regional institutions, in 
order to strengthen the administration of justice in countries 
in Latin America and the Caribbean.
    [``(b) Assistance under this section may only include--
            [``(1) support for specialized professional 
        training, scholarships, and exchanges for continuing 
        legal education;
            [``(2) programs to enhance prosecutorial and 
        judicial capabilities and protection for participants 
        in judicial cases;
            [``(3) notwithstanding section 660 of this Act, 
        programs to enhance investigative capabilities, 
        conducted under judicial or prosecutorial control;
            [``(4) strengthening professional organizations in 
        order to promote services to members and the role of 
        the bar in judicial selection, enforcement of ethical 
        standards, and legal reform;
            [``(5) increasing the availability of legal 
        materials and publications;
            [``(6) seminars, conferences, and training and 
        educational programs to improve the administration of 
        justice and to strengthen respect for the rule of law 
        and internationally recognized human rights; and
            [``(7) revision and modernization of legal codes 
        and procedures.
    [``(c) Not more than $20,000,000 of the funds made 
available to carry out this chapter for any fiscal year shall 
be available to carry out this section, in addition to amounts 
otherwise available for such purposes.
    [``(d) Funds may not be obligated for assistance under this 
section unless the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Foreign Relations of the 
Senate are notified of the amount and nature of the proposed 
assistance at least 15 days in advance in accordance with the 
procedures applicable to reprogrammings pursuant to section 
634A of this Act.
    [``(e) The authority of this section shall expire on 
September 30, 1987.''.

[SEC. 713. USE OF EMPLOYEE STOCK OWNERSHIP PLANS IN DEVELOPMENT 
                    EFFORTS.

    [(a) Findings.--The Congress declares that--
            [(1) employee stock ownership plans in industrial, 
        farming, banking, and other enterprises in Central 
        America and the Caribbean can be an important component 
        in achieving United States goals in Central America and 
        the Caribbean; and
            [(2) employee stock ownership plans should be used 
        as an instrument in financing growth and transfers of 
        equity in the region, in reorganizing state-owned 
        enterprises into viable employee-owned businesses, in 
        expanding political and economic pluralism, and in 
        strengthening democratic institutions in the region.
    [(b) Plan for Expanded Use of ESOPs.--The President is 
urged to develop a plan for the expanded use of employee stock 
ownership plans in development efforts of the United States in 
Central America and the Caribbean, with an emphasis on policy 
and infrastructural changes needed to encourage voluntary 
employee stock ownership initiatives by multinational 
corporations and other private sector enterprises which have 
investments, are considering making new investments, or are 
interested in management contracts and joint ventures in the 
region.
    [(c) Task Force.--To assist in this effort, there is 
established a Presidential Task Force on Project Economic 
Justice (hereafter in this section referred to as the ``Task 
Force''), which shall consist of individuals appointed by the 
President who are distinguished leaders of the private sector 
of the United States, including significant representation of 
union representatives of workers in successful companies with 
employee stock ownership plans and of nationally recognized 
experts in all phases of design, implementation, and operation 
of employee stock ownership plans. The President shall 
designate one of the members of the Task Force to serve as 
Chairman. The Chairman of the Task Force shall appoint a 
volunteer fund-raising committee, and all the expenses of the 
Task Force shall be paid without the use of public funds.
    [(d) Report.--Not later than December 31, 1985, the Task 
Force shall prepare and transmit to the President and the 
Congress a report on the expanded use of employee stock 
ownership plans in the development efforts of the United States 
in Central America and the Caribbean, including specific 
recommendations on strategies for using employee stock 
ownership plans as a means of accelerating the rate of private 
sector capital formation in Central America and the Caribbean 
that is systematically linked to expanding ownership and 
profit-sharing opportunities for all employees.

[SEC. 714. INTERNATIONAL ADVISORY COMMISSION FOR THE CARIBBEAN REGION.

    [(a) Findings.--The Congress finds that--
            [(1) many of the social, agricultural, educational, 
        and economic problems which confront nations in the 
        Caribbean Region result primarily from social and 
        economic injustice and inadequate economic and 
        agricultural development;
            [(2) such problems are not addressed sufficiently 
        by current United States policies toward that region;
            [(3) the development of the Caribbean Region is of 
        vital importance to the economic and strategic 
        interests of the United States and its allies; and
            [(4) for purposes of defining development plans, 
        providing an international forum for Caribbean Region 
        development issues, and providing expert advice to 
        donor-aid countries, an international commission is 
        needed as the prime institution for promoting economic 
        cooperation and development in the Caribbean Region.
    [(b) Invitations to Participate in Commission.--
            [(1) Invitation to caribbean countries.--The 
        President may invite the countries which comprise the 
        Caribbean Region to participate with the United States 
        in a commission to be known as the International 
        Advisory Commission for the Caribbean Region (hereafter 
        in this section referred to as the ``Commission'').
            [(2) Invitation to certain other countries.--The 
        President may also invite the Netherlands, the United 
        Kingdom, France, Canada, the Commonwealth of Puerto 
        Rico, and the Virgin Islands to participate in the 
        Commission.
    [(c) Functions of Commission.--It is the sense of the 
Congress that the Commission should--
            [(1) examine social, agricultural, educational, and 
        economic issues which affect the Caribbean Region; and
            [(2) consult with leaders of the countries in the 
        Caribbean Region and with representatives from public 
        and private organizations involved in matters related 
        to the Caribbean Region in order to evaluate the 
        problems and needs of such countries.
    [(d) Funding for Organizational Meeting of Commission.--Of 
the funds authorized to be appropriated to carry out section 
106 of the Foreign Assistance Act of 1961 (relating to 
development assistance for energy, private and voluntary 
organizations, and selected development activities), up to a 
total of $100,000 for fiscal years 1986 and 1987 may be made 
available to--
            [(1) pay reasonable administrative expenses 
        associated with the organizational meeting of the 
        Commission; and
            [(2) pay reasonable travel and lodging expenses 
        incurred by commissioners from other participant 
        governments incident to their attendance at the 
        organizational meeting of the Commission.
    [(e) Request to Congress Relating to United States 
Participation in the Commission.--The President should provide 
cost estimates and request authorization from the Congress in 
order to provide for the participation of the United States in 
the Commission (other than United States participation 
associated with the organizational meeting).
    [(f) Appointment of United States Representative and 
Observers.--Upon the creation of the Commission.--
            [(1) the President should consider appointing one 
        individual as the United States representative to the 
        Commission;
            [(2) the Speaker of the House of Representatives 
        should consider appointing two Members of the House, 
        one from each major political party, as observers at 
        the Commission; and
            [(3) the majority leader of the Senate should 
        consider appointing two Members of the Senate, one from 
        each major political party, as observers at the 
        Commission.

[SEC. 715. EXEMPTION OF CERTAIN SAFETY-RELATED EQUIPMENT FROM 
                    PROHIBITION ON MILITARY SALES TO CHILE.

    [Section 726 of the International Security and Development 
Cooperation Act of 1981 is amended by adding at the end thereof 
the following new subsection:
    [``(c) The prohibition contained in subsection (b) does not 
prohibit the sale, or the licensing for export, of cartridge 
actuated devices, propellant actuated devices, and technical 
manuals for aircraft of the F-5E/F or A/T-37 type which were 
sold to the Chilean Air Force by the United States before 
January 1, 1976, so long as the items are provided only for 
purposes of enhancing the safety of the aircraft crew.''.

[SEC. 716. RURAL ELECTRIFICATION.

    [It is the sense of the Congress that funds appropriated 
for the fiscal years 1986 and 1987 under section 103(a)(2) of 
the Foreign Assistance Act of 1961 (relating to development 
assistance for agriculture, rural development, and nutrition) 
should be used for a comprehensive rural electrification 
program in Central America in order to establish conditions of 
stability and a foundation for economic development.

[SEC. 717. FACILITATING INTERNATIONAL COMMERCE THROUGH MEXICO.

    [(a) Finding.--Recognizing that increased levels of 
balanced international trade are an essential component in an 
economic development program for the region and that the United 
States has traditionally been the most important trading 
partner for each of the nations of Latin America, it is the 
sense of the Congress that current procedures and laws of the 
Government of Mexico, and practices of its officials, 
constitute a significant impediment to the transit of vehicles 
carrying the commodities of international trade through Mexican 
territory.
    [(b) Negotiations and Cooperative Steps Concerning 
Transit.--As the Government of Mexico has played a valuable 
role in assisting and encouraging the economic and political 
development of the region, and in offering advice to the United 
States as to constructive policies this nation might pursue 
with respect to peace and prosperity in the area, the Secretary 
of State, acting independently or with representatives of other 
Latin America nations, shall initiate negotiations with the 
Government of Mexico aimed at eliminating or reducing those 
impediments to international trade. The agenda for such 
negotiations should include discussions to encourage the 
Government of Mexico to accede to existing international custom 
conventions on international in-transit shipments. Such actions 
are to be taken in concert with the institution by the United 
States, and the nations of the region where the transiting 
shipments originate, of appropriate and cooperative steps to 
make sealed-truck, no-inspection transit administratively 
acceptable to the Government of Mexico and other transited 
countries. Similar bilateral or multilateral negotiations by 
the Secretary of State with nations respecting the same 
international customs conventions is also encouraged.
    [(c) Report.--The Secretary of State shall report the 
status of these negotiations to Congress by January 1, 1986.

[SEC. 718. CONDEMNING HUMAN RIGHTS VIOLATIONS AND THE SUBVERSION OF 
                    OTHER GOVERNMENTS BY THE GOVERNMENT OF CUBA.

    [(a) Condemnation of Certain Action by the government of 
Cuba.--The Congress condemns--
        [(1) the consistent pattern of gross violations of 
        internationally recognized human rights by the Cuban 
        Government, including--
                [(A) cruel, inhumane, and degrading treatment 
                and punishment of prisoners;
                [(B) the suppression of free speech, press, and 
                assembly; and
                [(C) restrictions on religious activity and the 
                freedom to emigrate; and
        [(2) the provision by the Cuban government of material 
        aid and personnel support for the purposes of 
        subversion.
    [(b) Call Upon the Government of Cuba.--The Congress calls 
upon the Government of Cuba to restore civil liberties and 
cease in the violation of human rights of the Cuban people and 
cease the subversion of other governments through material and 
personnel support.

[SEC. 719. REPORTS ON FOREIGN DEBT IN LATIN AMERICA.

    [(a) Findings.--The Congress finds that--
        [(1) the foreign debt of Latin American countries has 
        soared from $27,000,000,000 in 1970 to over 
        $350,000,000,000 in 1983;
        [(2) the foreign debt of Latin American countries is a 
        serious obstacle to their economic progress, threatens 
        their stability, and endangers the democratic processes 
        in those nations;
        [(3) the economic and political futures of many of the 
        Latin American countries hang in the balance and depend 
        upon a successful resolution of the foreign debt 
        crisis; and
        [(4) the confidence of the American people in the 
        United States system of banking is also involved in a 
        successful resolution of the foreign debt crisis.
    [(b) Report.--Not later than January 1, 1986, the Secretary 
of State shall prepare and transmit to the Congress a report 
on--
        [(1) the magnitude of the foreign debt crisis in the 
        Western Hemisphere;
        [(2) the impact of the foreign debt crisis on the 
        economies of the countries of Latin America;
        [(3) the degree to which the national security 
        interests of the United States are implicated in this 
        crisis;
        [(4) the steps being taken and the policy being pursued 
        by the United States aimed at dealing with this crisis;
        [(5) the degree to which the foreign debt crisis 
        affects the system of banking in the United States; and
        [(6) the steps being taken and the policy being pursued 
        by the United States Government aimed at dealing with 
        this crisis.

[SEC. 720. ECONOMIC ASSISTANCE FOR URUGUAY.

    [Of the amounts authorized to be appropriated to carry out 
chapter 4 of part II of the Foreign Assistance Act of 1961 
(relating to the economic support fund), $15,000,000 for fiscal 
year 1986 and $15,000,000 for fiscal year 1987 shall be 
available only for Uruguay.

[SEC. 721. CANADIAN EXPORTS TO THE UNITED STATES.

    [(a) Cattle and Hogs.--(1) The Congress finds that--
            [(A) livestock prices have been in decline for some 
        time due to excessive supply partially caused by 
        dramatic increases in importation of live cattle and 
        hogs from Canada, which has increased by 1,000 percent 
        in the last decade in the case of hogs alone;
            [(B) American livestock producers are suffering 
        from the same general economic crisis affecting all of 
        agriculture, and many will face liquidation or 
        foreclosure in the near future; and
            [(C) the disparity between the United States and 
        the Canadian dollar amount to 32 to 34 percent and 
        results in even further increases in Canadian hogs and 
        cattle being imported into the United States.
    [Therefore, it is the sense of the Congress that the 
President should direct appropriate officials of the executive 
branch, including the United States Trade Representative, the 
Secretary of Agriculture, and the Secretary of Commerce, to 
aggressively pursue discussion with the Canadian Government 
directed toward immediate reduction in the Canadian export of 
cattle and hogs to the United States.
    [(b) Softwood Timber.--(1) The Congress find that--
            [(A) softwood timber prices have been in decline 
        for some time due to excessive supply partially caused 
        by dramatic increases in importation of processed 
        softwood timber from Canada, which has increased from 
        18 percent of the United States market in the last two 
        years to 35 to 40 percent today;
            [(B) American timber producers are suffering from 
        this economic crisis, and the difficulty in acquiring 
        timber from the National Forest System; and
            [(C) the disparity between the United States and 
        the Canadian dollar amounts to 32 to 34 percent and 
        results in even further increases in processed softwood 
        timber being imported into the United States.
    [(2) Therefore, it is the sense of the Congress that the 
President should direct appropriate officials of the executive 
branch, including the United States Trade Representative, the 
Secretary of Agriculture, and the Secretary of Commerce, to 
aggressively pursue discussions with the Canadian Government 
directed toward immediate reduction in the Canadian export of 
softwood timber to the United States.

[SEC. 722. NICARAGUA.

    [(a) Settlement of the Conflict.--The Congress--
            [(1) strongly supports national reconciliation in 
        Nicaragua and the creation of a framework for 
        negotiating a peaceful settlement to the Nicaraguan 
        conflict; and
            [(2) finds that the United States should, in 
        assisting efforts to reach comprehensive and verifiable 
        final agreements based on the Contadora Document of 
        Objectives, encourage the Government of Nicaragua to 
        pursue a dialogue with the armed opposition forces and 
        their political representatives for the purposes of 
        achieving an equitable political settlement of the 
        conflict, including free and fair elections.
    [(b) United States Concerns About Nicaraguan Foreign and 
Domestic Policies.--The Congress finds and declares the 
following:
            [(1) Despite positive actions by the Congress 
        signaling support for negotiated solutions to conflicts 
        in Central America, there are disturbing trends in 
        Nicaragua's foreign and domestic policies, including--
                    [(A) President Daniel Ortega's April 1985 
                trip to the Soviet Union at a time when the 
                Congress signaled its strong disapproval of 
                increasing Nicaraguan-Soviet ties;
                    [(B) the Sandinista government's close 
                military ties with Cuba, the Soviet Union, and 
                its Warsaw Pact allies; the disappointing and 
                insufficient reduction of the number of Cuban 
                advisors in Nicaragua by only 100 out of an 
                approximately 2,500; and the continuing 
                military buildup that Nicaragua's neighbors 
                consider threatening;
                    [(C) the Sandinista government's 
                curtailment of individual liberties, political 
                expression, freedom of worship, and the 
                independence of the media;
                    [(D) the subordination of military, 
                judicial, and internal security functions to 
                the ruling political party; and
                    [(E) the Sandinista government's efforts to 
                export its influence and ideology.
            [(2) If Nicaragua does not address the concerns 
        described in paragraph (1), the United States has 
        several options to address this challenge to peace and 
        stability in the region, including political, 
        diplomatic, and trade sanctions. In addition, the 
        United States--
                    [(A) should through appropriate regional 
                organizations, such as the Organization of 
                American States, seek to maintain multilateral 
                pressure on Nicaragua to address these 
                concerns; and
                    [(B) should, if called upon to do so, give 
                serious consideration to supporting any 
                sanctions adopted by such an organization.
            [(3) In assessing whether or not progress is being 
        made in addressing these concerns, the Congress will 
        expect prompt and significant initiatives by the 
        Government of Nicaragua such as--
                    [(A) the removal of foreign military 
                advisors from Nicaragua;
                    [(B) the end to Sandinista support for 
                insurgencies in other countries in the region, 
                including the cessation of military supplies to 
                the rebel forces fighting the democratically 
                elected government in El Salvador;
                    [(C) restoration of individual liberties, 
                political expression, freedom of worship, and 
                the independence of the media; and
                    [(D) progress toward internal 
                reconciliation and a pluralistic democratic 
                system, including steps to liberalize 
                institutions in order to allow the internal 
                opposition in Nicaragua to become a viable 
                partner in the Nicaraguan political process.
        [(c) Resolution of the Conflict in Nicaragua.--
            [(1) Basis for policy.--The Congress finds that--
                    [(A) the people of Nicaragua are suffering 
                the horrors of a fierce armed conflict that is 
                causing grave hardships and loss of life, has 
                thrown the country into a serious political, 
                social, and economic upheaval, and is of 
                serious concern to the nations of the region 
                and to the United States;
                    [(B) this conflict is fundamentally a 
                continuation of efforts of the Nicaraguan 
                people to attain a representative government at 
                peace with its neighbors, efforts which began 
                under the Somoza regime; and
                    [(C) the United States recognized these 
                noble aspirations of the Nicaraguan people in 
                the June 23, 1979, resolution of the 
                Seventeenth Meeting of Consultation of 
                Ministers of Foreign Affairs of the 
                Organization of American States, which reads as 
                follows:
[``WHEREAS:
            [``The people of Nicaragua are suffering the 
        horrors of a fierce armed conflict that is causing 
        grave hardships and loss of life, and has thrown the 
        country into a serious political, social, and economic 
        upheaval;
            [``The inhumane conduct of the dictatorial regime 
        governing the country, as evidenced by the report of 
        the Inter-American Commission on Human Rights, is the 
        fundamental cause of the dramatic situation faced by 
        the Nicaraguan people; and
            [``The spirit of solidarity that guides Hemisphere 
        relations places an unavoidable obligation on the 
        American countries to exert every effort within their 
        power, to put an end to the bloodshed and to avoid the 
        prolongation of this conflict which is disrupting the 
        peace of the Hemisphere;
            [``THE SEVENTEENTH MEETING OF CONSULTATION OF 
        MINISTERS OF FOREIGN AFFAIRS,
[``DECLARES:
            [``That the solution of the serious problem is 
        exclusively within the jurisdiction of the people of 
        Nicaragua.
            [``That in the view of the Seventeenth Meeting of 
        Consultation of Ministers of Foreign Affairs this 
        solution should be arrived at on the basis of the 
        following:
                    [``1. Immediate and definitive replacement 
                of the Somoza regime.
                    [``2. Installation in Nicaraguan territory 
                of a democratic government, the composition of 
                which should include the principal 
                representative groups which oppose the Somoza 
                regime and which reflects the free will of the 
                people of Nicaragua.
                    [``3. Guarantee of the respect for human 
                rights of all Nicaraguans without exception.
                    [``4. The holding of free elections as soon 
                as possible, that will lead to the 
                establishment of a truly democratic government 
                that guarantees peace, freedom, and justice.
[``RESOLVES:
            [``1. To urge the member states to take steps that 
        are within their reach to facilitate an enduring and 
        peaceful solution of the Nicaraguan problem on the 
        bases set forth above, scrupulously respecting the 
        principle of nonintervention and abstaining from any 
        action that might be in conflict with the above bases 
        or be incompatible with a peaceful and enduring 
        solution to the problem.
            [``2. To commit their efforts to promote 
        humanitarian assistance to the people of Nicaragua and 
        to contribute to the social and economic recovery of 
        the country.
            [``3. To keep the Seventeenth Meeting of 
        Consultation of Ministers of Foreign Affairs open while 
        the present situation continues.''.
            [(2) The government of nicaragua.--The Congress 
        further finds that--
                    [(A) the Government of National 
                Reconstruction of Nicaragua formally accepted 
                the June 23, 1979, resolution as a basis for 
                resolving the Nicaraguan conflict in its ``Plan 
                to Achieve Peace'' which was submitted to the 
                Organization of American States on July 12, 
                1979;
                    [(B) the June 23, 1979, resolution and its 
                acceptance by the Government of National 
                Reconstruction of Nicaragua was the formal 
                basis for the removal of the Somoza regime and 
                the installation of the Government of National 
                Reconstruction;
                    [(C) the Government of National 
                Reconstruction, now known as the Government of 
                Nicaragua and controlled by the Frente 
                Sandinista (the FSLN), has flagrantly violated 
                the provisions of the June 23, 1979, 
                resolution, the rights of the Nicaraguan 
                people, and the security of the nations in the 
                region, in that it--
                            [(i) no longer includes the 
                        democratic members of the Government of 
                        National Reconstruction in the 
                        political process;
                            [(ii) is not a government freely 
                        elected under conditions of freedom of 
                        the press, assembly, and organization, 
                        and is not recognized as freely elected 
                        by its neighbors, Costa Rica, Honduras, 
                        and El Salvador;
                            [(iii) has taken significant steps 
                        towards establishing a totalitarian 
                        Communist dictatorship, including the 
                        formation of FSLN neighborhood watch 
                        committees and the enactment of laws 
                        that violate human rights and grant 
                        undue executive power;
                            [(iv) has committed atrocities 
                        against its citizens as documented in 
                        reports by the Inter-American 
                        Commission on Human Rights of the 
                        Organization of American States;
                            [(v) has aligned itself with the 
                        Soviet Union and Soviet allies, 
                        including the German Democratic 
                        Republic, Bulgaria, Libya, and the 
                        Palestine Liberation Organization;
                            [(vi) has committed and refuses to 
                        cease aggression in the form of armed 
                        subversion against its neighbors in 
                        violation of the Charter of the United 
                        Nations, the Charter of the 
                        Organization of American States, the 
                        Inter-American Treaty of Reciprocal 
                        Assistance, and the 1965 United Nation 
                        General Assembly Declaration on 
                        Intervention; and
                            [(vii) has built up an army beyond 
                        the needs of immediate self-defense, at 
                        the expense of the needs of the 
                        Nicaraguan people and about which the 
                        nations of the region have expressed 
                        deepest concern.
            [(3) The nicaraguan democratic opposition.--The 
        Congress further finds that--
                    [(A) as a result of these violations, the 
                Government of Nicaragua has lost the support of 
                virtually all independent sectors of Nicaraguan 
                society who initially supported the removal of 
                the Somoza regime (including democratic 
                political parties of the left, center, and 
                right; the leadership of the Church; free 
                unions; and the business, farmer, and 
                professional sectors) and who still seek 
                democracy, reject the rule of the Frente 
                Sandinista, and seek the free elections 
                promised in 1979;
                    [(B) the Nicaraguan political opposition 
                has joined with the armed opposition groups in 
                issuing the San Jose Manifesto of March 1, 
                1985, calling for a national dialogue under 
                mediation by the Nicaraguan Bishops Conference 
                to peacefully attain the fulfillment of the 
                Government of Nicaragua's commitments to the 
                Organization of American States, including 
                ``the democratization of Nicaragua, conscious 
                that democracy is the only means to carry out 
                an authentic revolution and secure our national 
                identify and sovereignty'';
                    [(C) on June 12, 1985, in San Salvador, El 
                Salvador, the political and armed opposition 
                groups representing the entire democratic 
                political spectrum of Nicaragua formed the 
                Unified Nicaraguan Opposition and affirmed 
                their ``historical commitment to achieve for 
                Nicaragua the reconciliation of her children, 
                to establish the foundation for democracy and 
                the moral and material reconstruction of the 
                nation''; and
                    [(D) the Unified Nicaraguan Opposition 
                further declared its intention to ``give 
                priority at all times to a political solution 
                which will ease the suffering of the people''.
            [(4) Concerns in the region and united states 
        responsibilities.--The Congress further finds that--
                    [(A) Nicaragua's neighbors, Costa Rica, El 
                Salvador, and Honduras, have expressed, 
                individually and through the Contadora process, 
                their belief that their peace and freedom is 
                not safe so long as the Government of Nicaragua 
                excludes from power most of Nicaragua's 
                political leadership and is controlled by a 
                small sectarian party, without regard to the 
                will of the majority of Nicaraguans; and
                    [(B) the United States, given its role in 
                the installation of the current Government of 
                Nicaragua, has a special responsibility 
                regarding the implementation of the commitments 
                made by that Government in 1979, especially to 
                those who fought against Somoza to bring 
                democracy to Nicaragua with United States 
                support.
            [(5) Resolution of the conflict.--The Congress--
                    [(A) condemns the Government of Nicaragua 
                for violating its solemn commitments to the 
                Nicaraguan people, the United States, and the 
                Organization of American States;
                    [(B) affirms that the Government of 
                Nicaragua will be regarded as having achieved 
                political legitimacy when it fulfills its 1979 
                commitment to the Organization of Americans 
                States to implement genuinely democratic 
                elections, under the supervision of the 
                Organization of American States, in which all 
                elements of the Nicaraguan resistance can 
                peacefully participate under conditions 
                recognized as necessary for free elections by 
                international bodies;
                    [(C) urges the Government of Nicaragua to 
                enter a national dialogue, as proposed by the 
                Nicaraguan democratic resistance in San Jose, 
                Costa Rica, on March 1, 1985, under mediation 
                by the Nicaraguan Bishops Conference in order 
                to peacefully resolve the current crisis 
                through internationally recognized elections in 
                which all elements of Nicaraguan society can 
                freely participate;
                    [(D) supports the Nicaraguan democratic 
                resistance in its efforts to peacefully resolve 
                the Nicaraguan conflict and to achieve the 
                fulfillment of the Government of Nicaragua's 
                solemn commitments to the Nicaraguan people, 
                the United States, and the Organization of 
                American States;
                    [(E) supports efforts by the Contadora 
                nations, the Organization of American States, 
                and other appropriate regional organizations to 
                maintain multilateral pressure on Nicaragua to 
                fulfill its commitments; and
                    [(F) requests that the Secretary of State 
                transmit the text of this subsection to the 
                Foreign Ministers of the member states of the 
                Organization of American States.
        [(d) Prohibition Relating to Military or Paramilitary 
Operations in Nicaragua.--Notwithstanding any other provision 
of law, no funds authorized to be appropriated or otherwise 
made available by this Act (except the funds authorized to be 
appropriated in this section), by the Foreign Assistance Act of 
1961, or by the Arms Export Control Act shall be used to 
provide assistance of any kind, either directly or indirectly, 
to any person or group engaging in an insurgency or other act 
of rebellion against the Government of Nicaragua. The United 
States shall not enter into any arrangement conditioning, 
expressly or impliedly, the provision of assistance under this 
Act or the purchase of defense articles and services under the 
Arms Export Control Act upon the provision of assistance by a 
recipient to persons or groups engaging in an insurgency or 
other act of rebellion against the Government of Nicaragua.
    [(e) Limitation on Use of Funds Against Nicaragua.--None of 
the funds authorized to be appropriated in this or any other 
Act can be used to fund directly, or indirectly, activities 
against the Government of Nicaragua which have not been 
authorized by, or pursuant to, law and which would place the 
United States in violation of our obligations under the Charter 
of the Organization of American States, to which the United 
States is a signatory, or under international law as defined by 
treaty commitments agreed to, and ratified by, the Government 
of the United States.
    [(f) Food Aid to the Nicaraguan People.--In cooperation 
with Cardinal Miguel Obando y Bravo and private and voluntary 
organizations, the President should explore and promote means 
for providing food aid to the Nicaraguan people through private 
and voluntary organizations and the Catholic Church.
    [(g) Humanitarian Assistance for Nicaraguan Democratic 
Resistance.--(1) Effective upon the date of enactment of this 
Act, there are authorized to be appropriated $27,000,000 for 
humanitarian assistance to the Nicaraguan democratic 
resistance. Such assistance shall be provided to such 
department or agency of the United States as the President 
shall designate, except the Central Intelligence Agency or the 
Department of Defense.
    [(2) The assistance authorized by this subsection is 
authorized to remain available for obligation until March 31, 
1986.
    [(3) One-third of the assistance authorized by this 
subsection shall be available for obligation at any time after 
the appropriation of funds pursuant to such authorization, an 
additional one-third shall be available for obligation upon 
submission of the first report required by subsection (j), and 
the remaining one-third shall be available for obligation upon 
submission of the second such report.
    [(4) The President shall establish appropriate procedures 
to ensure that any humanitarian assistance provided by the 
United States Government to the Nicaraguan democratic 
resistance is used only for the intended purpose and is not 
diverted (through barter, exchange, or any other means) for 
acquisition of weapons, weapons systems, ammunition, or other 
equipment, vehicles, or material which can be used to inflict 
serious bodily harm or death.
    [(5) As used in this subsection, the term ``humanitarian 
assistance'' means the provision of food, clothing, medicine, 
and other humanitarian assistance, and it does not include the 
provision of weapons, weapons systems, ammunition, or other 
equipment, vehicles, or material which can be used to inflict 
serious bodily harm or death.
    [(h) Assistance for Implementation of a Contadora 
Agreement.--Effective upon the date of enactment of this Act, 
there are authorized to be appropriated $2,000,000, which are 
authorized to remain available until expended, for payment by 
the Secretary of State for the expenses arising from 
implementation by the Contadora nations (Mexico, Panama, 
Colombia, and Venezuela) of an agreement among the countries of 
Central America based on the Contadora Document of Objectives 
of September 9, 1983, including peacekeeping, verification, and 
monitoring systems.
    [(i) Policies With Respect to Nicaragua.--The President is 
hereby urged and requested--
            [(1) to pursue vigorously the use of diplomatic and 
        economic measures to resolve the conflict in Nicaragua, 
        including simultaneous negotiations--
                    [(A) to implement the Contadora Document of 
                Objectives of September 8, 1983; and
                    [(B) to develop, in close consultation and 
                cooperation with other nations, trade and 
                economic measures to complement such policies 
                of the United States and to encourage the 
                Government of Nicaragua to take the necessary 
                steps to resolve the conflict;
            [(2) to suspend the economic sanctions imposed by 
        the President on May 1, 1985, and the United States 
        military maneuvers in Honduras and off the coast of 
        Nicaragua, if the Government of Nicaragua agrees--
                    [(A) to a cease fire,
                    [(B) to open a dialogue with all elements 
                of the opposition, including the Nicaraguan 
                democratic resistance, and
                    [(C) to suspend the state of emergency in 
                Nicaragua;
            [(3) to call upon the Nicaraguan democratic 
        resistance to remove from their ranks any individuals 
        who have engaged in human rights abuses; and
            [(4) to resume bilateral discussions with the 
        Government of Nicaragua with a view to encouraging--
                    [(A) a church-mediated dialogue between the 
                Government of Nicaragua and all elements of the 
                opposition, including the Nicaraguan democratic 
                resistance, in support of internal 
                reconciliation as called for by the Contadora 
                Document of Objectives; and
                    [(B) a comprehensive, verifiable agreement 
                among the nations of Central America, based on 
                the Contadora Document of Objectives.
    [(j) Reports.--The President shall submit a report to the 
Congress 90 days after the date of enactment of this Act, and 
every 90 days thereafter, on any actions taken to carry out 
subsections (g) and (h). Each such report shall include--
            [(1) a detailed statement of any progress made in 
        reaching a negotiated settlement referred to in 
        subsection (i)(1), including the willingness of the 
        Nicaraguan democratic resistance and the Government of 
        Nicaragua to negotiate a settlement;
            [(2) a detailed accounting of the disbursements 
        made to provide humanitarian assistance with the funds 
        provided pursuant to subsection (g); and
            [(3) a discussion of the alleged human rights 
        violations by the Nicaraguan democratic resistance and 
        the Government of Nicaragua, including a statement of 
        the steps taken by the Nicaraguan democratic resistance 
        to comply with the request referred to in subsection 
        (i)(3).
    [(k) Submission of Request for Additional Assistance for 
the Central America Peace Process.--If the President determines 
at any time after the enactment of this Act that--
            [(1) negotiations based on the Contadora Document 
        of Objectives of September 9, 1983, have produced an 
        agreement, or show promise of producing an agreement, 
        or
            [(2) other trade and economic measures will assist 
        in a resolution of the conflict, or to stabilization in 
        the region,
the President may submit to the Congress a request for budget 
and other authority to provide additional assistance for the 
furtherance of the Central America peace process.
    [(l) Statement To Be Included.--The President's request 
pursuant to subsection (k) shall include a detailed statement 
as to progress made to resolve the conflict in the region.
    [(m) Consultation With the Congress.--In formulating a 
request pursuant to subsection (k), the President shall consult 
with the Congress.
    [(n) House Procedures.--(1) The provisions of this 
subsection apply, during the 99th Congress, to the 
consideration in the House of Representatives of a joint 
resolution with respect to the request submitted by the 
President pursuant to subsection (k).
    [(2) For purposes of this subsection, the term ``joint 
resolution'' means only a joint resolution introduced within 3 
legislative days after the Congress receives the request 
submitted by the President pursuant to subsection (k)--
            [(A) the matter after the resolving clause of which 
        is as follows: ``That the Congress hereby approves the 
        additional authority and assistance for the Central 
        America peace process that the President requested 
        pursuant to the International Security and Development 
        Cooperation Act of 1985, notwithstanding section 10 of 
        Public Law 91-672.'';
            [(B) which does not have a preamble; and
            [(C) the title of which is as follows: ``Joint 
        Resolution relating to Central America pursuant to the 
        International Security and Development Cooperation Act 
        of 1985.''.
    [(3) A joint resolution shall, upon introduction, be 
referred to the appropriate committee or committees of the 
House of Representatives.
    [(4) If all the committees of the House to which a joint 
resolution has been referred have not reported the same joint 
resolution by the end of 15 legislative days after the first 
joint resolution was introduced, any committee which has not 
reported the first joint resolution introduced shall be 
discharged from further consideration of that joint resolution 
and that joint resolution shall be placed on the appropriate 
calendar of the House.
    [(5)(A) At any time after the first joint resolution placed 
on the appropriate calendar has been on that calendar for a 
period of 5 legislative days, it is in order for any Member of 
the House (after consultation with the Speaker as to the most 
appropriate time for the consideration of that joint 
resolution) to move that the House resolve itself into the 
Committee of the Whole House on the State of the Union for the 
consideration of that joint resolution. The motion is highly 
privileged and is in order even though a previous motion to the 
same effect has been disagreed to. All points of order against 
the joint resolution under clauses 2 and 6 of Rule XXI of the 
Rules of the House are waived. If the motion is agreed to, the 
resolution shall remain the unfinished business of the House 
until disposed of. A motion to reconsider the vote by which the 
motion is disagreed to shall not be in order.
    [(B) Debate on the joint resolution shall not exceed ten 
hours, which shall be divided equally between a Member favoring 
and a Member opposing the joint resolution. A motion to limit 
debate is in order at any time in the House or in the Committee 
of the Whole and is not debatable.
    [(C) An amendment to the joint resolution is not in order.
    [(D) At the conclusion of the debate on the joint 
resolution, the Committee of the Whole shall rise and report 
the joint resolution back to the House, and the previous 
question shall be considered as ordered on the joint resolution 
to final passage without intervening motion.
    [(6) As used in this subsection, the term ``legislative 
day'' means a day on which the House is in session.
    [(o) Senate Procedures.--A joint resolution which is 
introduced in the Senate within 3 calendar days after the day 
on which the Congress receives a Presidential request described 
in subsection (k) and which, if enacted, would grant the 
President the authority to take any or all of the actions 
described in subsection (k) shall be considered in accordance 
with procedures contained in paragraphs (3) through (7) of 
section 8066(c) of the Department of Defense Appropriations 
Act, 1985 (as contained in Public Law 98-473), except that--
            [(1) references in such paragraphs to the 
        Committees on Appropriations of the Senate shall be 
        deemed to be references to the appropriate committee or 
        committees of the Senate; and
            [(2) amendments to the joint resolution are in 
        order.
    [(p) Submission of Request for Additional Assistance for 
Nicaraguan Democratic Resistance.--If the President determines 
at any time after the enactment of this Act that--
            [(1) negotiations based on the Contadora Document 
        of Objectives of September 9, 1983, have failed to 
        produce an agreement, or
            [(2) other trade and economic measures have failed 
        to resolve the conflict,
the President may submit to the Congress a request for budget 
and other authority to provide additional assistance for the 
Nicaraguan democratic resistance.
    [(q) Statement To Be Included.--The President's request 
pursuant to subsection (p) shall include a detailed statement 
as to why the negotiations or other measures have failed to 
resolve the conflict in the region.
    [(r) Consultation With the Congress.--In formulating a 
request pursuant to subsection (p), the President shall consult 
with the Congress.
    [(s) House Procedures.--(1) The provisions of this 
subsection apply, during the 99th Congress, to the 
consideration in the House of Representatives of a joint 
resolution with respect to the request submitted by the 
President pursuant to subsection (p).
    [(2) For purposes of this subsection, the term ``joint 
resolution'' means only a joint resolution introduced within 3 
legislative days after the Congress receives the request 
submitted by the President pursuant to subsection (p)--
            [(A) the matter after the resolving clause of which 
        is as follows: ``That the Congress hereby approves the 
        additional authority and assistance for the Nicaraguan 
        democratic resistance that the President requested 
        pursuant to the International Security and Development 
        Cooperation Act of 1985, notwithstanding section 10 of 
        Public Law 91--672.'';
            [(B) which does not have a preamble; and
            [(C) the title of which is as follows: ``Joint 
        Resolution relating to Central America pursuant to the 
        International Security and Development Cooperation Act 
        of 1985.''.
    [(3) A joint resolution shall, upon introduction, be 
referred to the appropriate committee or committees of the 
House of Representatives.
    [(4) If all the committees of the House to which a joint 
resolution has been referred have not reported the same joint 
resolution by the end of 15 legislative days after the first 
joint resolution was introduced, any committee which has not 
reported the first joint resolution introduced shall be 
discharged from further consideration of that joint resolution 
and that joint resolution shall be placed on the appropriate 
calendar of the House.
    [(5(A) At any time after the first joint resolution placed 
on the appropriate calendar has been on that calendar for a 
period of 5 legislative days, it is in order for any Member of 
the House (after consultation with the Speaker as to the most 
appropriate time for the consideration of that joint 
resolution) to move that the House resolve itself into the 
Committee of the Whole House on the State of the Union for the 
consideration of that joint resolution. The motion is highly 
privileged and is in order even though a previous motion to the 
same effect has been disagreed to. All points of order against 
the joint resolution under clause 2 and 6 of Rule XXI of the 
Rules of the House are waived. If the motion is agreed to, the 
resolution shall remain the unfinished business of the House 
until disposed of. A motion to reconsider the vote by which the 
motion is disagreed to shall not be in order.
    [(B) Debate on the joint resolution shall not exceed ten 
hours, which shall be divided equally between a Member favoring 
and a Member opposing the joint resolution. A motion to limit 
debate is in order at any time in the House or in the Committee 
of the Whole and is not debatable.
    [(C) An amendment to the joint resolution is not in order.
    [(D) At the conclusion of the debate on the joint 
resolution, the Committee of the Whole shall rise and report 
the joint resolution back to the House, and the previous 
question shall be considered as ordered on the joint resolution 
to final passage without intervening motion.
    [(6) As used in this subsection, the term ``legislative 
day'' means a day on which the House is in session.
    [(t) Senate Procedures.--A joint resolution which is 
introduced in the Senate within 3 calendar days after the day 
on which the Congress receives a Presidential request described 
in subsection (p) and which, if enacted, would grant the 
President the authority to take any or all of the actions 
described in subsection (p) shall be considered in accordance 
with procedures contained in paragraphs (3) through (7) of 
section 8066(c) of the Department of Defense Appropriations 
Act, 1985 (as contained in Public Law 98-473), except that--
            [(1) references in such paragraphs to the 
        Committees on Appropriations of the Senate shall be 
        deemed to be references to the appropriate committee or 
        committees of the Senate; and
            [(2) amendments to the joint resolution are in 
        order.
    [(u) Congressional Rulemaking Powers.--Subsections (n), 
(o), (s), and (t) are enacted--
            [(1) as exercises of the rulemaking powers of the 
        House of Representatives and Senate, and as such they 
        are deemed a part of the Rules of the House and the 
        Rules of the Senate, respectively, but applicable only 
        with respect to the procedure to be followed in the 
        House and the Senate in the case of joint resolutions 
        under this section, and they supersede other rules only 
        to the extent that they are inconsistent with such 
        rules; and
            [(2) with full recognition of the constitutional 
        right of the House and the Senate to change their rules 
        at any time, in the same manner, and to the same extent 
        as in the case of any other rule of the House or 
        Senate, and of the right of the Committee on Rules of 
        the House of Representatives to report a resolution for 
        the consideration of any measure.

                          [TITLE VIII--AFRICA

[SEC. 801. BALANCE-OF-PAYMENTS SUPPORT FOR COUNTRIES IN AFRICA.

    [(a) ESF Commodity Import and Sector Programs.--Agreements 
with countries in Africa which provide for the use of funds 
made available to carry out chapter 4 of part II of the Foreign 
Assistance Act of 1961 for the fiscal years 1986 and 1987 to 
finance imports by those countries (under commodity import 
programs or sector programs) shall require that those imports 
be used to meet long-term development needs in those countries 
in accordance with the following criteria:
            [(1) Spare parts and other imports shall be 
        allocated on the basis of evaluations, by the agency 
        primarily responsible for administering part I of that 
        Act, of the ability of likely recipients to use such 
        spare parts and imports in a maximally productive, 
        employment generating, and cost effective way.
            [(2) Imports shall be coordinated with investments 
        in accordance with the recipient country's plans for 
        promoting economic development. The agency primarily 
        responsible for administering part I of that Act shall 
        assess such plans to determine whether they will 
        effectively promote economic development.
            [(3) Emphasis shall be placed on imports for 
        agricultural activities which will expand agricultural 
        production, particularly activities which expand 
        production for export or production to reduce reliance 
        on imported agricultural products.
            [(4) Emphasis shall also be placed on a 
        distribution of imports having a broad development 
        impact in terms of economic sectors and geographic 
        regions.
            [(5) In order to maximize the likelihood that the 
        imports financed by the United States under such 
        chapter are in addition to imports which would 
        otherwise occur, consideration shall be given to 
        historical patterns of foreign exchange uses.
            [(6)(A) Seventy-five percent of the foreign 
        currencies generated by the sale of such imports by the 
        government of the country shall be deposited in a 
        special account established by that government and, 
        except as provided in subparagraph (B), shall be 
        available only for use in accordance with the agreement 
        for economic development activities which are 
        consistent with the policy directions of section 102 of 
        the Foreign Assistance Act of 1961 and which are the 
        types of activities for which assistance may be 
        provided under sections 103 through 106 of that Act.
            [((B) The agreement shall require that the 
        government of the country make available to the United 
        States Government such portion of the amount deposited 
        in the special account as may be determined by the 
        President to be necessary for requirements of the 
        United States Government.
    [(b) Annual Evaluations.--The agency primarily responsible 
for administering part I of the Foreign Assistance Act of 1961 
shall conduct annual evaluations of the extent to which the 
criteria set forth in this subsection have been met.

[SEC. 802. ECONOMIC SUPPORT ASSISTANCE FOR SOUTHERN AFRICA.

    [(a) Funds for Southern Africa Regional Programs.--Of the 
amounts authorized to be appropriated to carry out chapter 4 of 
part II of the Foreign Assistance Act of 1961, not less than 
$30,000,000 for fiscal year 1986 and not less than $30,000,000 
for fiscal year 1987 shall be available only for regional 
programs in southern Africa. Not less than 50 percent of each 
of these amounts shall be allocated to assist sector projects 
supported by the Southern Africa Development Coordination 
Conference (SADCC) to enhance the economic development of the 
nine member states forming this important regional institution, 
especially in the following sectors: transportation, 
agricultural research and training, manpower development, and 
institutional support for the SADCC secretariat.
    [(b) Studies Relating to Southern Africa Regional 
Programs.--(1) the administrator of the agency primarily 
responsible for administering part I of the Foreign Assistance 
Act of 1961 shall conduct a study which evaluates--
            [(A) the assistance which the agency provides to 
        the Southern African Development Coordination 
        Conference and other African regional institutions and 
        economic development organizations, and
            [(B) ways to improve such assistance.
    [(2) The administrator shall also conduct a study which 
assesses what type of bureaucratic mechanism within that agency 
might be established to coordinate assistance to all African 
regional institutions.
    [(3) The administrator shall submit the results of the 
studies conducted pursuant to this subsection to the Congress 
within 3 months after the date of enactment of this Act.

[SEC. 803. POLICY TOWARD SOUTH AFRICAN ``HOMELANDS''.

    [(a) Findings.--The Congress finds that--
            [(1) the sanctity of the family, individual 
        liberty, maximum freedom of choice, ownership of 
        private property, and equal treatment of all citizens, 
        regardless of race, are principles which are fully 
        supported by the American people;
            [(2) The forced relocation of blacks by the 
        Government of the Republic of South Africa to 
        designated ``homelands'' divides families, as families 
        are required to remain in the ``homelands'' while 
        fathers seek work in the so-called ``white areas'';
            [(3) the forced removal of persons living in so-
        called ``black spots'' in ``white'' rural areas in 
        South Africa denies them the fundamental right to live 
        and to farm on land they have legally occupied for 
        years, and subjects them to arbitrary arrest and 
        detention when they seek these rights;
            [(4) compared to ``white'' South Africa, the 
        designated ``homelands'', which are meant to 
        accommodate the largest South African population group 
        on a fraction of South African territory and were 
        established without the consent of the vast majority of 
        the governed, are characterized by high rates of infant 
        mortality, unemployment, and malnutrition and by a 
        severe shortage of medical services;
            [(5) the policy of the Government of the Republic 
        of South Africa denies blacks their rightful claim to 
        full South African citizenship; and
            [(6) the recent violence in South Africa must be 
        seen as an inevitable result of the denial of the full 
        rights of citizenship.
    [(b) Statement of Policy.--It is the sense of the Congress 
that--
            [(1) the policy of separate development and the 
        forced relocation of the people of the Republic of 
        South Africa are inconsistent with fundamental American 
        values and internationally recognized principles of 
        human rights;
            [(2) the Government of the United States should 
        continue to regard as citizens of South Africa all 
        persons born within the internationally recognized 
        boundaries of the Republic of South Africa, and not 
        differentiate among these citizens on the basis of the 
        South African Government's claim to have granted 
        independence to various ``homelands'';
            [(3) at such times that any ``homeland'' official 
        applies for a visa for travel to the United States, 
        such visa should not be granted unless that official 
        holds a passport which is recognized as valid by the 
        Government of the United States; and
            [(4) the Government of the United States should 
        urge that the forced relocation of South African 
        citizens be discontinued and that policies be adopted 
        for all South Africa's citizens which protect the 
        sanctity of the family, individual liberty, maximum 
        freedom of choice, ownership of private property, and 
        equal treatment of all citizens, regardless of race.

[SEC. 804. ASSISTANCE FOR ZAIRE.

    [(a) Economic Support Assistance.--Funds allocated for 
assistance for Zaire under chapter 4 of part II of the Foreign 
Assistance Act of 1961 for each of the fiscal years 1986 and 
1987 shall be used only for assistance which is provided in 
accordance with the provisions applicable to assistance under 
chapter 1 of part I of the Foreign Assistance Act of 1961. Such 
assistance shall be provided, to the maximum extent 
practicable, through private and voluntary organizations.
    [(b) Military Assistance.--For each of the fiscal years 
1986 and 1987--
            [(1) the value of assistance provided under chapter 
        2 of part II of the Foreign Assistance Act of 1961 for 
        Zaire may not exceed $7,000,000; and
            [(2) financing may not be provided under the Arms 
        Export Control Act for Zaire.

[SEC. 805. ASSISTANCE FOR TUNISIA.

    [(a) Policy Concerning Security Assistance.--The United 
States provides security assistance to Tunisia in recognition 
of the traditional friendship between the United States and 
Tunisia and our common interests in the region. The provision 
of such assistance is also based on the expectation that 
political stability and development in Tunisia will be best 
advanced through continued growth of democratic institutions.
    [(b) Earmarking of MAP and ESF.--For each of the fiscal 
years 1986 and 1987--
            [(1) not less than $15,000,000 of the amounts 
        authorized to be appropriated to carry out chapter 2 of 
        part II of the Foreign Assistance Act of 1961, and
            [(2) not less than $20,000,000 of the amounts 
        authorized to be appropriated to carry out chapter 4 of 
        part II of that Act,
shall be available only for Tunisia.

[SEC. 806. POLITICAL SETTLEMENT IN SUDAN.

    [(a) Findings.--The Congress finds that--
            [(1) friendship and mutual interests bind the 
        United States and Sudan; and
            [(2) the peace, security, and economic development 
        of Sudan depend in large part on addressing the 
        problems associated with the traditional north-south 
        division in that country through political rather than 
        military means.
    [(b) United States Policy.--It is, therefore, the policy of 
the United States that the provision of security assistance to 
Sudan shall be based on the expectation that the Government of 
Sudan will make progress toward reaching a political settlement 
with all parties to the conflict in the south of Sudan.

[SEC. 807. ELECTIONS IN LIBERIA.

    [In recognition of the special relationship that the United 
States has with Liberia and of the wide variety of interests 
that the United States has in Liberia, security assistance for 
Liberia for fiscal years 1986 and 1987 is based on the 
expectation of a successful completion of free and fair 
elections, on a multiparty basis, in October 1985 as proposed 
by the Government of Liberia and on a return to full civilian, 
constitutional rule as a consequence of those elections.

[SEC. 808. WESTERN SAHARA.

    [(a) United States Policy.--The policy of the United States 
shall be to support a negotiated political solution to the 
conflict in the Western Sahara taking into account the 
principle of self-determination as outlined in the 1981 Nairobi 
resolution and to encourage all parties to the conflict to 
reach a peaceful internationally recognized settlement. As part 
of this policy, the United States should carefully consider 
each type of military assistance it furnishes to any of the 
parties to the conflict and should seek to insure that the 
furnishing of such military assistance is consistent with 
United States policy which seeks a negotiated settlement.
    [(b) Further Statement of Policy.--It is the further policy 
of the United States to support Morocco's legitimate defense 
needs and to discourage aggression by any country in North 
Africa against another.

[SEC. 809. SAHEL DEVELOPMENT PROGRAM.

    [(a) Authorizations of Appropriations.--The third sentence 
of section 121(c) of the Foreign Assistance Act of 1961 is 
amended to read as follows: ``In addition to the amounts 
authorized to be appropriated in the preceding sentences and to 
funds otherwise available for such purposes, there are 
authorized to be appropriated to the President for purposes of 
this section $87,750,000 for fiscal year 1986 and $87,750,000 
for fiscal year 1987.''.
    [(b) Improving Administrative Capabilities of Host 
Governments.--Section 121 of such Act is amended by adding at 
the end thereof the following new subsection:
    [``(e) Grants shall be made under this section to Sahel 
Development Program host governments in order to help them 
enhance their administrative capabilities to meet the 
administrative requirements resulting from donor country 
projects and activities.''.

[SEC. 810. AFRICAN DEVELOPMENT FOUNDATION.

    [(a) Authorization of Appropriations.--Section 510 of the 
African Development Foundation Act is amended to read as 
follows:

                  [``authorizations of appropriations

    [``Sec. 510. There are authorized to be appropriated to 
carry out this title, in addition to amounts otherwise 
available for that purpose, $3,872,000 for fiscal year 1986 and 
$3,872,000 for fiscal year 1987. Funds appropriated under this 
section are authorized to remain available until expended.
    [(b) Extension of Authorities.--Section 511 of such Act is 
amended by striking out ``1985'' and inserting in lieu thereof 
``1990''.

[SEC. 811. REPEAL OF CLARK AMENDMENT.

    [Section 118 of the International Security and Development 
Cooperation Act of 1980 (prohibiting assistance for military or 
paramilitary operations in Angola) is repealed.

[SEC. 812. FAILURE OF THE ETHIOPIAN GOVERNMENT TO RESPONSIBLY 
                    AMELIORATE FAMINE CONDITIONS.

    [(a) Findings.--The Congress finds that--
            [(1) many thousands of Ethiopian people have 
        suffered and died, and an additional ten million people 
        are in danger of death, through starvation caused by 
        prolonged drought;
            [(2) the Government of the United States has a 
        continuing commitment to the emergency fund under title 
        II of the Agricultural Trade Development and Assistance 
        Act of 1954 (the Food For Peace Act);
            [(3) United States emergency food assistance for 
        Africa in fiscal year 1985 is more than twice the 
        amount provided in fiscal year 1984, and is the largest 
        amount contributed by any single donor;
            [(4) the Ethiopian Government, as a client state of 
        the Soviet Union, has considered the equipage and 
        modernization of its five hundred thousand-person 
        military organization more vital than alleviating the 
        suffering of its people caused by drought;
            [(5) the Ethiopian Government has considered the 
        funding of its military organization more vital than 
        promoting a viable national agrarian policy;
            [(6) there is evidence that the Government of 
        Ethiopia has used the drought-caused famine to induce 
        cooperation from certain dedicated Ethiopians who seek 
        to bring about fundamental changes in their country;
            [(7) the United States Government is concerned 
        about the seizure by the Ethiopian Government of an 
        Australian aid ship in an attempt to cut off food to 
        its citizens in the northern regions, an area most 
        severely stricken by famine; and
            [(8) the Ethiopian Government deems the appearance 
        and status of its socialist system more worthy of 
        attention than it citizens and agricultural policies in 
        need.
    [(b) Statement of Policy.--It is the sense of the Congress 
that--
            [(1) the Government of Ethiopia should be condemned 
        for failing in its responsibility to sufficiently 
        ameliorate the severe drought and famine conditions 
        throughout its agrarian country-side;
            [(2) the Government of Ethiopia should allocate 
        more of its resources toward the development of a more 
        balanced and effective agrarian system;
            [(3) human rights monitoring groups can be a 
        positive force for human rights in Ethiopia and should 
        be allowed to function and should be supported;
            [(4) the Government of Ethiopia should initiate a 
        genuine policy of national reconciliation;
            [(5) the continued improvement of Ethiopia's 
        treatment of the Ethiopian people and respect for human 
        rights would better relations between the United States 
        and Ethiopia;
            [(6) the President or his representatives should 
        convey to Ethiopian officials the concerns of the 
        Congress expressed in this section at every 
        opportunity; and
            [(7) the President or his representatives should 
        also convey these concerns of the Congress to the 
        governments of United States allies and urge the 
        cooperation of those governments in efforts to ensure a 
        more responsible Ethiopian Government.
    [(c) Prohibition on Imports and Exports.--(1) The President 
shall determine, within 30 days after the date of enactment of 
this Act, whether the Ethiopian regime is conducting a 
deliberate policy of starvation of its people and has not 
granted fundamental human rights to its citizens. The President 
shall submit that determination, and the basis for that 
determination, to the Congress.
    [(2) If the President determines that such a policy is 
being conducted and that such rights are not being granted, 
paragraph (3) shall take effect if the Congress enacts a joint 
resolution approving that determination.
    [(3) If the conditions specified in paragraphs (1) and (2) 
are met--
            [(A) good and services of Ethiopian origin may not 
        be imported into the United States; and
            [(B) except for emergency relief, rehabilitation, 
        and recovery assistance, goods and services of United 
        States origin may not be exported (directly or 
        indirectly) to Ethiopia.
    [(d) Prohibition on Economic Assistance.--The President 
shall suspend all forms of economic assistance to the 
Government of Ethiopia. This section shall not be construed to 
prevent the furnishing of international disaster assistance 
under section 491 of the Foreign Assistance Act of 1961 or 
economic assistance which will directly benefit needy people in 
accordance with section 116 of that Act.

[SEC. 813. ASSISTANCE FOR THE PEOPLE'S REPUBLIC OF MOZAMBIQUE.

    [(a) Economic Assistance.--The funds authorized to be 
appropriated for fiscal years 1986 and 1987 to carry out 
chapter 1 of part I (relating to development assistance) and 
chapter 4 of part II (relating to the economic support fund) of 
the Foreign Assistance Act of 1961 that are allocated for 
bilateral assistance to the People's Republic of Mozambique 
shall be used solely for assistance to the private sector of 
the economy of Mozambique to the maximum extent practicable. To 
the maximum extent practicable, such funds shall be channeled 
to non-governmental entities in Mozambique.
    [(b) Military Assistance.--(1) None of the funds authorized 
to be appropriated for fiscal year 1986 or fiscal year 1987 to 
carry out chapter 2 of part II (relating to grant military 
assistance) or chapter 5 of part II (relating to international 
military education and training) of the Foreign Assistance Act 
of 1961 shall be used to provide assistance to the People's 
Republic of Mozambique unless the President makes the 
certification described in paragraph (2) before providing any 
such assistance for that fiscal year.
    [(2) The certification required by paragraph (1) is a 
certification by the President to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate that the Government of the People's 
Republic of Mazambique--
            [(A) is making a concerted and significant effort 
        to comply with internationally recognized human rights;
            [(B) is making continued progress in implementing 
        essential economic and political reforms, including the 
        restoration of private property and respect for the 
        right to engage in free enterprise in all sectors of 
        the economy;
            [(C) has implemented a plan by September 30, 1986, 
        to reduce the number of foreign military personnel to 
        no more than 55; and
            [(D)(i) in the case of a certification with respect 
        to assistance for fiscal year 1986, is committed to 
        holding free elections at a date no later than 
        September 30, 1986, and to that end has demonstrated 
        its good faith efforts to begin discussions with all 
        major political factions in Mozambique which have 
        declared their willingness to find and implement an 
        equitable political solution to the conflict, with such 
        solution to involve a commitment to--
                    [(I) the electoral process with 
                internationally recognized observers; and
                    [(II) the elimination of all restrictions 
                on the formation and activities of opposition 
                political parties; and
            [(ii) in the case of a certification with respect 
        to assistance for fiscal year 1987, held free elections 
        by September 30, 1986.

                            [TITLE IX--ASIA

[SEC. 901. THE PHILIPPINES.

    [(a) Democracy in the Philippines.--It is the sense of the 
Congress that the United States should encourage the 
revitalization of democracy in the Philippines. To that end, 
the Congress affirms its intention to grant future aid to the 
Philippines according to the determination of the Congress that 
United States security interests are enhanced and sufficient 
progress is made by the Government of the Philippines in--
            [(1) guaranteeing free, fair, and honest elections 
        in 1986 and 1987, or sooner should any such elections 
        occur;
            [(2) ensuring the full, fair, and open prosecution 
        of those responsible for the murder of Benigno Aguino, 
        including those involved in the cover-up;
            [(3) ensuring freedom of speech and freedom of the 
        press, and unrestricted access to the media on the part 
        of all candidates for public office in the local and 
        provincial elections of 1986 and the Presidential 
        election of 1987:
            [(4) establishing the writ of habeas corpus and the 
        termination of the Presidential Detention Action and 
        all other forms of detention without charge or trial;
            [(5) releasing all individuals detained or 
        imprisoned for peaceful political activities;
            [(6) making substantial progress in terminating 
        extrajudicial killings by the Philippine military and 
        security forces and the prosecution of those 
        responsible for such killings in the past:
            [(7) implementing structural economic reforms and a 
        strengthening of the private sector, including 
        elimination of corruption and monopolies; and
            [(8) enhancing the professional capability of the 
        Philippine armed forces and security forces (including 
        the Philippine Constabulary and the Civilian House 
        Defense Forces).
    [(b) Primary Purposes of United States Assistance.--The 
Congress finds and declares that the primary purpose of United 
States assistance to the Philippines should be to maintain and 
foster friendly relations between the people of the Philippines 
and the people of the United States and to encourage the 
restoration of internal security, both of which goals can be 
best served by the achievement of an open and stable democracy.
    [(c) Congressional Oversight.--The Congress, in determining 
future aid levels for the Philippines, will take into account 
not only our military bases agreement with that country, but 
also the extent to which the objectives and goals specified in 
subsections (a) and (b) have been implemented. The Congress may 
defer assistance for the Philippines under both chapter 2 of 
part II of the Foreign Assistance Act of 1961 and the Arms 
Export Control Act if--
            [(1) significant progress is not achieved with 
        respect to the objectives and goals specified in 
        subsections (a) and (b), or
            [(2) the Congress finds that such assistance is 
        used to violate the internationally recognized human 
        rights of the Filipino people.
    [(e) Nonlethal Assistance.--Assistance provided for the 
Philippines for fiscal year 1986 under the Arms Export Control 
Act or under chapter 2 of part II of the Foreign Assistance Act 
of 1961 shall be nonlethal in character.

[SEC. 902. NUCLEAR NON-PROLIFERATION CONDITIONS ON ASSISTANCE FOR 
                    PAKISTAN.

    [Section 620E of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
subsection:
    [``(e) No assistance shall be furnished to Pakistan and no 
military equipment or technology shall be sold or transferred 
to Pakistan, pursuant to the authorities contained in this Act 
or any other Act, unless the President shall have certified in 
writing to the Speaker of the House of Representatives and the 
chairman of the Committee on Foreign Relations of the Senate, 
during the fiscal year in which assistance is to be furnished 
or military equipment or technology is to be sold or 
transferred, that Pakistan does not posses a nuclear explosive 
device and that the proposed United States assistance program 
will reduce significantly the risk that Pakistan will possess a 
nuclear explosive device.''.

[SEC. 903. DISADVANTAGED CHILDREN IN ASIA.

    [(a) Authorization of Additional Assistance.--Section 
241(b) of the Foreign Assistance Act of 1961 is amended by 
striking out ``$2,000,000'' and inserting in lieu thereof 
``$3,000,000''.
    [(b) Additional Steps to Help Amerasian Children.--The 
Congress finds that Amerasian children are currently the object 
of discrimination in the countries in Asia where they now 
reside. Therefore, the President shall report to the Congress 
on the quality of life of these children and on what additional 
steps, such as facilitating adoptions, the United States could 
take to enhance the lives of these children.

[SEC. 904. ASSISTANCE FOR AFGHANISTAN.

    [(a) Authorization.--The President may make available funds 
authorized to be appropriated to carry out chapter 4 of part II 
of the Foreign Assistance Act of 1961 (relating to the economic 
support fund) for the provision of food, medicine, or other 
humanitarian assistance to the Afghan people, notwithstanding 
any other provision of law.
    [(b) Earmarking of Funds.--Each fiscal year, not less than 
$15,000,000 of the aggregate amount of funds available to carry 
out chapter 4 of part II of the Foreign Assistance Act of 1961 
shall be available only for humanitarian assistance to the 
Afghan people pursuant to subsection (a) of this section.
    [(c) Effective Dates.--This section shall take effect on 
the date of enactment of this Act, except that subsection (b) 
shall not apply to fiscal year 1985.

[SEC. 905. ASSISTANCE FOR THE CAMBODIAN PEOPLE.

    [The President may make available to the noncommunist 
resistance forces in Cambodia up to $5,000,000 for fiscal year 
1986, and up to $5,000,000 for fiscal year 1987, of the funds 
authorized to be appropriated to carry out chapter 2 (relating 
to grant military assistance) or chapter 4 (relating to the 
economic support fund) of part II of the Foreign Assistance Act 
of 1961, notwithstanding any other provision of law.

[SEC. 906. PROHIBITION ON CERTAIN ASSISTANCE TO THE KHMER ROUGE.

    [(a) Prohibition.--Notwithstanding any other provision of 
law, none of the funds authorized to be appropriated by this 
Act or any other Act may be obligated or expended for the 
purpose or with the effect of promoting, sustaining, or 
augmenting, directly or indirectly, the capacity of the Khmer 
Rouge or any of its members to conduct military or paramilitary 
operations in Cambodia or elsewhere in Indochina.
    [(b) Deobligation or Certain Funds.--All funds appropriated 
before the date of enactment of this section which were 
obligated but not expended for activities having the purpose or 
effect described in subsection (a) shall be deobligated and 
shall be deposited in the Treasury of the United States as 
miscellaneous receipts.
    [(c) Exception for Humanitarian Assistance--This section 
shall not be construed as limiting the provision of food, 
medicine, or other humanitarian assistance to the Cambodian 
people.

[SEC. 907. POLITICAL SETTLEMENT IN SRI LANKA.

    [(a) Findings.--The Congress finds that--
            [(1) the Government and people of Sri Lanka and the 
        Government and people of the United States share a 
        common devotion to independence, democracy, and human 
        rights;
            [(2) the United States is concerned over the armed 
        clashes between the security forces of the Government 
        of Sri Lanka and some Sri Lankans who seek through 
        violent means, including terrorist attacks, to divide 
        that nation;
            [(3) there have been acts of terrorism committed 
        against members of the Sri Lankan security forces, as 
        well as against civilians, and there have been human 
        rights abuses by members of the security forces against 
        civilians, particularly Tamils, despite the efforts of 
        the Government, which the Congress believes must be 
        intensified, to put an end to those abuses;
            [(4) the differences and grievances in Sri Lanka 
        cannot be resolved through the use of force; and
            [(5) the United States is a proud participant 
        through its economic assistance programs in Sri Lanka's 
        highly regarded development efforts and looks forward 
        to enhanced cooperation and assistance in the context 
        of a political settlement in Sri Lanka leading to the 
        kind of peaceful climate in which additional aid could 
        be effectively utilized.
    [(b) Political Settlement.--It is, therefore, the sense of 
the Congress that--
            [(1) all parties in Sri Lanka, from all communities 
        in and out of government, should renew their efforts to 
        achieve a joint political settlement which meets the 
        legitimate concerns of all the people of Sri Lanka, 
        while preserving the territory integrity of Sri Lanka; 
        and
            [(2) all parties outside Sri Lanka should do 
        nothing which would impeded progress toward such a 
        settlement.

[SEC 908. UNITED STATES POLICY TOWARD THE REPUBLIC OF KOREA.

    [(a) Findings.--The Congress finds that--
            [(1) the Government of the Republic of Korea has 
        taken several significant and encouraging steps in 
        liberalizing the political system in that country;
            [(2) among the steps which have facilitated a more 
        democratic environment are the release of hundreds of 
        student demonstrators, the lifting of a political ban 
        on more than 300 opposition leaders, and the holding of 
        a vigorously contested election for the National 
        Assembly in which the opposition made substantial 
        gains;
            [(3) despite these steps, the people of the 
        Republic of Korea, who have become increasingly better 
        educated and prosperous as a result of Korea's 
        extraordinarily rapid economic development, have the 
        desire and the capability to participate more fully and 
        effectively in the government of their own country; and
            [(4) while internationally recognized human rights 
        are clearly respected much more in the Republic of 
        Korea than in the Democratic People's Republic of 
        Korea, continued progress toward democratization in the 
        south is in the interests of both the Republic of Korea 
        and the United States, inasmuch as long-term political 
        stability cannot be assured in the absence of further 
        progress towards democratic government.
    [(b) United States Policy.--It is the policy of the United 
States to provide assistance to the Republic of Korea in order 
to help that country defend itself against external aggression. 
It is the hope of the United States that the continuing close 
relations between our two countries, including such assistance, 
will encourage the establishment of a genuinely democratic 
system in the Republic of Korea, in which internationally 
recognized human rights, including freedom of the press, 
freedom of association, and freedom of assembly are observed.

               [TITLE X--FOOD AND AGRICULTURAL ASSISTANCE

[SEC. 1001. INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT.

    [Section 103(g) of the Foreign Assistance Act of 1961 is 
amended to read as follows:
    [``(g)(1) In order to carry out the purposes of this 
section, the President may continue United States participation 
in and may make contributions to the International Fund for 
Agricultural Development.
    [``(2) Of the aggregate amount authorized to be 
appropriated to carry out part I of this Act, up to $50,000,000 
for fiscal year 1986 and up to $50,000,000 for fiscal year 1987 
may be made available, by appropriation or by transfer, for 
United States contributions to the second replenishment of the 
International Fund for Agricultural Development.''.

[SEC. 1002. PUBLIC LAW 480 TITLE II MINIMUMS.

    [Paragraph (3) of section 201(b) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by inserting 
immediately before the semicolon the following: ``, except that 
for fiscal year 1986 the minimum quantity distributed shall be 
1,800,000 metric tons, of which not less than 1,300,000 metric 
tons for nonemergency programs shall be distributed through 
nonprofit voluntary agencies and the World Food Program, and 
for fiscal year 1987 the minimum quantity distributed shall be 
1,900,000 metric tons, of which no less than 1,425,000 metric 
tons for nonemergency programs shall be distributed through 
nonprofit voluntary agencies of the World Food Program''.

[SEC. 1003. EXPRESS AUTHORITY FOR TITLE II DIRECT DISTRIBUTION, SALE, 
                    AND BARTER.

    [Section 202(a) of the Agricultural Trade Development and 
Assistance Act of 1954 is amended by inserting after the first 
sentence the following new sentence: ``Such commodities may be 
furnished for direct distribution, sale, barter, or other 
appropriate disposition in carrying out the purposes set forth 
in section 201.''.

[SEC. 1004. ROLE OF PRIVATE VOLUNTARY ORGANIZATIONS AND COOPERATIVES.

    [(a) Nutritional and Development Objectives.--Section 
202(b) of the Agricultural Trade Development and Assistance Act 
of 1954 is amended by adding at the end thereof the following 
new paragraph:
    [``(4) In the case of commodities distributed under this 
title by nonprofit voluntary agencies, consideration shall be 
given to nutritional and development objectives as established 
by those agencies in light of their assessment of the needs of 
the people assisted.''.
    [(b) Food for Development Programs.--Section 302(c)(4) of 
such Act is amended by inserting ``and of United States 
nonprofit voluntary agencies and cooperatives'' immediately 
after ``agriculture''.

[SEC. 1005. MULTIYEAR AGREEMENTS WITH PVOS AND COOPERATIVES.

    [Section 202 of the Agricultural Trade Development and 
Assistance Act of 1954 is amended by adding at the end thereof 
the following:
    [``(c)(1) In agreements with nonprofit voluntary agencies 
and cooperatives for nonemergency assistance under this title, 
the President is encouraged, if requested by the nonprofit 
voluntary agency or cooperative, to approve multiyear 
agreements to make agricultural commodities available for 
distribution by that agency or cooperative. Such agreement 
shall be subject to the availability each fiscal year of the 
necessary appropriations and agricultural commodities.
    [``(2) Paragraph (1) does not apply to an agreement which 
the President determines should be limited to a single year 
because of the past performance of the nonprofit voluntary 
agency or cooperative or because the agreement involves a new 
program of assistance.
    [``(3) In carrying out a multiyear agreement pursuant to 
this subsection, a nonprofit voluntary agency or cooperative 
shall not be required to obtain annual approval from the United 
States Government in order to continue its assistance program 
pursuant to the agreement, unless exceptional and unforeseen 
circumstances have occurred which the President determines 
require such approval.''.

[SEC. 1006. TITLE II PROGRAMMING REPORTS.

    [Section 408(b) of the Agricultural Trade Development and 
Assistance Act of 1954 is amended by striking out ``title I'' 
both places it appears and inserting in lieu thereof ``titles I 
and II''.

[SEC. 1007. ELIGIBLE COMMODITIES UNDER SECTION 416(B).

    [Section 416(b) of the Agricultural Act of 1949 (7 U.S.C. 
1431(b)) is amended by inserting ``, rice,'' after ``Dairy 
products'' in the first sentence and by inserting ``, rice,'' 
after ``dairy products'' in the third and eighth sentences.

[SEC. 1008. LONG-TERM AGRICULTURAL COMMODITY AGREEMENTS WITH FOOD 
                    DEFICIT COUNTRIES.

    [As part of the United States foreign assistance program, 
the President should explore the possibility of concluding 
long-term agricultural commodity agreements to help stabilize 
and increase the flow of concessional and commercial food 
stuffs with food deficit countries. The President shall prepare 
and transmit to the Congress a report on his efforts to achieve 
such long-term agreements by June 1, 1986.

                         [TITLE XI--PEACE CORPS

[SEC. 1101. AUTHORIZATIONS OF APPROPRIATIONS.

    [Section 3(b) of the Peace Corps Act is amended by amending 
the first sentence to read as follows: ``There are authorized 
to be appropriated to carry out the purposes of this Act 
$130,000,000 for each of the fiscal years 1986 and 1987.''.

[SEC. 1102. NUMBER OF PEACE CORPS VOLUNTEERS.

    [(a) Statement of Policy.--Section 2 of the Peace Corps Act 
(22 U.S.C. 2501) is amended--
            [(1) by inserting ``(a)'' immediately after ``Sec. 
        2.''; and
            [(2) by adding at the end thereof the following new 
        subsection:
    [``(b) The Congress declares that it is the policy of the 
United States and a purpose of the Peace Corps to maintain, to 
the maximum extent appropriate and consistent with programmatic 
and fiscal considerations, a volunteer corps of at least 10,000 
individuals.''.
    [(b) Annual Report.--Section 11 of the Peace Corps Act (22 
U.S.C. 2510) is amended by adding at the end thereof the 
following new sentence:
    [``The President shall also include in the report a 
description of any plans to carry out the policy set forth in 
section 2(b) of this Act.''.

[SEC. 1103. LIMITATION ON LENGTH OF PEACE CORPS EMPLOYMENT.

    [(a) Authority to Make Appointments of More Than Five 
Years.--Section 7(a) of the Peace Corps Act (22 U.S.C. 2506(a)) 
is amended--
            [(1) in paragraph (2)--
                    [(A) in subparagraph (A)--
                            [(i) by striking out ``five'' and 
                        inserting in lieu thereof ``seven and 
                        one-half''; and
                            [(ii) by striking out ``unless'' 
                        and all that follows through ``basis'' 
                        and inserting in lieu thereof ``, 
                        subject to paragraph (5) and except as 
                        provided in paragraph (6)''; and
                    [(B) in the third sentence, by inserting 
                ``(other than the provisions of section 309)'' 
                after ``1980''; and
            [(2) by adding at the end thereof the following new 
        paragraphs:
    [``(5) Except as provided in paragraph (6), the Director of 
the Peace Corps may make appointments or assignments of United 
States citizens under paragraph (2) for periods of more than 
five years only in the case of individuals whose performance as 
employees of the Peace Corps has been exceptional and only in 
order to achieve one or more of the following purposes:
            [``(A) To permit individuals who have served at 
        least two and one-half years of such an appointment or 
        assignment abroad to serve in the United States 
        thereafter.
            [``(B) To permit individuals who have served at 
        least two and one-half years of such an appointment or 
        assignment in the United States to serve abroad 
        thereafter.
            [``(C) To permit individuals who have served at 
        least two and one-half years of such an appointment or 
        assignment in a recruitment, selection, or training 
        activity to be reassigned to an activity other than the 
        one in which they have most recently so served.
            [``(D) To promote the continuity of functions in 
        administering the Peace Corps.
At no time may the number of appointments or assignments of 
United States citizens in effect under paragraph (2) for 
periods in excess of five years exceed fifteen percent of the 
total of all appointments and assignments of United States 
citizens then in effect under paragraph (2).
    [``(6) Notwithstanding the limitation set forth in 
paragraph (2)(A) on the length of an appointment or assignment 
under paragraph (2) and notwithstanding the limitations set 
forth in paragraph (5) on the circumstances under which such an 
appointment or assignment may exceed five years, the Director 
of the Peace Corps, under special circumstances, may personally 
approve an extension of an appointment or assignment under 
paragraph (2) for not more than one year on an individual 
basis.''.
    [(b) Reports to Congress.--The Director of the Peace Corps 
shall, not later than January 1, 1986, submit to the Committee 
on Foreign Relations of the Senate and the Committee on Foreign 
Affairs of the House of Representatives a report describing the 
criteria to be applied by the Director in exercising the 
authority provided by amendments made by subsection (a) to make 
appointments or assignments of individuals for periods of more 
than five years. Not later than each January 1 thereafter, the 
Director shall submit to the Committees referred to in the 
preceding sentence a report on--
            [(1) the exercise of such authority during the 
        preceding fiscal year for each of the purposes 
        specified in paragraph (5) of section 7(a) of the Peace 
        Corps Act, as added by subsection (a) of this section; 
        and
            [(2) the exercise during that fiscal year of the 
        authority under paragraph (6) of such section 7(a), as 
        added by subsection (a) of this section.

[SEC. 1104. PEACE CORPS NATIONAL ADVISORY COUNCIL.

    [(a) Establishment of Council.--The Peace Corps Act (22 
U.S.C. 2501 and following is amended by inserting after section 
11 the following new section:

                [``peace corps national advisory council

    [``Sec. 12. (a) Establishment.--A Peace Corps National 
Advisory Council (hereinafter in this section referred to as 
the `Council') shall be established in accordance with the 
provisions of this section.
    [``(b) Functions.--(1) The Council shall advise and consult 
with the President and the Director of the Peace Corps with 
regard to policies and programs designed to further the 
purposes of this Act and shall, as the Council considers 
appropriate, periodically report to the Congress with regard to 
the Peace Corps.
    [``(2) Members of the Council shall (subject to subsection 
(d)(1)) conduct on-site inspections, and make examinations, of 
the activities of the Peace Corps in the United States and in 
other countries in order to--
            [``(A) evaluate the accomplishments of the Peace 
        Corps;
            [``(B) assess the potential capabilities and the 
        future role of the Peace Corps;
            [``(C) make recommendations to the President, the 
        Director of the Peace Corps, and, as the Council 
        considers appropriate, the Congress, for the purpose of 
        guiding the future direction of the Peace Corps and of 
        helping to ensure that the purposes and programs of the 
        Peace Corps are carried out in ways that are 
        economical, efficient, responsive to changing needs in 
        developing countries and to changing relationships 
        among people, and in accordance with law, and
            [``(D) make such other evaluations, assessments, 
        and recommendations as the Council considers 
        appropriate.
    [``(3) The Council may provide for public participation in 
its activities.
    [``(c) Membership.--(1) Persons appointed as members of the 
Council shall be broadly representative of the general public, 
including educational institutions, private volunteer agencies, 
private industry, farm organizations, labor unions, different 
regions of the United States, different educational, economic, 
racial, and national backgrounds and age grouping, and both 
sexes.
    [``(2)(A) The Council shall consist of fifteen voting 
members who shall be appointed by the President, by and with 
the advice and consent of the Senate. At least seven of such 
members shall be former Peace Corps volunteers, and not more 
than eight of such members shall be members of the same 
political party.
    [``(B) The first appointments of members of the Council 
under this paragraph shall be made not more than sixty days 
after the date of the enactment of this section and, solely for 
purposes of determining the expiration of their terms, shall be 
deemed to take effect on the sixtieth day after such date of 
enactment.
    [``(C) No member appointed under this paragraph may be an 
officer or employee of the United States Government.
    [``(D) Of the members initially appointed under this 
paragraph, eight shall be appointed to 1-year terms and seven 
shall be appointed to 2-year terms. Thereafter, all appointed 
members shall be appointed to 2-year terms.
    [``(E) A member of the Council appointed to fill a vacancy 
occurring before the expiration of the term for which the 
member's predecessor was appointed shall be appointed only for 
the remainder of that term.
    [``(F) No member of the Council may serve for more than two 
consecutive 2-year terms.
    [``(G) Members of the Council shall serve at the pleasure 
of the President.
    [``(H) An appointed member of the Council may be removed by 
a vote of nine members for malfeasance in office, for 
persistent neglect of or inability to discharge duties, or for 
offenses involving moral turpitude, and for no other cause.
    [``(I) Within thirty days after any vacancy occurs in the 
office of an appointed member of the Council, the President 
shall nominate an individual to fill the vacancy.
    [``(3) In addition to the voting members of the Council, 
the Secretary of State and the Administrator of the Agency for 
International Development, or their designees, and the Director 
and Deputy Director of the Peace Corps, shall be non-voting 
members, ex officio, of the Council.
    [``(d) Compensation.--(1) Except as provided in paragraph 
(2), a member of the Council who is not an officer or employee 
of the United States Government--
            [``(A) shall be paid compensation out of funds made 
        available for the purposes of this Act at the daily 
        equivalent of the highest rate payable under section 
        5332 of title 5, United States Code, for each day 
        (including travel time) during which the member is 
        engaged in the actual performance of duties as a 
        Council member, and
            [``(B) while away from his or her home or regular 
        place of business on necessary travel, as determined by 
        the Director of the Peace Corps, in the actual 
        performance of duties as a Council member, shall be 
        paid per diem, travel, and transportation expenses in 
        the same manner as is provided under subchapter I of 
        chapter 57 of title 5, United States Code.
    [``(2) A member of the Council may not be paid compensation 
under paragraph (1)(A) for more than twenty days in any 
calendar year.
    [``(e) Quorum.--A majority of the voting members of the 
Council shall constitute a quorum for the purposes of 
transacting any business.
    [``(f) Financial Interests of Members.--A member of the 
Council shall disclose to the Council the existence of any 
direct or indirect financial interest of that member in any 
particular matter before the Council and may not vote or 
otherwise participate as a Council member with respect to that 
particular matter.
    [``(g) Chair and Vice Chair.--At its first meeting and at 
its first regular meeting in each calendar year thereafter, the 
Council shall elect a Chair and Vice Chair from among its 
appointed members who are citizens of the United States. The 
Chair and Vice Chair may not both be members of the same 
political party.
    [``(h) Meetings, Bylaws, and Regulations.--(1) The Council 
shall hold a regular meeting during each calendar quarter and 
shall meet at the call of the President, the Director of the 
Peace Corps, the Council's Chair, or one-fourth of its members.
    [``(2) The Council shall prescribe such bylaws and 
regulations as it considers necessary to carry out its 
functions. Such bylaws and regulations shall include procedures 
for fixing the time and place of meetings, giving or waiving of 
notice of meetings, and keeping of minutes of meetings.
    [``(i) Reports to the President and the Director.--Not 
later than January 1, 1988, and not later than January 1 of 
each second year thereafter, the Council shall submit to the 
President and the Director of the Peace Corps a report on its 
views on the Program and activities of the Peace Corps. Each 
report shall contain a summary of the advice and 
recommendations provided by the Council to the President and 
the Director during the period covered by the report and such 
recommendations (including recommendations for administrative 
or legislative action) as the Council considers appropriate to 
make to the Congress. Within ninety days after receiving each 
such report, the President shall submit to the Congress a copy 
of the report, together with any comments concerning the report 
that the President or the Director considers appropriate.
    [``(j) Administrative Assistance.--The Director of the 
Peace Corps shall make available to the Council such personnel, 
administrative support services, and technical assistance as 
are necessary to carry out its functions effectively.''.
    [(b) Termination of Similar Advisory Body.--Any advisory 
body carrying out functions similar to those assigned to the 
Peace Corps National Advisory Council provided for in 
subsection (a) shall cease to exist sixty days after the date 
of the enactment of this Act.

[SEC. 1105. NONPARTISAN APPOINTMENTS.

    [(a) Political Tests.--The Peace Corps Act (22 U.S.C. 2501 
and following) is amended--
            [(1) by redesignating sections 25, 26, and 27 as 
        sections 26, 27, and 28, respectively; and
            [(2) by inserting after section 24 the following 
        new section:

                      [``nonpartisan appointments

    [``Sec. 25. In carrying out this Act, no political test or 
political qualification may be used in--
            [``(1) selecting any person for enrollment as a 
        volunteer or for appointment to a position at, or for 
        assignment to (or for employment for assignment to), a 
        duty station located abroad, or
            [''(2) promoting or taking any other action with 
        respect to any volunteer or any person assigned to such 
        a duty station.''.
    [(b) Discrimination.--Section 5(a) of the Peace Corps Act 
(22 U.S.C. 2504(a)) is amended by amending the last sentence to 
read as follows: ``In carrying out this subsection, there shall 
be no discrimination against any person on account of race, 
sex, creed, or color.''.

  [TITLE XII--MISCELLANEOUS PROVISIONS RELATING TO FOREIGN ASSISTANCE

[SEC. 1201. NOTICE TO CONGRESS OF USE OF CERTAIN AUTHORITIES RELATING 
                    TO HUMAN RIGHTS CONDITIONS.

    [Section 502B of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
subsection:
    [``(g) Whenever the provisions of subsection (e) or (f) of 
this section are applied, the President shall report to the 
Congress before making any funds available pursuant to those 
subsections. The report shall specify the country involved, the 
amount and kinds of assistance to be provided, and the 
justification for providing the assistance, including a 
description of the significant improvements which have occurred 
in the country's human rights record.''.

[SEC. 1202. PROHIBITIONS AGAINST ASSISTANCE.

    [Section 620(f) of the Foreign Assistance Act of 1961 is 
amended--
            [(1) by inserting ``(1)'' immediately after 
        ``(f)'';
            [(2) by redesignating clauses (1), (2), and (3) as 
        clauses (A), (B), and (C), respectively; and
            [(3) by adding at the end thereof the following new 
        paragraph:
    [``(2) Notwithstanding the provisions of paragraph (1) of 
this subsection, the President may remove a country, for such 
period as the President determines, from the application of 
this subsection, and other provisions which reference this 
subsection, if the President determines and reports to the 
Congress that such action is important to the national interest 
of the United States. It is the sense of the Congress that when 
consideration is given to authorizing assistance to a country 
removed from the application of this subsection, one of the 
factors to be weighted, among others, is whether the country in 
question is giving evidence of fostering the establishment of a 
genuinely democratic system, with respect for internationally 
recognized human rights.''.

[SEC. 1203. LAND REFORM PROGRAMS.

    [Section 620(g) of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following sentence: 
``This prohibition shall not apply to monetary assistance made 
available for use by a government (or a political subdivision 
or agency of a government) to compensate nationals of that 
country in accordance with a land reform program, if the 
President determines that monetary assistance for such land 
reform program will further the national interests of the 
United States.''.

[SEC. 1204. SUSPENSION OF ASSISTANCE TO COUNTRIES VIOLATING U.S. EXPORT 
                    LAWS IN ORDER TO MANUFACTURE A NUCLEAR EXPLOSIVE 
                    DEVICE.

    [(a) Suspension of Assistance Because of Illegal Exports.--
Subsection (a)(1) of section 670 of the Foreign Assistance Act 
of 1961 is amended--
            [(1) by inserting ``(A)'' after ``country which'';
            [(2) by inserting immediately before the period at 
        the end thereof ``, or (B) is a non-nuclear-weapon 
        state which, on or after the date of enactment of the 
        International Security and Development Cooperation Act 
        of 1985, exports illegally (or attempts to export 
        illegally) from the United States any material, 
        equipment, or technology which would contribute 
        significantly to the ability of such country to 
        manufacture a nuclear explosive device, if the 
        President determines that the material, equipment, or 
        technology was to be used by such country in the 
        manufacture of a nuclear explosive device''; and
            [(3) by adding at the end thereof the following: 
        ``For purposes of clause (B), an export (or attempted 
        export) by a person who is an agent of, or is otherwise 
        acting on behalf of or in the interests of, a country 
        shall be considered to be an export (or attempted 
        export) by that country.''.
    [(b) Conforming Amendments.--Such section 670 is amended--
            [(1) in the section caption by inserting ``Illegal 
        Exports for Nuclear Explosive Devices,'' after 
        ``Transfers,''; and
            [(2) by striking out ``(5) As used in this 
        subsection'' and inserting in lieu thereof ``(c) As 
        used in this section''.
    [(c) Effective Date.--The amendments made by this section 
shall take effect on the date of enactment of this Act.

[SEC. 1205. REPORTS ON ECONOMIC CONDITIONS IN CERTAIN COUNTRIES.

    [(a) External Debt Burden of Certain Countries Receiving 
United States Assistance.--The Congress finds that the 
Governments of Egypt, Israel, Turkey, and Portugal each have an 
enormous external debt burden which may be made more difficult 
by virtue of financing provided for those governments under 
various United States assistance programs.
    [(b) Annual Reports on Economic Conditions.--In order to 
assist the Congress in examining United States assistance for 
these countries, the President shall report to Speaker of the 
House of Representatives and to the chairman of the Committee 
on Foreign Relations of the Senate, not later than January 15 
of each year, regarding economic conditions prevailing in 
Egypt, Israel, Turkey, and Portugal which may affect their 
respective ability to meet their international debt obligations 
and to stabilize their economies.

[SEC. 1206. EGYPTIAN-ISRAELI RELATIONS.

    [The Congress notes the recent effort of Egypt to move the 
peace process forward. However, the Congress continues to be 
concerned about the less than normal relations between Egypt 
and Israel. It is the sense of the Congress that all United 
States foreign assistance to Egypt is provided in the 
expectation that the Egyptian Government will continue in its 
efforts to bring peace to the region and that it will continue 
to support and fulfill the provisions of the Camp David Accords 
and the Egyptian-Israeli Peace Treaty.

[SEC. 1207. PROCUREMENT OF CONSTRUCTION AND ENGINEERING SERVICES.

    [Section 604(g) of the Foreign Assistance Act of 1961 is 
amended--
            [(1) by inserting ``(1)'' after ``(g)''; and
            [(2) by adding at the end thereof the following new 
        paragraph:
    [``(2) Paragraph (1) does not apply with respect to an 
advanced developing country which--
            [``(A) is receiving direct economic assistance 
        under chapter 1 of part I or chapter 4 of part II of 
        this Act, and
            [``(B) if the country has its own foreign 
        assistance programs which finance the procurement of 
        construction or engineering services, permits United 
        States firms to compete for those services.''.

[SEC. 1208. COMPLETION OF PLANS AND COST ESTIMATES.

    [Section 611 of the Foreign Assistance Act of 1961 is 
amended--
            [(1) in subsection (a) by striking out ``$100,000'' 
        and inserting in lieu thereof ``$500,000''; and
            [(2) in subsection (b) by striking out ``the 
        procedures set forth in the Principles and Standards 
        for Planning Water and Related Land Resources, dated 
        October 25, 1973, with respect to such computations'' 
        and inserting in lieu thereof ``the principles, 
        standards, and procedures established pursuant to the 
        Water Resources Planning Act (42 U.S.C. 1962, et seq.) 
        or acts amendatory or supplementary thereto''.

[SEC. 1209. REPROGRAMMING NOTIFICATIONS TO CONGRESS.

    [(a) Reprogramming Notifications.--Section 634A of the 
Foreign Assistance Act of 1961 is amended--
            [(1) by inserting ``(a)'' immediately before 
        ``None'';
            [(2) by inserting ``or the Arms Export Control 
        Act'' immediately after ``disaster relief and 
        rehabilitation)'' and immediately after ``this Act'' 
        the second place it appears; and
            [(3) by adding at the end of the section the 
        following new subsections:
            [``(b) The notification requirement of this section 
        does not apply to the reprogramming--
            [``(1) of funds to be used for an activity, 
        program, or project under chapter 1 of part I if the 
        amounts to be obligated for that activity, program, or 
        project for that fiscal year do not exceed by more than 
        10 percent the amount justified to the Congress for 
        that activity, program, or project for that fiscal 
        year; or
            [``(2) of less than $25,000 to be used under 
        chapter 8 of part I, or under chapter 5 of part II, for 
        a country for which a program under that chapter for 
        that fiscal year was justified to the Congress.
    [``(c) The President shall notify the chairman of the 
Committee on Foreign Relations of the Senate and the chairman 
of the Committee on Foreign Affairs of the House of 
Representatives concerning any reprogramming of funds in the 
International Affairs Budget Function, the authorizations of 
appropriations for which are in their respective jurisdictions, 
to the same degree and with the same conditions as the 
President notifies the Committees on Appropriations. The 
requirements of this subsection are in addition to, and not in 
lieu of, other notification requirements.''.
    [(b) Allocation Reports.--Section 653 of such Act is 
amended--
            [(1) by inserting in subsection (a) ``or the Arms 
        Export Control Act'' immediately after ``sections 451 
        or 637)'';
            [(2) by striking out subsection (b); and
            [(3) by redesignating subsection (c) as subsection 
        (b).
    [(c) Quarterly Reports.--Section 36(a) of the Arms Export 
Control Act is amended--
            [(1) in paragraph (5), by striking out ``cash'' and 
        by striking out ``, credits to be extended under 
        section 23, and guaranty agreements to be made under 
        section 24''; and
            [(2) in paragraph (6), by striking out ``cash'' and 
        by striking out ``and credits expected to be 
        extended''.

[SEC. 1210. REPORT ON UNITED STATES ASSISTANCE TO COAL EXPORTING 
                    NATIONS.

    [Not later than 30 days after the date of enactment of this 
Act, the President shall submit to the appropriate committees 
of the Congress a report describing the status and terms of, 
and containing all other pertinent information relating to, any 
United States Government assistance which is provided to 
foreign nations that produce or export coal for the purpose of 
financing or assisting in the development of coal production, 
transportation, export, or other coal-related activities or 
operations.

[SEC. 1211. REPEAL OF OBSOLETE PROVISIONS AND CORRECTION OF TECHNICAL 
                    REFERENCES.

    [(a) Repeals.--The Foreign Assistance Act of 1961 is 
amended as follows:
            [(1) The third sentence of section 105(a) is 
        repealed.
            [(2) Section 106(b)(1) is amended by striking out 
        ``(A)'' and by striking out subparagraph (B).
            [(3) Section 110 is amended by striking out ``(a)'' 
        and by striking out subsection (b).
            [(4) Chapter 10 of part I is repealed.
    [(b) Correction of Cross-References.--
            [(1) Foreign service act.--Section 636(a)(14) of 
        such Act is amended by striking out ``the Foreign 
        Service Act of 1946, as amended (22 U.S.C. 801 et 
        seq.)'' and inserting in lieu thereof ``the Foreign 
        Service Act of 1980 (22 U.S.C. 3901 et seq.)''.
            [(2) Title 31 of the u.s. code.--Section 611(a) of 
        such Act is amended by striking out ``section 1311 of 
        the Supplemental Appropriation Act, 1955 as amended (31 
        U.S.C. 200)'' and inserting in lieu thereof ``section 
        1501 of title 31, United States Code''.
            [(3) ITAR regulations.--Section 47(6) of the Arms 
        Export Control Act is amended by striking out 
        ``combat'' and inserting in lieu thereof ``military''.

                 [TITLE XIII--MISCELLANEOUS PROVISIONS

[SEC. 1301. EFFECTIVE DATE.

    [Except as otherwise provided in this Act, this Act shall 
take effect on October 1, 1985.]
          * * * * * * *
                              ----------                              


   JORDAN SUPPLEMENTAL ECONOMIC ASSISTANCE AUTHORIZATION ACT OF 1985

[TITLE IV--AUTHORIZATION OF ECONOMIC SUPPORT FUND ASSISTANCE FOR JORDAN

                              [short title

    [Sec. 401. This title may be cited as the ``Jordan 
Supplemental Economic Assistance Authorization Act of 1985''.

                         [economic support fund

    [Sec. 402. (a)(1) In addition to funds otherwise available 
for such purposes for such fiscal year, there are authorized to 
be appropriated to the President to carry out chapter 4 of part 
II of the Foreign Assistance Act of 1961, $250,000,000 for the 
fiscal year 1985, which amount shall be available only for 
Jordan.
    [(2) Of the funds authorized to be appropriated by 
paragraph (1)--
            [(A) for the fiscal year 1985, $50,000,000 shall be 
        available only for commodity import programs and 
        $30,000,000 shall be available only for project 
        assistance;
            [(B) for the fiscal year 1986, $50,000,000 shall be 
        available only for commodity import programs and 
        $30,000,000 shall be available only for project 
        assistance; and
            [(C) for the fiscal year 1987, $60,000,000 shall be 
        available only for commodity import programs and 
        $30,000,000 shall be available only for project 
        assistance.
    [(b) Amounts appropriated to carry out this section are 
authorized to remain available until September 30, 1987.

                                [policy

    [Sec. 403. (a) Sense of Congress.--It is the sense of 
Congress that no foreign military sales financing authorized by 
this Act may be used to finance the procurement by Jordan of 
United States advanced aircraft, new air defense weapons 
systems, or other new advanced military weapons systems, and no 
notification may be made pursuant to section 36(b) of the Arms 
Export Control Act with respect to a proposed sale to Jordan of 
United States advanced aircraft, new air defense systems, or 
other new advanced military weapons systems, unless Jordan is 
publicly committed to the recognition of Israel and to 
negotiate promptly and directly with Israel under the basic 
tenets of United Nations Security Council Resolutions 242 and 
338.
    [(b) Certification.--Any notification made pursuant to 
section 36(b) of the Arms Export Control Act with respect to a 
proposed sale to Jordan of United States advanced aircraft, new 
air defense systems or other new advanced military weapons, 
must be accompanied by a Presidential certification of Jordan's 
public commitment to the recognition of Israel and to negotiate 
promptly and directly with Israel under the basic tenets of 
United Nations Security Council Resolutions 242 and 338.]
                              ----------                              


             AFRICAN FAMINE RELIEF AND RECOVERY ACT OF 1985

[SECTION 1. SHORT TITLE.

    [This Act may be cited as the ``African Famine Relief and 
Recovery Act of 1985''.

[SEC. 2. INTERNATIONAL DISASTER ASSISTANCE.

    [Chapter 9 of part I of the Foreign Assistance Act of 1961 
(22 U.S.C. 2292-2292p) is amended by adding at the end thereof 
the following new section:

[``SEC. 495K. AFRICAN FAMINE ASSISTANCE.

    [``(a) Authorization of Assistance.--The President is 
authorized to provide assistance for famine relief, 
rehabilitation, and recovery in Africa. Assistance under this 
section shall be provided for humanitarian purposes and shall 
be provided on a grant basis. Such assistance shall include--
            [``(1) relief, rehabilitation, and recovery 
        projects to benefit the poorest people, including the 
        furnishing of seeds for planting, fertilizer, 
        pesticides, farm implements, farm animals and vaccine 
        and veterinary services to protect livestock upon which 
        people depend, blankets, clothing, and shelter, disease 
        prevention and health care projects, water projects 
        (including water purification ant well drilling), 
        small-scale agricultural projects, and food protection 
        and preservation projects; and
            [``(2) projects to meet emergency health needs, 
        including vaccinations.
    [``(b) Uses of Funds.--
            [``(1) Private and voluntary organizations and 
        international organizations.--Funds authorized to be 
        appropriated by this section shall be used primarily 
        for grants to private and voluntary organizations and 
        international organizations.
            [``(2) Emergency health projects.--A significant 
        portion of the funds authorized to be appropriated by 
        this section shall be used for emergency health 
        projects pursuant to subsection (a)(2)
            [``(3) Management support activities.--Of the 
        amount authorized to be appropriated by this section, 
        $2,500,000 shall be transferred to the 'Operating 
        Expenses of the Agency for International Development' 
        account. These funds shall be used for management 
        support activities associated with the planning, 
        monitoring, and supervision of emergency food and 
        disaster assistance provided in those countries in 
        Africa described in section 5(a) of the African Famine 
        Relief and Recovery Act of 1986.
    [``(c) Authorization of Appropriations.--In addition to the 
amounts otherwise available for such purpose, there are 
authorized to be appropriated $137,500,000 for the fiscal year 
1985 for use in providing assistance under this section.
    [``(d) Policies and Authorities to be Applied.--Assistance 
under this section shall be furnished in accordance with the 
policies and General authorities contained in section 491.''.

[SEC. 3. MIGRATION AND REFUGEE ASSISTANCE.

    [(a) Authorization of Appropriations.--In addition to 
amounts otherwise available for such purpose, there are 
authorized to be appropriated to the Department of State for 
``Migration and Refugee Assistance'' for the fiscal year 1985, 
$37,500,000 for assisting refugees and displaced persons in 
Africa.
    [(b) Use of Funds.--
            [(1) Projects for immediate development needs.--Up 
        to 54 percent of the funds authorized to be 
        appropriated by this section may be made available to 
        the United Nations Office of Emergency Operations in 
        Africa for projects such as those proposed at the 
        second International Conference on Assistance to 
        Refugees in Africa (ICARA II) to address the immediate 
        development needs created by refugees and displaced 
        persons in Africa.
            [(2) Emergency relief and recovery efforts.--The 
        remaining funds authorized to be appropriated by this 
        section shall be used by the Bureau for Refugee 
        Programs of the Department of State for emergency 
        relief and recovery efforts in Africa.

[SEC. 4. DEPARTMENT OF DEFENSE ASSISTANCE.

    [(a) Special Rule on Reimbursement.--If the Department of 
Defense furnishes goods or services for African supplemental 
famine assistance activities, the Department of Defense shall 
be reimbursed for not more than the costs which it incurs in 
providing those goods or services. These costs do not include 
military pay and allowances, amortization and depreciation, and 
fixed facility costs.
    [(b) Defnition of African Supplemental Famine Assistance 
Activities.--For purposes of this section, the term ``African 
supplemental famine assistance activities'' means the provision 
of the following fiscal year 1985 supplemental assistance for 
Africa:
            [(1) Famine assistance pursuant to section 2 of 
        this Act.
            [(2) Migration and refugee assistance pursuant to 
        section 3 of this Act.
            [(3) Assistance pursuant to supplemental 
        appropriations for title II of the Agricultural Trade 
        Development and Assistance Act of 1954 (7 U.S.C. 1721-
        1726).
            [(4) Assistance with funds appropriated during 
        fiscal year 1985 for the Emergency Refugee and 
        Migration Assistance Fund (22 U.S.C. 2601(c)).

[SEC. 5. GENERAL PROVISIONS RELATING TO ASSISTANCE.

    [(a) Countries To Be Assisted.--Amounts authorized to be 
appropriated by this Act shall be available only for assistance 
in those countries in Africa which have suffered during 
calendar years 1984 and 1985 from exceptional food supply 
problems due to drought and other calamities.
    [(b) ``Hickenlooper Amendment''.--Assistance may be 
provided with funds authorized to be appropriated by this Act 
without regard to section 602(e)(1) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2370(e)(1)).
    [(c) Ensuring That Assistance Reaches Intended 
Recipients.--The President shall ensure that adequate 
procedures have been established so that assistance pursuant to 
this Act is provided to the famine victims for whom it is 
intended.

[SEC. 6. REPORTS ON AFRICAN FAMINE ASSISTANCE.

    [(a) Report on United States Contribution to Meet Emergency 
Needs.--
            [(1) Requirement for report.--Not later than June 
        30, 1985, the President shall report to the Congress 
        with respect to the United States contribution to meet 
        emergency needs, including food needs, for African 
        famine assistance.
            [(2) Information to be included in report.--The 
        report required by this subsection shall describe--
                    [(A) the emergency needs, including food 
                needs, for African famine assistance that are 
                identified by the President's Interagency Task 
                Force on the African Food Emergency, private 
                and voluntary organizations active in famine 
                relief, the United Nations Office for Emergency 
                Operations in Africa, the United Nations Food 
                and Agriculture Organization, the World Food 
                Program, and such other organizations as the 
                President considers appropriate; and
                    [(B) the projected fiscal year 1985 
                contribution by the United States Government to 
                meet an appropriate share of those needs 
                referred to in subparagraph (A).
    [(b) Report on Assistance Provided Pursuant to This Act.--
            [(1) Requirement for report.--Not later than 
        September 30, 1985, the President shall report to the 
        Congress on the assistance provided pursuant to this 
        Act.
            [(2) Information to be included in report.--
                    [(A) Use of funds.--The report pursuant to 
                this subsection shall describe the uses, by the 
                Agency for International Development and by the 
                Department of State, of the funds authorized to 
                be appropriated by this Act, including--
                            [(i) a description of each project 
                        or program supported with any of those 
                        funds, and the amount allocated to it;
                            [(ii) the identity of each private 
                        and voluntary organization or 
                        international organization receiving 
                        any of those funds, and the amount of 
                        funds each received;
                            [(iii) the amount of those funds 
                        used for assistance to each country;
                            [(iv) the amount of those funds, if 
                        any, which will not have been obligated 
                        as of September 30, 1985; and
                            [(v) a list of any projects or 
                        programs supported with those funds 
                        which are not expected to be completed 
                        as of December 31, 1985.]
                              ----------                              


INTERNATIONAL SECURITY AND DEVELOPMENT ASSISTANCE AUTHORIZATION ACT OF 
                                  1983

   JOINT RESOLUTION Making further continuing appropriations for the 
                           fiscal year 1984.

    Resolved by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the 
following sums are hereby appropriated, out of any money in the 
Treasury not otherwise appropriated, and out of applicable 
corporate or other revenues, receipts, and funds, for the 
several departments, agencies, corporations, and other 
organizational units of the Government for the fiscal year 
1984, and for other purposes, namely:
    Sec. 101. (a) * * *
    (b)(1) * * *
    [(2) Section 101(b)(2) of this joint resolution may be 
cited as the ``International Security and Development 
Assistance Authorizations Act of 1983''.

                    [authorization of appropriations

    [There is authorized to be appropriated to the President 
$1,315,000,000 for the fiscal year 1984 to carry out section 23 
of the Arms Export Control Act. The total principal amount of 
loans guaranteed under section 24(a) of the Arms Export Control 
Act shall not exceed $4,446,500,000 for the fiscal year 1984.
    [There are authorized to be appropriated for the fiscal 
year 1984 the following amounts to carry out the following 
provisions of the Foreign Assistance Act of 1961:
            [(1) $725,213,000 to carry out section 103.
            [(2) $244,600,000 to carry out section 104(b).
            [(3) $133,400,000 to carry out section 104(c).
            [(4) $121,477,000 to carry out section 105.
            [(5) $160,000,000 to carry out section 106.
            [(6) $103,000,000 to carry out section 121.
            [(7) $30,000,000 to carry out section 214.
            [(8) $266,214,000 to carry out chapter 3 of part I.
            [(9) $47,000,000 to carry out section 481.
            [(10) $25,000,000 to carry out section 491.
            [(11) $3,074,000,000 to carry out chapter 4 of part 
        II.
            [(12) $639,700,000 to carry out section 503.
            [(13) $56,452,000 to carry out chapter 5 of part 
        II.
            [(14) $46,200,000 to carry out chapter 6 of part 
        II.
            [(15) $22,000,000 to carry out section 661.
            [(16) $370,000,000 to carry out section 667.
    [There is authorized to be appropriated to the President to 
carry out the African Development Foundation Act $3,000,000 for 
the fiscal year 1984.
    [There is authorized to be appropriated to carry out the 
Peace Corps Act $116,000,000 for fiscal year 1984.
    [Section 10 of Public Law 91-672 and section 15(a) of the 
State Department Basic Authorities Act of 1956 shall not apply 
with respect to funds appropriated for ``Migration and Refugee 
Assistance'' or for the Inter-American Foundation by the joint 
resolution of October 1, 1983 (Public Law 98-107), as amended 
by this joint resolution.

                    [assistance for israel and egypt

    [Section 31(b)(3) of the Arms Export Control Act is amended 
to read as follows:
    [``(3) Of the aggregate total of credits (or participations 
in credits) extended under section 23 of this Act and of the 
total principal amount of loans guaranteed under section 24(a) 
of this Act, not less than $1,700,000,000 for the fiscal year 
1984 shall be available only for Israel, of which not less than 
$850,000,000 shall be credits under section 23. Of the total 
aggregate credit ceiling made available to Israel, up to 
$300,000,000 shall be made available for research and 
development activities in the United States and $250,000,000 
shall be made available for the procurement of defense articles 
and defense services in Israel for the Lavi program.''.
    [Section 31(c) of such Act is amended--
            [(a) in the first sentence by striking out ``for 
        the fiscal year 1982 and for the fiscal year 1983'' and 
        inserting in lieu thereof ``for the fiscal year 1984''; 
        and
            [(b) in the last sentence--
                    [(1) by striking out ``$550,000,000'' and 
                inserting in lieu thereof ``$850,000,000 for 
                the fiscal year 1984''; and
                    [(2) by striking out ``for each such 
                year''.
    [Section 31(b)(6) of such Act is amended to read as 
follows:
    [``(6) Of the total amounts of credits (or participations 
in credits) extended under section 23 of this Act, not less 
than $465,000,000 for the fiscal year 1984 shall be available 
only for Egypt, and Egypt shall be released from its 
contractual liability to repay the United States Government 
with respect to such credits (and participations in credits). 
Of the total principal amount of loans guaranteed under section 
24(a) of this Act, not less than $900,000,000 for the fiscal 
year 1984 shall be available only for Egypt.''.
            [Section 31(b)(5) of such Act is amended by 
        striking out ``for the fiscal year 1982 and for the 
        fiscal year 1983'' and inserting in lieu thereof ``for 
        the fiscal year 1984''.
            [Section 532 of the Foreign Assistance Act of 1961 
        is amended to read as follows:
            [``Sec. 532. Earmarking for Israel and Egypt.--Of 
        the funds authorized to be appropriated to carry out 
        this chapter for the fiscal year 1984, not less than 
        $910,000,000 shall be available only for Israel and not 
        less than $750,000,000 shall be available only for 
        Egypt.''.

           [conditions on military assistance for el salvador

    [Not more than 70 percent of the amount made available for 
the fiscal year 1984 for military assistance for El Salvador 
under chapters 2 and 5 of part II of the Foreign Assistance Act 
of 1961 and under the Arms Export Control Act may be expended 
until--
            [(1) Salvadoran authorities have substantially 
        concluded all investigative actions in the case of the 
        National Guardsmen charged with murder in the deaths of 
        the four United States churchwomen in December 1980 
        that were set forth in communications from the 
        Department of State (including the letters dated July 8 
        and September 23, 1983); and
            [(2) Salvadoran authorities have brought the 
        accused to trial and have obtained a verdict.
    [Not more than 90 percent of the amount made available for 
the fiscal year 1984 for military assistance for El Salvador 
under chapters 2 and 5 of part II of the Foreign Assistance Act 
of 1961 and under the Arms Export Control Act may be expended 
until the President has determined and certified to the 
Congress that--
            [(1) the Government of El Salvador has not taken 
        any action which would alter, suspend, or terminate the 
        land reform program for phase I or phase III 
        promulgated under Decree 154 (dated March 5, 1980) or 
        Decree 207 (dated April 28, 1980) in a manner 
        detrimental to the rights of the beneficiaries or the 
        potential beneficiaries under those decrees; and
            [(2) the Government of El Salvador continues to 
        make documented progress on implementing the land 
        reform program.

                          [minority set-aside

    [Except to the extent that the Administrator of the Agency 
for International Development determines otherwise, not less 
than 10 percent of the aggregate of the funds made available 
for the fiscal year 1984 to carry out chapter 1 of part I of 
the Foreign Assistance Act of 1961 shall be made available only 
for activities of economically and socially disadvantaged 
enterprises (within the meaning of section 133(c)(5) of the 
International Development and Food Assistance Act of 1977), 
historically Black colleges and universities, and private and 
voluntary organizations which are controlled by individuals who 
are Black Americans, Hispanic Americans, or Native Americans, 
or who are economically and socially disadvantaged (within the 
meaning of section 133(c)(5) (B) and (C) of the International 
Development and Food Assistance Act of 1977). For purposes of 
this section, economically and socially disadvantaged 
individuals shall be deemed to include women.

                       [minority resource center

    [None of the funds authorized to be appropriated for the 
fiscal year 1984 to carry out the Foreign Assistance Act of 
1961 may be used to eliminate the Minority Resource Center as a 
separate and distinct entity within the Agency for 
International Development, including implementation of a 
consolidation of the Minority Resource Center with the Office 
of Small and Disadvantaged Business Utilization under section 
133(c)(8) of the International Development and Food Assistance 
Act of 1977.

  [promoting the development of the haitian people and providing for 
                     orderly emigration from Haiti

    [It is the sense of the Congress that for the fiscal year 
1984 up to $24,000,000 of the funds available to carry out 
chapter 1 of part I of the Foreign Assistance Act of 1961, and 
up to $10,000,000 of the funds available to carry out chapter 4 
of part II of such Act, should be made available for 
development assistance for Haiti, subject to the limitation 
contained in the third paragraph of this heading.
    [To the maximum extent practicable, assistance for Haiti 
under chapter 1 of part I and under chapter 4 of part II of the 
Foreign Assistance Act of 1961 should be provided through 
private and voluntary organizations.
    [Funds available for fiscal year 1984 to carry out chapter 
1 of part I or chapter 2, 4, or 5 of part II of the Foreign 
Assistance Act of 1961 may be obligated for Haiti, and credits 
may be extended and guarantees may be issued under the Arms 
Export Control Act for Haiti, only if the President determines 
that the Government of Haiti--
            [(1) is continuing to cooperate with the United 
        States in halting illegal emigration to the United 
        States from Haiti;
            [(2) is cooperating fully in implementing United 
        States development, food, and other economic assistance 
        programs in Haiti (including programs for prior fiscal 
        years); and
            [(3) is making a concerted and significant effort 
        to improve the human rights situation in Haiti by 
        implementing the political reforms which are essential 
        to the development of democracy in Haiti, including the 
        establishment of political parties, free elections, and 
        freedom of the press.
    [Six months after the date of enactment of this section, 
the President shall report to the Congress on the extent to 
which the actions of the Government of Haiti are consistent 
with each numbered provision contained in the third paragraph 
of this heading.
    [Notwithstanding the limitation of section 660 of the 
Foreign Assistance Act of 1961, funds made available under such 
Act for the fiscal year 1984 may be used for programs with 
Haiti, which shall be consistent with prevailing United States 
refugee policies, to assist in halting significant illegal 
emigration from Haiti to the United States.

                     [private sector revolving fund

    [The amendment contained in section 407 of H.R. 2992, as 
reported by the Committee on Foreign Affairs of the House of 
Representatives on May 17, 1983, is hereby enacted.

                   [antiterrorism assistance program

    [The amendments contained in title II of H.R. 2992, as 
reported by the Committee on Foreign Affairs of the House of 
Representatives on May 17, 1983, are hereby enacted, except 
that, for purposes of such enactment, section 575 of the 
Foreign Assistance Act of 1961 shall read as follows:
    [``Sec. 575. Appropriations.--There is authorized to be 
appropriated to the President to carry out this chapter 
$5,000,000 for the fiscal year 1984. Amounts appropriated under 
this section are authorized to remain available until 
expended.''.]
                              ----------                              


                LEBANON EMERGENCY ASSISTANCE ACT OF 1983

                              [short title

    [Section 1. This Act may be cited as the ``Lebanon 
Emergency Assistance Act of 1983''.

                         [economic support fund

    [Sec. 2. (a) It is hereby determined that the national 
interests of the United States would be served by the 
authorization and appropriation of additional funds for 
economic assistance for Lebanon in order to promote the 
economic and political stability of that country and to support 
the international effort to strengthen a sovereign and 
independent Lebanon.
    [(b) Accordingly, in addition to amounts otherwise 
authorized to be appropriated for the fiscal year 1983 to carry 
out the provisions of chapter 4 of part II of the Foreign 
Assistance Act of 1961, there are authorized to be appropriated 
$150,000,000 to carry out such provisions with respect to 
Lebanon.
    [(c) Amounts authorized by this section may be appropriated 
in an appropriation Act for any fiscal year (including a 
continuing resolution) and shall continue to be available 
beyond the fiscal year notwithstanding any provision of that 
appropriation Act to the contrary.

                  [military sales and related programs

    [Sec. 3. (a) In order to support the rebuilding of the 
armed forces of Lebanon, the Congress finds that the national 
security interests of the United States would be served by the 
authorization and appropriation of additional funds to provide 
training for the Lebanese armed forces and by the authorization 
of additional foreign military sales guaranties to finance 
procurements by Lebanon of defense articles and defense 
services for its security requirements.
    [(b) In addition to amounts otherwise made available for 
the fiscal year 1983 to carry out the provisions of chapter 5 
of part II of the Foreign Assistance Act of 1961, there are 
authorized to be appropriated for the fiscal year 1983 
$1,000,000 to carry out such provisions with respect to 
Lebanon.
    [(c) In addition to amounts otherwise made available for 
the fiscal year 1983 for loan guaranties under section 24(a) of 
the Arms Export Control Act, $100,000,000 of loan principal are 
authorized to be so guaranteed during such fiscal year for 
Lebanon.

                 [united states armed forces in lebanon

    [Sec. 4. (a) The President shall obtain statutory 
authorization from the Congress with respect to any substantial 
expansion in the number or role in Lebanon of United States 
Armed Force, including any introduction of United States Armed 
Forces into Lebanon in conjunction with agreements providing 
for the withdrawal of all foreign troops from Lebanon and for 
the creation of a new multinational peace-keeping force in 
Lebanon.
    [(b) Nothing in this section is intended to modify, limit, 
or suspend any of the standards and procedures prescribed by 
the War Powers Resolution of 1973.]
                              ----------                              


     INTERNATIONAL SECURITY AND DEVELOPMENT COOPERATION ACT OF 1981

 AN ACT To authorize appropriations for the fiscal years 1982 and 1983 
for international security and development assistance and for the Peace 
 Corps, to establish the Peace Corps as an autonomous agency, and for 
                             other purposes

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

                              short title

    Section 1. This Act may be cited as the ``International 
Security and Development Cooperation Act of 1981''.

             [TITLE I--MILITARY SALES AND RELATED PROGRAMS

                        [reports to the congress

    [Sec. 101. (a)(1) Section 3(d)(1) of the Arms Export 
Control Act is amended--
            [(A) in the text preceding subparagraph (A) by 
        striking out ``to a transfer of a defense article, or 
        related training or other defense service, sold under 
        this Act and may not give his consent to such a 
        transfer under section 505(a)(1) or 505(a)(4) of the 
        Foreign Assistance Act of'' and inserting inlieu 
        thereof ``, or under section 505(a)(1) or 505(a)(4) of 
        the Foreign Assistance Act of 1961, to a transfer of 
        any major defense equipment valued (in terms of its 
        original acquisition cost) at $14,000,000 or more, or 
        any defense article or related training or other 
        defense service valued (in terms of its original 
        acquisition cost) at $50,000,000 or more,'';
            [(B) by amending subparagraph (B) to read as 
        follows:
            [``(B) a description of the article or service 
        proposed to be transferred, including its acquisition 
        cost,'';
            [(C) in subparagraph (C) by striking out ``defense 
        article or related training or other defense service'' 
        and inserting in lieu thereof ``article or service''; 
        and
            [(D) in the last sentence by striking out ``defense 
        articles, or related training or other defense 
        services,'' and inserting in lieu thereof ``articles or 
        services''.
    [(2) Section 3(d)(3) of such Act is amended by striking out 
all that follows ``The President may not give his consent'' 
through ``section 38 of this Act,'' and inserting in lieu 
thereof ``to the transfer of any major defense equipment valued 
(in terms of its original acquisition cost) at $14,000,000 or 
more, or any defense article or defense service valued (in 
terms of its original acquisition cost) at $50,000,000 or more, 
the export of which has been licensed or approved under section 
38 of this Act,''.
    [(3) Section 3(d)(4) of such Act is amended--
            [(A) by inserting ``or'' at the end of subparagraph 
        (B);
            [(B) by striking out ``; or'' at the end of 
        subparagraph (C) and inserting in lieu thereof a 
        period; and
            [(C) by striking out subparagraph (D).
    [(b)(1) Section 28(a) of such Act is amended by striking 
out ``five'' and inserting in lieu thereof ``fifteen''.
    [(2) Section 28(b) of such Act is amended by striking out 
``the issuance of a letter of offer in accordance with such 
request would be subject to the requirements of section 36(b) 
of this Act'' and inserting in lieu thereof ``the request 
involves a proposed sale of major defense equipment for 
$7,000,000 or more or of any other defense articles or defense 
services for $25,000,000 or more''.
    [(c) The first sentence of section 36(b)(1) of such Act is 
amended--
            [(1) by striking out ``$25,000,000'' and inserting 
        in lieu thereof ``$50,000,000''; and
            [(2) by striking out ``$7,000,000'' and inserting 
        in lieu thereof ``$14,000,000''.
    [(d) Section 36(c) of such Act is amended in the first 
sentence of paragraph (1)--
            [(1) by striking out ``$7,000,000'' and inserting 
        in lieu thereof ``$14,000,000''; and
            [(2) by striking out ``$25,000,000'' and inserting 
        in lieu thereof ``$50,000,000''.
    [(e) Section 36(d) of such Act is amended by striking out 
``(c)'' and inserting in lieu thereof ``(c)(1)''.

[proposed transfers or sales to the north atlantic treaty organization, 
                    japan, australia, or new zealand

    [Sec. 102. (a) Section 3(d)(2) of the Arms Export Control 
Act is amended--
            [``(1) by striking out ``(2) Unless'' and inserting 
        in lieu thereof ``(2)(A) Except as provided in 
        subparagraph (B), unless''; and
            [``(2) by adding at the end thereof the following:
    [``(B) In the case of a proposed transfer to the North 
Atlantic Treaty Organization, or any member country of such 
Organization, Japan, Australia, or New Zealand, unless the 
president states in the certification submitted pursuant to 
paragraph (1) of this subsection that an emergency exists which 
requires that consent to the proposed transfer become effective 
immediately in the national security interests of the United 
States, such consent shall not become effective until fifteen 
calendar days after the date of such submission and such 
consent shall become effective then only if the Congress does 
not adopt, within such fifteen-day period, a concurrent 
resolution disapproving the proposed transfer.''.
    [(b)(1) Section 36(b)(1) of such Act is amended in the 
fifth sentence by striking out ``if the Congress, within thirty 
calendar days after receiving such certification,'' and 
inserting in lieu thereof the following: ``, with respect to a 
proposed sale to the North Atlantic Treaty Organization, any 
member country of such Organization, Japan, Australia, or New 
Zealand, if the Congress, within fifteen calendar days after 
receiving such certification, or with respect to a proposed 
sale to any other country or organization, if the Congress 
within thirty calendar days after receiving such 
certification,''.
    [(2) Section 36(b)(2) of such Act is amended by inserting 
before the period at the end thereof a comma and the following: 
``except that for purposes of consideration of any resolution 
with respect to the North Atlantic Treaty Organization, any 
member country of such Organization, Japan, Australia, or New 
Zealand, it shall be in order in the Senate to move to 
discharge a committee to which such resolution was referred if 
such committee has not reported such resolution at the end of 
five calendar days after its introduction''.

                 [personnel performing defense services

    [``Sec. 103. Section 21(c)(2) of the Arms Export Control 
Act is amended to read as follows:
    [``(2) Within forty-eight hours of the existence of, or a 
change in status of significant hostilities or terrorist acts 
or a series of such acts, which may endanger American lives or 
property, involving a country in which United States personnel 
are performing defense services pursuant to this Act or the 
Foreign Assistance Act of 1961, the President shall submit to 
the Speaker of the House of Representatives and to the 
President pro tempore of the Senate a report, in writing, 
classified if necessary, setting forth--
            [``(A) the identity of such country;
            [``(B) a description of such hostilities or 
        terrorist acts; and
            [``(C) the number of members of the United States 
        Armed Forces and the number of United States civilian 
        personnel that may be endangered by such hostilities or 
        terrorist acts.''.

[charges for use and nonrecurring research, development, and production 
                                 costs

    [Sec. 104. Section 21(e)(2) of the Arms Export Control Act 
is amended by inserting ``standardization with the Armed Forces 
of Japan, Australia, or New Zealand in furtherance of the 
mutual defense treaties between the United States and those 
countries,'' immediately after ``standardization,''.

      [foreign military sales authorization and aggregate ceilings

    [Sec. 105. (a) Section 31(a) of the Arms Export Control Act 
is amended by striking out ``$500,000,000 for the fiscal year 
1981'' and inserting in lieu thereof ``$800,000,000 for the 
fiscal year 1982 and $800,000,000 for the fiscal year 1983''.
    [(b) Section 31(b) of such Act is amended to read as 
follows:
    [``(b)(1) The total amount of credits (or participations in 
credits) extended under section 23 of this Act shall not exceed 
$800,000,000 for the fiscal year 1982 and $800,000,000 for the 
fiscal year 1983.
    [``(2) The total principal amount of loans guaranteed under 
section 24(a) of this Act shall not exceed $3,269,525,000 for 
the fiscal year 1982 and $3,269,525,000 for the fiscal year 
1983.
    [``(3) Of the aggregate total of credits (or participations 
in credits) under section 23 of this Act, and of the total 
principal amount of loans guaranteed under section 24(a) of 
this Act, not less than $1,400,000,000 for the fiscal year 1982 
and not less than $1,400,000,000 for the fiscal year 1983 shall 
be available only for Israel, of which not less than 
$550,000,000 for each such year shall be available as credits 
under section 23 of this Act.
    [``(4) Of the amount available under paragraph (2) of this 
subsection for loan guaranties under section 24(a) of this Act, 
not less than $280,000,000 for fiscal year 1982 and not less 
than $280,000,000 for the fiscal year 1983 shall be available 
only for Greece.
    [``(5) The principal amount of loans guaranteed under 
section 24(a) of this Act for the fiscal year 1982, and for the 
fiscal year 1983 with respect to Egypt, Greece, Sudan, Somalia, 
and Turkey shall (if and to the extent each such country so 
desires) be repaid in not more than twenty years, following a 
grace period of ten years on repayment of principal.
    [``(6) Of the total amount of credits (or participations in 
credits) extended under section 23 of this Act for the fiscal 
years 1982 and 1983, not less than $200,000,000 for each such 
year shall be available only for Egypt, and Egypt shall be 
released from its contractual liability to repay the United 
States Government with respect to such credits and 
participations in credits.
    [``(7) Of the total amount of credits (or participations in 
credits) extended under section 23 of this Act for the fiscal 
years 1982 and 1983, not less than $50,000,000 for each such 
year shall be available only for the Sudan, and the Sudan shall 
be released from its contractual liability to repay the United 
States Government with respect to such credits and 
participations in credits,''.
    [(c) Section 31(c) of such Act is amended--
            [(1) in the first sentence by striking out ``fiscal 
        year 1981'' and inserting in lieu thereof ``fiscal year 
        1982 and for the fiscal year 1983'';
            [(2) in the last sentence by striking out 
        ``$500,000,000'' and inserting in lieu thereof 
        ``$550,000,000''; and
            [(3) in the last sentence by inserting ``each'' 
        immediately before ``such year''.

                 [repeal of ceiling on commercial sales

    [Sec. 106. Section 38(b)(3) of the Arms Export Control Act 
is repealed.

            [periodic review of items on the munitions list

    [Sec. 107. Section 38 of the Arms Export Control Act is 
amended by adding at the end thereof the following new 
subsection:
    [``(f) The President shall periodically review the items on 
the United States Munitions List to determine what items, if 
any, no longer warrant export controls under this section. The 
results of such reviews shall be reported to the Speaker of the 
House of Representatives and to the Committee on Foreign 
Relations and the Committee on Banking, Housing, and Urban 
Affairs of the Senate. Such a report shall be submitted at 
least 30 days before any item is removed from the Munitions 
List and shall describe the nature of any controls to be 
imposed on that item under the Export Administration Act of 
1979.''.

                   [special defense acquisition fund

    [Sec. 108. (a) The Arms Export Control Act is amended by 
adding at the end thereof the following new chapter:

             [``CHAPTER 5--SPECIAL DEFENSE ACQUISITION FUND

    [``Sec. 51. Special Defense Acquisition Fund.--(a)(1) Under 
the direction of the President and in consultation with the 
Secretary of State, the Secretary of Defense shall establish a 
Special Defense Acquisition Fund (hereafter in this chapter 
referred to as the `Fund'), to be used as a revolving fund 
separate from other accounts, under the control of the 
Department of Defense, to finance the acquisition of defense 
articles and defense service in anticipation of their transfer 
pursuant to this Act, the Foreign Assistance Act of 1961, or as 
otherwise authorized by law, to eligible foreign countries and 
international organizations, and may acquire such articles and 
services with the funds in the Fund as he may determine. 
Acquisition under this chapter of items for which the initial 
issue quantity requirements for United States Armed Forces have 
not been fulfilled and are not under current procurement 
contract shall be emphasized when compatible with security 
assistance requirements for the transfer of such items.
    [``(2) Nothing in this chapter may be construed to limit or 
impair any responsibilities conferred upon the Secretary of 
State or the Secretary of Defense under this Act or the Foreign 
Assistance Act of 1961.
    [``(b) The Fund shall consist of--
            [``(1) collections from sales made under letters of 
        offer issued pursuant to section 21(a)(1) of this Act 
        representing the actual value of defense articles not 
        intended to be replaced in stock,
            [``(2) collections from sales representing the 
        value of asset use charges (including contractor rental 
        payments for United States Government-owned plant and 
        production equipment) and charges for the proportionate 
        recoupment of nonrecurring research, development, and 
        production costs, and
            [``(3) collections from sales made under letters of 
        offer (or transfers made under the Foreign Assistance 
        Act of 1961) of defense articles and defense services 
        acquired under this chapter, representing the value of 
        such items calculated in accordance with paragraph (2) 
        or (3) of section 21(a) or section 22 of this Act or 
        section 644(m) of the Foreign Assistance Act of 1961, 
        as appropriate,
together with such funds as may be authorized and appropriated 
or otherwise made available for the purposes of the Fund.
    [``(c)(1) The size of the Fund may not exceed such dollar 
amount as is prescribed in section 138(g) of title 10, United 
States Code. For purposes of this limitation, the size of the 
Fund is the amounts in the Fund plus the value (in terms of 
acquisition cost) of the defense articles acquired under this 
chapter which have not been transferred from the Fund in 
accordance with this chapter.
    [``(2) Amounts in the Fund shall be available for 
obligation in any fiscal year only to such extent or in such 
amounts as are provided in advance in appropriation Acts.
    [``Sec. 52. Use and Transfer of Items Procured by the 
Fund.--(a) No defense article or defense service acquired by 
the Secretary of Defense under this chapter may be transferred 
to any foreign country or international organization unless 
such transfer is authorized by this Act, the Foreign Assistance 
Act of 1961, or other law.
    [``(b) The President may authorize the temporary use by the 
United States Armed Forces of defense articles and defense 
services acquired under this chapter prior to their transfer to 
a foreign country or international organization, if such is 
necessary to meet national defense requirements and the United 
States Armed Forces bear the costs of operation and maintenance 
of such articles or services while in their use and the costs 
of restoration or replacement upon the termination of such use.
    [``(c) Except as provided in subsection (b) of this 
section, the Fund may be used to pay for storage, maintenance, 
and other costs related to the preservation and preparation for 
transfer of defense articles and defense services acquired 
under this chapter prior to their transfer, as well as the 
administrative costs of the Department of Defense incurred in 
the acquisition of such items to the extent not reimbursed 
pursuant to section 43(b) of this Act.
    [``Sec. 53. Annual Reports to Congress.--(a) Not later than 
December 31 of each year, the President shall submit to the 
Congress a comprehensive report on acquisitions of defense 
articles and defense services under this chapter. Each such 
report shall include--
            [``(1) a description of each contract for the 
        acquisition of defense articles or defense services 
        under this chapter which was entered into during the 
        preceding fiscal year;
            [``(2) a description of each contract for the 
        acquisition of defense articles or defense services 
        under this chapter which the President anticipates will 
        be entered into during the current fiscal year;
            [``(3) a description of each defense article or 
        defense service acquired under this chapter which was 
        transferred to a foreign country or international 
        organization during the preceding fiscal year; and
            [``(4) an evaluation of the impact of the 
        utilization of the authority of this chapter of United 
        States defense production and the readiness of the 
        United States Armed Forces.
    [(b) As part of the annual written report to the Congress 
required by section 139(a) of title 10, United States Code, 
regarding procurement schedules for each weapon system for 
which funding authorization is required, the President shall 
provide a report estimating the likely procurements to be made 
through the Fund.''.
    [(b) Section 138 of title 10, United States Code, is 
amended by adding immediately following subsection (f) the 
following new subsection:
    [(g) The size of the Special Defense Acquisition Fund 
established pursuant to chapter 5 of the Arms Export Control 
Act may not exceed $300,000,000 in fiscal year 1982, may not 
exceed $600,000,000 in fiscal year 1983, and may not exceed 
$900,000,000 in fiscal year 1984 or any fiscal year 
thereafter.''.

                      [leasing of defense articles

    [Sec. 109. (a) The Arms Export Control Act, as amended by 
section 108 of this Act, is further amended by adding at the 
end thereof the following new chapter:

                [``CHAPTER 6--LEASES OF DEFENSE ARTICLES

    [``Sec. 61. Leasing Authority.--(a) The President may lease 
defense articles in the stocks of the Department of Defense to 
an eligible foreign country or international organization if--
            [``(1) he determines that there are compelling 
        foreign policy and national security reasons for 
        providing such articles on a lease basis rather than on 
        a sales basis under this Act;
            [``(2) he determines that the articles are not for 
        the time needed for public use; and
            [``(3) the country or international organization 
        has agreed to pay in United States dollars all costs 
        incurred by the United States Government in leasing 
        such articles, including reimbursement for depreciation 
        of such articles while leased, the costs of restoration 
        or replacement if the articles are damaged while 
        leased, and the replacement cost (less any depreciation 
        in the value) of the articles if the articles are lost 
        or destroyed while leased.
The requirement of paragraph (3) shall not apply to leases 
entered into for purposes of cooperative research or 
development, military exercises, or communications or 
electronics interface projects, or to any defense article which 
has passed three-quarters of its normal service life.
    [``(b) Each lease agreement under this section shall be for 
a fixed duration of not to exceed five years and shall provide 
that, at any time during the duration of the lease, the 
President may terminate the lease and require the immediate 
return of the leased articles.
    [``(c) Defense articles in the stocks of the Department of 
Defense may be leased or loaned to a foreign country or 
international organization only under the authority of this 
chapter or chapter 2 of part II of the Foreign Assistance Act 
of 1961, and may not be leased to a foreign country or 
international organization under the authority of section 2667 
of title 10, United States Code.
    [``Sec. 62. Reports to the Congress.--(a) Not less than 30 
days before entering into or renewing any agreement with a 
foreign country or international organization to lease any 
defense article under this chapter, or to loan any defense 
article under chapter 2 of part II of the Foreign Assistance 
Act of 1961, for a period of one year or longer, the President 
shall transmit to the Speaker of the House of Representatives, 
and to the chairman of the Committee on Foreign Relations of 
the Senate and the chairman of the Committee on Armed Services 
of the Senate, a written certification which specifies--
            [``(1) the country or international organization to 
        which the defense article is to be leased or loaned;
            [``(2) the type, quantity, and value (in terms of 
        replacement cost) of the defense article to be leased 
        or loaned;
            [``(3) the terms and duration of the lease or loan; 
        and
            [``(4) a justification for the lease or loan, 
        including an explanation of why the defense article is 
        being leased or loaned rather than sold under this Act.
    [``(b) The President may waive the requirements of this 
section (and in the case of an agreement described in section 
63, may waive the provisions of that section) if he determines, 
and immediately reports to the Congress, that an emergency 
exists which requires that the lease or loan be entered into 
immediately in the national security interests of the United 
States.
    [``Sec. 63. Legislative Review.--(a)(1) In the case of any 
agreement involving the lease under this chapter, or the loan 
under chapter 2 of part II of the Foreign Assistance Act of 
1961, to any foreign country or international organization for 
a period of one year or longer of any defense articles which 
are either (i) major defense equipment valued (in terms of its 
replacement cost less any depreciation in its value) at 
$14,000,000 or more, or (ii) defense articles valued (in terms 
of their replacement cost less any depreciation in their value) 
at $50,000,000 or more, the agreement may not be entered into 
or renewed if the Congress, within 30 calendar days after 
receiving the certification with respect to that proposed 
agreement pursuant to section 62(a), adopts a concurrent 
resolution stating that it objects to the proposed lease or 
loan.
    [``(2) This section shall not apply with respect to a loan 
or lease to the North Atlantic Treaty Organization, any member 
country of that Organization, Japan, Australia, or New Zealand.
    [``(b) Any resolution under subsection (a) shall be 
considered in the Senate in accordance with the provisions of 
section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
    [``(c) For the purpose of expediting the consideration and 
adoption of concurrent resolutions under subsection (a), a 
motion to proceed to the consideration of any such resolution 
after it has been reported by the appropriate committee shall 
be treated as highly privileged in the House of 
Representatives.
    [``Sec. 64. Application of Other Provisions of Law.--Any 
reference to sales of defense articles under this Act in any 
provision of law restricting the countries or organizations to 
which such sales may be made shall be deemed to include a 
reference to leases of defense articles under this chapter.''.
    [(b) Such Act is further amended--
            [(1) in section 2(b)--
                    [(A) by inserting ``, leases,'' immediately 
                after ``sales'' both places it appears,
                    [(B) by inserting ``whether there shall be 
                a lease to a country,'' immediately after 
                ``thereof,'', and
                    [(C) by inserting ``, lease,'' immediately 
                after ``sale'' the second place it appears;
            [(2) in section 3(a)--
                    [(A) in the text preceding paragraph (1) by 
                inserting ``or leased'' immediately after 
                ``sold'', and
                    [(B) in paragraph (4) by inserting ``or 
                lease'' immediately after ``purchase''; and
            [(3) in section 4 by inserting ``or leased'' 
        immediately after ``sold'' in the first sentence.
    [(c) Paragraph (5) of section 503(b) of the Foreign 
Assistance Act of 1961 is amended to read as follows:
            [``(5) the loan agreement provides that (A) if the 
        defense article is damaged while on loan, the country 
        or international organization to which it was loaned 
        will reimburse the United States for the cost of 
        restoring or replacing the defense article, and (B) if 
        the defense article is lost or destroyed while on loan, 
        the country or international organization to which it 
        was loaned will pay to the United States an amount 
        equal to the replacement cost (less any depreciation in 
        the value) of the defense article.''.
    [(d)(1) Section 109 of the International Security and 
Development Cooperation Act of 1980 is repealed.
    [(2) Section 36(a) of the Arms Export Control Act is 
amended--
            [(A) by inserting ``and'' at the end of paragraph 
        (8);
            [(B) by striking out ``; and'' at the end of 
        paragraph (9) and inserting in lieu thereof a period; 
        and
            [(C) by striking out paragraph (10).

                          [military assistance

    [Sec. 110. (a) Section 504(a) of the Foreign Assistance Act 
of 1961 is amended to read as follows:
    [``(a)(1) There are authorized to be appropriated to the 
President to carry out the purposes of this chapter not to 
exceed $238,500,000 for the fiscal year 1982 and not to exceed 
$238,500,000 for the fiscal year 1983.
    [``(2) Amounts appropriated under this subsection are 
authorized to remain available until expended.''.
    [(b) Section 506(a) of such Act is amended by striking out 
``$50,000,000'' and inserting in lieu thereof ``$75,000,000''.
    [(c) Section 503(a)(3) of such Act is amended by striking 
out ``specified in section 504(a)(1) of this Act, within the 
dollar limitations of that section,'' and inserting in lieu 
thereof ``country,''.
    [(d) Section 516 of such Act is repealed.

         [stockpiling of defense articles for foreign countries

    [Sec. 111. Section 514(b)(2) of the Foreign Assistance Act 
of 1961 is amended by striking out ``$85,000,000 for the fiscal 
year 1981'' and inserting in lieu thereof ``$130,000,000 for 
the fiscal year 1982 and $125,000,000 for the fiscal year 
1983''.

    [international military assistance and sales program management

    [Sec. 112. Section 515 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 515. Overseas Management of Assistance and Sales 
Programs.--(a) In order to carry out his responsibilities for 
the management of international security assistance programs 
conducted under this chapter, chapter 5 of this part, and the 
Arms Export Control Act, the President may assign members of 
the Armed Forces of the United States to a foreign country to 
perform one or more of the following functions:
            [``(1) equipment and services case management;
            [``(2) training management;
            [``(3) program monitoring;
            [``(4) evaluation and planning of the host 
        government's military capabilities and requirements;
            [``(5) administrative support;
            [``(6) promoting rationalization, standardization, 
        interoperability, and other defense cooperation 
        measures among members of the North Atlantic Treaty 
        Organization and with the Armed Forces of Japan, 
        Australia, and New Zealand; and
            [``(7) liaison functions exclusive of advisory and 
        training assistance.
    [``(b) Advisory and training assistance conducted by 
military personnel assigned under this section shall be kept to 
an absolute minimum. It is the sense of the Congress that 
advising and training assistance in countries to which military 
personnel are assigned under this section shall be provided 
primarily by other personnel who are not assigned under this 
section and who are detailed for limited periods to perform 
specific tasks.
    [``(c)(1) The number of members of the Armed Forces 
assigned to a foreign country under this section may not exceed 
six unless specifically authorized by the Congress. The 
President may waive this limitation if he determines and 
reports to the Committee on Foreign Relations of the Senate and 
the Committee on Foreign Affairs of the House of 
Representatives, 30 days prior to the introduction of the 
additional military personnel, that United States national 
interests require that more than six members of the Armed 
Forces be assigned under this section to carry out 
international security assistance programs in a country not 
specified in this paragraph. For the fiscal year 1982 and the 
fiscal year 1983, Indonesia, the Republic of Korea, the 
Philippines, Thailand, Egypt, Jordan, Morocco, Saudi Arabia, 
Greece, Portugal, Spain, and Turkey are authorized to have 
military personnel strengths larger than six under this section 
to carry out international security assistance programs.
    [``(2) The total number of members of the Armed Forces 
assigned under this section to a foreign country in a fiscal 
year may not exceed the number justified to the Congress for 
that country in the congressional presentation materials for 
that fiscal year, unless the Committee on Foreign Relations of 
the Senate and the Committee on Foreign Affairs of the House of 
Representatives are notified 30 days in advance of the 
introduction of the additional military personnel.
    [``(d) Effective October 1, 1982, the entire costs 
(including salaries of United States military personnel) of 
overseas management of international security assistance 
programs under this section shall be charged to or reimbursed 
from funds made available to carry out this chapter, other than 
any such costs which are either paid directly for such defense 
services under section 21(a) of the Arms Export Control Act or 
reimbursed from charges for services collected from foreign 
governments pursuant to section 21(e) and section 43(b) of that 
Act.
    [``(e) Members of the Armed Forces assigned to a foreign 
country under this section shall serve under the direction and 
supervision of the Chief of the United States Diplomatic 
Mission to that country.
    [``(f) The President shall continue to instruct United 
States diplomatic and military personnel in the United States 
missions abroad that they should not encourage, promote, or 
influence the purchase by any foreign country of United States-
made military equipment, unless they are specifically 
instructed to do so by an appropriate official of the executive 
branch.''.

             [international military education and training

    [Sec. 113. Section 542 of the Foreign Assistance Act of 
1961 is amended by striking out ``$34,000,000 for the fiscal 
year 1981'' and inserting in lieu thereof ``$42,000,000 for the 
fiscal year 1982 and $42,000,000 for the fiscal year 1983''.

                        [peacekeeping operations

    [Sec. 114. (a) Section 552(a) of the Foreign Assistance Act 
of 1961 is amended by striking out ``$25,000,000 for the fiscal 
year 1981'' and inserting in lieu thereof ``$19,000,000 for the 
fiscal year 1982 and $19,000,000 for the fiscal year 1983''.
    [(b) Section 552(c) of such Act is amended by striking out 
``(1)'' and all that follows through ``may not be transferred'' 
and inserting in lieu thereof ``the total amount so transferred 
in any fiscal year may not exceed $15,000,000''.

   [foreign intimidation and harassment of individuals in the united 
                                 states

    [Sec. 115. Chapter 1 of the Arms Export Control Act is 
amended by adding at the end thereof the following new section:
    [``Sec. 6. Foreign Intimidation and Harassment of 
Individuals in the United States.--No letters of offer may be 
issued, no credits or guarantees may be extended, and no export 
licenses may be issued under this Act with respect to any 
country determined by the President to be engaged in a 
consistent pattern of acts of intimidation or harassment 
directed against individuals in the United States. The 
President shall report any such determination promptly to the 
Speaker of the House of Representatives and to the chairman of 
the Committee on Foreign Relations of the Senate.''.

                    [TITLE II--ECONOMIC SUPPORT FUND

                    [authorization of appropriations

    [Sec. 201. Section 531(b)(1) of the Foreign Assistance Act 
of 1961 is amended by striking out ``for the fiscal year 1981, 
$2,065,300,000'' and inserting in lieu thereof ``$2,623,500,000 
for the fiscal year 1982 and $2,723,500,000 for the fiscal year 
1983''.

                  [provisions relating to use of funds

    [Sec. 202. Chapter 4 of part II of the Foreign Assistance 
Act of 1961 is amended by striking out sections 532 and 533 and 
inserting in lieu thereof the following new sections:
    [``Sec. 532. Middle East Programs.--(a)(1) Of the funds 
authorized to be appropriated to carry out this chapter for the 
fiscal year 1982 and for the fiscal year 1983, not less than 
$785,000,000 for each such year shall be available only for 
Israel and not less than $750,000,000 for each such year shall 
be available only for Egypt. Amounts made available for Israel 
and Egypt for the fiscal year 1982 pursuant to this paragraph 
shall be in addition to the amounts made available to those 
countries pursuant to paragraph (4) of this subsection.
    [``(2) All of the funds made available to Israel and to 
Egypt under this chapter for the fiscal years 1982 and 1983 
shall be provided on a grant basis.
    [``(3) The total amount of funds allocated for Israel under 
this chapter for the fiscal year 1982 and for the fiscal year 
1983 may be made available as a cash transfer. In exercising 
the authority of this paragraph, the President shall ensure 
that the level of cash transfers made to Israel does not cause 
an adverse impact on the total amount of nonmilitary exports 
from the United States to Israel.
    [``(4) In addition to the amounts requested for Israel and 
Egypt under this chapter for the fiscal year 1982, $21,000,000 
shall be made available for Israel for the fiscal year 1982 and 
$21,000,000 shall be made available for Egypt for the fiscal 
year 1982 in order to replace the funds which were authorized 
and appropriated for those countries in the fiscal year 1981 
but which was reprogrammed in order to provide assistance for 
Liberia and El Salvador.
    [``(5) Of the amounts provided to Egypt under this chapter 
for the fiscal year 1982 and for the fiscal year 1983, up to 
$50,000,000 for each such year may be used under title XII of 
chapter 2 of part I of this Act in building agricultural 
extension services in Eygpt for the small farmer in order to 
upgrade the skills of the agricultural faculty in provincial 
universities, improve the agricultural curriculum offered and 
the equipment available in provincial universities, and 
establish a provincial university extension service with an 
outreach program which can directly reach the Egyptian small 
farmer.
    [``(b)(1) Of the funds authorized to be appropriated to 
carry out this chapter for the fiscal year 1982 and for the 
fiscal year 1983, $11,000,000 for each such year may be used 
for special requirements in the Middle East, including regional 
cooperative projects of a scientific and technological nature 
in accordance with paragraph (2) of this subsection, other 
regional programs, development programs on the West Bank and in 
Gaza, population programs, project development and support, and 
programs of participant training.
    [``(2) It is the sense of the Congress that, in order to 
continue to build the structure of peace in the Middle East, 
the United States should finance, and where appropriate 
participate in, cooperative projects of a scientific and 
technological nature involving Israel and Egypt and other 
Middle East countries wishing to participate. These cooperative 
projects should include projects in the fields of agriculture, 
health, energy, the environment, education, water resources, 
and the social sciences. Of the funds available under paragraph 
(1) of this subsection for the fiscal year 1982 and for the 
fiscal year 1983, $4,000,000 for each such year may be used in 
accordance with this paragraph for scientific and technological 
projects which will promote regional cooperation among Israel 
and Egypt and other Middle East countries.
    [``(3) The President may obligate funds under paragraph (1) 
of this subsection only if, in accordance with the established 
prenotification procedures under section 634A of this Act, he 
transmits a report to the Committee on Foreign Affairs and the 
Committee on Appropriations of the House of Representatives, 
and to the Committee on Foreign Relations and the Committee on 
Appropriations of the Senate, at least 15 days prior to such 
obligation. This report shall set forth--
            [``(A) the name of the proposed recipient of such 
        funds,
            [``(B) the amount of funds to be made available to 
        such recipient, and
            [``(C) the purpose for which such funds are to be 
        made available.
    [``(4) At the end of the fiscal year 1981, at the end of 
the fiscal year 1982, and at the end of the fiscal year 1983, 
the President shall report to the Congress on the use of funds 
under this chapter during that fiscal year for special 
requirements in the Middle East.
    [``(c) None of the funds appropriated to carry out this 
chapter for the fiscal year 1982 or the fiscal year 1983 may be 
made available to Syria.
    [``(d) It is the sense of the Congress that, of the funds 
required to be appropriated to carry out this chapter, 
$7,000,000 for the fiscal year 1982 and $7,000,000 or more for 
the fiscal year 1983 should be made available for Lebanon for 
relief and rehabilitation programs of international and private 
voluntary agencies and other not-for-profit United States 
organizations operating in Lebanon.
    [``Sec. 533. Eastern Mediterranean Programs.--(a) Not less 
than two-thirds of the funds made available to Turkey under 
this chapter for each of the fiscal years 1982 and 1983 shall 
be provided on a grant basis.
    [``(b) Of the funds authorized to be appropriated to carry 
out this chapter for the fiscal year 1982 and for the fiscal 
year 1983, $15,000,000 for each such year shall be available 
only for Cyprus. Of that amount, $5,000,000 for the fiscal year 
1982 and $10,000,000 for the fiscal year 1983 shall be for 
scholarship programs to bring Cypriots to the United States for 
education.
    [``Sec. 534. Prohibition on Use of Funds for Nuclear 
Facilities.--Funds available to carry out this chapter for the 
fiscal year 1982 and for the fiscal year 1983 may not be used 
to finance the construction of, the operation or maintenance 
of, or the supplying of fuel for, any nuclear facility in a 
foreign country unless the President certifies to the Congress 
that use of funds for such purpose is indispensable to the 
achievement of nonproliferation objectives which are uniquely 
significant and of paramount importance to the United States.
    [``Sec. 535. Emergency Assistance.--(a) Of the funds 
appropriated to carry out this chapter, up to $75,000,000 for 
the fiscal year 1982 and up to $75,000,000 for the fiscal year 
1983 may be made available for emergency use under this chapter 
when the national interests of the United States urgently 
require economic support to promote economic or political 
stability.
    [``(b) Notwithstanding any provision of this chapter or of 
an appropriations Act (including a joint resolution making 
continuing appropriations) which earmarks funds available to 
carry out this chapter for a specific country or purpose, up to 
5 percent of each amount so earmarked may be used to carry out 
this section.
    [``Sec. 536. Special Requirements Fund.--Of the amounts 
appropriated to carry out this chapter, up to $75,000,000 for 
the fiscal year 1982 may be made available as a special 
requirements fund, except that such funds may not be obligated 
unless the Committee on Foreign Relations of the Senate, the 
Committee on Foreign Affairs of the House of Representatives, 
and the Committee on Appropriations of each House of the 
Congress are notified fifteen days in advance of such 
obligation.
    [``Sec. 537. Tunisia.--Of the funds authorized to be 
appropriated to carry out this chapter for the fiscal years 
1982 and 1983, not less than $5,000,000 for each such year 
shall be available for Tunisia.
    [``Sec. 538. Costa Rica.--Of the funds authorized to be 
appropriated to carry out this chapter for the fiscal years 
1982 and 1983, not less than $15,000,000 for each such year 
shall be available only for Costa Rica for the purposes of 
economic assistance.
    [``Sec. 539. Nicaragua.--Of the funds authorized to be 
appropriated to carry out this chapter, $20,000,000 for the 
fiscal year 1982 and $20,000,000 for the fiscal year 1983 shall 
be available only for Nicaragua.''.

 [``acquisition of agricultural commodities and related products under 
                       commodity import programs

    [Sec. 203. The Congress directs the President to allocate 
at least 15 percent of the funds which are made available each 
fiscal year under this title for commodity import programs for 
use in financing the purchase of agricultural commodities and 
agricultural related products which are of United States-
origin.

                   [TITLE III--DEVELOPMENT ASSISTANCE

             [agriculture, rural development, and nutrition

    [Sec. 301. (a) The first sentence of section 103(a)(2) of 
the Foreign Assistance Act of 1961 is amended by striking out 
``$713,500,000 for the fiscal year 1981'' and inserting in lieu 
thereof ``$700,000,000 for the fiscal year 1982 and 
$700,000,000 for the fiscal year 1983, of which up to 
$1,000,000 for each such fiscal year shall be available only to 
carry out section 316 of the International Security and 
Development Cooperation Act of 1980''.
    [(b)(1) It is the sense of the Congress that the United 
States should strongly support the efforts of developing 
countries to improve infant feeding practices, in particular 
through the promotion of breast feeding. As a demonstration of 
that support, the President is authorized to use up to 
$5,000,000 of the funds made available for the fiscal year 1982 
to carry out the purposes of sections 103 and 104(c) of the 
Foreign Assistance Act of 1961 in order to assist developing 
countries establish or improve programs to encourage improved 
infant feeding practices. In carrying out this paragraph, the 
Agency for International Development should provide funds for 
necessary research to obtain better information on the precise 
nature and magnitude of problems relating to infant feeding 
practices, including the use of infant formula, in developing 
countries.
    [(2) The President shall, as part of the congressional 
presentation documentation for the fiscal years 1983 and 1984, 
include information relevant to the implementation of this 
subsection, including--
            [(A) a description of actions taken by the Agency 
        for International Development to promote breast feeding 
        and to improve supplemental infant feeding practices in 
        developing countries through funds made available in 
        this subsection and through its regular programs in the 
        fields of health, nutrition, and population activities;
            [(B) a summary of the results of studies authorized 
        by this subsection on the nature and magnitude of 
        problems in developing countries related to infant 
        feeding practices; and
            [(C) a summary of reports by member countries of 
        the World Health Organization on their actions to 
        implement the International Code of Marketing of Breast 
        Milk Substitutes.
    [(c) Section 103 of such Act is amended by adding at the 
end thereof the following new subsection:
    [``(g) In order to carry out the purposes of this section, 
the President may continue to participate in and may provide, 
on such terms and conditions as he may determine, up to 
$180,000,000 to the International Fund for Agricultural 
Development. There are authorized to be appropriated to the 
President for the purposes of this subsection $180,000,000 
except that not more than $40,500,000 may be appropriated under 
this subsection for the fiscal year 1982. Amounts appropriated 
under this subsection are authorized to remain available until 
expended.''.

                         [population and health

    [Sec. 302. (a) Section 104(g) of the Foreign Assistance Act 
of 1961 is amended by striking out the first sentence and 
inserting in lieu thereof the following: ``There are authorized 
to be appropriated to the President, in addition to funds 
otherwise available for such purposes--
            [``(1) $211,000,000 for the fiscal year 1982 and 
        $211,000,000 for the fiscal year 1983 to carry out 
        subsection (b) of this section; and
            [``(2) $133,405,000 for the fiscal year 1982 and 
        $133,405,000 for the fiscal year 1983 to carry out 
        subsection (c) of this section. Of the funds 
        appropriated for each of the fiscal years 1982 and 1983 
        to carry out subsection (b) of this section, not less 
        than 16 percent or $38,000,000, whichever amount is 
        less, shall be available only for the United Nations 
        Fund for Population Activities.''.
    [(b) Section 104(f) of such Act is amended by adding at the 
end thereof the following:
    [``(3) None of the funds made available to carry out this 
part 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.''.

               [education and human resources development

    [Sec. 303. (a) The second sentence of section 105(a) of the 
Foreign Assistance Act of 1961 is amended by striking out 
``$101,000,000 for the fiscal year 1981'' and inserting in lieu 
thereof ``$103,600,000 for the fiscal year 1982 and 
$103,600,000 for the fiscal year 1983''.
    [(b) Such section is further amended by adding at the end 
thereof the following: ``For each of the fiscal years 1982 and 
1983, the President shall use not less than $4,000,000 of the 
funds made available for the purposes of this section to 
finance scholarships for undergraduate or professional 
education in the United States for South African students who 
are disadvantaged by virtue of legal restrictions on their 
ability to get an adequate undergraduate or professional 
education, except that up to $1,000,000 of the funds made 
available for each such fiscal year under chapter 4 of part II 
of this Act for southern African regional programs may be used 
to finance such scholarships in lieu of an equal amount under 
this section.''.

  [energy, private voluntary organizations, and selected development 
                               activities

    [Sec. 304. (a) Section 106(d)(3) of the Foreign Assistance 
Act of 1961 is amended by inserting immediately before the 
semicolon at the end thereof the following: ``and programs of 
disaster preparedness, including the prediction of and 
contingency planning for natural disasters abroad''.
    [(b) Section 106(e)(1) of such Act is amended by striking 
out ``$140,000,000 for the fiscal year 1981'' and inserting in 
lieu thereof ``$147,200,000 for the fiscal year 1982 and 
$147,200,000 for the fiscal year 1983''.

                    [united nations decade for women

    [Sec. 305. Section 113 of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
subsection:
    [``(c) Not less than $500,000 of the funds made available 
under this chapter for the fiscal year 1982 shall be expended 
on international programs which support the original goals of 
the United Nations Decade for Women.''.

                             [human rights

    [Sec. 306. The first sentence of section 116(e) of the 
Foreign Assistance Act of 1961 is amended by striking out ``the 
fiscal year 1981'' and inserting in lieu thereof ``each of the 
fiscal years 1982 and 1983''.

                   [environment and natural resources

    [Sec. 307. Section 118 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 118. Environment and Natural Resources.--(a) The 
Congress finds that if current trends in the degradation of 
natural resources in developing countries continue, they will 
severely undermine the best efforts to meet basic human needs, 
to achieve sustained economic growth, and to prevent 
international tension and conflict. The Congress also finds 
that the world faces enormous, urgent, and complex problems, 
with respect to natural resources, which require new forms of 
cooperation between the United States and developing countries 
to prevent such problems from becoming unmanageable. It is, 
therefore, in the economic and security interests of the United 
States to provide leadership both in thoroughly reassessing 
policies relating to natural resources and the environment, and 
in cooperating extensively with developing countries in order 
to achieve environmentally sound development.
    [``(b) In order to address the serious problems described 
in subsection (a), the President is authorized to furnish 
assistance under this part for developing and strengthening the 
capacity of developing countries to protect and manage their 
environment and natural resources. Special efforts shall be 
made to maintain and where possible to restore the land, 
vegetation, water, wildlife, and other resources upon which 
depend economic growth and human well-being, especially of the 
poor.
    [``(c)(1) The President, in implementing programs and 
projects under this chapter, shall take fully into account the 
impact of such programs and projects upon the environment and 
natural resources of developing countries. Subject to such 
procedures as the President considers appropriate, the 
President shall require all agencies and officials responsible 
for programs or projects under this chapter--
            [``(A) to prepare and take fully into account an 
        environmental impact statement for any program or 
        project under this chapter significantly affecting the 
        environment of the global commons outside the 
        jurisdiction of any country, the environment of the 
        United States, or other aspects of the environment 
        which the President may specify; and
            [``(B) to prepare and take fully into account an 
        environmental assessment of any proposed program or 
        project under this chapter significantly affecting the 
        environment of any foreign country.
Such agencies and officials should, where appropriate, use 
local technical resources in preparing environmental impact 
statements and environmental assessments pursuant to this 
subsection.
    [``(2) The President may establish exceptions from the 
requirements of this subsection for emergency conditions and 
for cases in which compliance with those requirements would be 
seriously detrimental to the foreign policy interests of the 
United States.
    [``(d)(1) In enacting section 103(b)(3) of this Act the 
Congress recognized the importance of forests and tree cover to 
the developing countries. The Congress is particularly 
concerned about the continuing and accelerating alteration, 
destruction, and loss of tropical forests in developing 
countries. Tropical forests constitute a major world resource. 
Their destruction and loss pose a serious threat to development 
and the environment in developing countries. Tropical forest 
destruction and loss result in shortages of wood, especially 
wood for fuel; siltation of lakes, reservoirs and irrigation 
systems; floods; destruction of indigenous peoples; extinction 
of plant and animal species; reduced capacity for food 
production; and loss of genetic resources; and can result in 
desertification and in destabilization of the earth's climate. 
Properly managed tropical forests provide a sustained source of 
fiber and other commodities essential to the economic growth of 
developing countries.
    [``(2) The concerns expressed in paragraph (1) and the 
recommendations of the United States Interagency Task Force on 
Tropical Forests shall be considered by the President--
            [``(A) in formulating and carrying out programs and 
        policies with respect to developing countries, 
        including those relating to bilateral and multilateral 
        assistance and those relating to private sector 
        activities, and
            [``(B) in seeking opportunities to coordinate 
        public and private development and investment 
        activities which affect forests in developing 
        countries.
    [``(3) It is the sense of the Congress that the President 
should instruct the representatives of the United States to the 
United Nations and to other appropriate international 
organizations to urge--
            [``(A) that higher priority be given in the 
        programs of these organizations to the problems of 
        tropical forest alteration and loss, and
            [``(B) that there be improved cooperation and 
        coordination among these organizations with respect to 
        tropical forest activities.''.

               [sahel development program--implementation

    [Sec. 308. (a) Section 121(c) of the Foreign Assistance Act 
of 1961 is amended in the third sentence by striking out 
``$88,442,000 for the fiscal year 1981'' and inserting in lieu 
thereof ``$86,558,000 for the fiscal year 1982 and $86,558,000 
for the fiscal year 1983''.
    [(b) Section 121 of such Act is amended by adding at the 
end thereof the following new subsection:
    [``(d) Funds available to carry out this section (including 
foreign currencies acquired with funds appropriated to carry 
out this section) may not be made available to any foreign 
government for disbursement unless the Administrator of the 
Agency for International Development determines that the 
foreign government will maintain a system of accounts with 
respect to those funds which will provide adequate 
identification of and control over the receipt and expenditure 
of those funds.''.

                  [private and voluntary organizations

    [Sec. 309. Section 123 of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
subsections:
    [``(f) For each of the fiscal years 1982, 1983, and 1984, 
funds in an amount not less than 12 percent of the aggregate 
amount appropriated for that fiscal year to carry out sections 
103(a), 104(b), 104(c), 105, 106, 121, and 491 of this Act 
shall be made available for the activities of private and 
voluntary organizations and the President shall seek to channel 
funds in an amount not less than 16 percent of such aggregate 
amount for the activities of private and voluntary 
organizations.
    [``(g) After December 31, 1984, funds made available to 
carry out section 103(a), 104(b), 104(c), 105, 106, 121, or 491 
of this Act may not be made available for programs of any 
United States private and voluntary organization which does not 
obtain at least 20 percent of its total annual financial 
support for its international activities from sources other 
than the United States Government, except that this restriction 
does not apply with respect to programs which, as of that date, 
are receiving financial support from the agency primarily 
responsible for administering this part. The Administrator of 
the agency primarily responsible for administering this part 
may, on a case-by-case basis, waive the restriction established 
by this subsection, after taking into account the effectiveness 
of the overseas development activities of the organization, its 
level of volunteer support, its financial viability and 
stability, and the degree of its dependence for its financial 
support on the agency primarily responsible for administering 
this part.''.

                       [housing guaranty programs

    [Sec. 310. (a) Section 222(a) of the Foreign Assistance Act 
of 1961 is amended--
            [(1) in the second sentence by striking out 
        ``$1,555,000,000'' and inserting in lieu thereof 
        ``$1,718,000,000''; and
            [(2) in the third sentence by striking out 
        ``September 30, 1982'' and inserting in lieu thereof 
        ``September 30, 1984''.
    [(b) Section 223(b) of such Act is amended by adding at the 
end thereof the following: ``All of the foregoing fees referred 
to in this section together with earnings thereon and other 
income arising from guaranty operations under this title shall 
be held in a revolving fund account maintained in the Treasury 
of the United States. All funds in such account may be invested 
in obligations of the United States. Any interest or other 
receipts derived from such investments shall be credited to 
such account and may be used for the purposes cited in this 
section.''.

               [international organizations and programs

    [Sec. 311. (a) Section 301 of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
subsection:
    [``(h) The President is authorized to permit the United 
States to participate in and to use any of the funds made 
available under this part after the date of enactment of this 
subsection for the purpose of furnishing assistance (on such 
terms and conditions as the President may determine) to the 
International Food Policy Research Institute.''.
    [(b) Section 302(a)(1) of such Act is amended by striking 
out ``$233,350,000 for the fiscal year 1981'' and inserting in 
lieu thereof ``$218,600,000 for the fiscal year 1982 and 
$218,600,000 for the fiscal year 1983. Of the funds 
appropriated under this paragraph for each of the fiscal years 
1982 and 1983, (A) not less than 19.6 percent on $45,000,000, 
whichever amount is less, shall be available only for the 
United States Children's Fund, (B) not less than 59.5 percent 
or $134,500,000, whichever amount is less, shall be available 
only for the United Nations Development Fund, (C) not less than 
4.4 percent or $10,000,000, whichever amount is less, shall be 
available only for the United Nations Environment Fund, (D) not 
less than 0.159 percent or $400,000, whichever amount is less, 
shall be available only for the United Nations Trust Fund for 
Southern Africa, and (E) not less than 0.196 percent on 
$500,000, whichever amount is less, shall be available only for 
the United Nations Institute for Training and Research''.

                     [trade and development program

    [Sec. 312. (a) The section caption of section 661 of the 
Foreign Assistance Act of 1961 is amended by striking out 
``reimbursable development programs'' and inserting in lieu 
thereof ``trade and development program''.
    [(b) Such section 661 is further amended--
            [(1) by inserting ``(a)'' immediately before ``The 
        President'';
            [(2) in the first sentence by striking out ``to use 
        $4,000,000 of the funds made available for the fiscal 
        year 1981 for the purposes of this Act''; and
            [(3) by adding at the end thereof the following new 
        subsection:
    [``(b) There are authorized to be appropriated to the 
President for purposes of this section, in addition to funds 
otherwise available for such purposes, $6,907,000 for the 
fiscal year 1982 and $6,907,000 for the fiscal year 1983. 
Amounts appropriated under this subsection are authorized to 
remain available until expended.''.

                    [african development foundation

    [Sec. 313. Section 510 of the international Security and 
Development Cooperation Act of 1980 is amended--
            [(1) by striking out ``for the fiscal year 1981''; 
        and
            [(2) by striking out ``$2,000,000'' and inserting 
        in lieu thereof ``not less than $2,000,000 for the 
        fiscal year 1982 and up to $2,000,000 for the fiscal 
        year 1983''.

                   [TITLE IV--FOOD FOR PEACE PROGRAMS

            [REPEAL OF OBSOLETE FOREIGN CURRENCY PROVISIONS

    [Sec. 401. The Agricultural Trade Development and 
Assistance Act of 1954 is amended--
            [(1) in section 101, by striking out ``for foreign 
        currencies'' and inserting in lieu thereof ``, to the 
        extent that sales for dollars under the terms 
        applicable to such sales are not possible, for foreign 
        currencies on credit terms and on terms which permit 
        conversion to dollars at the exchange rate applicable 
        to the sales agreement'';
            [(2) by amending section 103(b) to read as follows:
            [``(b) except where the President determines that 
        it would be inconsistent with the objectives of this 
        Act, determine the amount of foreign currencies needed 
        for the uses specified in subsections (a), (b), (e), 
        and (h) of section 104 and in title III, and the 
        agreements for credit sales shall provide for payment 
        of such amounts in dollars or in foreign currencies 
        upon delivery of the agricultural commodities; and such 
        payment may be considered as an advance payment of the 
        earliest installments;'';
            [(3) in section 103(d), by striking out ``(1)'' and 
        by striking out ``, or (2) for the purpose only of 
        sales of agricultural commodities for foreign 
        currencies under title I of this Act, any country or 
        area dominated by a Communist government'';
            [(4) in section 103(l), by striking out ``obtain 
        commitments from friendly'' and all that follows 
        through ``United States of America, and'';
            [(5) in section 104--
                    [(A) in the text preceding subsection (a), 
                by striking out ``this title'' and inserting in 
                lieu thereof ``agreements for such sales 
                entered into prior to January 1, 1972,''; and
                    [(B) in paragraph (3) of the proviso 
                following subsection (k), by striking out 
                ``(except as provided in subsection (c) of this 
                section),'';
            [(6) in section 106(a)--
                    [(A) by inserting ``(1)'' after ``(a)''; 
                and
                    [(B) by adding at the end thereof the 
                following:
    [``(2) Payment by any friendly country for commodities 
purchased for foreign currencies on credit terms and on terms 
which permit conversion to dollars shall be upon terms no less 
favorable to the United States than those for development loans 
made under section 122 of the Foreign Assistance Act of 
1961.'';
            [(7) by repealing section 108; and
            [(8) by repealing section 109(b).

            [emergency or extraordinary relief requirements

    [Sec. 402. Section 104(d) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by striking 
out ``$5,000,000'' and inserting in lieu thereof 
``$10,000,000''.

 [self-help measures to increase agricultural production; verification 
                        of self-help provisions

    [Sec. 403. (a) Section 109(a) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended--
            [(1) by inserting in paragraph (3) immediately 
        before the semicolon ``, and reducing illiteracy among 
        the rural poor'';
            [(2) by striking out the period at the end of 
        paragraph (10) and inserting in lieu thereof ``; and''; 
        and
            [(3) by inserting the following new paragraph 
        immediately after paragraph (10);
            [``(11) carrying out programs to improve the health 
        of the rural poor.''.
    [(b) Section 109 of the Agricultural Trade Development and 
Assistance Act of 1954 is amended by adding at the end thereof 
a new subsection as follows:
    [``(d)(1) In each agreement entered into under this title 
and in each amendment to such an agreement, the economic 
development and self-help measures which the recipient country 
agrees to undertake shall be described (A) to the maximum 
extend feasible, in specific and measurable terms, and (B) in a 
manner which ensures that the needy people in the recipient 
country will be the major beneficiaries of the self-help 
measures pursuant to each agreement.
    [``(2) the President shall, to the maximum extent feasible, 
take appropriate steps to assure that, in each agreement 
entered into under this title and in each amendment to such an 
agreement, the self-help measures agreed to are additional to 
the measures that the recipient country otherwise would have 
undertaken irrespective of that agreement or amendment.
    [``(3) The President shall take all appropriate steps to 
determine whether the economic development and self-help 
provisions of each agreement entered into under this title, and 
of each amendment to such an agreement, are being fully carried 
out.''.
    [(c) The amendments made by this section shall not be 
effective if the Agriculture and Food Act of 1981 is enacted 
(either before or after the enactment of this Act) and contains 
the same amendments.

                           [title ii minimum

    [Sec. 404. Section 201(b)(3) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by striking 
out ``1,400,000 metric tons'' and inserting in lieu thereof 
``1,200,000 metric tons for nonemergency programs''.

                  [TITLE V--OTHER ASSISTANCE PROGRAMS

                 [american schools and hospitals abroad

    [Sec. 501. Section 214(c) of the Foreign Assistance Act of 
1961 is amended by striking out ``$30,000,000 for fiscal year 
1981'' and inserting in lieu thereof ``$20,000,000 for the 
fiscal year 1982 and $20,000,000 for the fiscal year 1983''.

                    [international narcotics control

    [Sec. 502. (a)(1) Section 481(d) of the Foreign Assistance 
Act of 1961 is amended to read as follows:
    [``(d)(1) The Secretary of State shall inform the Secretary 
of Health and Human Services of the use or intended use by any 
country or international organization of any herbicide to 
eradicate marihuana in a program receiving assistance under 
this chapter.
    [``(2) The Secretary of Health and Human Services shall 
monitor the impact of the health of persons who may use or 
consume marihuana of the spraying of a herbicide to eradicate 
such marihuana in a program receiving assistance under this 
chapter, and if the Secretary determines that such persons are 
exposed to amounts of such herbicide which are harmful to their 
health, the Secretary shall prepare and transmit a report to 
the Congress setting forth such determination together with any 
recommendations the Secretary may have.
    [``(3) Of the funds authorized to be appropriated for the 
fiscal year 1982 under section 482, the President is urged to 
use not less than $100,000 to develop a substance that clearly 
and readily warns persons who may use or consume marihuana that 
it has been sprayed with the herbicide paraquat or other 
herbicide harmful to the health of such persons.
    [``(4) If the Secretary of Agriculture determines that a 
substance has been developed that clearly and readily warns 
persons who may use or consume marihuana that it has been 
sprayed with the herbicide paraquat of other herbicide harmful 
to the health of such persons, such substance shall be used in 
conjunction with the spraying of paraquat or such other 
herbicide in any program receiving assistance under this 
chapter.''.
    [(2) Assistance provided from funds appropriated, before 
the enactment of this Act, to carry out section 481 of the 
Foreign Assistance Act of 1961 may be made available for 
purposes prohibited by subsection (d) of such section as in 
effect immediately before the enactment of this subsection.
    [(3) Funds appropriated for the fiscal year 1980 to carry 
out section 481 of the Foreign Assistance Act of 1961 which 
were obligated for assistance for the Republic of Columbia may 
be used for purposes other than those set forth in section 
482(a)(2) of that Act as in effect immediately before the 
enactment of the International Security and Development 
Cooperation Act of 1980.
    [(4) Paragraphs (2) and (3) of this subsection shall apply 
only to the extent provided in advance in an appropriations 
Act. For such purpose, the funds described in those paragraphs 
are authorized to be made available for the purposes specified 
in those paragraphs.
    [(b) Section 481 of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
subsection:
    [``(e) Not later than February 1 of each year, the 
President shall transmit to the Speaker of the House of 
Representatives, and to the Committee on Foreign Relations of 
the Senate, a report on the status of the United States policy 
to establish and encourage an international strategy to prevent 
the illicit production of and to interdict and intercept 
trafficking in narcotics.''.
    [(c) Section 482(a) of such Act is amended to read as 
follows:
    [``(a)(1) To carry out the purposes of section 481, there 
are authorized to be appropriated to the President $37,700,000 
for the fiscal year 1982 and $37,700,000 for the fiscal year 
1983.
    [``(2) Amounts appropriated under this subsection are 
authorized to remain available until expended.''.

                   [international disaster assistance

    [Sec. 503. Section 492(a) of the Foreign Assistance Act of 
1961 is amended by striking out ``$25,000,000 for the fiscal 
year 1981'' and inserting in lieu thereof ``$27,000,000 for the 
fiscal year 1982 and $27,000,000 for the fiscal year 1983''.

          [assistance for displaced persons in central america

    [Sec. 504. Chapter 9 of part I of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 495I. Assistance for Displaced Persons in Central 
America.--(a)(1) The Congress recognizes that prompt United 
States assistance is necessary to help meet the basic human 
needs of persons displaced by strife in El Salvador. Therefore, 
the President is authorized to furnish assistance, on such 
terms and conditions as he may determine, to help alleviate the 
suffering of these displaced persons. Assistance provided under 
this section shall be for humanitarian purposes, with emphasis 
on the provision of food, medicine, medical care, and shelter 
and, where possible, implementation of other relief and 
rehabilitation activities. The Congress encourages the use, 
where appropriate, of the services of private and voluntary 
organizations and international relief agencies in the 
provision of assistance under this section.
    [``(2) The Congress understands that the country of Belize 
has expressed interest and willingness in the resettlement in 
its territory of Haitian nationals who desire to settle in 
Belize. Therefore, the President is authorized to furnish 
assistance, on such terms and conditions as he may determine, 
to assist the Government of Belize in the resettlement of 
Haitian nationals in the national territory of Belize.
    [``(b) There are authorized to be appropriated to the 
President for the purposes of this section, in addition to 
amounts otherwise available for such purposes, $5,000,000 for 
the fiscal year 1982 and $5,000,000 for the fiscal year 1983. 
Amounts appropriated under this section are authorized to 
remain available until expended.
    [``(c) Assistance under this section shall be provided in 
accordance with the policies and utilizing the general 
authorities provided in section 491.''.

                         [TITLE VI--PEACE CORPS

                [establishment as an independent agency

    [Sec. 601. (a) The Peace Corps Act (22 U.S.C. 2501 et seq.) 
is amended by inserting the following new section 2A 
immediately after section 2:

                [``peace corps as an independent agency

    [``Sec. 2A. Effective on the date of the enactment of the 
International Security and Development Cooperation Act of 1981, 
the Peace Corps shall be an independent agency within the 
executive branch and shall not be an agency within the ACTION 
Agency or any other department or agency of the United 
States.''.
    [(b) There are transferred to the Director of the Peace 
Corps all functions relating to the Peace Corps which were 
vested in the Director of the ACTION Agency on the day before 
the date of the enactment of this Act.
    [(c)(1) All personnel, assets, liabilities, contracts, 
property, records, and unexpended balances of appropriations, 
authorizations, allocations and other funds as are determined 
by the Director of the Office of Management and Budget, after 
consultation with the Comptroller General of the United States, 
the Director of the Peace Corps, and the Director of the ACTION 
Agency, to be employed, held, used, or assumed primarily in 
connection with any function relating to the Peace Corps before 
the date of the enactment of this Act are transferred to the 
Peace Corps. The transfer of unexpended balances pursuant to 
the preceding sentence shall be subject to section 202 of the 
Budget and Accounting Procedures Act of 1950 (31 U.S.C. 581c).
    [(2)(A) The transfer pursuant to this subsection of full-
time personnel (except special Government employees) and part-
time personnel holding permanent positions shall not cause any 
employee to be separated or reduced in rank, class, grade, or 
compensation, or otherwise suffer a loss of employment benefits 
for one year after--
            [(i) the date on which the Director of the Office 
        of Management and Budget submits the report required by 
        subsection (f)(1) of this section, or
            [(ii) the effective date of the transfer of such 
        employee, whichever occurs later
    [(B) The personnel transferred pursuant to this subsection 
shall, to the maximum extent feasible, be assigned to such 
related functions and organizational units in the Peace Corps 
as such personnel were assigned to immediately before the date 
of the enactment of this Act.
    [(C) Collective-bargaining agreements in effect on the date 
of the enactment of this Act covering personnel transferred 
pursuant to this subsection or employed on such date of 
enactment by the Peace Corps shall continue to be recognized by 
the Peace Corps until the termination date of such agreements 
or until such agreements are modified in accordance with 
applicable procedures.
    [(3) Under such regulations as the President may prescribe, 
each person who, immediately before the date of the enactment 
of this Act, does not hold an appointment under section 7(a)(2) 
of the Peace Corps Act and who is determined under paragraph 
(1) of this subsection to be employed primarily in connection 
with any function relating to the Peace Corps shall, effective 
on the date of the enactment of this Act, and notwithstanding 
subparagraph (B) of section 7(a)(2) of the Peace Corps Act, be 
appointed a member of the Foreign Service under section 7(a)(2) 
of the Peace Corps Act, and be appointed or assigned to an 
appropriate class of the Foreign Service, except that--
            [(A) any person who, immediately before such date 
        of enactment, holds a career or career-conditional 
        appointment shall not, without the consent of such 
        person, be so appointed until three years after such 
        date of enactment, during which period any such person 
        not consenting to be so appointed may continue to hold 
        such career or career-conditional appointment; and
            [(B) each person so appointed who, immediately 
        before such date of enactment, held a career or career-
        conditional appointment at grade GS-8 or lower of the 
        General Schedule established by section 5332 of title 
        5, United States Code, shall be appointed a member of 
        the Foreign Service for the duration of operations 
        under the Peace Corps Act.
Each person appointed under this paragraph shall receive basic 
compensation at the rate of such persons class determined by 
the President to be appropriate, except that the rate of basic 
compensation received by such person immediately before the 
effective date of such person's appointment under this 
paragraph shall not be reduced as a result of the provisions of 
this paragraph.
    [(d)(1) Section 4(b) of the Peace Corps Act (22 U.S.C. 
2503(b)) is amended by striking out ``such agency or officer of 
the United States Government as he shall direct. The head of 
any such agency or any such officer'' and inserting in lieu 
thereof ``the Director of the Peace Corps. The Director of the 
Peace Corps''.
    [(2) The Director of the Peace Corps shall continue to 
exercise all the functions under the Peace Corps Act or any 
other law or authority which the Director was performing on 
December 14, 1981.
    [(e)(1) Section 3 of the Peace Corps Act (22 U.S.C. 2502) 
is amended by repealing subsections (d), (e), and (f) and by 
redesignating subsection (g) as subsection (d).
    [(2) The amendment made by paragraph (1) of this subsection 
shall not alter or affect (A) the validity of any action taken 
before the date of the enactment of this Act under those 
provisions of law repealed by that amendment, or (B) the 
liability of any person for any payment described in section 
3(f) of the Peace Corps Act as in effect immediately before the 
date of the enactment of this Act.
    [(f)(1) Not later than the thirtieth day after the date of 
the enactment of this Act, or February 15, 1982, whichever 
occurs later, the Director of the Office of Management and 
Budget, after consultation with the Director of the Peace Corps 
and the Director of the ACTION Agency, shall submit to the 
appropriate committees of the Congress and to the Comptroller 
General a report on the steps taken to implement the provisions 
of this title, including descriptions of the dispositions of 
administrative matters, including matters relating to 
personnel, assets, liabilities, contracts, property, records, 
and unexpended balances or appropriations, authorizations, 
allocations, and other funds employed, used, held, available, 
or to be made available in connection with functions or 
activities relating to the Peace Corps.
    [(2) Not later than the forty-fifth day after the date of 
the enactment of this Act, or March 1, 1982, whichever occurs 
later, the Comptroller General shall submit to the appropriate 
committees of the Congress a report stating whether, in the 
judgment of the Comptroller General, determinations made by the 
Director of the Office of Management and Budget under 
subsection (c)(1) of this section were equitable.
    [(g) References in any statute, reorganization plan, 
Executive order, regulation, or other official document or 
proceeding to the ACTION Agency or the Director of the ACTION 
Agency with respect to functions or activities relating to the 
Peace Corps shall be deemed to refer to the Peace Corps or the 
Director of the Peace Corps, respectively.

                    [authorization of appropriations

    [Sec. 602. (a) Section 3(b) of the Peace Corps Act (22 
U.S.C. 2502(b)) is amended by striking out ``fiscal year 1981 
not to exceed $188,000,000'' and inserting in lieu thereof 
``the fiscal year 1982 not to exceed $105,000,000 and for the 
fiscal year 1983 not to exceed $105,000,000''.
    [(b) Section 3(c) of such Act is amended by striking out 
``fiscal year 1981'' and inserting in lieu thereof ``each 
fiscal year''.

                    [integration of disabled people

    [Sec. 603. Section 3 of the Peace Corps Act (22 U.S.C. 
2502) is amended by adding at the end thereof the following new 
subsection:
    [``(h) In recognition of the fact that there are over 
400,000,000 disabled people in the world, 95 percent of whom 
are among the poorest of the poor, the Peace Corps shall be 
administered so as to give particular attention to programs, 
projects, and activities which tend to integrate disabled 
people into the national economies of developing countries, 
thus improving their status and assisting the total development 
effort.''.

 [restoration of certain authorities formerly contained in the foreign 
                              service act

    [Sec. 604. (a) Section 10 of the Peace Corps Act (22 U.S.C. 
2509) is amended by adding at the end thereof the following new 
subsections:
    [``(i) The Director of the Peace Corps shall have the same 
authority as is available to the Secretary of State under 
section 26(a) of the State Department Basic Authorities Act of 
1956. For purposes of this subsection, the reference in such 
section 26(a) to a principal officer of the Foreign Service 
shall be deemed to be a reference to a Peace Corps 
representative and the reference in such section to a member of 
the Foreign Service shall be deemed to be a reference to a 
person employed, appointed, or assigned under this Act.
    [``(j) The provisions of section 30 of the State Department 
Basic Authorities Act of 1956 shall apply to volunteers and 
persons employed, appointed, or assigned under this Act. For 
purposes of this subsection, references to the Secretary in 
subsection (b) of such section shall be deemed to be references 
to the Director of the Peace Corps, references to the Secretary 
in subsection (f) of such section shall be deemed to be 
references to the President, and the reference in subsection 
(g) of such section to a principal representative of the United 
States shall be deemed to be a reference to a Peace Corps 
representative.''.
    [(b) Section 5(h) of such Act is amended by striking out 
the last two sentences.
    [(c) To the extent that the authorities provided by the 
amendments made by subsection (a) are authorities which are not 
applicable with respect to the Peace Corps immediately before 
the enactment of this Act and which require the expenditure of 
funds, those authorities may not be exercised using any funds 
appropriated after February 15, 1981, and before the date of 
the enactment of this Act.

                  [miscellanous--conforming amendments

    [Sec. 605. (a) Section 9 of the Peace Corps Act (22 U.S.C. 
2508) is amended by striking out ``section 10(a)(4)'' in the 
second sentence and inserting in lieu thereof ``section 
10(a)(5)''.
    [(b) Section 18 of such Act (22 U.S.C. 2517) is repealed.

                        [readjustment allowance

    [Sec. 606. The first sentence of section 5(c) of the Peace 
Corps Act (22 U.S.C. 2504(c)) is amended by striking out ``not 
to exceed $125'' and inserting in lieu thereof ``not less than 
$125''.

                  [TITLE VII--MISCELLANEOUS PROVISIONS

                    [advance acquisition of property

    [Sec. 701. Section 608(a) of the Foreign Assistance Act of 
1961 is amended--
            [(1) in the first sentence--
                    [(A) by inserting ``, or (if a substantial 
                savings would occur) other property already 
                owned by an agency of the United States 
                Government,'' immediately after ``excess 
                personal property'', and
                    [(B) by inserting ``or supplementary to'' 
                immediately after ``in lieu of''; and
            [(2) in the second sentence by inserting ``any 
        property available from an agency of the United States 
        Government,'' immediately before ``or other property''.

            [construction of productive enterprises in egypt

    [Sec. 702. The first sentence of section 620(k) of the 
Foreign Assistance Act of 1961 is amended by striking out ``for 
fiscal year 1977, fiscal year 1980, or fiscal year 1981''.

            [compensation for participating agency employees

    [Sec. 703. The first sentence of section 625(d) of the 
Foreign Assistance Act of 1961 is amended by striking out 
``together with allowances and benefits under that Act'' and 
inserting in lieu thereof ``or under chapter 53 of title 5, 
United States Code, or at any other rate authorized by law, 
together with allowances and benefits under the Foreign Service 
Act of 1980''.

                    [notification of program changes

    [Sec. 704. Section 634A of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following: 
``Whenever a proposed reprogramming exceeds $1,000,000 and the 
total amount proposed for obligation for a country under this 
Act in a fiscal year exceeds by more than $500,000 the amount 
specified for that country in the report required by section 
653(a) of this Act, notifications of such proposed 
reprogrammings shall specify--
            [``(1) the nature and purpose of such proposed 
        obligation, and
            [``(2) to the extend possible at the time of the 
        proposed obligation, the country for which such funds 
        would otherwise have been obligated.''.

                           [inspector general

    [Sec. 705. (a) The Inspector General Act of 1978 is 
amended--
            [(1) in paragraph (1) of section 2, by inserting 
        ``the Agency for International Development,'' 
        immediately after ``Department of Transportation,'';
            [(2) in section 11--
                    [(A) in paragraph (1), by inserting ``the 
                Agency for International Development,'' 
                immediately after ``Administrator of''; and
                    [(B) in paragraph (2), by inserting ``the 
                Agency for International Development,'' 
                immediately after ``Transportation or''; and
            [(3) by inserting immediately after section 8 the 
        following new section 8A:

    [``special provisions relating to the agency for international 
                              development

    [``Sec. 8A. (a) In addition to the other duties and 
responsibilities specified in this Act, the Inspector General 
of the Agency for International Development--
            [``(1) shall supervise, direct, and control all 
        security activities relating to the programs and 
        operations of that Agency, subject to the supervision 
        of the Administrator of that Agency; and
            [``(2) to the extent requested by the Director of 
        the United States International Development Cooperation 
        Agency (after consultation with the Administrator of 
        the Agency for International Development), shall 
        supervise, direct, and control all audit, 
        investigative, and security activities relating to 
        programs and operations within the United States 
        International Development Cooperation Agency.
    [``(b) In addition to the Assistant Inspectors General 
provided for in section 3(d) of this Act, the Inspector General 
of the Agency for International Development shall, in 
accordance with applicable laws and regulations governing the 
civil service, appoint an Assistant Inspector General for 
Security who shall have the responsibility for supervising the 
performance of security activities relating to programs and 
operations of the Agency for International Development.
    [``(c) The semiannual reports required to be submitted to 
the Administrator of the Agency for International Development 
pursuant to section 5(b) of this Act shall also be submitted to 
the Director of the United States International Development 
Cooperation Agency.
    [``(d) In addition to the officers and employees provided 
for in section 6(a)(6) of this Act, member of the Foreign 
Service may, at the request of the Inspector General of the 
Agency for International Development, be assigned as employees 
of the Inspector General. Members of the Foreign Service so 
assigned shall be responsible solely to the Inspector General, 
and the Inspector General (or his or her designee) shall 
prepare the performance evaluation reports for such members.
    [``(e) In establishing and staffing field offices pursuant 
to section 6(c) of this Act, the Administrator of the Agency 
for International Development shall not be bound by overseas 
personnel ceilings established under the Monitoring Overseas 
Direct Employment policy.
    [``(f) The reference in section 7(a) of this Act to an 
employee of the establishment shall, with respect to the 
Inspector General of the Agency for International Development, 
be construed to include an employee of or under the United 
States International Development Cooperation Agency.
    [``(g) The Inspector General of the Agency for 
International Development shall be in addition to the officers 
provided for in section 624(a) of the Foreign Assistance Act of 
1961.
    [``(h) As used in this Act, the term `Agency for 
International Development' includes any successor agency 
primarily responsible for administering part I of the Foreign 
Assistance Act of 1961.''.
    [(b)(1) Section 624(g) of the Foreign Assistance Act of 
1961 is repealed.
    [(2) Section 239(e) of such Act is amended by striking out 
``Auditor General'' each of the three places it appears and 
inserting in lieu thereof ``Inspector General''.
    [(3) Section 5316 of title 5, United States Code, is 
amended by striking out ``Auditor General of the Agency for 
International Development'' and inserting in lieu thereof 
``Inspector General, Agency for International Development''.
    [(c) The individual holding the position of Inspector 
General of the Agency for International Development on the date 
of enactment of this section shall not be required to be 
reappointed by reason of the enactment of this section.

                          [operating expenses

    [Sec. 706. Section 667(a) of the Foreign Assistance Act of 
1961 is amended--
    [(1) by striking out ``, for the fiscal year 1981''; and
    [(2) in paragraph (1) by striking out ``$293,8000,000'' and 
inserting in lieu thereof ``$335,600,000 for the fiscal year 
1982 and $335,600,000 for the fiscal year 1983''.

                          [technical amendment

    [Sec. 707. The sentence of section 620(f) of the Foreign 
Assistance Act of 1961 is amended to read as follows: ``For the 
purposes of this subsection, the phrase `Communist country' 
includes specifically, but is not limited to, the following 
countries:
            [``Czechoslovak Socialist Republic,
            [``Democratic People's Republic of Korea,
            [``Estonia,
            [``German Democratic Republic,
            [``Hungarian People's Republic,
            [``Latvia,
            [``Lithuania,
            [``Mongolian People's Republic,
            [``People's Republic of Albania,
            [``People's Republic of Bulgaria,
            [``People's Republic of China,
            [``Polish People's Republic,
            [``Republic of Cuba,
            [``Socialist Federal Republic of Yugoslavia,
            [``Socialist Republic of Romania,
            [``Socialist Republic of Vietnam,
            [``Tibet,
            [``Union of Soviet Socialist Republics (including 
        its captive constituent republics).''.

         [emergency humanitarian help for the people of polard

    [Sec. 708. (a) The people of Poland, with whom the people 
of the United States have a longstanding friendship, now face 
serious domestic food shortages which will be worsened by 
large-scale loss of their livestock this winter if feed 
supplies do not arrive quickly. Therefore, the President is 
urged, for urgent humanitarian reasons, to use existing 
authorities promptly in order to provide to the people of 
Poland, under as favorable terms as possible, feed grains from 
Commodity Credit Corporation stocks or other appropriate 
commodities.
    [(b) For the longer term, the President is encouraged to 
pursue discussions with other Western countries about a 
multilateral effort to help the people of Poland achieve self-
sustaining economic recovery in the years ahead.
    [(c) Chapter 4 of part II of the Foreign Assistance Act of 
1961, as amended by section 202 of this Act, is further amended 
by adding at the end thereof the following new section:
    [``Sec. 540. Poland.--Notwithstanding any other provision 
of law, $5,000,000 of the amount authorized to be appropriated 
to carry out this chapter for the fiscal year 1982 shall be 
available only for Poland for the purchase, transportation, and 
distribution of food and medical supplies through private and 
voluntary agencies where appropriate.''.]
          * * * * * * *

                  [findings regarding global security

    [Sec. 710. (a) The Congress finds that the security of the 
United States and other countries is increasingly affected by a 
broad range of global problems including shortages or potential 
shortages of food, oil, water, wood, and other basic mineral 
and natural resources; desperate poverty; sickness; population 
pressures; environmental deterioration, including soil erosion 
and water pollution; and large-scale and destabilizing refugee 
problems.
    [(b) The Congress finds that hunger, disease, and extreme 
poverty are among the most critical of these global problems, 
As ever greater numbers of people perceive the disparity 
between their own continuing deprivation and the prosperity of 
others, and judge their predicament to be neither just nor 
inevitable, it becomes increasingly likely that there will be 
unrest and violence with consequent disruption of the flow of 
essential materials, adverse effects on the world economy, 
decreased likelihood of cooperative efforts toward meeting the 
other critical problems threatening national and global 
security, and increased likelihood of confrontation between 
nations which possess nuclear arms.
    [(c) Therefore, the Congress finds that the Nation's 
understanding of global and national security must be broad 
enough to include the problems cited in this section, and that 
adequate protection of the security of the United States 
requires effective action on these global problems, and in 
particular on the problems of hunger, disease, and extreme 
poverty.

                     [world food security reserves

    [Sec. 711. (a) The Congress finds that--
            [(1) the Congress recently passed and the President 
        signed into law an Act which provides for establishment 
        of a United States food security reserve of up to four 
        million metric tons of wheat to be used for emergency 
        food assistance;
            [(2) the food import needs of developing countries 
        will increase over the next ten years; and
            [(3) other grain exporting countries could take 
        additional steps to assure continuity of food 
        assistance during food crisis years.
    [(b) The President shall encourage other grain exporting 
countries to establish their own food security reserves or take 
other measures that complement the United States food security 
reserve.
    [(c) The President shall report to the Speaker of the House 
of Representatives and the Committee on Foreign Relations of 
the Senate within one year after the enactment of this Act on 
the actions he has taken and the response of other countries to 
these proposals.

       [findings and declaration of policy regarding world hunger

    [Sec. 712. The Congress, affirming the value of human life, 
finds and declares that the elimination of hunger and its 
causes is of fundamental moral significance and, further, that 
it is in the political, economic, and security interests of the 
United States. Therefore, the Congress declares that the 
elimination of hunger and its causes shall be a primary 
objective of United States relations with developing countries.

         [reaffirmation of support for human rights provisions

    [Sec. 713. (a) The Congress reaffirms its support for the 
various statutory provisions which have been enacted in order 
to promote internationally recognized human rights.
    [(b) It is the sense of the Congress that a strong 
commitment to the defense of human rights should continue to be 
a central feature of United States foreign policy.]
          * * * * * * *

                                [lebanon

    [Sec. 715. It is the sense of the Congress that the 
Government of the United States should continue to support 
diplomatic efforts to resolve he current crisis in Lebanon, and 
to pursue a comprehensive and coordinated policy in Lebanon 
guided by the following principles:
            [(1) maintenance of an effective cease-fire 
        throughout Lebanon;
            [(2) resolution of the issue of the Syrian missiles 
        deployed in Lebanon;
            [(3) freedom, security, and opportunity for the 
        Christian and all other Lebanese communities, including 
        the Moslem, Druze, Armenian, and Jewish communities in 
        Lebanon;
            [(4) reaffirmation of the historic United States-
        Lebanon relationship and strengthening the longstanding 
        commitment of the United States to the independence, 
        sovereignty, and territorial integrity of Lebanon, 
        without partition, free from terrorism and violence, 
        and free to determine its future without Soviet or 
        other outside interference;
            [(5) generous international support for relief, 
        rehabilitation, and humanitarian assistance for 
        Lebanon, particularly for those Lebanese citizens who 
        have suffered from the terrorism and violence of recent 
        events;
            [(6) restoration of Lebanon's sovereignty free from 
        outside domination or occupation; and
            [(7) support for a free and open national election.

                   [use of chemical and toxin weapons

    [Sec. 716. (a) The Congress condemns the use of, and the 
provision for use of, chemical agents and toxin weapons against 
the peoples of Laos, Kampuchea, or Afghanistan.
    [(b) It is the sense of the Congress that the President 
should, acting through the Permanent Representative of the 
United States to the United Nations and all other appropriate 
diplomatic agents, seek definite measures to bring to an end 
actions by any party or government in using, and providing for 
use, chemical agents or toxin weapons against the peoples of 
Laos, Kampuchea, and Afghanistan, in violation of the spirit 
and the provisions of--
            [(1) the Convention on the Prohibition of the 
        Development, Production and Stockpiling of 
        Bacteriological (Biological) and Toxin Weapons and on 
        Their Destruction (done at Washington, London, and 
        Moscow on April 10, 1972);
            [(2) the Protocol for the Prohibition of the Use in 
        War of Asphyxiating, Poisonous or Other Gases, and of 
        Bacteriological Methods of Warfare (signed at Geneva on 
        June 17, 1925); and
            [(3) customary international law.
    [(c) It is further the sense of Congress that the President 
should--
            [(1) allocate the highest possible priority to the 
        development of further evidence clarifying the nature 
        and origins of the chemical agents and toxin weapons 
        being used against the peoples of Laos, Kampuchea, and 
        Afghanistan; and
            [(2) vigorously seek a satisfactory explanation 
        from the Government of the Soviet Union regarding the 
        strong circumstantial and presumptive evidence of its 
        role in the use, or provision for use, of such weapons.
    [(d) The Congress reiterates the concern expressed in House 
Resolution 644 (96th Congress), adopted by the House of 
Representatives on May 19, 1980, regarding the outbreak of 
pulmonary anthrax near Sverdlosk on April 3, 1979, and 
expresses its disappointment that the Soviet Union has failed 
adequately to respond to requests for data explaining this 
incident as provided in the Convention on the Prohibition of 
the Development, Production and Stockpiling of Bacteriological 
(Biological) and Toxin Weapons and on Their Destruction.
    [(e) It is further the sense of Congress that the 
negotiation of a treaty prohibiting the development, 
production, and stockpiling of chemical weapons, with reliable 
verification provisions, should be given a high priority by the 
United States Government and by all foreign governments.

              [financial obligations to the united nations

    [Sec. 717. (a) The Congress finds and declares that--
            [(1) the financing of the United Nations is the 
        collective responsibility of all member nations;
            [(2) the International Court of Justice has 
        determined that the expenses of the United Nations 
        incurred in its peacekeeping operations are properly 
        included as a part of the regular expenses of the 
        United Nations; and
            [(3) peacekeeping operations are vital to the 
        mission of the United Nations and must be adequately 
        financed if such operations are to continue.
            [(4) the Government of the Union of Soviet 
        Socialist Republics is currently $180,000,000 in 
        arrears on its payments to the United Nations, 
        primarily as a result of its refusal to pay for the 
        peacekeeping operations of the United Nations.
    [(b) It is the sense of the Congress that the President, 
acting through the Permanent Representative of the United 
States to the United Nations, should undertake appropriate 
diplomatic initiatives to ensure that members of the United 
Nations make payments of all their outstanding financial 
obligations to the United Nations, including their assessments 
with respect to the peacekeeping operations of the United 
Nations.

   [condemnation of libya for its support of international terrorist 
                               movements

    [Sec. 718. (a) The Congress condemns the Libyan Government 
for its support of international terrorist movements, its 
efforts to obstruct positive movement toward the peaceful 
resolution of problems in the Middle East region, and its 
actions to destabilize and control governments of neighboring 
states in Africa.
    [(b) The Congress believes that the President should 
conduct an immediate review of concrete steps the United States 
could take, individually and in concert with its allies, to 
bring economic and political pressure on Libya to cease such 
activities, and should submit a report on that review to the 
Congress within one hundred and eighty days after the date of 
enactment of this Act. Such a review should include the 
possibility of tariffs on or prohibitions against the import of 
crude oil from Libya.

    [united states citizens acting in the service of international 
                               terrorism

    [Sec. 719. (a) It is the sense of the Congress that the 
spread of international terrorism poses a grave and growing 
danger for world peace and for the national security of the 
United States. As a part of its vigorous opposition to the 
activities of international terrorist leaders and the increase 
of international terrorism, the United States should take all 
steps necessary to ensure that no United States citizen is 
acting in the service of terrorism or of the proponents of 
terrorism.
    [(b) Not later than six months after the enactment of this 
Act, the President shall submit to the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate a report which includes--
            [(1) a description of all legislation, currently in 
        force, and of all administrative remedies, presently 
        available, which can be employed to prevent the 
        involvement, service, or participation by United States 
        citizens in activities in support of international 
        terrorism or terrorist leaders;
            [(2) an assessment of the adequacy of such 
        legislation and remedies, and of the enforcement 
        resources available to carry out such measures, to 
        prevent the involvement, service, or participation by 
        United States citizens in activities in support of 
        international terrorism or terrorist leaders; and
            [(3) a description of available legislative and 
        administrative alternatives, together with an 
        assessment of their potential impact and effectiveness, 
        which could be enacted or employed to put an end to the 
        participation of United States citizens in activities 
        in support of international terrorism or terrorist 
        leaders.

                         [nonaligned countries

    [Sec. 720. (a) In considering whether to provide 
assistance, make sales, extend credits, or guarantee loans 
under the provisions of the Foreign Assistance Act of 1961, as 
amended, or the Arms Export Control Act, to any country 
represented at the Meeting of Ministers of Foreign Affairs and 
Heads of Delegations of the Non-Aligned Countries to the 36th 
General Session of the General Assembly of the United Nations 
on September 25 and 28, 1981, the President shall take into 
account whether such country has dissociated itself from the 
communique issued following the meeting.
    [(b) Within thirty days after the date of enactment of this 
section, the President shall submit a report to the Speaker of 
the House of Representatives and the Committee on Foreign 
Relations of the Senate on the countries which have dissociated 
themselves from the nonaligned countries communique and on 
their methods of dissociation.

  [promoting the development of the Haitian people and providing for 
                     orderly emigration from Haiti

    [Sec. 721. (a)(1) It is the sense of the Congress that up 
to $15,000,000 of the funds available for the fiscal year 1982 
to carry out chapter 1 of part I of the Foreign Assistance Act 
of 1961 should be made available for development assistance for 
Haiti, subject to the limitation in subsection (b) of this 
section.
    [(2) To the maximum extent practical, assistance for Haiti 
for the fiscal year 1982 under chapter 1 of part I of the 
Foreign Assistance Act of 1961 should be provided through 
private and voluntary organizations.
    [(b) Funds available for the fiscal year 1982 to carry out 
chapter 1 of part I or chapter 2 or chapter 5 of part II of the 
Foreign Assistance Act of 1961 may be expended for Haiti, and 
credits and guarantees extended for the fiscal year 1982 under 
the Arms Export Control Act may be approved for use for Haiti, 
only if the President determines that the Government of Haiti--
            [(1) is cooperating with the United States in 
        halting illegal emigration from Haiti:
            [(2) is not aiding, abetting, or otherwise 
        supporting illegal emigration from Haiti;
            [(3) has provided assurances that it will cooperate 
        fully in implementing United States development 
        assistance programs in Haiti (including programs for 
        prior fiscal years); and
            [(4) is not engaged in a consistent pattern of 
        gross violations of internationally recognized human 
        rights.
    [(c) Six months after the date of enactment of this Act, 
the President shall prepare and transmit to the Congress a 
report on the extent to which the actions of the Government of 
Haiti are consistent with paragraphs (1), (2), (3), and (4) of 
subsection (b) of this section.
    [Notwithstanding the limitations of section 660 of the 
Foreign Assistance Act of 1961, funds made available under such 
Act for the fiscal year 1982 and for the fiscal year 1983 may 
be used for programs with Haiti to assist in halting 
significant illegal emigration from Haiti to the United States.

             [comprehensive analysis of foreign assistance

    [Sec. 722. (a) It is the sense of Congress that at a time 
when major retrenchments and reappraisals are being made in 
domestic programs, it is also logical that, while maintaining 
past international commitments, the magnitude and direction of 
future foreign assistance programs should also be reviewed. As 
part of such a review process, the President is requested to 
provide a comprehensive report to the Congress on his approach 
to foreign assistance. Such report shall include an analysis 
and recommendations on the following issues:
            [(1) the relationship between foreign assistance 
        and defense expenditures as means of conducting foreign 
        policy;
            [(2) the appropriate mix between military and 
        economic assistance;
            [(3) the strengths and weaknesses, and appropriate 
        mix, of bilateral and multilateral assistance programs;
            [(4) the relevance of the basic human needs 
        approach to current aid policy;
            [(5) the performance of other aid donors, and the 
        benefits they derive from their programs;
            [(6) criteria for determining the appropriate size 
        and composition of country programs;
            [(7) the appropriateness of the current mix of 
        grants and loans, and the possibility of combining them 
        with new or existing guarantee, insurance, and export 
        credit programs;
            [(8) specific means to more actively engage the 
        private sector in assistance programs; and
            [(9) the usefulness of current functional 
        categories in constructing the development assistance 
        budget.
    [(b) The Congress requests that the President provide to 
the Congress a preliminary report by March 31, 1982, and a 
final report by June 30, 1982, with respect to the issues 
referred to in subsection (a).

          [EXTERNAL DEBT BURDENS OF EGYPT, ISRAEL, AND TURKEY

    [Sec. 723. The Congress finds that the Governments of 
Egypt, Israel, and Turkey each have an enormous external debt 
burden which may be made more difficult by virtue of financing 
provided for those governments under various United States 
assistance programs. In order to assist the Congress in 
examining United States assistance for these countries, the 
President shall report to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate, not later than one hundred and twenty 
days after the date of enactment of this Act and not later than 
one year after the date of enactment of this Act, regarding 
economic conditions prevailing in Egypt, Israel, and Turkey 
which may affect their respective ability to meet their 
international debt obligations and to stabilize their 
economies. These reports shall also analyze the impact on 
Egypt's economy of Arab sanctions against Egypt.

                               [NICARAGUA

    [Sec. 724. (a) In furnishing assistance under this Act to 
the Government of Nicaragua, the President shall take into 
account the extent to which that Government has engaged in 
violations of internationally recognized human rights 
(including the right to organize and operate labor unions free 
from political oppression, the right to freedom of the press, 
and the right to freedom of religion) and shall encourage the 
Government of Nicaragua to respect those rights.
    [(b) In furnishing assistance under this Act to the 
Government of Nicaragua, the President shall take into account 
the extent to which that Government has fulfilled its pledge of 
July 1979 to the member states of the Organization of American 
States--
            [(1) to establish full respect for human rights in 
        Nicaragua in accordance with the United Nations 
        Universal Declaration of the Rights and Duties of Man 
        and the Charter on Human Rights of the Organization of 
        American States;
            [(2) to allow the free movement in Nicaragua of the 
        Inter-American Commission on Human Rights; and
            [(3) to establish the framework for free and 
        democratic elections so that the people of Nicaragua 
        may elect their representatives to city councils, to 
        constitutional assembly, and to Nicaragua's highest-
        ranking authorities, with such framework to include, 
        but not be limited to, the full and complete 
        opportunity for political activity of the Nicaraguan 
        people.
    [(c) Assistance to the Government of Nicaragua under this 
Act shall be terminated if the President determines and reports 
to the Congress that the Government of Nicaragua cooperates 
with or harbors any international terrorist organization or is 
aiding, abetting, or supporting acts of violence or terrorism 
in other countries or that Soviet, Cuban, or other foreign 
combat military forces are stationed or situated within the 
borders of Nicaragua and the presence of such forces 
constitutes a threat to the national security of the United 
States or to any Latin American ally of the United States.
    [(d) Any agreement between the United States and the 
Government of Nicaragua regarding the use of funds appropriated 
to carry out this Act, which are to be made available in the 
form of loans, shall specifically require that to the maximum 
extent possible such loan funds, and any local currency 
generated in conjunction therewith, shall be used for 
assistance to the private sector. Local currency loan programs 
in Nicaragua shall be monitored and audited in accordance with 
section 624(g) of the Foreign Assistance Act of 1961.
    [(e) For each six-month period in which any funds are 
expended under this Act for Nicaragua, the President shall 
submit to the Speaker of the House of Representatives, and the 
chairman of the Committee on Foreign Relations of the Senate, a 
report accounting fully and in itemized detail for the amounts 
obligated and actually expended in Nicaragua.

[REPEAL OF LIMITATIONS ON ASSISTANCE, SALES, AND SALES CREDIT FOR CHILE

    [Sec. 726. (a) Section 406 of the International Security 
Assistance and Arms Export Control Act of 1976 (22 U.S.C. 2370 
note) is repealed.
    [(b) Notwithstanding any other provision of law--
            [(1) no assistance may be furnished under chapter 
        2, 4, 5, or 6 of part II of the Foreign Assistance Act 
        of 1961 to Chile;
            [(2) no sale of defense articles or services may be 
        made under the Arms Export Control Act to Chile:
            [(3) no credits (including participation in 
        credits) may be extended and no loan may be guaranteed 
        under the Arms Export Control Act with respect to 
        Chile; and
            [(4) no export licenses may be issued under section 
        38 of the Arms Export Control Act to or for the 
        Government of Chile;
unless and until the President submits to the Speaker of the 
House of Representatives and the chairman of the Committee on 
Foreign Relations of the Senate a detailed report certifying--
            [(A) that the Government of Chile has made 
        significant progress in complying with internationally 
        recognized principles of human rights;
            [(B) that the provision of such assistance, 
        articles or services is in the national interest of the 
        United States; and
            [(C) that the Government of Chile is not aiding or 
        abetting international terrorism and has taken 
        appropriate steps to cooperate to bring to justice by 
        all legal means available in the United States or Chile 
        those indicated by a United States grand jury in 
        connection with the murders of Orlando Letelier and 
        Ronni Moffitt.
    [(c) The prohibition contained in subsection (b) does not 
prohibit the sale, or the licensing for export, of cartridge 
actuated devices, propellant actuated devices, components, 
parts, tools, technical manuals, time compliance to technical 
orders (TCTOs), or TCTO retrofits for aircraft of the F-5E/F, 
A/T-37, or C-103E/H type owned by the Chilean Air Force, so 
long as the items are provided only for purposes of enhancing 
the safety of the aircraft crew.

                      [assistance for el salvador

    [Sec. 727. (a) It is the sense of the Congress that 
assistance furnished to the Government of El Salvador, both 
economic and military, should be used to encourage--
            [(1) full observance of internationally recognized 
        human rights in accordance with sections 116 and 502B 
        of the Foreign Assistance Act of 1961;
            [(2) full respect for all other fundamental human 
        rights, including the right of freedom of speech and of 
        the press, the right to organize and operate free labor 
        unions, and the right to freedom of religion;
            [(3) continued progress in implementing essential 
        economic and political reforms, including land reform 
        and support for the private sector;
            [(4) a complete and timely investigation of the 
        deaths for all United States citizens killed in El 
        Salvador since October 1979;
            [(5) an end to extremist violence and the 
        establishment of a unified command and control of all 
        government security forces in this effort;
            [(6) free, fair, and open elections at the earliest 
        date; and
            [(7) increased professional capability of the 
        Salvadoran Armed Forces in order to establish a 
        peaceful and secure environment in which economic 
        development and reform and the democratic processes can 
        be fully implemented, thereby permitting a phased 
        withdrawal of United States military training and 
        advisory personnel at the earliest possible date.
    [(b) It is the sense of the Congress that the United States 
economic assistance to El Salvador should put emphasis on 
revitalizing the private sector and supporting the free market 
system. The Congress recognizes that the lack of foreign 
exchange to buy imported raw materials and intermediate goods 
is a major impediment to the ability of the Salvadoran economy 
to provide jobs. The Congress also recognizes that the funds 
budgeted for economic assistance are only a fraction of the 
foreign exchange needed, and United States economic aid should 
be used, wherever possible, to stimulate private sector 
lending. Therefore, the Congress urges the President to set 
aside a portion of the economic support funds to provide 
guarantees to private United States banks willing to give 
credits to the Salvadoran private sector.

     [restrictions on military assistance and sales to el salvador

    [Sec. 728. (a)(1) The Congress finds that peaceful and 
democratic development in Central America is in the interest of 
the United States and of the community of American States 
generally, that the recent civil strife in El Salvador has 
caused great human suffering and disruption to the economy of 
that country, and that substantial assistance to El Salvador is 
necessary to help alleviate that suffering and to promote 
economic recovery within a peaceful and democratic process. 
Moreover, the Congress recognizes that the efforts of the 
Government of El Salvador to achieve these goals are affected 
by the activities of forces beyond its control.
    [(2) Taking note of the substantial progress made by the 
Government of El Salvador in land and banking reforms, the 
Congress declares it should be the policy of the United States 
to encourage and support the Government of El Salvador in the 
implementation of these reforms.
    [(3) The United States also welcomes the continuing efforts 
of President Duarte and his supporters in the Government of El 
Salvador to establish greater control over the activities of 
members of the armed forces and government security forces. The 
Congress finds that it is in the interest of the United States 
to cooperate with the Duarte government in putting an end to 
violence in El Salvador by extremist elements among both the 
insurgents and the security forces, and in establishing a 
unified command and control of all government forces.
    [(4) The United States supports the holding of free, fair, 
and open elections in El Salvador at the earliest date. The 
Congress notes the progress being made by the Duarte government 
in this area, as evidenced by the appointment of an electoral 
commission.
    [(b) In fiscal years 1982 and 1983, funds may be obligated 
for assistance for El Salvador under chapter 2 or 5 of part II 
of the Foreign Assistance Act of 1961, letters of offer may be 
issued and credits and guarantees may be extended for El 
Salvador under the Arms Export Control Act, and members of the 
Armed Forces may be assigned or detailed to El Salvador to 
carry out functions under the Foreign Assistance Act of 1961 or 
the Arms Export Control Act, only if not later than thirty days 
after the date of enactment of this Act and every one hundred 
and eighty days thereafter, the President makes a certification 
in accordance with subsection (d).
    [(c) If the President does not make such a certification at 
any of the specified times then the President shall 
immediately--
            [(1) suspend all expenditures of funds and other 
        deliveries of assistance for El Salvador which were 
        obligated under chapters 2 and 5 of part II of the 
        Foreign Assistance Act of 1961 after the date of 
        enactment of this Act;
            [(2) withhold all approvals for use of credits and 
        guarantees for El Salvador which were extended under 
        the Arms Export Control Act after the date of enactment 
        of this Act;
            [(3) suspend all deliveries of defense articles, 
        defense services, and design and construction services 
        to El Salvador which were sold under the Arms Export 
        Control Act after the date of enactment of this Act; 
        and
            [(4) order the prompt withdrawal from El Salvador 
        of all members of the Armed Forces performing defense 
        services, conducting international military education 
        and training activities, or performing management 
        functions under section 515 of the Foreign Assistance 
        Act of 1961.
Any suspension of assistance pursuant to paragraphs (1) through 
(4) of this subsection shall remain in effect during fiscal 
year 1982 and during fiscal year 1983 until such time as the 
President makes a certification in accordance with subsection 
(d).
    [(d) The certification required by subsection (b) is a 
certification by the President to the Speaker of the House of 
Representatives and to the Chairman of the Committee on Foreign 
Relations of the Senate of a determination that the Government 
of El Salvador--
            [(1) is making a concerted and significant effort 
        to comply with internationally recognized human rights.
            [(2) is achieving substantial control over all 
        elements of its own armed forces, so as to bring to an 
        end the indiscriminate torture and murder of Salvadoran 
        citizens by these forces;
            [(3) is making continued progress in implementing 
        essential economic and political reforms, including the 
        land reform program;
            [(4) is committed to the holding of free elections 
        at an early date and to that end has demonstrated its 
        good faith efforts to begin discussions with all major 
        political factions in El Salvador which have declared 
        their willingness to find and implement an equitable 
        political solution to the conflict, with such solution 
        to involve a commitment to--
                    [(A) a renouncement of further military or 
                paramilitary activity; and
                    [(B) the electoral process with 
                internationally recognized observers.
Each such certification shall discuss fully and completely the 
justification for making each of the determinations required by 
paragraphs (1) through (4).
    [(e) On making the first certification under subsection (b) 
of this section, the President shall also certify to the 
Speaker of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate that he has 
determined that the Government of El Salvador has made good 
faith efforts both to investigate the murders of the six United 
States citizens in El Salvador in December 1980 and January 
1981 and to bring to justice those responsible for those 
murders. The second certification required under this section 
may be made only if it includes a determination by the 
President that the Government of El Salvador (1) made good 
faith efforts since the first such certification was made to 
investigate the murders of those six United States citizens and 
to bring to justice those responsible for those murders, and 
(2) has taken all reasonable steps to investigate the 
disappearance of journalist John Sullivan in El Salvador in 
January 1981. The fourth certification required under this 
section may be made only if it includes a determination by the 
President that, since the third such certification was made, 
the Government of El Salvador (1) has made good faith efforts 
both to investigate the murders of the seven United States 
citizens in El Salvador in December 1980 and January 1981 and 
to bring to justice all those responsible for those murders, 
and (2) has taken all reasonable steps to investigate the 
killing of Michael Kline in El Salvador in October 1982.

             [reporting requirement relating to el salvador

    [Sec. 729. (a) Not later than ninety days after the date of 
enactment of this section, the President shall prepare and 
transmit to the Speaker of the House of Representatives and to 
the chairman of the Committee on Foreign Relations of the 
Senate a report setting forth--
            [(1) the viewpoints of all major parties to the 
        conflict in El Salvador and of the influential actors 
        in the Salvadoran political system regarding the 
        potential for interest and in negotiations, elections, 
        and a settlement of the conflict; and
            [(2) the views of democratic Latin American 
        nations, Canada, the Organization of American States, 
        and European allies of the United States regarding a 
        negotiated settlement to such conflict.
    [(b) It is the sense of the Congress that the President 
shall, as soon as possible, send a special envoy or use other 
appropriate means to consult with and gather information from 
appropriate representatives of the parties to the Salvadoran 
conflict, democratic governments of Latin America, Canada, and 
European allies of the United States regarding the attainment 
of a negotiated settlement in El Salvador.

                  [restrictions on aid to el salvador

    [Sec. 730. None of the funds authorized to be appropriated 
by this Act may be made available for the provision of 
assistance to El Salvador for the purpose of planning for 
compensation, or for the purpose of compensation, for the 
confiscation, nationalization, acquisition, or expropriation of 
any agricultural or banking enterprise, or of the properties or 
stock shares which may be pertaining thereto.

                        [el salvadoran refugees

    [Sec. 731. It is the sense of the Congress that the 
administration should continue to review, on a case-by-case 
basis, petitions for extended voluntary departure made by 
citizens of El Salvador who claim that they are subject to 
persecution in their homeland, and should take full account of 
the civil strife in El Salvador in making decisions on such 
petitions.

             [consolidated reports: arms export control act

    [Sec. 732. Section 25 of the Arms Export Control Act is 
amended to read as follows:
    [``Sec. 25. Annual Estimate and Justification for Sales 
Program.--(a) No later than February 1 of each year, the 
President shall transmit to the Congress, as a part of the 
annual presentation materials for security assistance programs 
proposed for the next fiscal year, a report which sets forth--
            [``(1) an arms sales proposal covering all sales 
        and licensed commercial exports under this Act of major 
        weapons or weapons-related defense equipment for 
        $7,000,000 or more, or of any other weapons or weapons-
        related defense equipment for $25,000,000 or more, 
        which are considered eligible for approval during the 
        current calendar year, together with an indication of 
        which sales and licensed commercial exports are deemed 
        most likely actually to result in the issuance of a 
        letter of offer or of an export license during such 
        year;
            [``(2) an estimate of the total amount of sales and 
        licensed commercial exports expected to be made to each 
        foreign nation from the United States;
            [``(3) the United States national security 
        considerations involved in expected sales or licensed 
        commercial exports to each country, an analysis of the 
        relationship between anticipated sales to each country 
        and arms control efforts concerning such country and an 
        analysis of the impact of such anticipated sales on the 
        stability of the region that includes such country;
            [``(4) an estimate with regard to the international 
        volume of arms traffic to and from nations purchasing 
        arms as set forth in paragraphs (1) and (2) of this 
        subsection, together with best estimates of the sale 
        and delivery of weapons and weapons-related defense 
        equipment by all major arms suppliers to all major 
        recipient countries during the preceding fiscal year;
            [``(5) an estimate of the aggregate dollar value 
        and quantity of defense articles and defense services, 
        military education and training, grant military 
        assistance, and credits and guarantees, to be furnished 
        by the United States to each foreign country and 
        international organization in the next fiscal year;
            [``(6) an analysis and description of the services 
        performed during the preceding fiscal year by officers 
        and employees of the United States Government carrying 
        out functions on a full-time basis under this Act for 
        which reimbursement is provided under section 43(b) or 
        section 21(a) of this Act, including the number of 
        personnel involved in performing such services;
            [``(7) the total amount of funds in the reserve 
        under section 24(c) at the end of the fiscal year 
        immediately preceding the fiscal year in which a report 
        under this section is made, together with an assessment 
        of the adequacy of such total amount of funds as a 
        reserve for the payment of claims under guarantees 
        issued pursuant to section 24 in view of the current 
        debt servicing capacity of borrowing countries, as 
        reported to the Congress pursuant to section 634(a)(5) 
        of the Foreign Assistance Act of 1961;
            [``(8) a list of all countries with respect to 
        which findings made by the President pursuant to 
        section 3(a)(1) of this Act are in effect on the date 
        of such transmission;
            [``(9) The progress made under the program of the 
        Republic of Korea to modernize its armed forces, the 
        role of the United States in mutual security efforts in 
        the Republic of Korea and the military balance between 
        the People's Republic of Korea and the Republic of 
        Korea;
            [``(10) the amount and nature of Soviet military 
        assistance to the armed forces of Cuba during the 
        preceding fiscal year and the military capabilities of 
        those armed forces;
            [``(11) the status of each loan and each contract 
        of guaranty or insurance theretofore made under the 
        Foreign Assistance Act of 1961, predecessor Acts, or 
        any Act authorizing international security assistance, 
        with respect to which there remains outstanding any 
        unpaid obligation or potential liability; the status of 
        each extension of credit for the procurement of defense 
        articles or defense services, and of each contract of 
        guaranty in connection with any such procurement, 
        theretofore made under the Arms Export Control Act with 
        respect to which there remains outstanding any unpaid 
        obligation or potential liability; and
            [``(12) such other information as the President may 
        deem necessary.
    [``(b) Not later than thirty days following the receipt of 
a request made by the Committee on Foreign Relations of the 
Senate or the Committee on Foreign Affairs of the House of 
Representatives for additional information with respect to any 
information submitted pursuant to subsection (a), the President 
shall submit such information to such committee.
    [``(c) The President shall make every effort to submit all 
of the information required by subsection (a) or (b) wholly in 
unclassified form. Whenever the President submits any such 
information in classified form, he shall submit such classified 
information in an addendum and shall also submit simultaneously 
a detailed summary, in unclassified form, of such classified 
information.''.

         [consolidated reports: foreign assistance act of 1961

    [Sec. 733. Section 634(a) of the Foreign Assistance Act of 
1961 is amended--
            [(1) by amending the first sentence to read as 
        follows: ``In order that the Congress and the American 
        people may be better and more currently informed 
        regarding American foreign policy and the effectiveness 
        of assistance provided by the United States Government 
        to other countries and to international organizations, 
        the Chairman of the Development Coordination Committee 
        shall prepare and transmit to the Congress, no later 
        than February 1 of each year, as a part of the annual 
        presentation materials for foreign assistance, a report 
        as described in this subsection. This report shall 
        include--'';
            [(2) in paragraph (1)(B), by striking out ``the 
        progressive developing countries are making toward 
        achieving those objectives which are indicative of 
        improved well-being of the poor majority, which 
        objectives shall include but not be limited to'';
            [(3) in paragraph (2)--
                    [(A) by striking out ``and'' at the end of 
                subparagraph (D);
                    [(B) by adding ``and'' at the end of 
                subparagraph (E); and
                    [(C) by adding at the end thereof the 
                following:
                    [``(F) of any contract in excess of 
                $100,000 administered by the Agency for 
                International Development which was entered 
                into in the preceding fiscal year without 
                competitive selection procedures, and the 
                reasons for doing so;'';
            [(4) by amending paragraph (4) to read as follows:
            [``(4) the status of each sale of agricultural 
        commodities on credit terms theretofore made under the 
        Agricultural Trade Development and Assistance Act of 
        1954 with respect to which there remains outstanding 
        any unpaid obligation; and the status of each 
        transaction with respect to which a loan, contract or 
        guarantee of insurance, or extension of credit (or 
        participation therein) was theretofore made under the 
        Export-Import Bank Act of 1945 with respect to which 
        there remains outstanding any unpaid obligation or 
        potential liability; except that such report shall 
        include individually only any loan, contract, sale, 
        extension of credit, or other transactions listed in 
        this paragraph which is in excess of $1,000,000;'';
            [(5) In paragraph (7), by striking out ``and'' 
        after the semicolon; and
            [(6) by striking out paragraph (8) and inserting in 
        lieu thereof the following new paragraphs:
            [``(8) the amount of all foreign currencies 
        acquired without payment of dollars on hand of each 
        foreign country as of September 30 of the preceding 
        fiscal year;
            [``(9) the Development Coordination Committee's 
        operations pursuant to section 640B(f) of this Act;
            [``(10) the aggregate dollar value and quantity of 
        grant military assistance, military education and 
        training, and any other defense articles and services 
        furnished under this Act by the United States to each 
        foreign country and international organization for the 
        preceding fiscal year;
            [``(11) information concerning the activities of 
        the Minority Resource Center during the preceding 
        fiscal year; and
            [``(12) other information appropriate to the 
        conduct of the foreign assistance program of the United 
        States Government.''.

                                [repeals

    [Sec. 734. (a) The following provisions of the following 
Acts are repealed:
            [(1) The Foreign Assistance Act of 1961: Sections 
        125(b), 301(b), 301(e)(3), 302(a)(3), 451(b), 
        481(c)(2), 495D(e), 495H(c)(2), 513, 601(e)(2), 613(c), 
        620(b), 620(i), 620(m), 640B(g), 657, 659, and 668, and 
        the second sentence of section 542.
            [(2) The International Security and Development 
        Cooperation Act of 1980; Sections 108, 313(b), 603, 
        713, 714, 720, and 721.
            [(3) The International Development Cooperation Act 
        of 1979: Section 124, 504(b), 506, 507(b), 508(b), and 
        509(c).
            [(4) The Special International Security Assistance 
        Act of 1979: Sections 4(e)(2), 7(b), 8(c), and 9.
            [(5) The International Development and Food 
        Assistance Act of 1978: Sections 117(b)(2), 122(b), 
        201, 303, and 603(a)(1).
            [(6) The International Development and Food 
        Assistance Act of 1977: Sections 132(a), 133(c)(6), and 
        214.
            [(7) Section 213 of the International Development 
        and Food Assistance Act of 1975.
            [(8) The Foreign Assistance Act of 1974: Sections 
        3, 25, 26, 27, 43, 49, 50(c), and 51(c).
            [(9) The Foreign Assistance Act of 1973; Sections 
        36(e), 37, and 38.
            [(10) The Arms Export Control Act: Section 43(c), 
        and the fifth paragraph of section 1.
            [(11) The International Security Assistance Act of 
        1979: Sections 6(b), 20(a), 25, and 28.
            [(12) The International Security Assistance Act of 
        1978: Sections 15(b), 23(d), 23(e)(2), 24(C), 25, and 
        27.
            [(13) The International Security Assistance Act of 
        1977: Sections 14, 22, 24(c), 25, and 28(a)(2).
            [(14) Section 507 of the International Security 
        Assistance and Arms Export Control Act of 1976.
            [(15) Section 7 of the Act entitled ``An Act to 
        amend the Foreign Military Sales Act, and for other 
        purposes'', approved January 12, 1971 (22 U.S.C. 
        2410a).
    [(b) Section 620(s)(1) of the Foreign Assistance Act of 
1961 is amended--
            [(1) in subparagraph (A) by inserting ``and'' after 
        the semicolon;
            [(2) in subparagraph (B)--
                    [(A) by inserting ``or other'' after 
                ``foreign exchange'', and
                    [(B) by striking out ``; and'' and 
                inserting in lieu thereof a period; and
            [(3) by repealing subparagraph (C).
    [(c) Except as otherwise explicitly provided by their 
terms, amendments to the Foreign Assistance Act of 1961 and the 
Arms Export Control Act which are applicable only to a single 
fiscal or calendar year or which require reports or other 
actions on a nonrecurring basis shall be deemed to have expired 
and shall be removed form law upon the expiration of the 
applicable time periods for the fulfillment of the required 
actions.

                     [report on nuclear activities

    [Sec. 735. Beginning with the fiscal year 1983 and for each 
fiscal year thereafter, the President shall prepare and 
transmit to the Congress, as part of the presentation materials 
for foreign assistance programs proposed for the fiscal year, a 
classified report describing the nuclear programs and related 
activities of any country for which a waiver of section 669 or 
760 of the Foreign Assistance Act of 1961 is in effect, 
including an assessment of--
            [(1) the extent and effectiveness of International 
        Atomic Energy Agency safeguards at that country's 
        nuclear facilities; and
            [(2) the capability, actions, and intentions of the 
        government of that country with respect to the 
        manufacture or acquisition of a nuclear explosive 
        device.

                        [assistance to pakistan

    [Sec. 736. Chapter 1 of part III of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following:
    [``Sec. 620E. Assistance to Pakistan.--The Congress 
recognizes that Soviet forces occupying Afghanistan pose a 
security threat to Pakistan. The Congress also recognizes that 
an independent and democratic Pakistan with continued friendly 
ties with the United States is in the interest of both nations. 
The Congress finds that United States assistance will help 
Pakistan maintain its independence. Assistance to Pakistan is 
intended to benefit the people of Pakistan by helping them meet 
the burdens imposed by the presence of Soviet forces in 
Afghanistan and by promoting economic development. In 
authorizing assistance to Pakistan, it is the intent of 
Congress to promote the expeditious restoration of full civil 
liberties and representative government in Pakistan. The 
Congress further recognizes that it is in the mutual interest 
of Pakistan and the Untied States to avoid the profoundly 
destabilizing effects of the proliferation of nuclear explosive 
devices or the capacity to manufacture or otherwise acquire 
nuclear devices.
    [``(b) The United States reaffirms the commitment made in 
its 1959 bilateral agreement with Pakistan relating to 
aggression from a Communist or Communist-dominated state.
    [``(c) Security assistance for Pakistan shall be made 
available in order to assist Pakistan in dealing with the 
threat to its security posed by the Soviet presence in 
Afghanistan. The United States will take appropriate steps to 
ensure that defense articles provided by the United States to 
Pakistan are used for defensive purposes.
    [``(d) The President may waive the prohibitions of section 
669 of this Act at any time during the period beginning on the 
date of enactment of this section and ending on September 30, 
1987, to provide assistance to Pakistan during that period if 
he determines that to do so is in the national interest of the 
United States.''.

  [prohibitions relating to nuclear transfers and nuclear detonations

    [Sec. 737. (a) The Congress finds that any transfer of a 
nuclear explosive device to a non-nuclear-weapon state or, in 
the case of a non-nuclear-weapon state, any receipt or 
detonation of a nuclear explosive device would cause grave 
damage to bilateral relations between the United States and 
that country.
    [(b) Section 669(b)(2) of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``(2)(A) A certification under paragraph (1) of this 
subsection shall take effect on the date on which the 
certification is received by the Congress. However, if, within 
thirty calendar days after receiving this certification, the 
Congress adopts a concurrent resolution stating in substance 
that the Congress disapproves the furnishing of assistance 
pursuant to the certification, then upon the adoption of that 
resolution the certification shall cease to be effective and 
all deliveries of assistance furnished under the authority of 
that certification shall be suspended immediately.
    [``(B) Any concurrent resolution under this paragraph shall 
be considered in the Senate in accordance with the provisions 
of section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
    [``(C) For the purpose of expediting the consideration and 
adoption of concurrent resolutions under this paragraph, a 
motion to proceed to the consideration of any such resolution 
after it has been reported by the appropriate committee shall 
be treated as highly privileged in the House of 
Representatives.''.
    [(c) Section 670 of such Act is amended to read as follows:
    [``Sec. 670. Nuclear Reprocessing Transfers, Transfers of 
Nuclear Explosive Devices, and Nuclear Detonations.--(a)(1) 
Except as provided in paragraph (2) of this subsection, no 
funds authorized to be appropriated by this Act or the Arms 
Export Control Act may be used for the purpose of providing 
economic assistance (including assistance under chapter 4 of 
part II), providing military assistance or grant military 
education and training, providing assistance under chapter 6 of 
part II, or extending military credits or making guarantees, to 
any country which on or after the date of enactment of the 
International Security Assistance Act of 1977 delivers nuclear 
reprocessing equipment, materials, or technology to any other 
country or receives such equipment, materials, or technology 
from any other country (except for the transfer of reprocessing 
technology associated with the investigation, under 
international evaluation programs in which the United States 
participates, of technologies which are alternatives to pure 
plutonium reprocessing).
    [``(2) Notwithstanding paragraph (1) of this subsection, 
the President may furnish assistance which would otherwise be 
prohibited under that paragraph if he determines and certifies 
in writing to the Speaker of the House of Representatives and 
the Committee on Foreign Relations of the Senate that the 
termination of such assistance would be seriously prejudicial 
to the achievement of United States nonproliferation objectives 
or otherwise jeopardize the common defense and security. The 
President shall transmit with such certification a statement 
setting forth the specific reasons therefor.
    [``(3)(A) A certification under paragraph (2) of this 
subsection shall take effect on the date on which the 
certification is received by the Congress. However, if, within 
30 calendar days after receiving this certification, the 
Congress adopts a concurrent resolution stating in substance 
that the Congress disapproves the furnishing of assistance 
pursuant to the certification, then upon the adoption of that 
resolution the certification shall cease to be effective and 
all deliveries of assistance furnished under the authority of 
that certification shall be suspended immediately.
    [``(B) Any concurrent resolution under this paragraph shall 
be considered in the Senate in accordance with the provisions 
of section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
    [``(C) For the purpose of expediting the consideration and 
adoption of concurrent resolutions under this paragraph, a 
motion to proceed to the consideration of any such resolution 
after it has been reported by the appropriate committee shall 
be treated as highly privileged in the House of 
Representatives.
    [``(b)(1) Except as provided in paragraphs (2) and (3) of 
this subsection, no funds authorized to be appropriated by this 
Act or the Arms Export Control Act may be used for the purpose 
of providing economic assistance (including assistance under 
chapter 4 of part II), providing military assistance or grant 
military education and training, providing assistance under 
chapter 6 of part II, or extending military credits or making 
guarantees, to any country which on or after the date of 
enactment of the International Security Assistance Act of 
1977--
            [``(A) transfers a nuclear explosive device to a 
        non-nuclear-weapon state, or
            [``(B) is a non-nuclear-weapon state and either--
                    [``(i) receives a nuclear explosive device, 
                or
                    [``(ii) detonates a nuclear explosive 
                device.
    [``(2)(A) Notwithstanding paragraph (1) of this subsection, 
the President may, for a period of not more than 30 days of 
continuous session, furnish assistance which would otherwise be 
prohibited under paragraph (1) of this subsection if, before 
furnishing such assistance, the President transmits to the 
Speaker of the House of Representatives, and to the chairman of 
the Committee on Foreign Relations of the Senate, a 
certification that he has determined that an immediate 
termination of assistance to that country would be detrimental 
to the national security of the United States. Not more than 
one such certification may be transmitted for a country with 
respect to the same detonation, transfer, or receipt of a 
nuclear explosive device.
    [``(B) If the President transmits a certification to the 
Congress under subparagraph (A), a joint resolution which would 
permit the President to exercise the waiver authority of 
paragraph (3) of this subsection shall, if introduced in either 
House within thirty days of continuous session after the 
Congress receives this certification, be considered in the 
Senate and House of Representatives in accordance with 
subparagraphs (C) and (D) of this paragraph.
    [``(C) Any joint resolution under this paragraph shall be 
considered in the Senate in accordance with the provisions of 
section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
    [``(D) For the purpose of expediting the consideration and 
adoption of joint resolutions under this paragraph, a motion to 
proceed to the consideration of such a joint resolution after 
it has been reported by the appropriate committee shall be 
treated as highly privileged in the House of Representatives.
    [``(E) For purposes of this paragraph, the term `joint 
resolution' means a joint resolution the matter after the 
resolving clause of which is as follows: `That the Congress 
having received on                 a certification by the 
President under section 670(b)(2) of the Foreign Assistance Act 
of 1961 with respect to                 , the Congress hereby 
authorizes the President to exercise the waiver authority 
contained in section 670(b)(3) of that Act.', with the date of 
receipt of the certification inserted in the first blank and 
the name of the country inserted in the second blank.
    [``(3) Notwithstanding paragraph (1) of this subsection, if 
the Congress enacts a joint resolution under paragraph (2) of 
this subsection, the President may furnish assistance which 
would otherwise be prohibited under paragraph (1) if he 
determines and certifies in writing to the Speaker of the House 
of Representatives and the Committee on Foreign Relations of 
the Senate that the termination of such assistance would be 
seriously prejudicial to the achievement of United States 
nonproliferation objectives or otherwise jeopardize the common 
defense and security. The President shall transmit with such 
certification a statement setting forth the specific reasons 
therefor.
    [``(4) For the purposes of this subsection, continuity of 
session is broken only by an adjournment of Congress sine die 
and the days on which either House is not in session because of 
an adjournment of more than three days to a day certain are 
excluded in the computation of any period of time in which 
Congress is in continuous session.
    [``(5) As used in this subsection, the term `non-nuclear-
weapon state' means any country which is not a nuclear-weapon 
state, as defined in article IX(3) of the Treaty on the Non-
Proliferation of Nuclear Weapons.''.]
                              ----------                              


     INTERNATIONAL SECURITY AND DEVELOPMENT COOPERATION ACT OF 1980

    AN ACT To authorize appropriations for the fiscal year 1980 for 
international security and development assistance, the Peace Corps, and 
              refugee assistance, and for other purposes.

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

                              short title

    Section 1. This Act may be cited as the ``International 
Security and Development Cooperation Act of 1980''.

      [TITLE I--MILITARY AND RELATED ASSISTANCE AND SALES PROGRAMS

                        [third country transfers

    [Sec. 101. (a)(1) Section 3(d) of the Arms Export Control 
Act is amended--
            [(A) by redesignating existing paragraph (3) as 
        paragraph (4); and
            [(B) by inserting the following new paragraph (3) 
        immediately after paragraph (2):
    [``(3) The President may not give his consent to the 
transfer to a third country of a defense article or a defense 
service valued (in terms of its original acquisition costs) at 
$25,000,000 or more, or of major defense equipment valued (in 
terms of its original acquisition costs) at $7,000,000 or more, 
the export of which has been licensed or approved under section 
38 of this Act, unless at least 30 calendar days before giving 
such consent the President submits to the Speaker of the House 
of Representatives and the Chairman of the Committee on Foreign 
Relations of the Senate a report containing the information 
specified in subparagraphs (A) through (E) of paragraph (1).''.
    [(2) Such section is further amended--
            [(A) in the last sentence of paragraph (1) by 
        striking out ``subsection'' and inserting in lieu 
        thereof ``paragraph''; and
            [(B) in paragraph (2) by inserting ``paragraph (1) 
        of'' immediately before ``this subsection''.
    [(b) Paragraph (4) of section 3(d) of such Act, as so 
redesignated by subsection (a)(1)(A) of this section, is 
amended--
            [(1) by striking out ``or'' at the end of 
        subparagraph (B);
            [(2) by striking out the period at the end of 
        clause (ii) of subparagraph (C) and inserting in lieu 
        thereof ``; or ''; and
            [(3) by adding at the end thereof the following new 
        subparagraph:
            [(D) to transfers to the North Atlantic Treaty 
        Organization, any member country of such Organization, 
        Japan, Australia, or New Zealand, of any major defense 
        equipment valued (in terms of its original acquisition 
        cost) at less than $7,000,000 or of any defense article 
        or related training or other defense service valued (in 
        terms of its original acquisition cost) at less than 
        $25,000,000.''.

                    [performance of defense services

    [Sec. 102. Section 21(c) of the Arms Export Control Act is 
amended--
            [(1) by striking out ``training advising, or 
        otherwise providing assistance regarding combat 
        activities'' and inserting in lieu thereof ``training 
        and advising that may engage United States personnel in 
        combat activities'';)
            [(2) by inserting ``(1)'' immediately after 
        ``(c)''; and
            [(3) by adding at the end thereof the following:
    [(2) Within 48 hours after the outbreak of significant 
hostilities involving a country in which United States 
personnel are performing defense services pursuant to this Act 
or the Foreign Assistance Act of 1961, the President shall 
submit to the Speaker of the House of Representatives and to 
the President pro tempore of the Senate a report, in writing, 
setting forth--
            [``(A) the identity of such country and a 
        description of such hostilities; and
            [``(B) the number of members of the United States 
        Armed Forces and the number of United States civilian 
        personnel performing defense services related to such 
        hostilities in such country, their location, the 
        precise nature of their activities, and the likelihood 
        of their becoming engaged in or endangered by 
        hostilities.''.

                    [reciprocal training agreements

    [Sec. 103. Section 21(g) of the Arms Export Control Act is 
amended by striking out ``In carrying out section 814 of the 
Act of October 7, 1975 (Public Law 94-106), the President may 
enter into North Atlantic Treaty Organization standardization 
agreements'' and inserting in lieu thereof ``The President may 
enter into North Atlantic Treaty Organization standardization 
agreements in carrying out section 814 of the Act of October 7, 
1975 (Public Law 94-106), and may enter into similar agreements 
with Japan, Australia, and New Zealand,''.

                           [guaranty reserve

    [Sec. 104. (a) Section 24(c) of the Arms Export Control Act 
is amended to read as follows:
    [``(c) Funds obligated under this section before the date 
of enactment of the International Security and Development 
Cooperation Act of 1980 which constitute a single reserve for 
the payment of claims under guaranties issued under this 
section shall remain available for expenditure for the purposes 
of this section on and after that date. The President shall 
report promptly to the Congress whenever the payment of a claim 
under any such guaranty reduces the total amount of funds in 
the single reserve under this subsection to an amount less than 
$750,000,000, together with his recommendations for the 
authorization of appropriations of additional funds for such 
reserve. For purposes of any provision in this Act or any other 
Act relating to a prohibition or limitation on the availability 
of funds under this Act, whenever a guaranty is issued under 
this section, the principal amount of the loan so guaranteed 
shall be deemed to be funds made available for use under this 
Act. Any guaranties issued hereunder shall be backed by the 
full faith and credit of the United States.''.
    [(b) Section 37 of such Act is amended by adding at the end 
thereof the following:
    [``(c) Notwithstanding the provisions of subsection (b), to 
the extent that any of the funds constituting the reserve under 
section 24(c) are paid out for a claim arising out of a loan 
guaranteed under section 24, amounts received from a foreign 
government or international organization after the date of such 
payment, with respect to such claim, shall be credited to such 
reserve, shall be merged with the funds in such reserve, and 
shall be available for any purpose for which funds in such 
reserve are available.''.
    [(c) Section 25(a) of such Act is amended--
            [(1) by redesignating paragraphs (3) and (4) as 
        paragraphs (4) and (5); and
            [(2) by inserting after paragraph (2) the 
        following:
            [``(3) the total amount of funds in the reserve 
        under section 24(c) at the end of the fiscal year 
        immediately preceding the fiscal year in which a report 
        under this section is made, together with an assessment 
        of the adequacy of such total amount of funds as a 
        reserve for the payment of claims under guaranties 
        issued pursuant to section 24 in view of the current 
        debt servicing capacity of borrowing countries, as 
        reported to the Congress pursuant to section 634(a)(5) 
        of the Foreign Assistance Act of 1961;''.
    [(d) Section 31(a) of such Act is amended by inserting 
immediately after the first sentence the following new 
sentence: ``Credits may not be extended under section 23 of 
this Act in an amount, and loans may not be guaranteed under 
section 24(a) of this Act in a principal amount, which exceeds 
any maximum amount which may be established with respect to 
such credits or such loan guarantees in legislation 
appropriating funds to carry out this Act.''.

                         [military construction

    [Sec. 105. (a) The Arms Export Control Act is amended by 
inserting immediately after chapter 2 the following new 
chapter:

           [``Chapter 2A--Foreign Military Construction Sales

    [``Sec. 29. Foreign Military Construction Sales.--The 
President may sell design and construction services to any 
eligible foreign country or international organization if such 
country or international organization agrees to pay in United 
States dollars not less than the full cost to the United States 
Government of furnishing such services. Payment shall be made 
to the United States Government in advance of the performance 
of such services by officers or employees of the United States 
Government. The President may, without requirement for charge 
to any appropriation or contract authorization otherwise 
provided, enter into contracts for the procurement of design 
and construction services for sale under this section if such 
country or international organization provides the United 
States Government with a dependable undertaking (1) to pay the 
full amount of such contract which will assure the United 
States Government against any loss on the contract, and (2) to 
make funds available in such amounts and at such time as may be 
required to meet the payments required by the contract and any 
damages and costs that may accrue from the cancellation of such 
contract, in advance of the time such payments, damages, or 
costs are due.''.
    [(b)(1) Section 21(h) of such Act is amended by striking 
out ``defense articles or defense services'' both places it 
appears and inserting in lieu thereof ``defense articles, 
defense services, or design and construction services''.
    [(2) Section 22(c) of such Act is amended to read as 
follows:
    [``(c) The provisions of the Renegotiation Act of 1951 do 
not apply to procurement contracts heretofore or hereafter 
entered into under this section, section 29, or predecessor 
provisions of law.''.
    [(3) Sections 23, 24(a), and 31(c) of such Act are each 
amended by striking out ``defense articles and defense 
services'' each place it appears and inserting in lieu thereof 
``defense articles, defense services, and design and 
construction services''.
    [(c) Section 36(a) of such Act is amended--
            [(1) by striking out ``and'' immediately after the 
        semicolon at the end of paragraph (7);
            [(2) by striking out the period at the end of 
        paragraph (8) and inserting in lieu thereof a 
        semicolon; and
            [(3) by adding at the end thereof the following new 
        paragraph:
            [``(9) a listing of each sale under section 29 
        during the quarter for which such report is made, 
        specifying (A) the purchaser, (B) the United States 
        Government department or agency responsible for 
        implementing the sale, (C) an estimate of the dollar 
        amount of the sale, and (D) a general description of 
        the real property facilities to be constructed pursuant 
        to such sale; and''.
    [(d)(1) Section 36(b)(1) of such Act is amended in the 
first sentence by inserting ``any design and construction 
services for $200,000,000 or more,'' immediately after 
``$25,000,000 or more,''.
    [(2) Such section is further amended--
            [(A) in the first sentence by inserting ``, or (in 
        the case of a sale of design and construction services) 
        the information specified in clauses (A) through (D) or 
        paragraph (9) of subsection (a),'' immediately after 
        ``subsection (a)'' the first place it appears;
            [(B) in the second sentence by striking out ``or 
        defense services'' and inserting in lieu thereof ``, 
        defense services, or design and construction 
        services,''; and
            [(C) in the third sentence--
                    [(i) in subparagraph (A) by striking out 
                ``or services'' and inserting in lieu thereof 
                ``, defense services, or design and 
                construction services'';
                    [(ii) in subparagraph (C) by striking out 
                ``or defense service'' and inserting in lieu 
                thereof ``, defense service, or design and 
                construction service'';
                    [(iii) in subparagraph (E) by striking out 
                ``or services'' both places it appears and 
                inserting in lieu thereof ``, defense services, 
                or design and construction services'';
                    [(iv) in subparagraph (I) by striking out 
                ``or services'' both places it appears and 
                inserting in lieu thereof ``, defense services, 
                or design and construction services'';
                    [(v) in subparagraph (J) by striking out 
                ``or services'' and inserting in lieu thereof 
                ``, defense services, or design and 
                construction services'';
                    [(vi) in subparagraph (K) by striking out 
                ``or services'' and inserting in lieu thereof 
                ``, defense services, or design and 
                construction services'';
                    [(vii) in subparagraph (L) by striking out 
                ``or services'' and inserting in lieu thereof 
                ``, defense services, or design and 
                construction services'';
                    [(viii) in subparagraph (M) by striking out 
                ``services, or'' the first place it appears and 
                inserting in lieu thereof ``defense services, 
                design and construction services, or defense''; 
                and
                    [(ix) in subparagraph (N) by inserting ``, 
                defense services, or design and construction 
                services immediately after ``defense 
                articles''.
    [(e)(1) Section 37(a) of such Act is amended by striking 
out ``sections 21 and 22'' and inserting in lieu thereof 
``sections 21, 22, and 29''.
    [(2) Section 39 of such Act is amended--
            [(A) in subsection (a) by inserting ``, or of 
        design and construction services under section 29,'' 
        immediately after ``section 22''; and
            [(B) in subsection (c) by inserting ``or section 
        29'' immediately after ``section 22''.
    [(3) Section 42 of such Act is amended--
            [(A) in subsection (d) by striking out ``and 24'' 
        and inserting in lieu thereof ``24, and 29''; and
            [(B) in subsection (e) by striking out ``and 22'' 
        both places that it appears and inserting in lieu 
        thereof ``, 22, and 29''.
    [(f) Section 47 of such Act is amended--
            [(1) in paragraph (4) by inserting ``, but does not 
        include design and construction services under section 
        29 of this Act'' immediately after ``military sales'';
            [(2) in paragraph (6) by striking out ``and'' 
        immediately after the semicolon;
            [(3) in paragraph (7) by striking out the period 
        and inserting in lieu thereof ``; and''; and
            [(4) by adding at the end thereof the following new 
        paragraph:
    [``(8) `design and construction services' means, with 
respect to sales under section 29 of this Act, the design and 
construction of real property facilities, including necessary 
construction equipment and materials, engineering services, 
construction contract management services relating thereto, and 
technical advisory assistance in the operation and maintenance 
of real property facilities provided or performed by any 
department or agency of the Department of Defense or by a 
contractor pursuant to a contract with such department or 
agency.''.

      [foreign military sales authorization and aggregate ceiling

    [Sec. 106. (a) Section 31(a) of the Arms Export Control Act 
is amended by striking out ``$673,500,000 for the fiscal year 
1980'' and inserting in lieu thereof ``$500,000,000 for the 
fiscal year 1981''.
    [(b) Section 31(b) of such Act is amended to read as 
follows:
    [``(b)(1) The total amount of credits, or participations in 
credits, extended pursuant to section 23 of this Act for the 
fiscal year 1981 shall not exceed $500,000,000.
    [``(2) The total principal amount of loans guaranteed 
pursuant to section 24(a) of this Act for the fiscal year 1981 
shall not exceed $2,616,000,000.
    [``(3) Of the aggregate total of such credits, or 
participations in credits, and of the total principal amount of 
such loans guaranteed, not less than $1,400,000,000 for the 
fiscal year 1981 shall be available only for Israel, of which 
$200,000,000 shall be available only for costs associated with 
the relocation of Israeli forces from the Sinai.''.
    [(c) Section 31(c) of such Act is amended--
            [(1) in the first sentence by striking out ``fiscal 
        year 1980'' and inserting in lieu thereof ``fiscal year 
        1981''; and
            [(2) in the last sentence by striking out ``one-
        half'' and inserting in lieu thereof ``$500,000,000''.
    [(d) The principal amount of the loans guaranteed under 
section 24(a) of such Act for the fiscal year 1981 with respect 
to Egypt, the Sudan, Greece, and Turkey shall be repaid, and 
with respect to Somalia may be repaid, in not less than twenty 
years, following a grace period of ten years on repayment of 
principal.

      [commercial exports of defense articles and defense services

    [Sec. 107. (a) Section 38(b)(3) of the Arms Export Control 
Act is amended by striking out ``$35,000,000'' and inserting in 
lieu thereof ``$100,000,000''.
    [(b) Section 36(c) of such Act is amended--
            [(1) in the first sentence by striking out ``not 
        less than 30 days'';
            [(2) by redesignating paragraphs (1), (2), and (3) 
        as clauses (A), (B), and (C), respectively;
            [(3) in the last sentence by striking out 
        ``paragraph (2)'' and inserting in lieu thereof 
        ``clause (B)'' and by striking out ``paragraph (3)'' 
        and inserting in lieu thereof ``clause (C)'';
            [(4) by inserting ``(1) immediately after ``(c)''; 
        and
            [(5) by adding at the end thereof the following:
    [``(2) Unless the President states in his certification 
that an emergency exists which requires the proposed export in 
the national security interests of the United States, a license 
for export described in paragraph (1)--
            [``(A) shall not be issued at least 30 calendar 
        days after the Congress receives such certification; 
        and
            [``(B) shall not be issued then if the Congress, 
        within such 30-day period, adopts a concurrent 
        resolution stating that it objects to the proposed 
        export, except that this subparagraph does not apply 
        with respect to a license issued for an export to the 
        North Atlantic Treaty Organization, any member country 
        of that Organization, Japan, Australia, or New Zealand.
If the President states in his certification that an emergency 
exists which requires the proposed export in the national 
security interests of the United States, thus waiving the 
requirements of subparagraphs (A) and (B) of this paragraph, he 
shall set forth in the certification a detailed justification 
for his determination, including a description of the emergency 
circumstances which necessitate the immediate issuance of the 
export license and a discussion of the national security 
interests involved.
    [``(3)(A) Any resolution under this subsection shall be 
considered in the Senate in accordance with the provisions of 
section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
    [``(B) For the purpose of expediting the consideration and 
adoption of concurrent resolutions under this subsection, a 
motion to proceed to the consideration of any such resolution 
after it has been reported by the appropriate committee shall 
be treated as highly privileged in the House of 
Representatives.''.
    [(c) Section 38(a) of such Act is amended by adding at the 
end thereof the following new paragraph:
    [``(3) In exercising the authorities conferred by this 
section, the President may require that any defense article or 
defense service be sold under this Act as a condition of its 
eligibility for export, and may require that persons engaged in 
the negotiation for the export of defense articles and services 
keep the President fully and currently informed of the progress 
and future prospects of such negotiations.''.
    [(d) Section 25(d)(1) of such Act is amended--
            [(1) in the first sentence by inserting ``and 
        licensed commercial exports'' immediately after 
        ``sales'' both places it appears; and
            [(2) in the second sentence--
                    [(A) by inserting ``and licensed commercial 
                exports'' immediately after ``Sales'', and
                    [(B) by inserting ``or of an export 
                license'' immediately after ``letter of 
                offer''.]
          * * * * * * *

  [notification of certain commercial exports to countries supporting 
                        international terrorism

    [``Sec. 111. Section 6(i) of the Export Administration Act 
of 1979 is amended in text preceding paragraph (1) by striking 
out ``of the Senate'' and inserting in lieu thereof ``and the 
Committee on Foreign Relations of the Senate at least 30 
days''.

                          [military assistance

    [``Sec. 112. (a) Section 503(a) of the Foreign Assistance 
Act of 1961 is amended--
            [(1) by striking out ``or'' at the end of paragraph 
        (1);
            [(2) by striking out the period at the end of 
        paragraph (2) and inserting in lieu thereof ``; or''; 
        and
            [(3) by inserting at the end thereof the following 
        new paragraph:
            [``(3) transferring such of the funds appropriated 
        or otherwise made available under this chapter as the 
        President may determine for assistance to a recipient 
        specified in section 504(a)(1) of this Act, within the 
        dollar limitations of that section, to the account in 
        which funds for the procurement of defense articles and 
        defense services under section 21 and section 22 of the 
        Arms Export Control Act have been deposited for such 
        recipient, to be merged with such deposited funds, and 
        to be used solely to meet obligations of the recipient 
        for payment for sales under that Act.''.
    [(b) Section 504(a)(1) of such Act is amended to read as 
follows:
    [``(a)(1) There are authorized to be appropriated to the 
President to carry out the purposes of this chapter not to 
exceed $106,100,000 for the fiscal year 1981. Not more than the 
following amounts of funds available to carry out this chapter 
may be allocated and made available for assistance to each of 
the following countries for fiscal year 1981:

[Portugal....................................................$51,000,000
[Spain........................................................ 3,600,000
[The Philippines..............................................25,000,000
[The Sudan.................................................... 1,700,000

The amount specified in this paragraph for military assistance 
to any such country may be increased by not more than 10 
percent of such amount if the President deems such increase 
necessary for the purposes of this chapter.''.
    [(c) Section 506(a) of such Act is amended by striking out 
``$10,000,000'' and inserting in lieu thereof ``$50,000,000''.
    [(d) Section 516(a) of such Act is amended--
            [(1) by striking out ``September 30, 1980'' and 
        inserting in lieu thereof ``September 30, 1982''; and
            [(2) by striking out ``three'' and inserting in 
        lieu thereof ``five''.

         [stockpiling of defense articles for foreign countries

    [``Sec. 113. Section 514(b)(2) of the Foreign Assistance 
Act of 1961 is amended by striking out ``$95,000,000 for the 
fiscal year 1980'' and inserting in lieu thereof ``$85,000,000 
for the fiscal year 1981''.

    [international military assistance and sales program management

    [``Sec. 114. Section 515 of the Foreign Assistance Act of 
1961 is amended--
            [(1) in subsection (b)(1)--
                    [(A) by striking out ``fiscal year 1980'' 
                and inserting in lieu thereof ``fiscal year 
                1981'';
                    [(B) by striking out ``the countries 
                specified in section 504(a)(1) and in'' and 
                inserting in lieu thereof ``Portugal, Spain, 
                Jordan, the Philippines,''; and
                    [(C) by striking out ``Iran, Kuwait'' and 
                inserting in lieu thereof ``Egypt'';
            [(2) in subsection (b)(3)--
                    [(A) by striking out ``Iran, Kuwait, and'';
                    [(B) by striking out ``countries'' and 
                inserting in lieu thereof ``country''; and
                    [(C) by striking out ``each''; and
            [(3) in the last sentence of subsection (f)--
                    [(A) by inserting ``six more than'' 
                immediately after ``may not exceed'';
                    [(B) by striking out ``December 31, 1978'' 
                and inserting in lieu thereof ``December 31, 
                1979''; and
                    [(C) by inserting ``and countries to which 
                military personnel have been assigned pursuant 
                to subsection (c)'' immediately after ``such 
                countries''.

             [international military education and training

    [Sec. 115. (a) The first sentence of section 542 of the 
Foreign Assistance Act of 1961 is amended by striking out all 
that follows ``the purposes of this chapter'' and inserting in 
lieu thereof ``$34,000,000 for the fiscal year 1981.''.
    [(b)(1) Section 644(m) of such Act is amended--
            [(A) by striking out ``and'' at the end of 
        paragraph (3);
            [(B) by striking out the period at the end of 
        paragraph (4) and inserting in lieu thereof ``; and''; 
        and
            [(C) by adding at the end thereof the following new 
        paragraph:
            [``(5) with respect to military education and 
        training, the additional costs that are incurred by the 
        United States Government in furnishing such 
        assistance.''.
    [(2) Section 21(a)(3) of the Arms Export Control Act is 
amended by inserting immediately before the period the 
following: ``, except that in the case of training sold to a 
purchaser who is concurrently receiving assistance under 
chapter 5 of part II of the Foreign Assistance Act of 1961, 
only those additional costs that are incurred by the United 
States Government in furnishing such training''.

                        [peacekeeping operations

    [Sec. 116. (a) Section 552(a) of the Foreign Assistance Act 
of 1961 is amended by striking out ``$21,100,000 for the fiscal 
year 1980'' and inserting in lieu thereof ``$25,000,000 for the 
fiscal year 1981''.
    [(b) Section 553 of such Act is repealed and section 554 is 
redesignated as section 553.

                           [special authority

    [Sec. 117. (a) Section 614(a) of the Foreign Assistance Act 
of 1961 is amended to read as follows:
    [``(a)(1) The President may authorize the furnishing of 
assistance under this Act without regard to any provision of 
this Act, the Arms Export control Act, any law relating to 
receipts and credits accruing to the United States, and any Act 
authorizing or appropriating funds for use under this Act, in 
furtherance of any of the purposes of this Act, when the 
President determines, and so notifies in writing the Speaker of 
the House of Representatives and the chairman of the Committee 
on Foreign Relations of the Senate, that to do so is important 
to the security interests of the United States.
    [``(2) The President may make sales, extend credit, and 
issue guaranties under the Arms Export Control Act, without 
regard to any provision of this Act, the Arms Export Control 
Act, any law relating to receipts and credits accruing to the 
United States, and any Act authorizing or appropriating funds 
for use under the Arms Export Control Act, in furtherance of 
any of the purpose of such Act, when the President determines, 
and so notifies in writing the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate, that to do so is vital to the national 
security interests of the United States.
    [``(3) Before exercising the authority granted in this 
subsection, the President shall consult with, and shall provide 
a written policy justification to, the Committee on Foreign 
Affairs and the Committee on Appropriations of the House of 
Representatives and the Committee on Foreign Relations and the 
Committee on Appropriations of the Senate.
    [``(4) The authority of this subsection may not be used to 
authorize the use of more than $250,000,000 of funds made 
available for use under this Act or the Arms Export Control 
Act, or the use of more than $100,000,000 of foreign currencies 
accruing under this Act or any other law, in any fiscal year. 
Not more than $50,000,000 of the funds available under this 
subsection may be allocated to any one country in any fiscal 
year, unless such country is a victim of active Communist or 
Communist-supported aggression.
    [``(5) The authority of this section may not be used to 
waive the limitations on transfers contained in section 610(a) 
of this Act.''.
    [(b) Section 652 of such Act is amended by striking out ``, 
610(a), or 614(a)'' and inserting in lieu thereof ``or 
610(a)''.

            [prohibition on military assistance to nicaragua

    [Sec. 119. None of the funds authorized to be appropriated 
by this title shall be made available for any aid or assistance 
to Nicaragua.

                    [TITLE II--ECONOMIC SUPPORT FUND

                    [authorization of appropriations

    [Sec. 201. Section 531(b)(1) of the Foreign Assistance Act 
of 1961 is amended by striking out ``fiscal year 1980, 
$1,935,000,000'' and inserting in lieu thereof ``fiscal year 
1981, $2,065,300,000''.

                             [use of funds

    [Sec. 202. Chapter 4 of part II of the Foreign Assistance 
Act of 1961 is amended by striking out all that follows section 
531 and inserting in lieu thereof the following:
    [``Sec. 532. Use of Fiscal Year  1981 Funds.--(a)(1) Of the 
funds authorized to be appropriated to carry out this chapter 
for the fiscal year 1981, not less than $785,000,000 shall be 
available only for Israel and not less than $750,000,000 shall 
be available only for Egypt.
    [``(2) All of the funds made available to Israel and to 
Egypt under this chapter for the fiscal year 1981 shall be 
provided on a grant basis.
    [``(3) The total amount of funds allocated for Israel under 
this chapter for the fiscal year 1981 may be made available as 
a cash transfer. In exercising the authority of this paragraph, 
the President shall ensure that the level of cash transfers 
made to Israel does not cause an adverse impact on the total 
amount of nonmilitary exports from the United States to Israel.
    [``(b) Of the funds authorized to be appropriated to carry 
out this chapter for the fiscal year, 1981, not less than 
$200,000,000 shall be available only for Turkey. Not less than 
two-thirds of the funds made available to Turkey under this 
chapter for the fiscal year 1981 shall be provided on a grant 
basis.
    [``(c) Of the funds authorized to be appropriated to carry 
out this chapter for the fiscal year 1981, $15,000,000 shall be 
available only for Cyprus for refugee relief, reconstruction, 
and educational exchange programs.
    [``(d)(1) Of the amount authorized to be appropriated to 
carry out this chapter for the fiscal year 1981, $12,500,000 
may be used for special requirements in the Middle East, 
including regional programs and development programs on the 
West Bank and in Gaza.
    [``(2) The President may obligate or expend funds under 
this subsection only if--
            [``(A) he has transmitted to the Speaker of the 
        House of Representatives, and to the chairman of the 
        Committee on Foreign Relations and the chairman of the 
        Committee on Appropriations of the Senate, a report 
        setting forth--
                    [``(i) the name of the proposed recipient 
                of such funds,
                    [``(ii) the amount of funds to be made 
                available to such recipient, and
                    [``(iii) the purpose for which such funds 
                are to be made available;
            [``(B) a period of 30 calendar days has elapsed 
        since the Congress received such report; and
            [``(C) the Congress did not adopt, during such 30-
        day period, a concurrent resolution stating in 
        substance that the Congress does not approve the 
        proposed use of funds described in such report.
    [``(e)(1) Up to $50,000,000 of the funds appropriated to 
carry out this chapter for the fiscal year 1981 may be made 
available for emergency use under this chapter when the 
national interests of the United States urgently require 
economic support to promote economic or political stability.
    [``(2) Notwithstanding subsections (a)(1), (b), (c), and 
(d)(1) of this section, up to 5 percent of the funds available 
for any country or region pursuant to such subsections may be 
used under paragraph (1) of this subsection.
    [``(f) None of the funds appropriated to carry out this 
chapter for fiscal year 1981 may be made available for Syria.
    [``(g) Funds available to carry out this chapter for the 
fiscal year 1981 may not be used to finance the construction 
of, the operation or maintenance of, or the supplying of fuel 
for, any nuclear facility in a foreign country unless the 
President certifies to the Congress that use of funds for such 
purpose is indispensable to the achievement of nonproliferation 
objectives which are uniquely significant and of paramount 
importance to the United States.
    [``Sec.  533. Central American Economic Support.--(a) The 
Congress finds that peaceful and democratic development in 
Central America is in the interest of the United States and of 
the community of American States generally, that the recent 
civil strife in Nicaragua has caused great human suffering and 
disruption to the economy of that country, and that substantial 
external assistance to Nicaragua is necessary to help alleviate 
that suffering and to promote economic recovery within a 
peaceful and democratic process. The Congress further finds 
that peaceful and democratic development in certain other 
Central American countries will be significantly assisted by 
additional economic support at this time.
    [``(b) In furnishing assistance under this chapter to the 
Government of Nicaragua, the President shall take into account 
the extent to which that Government has engaged in violations 
of the right to organize and operate labor unions free from 
political oppression, has engaged in or permitted violations of 
human rights, has engaged in violations of the right to freedom 
of the press, or has engaged in violations of the right to 
freedom of religion.
    [``(c) The President shall encourage the Government of 
Nicaragua to respect the right to freedom of the press, the 
right to organize and operate free labor unions, the right to 
freedom of religion, as well as all other fundamental human 
rights.
    [``(d) The Congress reaffirms the requirement of section 
502B(a)(1) of this Act that a principal goal of the foreign 
policy of the United States shall be to promote the increased 
observance of internationally recognized human rights by all 
countries. In furtherance of the goal, assistance to Nicaragua 
for the fiscal year 1981 under this chapter shall be 
terminated, in accordance with sections 116 and 502B of this 
Act, if the Government of Nicaragua engages in a consistent 
pattern of gross violations of internationally recognized human 
rights.
    [``(e) The President shall transmit to the Speaker of the 
House of Representatives and the Committee on Foreign Relations 
of the Senate a report for each 6-month period in which funds 
are expended under this chapter for Nicaragua for the fiscal 
year 1981. Each such report shall discuss fully and completely 
the status of respect in Nicaragua for human rights, political 
pluralism, freedom of the press and assembly, freedom of 
religion, and freedom of labor to organize and bargain 
collectively.
    [``(f) Prior to releasing any assistance to the Government 
of Nicaragua under this chapter, the President shall transmit a 
certification to the Speaker of the House of Representatives 
and the Committee on Foreign Relations of the Senate that the 
Government of Nicaragua has not cooperated with or harbored any 
international terrorist organization and is not aiding, 
abetting, or supporting acts of violence or terrorism in other 
countries. In the event that the President transmits such a 
certification, but at a later date he determines that the 
Government of Nicaragua cooperates with or harbors any 
international terrorist organization or is aiding, abetting, or 
supporting acts of violence or terrorism in other countries, 
the President shall terminate assistance to the Government of 
Nicaragua under this chapter, and the outstanding balance of 
any loan to the Government of Nicaragua, or any of its agencies 
or instrumentalities, with funds authorized to be appropriated 
by this chapter shall become immediately due and payable.
    [``(g) It is the sense of the Congress that the United 
States should support those traditionally faithful allies of 
the United States which are responsible members of the 
Organization of American States, including Guatemala, El 
Salvador, Costa Rica, Nicaragua, Panama, and Honduras, against 
terrorism and external subversion.
    [``(h) Funds made available under this chapter for the 
National School of Agriculture in Nicaragua shall be used under 
an understanding with the Autonomous National University of 
Nicaragua that the National School of Agriculture will 
cooperate in programs with United States institutions of higher 
education.
    [``(i) Any agreement between the United States and the 
Government of Nicaragua regarding the use of funds authorized 
to be appropriated under this chapter, which are to be made 
available in the form of loans, shall specifically require that 
at least 60 percent of such loan funds, and any local currency 
generated in conjunction therewith, shall be used for 
assistance to the private sector. Insofar as practicable, local 
currency used for assistance to the private sector in Nicaragua 
shall, consistent with the accomplishment of the purposes set 
forth in subsection (a) of this section, be used in ways which 
will strengthen private financial institutions which will help 
keep the private sector in Nicaragua financially independent. 
Local currency loan programs in Nicaragua shall be monitored 
and audited in accordance with section 624(g) of this Act. The 
President shall report on the implementation of this subsection 
in the reports required under subsection (e) of this section.
    [``(j) The President shall terminate assistance to the 
Government of Nicaragua under this chapter if he determines and 
reports to the Congress that Soviet, Cuban, or other foreign 
combat military forces are stationed or situated within the 
boarders of Nicaragua and that the presence of such forces 
constitutes a threat to the national security of the United 
States or to any Latin American ally of the United States.
    [``(k) The President shall terminate assistance to 
Nicaragua under this chapter for the fiscal year 1981 if he 
determines that the Government of Nicaragua has engaged in a 
consistent pattern of violations of the right to organize and 
operate labor unions free from political oppression.
    [``(l) The President shall encourage the holding of free, 
open elections in Nicaragua within a reasonable period of time 
and shall, in providing any additional assistance to Nicaragua, 
take into consideration the progress which is being made toward 
holding such elections.
    [``(m) None of the funds made available for Nicaragua under 
this chapter may be used for assistance for any school or other 
educational instrumentality or facility which would house, 
employ, or be made available to Cuban personnel.
    [``(n) The President shall terminate assistance to 
Nicaragua under this chapter if he determines that the 
Government of Nicaragua engages in systematic violations of 
free speech and press.
    [``(o) Any agreement between the United States and the 
Government of Nicaragua regarding the use of funds authorized 
to be appropriated under this chapter, which are to be made 
available in the form of loans, shall specifically require that 
such loan funds shall be used for the purchase of goods or 
services of United States origin.
    [``(p) Up to one percent of the funds made available to 
Nicaragua under this chapter for the fiscal year 1981 shall be 
used to make publicly known to the people of Nicaragua the 
extent of United States aid programs to them. The President 
shall periodically report to the Congress on the effectiveness 
of this efforts to carry out this subsection.''.

            [construction of productive enterprise in egypt

    [Sec. 203. The first sentence of section 620(k) of the 
Foreign Assistance Act of 1961 is amended by inserting ``, 
fiscal year 1980, or fiscal year 1981'' immediately after 
``fiscal year 1977''.

              [TITLE III--DEVELOPMENT ASSISTANCE PROGRAMS

             [agriculture, rural development, and nutrition

    [Sec. 301. The first sentence of section 103(a)(2) of the 
Foreign Assistance Act of 1961 is amended to read as follows: 
``There are authorized to be appropriated to the President for 
purposes of this section, in addition to funds otherwise 
available for such purposes, $713,500,000 for the fiscal year 
1981.''.

                         [population and health

    [Sec. 302. (a) Section 104(b) of the Foreign Assistance Act 
of 1961 is amended by inserting after ``information and 
services'' in the second sentence the following: ``, including 
also information and services which relate to and support 
natural family planning methods,''.
    [(b) The first sentence of section 104(g) of such Act is 
amended to read as follows: ``There are authorized to be 
appropriated to the President, in addition to funds otherwise 
available for such purposes--
            [``(1) $238,000,000 for the fiscal year 1981 to 
        carry out subsection (b) of this section, of which not 
        less than $3,000,000 shall be available only to support 
        the World Health Organization's Special Program of 
        Research, Development and Research Training in Human 
        Reproduction; and
            [``(2) $145,300,000 for the fiscal year 1981 to 
        carry out subsection (c) of this section.''.

               [education and human resources development

    [Sec. 303. The second sentence of section 105(a) of the 
Foreign Assistance Act of 1961 is amended to read as follows: 
``There are authorized to be appropriated to the President for 
purposes of this section, in addition to funds otherwise 
available for such purposes, $101,000,000 for the fiscal year 
1981, which are authorized to remain available until 
expended.''.

  [energy, private voluntary organizations, and selected development 
                               activities

    [Sec. 304. (a) The section caption of section 106 of the 
Foreign Assistance Act of 1961 is amended by striking out 
``technical assistance, energy, research, reconstruction, and 
selected development problems'' and inserting in lieu thereof 
``energy, private voluntary organizations, and selected 
development activities''.
    [(b) Subsection (a) of such section is amended--
            [(1) by inserting ``(A)'' immediately after 
        ``(a)(1)'';
            [(2) by striking out ``(2)'', ``(3)'', and ``(4)'' 
        and inserting in lieu thereof ``(B)'', ``(C)'', and 
        ``(D)'', respectively;
            [(3) by striking out ``(A)'', ``(B)'', and ``(C)'' 
        in paragraph (3) and inserting in lieu thereof ``(i)'', 
        ``(ii)'', and ``(iii)'', respectively; and
            [``(4) by adding at the end thereof the following 
        new paragraph:
    [``(2) The Congress also finds that energy production from 
renewable, decentralized sources and energy conservation are 
vital elements in the development process. Inadequate access by 
the poor to energy sources as well as the prospect of depleted 
fossil fuel reserves and higher energy prices require an 
enhanced effort to expand the energy resources of developing 
countries through greater emphasis on renewable sources. 
Renewable and decentralized energy technologies have particular 
applicability for the poor, especially in rural areas.''.
    [(c) Subsection (b) of such section is amended--
            [(1) by inserting ``(A)'' immediately after 
        ``(b)(1)'';
            [(2) by striking out ``fiscal year 1980 shall be 
        used for purposes of paragraph (1)'' and inserting in 
        lieu thereof ``fiscal year 1981 shall be used for 
        purposes of subparagraph (A)''.
    [(d) Such section is further amended by inserting at the 
end of subsection (b) the following:
    [``(2) The President is authorized to furnish assistance 
under this chapter for cooperative programs with developing 
countries in energy production and conservation through 
research on and development and use of small-scale, 
decentralized, renewable energy sources for rural areas carried 
out as integral parts of rural development efforts in 
accordance with section 103 of this Act. Such programs shall 
also be directed toward the earliest practicable development 
and use of energy technologies which are environmentally 
acceptable, require minimum capital investment, are most 
acceptable to and affordable by the people using them, are 
simple and inexpensive to use and maintain, and are 
transferable from one region of the world to another. Such 
programs may include research on and the development, 
demonstration, and application of suitable energy technologies 
(including use of wood); analysis of energy uses, needs, and 
resources; training and institutional development; and 
scientific interchange.
    [``(c) The agency primarily responsible for administering 
this part and the Department of Energy shall coordinate with 
one another, to the maximum extent possible, the planning and 
implementation of energy programs under this chapter.''.
    [(e) Existing subsection (c) of such section is 
redesignated as subsection (d).
    [(f) Existing subsection (d) of such section is amended to 
read as follows:
    [``(e)(1) There are authorized to be appropriated to the 
President for purposes of this section, in addition to funds 
otherwise available for such purposes, $140,000,000 for the 
fiscal year 1981.
    [``(2) Amounts appropriated under this section are 
authorized to remain available until expended.''.
    [(g) Section 119 of such Act is repealed.

                 [human rights in developing countries

    [Sec. 305. Section 116(e) of the Foreign Assistance Act of 
1961 is amended by striking out ``fiscal year 1980'' and 
inserting in lieu thereof ``fiscal year 1981''.

                       [sahel development program

    [Sec. 306. Section 121(c) of the Foreign Assistance Act of 
1961 is amended by inserting immediately after the second 
sentence the following new sentence: ``In addition to the 
amounts authorized in the preceding sentences and to funds 
otherwise available for such purposes, there are authorized to 
be appropriated to the President for purposes of this section 
$88,442,000 for the fiscal year 1981.''.

         [private and voluntary organizations and cooperatives

    [Sec. 307. Section 123 of the Foreign Assistance Act of 
1961 is amended--
            [(1) in subsection (a) by inserting before the 
        period at the end of the fourth sentence the following: 
        ``and, if necessary and determined on a case-by-case 
        basis, for the purpose of sharing the cost of 
        developing programs related to such activities'';
            [(2) in subsection (a) by inserting before the 
        period at the end of the fifth sentence the following: 
        ``and to establish simplified procedures for the 
        development and approval of programs to be carried out 
        by such private and voluntary organizations and 
        cooperatives as have demonstrated a capacity to 
        undertake effective development activities''; and
            [(3) By adding at the end thereof the following new 
        subsection:
    [``(e) Prohibitions on assistance to countries contained in 
this or any other Act shall not be construed to prohibit 
assistance by the agency primarily responsible for 
administering this part in support of programs of private and 
voluntary organizations and cooperatives already being 
supported prior to the date such prohibition becomes 
applicable. The President shall take into consideration, in any 
case in which statutory prohibitions on assistance would be 
applicable but for this subsection, whether continuation of 
support for such programs is in the national interest of the 
United States. If the President continues such support after 
such date, he shall prepare and transmit, not later than thirty 
days after such date, to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate a report setting forth the reasons for 
such continuation.''.

                 [relatively least developed countries

    [Sec. 308. The last sentence of section 124(c)(2) of the 
Foreign Assistance Act of 1961 is amended--
            [(1) by striking out ``1980'' and inserting in lieu 
        thereof ``1981''; and
            [(2) by striking out ``$18,800,000'' and inserting 
        in lieu thereof ``$10,845,000''.

               [international organizations and programs

    [Sec. 309. Section 302(a)(1) of the Foreign Assistance Act 
of 1961 is amended to read as follows:
    [``(a)(1) There are authorized to be appropriated to the 
President for grants to carry out the purposes of this chapter, 
in addition to funds available under any other Acts for such 
purposes, $233,350,000 for the fiscal year 1981.''.

                         [participant training

    [Sec. 310. Section 617 of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
sentence: ``In order to ensure the effectiveness of assistance 
under this Act, such expenses for orderly termination of 
programs may include the obligation and expenditure of funds to 
complete the training or studies outside their countries of 
origin of students whose course of study or training program 
began before assistance was terminated.''.

                   [reimbursable development programs

    [Sec. 311. Section 661 of the Foreign Assistance Act of 
1961 is amended in the first sentence by striking out 
``$3,800,000 of the funds made available for the purposes of 
this Act for the fiscal year 1980'' and inserting in lieu 
thereof ``$4,000,000 of the funds made available for the fiscal 
year 1981 for the purposes of this Act''.

        [institute for scientific and technological cooperation

    [Sec. 312. The first sentence of section 410 of the 
International Development Cooperation Act of 1979 is amended by 
striking out ``$23,750,000 for the fiscal year 1980'' and 
inserting in lieu thereof ``$12,000,000 for the fiscal year 
1981''.

                  [assistance to the eastern caribbean

    [Sec. 313. (a) The Congress urges the President to use up 
to $7,000,000 for the fiscal year 1981 for bilateral 
development assistance for the countries of the eastern 
Caribbean.

                   [assistance for equatorial guinea

    [Sec. 314. The President is urged to provide up to 
$3,000,000 of the funds authorized to be appropriated for the 
fiscal year 1981 by this title for assistance to Equatorial 
Guinea if he deems that conditions in that country warrant such 
assistance.

                      [caribbean development bank

    [Sec. 315. Notwithstanding section 620(r) of the Foreign 
Assistance Act of 1961, the President may, after consultation 
with the Committee on Foreign Relations of the Senate and the 
Committee on Foreign Affairs of the House of Representatives, 
make arrangements at his discretion for the assumption by the 
recipient members of the Caribbean Development Bank of any 
loans made to the Bank under the authority of that Act.]
          * * * * * * *

                [reduction of postharvest losses of food

    [Sec. 317. It is the sense of the Congress that--
            [(1) the President should reaffirm the policy of 
        the United States Government to support the goal 
        established by the United Nations General Assembly of 
        reducing by 50 percent postharvest losses of food in 
        developing countries; and
            [(2) the President, acting through the Agency for 
        International Development, should increase 
        substantially the proportion of funds made available 
        under the Foreign Assistance Act of 1961 for the 
        purpose of assisting, together with other donor 
        countries and with developing countries, in the 
        reduction of postharvest losses of food in developing 
        countries.

                  [TITLE IV--OTHER ASSISTANCE PROGRAMS

                 [american schools and hospitals abroad

    [Sec. 401. Section 214(c) of the Foreign Assistance Act of 
1961 is amended by striking out $25,000,000 for the fiscal year 
1980'' and inserting in lieu thereof ``$30,000,000 for the 
fiscal year 1981''.

                    [international narcotics control

    [Sec. 402. (a) Section 482(a) of the Foreign Assistance Act 
of 1961 is amended to read as follows:
    [``(a)(1) To carry out the purposes of section 481, there 
are authorized to be appropriated to the President $38,573,000 
for the fiscal year 1981.
    [``(2) Funds appropriated under this subsection for the 
fiscal year 1981 may not be used for a contribution to the 
United Nations Fund for Drug Abuse Control in an amount which 
exceeds the lesser of $3,000,000 or 50 percent of the total 
contributions by all countries to such Fund for the calendar 
year with respect to which the United States contribution is 
made.
    [``(3) Amounts appropriated under this subsection are 
authorized to remain available until expended.''.
    [(b) Section 482 of such Act is amended by adding at the 
end thereof the following new subsection:
    [``(c) Notwithstanding section 1415 of the Supplemental 
Appropriation Act, 1953, section 508 of the General Government 
Matters, Department of Commerce, and Related Agencies 
Appropriation Act, 1962, and section 105 of the Agricultural 
Trade Development and Assistance Act of 1954, up to the 
equivalent of $10,000,000 in currencies or credits of the 
Government of Pakistan held by the United States shall, to such 
extent as may be provided in an appropriation Act, be available 
to the President for the fiscal year 1981 (and shall remain 
available until expended) to carry out the purposes of section 
481 through assistance to the Government of Pakistan. 
Notwithstanding any other provision of law, the availability or 
expenditure of such foreign currencies shall not affect or 
reduce appropriations otherwise available to carry out the 
administration of the international narcotics control 
program.''.
    [(c) Notwithstanding the provisions of section 482(a)(2) of 
the Foreign Assistance Act of 1961 as in effect immediately 
prior to the enactment of this Act, funds appropriated for the 
fiscal year 1980 to carry out the purposes of section 481 of 
that Act which were obligated for assistance for Colombia may 
be used for fixed-wing aircraft, communications equipment, and 
such other equipment and operational support, including 
aviation services, as are essential to the Colombian anti-
narcotics enforcement program.

                   [international disaster assistance

    [Sec. 403. Section 492 of the Foreign Assistance Act of 
1961 is amended by striking out ``$21,800,000 for the fiscal 
year 1980'' and inserting in lieu thereof ``$25,000,000 for the 
fiscal year 1981''.

                [disaster assistance borrowing authority

    [Sec. 404. (a) Section 492 of the Foreign Assistance Act of 
1961 is amended--
            [(1) by inserting ``(a)'' immediately before 
        ``There is''; and
            [(2) by adding at the end thereof the following new 
        subsection:
    [``(b) In addition to amounts otherwise available to carry 
out this chapter, up to $50,000,000 in any fiscal year may be 
obligated against appropriations under this part (other than 
this chapter) for use in providing assistance in accordance 
with the authorities and general policies of section 491. 
Amounts subsequently appropriated under this chapter with 
respect to a disaster may be used to reimburse any 
appropriation account against which obligations were incurred 
under this subsection with respect to that disaster.''.
    [(b) Section 491(b) of such Act is amended by striking out 
``limitation on appropriations'' and inserting in lieu thereof 
``limitations.''

                [african rehabilitation and resettlement

    [Sec. 405. Section 495F of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 495F. African Rehabilitation and Resettlement.--(a) 
The Congress recognizes that United States assistance is 
necessary to help developing countries in Africa meet the 
longer term rehabilitation and resettlement needs of displaced 
persons and other innocent victims of civil strife. Therefore, 
the President is authorized to furnish assistance, on such 
terms and conditions as he may determine, for the longer term 
rehabilitation and resettlement needs of such victims. Funds 
for this purpose should be used to assist African governments 
in providing semipermanent housing, potable water supply 
systems, and sanitary facilities which are generally not 
provided by existing refugee relief agencies.
    [``(b) There are authorized to be appropriated to the 
President for the purposes of this section, in addition to 
amounts otherwise available for such purposes, $15,000,000 for 
the fiscal year 1981. Amounts appropriated under this 
subsection are authorized to remain available until expended.
    [``(c) Assistance under this section shall be provided in 
accordance with the policies and general authorities contained 
in section 491.''.

                   [migration and refugee assistance

    [Sec. 406. Section 102(a)(4) of the Department of State 
Authorization Act, Fiscal Years 1980 and 1981, is amended by 
striking out ``$457,798,000'' and inserting in lieu thereof 
``$517,209,000''.

                   [public law 480 transfer authority

    [Sec. 407. Section 403 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by adding at 
the end thereof the following:
    [``(c) Notwithstanding any other provision of this Act or 
any other Act, if the President determines it to be necessary 
for the purposes of this Act, he may direct that not to exceed 
15 percent of the funds available in any fiscal year for 
carrying out any title of this Act be used to carry out any 
other title of this Act.''.

                              [east timor

    [Sec. 408. It is the sense of the Congress that the 
President should take all appropriate measures to--
            [(1) continue to support and encourage relief 
        operations by the Government of Indonesia and by 
        international relief agencies in East Timor;
            [(2) assist the Government of Indonesia to 
        facilitate the reuniting of families separated because 
        of developments in recent years in East Timor; and
            [(3) encourage the Government of Indonesia to allow 
        access to East Timor by international journalists.]
          * * * * * * *

                         [TITLE VI--PEACE CORPS

                    [authorization of appropriations

    [Sec. 601. (a) Section 3(b) of the Peace Corps Act is 
amended by striking out ``fiscal year 2980 not to exceed 
$105,404,000'' and inserting in lieu thereof ``fiscal year 1981 
not to exceed $118,000,000''.
    [(b) Section 3(c) of such Act is amended by striking out 
``fiscal year 1980'' and inserting in lieu thereof ``fiscal 
year 1981''.
    [(c) Section 15(d)(7) of such Act is amended by striking 
out ``$5,000'' and inserting in lieu thereof ``$20,000''.

           [amendments to the domestic volunteer service act

    [Sec. 602. (a) Section 401 of the Domestic Volunteer 
Service Act of 1973 is amended--
            [(1) by striking out ``two Associate Directors'' in 
        the first sentence and inserting in lieu thereof ``one 
        Associate Director'';
            [(2) by striking out ``One such'' and by inserting 
        in lieu thereof ``Such''; and
            [(3) by striking out ``, and the other such 
        Associate Director'' and all that follows through ``(22 
        U.S.C. 2501 et seq.)''.
    [(b) Section 405 of such Act is amended--
            [(1) in subsection (a) by striking out ``and the 
        Peace Corps Act (22 U.S.C. 2501 et seq.)''.
            [(2) in subsection (b)(1) by striking out ``and the 
        Peace Corps Act (22 U.S.C. 2501 et seq.)''; and
            [(3) in subsection (b)(2)--
                    [(A) by striking out ``and the Peace Corps 
                Act'', and
                    [(B) by striking out ``Acts'' both places 
                it appears and inserting in lieu thereof 
                ``Act''.

            [utilization of returned peace corps volunteers

    [Sec. 603. The Director of the Peace Corps shall develop a 
plan providing for more effective utilization of returned Peace 
Corps volunteers in order to promote a better understanding of 
other peoples and cultures on the part of the American people. 
The Director shall report to the Congress no later than January 
15, 1981, on the plan and necessary procedures for implementing 
the plan.

                  [TITLE VII--MISCELLANEOUS PROVISIONS

                             [human rights

    [Sec. 701 (a) Section 116(a) of the Foreign Assistance Act 
of 1961 is amended by inserting ``causing the disappearance of 
persons by the abduction and clandestine detention of those 
persons,'' immediately after ``without charges,''.
    [(b) Section 502B(d)(1) of such Act is amended by inserting 
``causing the disappearance of persons by the abduction and 
clandestine detention of those persons,'' immediately after 
``trial,''.
    [(c) Section 112(a) of the Agricultural Trade Development 
and Assistance Act of 1954 is amended by inserting ``causing 
the disappearance of persons by the abduction and clandestine 
detention of those persons,'' immediately after ``without 
charges,''.

                  [auditing of international programs

    [Sec. 702. (a) Section 301(d) of the Foreign Assistance Act 
of 1961 is amended by adding at the end thereof the following: 
``The Comptroller General shall report simultaneously to the 
Congress and the President the results of the audits conducted 
under this subsection.''.
    [(b) Section 301(e) of such Act is amended--
            [(1) in the first sentence of paragraph (1)--
                    [(A) by striking out ``a single 
                professionally qualified group''; and inserting 
                in lieu thereof ``of external, professionally 
                qualified groups'', and
                    [(B) by striking out ``and evaluation'' and 
                inserting in lieu thereof ``evaluation, and 
                audits'';
            [(2) in the second sentence of paragraph (1)--
                    [(A) by striking out ``group'' both places 
                it appears and inserting in lieu thereof 
                ``groups'', and
                    [(B) by striking out ``and evaluation'' and 
                inserting in lieu thereof ``evaluation, or 
                audit'';
            [(3) in the third sentence of paragraph (1) by 
        striking out ``group'' and inserting in lieu thereof 
        ``groups'';
            [(4) in the first sentence of paragraph (2) by 
        striking out ``and evaluation'' and inserting in lieu 
        thereof ``evaluation, and audits'';
            [(5) in the second sentence of paragraph (2) by 
        striking out ``and evaluation'' and inserting in lieu 
        thereof ``evaluation, or audit''; and
            [(6) in the second sentence of paragraph (3) by 
        inserting ``his evaluation of such reports and related 
        information,'' immediately after ``to the President''.

                [reports on international organizations

    [Sec. 703. Chapter 3 of part I of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 306. Reports on International Organizations.--(a) 
The annual reports to the Congress under section 2 of the Act 
of September 21, 1950 (64 Stat. 902; 22 U.S.C. 262a), shall be 
submitted within nine months after the end of the fiscal year 
to which they relate.
    [``(b)(1) The President shall submit semiannual reports to 
the Congress listing all voluntary contributions by the United 
States Government to international organizations. One of the 
semiannual reports shall be submitted no later than July 1 and 
shall list all contributions made during the first six months 
of the then current fiscal year. The other semiannual report 
shall be submitted no later than January 1 and shall list all 
contributions made during the last six months of the preceding 
fiscal year. Each such report shall specify the Government 
agency making the voluntary contribution, the international 
organization to which the contribution was made, the amount and 
form of the contribution, and the purpose of the contribution. 
Contributions shall be listed on both an agency-by-agency basis 
and an organization-by-organization basis.
    [``(2) In order to facilitate the preparation of the 
reports required by paragraph (1), the head of any Government 
agency which makes a voluntary contribution to any 
international organization shall promptly report that 
contribution to the Director of the Office of Management and 
Budget.
    [``(3) As used in this subsection, the term `contribution' 
means any contribution of any kind, including the furnishing of 
funds or other financial support, services of any kind 
(including the use of experts or other personnel), or 
commodities, equipment, supplies, or other materiel.''.

            [technical amendment correcting cross reference

    [Sec. 704. Section 502B(a)(2) of the Foreign Assistance Act 
of 1961 is amended by striking out ``Export Administration Act 
of 1969'' and inserting in lieu thereof ``Export Administration 
Act of 1979''.

                              [procurement

    [Sec. 705. (a) Section 604(e) of the Foreign Assistance Act 
of 1961 is amended by inserting the following immediately 
before the period at the end thereof: ``, unless the commodity 
to be financed could not reasonably be procured in the United 
States in fulfillment of the objectives of a particular 
assistance program under which such commodity procurement is to 
be financed''.
    [(b) Section 604 of such Act is amended by adding at the 
end thereof the following new subsection:
    [``(g) None of the funds authorized to be appropriated or 
made available for obligation or expenditure under this Act may 
be made available for the procurement of construction or 
engineering services from advanced developing countries, 
eligible under the Geographic Code 941, which have attained a 
competitive capability in international markets for 
construction services or engineering services.''.

                           [inspector general

    [Sec. 706. Section 624(g) of the Foreign Assistance Act of 
1961 is amended--
            [(1) by striking out ``Auditor General'' each place 
        is appears and inserting in lieu thereof ``Inspector 
        General'';
            [(2) in paragraph (3)--
                    [(A) by striking out ``and investigative'' 
                and inserting in lieu thereof ``, 
                investigative, and security''; and
                    [(B) by adding at the end thereof the 
                following: ``In addition, to the extent 
                requested by the Director of the United States 
                International Development Cooperation Agency 
                (after consultation with the Administrator), 
                the Inspector General shall with respect to the 
                duties and responsibilities of that Agency 
                supervise, direct, and control all audit, 
                investigative, and security activities relating 
                to programs and operations within the require 
                International Development Cooperation 
                Agency.'';
            [(3) in paragraph (4) by inserting ``and the 
        Director'' immediately after ``Administrator''; and
            [(4) by adding at the end thereof the following:
    [``(6) The Inspector General shall have the authority to 
require by subpena the production of all information, 
documents, reports, answers, records, accounts, papers, and 
other data and documentary evidence necessary in the 
performance of functions under this subsection. Any such 
subpena, in the case of contumacy or refusal to obey, shall be 
enforceable by order of any appropriate United States district 
court. Procedures other than subpenas shall be used to obtain 
documents and information from agencies of the United States 
Government.
    [``(7) In carrying out the responsibilities specified in 
paragraph (3), the Inspector General shall--
            [``(A) comply with standards established by the 
        Comptroller General of the United States for audits of 
        Federal establishments, organizations, programs, 
        activities, and functions;
            [``(B) establish guidelines for determining when it 
        is appropriate to use non-Federal auditors; and
            [``(C) take appropriate steps to assure that any 
        work performed by non-Federal auditors complies with 
        the standards established by the Comptroller General as 
        described in subparagraph (A).
    [``(8) The Administrator shall provide the Inspector 
General with appropriate and adequate office space at central 
and field office locations of the agency primarily responsible 
for administering part I of this Act, together with such 
equipment, office supplies, and communications facilities and 
services as may be necessary for the operation of such offices 
and the equipment and facilities located in such offices. In 
establishing and staffing such field offices, the Administrator 
shall not be bound by overseas personnel ceilings established 
under the Monitoring Overseas Direct Employment policy.
    [``(9)(A) The Inspector General may receive and investigate 
complaints or information from any employee of or under the 
United States International Development Cooperation Agency 
concerning the possible existence of an activity constituting a 
violation of law, rules, or regulations, constituting 
mismanagement, gross waste of funds, abuse of authority, or 
constituting a substantial and specific danger to the public 
health and safety.
    [``(B) The Inspector General shall not, after receipt of a 
complaint or information from an employee, disclose the 
identity of the employee without the consent of the employee, 
unless the Inspector General determines such disclosure is 
unavoidable during the course of the investigation.
    [``(C) Any employee who has authority to take, direct 
others to take, recommend, or approve any personnel action 
shall not exercise or threaten to exercise such authority in 
order to take any action against any employee as a reprisal for 
making a complaint or disclosing information to the Inspector 
General, unless the complaint was made or the information 
disclosed with the knowledge that it was false or with willful 
disregard for its truth or falsity.''.

                             [annual report

    [Sec. 707. Section 634(a) of the Foreign Assistance Act of 
1961 is amended--
            [(1) by striking out ``and'' at the end of 
        paragraph (5);
            [(2) by redesignating paragraph (6) as paragraph 
        (8); and
            [(3) by inserting after paragraph (5) the following 
        new paragraphs:
            [``(6) the dollar value of all official development 
        assistance, security assistance, international disaster 
        assistance, refugee assistance, and international 
        narcotics control assistance provided by each 
        government of a country which is a member of the 
        Organization for Economic Cooperation and Development 
        or of the Organization of Petroleum Exporting 
        Countries;
            [``(7) the percentage which each type of assistance 
        described in paragraph (6) represents of (A) the gross 
        national product of each country referred to in 
        paragraph (6), and (B) the budget of the government of 
        such country, as well as the per capita contribution 
        for each country for each type of assistance described 
        in paragraph (6); and

                         [shipping differential

    [Sec. 708. Section 640C of the Foreign Assistance Act of 
1961 is amended by striking out ``Part V'' and inserting in 
lieu thereof ``chapter 4 of part II''.

                          [operating expenses

    [Sec. 709. Section 667(a) of the Foreign Assistance Act of 
1961 is amended--
            [(1) by striking out ``fiscal year 1980'' and 
        inserting in lieu thereof ``fiscal year 1981''; and
            [(2) in paragraph (1) by striking out 
        ``$263,000,000'' and inserting in lieu thereof 
        ``$293,800,000''.

       [interagency group on human rights and foreign assistance

    [Sec. 710. It is the sense of the Congress that--
            [(1) the Interagency Group on Human Rights and 
        Foreign Assistance has been an effective mechanism for 
        coordinating and implementing United States human 
        rights policies;
            [(2) the President should consider establishing the 
        Interagency Group on a more permanent basis;
            [(3) the Interagency Group should examine proposals 
        for not only economic assistance but also for security 
        assistance; and
            [(4) the President should report his 
        recommendations for strengthening the Interagency Group 
        to the Congress no later than July 1, 1981.

                       [peace in the middle east

    [Sec. 711. (a) It is the sense of the Congress that all 
parties to the Arab-Israeli conflict need to reaffirm their 
unequivocal commitment to the peace process in order to achieve 
further progress toward a comprehensive settlement, to 
reinforce the principles of the Camp David accords, and to take 
actions to encourage parties not currently involved in the 
peace process to become active participants in peace efforts.
    [(b) It is further the sense of the Congress that to 
further these goals (1) all parties to the conflict should 
accept Israel's unequivocal right to exist within secure and 
recognized borders; (2) the Governments of Israel and Egypt 
should maintain and strengthen their commitment to the process 
of normalization of relations and continue actions to support 
that commitment; (3) the Governments of Israel and Egypt should 
reaffirm their commitment to United Nations Resolution 242 and 
its applicability, in all its aspects, to territories under 
negotiations; and (4) the governments of countries in the 
Middle East should assure that their policies and actions are 
consistent with the objectives of achieving peace and of 
involving other parties in the peace process.

                         [assistance for jordan

    [Sec. 712. It is the sense of the Congress that for Jordan 
to receive any funds authorized to be appropriated by this Act, 
it should be judged by the President that Jordan is acting in 
good faith to achieve peace in the Middle East and that the 
expenditure of such funds for Jordan will serve to further 
peace in the Middle East.

                            [cuban refugees

    [Sec. 715. (a) The Congress finds that--
            [(1) the flow of refugees for political, economic, 
        or other compelling reasons is a growing and world-wide 
        phenomenon;
            [(2) the United States represents freedom of 
        thought and action and economic opportunity and has 
        historically played a major role in providing a home to 
        the refugees of the world;
            [(3) an orderly and lawful refugee process is 
        necessary for the furtherance of United States domestic 
        well-being;
            [(4) continuation of the traditional compassionate 
        and humanitarian policy of the United States regarding 
        entry to its shores of refugees and other victims of 
        oppression is threatened by the precipitate influx of 
        large numbers of Cubans fleeing their country;
            [(5) the United States has sought to negotiate with 
        the Government of Cuba to establish a lawful, safe, and 
        orderly process by which Cubans may be allowed to leave 
        their country; and
            [(6) the Cuban refugee crisis is a problem of 
        international concern and other nations should 
        contribute to its resolution.
    [(b)(1) The Congress urges the President to take the 
necessary steps to encourage and secure greater international 
cooperation with respect to the large number of Cuban natives 
who have recently fled or are attempting to flee Cuba. Such 
steps should include seeking the agreement of other countries 
to admit some of those persons into their respective countries 
and to contribute funds and other assistance for the 
resettlement of those persons.
    [(2) In order to encourage countries throughout the world 
which are recipients of United States bilateral and 
multilateral assistance to permit and to help finance the 
resettlement of Cuban and other refugees within their borders, 
the President shall, to the maximum extent feasible, attempt to 
channel such assistance to countries which have demonstrated a 
willingness to provide assistance to Cuban and other refugees.
    [(c) It is the sense of the Congress that, in carrying out 
subsection (b)(1), the President should seek the discussion, in 
an appropriate international forum such as the United Nations 
or the Organization of American States, of the situation 
involving the flight of large numbers of Cuban natives from 
Cuba, of the resettlement of Cuban refugees, and of means by 
which a more orderly process may be established to handle 
future crises of a similar nature.

            [incarceration and deportation of certain cubans

    [Sec. 716. The Congress finds that the United States 
Government has already incarcerated recently arrived Cubans who 
are admitted criminals, are security threats, or have incited 
civil disturbances in Federal processing facilities. The 
Congress urges the Executive branch, consistent with United 
States law, to seek the deportation of such individuals.

  [prohibition on assistance to the governments of cuba, vietnam, and 
                                cambodia

    [Sec. 717. None of the funds authorized to be appropriated 
by this Act may be used to provide assistance to the 
Governments of Cuba, Vietnam, or Cambodia. Nothing in this 
section shall be construed to prohibit food assistance or 
humanitarian assistance which is distributed directly to the 
people of Cambodia.

  [cooperation of other governments in the boycott of the 1980 summer 
                        olympic games in moscow

    [Sec. 718. In determining the levels of assistance to be 
provided to a foreign government with funds authorized to be 
appropriated by this Act, the President shall take into account 
the position of that government with respect to the United 
States proposed boycott of the 1980 summer Olympic games in 
Moscow.

                          [elections in uganda

    [Sec. 719. The President shall encourage the holding of 
free, open elections in Uganda and shall, in considering 
assistance for Uganda with funds authorized to be appropriated 
by this Act, take into account whether such elections are 
held.]
                              ----------                              


           INTERNATIONAL DEVELOPMENT COOPERATION ACT OF 1979

                              [short title

    [Section 1. This Act may be cited as the ``International 
Development Cooperation Act of 1979''.

                    [TITLE I--DEVELOPMENT ASSISTANCE

             [agriculture, rural development, and nutrition

    [Sec. 101. (a) Section 103(a)(2) of the Foreign Assistance 
Act of 1961 is amended by amending the first sentence to read 
as follows: ``There are authorized to be appropriated to the 
President for purposes of this section in addition to funds 
otherwise available for such purposes, $659,000,000 for the 
fiscal year 1980.''.
    [(b) Section 103(b) of such Act is amended by adding at the 
end thereof the following new paragraph:
    [``(3) The Congress recognizes that the accelerating loss 
of forests and tree cover in developing countries undermines 
and offsets efforts to improve agricultural production and 
nutrition and otherwise to meet the basic human needs of the 
poor. Deforestation results in increased flooding, reduction in 
water supply for agricultural capacity, loss of firewood and 
needed wood products, and loss of valuable plants and animals. 
In order to maintain and increase forest resources, the 
President is authorized to provide assistance under this 
section for forestry projects which are essential to fulfill 
the fundamental purposes of this section. Emphasis shall be 
given to community woodlots, agroforestry, reforestation, 
protection of watershed forests, and more effective forest 
management.''.
    [(c) Section 103 of such Act is amended by adding at the 
end thereof the following new subsection:
    [``(f) The Congress finds that the efforts of developing 
countries to enhance their national food security deserves 
encouragement as a matter of United States development 
assistance policy. Measures complementary to assistance for 
expanding food production in developing countries are needed to 
help assure that food becomes increasingly available on a 
regular basis to the poor in such countries. Therefore, United 
States bilateral assistance under this Act and the Agricultural 
Trade Development and Assistance Act of 1954, and United States 
participation in multilateral institutions, shall emphasize 
policies and programs which assist developing countries to 
increase their national food security by improving their food 
policies and management and by strengthening national food 
reserves, with particular concern for the needs of the poor, 
through measures encouraging domestic production, building 
national food reserves, expanding available storage facilities, 
reducing postharvest food losses, and improving food 
distribution.''.

                         [population and health

    [Sec. 102. (a) The first sentence of section 104(g) of the 
Foreign Assistance Act of 1961 is amended to read as follows: 
``There are authorized to be appropriated to the President, in 
addition to funds otherwise available for such purposes--
            [``(1) $201,000,000 for the fiscal year 1980 to 
        carry out subsection (b) of this section; and
            [``(2) $141,000,000 for the fiscal year 1980 to 
        carry out subsection (c) of this section, of which 
        amount not less than $4,000,000 shall be made available 
        to assist in the development of the John Sparkman 
        Center for International Public Health Education to be 
        located at the University of Alabama at Birmingham.''.
    [(b) Section 104(d)(1) of such Act is amended by inserting 
immediately before the period at the end of the second sentence 
the following: ``, and through community-based development 
programs which give recognition to people motivated to limit 
the size of their families''.

               [education and human resources development

    [Sec. 103. (a) The second sentence of section 105(a) of the 
Foreign Assistance Act of 1961 is amended to read as follows: 
``There are authorized to be appropriated to the President for 
purposes of this section, in addition to funds otherwise 
available for such purposes, $105,000,000 for the fiscal year 
1980, which are authorized to remain available until 
expended.''.
    [(b) Section 105(b) of such Act is amended by adding at the 
end thereof the following new sentence: ``Assistance under this 
section shall also be provided for advanced education and 
training of people of developing countries in such disciplines 
as are required for planning and implementation of public and 
private development activities.''.

              [development of indigenous energy resources

    [Sec. 104. (a) Section 102(b) of the Foreign Assistance Act 
of 1961 is amended--
            [(1) in paragraph (5) by striking out ``and'' 
        immediately after the last semicolon and by inserting 
        ``; and energy development and production'' immediately 
        before the period; and
            [(2) in paragraph (7) by inserting ``the 
        development, production, and'' immediately after 
        ``promotes''.
    [(b) Section 106 of such Act is amended--
            [(1) in subsection (a)--
                    [(A) by striking out paragraph (2), and
                    [(B) by redesignating paragraphs (3) 
                through (6) as paragraphs (2) through (5), 
                respectively;
            [(2) by redesignating subsections (a) and (B) as 
        subsections (c) and (d), respectively; and
            [(3) by inserting the following new subsections (a) 
        and (b) immediately after the section caption:
    [``(a)(1) The Congress finds that energy development and 
production are vital elements in the development process, that 
energy shortages in developing countries severely limit the 
development process in such countries, that two-thirds of the 
developing countries which import oil depend on it for at least 
90 percent of the energy which their economies require, and 
that the dramatic increase in world oil prices since 1973 has 
resulted in considerable economic hardship for many developing 
countries. The Congress is concerned that the value and purpose 
of much of the assistance provided to developing countries 
under sections 103, 104, and 105 are undermined by the 
inability of many developing countries to satisfy their energy 
requirements. Unless the energy deficit of the developing 
countries can be narrowed by more fully exploiting indigenous 
sources of energy such as oil, natural gas, and coal, scrace 
foreign exchange will increasingly have to be diverted to oil 
imports, primarily to the detriment of long-term development 
and economic growth.
    [``(2) The Congress recognizes that many developing 
countries lack access to the financial resources and technology 
necessary to locate, explore, and develop indigenous energy 
resources.
    [``(3) The Congress declares that there is potential for at 
least a moderate increase by 1990 in the production of energy 
for commercial use in the developing countries which are not 
members of the Organization of Petroleum Exporting Countries. 
In addition, there is a compelling need for vigorous efforts to 
improve the available data on the location, scale, and 
commercial exploitability of potential oil, natural gas, and 
coal reserves in developing countries especially those which 
are not members of the Organization of Petroleum Exporting 
Countries. The Congress further declares that there are many 
benefits to be gained by the developing countries and by the 
United States and other developed countries through expanded 
efforts to expedite the location, exploration, and development 
of potential sources of energy in developing countries. These 
benefits include, but are not limited to, the following:
            [``(A) The world's energy supply would be increased 
        and the fear of abrupt depletion would be lessened with 
        new energy production. This could have a positive 
        impact upon energy prices in international markets as 
        well as a positive effect upon the balance of payments 
        problems of many developing countries.
            [``(B) Diversification of the world's supplies of 
        energy from fossil fuels would make all countries, 
        developing and developed, less susceptible to supply 
        interruptions and arbitrary production and pricing 
        policies.
            [``(C) Even a moderate increase in energy 
        production in the developing countries would improve 
        their ability to expand commercial trade, foreign 
        investment, and technology transfer possibilities with 
        the United States and other developed countries.
    [``(4) Assistance for the production of energy from 
indigenous resources, as authorized by subsection (b) of this 
section, would be of direct benefit to the poor in developing 
countries because of the overwhelming impact of imported energy 
costs upon the lives of the poor and their ability to 
participate in development.
    [``(b)(1) In order to help developing countries alleviate 
their energy problems by improving their ability to use 
indigenous energy resources to produce the energy needed by 
their economies, the President is authorized to furnish 
assistance, on such terms and conditions as he may determine, 
to enable such countries to prepare for and undertake 
development of their energy resources. Such assistance may 
include data collection and analysis, the training of skilled 
personnel, research on and development of suitable energy 
sources, and pilot projects to test new methods of energy 
production.
    [``(2) Of the funds made available to carry out this 
section, up to $7,000,000 for the fiscal year 1980 shall be 
used for purposes of paragraph (1) to facilitate geological and 
geophysical survey work to locate potential oil, natural gas, 
and coal reserves and to encourage exploration for potential 
oil, natural gas, and coal reserves in developing countries 
which are not members of the Organization of Petroleum 
Exporting Countries.''.
    [(c) Section 119(a) of such Act is amended by amending the 
first sentence to read as follows: ``The President is 
authorized to furnish assistance under this chapter for 
cooperative programs with developing countries in energy 
production and conservation through research on and development 
and use of small-scale, decentralized, renewable energy sources 
for rural areas carried out as integral parts of rural 
development efforts in accordance with section 103 of this 
Act.''.

 [technical assistance, energy, research, reconstruction, and selected 
                          development problems

    [Sec. 105. Section 106(d) of the Foreign Assistance Act of 
1961, as so redesignated by section 104(b)(2) of this Act, is 
amended to read as follows:
    [``(d) There are authorized to be appropriated to the 
President for purposes of this section, in addition to funds 
otherwise available for such purposes, $125,000,000 for the 
fiscal year 1980, which are authorized to remain available 
until expended.''.

                  [human rights studies and activities

    [Sec. 106. Section 116(e) of the Foreign Assistance Act of 
1961 is amended by striking out ``the fiscal year 1979'' and 
inserting in lieu thereof ``the fiscal year 1980''.

           [renewable and unconventional energy technologies

    [Sec. 107. (a) Section 119 of the Foreign Assistance Act of 
1961 is amended by redesignating existing subsection (a) as 
subsection (b) and by inserting the following new subsection 
(a) immediately after the section caption:
    [``(a) The Congress finds that energy production and 
conservation are vital elements in the development process and 
that energy shortages in developing countries severely limit 
the development progress of such countries. Inadequate access 
by the poor to energy sources as well as the prospect of 
depleted fossil fuel reserves and higher energy prices require 
an enhanced effort to expand the energy resources of developing 
countries, primarily through greater emphasis on renewable 
sources. Renewable and decentralized energy technologies have 
particular applicability for the poor, especially in rural 
areas.''.
    [(b) Such section is further amended by redesignating 
existing subsection (b) as subsection (d) and by inserting the 
following new subsection (c) between subsections (b) and (d), 
as so redesignated by this subsection and subsection (a) of 
this section:
    [``(c) Such programs may include research on, and the 
development, demonstration, and application of suitable energy 
technologies (including use of wood); analysis of energy uses, 
needs, and resources; training and institutional development; 
and scientific interchange.''.

               [sahel development program--implementation

    [Sec. 108. Section 121(c) of the Foreign Assistance Act of 
1961 is amended by inserting the following sentence immediately 
after the first sentence: ``In addition to the amount 
authorized in the preceding sentence and to funds otherwise 
available for such purposes, there are authorized to be 
appropriated to the President for purposes of this section 
$25,000,000.''.

                 [relatively least developed countries

    [Sec. 109. Section 124(c)(2) of the Foreign Assistance Act 
of 1961 is amended by adding at the end thereof the following 
new sentence: ``Amounts due and payable during fiscal year 1980 
to the United States from relatively least developed countries 
on loans made under this part (or any predecessor legislation) 
are authorized to be approved for use, in accordance with the 
provisions of paragraph (1) of this subsection, in an amount 
not to exceed $18,800,000.''.

             [development and illicit narcotics production

    [Sec. 110. Chapter 1 of part I of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 126. Development and Illicit Narcotics 
Production.--(a) The Congress recognizes that illicit narcotics 
cultivation is related to overall development problems and that 
the vast majority of all individuals employed in the 
cultivation of illicit narcotics reside in the developing 
countries and are among the poorest of the poor in those 
countries and that therefore the ultimate success of any effort 
to eliminate illicit narcotics production depends upon the 
availability of alternative economic opportunities for those 
individuals, upon other factors which assistance under this 
chapter could address, as well as upon direct narcotics control 
efforts.
    [``(b) In planning programs of assistance under this 
chapter for countries in which there is illicit narcotics 
cultivation, the agency primarily responsible for administering 
this part should give priority consideration to programs which 
would help reduce illicit narcotics cultivation by stimulating 
broader development opportunities.
    [``(c) In furtherance of the purposes of this section, the 
agency primarily responsible for administering this part shall 
cooperate fully with, and share its expertise in development 
matters with, other agencies of the United States Government 
involved in narcotics control activities abroad.''.

                 [american schools and hospitals abroad

    [Sec. 111. Section 214(c) of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``(c) To carry out the purposes of this section, there are 
authorized to be appropriated to the President $25,000,000 for 
the fiscal year 1980, which are authorized to remain available 
until expended.''.

              [housing and other credit guaranty programs

    [Sec. 112. (a) Section 222(a) of the Foreign Assistance Act 
of 1961 is amended--
            [(1) in the second sentence by striking out 
        ``$1,180,000,000'' and inserting in lieu thereof 
        ``$1,555,000,000''; and
            [(2) in the third sentence by striking out ``until 
        September 30, 1980'' and inserting in lieu thereof 
        ``through September 30, 1982''.
    [(b)(1) Section 222A(a) of such Act is amended by striking 
out ``five'' and inserting in lieu thereof ``six''.
    [(2) Section 222A(c) of such Act is amended by striking out 
``$15,000,000'' and inserting in lieu thereof ``$20,000,000''.
    [(3) Section 222A(h) of such Act is amended by striking out 
``until September 30, 1979'' and inserting in lieu thereof 
``through September 30, 1982''.
    [(c) Section 223(f) of such Act is amended--
            [(1) by striking out everything after ``not'' in 
        the first sentence through ``exceeds'' in the second 
        sentence and inserting in lieu thereof ``exceed''; and
            [(2) by striking out ``such Department'' and 
        inserting in lieu thereof ``the Department of Housing 
        and Urban Development''.
    [(d) Section 223(j) of such Act is amended--
            [(1) in the first sentence, by striking out ``(1) 
        and all that follows through ``(3) and inserting in 
        lieu thereof ``are coordinated with and complementary 
        to any development assistance being furnished under 
        chapter 1 of this part and which''; and
            [(2) by striking out the last sentence and 
        inserting in lieu thereof the following: ``Of the total 
        amount of housing guaranties authorized to be issued 
        under section 222 through September 30, 1982, not less 
        than a face amount of $25,000,000 shall be issued for 
        projects in Israel and not less than a face amount of 
        $25,000,000 shall be issued for projects in Israel and 
        not less than a face amount of $25,000,000 shall be 
        issued for projects in Egypt.''.

               [famine prevention and freedom from hunger

    [Sec. 113. Section 297 of the Foreign Assistance Act of 
1961 is amended--
            [(1) in subsection (a)(3) by inserting ``, in the 
        developing countries themselves to the maximum extent 
        practicable,'' immediately after ``university 
        research''; and
            [(2) by amending subsection (c) to read as follows:
    [``(c) To the maximum extent practicable, activities under 
this section shall--
            [``(1) be directly related to the food and 
        agricultural needs of developing countries;
            [``(2) be carried out within the developing 
        countries;
            [``(3) be adapted to local circumstances;
            [``(4) provide for the most effective 
        interrelationship between research, education, and 
        extension in promoting agricultural development in 
        developing countries; and
            [``(5) emphasize the improvement of local systems 
        for delivering the best available knowledge to the 
        small farmers of such countries.''.

               [international organizations and programs

    [Sec. 114. (a) Section 302(1)(1) of the Foreign Assistance 
Act of 1961 is amended to read as follows:
    [``(a)(1) There are authorized to be appropriated to the 
President for grants to carry out the purposes of this chapter, 
in addition to funds available under any other Acts for such 
purposes, $267,280,000 for the fiscal year 1980, of which not 
to exceed $52,000,000 shall be available for voluntary 
contributions to the United Nations Relief and Works Agency for 
Palestine Refugees, except that not more than $42,500,000 of 
this amount may be obligated unless the President certifies to 
the Congress that any contributions above this level have been 
matched by equivalent contributions by members of the 
Organization of Petroleum Exporting Countries.''.
    [(b) Notwithstanding any other provision of law, funds 
appropriated for the fiscal year 1979 to meet the annual 
obligations of membership of the United States in the United 
Nations and its specialized agencies may be made available for 
the furnishing of technical assistance by the United Nations 
and its specialized agencies.

                   [international disaster assistance

    [Sec. 115. Section 492 of the Foreign Assistance Act of 
1961 is amended by striking out ``$25,000,000 for the fiscal 
year 1979'' and inserting in lieu thereof ``$21,800,000 for the 
fiscal year 1980''.

                    [assistance for african refugees

    [Sec. 116. Section 495F of the Foreign Assistance Act of 
1961 is amended in the second sentence--
            [(1) by striking out ``fiscal year 1979'' and 
        inserting in lieu thereof ``fiscal year 1980''; and
            [(2) by striking out ``$15,000,000'' and inserting 
        in lieu thereof ``$14,920,000''.

                [completion of plans and cost estimates

    [Sec. 117. Section 611(b) of the Foreign Assistance Act of 
1961 is amended by striking out ``Memorandum of the President 
dated May 15, 1962'' and inserting in lieu thereof ``Principles 
and Standards for Planning Water and Related Land Resources, 
dated October 25, 1973''.

    [representation of the department of energy on the development 
                         coordination committee

    [Sec. 118. Section 640B(a) of the Foreign Assistance Act of 
1961 is amended in the third sentence by inserting ``Energy,'' 
immediately after ``Agriculture,''.

                   [reimbursable development programs

    [Sec. 119. Section 661 of the Foreign Assistance Act of 
1961 is amended in the first sentence by striking out 
``$3,000,000 of the funds made available for the purposes of 
this Act for the fiscal year 1979'' and inserting in lieu 
thereof ``$3,800,000 of the funds made available for the 
purposes of this Act for the fiscal year 1980''.

                          [operating expenses

    [Sec. 120. Section 667(a) of the Foreign Assistance Act of 
1961 is amended--
            [(1) by striking out ``fiscal year 1979'' and 
        inserting in lieu thereof ``fiscal year 1980''; and
            [(2) in paragraph (1) by striking out 
        ``$261,000,000'' and inserting in lieu thereof 
        ``$263,000,000''.

              [registration of private voluntary agencies

    [Sec. 121. Sections 123(b), 607(a), and 635(c) of the 
Foreign Assistance Act of 1961 and sections 104(f) and 202(a) 
of the Agricultural Trade Development and Assistance Act of 
1954 are amended by striking out ``Advisory Committee on 
Voluntary Foreign Aid'' and ``Advisory Committee'' wherever 
they appear and inserting in lieu thereof ``Agency for 
International Development''.

                         [miscellaneous repeals

    [Sec. 122. Section 105(c), the last sentence of section 
111, sections 113 (b) and (c), and section 118(c) of the 
Foreign Assistance Act of 1961 are repealed. Subsection (d) of 
section 113 of such Act is redesignated as subsection (b).

                       [minority resource center

    [Sec. 123. Section 133 of the International Development and 
Food Assistance Act of 1977 is amended by adding at the end 
thereof the following new subsection:
    [``(c)(1) Upon the enactment of the International 
Development Cooperation Act of 1979, the section on minority 
business established pursuant to subsection (a) shall be 
redesignated as the Minority Resource Center (hereafter in this 
section referred to as the `Center') which shall be responsible 
for increasing the participation of economically and socially 
disadvantaged business enterprises in contract, procurement, 
grant, and research and development activities funded by the 
agency primarily responsible for administering part I of the 
Foreign Assistance Act of 1961 (hereafter in this section 
referred to as the `agency').
    [``(2) The Center shall--
            [``(A) establish, maintain, and disseminate 
        information to, and otherwise serve as an information 
        clearinghouse for, economically and socially 
        disadvantaged business enterprises regarding business 
        opportunities in development assistance programs funded 
        by the agency;
            [``(B) design and conduct programs to encourage, 
        promote, and assist economically and socially 
        disadvantaged business enterprises to secure direct 
        contracts, host country contracts, operation expatriate 
        contracts, indefinite quantity contracts, subcontracts, 
        projects, grants, and research and development 
        contracts in order for such enterprises to participate 
        in such development assistance programs;
            [``(C) conduct market research, planning, economic 
        and business analyses, and feasibility studies to 
        identify business opportunities in such development 
        assistance programs;
            [``(D) develop support mechanisms which will enable 
        socially and economically disadvantaged businesses to 
        take advantage of business opportunities in such 
        development assistance programs; and
            [``(E) enter into such contracts (to such extent or 
        in such amounts as are provided in appropriation Acts), 
        cooperative agreements, or other transactions as may be 
        necessary in the conduct of its functions under this 
        section.
    [``(3) The Administrator of the agency and the Secretary of 
State shall provide the Center with such relevant information, 
including procurement schedules, bids, and specifications with 
respect to development assistance programs funded by the 
agency, as may be requested by the Center in connection with 
the performance of its functions under this section.
    [``(4) There shall be a Director of the Center who shall be 
the chief executive officer of the Center. The Director shall 
be appointed by the Administrator of the agency.
    [``(5)(A) For the purposes of this section, the term 
`economically and socially disadvantaged enterprise' means a 
business--
            [``(i) which is at least 51 percent owned by one or 
        more socially and economically disadvantaged 
        individuals or, in the case of a publicly owned 
        business, at least 51 percent of the stock of which is 
        owned by one or more socially and economically 
        disadvantaged individuals; and
            [``(ii) whose management and daily business 
        operations are controlled by one or more such 
        individuals.
    [``(B) Socially disadvantaged individuals are those who 
have been subjected to racial or ethnic prejudice or cultural 
bias because of their identity as a member of a group without 
regard to their individual qualities.
    [``(C) Economically disadvantaged individuals are those 
socially disadvantaged individuals whose ability to compete in 
the free enterprise system has been impaired due to diminished 
capital and credit opportunities as compared to others in the 
same business area who are not socially disadvantaged. In 
determining the degree of diminished credit and capital 
opportunities, the Administrator of the agency shall consider, 
but not be limited to, the assets and net worth of the socially 
disadvantaged individual.
    [``(6) Not later than February 1 of each year, the 
Administrator of the agency shall submit to the Congress a 
report concerning the activities of the Center during the 
preceding fiscal year.
    [``(7) Of the funds available to the agency for operating 
expenses, up to $950,000 for fiscal year 1980 may be allocated 
to the Center to carry out its functions under this section.
    [``(8) If the Administrator of the agency determines that 
such a consolidation would significantly further the purposes 
of this section and would eliminate unnecessary duplication of 
activity, the Administrator may consolidate the Center with the 
Office of Small and Disadvantaged Business Utilization 
established in the agency by section 15(k) of the Small 
Business Act. Any such consolidation shall ensure that all the 
functions specified in paragraph (2) of this subsection 
continue to be carried out. Before implementing any such 
consolidation, the Administrator shall submit to the Congress a 
detailed report setting forth the reasons for the proposed 
consolidation.''.

         [assistance to latin american and caribbean countries

    [Sec. 125. It is the sense of the Congress that the United 
States should place greater emphasis on public and private 
resources for development programs in Latin America and the 
Caribbean which address problems common to the Western 
Hemisphere. It is further the sense of the Congress that 
provision of such assistance to Latin American and Caribbean 
countries, including transitional developing countries, is 
consistent with the purposes of part I of the Foreign 
Assistance Act of 1961.

          [increased contributions for development assistance

    [Sec. 126. In recognition of the rapidly growing economic 
strength and ability to contribute to international development 
and security efforts of other nations, it is the sense of the 
Congress that the President should take all appropriate steps 
to negotiate with those nations with adequate financial 
resources to provide assistance to increase their contributions 
for development assistance through multilateral programs as 
well as through bilateral efforts.

                       [TITLE II--FOOD FOR PEACE

   [increasing demand for food and encouraging local food production

    [Sec. 201. Section 103(f) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended to read as 
follows:
            [``(f) give consideration to the development and 
        expansion of markets for United States agricultural 
        commodities and local foodstuffs by increasing the 
        effective demand for agricultural commodities through 
        the support of measures to stimulate equitable economic 
        growth in recipient countries, with appropriate 
        emphasis on developing more adequate storage, handling, 
        and food distribution facilities;''.

              [role of indigenous institutions and workers

    [Sec. 202. Section 202(b)(2) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended to read as 
follows:
    [``(2) In order to assure that food commodities made 
available under this title are used effectively and in the 
areas of greatest need, entities through which such commodities 
are distributed shall be encouraged to work with indigenous 
institutions and employ indigenous workers, to the extent 
feasible, to assess nutritional and other needs of beneficiary 
groups, help these groups design and carry out mutually 
acceptable projects, recommend ways of making food assistance 
available that are most appropriate for each local setting, 
supervise food distribution, and regularly evaluate the 
effectiveness of each project.''.

      [alleviating the causes of the need for title ii assistance

    [Sec. 203. Section 206 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by amending 
clause (3) of the first sentence to read as follows: ``(3) such 
agreement provides that the currencies will be used for (A) 
alleviating the causes of the need for the assistance in 
accordance with the purposes and policies specified in section 
103 of the Foreign Assistance Act of 1961, or (B) programs and 
projects to increase the effectiveness of food distribution and 
increase the availability of food commodities provided under 
this title to the neediest individuals in recipient 
countries.''.

      [incentives for entering into food for development programs

    [Sec. 204. (a) Section 301(a) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended--
            [(1) in the first sentence, by inserting ``, or the 
        dollar sales value of the commodities themselves,'' 
        immediately after ``the local sale of such 
        commodities''; and
            [(2) in the second sentence, by striking out ``of 
        funds from the sale of such commodities in the 
        participating country'' and inserting in lieu thereof 
        ``in the participating country of funds from the sale 
        of such commodities or of the commodities themselves''.
    [(b) Section 305 of such Act is amended by adding at the 
end thereof the following new subsection:
    [``(c) When agricultural commodities made available under 
this title are used by the participating country in development 
projects in accordance with the applicable Food for Development 
Program, the dollar sales value of such commodities shall be 
applied, in accordance with subsections (a) and (b) of this 
section, against repayment obligations of that country under 
this Act, with the value of the commodities so used being 
deemed to be disbursements made at the time of such use.''.
    [(c) Section 303(a) of such Act is amended by striking out 
``for each year such funds are to be disbursed'' in the second 
sentence.

[participation of american agriculture in food for development programs

    [Sec. 205. Section 302(c) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by adding at 
the end thereof the following new paragraph:
    [``(4) In developing and carrying out Food for Development 
Programs under this title, consideration shall be given to 
using the capability and expertise of American agriculture, in 
partnership with indigenous individuals and organizations, in 
furthering economic development and increased food 
production.''.

 [full forgiveness of repayment obligations under food for development 
                                programs

    [Sec. 206. Section 305(a) of the Agricultural Trade 
Development and Assistant Act of 1954 is amended by adding at 
the end thereof the following: ``Disbursements of funds from 
the special account in an amount equivalent to the dollar value 
of the credit furnished by the Commodity Credit Corporation 
under section 304(a) shall be deemed to be payment of all 
installments of principal and interest payable thereon for the 
commodities purchased by the participating country for purposes 
of this title.''.

                        [reports under title iii

    [Sec. 207. (a) Section 306 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by inserting 
in the first sentence ``a detailed description of how the 
commodities were used or'' immediately before ``a specific''.
    [(b) The first sentence of section 307(a) of such Act is 
amended to read as follows: ``Each year the President shall 
review all agreements providing for the use under this title of 
the proceeds from the sale of agricultural commodities, or of 
the commodities themselves, with respect to which there was not 
full disbursement during the preceding fiscal year.''.

   [avoiding interference with production or marketing in recipient 
                               countries

    [Sec. 208. Section 401(b) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended in clause 
(2)--
            [(1) by inserting ``or interference with'' 
        immediately after ``to''; and
            [(2) by inserting ``or marketing'' immediately 
        after ``production''.

  [determination of commodity needs and program beneficiaries in each 
                                country

    [Sec. 209. Section 404 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended to read as 
follows:
    [``Sec. 404. (a) The programs of assistance conducted under 
this Act, and the types and quantities of agricultural 
commodities to be made available, shall be directed in the 
national interest toward the attainment of humanitarian and 
developmental objectives as well as the development and 
expansion of United States and recipient country agricultural 
commodity markets. To the maximum extent possible, either the 
commodities themselves shall be used to improve the economic 
and nutritional status of the poor through effective and 
sustainable programs, or any proceeds generated from the sales 
of agricultural commodities shall be used to promote policies 
and programs that benefit the poor.
    [``(b) Country assessments shall be carried out whenever 
necessary in order to determine the types and quantities of 
agricultural commodities needed, the conditions under which 
commodities should be provided and distributed, the 
relationship between United States food assistance and other 
development resources, the development plans of that country, 
the most suitable timing for commodity deliveries, the rate at 
which food assistance levels can be effectively used to meet 
nutritional and developmental needs, and the country's 
potential as a new or expanded market for both United States 
agricultural commodities and recipient country foodstuffs.''.

             [commodites for multiyear development purposes

    [Sec. 210. Title IV of the Agricultural Trade Development 
and Assistance Act of 1954 is amended by adding at the end 
thereof the following new section:
    [``Sec. 413. In order to best meet the humanitarian and 
developmental purposes of this Act, commodities provided under 
this Act for developmental purposes shall be made available, to 
the maximum extent practicable, on a multiyear basis when 
necessary for the most effective accomplishment of these 
purposes.''.

                        [TITLE III--PEACE CORPS

                    [authorization of appropriations

    [Sec. 301. Section 3 of the Peace Corps Act is amended--
            [(1) in subsection (b), by striking out the matter 
        before the first proviso and inserting in lieu thereof 
        the following: ``There are authorized to be 
        appropriated to carry out the purposes of this Act for 
        fiscal year 1980 not to exceed $105,404,000''; and
            [(2) in subsection (c), by striking out ``for 
        fiscal year 1978, $1,069,000, and for fiscal year 
        1979'' and inserting in lieu thereof ``for fiscal year 
        1980''.

                         [peace corps personnel

    [Sec. 302. Section 7(a) of the Peace Corps Act is amended 
by adding at the end thereof the following new paragraph:
    [``(4) Until such time as the Congress enacts Foreign 
Service personnel reform legislation which amends or otherwise 
supersedes this paragraph, a person who has received a Foreign 
Service Reserve or staff appointment or assignment under this 
subsection may, not later than three years after the effective 
date of this paragraph or after separation from such 
appointment or assignment, whichever is later, be appointed to 
a position in any United States department, agency, or 
establishment--
            [``(A) in the competitive service under title 5, 
        United States Code, without competitive examination and 
        in accordance with such regulations and conditions 
        consistent with this subsection as may be prescribed by 
        the Director of the Office of Personnel Management, or
            [``(B) in an established merit system in the 
        excepted service,
if such person (i) served satisfactorily under the authority of 
this subsection, as certified by the President, for not less 
than thirty-six months on a substantially continuous basis, and 
(ii) is qualified for the position in question.''.

   [TITLE IV--INSTITUTE FOR SCIENTIFIC AND TECHNOLOGICAL COOPERATION

                          [statement of policy

    [Sec. 401. As declared by Congress in the Foreign 
Assistance Act of 1961, a principal objective of the foreign 
policy of the United States is the encouragement and sustained 
support of the people of developing countries in their efforts 
to acquire the knowledge and resources essential to development 
and to build the economic, political, and social institutions 
which will improve the quality of their lives. The Congress 
reaffirms the profound humanitarian and foreign policy concerns 
of the United States in the economic and social progress of the 
developing countries and in the alleviation of the worst 
physical manifestations of poverty in these countries.
    [In furtherance of that objective, the Congress recognizes 
that developing countries require extensive scientific and 
technological capacity in order to deal effectively with their 
developmental problems, relate to the industrialized nations, 
and constructively participate in the shaping of a stable world 
order.
    [It is therefore in the mutual interest of the United 
States and the developing countries to increase scientific and 
technological cooperation and jointly to support long-term 
research on critical problems that impede development and limit 
the efficient use of the world's human, natural, and capital 
resources.

              [purposes and establishment of the institute

    [Sec. 402. (a) To strengthen the capacity of the people of 
developing countries to solve their development problems 
through scientific and technological innovation, to foster 
research on problems of development, and to facilitate 
scientific and technological cooperation with developing 
countries, the President is authorized to establish an 
Institute for Scientific and Technological Cooperation 
(hereafter in this title referred to as the ``Institute''), 
which shall be subject to the foreign policy guidance of the 
Secretary of State.
    [(b) The Institute shall be guided by the policies set 
forth in sections 101 and 102 of the Foreign Assistance Act of 
1961 and shall direct a substantial share of its resources to 
those objectives.

                      [functions of the institute

    [Sec. 401. (a) In carrying out its purposes, the Institute 
shall--
            [(1) assist developing countries to strengthen 
        their own scientific and technological capacity in 
        order for them to undertake the research and 
        experimentation necessary for development;
            [(2) support research, in the United States and in 
        developing countries, on critical development problems, 
        with emphasis on research relating to technologies 
        which are labor-intensive or which do not generate 
        additional unemployment or underemployment and with 
        emphasis on those problems which are the greatest 
        impediment to improvement in the lives of the majority 
        of the poor;
            [(3) foster the exchange of scientists and other 
        technological experts with developing countries, and 
        other forms of exchange and communication to promote 
        the joint solution of problems of mutual concern to the 
        United States and developing countries;
            [(4) advise and assist other agencies of the United 
        States Government in planning and executing policies 
        and programs of scientific and technological 
        cooperation with developing countries;
            [(5) facilitate the participation of private United 
        States institutions, businesses, and individuals in 
        scientific and technological cooperation with 
        developing countries; and
            [(6) gather, analyze, and disseminate information 
        relevant to the scientific and technological needs of 
        developing countries.
    [(b) In carrying out the functions specified in subsection 
(a), the Institute shall take particular care to review all of 
its programs, projects, and other activities to ensure that 
technologies which are developed, utilized, or promoted are 
assessed with regard to minimizing any new problems and that 
participants in such programs, projects, and activities are 
fully aware of the need for such review with respect to any 
technology-related activities for which they are responsible.
    [(c) For purposes of carrying out the functions of the 
Institute, the President may utilize, in addition to 
authorities conferred by this title, such authority contained 
in the Foreign Assistance Act of 1961, the Foreign Service Act 
of 1980, title V of the Foreign Relations Authorization Act, 
Fiscal Year 1979, and title IV of the International Development 
and Food Assistance Act of 1978, as the President deems 
necessary.
    [(d) The Institute shall carry out its functions in 
consultation and cooperation with the agencies of the United 
States Government, international organizations, and agencies of 
other governments engaged in promoting economic, social, and 
technological development in developing countries.
    [(e) The President shall prescribe appropriate procedures 
to assure coordination of the activities of the Institute with 
other activities of the United States Government in furthering 
the use of science and technology in the cause of development.

                          [general authorities

    [Sec. 404. (a) To carry out the purposes and functions of 
the Institute, the President may--
            [(1) make and perform contracts and other 
        agreements with any individual, institution, 
        corporation, or other body of persons however 
        designated, within or outside the United States, and 
        with governments or government agencies, domestic or 
        foreign;
            [(2) make advances, grants, and loans to any 
        individual, institution, corporation, or other body of 
        persons however designated, within or outside the 
        United States, and to governments or government 
        agencies, domestic or foreign;
            [(3) employ such personnel as necessary and fix 
        their compensation;
            [(4) make provision for compensation, 
        transportation, housing, subsistence (or per diem in 
        lieu thereof), and health care or health and accident 
        insurance for foreign nationals engaged in activities 
        authorized by this title while they are away from their 
        homes, without regard to the provisions of any other 
        law;
            [(5) accept and use money, funds, property, and 
        services of any kind by gift, devise, bequest, grant, 
        or otherwise in furtherance of the purposes of the 
        Institute;
            [(6) acquire by purchase, lease, loan, bequest, or 
        gift and hold and dispose of by sale, lease, loan, or 
        grant, real and personal property of all kinds;
            [(7) prescribe, amend, and repeal such rules and 
        regulations as may be necessary to the conduct of the 
        business of the Institute;
            [(8) utilize information, services, facilities, 
        officers, and employees of any agency of the United 
        States Government;
            [(9) establish a principal office in the United 
        States and such other offices within or outside the 
        United States, as may be necessary;
            [(10) make such expenditures as may be necessary 
        for administering the provisions of this title;
            [(11) adopt, alter, and use an official seal for 
        the Institute, which shall be judicially noticed; and
            [(12) take such other actions as may be necessary 
        and incidental to carrying out the functions of the 
        Institute.
    [(b) Any authority provided by this section involving the 
expenditures of appropriated funds shall be effective for a 
fiscal year only to such extent or in such amounts as are 
provided in appropriation Acts.

                       [director of the institute

    [Sec. 405. (a) There shall be a Director of the Institute 
(hereafter in this title referred to as the ``Director'') who 
shall be the chief executive officer of the Institute. The 
Director shall be appointed by the President, by and with the 
advice and consent of the Senate, and shall receive 
compensation at the rate payable for level III of the Executive 
Schedule under section 5314 of title 5 of the United States 
Code.
    [(b) The President may exercise any authorities conferred 
upon him by this title through the Director or any other agency 
or officer of the United States Government as he shall direct. 
The Director or head of any such agency or any such officer may 
delegate to any of his subordinates authority to perform any of 
such functions.

             [deputy director and other statutory officers

    [Sec. 406. (a) A Deputy Director of the Institute shall be 
appointed by the President, by and with the advice and consent 
of the Senate. The Deputy Director shall receive compensation 
at the rate payable for level IV of the Executive Schedule 
under section 5315 of title 5 of the United States Code.
    [(b) The Deputy Director shall perform such duties and 
exercise such powers as the Director may prescribe.
    [(c) The President may establish up to two additional 
positions in the Institute to be compensated at the rate 
payable for level V of the Executive Schedule under section 
5316 of title 5 of the United States Code.

   [council on international scientific and technological cooperation

    [Sec. 407. (a) In order to further the purposes of the 
Institute, the President is authorized to establish a Council 
on International Scientific and Technological Cooperation 
(hereafter in this title referred to as the ``Council'').
    [(b)(1) The Council shall--
            [(A) advise the Director with respect to the 
        policies, programs, planning, and procedures of the 
        Institute;
            [(B) make recommendations to the Director on the 
        use of the resources available to the Institute; and
            [(C) advise the Director on matters involving the 
        activities of the Institute overseas and appropriate 
        relationship with the private sector, within and 
        outside the United States.
    [(2) The Council shall prepare an annual report setting 
forth the major recommendations made and advice given pursuant 
to paragraph (1) of this subsection.
    [(c) The Director shall seek the advice of the Council 
before making any decision with respect to the selection or 
termination of, or any significant change in, the areas and 
issues in which the Institute conducts its activities, and with 
respect to the transfer of specific programs and projects from 
any other Government agency to the Institute. The Council shall 
have the authority to review all new programs and initiatives 
before their implementation and to make recommendations with 
regard to the approval or disapproval of new programs and 
initiatives having a cost in excess of $500,000 or a duration 
greater than two years.
    [(d) The Council shall consist of up to twenty-five members 
appointed by the President, one of whom the President shall 
designate as Chairman. The members of the Council shall be 
appointed for terms for four years, except that the members 
first appointed shall be appointed for terms of one, two, 
three, or four years, as designated by the President at the 
time of their appointment, so that the terms of approximately 
one-fourth of the members of the Council expire in any year. 
The members of the Council shall be selected from among--
            [(1) citizens of the United States who are widely 
        recognized for their broad knowledge of, or expertise 
        in, science and technology, or their interest in the 
        scientific and technological problems of developing 
        countries;
            [(2) citizens of foreign countries who by their 
        knowledge and expertise are capable of providing advice 
        and guidance to the Institute on the application of 
        science and technology to the problems of developing 
        countries, except that not more than one-third of the 
        membership of the Council shall consist of members who 
        are citizens of foreign countries; and
            [(3) officials of the United States Government, 
        except that not to exceed five members of the Council 
        may be appointed under this paragraph, one of whom 
        shall be the Secretary of State or his designee.
    [(e) Members of the Council who are not officials of the 
United States Government shall be entitled to compensation, not 
to exceed the daily equivalent of the highest rate which may be 
paid by an employee under the General Schedule established by 
section 5332 of title 5 of the United States Code, while in the 
performance of their duties under this title, and to 
reimbursement for expenses and per diem in lieu of subsistence 
while away from their homes or regular places of business in 
the same manner as persons employed intermittently in 
Government service are allowed expenses under section 5703 of 
title 5 of the United States Code. Members of the Council who 
are not officials of the United States Government shall not be 
deemed officers, employees, or otherwise in the service or 
employment of the United States Government for any purpose, 
except that members of the Council who are United States 
citizens shall be deemed Government employees for the purposes 
of sections 202, 203, 205, 207, 208, and 209 of title 18 of the 
United States Code.
    [(f) The Council may appoint from among its members an 
Executive Committee, and such other committees it deems 
necessary, to assist it in exercising its power and functions. 
The Executive Committee shall consist of seven members, one of 
whom shall be the Chairman of the Council and not more than 
three of whom shall be employees of the United States 
Government. The Executive Committee shall exercise such powers 
and functions as are delegated to it by the Council.

                         [institute fellowships

    [Sec. 408. (a) The President is authorized to award up to 
twenty fellowships annually for periods up to two years, such 
awards to be renewable for an additional period not to exceed 
two years, to individuals who have demonstrated exceptional 
competence and ability in the fields of scientific, 
technological, economic, or social endeavor selected by the 
Institute for concentration. The awards shall be made so as to 
encompass a wide diversity of disciplines and backgrounds, and 
shall be made on the basis of criteria established by the 
President upon the advice of the Council. Up to ten of the 
awards in any year may be made to citizens of countries other 
than the United States. Individuals awarded fellowships shall 
be designated as Institute Fellows.
    [(b) The President may assign Institute Fellows to 
undertake such activities, in the United States or abroad, as 
will further the purposes of the Institute.
    [(c) The amount of the awards made pursuant to this section 
shall be established by the President, but shall not in any 
case exceed the highest rate which may be paid to an employee 
under the General Schedule established by section 5332 of title 
5 of the United States Code. In addition, where appropriate, 
the President may make provisions for transportation, housing 
(when assigned outside country of residence), subsistence (or 
per diem in lieu thereof), and health care or health or 
accident insurance for Institute Fellows and their dependents 
while engaged in activities authorized by this title.
    [(d) Except as provided otherwise in this section, 
Institute Fellows shall not be deemed employees or otherwise in 
the service or employment of the United States Government. 
Institute Fellows shall be considered employees for purposes of 
compensation of injuries under chapter 81 of title 5 of the 
United States Code and the tort claim provisions of chapter 171 
of title 28 of the United States Code. In addition, Institute 
Fellows who are United States citizens shall be considered 
Government employees for purposes of sections 202, 203, 205, 
207, 208, and 209 of title 18 of the United States Code.
    [(e) Alien participants in any program of the Institute, 
including Institute Fellows and their dependents, may be 
admitted to the United States, if otherwise qualified as non-
immigrants under section 101(a)(150 of the Immigration and 
Nationality Act, for such time and under such conditions as may 
be prescribed by regulations promulgated by the Secretary of 
State and the Attorney General.

                         [conflict of interest

    [Sec. 409. Members of the Council and Institute Fellows 
shall avoid any action, in their activities with respect to the 
Institute, which might result in, or create the appearance of, 
a conflict of interest, including but not limited to--
            [(1) using their office or position for private 
        gain;
            [(2) giving preferential treatment to any person;
            [(3) making recommendations or decisions relating 
        to any activity authorized by this title in other than 
        an impartial and independent manner;
            [(4) mussing Government property or official 
        information obtained through their office or position 
        which has not been made available to the general 
        public; or
            [(5) affecting adversely the confidence of the 
        public in the integrity of the Institute.

                    [authorization of appropriations

    [Sec. 410. There are authorized to be appropriated to the 
President to carry out this title, in addition to funds 
otherwise available for such purpose, $12,000,000 for the 
fiscal year 1981. Funds appropriated under this section are 
authorized to remain available until expended.

                         [conforming amendments

    Sec. 412. (a) Section 5314 of title 5 of the United States 
Code, relating to level III of the Executive Schedule, is 
amended by adding at the end thereof the following:
            [``(70) Director, Institute for Scientific and 
        Technological Co-operation.''
            [(b) Section 5315 of title 5 of the United States 
        Code, relating to level IV of the Executive Schedule, 
        is amended by adding at the end thereof the following:
            [``(128) Deputy Director, Institute for Scientific 
        and Technological Cooperation.''.
    [(c) Section 5316 of title 5 of the United States Code, 
relating to level V of the Executive Schedule, is amended by 
adding at the end thereof the following:
            [``(152 Additional officers, Institute for 
        Scientific and Technological Cooperation (2).''.

     [establishment in international development cooperation agency

    [Sec. 413. Upon the establishment of the United States 
International Development Cooperation Agency pursuant to 
Reorganization Plan Numbered 2 of 1979, the Institute shall be 
established within such Agency.

                       [expiration of authorities

    [Sec. 414. The authorities contained in this title shall 
expire on September 30, 1984.

                   [TITLE V--MISCELLANEOUS PROVISIONS

  [earmarking for lebanon of unobligated balances in the middle east 
                       special requirements fund

    [Sec. 501. Of the funds continued available for the fiscal 
year 1979 for the Middle East Special Requirements Fund by 
section 103 of the Foreign Assistance and Related Programs 
Appropriations Act, 1979, which are unobligated on the date of 
enactment of this Act, $5,000,000 shall be available only for 
Lebanon and may hereafter be continued available for such 
country.

                     [military assistance to sudan

    [Sec. 502. In addition to the amount authorized to be 
appropriated for grant military assistance for the fiscal year 
1980 by section 504(a)(1) of the Foreign Assistance Act of 
1961, there is authorized to be appropriated to carry out the 
purposes of chapter 2 of part II of that Act for the fiscal 
year 1980 $1,700,000. Not more than $1,700,000 of the funds 
available to carry out that chapter for the fiscal year 1980 
may be allocated and made available for assistance for Sudan. 
For purposes of the last sentence of section 504(a)(1) and for 
purposes of section 515(b)1) of the Foreign Assistance Act of 
1961, this section shall be deemed to be part of such section 
504(a)(1).

                       [unified personnel system

    [Sec. 503. (a) Section 401(a) of the International 
Development and Food Assistance Act of 1978 is amended by 
striking out ``March 15'' and inserting in lieu thereof ``May 
1''.
    [(b) The amendment made by subsection (a) shall be 
effective as of March 15, 1979.

                         [human rights reports

    [Sec. 504. (a) Paragraph (1) of section 116(d) of the 
Foreign Assistance Act of 1961 is amended to read as follows:
            [``(1) the status of internationally recognized 
        human rights, within the meaning of subsection (a)--
                    [``(A) in countries that receive assistance 
                under this part, and
                    [``(B) in all other foreign countries which 
                are members of the United Nations and which are 
                not otherwise the subject of a human rights 
                report under this Act; and''.
    [(b) Not later than November 15, 1979, the Secretary of 
State shall submit to the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate a report on the impact on the foreign 
relations of the United States of the reports required by the 
Foreign Assistance Act of 1961 on the human rights practices of 
foreign governments.

               [prohibition on assistance to afghanistan

    [Sec. 505. Chapter 1 of part III of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 620D. Prohibition on Assistance to Afghanistan.--
(a) None of the funds authorized to be appropriated under this 
Act may be used to furnish assistance to Afghanistan nor may 
funds authorized to be appropriated under the Act before 
October 1, 1979, be expended for assistance to Afghanistan 
until the President certifies to the Congress that--
            [``(1) the Government of Afghanistan has apologized 
        officially and assumes responsibility for the death of 
        Ambassador Adolph Dubs; and
            [``(2) the Government of Afghanistan agrees to 
        provide adequate protection for all personnel of the 
        United States Government in Afghanistan.
    [``(b) The provisions of subsection (a) shall not apply if 
the President determines that such assistance is in the 
national interest of the United States because of substantially 
changed circumstances in Afghanistan.''.

                  [nonproliferation of nuclear weapons

    [Sec. 507. (a) In accordance with the Nuclear Non-
Proliferation Act of 1978, the Congress strongly urges all 
nations which are not parties to the Treaty on Non-
Proliferation of Nuclear Weapons to become parties to that 
treaty.

                      [accelerated loan repayments

    [Sec. 508. (a) Chapter 1 of part I of the Foreign 
Assistance Act of 1961, as amended by section 110 of this Act, 
is further amended by adding at the end thereof the following 
new section:
    [``Sec. 127. Accelerated Loan Repayments.--The 
Administrator of the agency primarily responsible for 
administering this part shall conduct an annual review of 
bilateral concessional loan balances and shall determine and 
identify those countries whose financial resources make 
possible accelerated loan repayments. In particular, European 
countries that were recipients of concessional loans by 
predecessor agencies to the agency primarily responsible for 
administering this part shall be contacted to negotiate 
accelerated repayments. The criteria used by the Administrator 
in making these determinations shall be established in 
conjunction with the Committee on Foreign Affairs of the House 
of Representatives and the Committee on Foreign Relations of 
the Senate.''.

                   [refugee crisis in southeast asia

    [Sec. 509. (a)(1) The refugee crisis in Indochina is 
unfolding as one of the great human tragedies of our time.
    [(2) At least seven hundred and fifty thousand human beings 
have fled Vietnam, Kampuchea, and Laos since the spring of 
1975.
    [(3) Approximately three hundred thousand human beings 
currently remain in refugee camps throughout Southeast Asia.
    [(4) As many as two hundred and fifty thousand human beings 
may have perished in their attempts to reach freedom and many 
thousands more face death should the present situation 
continue.
    [(5) The international borders are closing to the refugees 
fleeing from Indochina.
    [(6) The international community has failed to respond 
adequately to the crisis, despite the existence of adequate 
mechanisms to respond.
    [(b) It is the sense of the Congress that the President 
should continue to support the efforts of the Secretary General 
of the United Nations to use appropriate fora to deal with the 
refugee crisis in Southeast Asia.

                        [certain travel expenses

    [Sec. 510. Section 5924(4)(B) of title 5, United States 
Code, is amended by striking out ``one annual trip each way for 
each dependent of an employee of the Department of State or the 
United States Information Agency, or'' and inserting in lieu 
thereof ``(i) in the case of dependents traveling to obtain 
secondary education, one annual trip, or in the case of 
dependents traveling to obtain undergraduate college education, 
two annual trips, each way for each dependent of an employee of 
the Department of State, of the International Communication 
Agency, or of the Agency for International Development, or 
(ii)''.

                             [human rights

    [Sec. 511. Section 502B of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
subsection:
    [``(e) Notwithstanding any other provision of law, funds 
authorized to be appropriated under part I of this Act may be 
made available for the furnishing of assistance to any country 
with respect to which the President finds that such a 
significant improvement in its human rights record has occurred 
as to warrant lifting the prohibition on furnishing such 
assistance in the national interest of the United States.''.

                            [effective dates

    [Sec. 512. (a) Except as provided in subsection (b) of this 
section and in section 503(b), this Act shall take effect on 
October 1, 1979.
    [(b) Sections 114(b), 123, 501, and 509 of this Act shall 
take effect on the date of enactment of this Act.]
                              ----------                              


             INTERNATIONAL SECURITY ASSISTANCE ACT OF 1979

AN ACT To amend the Foreign Assistance Act of 1961 and the Arms Export 
Control Act to authorize international security assistance programs for 
                fiscal year 1980, and for other purposes

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

                              [short title

    [Section 1. This Act may be cited as the ``International 
Security Assistance Act of 1979''.

                             [contingencies

    [Sec. 2. (a) The heading for chapter 5 of part I of the 
Foreign Assistance Act of 1961 is amended by striking out 
``Contingency Fund'' and inserting in lieu thereof 
``Contingencies''.
    [(b) Section 451 of such Act is amended--
            [(1) by striking out ``Contingency Fund'' and 
        inserting in lieu thereof ``Contingencies''; and
            [(2) by amending subsection (a) to read as follows:
    [``(a)(1) Notwithstanding any other provision of law, the 
President is authorized to use not to exceed $10,000,000 of 
funds made available in any fiscal year to carry out any 
provision of this Act (other than the provisions of chapter 1 
of this part) in order to provide, for any emergency purposes, 
assistance authorized by this part in accordance with the 
provisions applicable to the furnishing of such assistance.
    [``(2) The President shall report promptly to the Speaker 
of the House of Representatives and to the Committee on Foreign 
Relations and the Committee on Appropriations of the Senate 
each time he exercises the authority contained in this 
subsection.''.

                    [international narcotics control

    [Sec. 3.(a) Section 482(a) of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``(a)(1) To carry out the purposes of section 481, there 
are authorized to be appropriated to the President $51,758,000 
for the fiscal year 1980.
    [``(2) Of the amount authorized to be appropriated for the 
fiscal year 1980 by paragraph (1), $16,000,000 shall be 
available only for the Republic of Colombia for the 
interdiction of drug traffic. Such funds may be used only (A) 
for helicopters, patrol vessels, fixed radar equipment, 
transport vehicles, and fuel, which will be used exclusively 
for interdicting drug traffic, and (B) for training personnel 
with respect to the interdiction of drug traffic.
    [``(3) Funds appropriated under this subsection for the 
fiscal year 1980 may not be used for a contribution to the 
United Nations Fund for Drug Abuse Control in an amount which 
exceeds the lesser of $3,000,000 or 25 percent of the total 
contributions by all countries to such Fund for the calendar 
year with respect to which the United States contribution is 
made.
    [``(4) Amounts appropriated under this subsection are 
authorized to remain available until expended.''.
    [(b) Section 481(d)(1) of such Act is amended by striking 
out ``or used for any program involving'' and inserting in lieu 
thereof ``for the purpose of''.

                             [human rights

    [Sec. 4. Section 502B of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the follow new 
subsection:
    [``(f) In allocating the funds authorized to be 
appropriated by this Act and the Arms Export Control Act, the 
President shall take into account significant improvements in 
the human rights records of recipient countries, except that 
such allocations may not contravene any other provision of 
law.''.

                          [military assistance

    [Sec. 5. (a) Section 504(a)(1) of the Foreign Assistance 
Act of 1961 is amended to read as follows:
    [``(a)(1) There are authorized to be appropriated to the 
President to carry out the purposes of this chapter not to 
exceed $110,200,000 for the fiscal year 1980. Not more than the 
following amounts of funds available to carry out this chapter 
may be allocated and made available for assistance to each of 
the following countries for the fiscal year 1980:

[``Country                                                        Amount
    Portugal............................................     $30,000,000
    Spain...............................................       3,800,000
    Jordan..............................................      30,000,000
    Philippines.........................................      25,000,000

The amount specified in this paragraph for military assistance 
to any such country may be increased by not more than 10 
percent of such amount if the President deems such increase 
necessary for the purposes of this chapter.''.
    [(b) Section 506 of such Act is amended to read as follows:
    [``Sec. 506. Special Authority.--(a) If the President 
determines and reports to the Congress in accordance with 
section 652 of this Act that--
            [``(1) an unforeseen emergency exists which 
        requires immediate military assistance to a foreign 
        country or international organization; and
            [``(2) the emergency requirement cannot be met 
        under the authority of the Arms Export Control Act or 
        any other law except this section;
he may direct, for the purposes of this part, the drawdown 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 to exceed 
$10,000,000 in any fiscal year.
    [``(b)(1) The authority contained in this section shall be 
effective for any such emergency only upon prior notification 
to the Committee on Foreign Affairs of the House of 
Representatives, the Committee on Foreign Relations of the 
Senate, and the Committee on Appropriations of each House of 
Congress.
    [``(2) The President shall keep the Congress fully and 
currently informed of all defense articles, defense services, 
and military education and training provided under this 
section.
    [``(c) There are authorized to be appropriated to the 
President such sums as may be necessary to reimburse the 
applicable appropriation, fund, or account for defense 
articles, defense services, and military education and training 
provided under this section.''.
    [(c) Section 516(a) of such Act is amended by striking out 
``until September 30, 1981,'' and all that follows thereafter 
and inserting in lieu thereof ``shall remain available for a 
period of three fiscal years next following any fiscal year 
after the fiscal year 1977 for which assistance under this 
chapter has been authorized for a country, to the extent 
necessary to carry out obligations incurred under this chapter 
with respect to such assistance for such country on or before 
September 30 of such fiscal year.''.

         [stockpiling of defense articles for foreign countries

    [Sec. 6 (a) Section 514 of the Foreign Assistance Act of 
1961 is amended--
            [(1) in subsection (b)(2), by striking out 
        ``$90,000,000 for the fiscal year 1979'' and inserting 
        in lieu thereof ``$95,000,000 for the fiscal year 
        1980''; and
            [(2) in subsection (c), by inserting ``the Republic 
        of Korea or'' immediately after ``stockpiles located 
        in''.

    [international military assistance and sales program management

    [Sec. 7. Section 515 of the Foreign Assistance Act of 1961 
is amended--
            [(1) in subsection (b)(1)--
                    [(A) by striking out ``fiscal year 1979'' 
                and inserting in lieu thereof ``fiscal year 
                1980''; and
                    [(B) by inserting ``Greece,'' immediately 
                after ``Panama,''; and
            [(2) in subsection (f), by striking out ``December 
        31, 1997'' and inserting in lieu thereof ``December 31, 
        1978''.

                         [economic support fund

    [Sec. 8. (a) Section 531(b)(1) of the Foreign Assistance 
Act of 1961 is amended by striking out ``for the fiscal year 
1979, $1,902,000,000'' and inserting in lieu thereof ``for the 
fiscal year 1980, $1,935,000,000''.
    [(b) Section 532 of such Act is amended by striking out 
subsection (b) and inserting in lieu thereof the following:
    [``(b)(1) Of the amount authorized to be appropriated to 
carry out this chapter for the fiscal year 1980, not less than 
$785,000,000 shall be available only for Israel and not less 
than $750,000,000 shall be available only for Egypt. Not less 
than two-thirds of such funds shall be provided on a grant 
basis to each such country.
    [``(2) The total amount of funds allocated for Israel under 
this chapter for the fiscal year 1980 may be made available as 
a cash transfer. In exercising the authority of this paragraph, 
the President shall ensure that the level of cash transfers 
made to Israel does not cause an adverse impact on the total 
amount of nonmilitary exports from the United States to Israel.
    [``(c) It is the sense of the Congress that programs which 
stress regional development or regional scientific and 
technical cooperation in the Middle East can contribute in an 
important way to the mutual understanding that must serve as 
the basis for permanent peace in the Middle East.
    [``(d) It is the sense of the Congress that--
            [``(1) funds made available under this chapter for 
        countries in the Middle East are designed to promote 
        progress toward a comprehensive peace settlement in the 
        Middle East; and
            [``(2) for Syria and Jordan to continue to receive 
        funds under this chapter, it should be judged by the 
        President that they are acting in good faith to achieve 
        further progress toward a comprehensive peace 
        settlement and that the expenditure of the funds will 
        serve the process of peace in the Middle East.
    [``(e) None of the funds authorized to be appropriated to 
carry out this chapter for the fiscal year 1980 may be used to 
provide assistance for Syria, unless the President determines, 
and so reports to the Congress, that assistance for Syria is in 
the national interest of the United States.''.
    [(c) Section 533 of such Act is amended to read as follows:
    [``Sec. 533. Southern Africa Programs.--(a) Of the amount 
authorized to be appropriated to carry out this chapter for the 
fiscal year 1980, $68,000,000 shall be available for the 
countries of southern Africa and for a southern Africa regional 
refugee support, training, and economic planning program to 
address the problems caused by the economic dislocation 
resulting from the conflict in that region and for education 
and job training assistance. Such funds may be used for 
education and job training assistance. Such funds may be used 
to provide humanitarian assistance to Africa refugees and 
persons displaced by war and internal strife in southern 
Africa, to improve transportation links interrupted or 
jeopardized by regional political conflicts, and to provide 
support to countries in that region.
    [``(b) No assistance may be furnished under this section to 
Mozambique, Angola, Tanzania, or Zambia, except that the 
President may waive this prohibition with respect to any such 
country if he determines, and so reports to the Congress, that 
furnishing such assistance to such country would further the 
national interests of the United States.''.
    [(d) Section 534 of such Act is amended to read as follows:
    [``Sec. 534. Turkey and Cyprus Programs.--(a) Of the amount 
authorized to be appropriated to carry out this chapter for the 
fiscal year 1980, $15,000,000 shall be available only for 
Cyprus for refugee relief, reconstruction, or other activities 
consistent with a reconciliation on Cyprus.
    [``(b) Of the amount authorized to be appropriated to carry 
out this chapter for the fiscal year 1980, not more than 
$98,000,000 shall be available for Turkey.''.
    [(e) Chapter 4 of part II of such Act is amended by adding 
at the end thereof the following new section:
    [``Sec. 535. Sudan Program.--Of the amount authorized to be 
appropriated to carry out this chapter for the fiscal year 
1980, not less than $40,000,000 shall be available for 
Sudan.''.

             [international military education and training

    [Sec. 9. Section 542 of the Foreign Assistance Act of 1961 
is amended by striking out ``$31,800,000 for the fiscal year 
1979'' and inserting in lieu thereof ``$31,800,000 for the 
fiscal year 1980, except that no part of such amount may be 
made available for Inter-American regional programs unless the 
foreign countries participating in such programs collectively 
contribute an equivalent amount to carry out the purposes of 
such programs''.

                        [peacekeeping operations

    [Sec. 10. (a) Section 552(a) of the Foreign Assistance Act 
of 1961 is amended by striking out ``$30,900,000 for the fiscal 
year 1979'' and inserting in lieu thereof ``$21,100,000 for the 
fiscal year 1980''.
    [(b) Section 551 of such Act is amended by adding at the 
end thereof the following new sentence: ``Such assistance may 
include reimbursement to the Department of Defense for expenses 
incurred pursuant to section 7 of the United Nations 
Participation Act of 1945, except that such reimbursements may 
not exceed $5,000,000 in any fiscal year unless a greater 
amount is specifically authorized by this section.''.
    [(c) Section 552 of such Act is amended by adding at the 
end thereof the following new subsection:
    [``(c) If the President determines that, as the result of 
an unforeseen emergency, the provision of assistance under this 
chapter in amounts in excess of funds otherwise available for 
such assistance is important to the national interests of the 
United States, the President may exercise the authority of 
section 610(a) of this Act to transfer funds available to carry 
out chapter 4 of this part for use under this chapter without 
regard to the 20-percent increase limitation contained in such 
section, except that (1) the total amount so transferred in any 
fiscal year may not exceed $10,000,000, and (2) earmarked funds 
may not be transferred.''.

 [cooperative cross servicing and lead-nation procurement arrangements 
             within the north atlantic treaty organization

    [Sec. 11. Subparagraph (C) of section 3(d)(3) of the Arms 
Export Control Act is amended to read as follows:
            [``(C) to arrangements among members of the North 
        Atlantic Treaty Organization or between the North 
        Atlantic Treaty Organization and any of its member 
        countries--
                    [``(i) for cooperative cross servicing, or
                    [``(ii) for lead-nation procurement if the 
                certification transmitted to the Congress 
                pursuant to section 36(b) of this Act with 
                regard to such lead-nation procurement 
                identified the transferees on whose behalf the 
                lead-nation procurement was proposed.''.

 [reciprocal quality assurance, inspection, and contract audit services

    [Sec. 12. Section 21 of the Arms Export Control Act is 
amended--
            [(1) by redesignating subsection (h) as subsection 
        (i); and
            [(2) by inserting the following new subsection (h) 
        immediately after subsection (g):
    [``(h) The President is authorized to provide (without 
charge) quality assurance, inspection, and contract audit 
defense services under this section--
            [``(1) in connection with the placement or 
        administration of any contract or subcontract for 
        defense articles or defense services entered into after 
        the date of enactment of this subsection by, or under 
        this Act on behalf of, a foreign government which is a 
        member of the North Atlantic Treaty Organization, if 
        such government provides such services in accordance 
        with an agreement on a reciprocal basis, without 
        charge, to the United States Government; or
            [``(2) in connection with the placement or 
        administration of any contract or subcontract for 
        defense articles or defense services pursuant to the 
        North Atlantic Treaty Organization Infrastructure 
        Program in accordance with an agreement under which the 
        foreign governments participating in such program 
        provide such services, without charge, in connection 
        with similar contracts or subcontracts.''.

            [modification of the annual arms sales proposal

    [Sec. 13. Section 25(d) of the Arms Export Control Act is 
amended--
            [(1) by inserting ``weapons or weapons-related'' 
        immediately after ``major'';
            [(2) by striking out ``defense articles or defense 
        services'' and inserting in lieu thereof ``weapons or 
        weapons-related defense equipment'';
            [(3) by adding at the end thereof the following new 
        sentence: ``Sales deemed most likely actually to result 
        in the issuance of a letter of offer during such fiscal 
        year shall be appropriately so identified in the 
        reports submitted pursuant to this paragraph and 
        paragraph (2) of this subsection.''; and
            [(4) by inserting ``(1)'' immediately after ``(d)'' 
        and by adding at the end thereof the following new 
        paragraph:
    [``(2) The President shall notify the Congress in writing 
at intervals of six months of any charges in the Arms Sales 
Proposal for such fiscal year, together with the reasons 
therefor.''.

                  [multilateral arms sales information

    [Sec. 14. Section 25 of the Arms Export Control Act is 
amended by adding at the end thereof the following new 
subsection:
            [``(e) The President shall transmit to the 
        Congress, at the time of the transmittal of each Arms 
        Sales Proposal required by subsection (d)(1), a 
        classified report detailing the executive branch's best 
        estimates with regard to the international volume of 
        arms traffic. The report shall include estimates on an 
        annual basis of the sale and delivery of weapons and 
        weapons-related defense equipment by all major arms 
        suppliers to all major recipient countries during the 
        preceding three years.''.

        [north atlantic treaty organization cooperative projects

    [Sec. 15. Chapter 2 of the Arms Export Control Act is 
amended by adding at the end thereof the following new section:
    [``Sec. 27. North Atlantic Treaty Organization Cooperative 
Projects.--(a) For purposes of this section, the term 
`cooperative project' means a project described in an 
agreement, entered into after the date of enactment of this 
section, under which--
            [``(1) the North Atlantic Treaty Organization, or 
        one or more member countries thereof, agrees to share 
        with the United States the costs of research on and 
        development, testing, and evaluation of certain defense 
        articles, and the costs of any agreed joint production 
        ensuing therefrom, in order to further the objectives 
        of standardization and interoperability of the armed 
        forces of North Atlantic Treaty Organization member 
        countries; or
            [``(2) the North Atlantic Treaty Organization, or 
        one or more member countries thereof other than the 
        United States, agrees to bear the costs of research on 
        and development, testing, and evaluation of certain 
        defense articles (or categories of defense articles) 
        and to have such articles produced for sale to, and 
        licensed for production within, other participant 
        member countries including the United States, and the 
        United States agrees to bear the costs of research on 
        and development, testing, and evaluation of other 
        defense articles (or categories of defense articles) 
        and to have such defense articles produced for sale to, 
        and licensed for production within, other participant 
        member countries in order to further the objectives of 
        rationalization of the industrial and technological 
        resources within the North Atlantic Treaty area.
    [``(b)(1) The President may reduce or waive the charge or 
charges which would otherwise be considered appropriate under 
section 21(e) of this Act (and, in the case of agreements 
described in subsection (a)(2) of this section, may reduce or 
waive the charges for reimbursement of the costs of officers 
and employees of the United States Government which would 
otherwise be required) in connection with sales under section 
21 and section 22 of this Act in furtherance of cooperative 
projects. Notwithstanding the provisions of section 21(e)(1)(A) 
and section 43(b) of this Act, administrative surcharges shall 
not be increased on other sales made under this Act in order to 
compensate for reductions or waivers of such surcharges under 
this section. Funds received pursuant to such other sales shall 
not be available to reimburse the costs incurred by the United 
States Government for which reduction or waiver is approved by 
the President under this section.
    [``(2) The provisions of paragraph (1) shall apply only if 
for each cooperative project the other countries which 
participate in such cooperative project reciprocate by waiving 
comparable charges for their sales related to such cooperative 
project and if the President determines that the magnitude of 
the contribution of a member country of the North Atlantic 
Treaty Organization to such cooperative project would help the 
United States conserve defense resources and promote a stronger 
alliance.
    [``(c)(1) Not less than thirty days prior to signature on 
behalf of the United States of an agreement for a cooperative 
project, the President shall transmit to the Speaker of the 
House of Representatives, the chairman of the Committee on 
Foreign Relations of the Senate, and the chairman of the 
Committee on Armed Services of the Senate, a numbered 
certification with respect to such proposed agreement, setting 
forth--
            [``(A) a detailed description of the cooperative 
        project with respect to which the certification is 
        made;
            [``(B) an estimate of the amount of sales and 
        exports expected to be made or approved under this Act 
        in furtherance of such cooperative project;
            [``(C) an estimate of the dollar value of any 
        charges expected to be reduced or waived under this 
        section in connection with such cooperative project, 
        such dollar value to consist of expenses that will be 
        charged against Department of Defense funds without 
        reimbursement and amounts not to be recovered and 
        deposited to the General Fund of the Treasury;
            [``(D) an estimate of the dollar value of the costs 
        to be borne by the North Atlantic Treaty Organization 
        or by the member countries thereof in connection with 
        such cooperative project; and
            [``(E) a statement of the foreign policy and 
        national security benefits anticipated to be derived 
        from such cooperative project.
    [``(2) The provisions of subsection (b) of section 36 of 
this Act shall not apply to sales made under section 21 or 
section 22 of this Act, and the provisions of subsection (c) of 
section 36 of this Act shall not apply to the issuance of 
licenses or other approvals under section 38 of this Act, if 
such sales are made, or such licenses or approvals are issued, 
in furtherance of a cooperative project.''.

              [reports on price and availability estimates

    [Sec. 16. (a) Chapter 2 of the Arms Export Control Act, as 
amended by section 15 of this Act, is further amended by adding 
at the end thereof the following new section:
    [``Sec. 28. Reports on Price and Availability Estimates.--
(a) The President shall transmit to the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate, within five days after the end of each 
calendar quarter, a report listing each price and availability 
estimate provided by the United States Government during such 
quarter to a foreign country with respect to a possible sale 
under this Act of major defense equipment for $7,000,000 or 
more or of any other defense articles or defense services for 
$25,000,000 or more. Each such listing shall specify the name 
of the country to which the estimate was provided, the defense 
articles or services involved, the quantity involved, and the 
price estimate provided.
    [``(b) Such reports shall also list each request received 
by the United States Government from a foreign country, during 
the quarter in question, for the issuance of a letter of offer 
to sell defense articles or defense services if (1) the 
proposed sale has not been the subject of a listing pursuant to 
subsection (a) of this section, and (2) the issuance of a 
letter of offer in accordance with such request would be 
subject to the requirements of section 36(b) of this Act. Each 
such listing shall include the name of the country making the 
request, the date of the request, the defense articles or 
services involved, the quantity involved, and the price and 
availability terms requested.''.
    [(b) Section 36(b) of such Act is amended by adding at the 
end thereof the following new paragraph:
    [``(4) In addition to the other information required to be 
contained in a certification submitted to the Congress under 
this subsection, each such certification shall cite any 
quarterly report submitted pursuant to section 28 of this Act 
which listed a price and availability estimate, or a request 
for the issuance of a letter of offer, which was basis for the 
proposed sale which is the subject of such certification.''.

[authorization and aggregate ceiling for foreign military sales credits

    [Sec. 17. (a) Section 31 of the Arms Export Control Act is 
amended--
            [(1) in subsection (a), by striking out 
        ``$682,000,000 for the fiscal year 1978 and 
        $674,300,000 for the fiscal year 1979'' and inserting 
        in lieu thereof ``$673,500,000 for the fiscal year 
        1980'';
            [(2) in subsection (b), by striking out 
        ``$2,152,350,000 for the fiscal year 1978 and 
        $2,085,500,000 for the fiscal year 1979, of which 
        amount for each such year'' and inserting in lieu 
        thereof ``$2,235,000,000 for the fiscal year 1980, of 
        which'';
            [(3) in subsection (c), by striking out ``fiscal 
        year 1979'' and inserting in lieu thereof ``fiscal year 
        1980''; and
            [(4) in subsection (d), by striking out 
        ``$150,000,000'' and inserting in lieu thereof 
        ``$250,000,000''.
    [(b) Of the principal amount of loans guaranteed for the 
fiscal year 1980 under section 24 of the Arms Export Control 
Act--
            [(1) with respect to Turkey, not to exceed 
        $50,000,000,
            [(2) with respect to Greece, not to exceed 
        $42,000,000, and
            [(3) with respect to Sudan, not to exceed 
        $25,000,000,
shall be repaid in not less than 20 years, following a grace 
period of 10 years on repayment of principal.

             [restraint in arms sales to sub-saharan africa

    [Sec. 18. Section 33 of the Arms Export Control Act is 
amended to read as follows:
    [``Sec. 33. Restraint in Arms Sales to Sub-Saharan 
Africa.--It is the sense of the Congress that the problems of 
Sub-Saharan Africa are primarily those of economic development 
and that United States policy should insist in limiting the 
development of costly military conflict in that region. 
Therefore, the President shall exercise restraint in selling 
defense articles and defense services, and in providing 
financing for sales of defense articles and defense services, 
to countries in Sub-Saharan Africa.''.

                        [reports to the congress

    [Sec. 19. (a) Section 36(a) of the Arms Export Control Act 
is amended--
            [(1) by striking out ``thirty'' in the text 
        preceding paragraph (1) and inserting in lieu thereof 
        ``sixty'';
            [(2) by inserting ``and'' immediately after the 
        semicolon at the end of paragraph (7);
            [(3) by striking out ``; and '' at the end of 
        paragraph (8) and inserting in lieu thereof a period; 
        and
            [(4) by striking out paragraph (9).
    [(b) Section 43 of such Act is amended by adding at the end 
thereof the following new subsection:
    [``(c) Not later than January 15 of each year, the 
President shall submit to the Congress a report containing an 
analysis and description of the services performed during the 
preceding fiscal year by officers and employees of the United 
States Government carrying out functions on a full-time basis 
under this Act for which reimbursement is provided under 
subsection (b) of this section or under section 21(a) of this 
Act. Such reports shall specify the number of personnel 
involved in performing such services.''.
    [(c) Section 36(b)(1) of such Act is amended by adding at 
the end thereof the following: ``If the President states in his 
certification that an emergency exists which requires the 
proposed sale in the national security interest of the United 
States, thus waiving the congressional review requirements of 
this subsection, he shall set forth in the certification a 
detailed justification for his determination, including a 
description of the emergency circumstances which necessitate 
the immediate insurance of the letter of offer and a discussion 
of the national security interests involved''.

      [national disclosure policy for sensitive weapons technology

    [Sec. 20.
    [(b) Section 36(b)(1) of the Arms Export Control Act is 
amended by inserting after the first sentence the following: 
``Such numbered certifications shall also contain an item, 
classified if necessary, identifying the sensitivity of 
technology contained in the defense articles or defense 
services proposed to be sold.''

                   [ceiling on commercial arms sales

    [Sec. 21. Section 38(b)(3) of the Arms Export Control Act 
is amended by striking out ``$25,000,000'' and inserting in 
lieu thereof ``$35,000,000''.

                              [definitions

    [Sec. 22. Section 644(b) of the Foreign Assistance Act of 
1961 and section 47(3) of the Arms Export Control Act are each 
amended by inserting ``(except uranium depleted in the isotope 
235 which is incorporated in defense articles solely to take 
advantage of high density or pyrophoric characteristics 
unrelated to radioactivity)'' immediately after ``source 
material''.

     [transfer of war reserve materiel and other property to taiwan

    [Sec. 23. (a) Notwithstanding any other provision of law, 
during the calendar year 1980 the President is authorized to 
transfer to Taiwan, under such terms and conditions as he may 
deem appropriate, such United States war reserve materiel that 
was located on Taiwan on January 1, 1979, as he may determine.
    [(b) Notwithstanding any other provision of law, during the 
calendar years 1979 and 1980 the President is authorized to 
transfer to Taiwan, under such terms and conditions as he may 
deem appropriate, such rights of the United States in property 
(other than war reserve materiel) that was located on Taiwan on 
January 1, 1979, as he may determine.

                      [ammunition sold to thailand

    [Sec. 24. The Royal Thai Government shall be released from 
its contractual obligation to pay to the United States 
Government such amount as is due on or before October 30, 1979, 
as a condition precedent under the letter of offer accepted by 
the Royal Thai Government on April 12, 1977, to the transfer of 
title to the last increment of United States ammunition stocks 
sold to the Royal Thai Government under such letter of offer 
pursuant to the Memorandum of Agreement of March 22, 1977, 
relating to the storage of ammunition in Thailand.

                             [shaba airlift

    [Sec. 26. Notwithstanding any other provision of law, the 
President is authorized to make available the services of the 
Department of Defense for the purpose of facilitating the 
removal from Zaire of those foreign armed forces which were 
transported to Zaire by the United States at the time of the 
crisis in Shaba Province in 1978.

        [fiscal year 1979 supplemental authorization for turkey

    [Sec. 27. (a) It is hereby determined that the national 
interests of the United States would be served by the 
furnishing of additional economic support fund assistance to 
Turkey in order to promote the economic and political stability 
of that country, and to strengthen its ability to fulfill its 
responsibilities as a member of the North Atlantic Treaty 
Organization.
    [(b) In furtherance of subsection (a) of this section, and 
in addition to amounts otherwise available for such purposes, 
there are authorized to be appropriated to the President to 
carry out the purposes of chapter 4 of part II of the Foreign 
Assistance Act of 1961 $100,000,000 for the fiscal year 1979, 
which amount shall be available only for Turkey.
    [(c) Amounts appropriated under this section may be made 
available until expended.
    [(d) Notwithstanding any assistance authorized for Turkey 
under this Act, it remains the policy of the United States that 
all foreign troops in Cyprus, except those stationed in Cyprus 
under the auspices of the United Nations, should be withdrawn 
from Cyprus.
    [(e) It is the sense of the Congress that the recent 
announcement by the leaders of the Greek Cypriots and the 
Turkish Cypriots to resume intercommunal negotiations is an 
encouraging recognition by the parties that the human rights 
and fundamental freedoms of all the citizens of the Republic of 
Cyprus will be respected. The Congress urges all parties to the 
negotiations to demonstrate good faith in the negotiations and 
to move promptly toward a full, just, and lasting settlement.]
                              ----------                              


         SPECIAL INTERNATIONAL SECURITY ASSISTANCE ACT OF 1979

                              [SHORT TITLE

    [Section 1. This Act may be cited as the ``Special 
International Security Assistance Act of 1979''.

                   [statement of policy and findings

    [Sec. 2. (a) It is the policy of the United States to 
support the peace treaty concluded between the Government of 
Egypt and the Government of Israel on March 26, 1979. This 
treaty is a significant step toward a full and comprehensive 
peace in the Middle East. The Congress urges the President to 
continue to exert every effort to bring about a comprehensive 
peace and to seek an end by all parties to the violence which 
could jeopardize this peace.
    [(b) The peace treaty between Egypt and Israel having been 
ratified, the Congress finds that the national interests of the 
United States are served--
            [(1) by authorizing the President to construct air 
        bases in Israel to replace the Israeli air bases on the 
        Sinai peninsula that are to be evacuated:
            [(2) by authorizing additional funds to finance 
        procurements by Egypt and Israel through the fiscal 
        year 1982 of defense articles and defense services for 
        their respective security requirements; and
            [(3) by authorizing additional funds for economic 
        assistance for Egypt in order to promote the economic 
        stability and development of that country and to 
        support the peace process in the Middle East.
    [(c) The authorities contained in this Act to implement 
certain arrangements in support of the peace treaty between 
Egypt and Israel do not signify approval by the Congress of any 
other agreement, understanding, or commitment made by the 
executive branch.

                  [construction of air bases in israel

    [Sec. 3. Part II of the Foreign Assistance Act of 196 is 
amended by adding at the end thereof the following new chapter:

             [``Chapter 7--Air Base Construction in Israel

    ``Sec. 561. General Authority.--The President is 
authorized--
            [``(1) to construct such air bases in Israel for 
        the Government of Israel as may be agreed upon between 
        the Government of Israel and the Government of the 
        United States to replace the Israeli air bases located 
        at Etzion and Etam on the Sinai peninsula that are to 
        be evacuated by the Government of Israel; and
            [``(2) for the purposes of such construction, to 
        furnish as a grant to the Government of Israel, on such 
        terms and conditions as the President may determine, 
        defense articles and defense services, which he may 
        acquire from any source, of a value not to exceed the 
        amount appropriated pursuant to section 562(a).
    [``Sec. 562. Authorization and Utilization of Funds.--(a) 
There is authorized to be appropriated to the President to 
carry out this chapter not to exceed $800,000,000, which may be 
made available until expended.
    [``(b) Upon agreement by the Government of Israel to 
provide to the Government of the United States funds equal to 
the difference between the amount required to complete the 
agreed construction work and the amount appropriated pursuant 
to subsection (a) of this section, and to make those funds 
available, in advance of the time when payments are due, in 
such amounts and at such times as may be required by the 
Government of the United States to meet those additional costs 
of construction, the President may incur obligations and enter 
into contracts to the extent necessary to complete the agreed 
construction work, except that this authority shall be 
effective only to such extent or in such amounts as are 
provided in advance in appropriation Acts.
    [``(c) Funds made available by the Government of Israel 
pursuant to subsection (b) of this section may be credited to 
the appropriation account established to carry out the purposes 
of this section for the payment of obligations incurred and for 
refund to the Government of Israel if they are unnecessary for 
that purpose, as determined by the President. Credits and the 
proceeds of guaranteed loans made available to the Government 
of Israel pursuant to the Arms Export Control Act, as well as 
any other source of financing available to it, may be used by 
Israel to carry out its undertaking to provide such additional 
funds.
    [``Sec. 563. Waiver Authorities.--(a) It is the sense of 
the Congress that the President should take all necessary 
measures consistent with law to insure the efficient and timely 
completion of the construction authorized by this chapter, 
including the exercise of authority vested in him by section 
633(a) of this Act.
    [``(b) The provisions of paragraph (3) of section 636(a) of 
this Act shall be applicable to the use of funds available to 
carry out this chapter, except that no more than sixty persons 
may be engaged at any one time under that paragraph for 
purposes of this chapter.''.

 [supplemental authorization of foreign military sales loan guaranties 
                          for egypt and israel

    [Sec. 4. (a) The Congress finds that the legitimate defense 
interests of Israel and Egypt require a one time extraordinary 
assistance package due to Israel's phased withdrawal from the 
Sinai and Egypt's shift from reliance on Soviet weaponry. The 
authorizations contained in this section do not, however, 
constitute Congressional approval of the sale of any particular 
weapons system to either country. These sales will be reviewed 
under the normal procedures set forth in section 36(b) of the 
Arms Export Control Act.
    [(b) In addition to amounts authorized to be appropriated 
for the fiscal year 1979 by section 31(a) of the Arms Export 
Control Act, there is authorized to be appropriated to the 
President to carry out that Act $370,000,000 for the fiscal 
year 1979.
    [(c) Funds made available pursuant to subsection (b) of 
this section may be used only for guaranties for Egypt and 
Israel pursuant to section 24(a) of the Arms Export Control 
Act. The principal amount of loans guaranteed with such funds 
may not exceed $3,700,000,000 of which $2,200,000,000 shall be 
available only for Israel and $1,500,000,000 shall be available 
only for Egypt. The principal amount of such guaranteed loans 
shall be in addition to the aggregate ceiling authorized for 
the fiscal year 1979 by section 31(b) of the Arms Export 
Control Act.
    [(d) Loans guaranteed with funds made available pursuant to 
subsection (b) of this section shall be on terms calling for 
repayment within a period of not less than thirty years, 
including an initial grace period of ten years on repayment of 
principal.
    [(e)(1) The Congress finds that the Governments of Israel 
and Egypt each have an enormous external debt burden which may 
be made more difficult by virtue of the financing authorized by 
this section. The Congress further finds that, as a consequence 
of the impact of the debt burdens incurred by Israel and Egypt 
under such financing, it may become necessary in future years 
to modify the terms of the loans guaranteed with funds made 
available pursuant to this section.

       [supplemental authorization of economic support for egypt

    [Sec. 5. There is authorized to be appropriated to the 
President to carry out chapter 4 of part II of the Foreign 
Assistance Act of 1961, $300,000,000 for the fiscal year 1979 
for Egypt, in addition to amounts otherwise authorized to be 
appropriated for such chapter for the fiscal year 1979. The 
amounts appropriated pursuant to this section may be made 
available until expended.

      [transfer of facilities of the sinai field mission to egypt

    [Sec. 6. The President is authorized to transfer to Egypt, 
on such terms and conditions as he may determine, such of the 
facilities and related property of the United States Sinai 
Field Mission as he may determine, upon the termination of the 
activities of the Sinai Field Mission in accordance with the 
terms of the peace treaty between Egypt and Israel.

 [contributions by other countries to support peace in the middle east

    [Sec. 7. (a) It is the sense of the Congress that other 
countries should give favorable consideration to providing 
support for the implementation of the peace treaty between 
Egypt and Israel. Therefore, the Congress requests that the 
President consult with other countries in order to (1) promote 
and develop an agreement for the establishment of a peace 
development fund whose purpose would be to underwrite the costs 
of implementing a Middle East peace, and (2) encourage 
investments in Israel and Egypt and other countries in the 
region should they join in Middle East peace, and (2) encourage 
investments in Israel and Egypt and other countries in the 
region should they join in Middle East peace agreements.

 [planning for trilateral scientific and technological cooperation by 
                  egypt, israel, and the united states

    [Sec. 8. (a) It is the sense of the Congress that, in order 
to continue to build the structure of peace in the Middle East, 
the United States should be prepared to participate, at an 
appropriate time, in trilateral cooperative projects of a 
scientific and technological nature involving Egypt, Israel, 
and the United States.
    [(b) Therefore, the President shall develop a plan to guide 
the participation of both United States Government agencies and 
private institutions in such projects. This plan shall 
identify--
            [(1) potential projects in a variety of areas 
        appropriate for scientific and technological 
        cooperation by the three countries, including 
        agriculture, health, energy, the environment, 
        education, and water resources;
            [(2) the resources which are available or which 
        would be needed to implement such projects; and
            [(3) the means by which such projects would be 
        implemented.

                 [non-proliferation of nuclear weapons

    [Sec. 10. In accordance with the Nuclear Non-Proliferation 
Act of 1978, the Congress strongly encourages all countries in 
the Middle East which are not parties to the Treaty on the Non-
Proliferation of Nuclear Weapons to become parties to that 
Treaty.]
                              ----------                              


       INTERNATIONAL DEVELOPMENT AND FOOD ASSISTANCE ACT OF 1978

    AN ACT To amend the Foreign Assistance Act of 1961 to authorize 
 development and economic assistance programs for fiscal year 1979, to 
      make certain changes in the authorities of that Act and the 
 Agricultural Trade Development and Assistance Act of 1954, to improve 
 coordination and administration of United States development-related 
             policies and programs, and for other purposes

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

                              SHORT TITLE

    Section 1. This Act may be cited as the ``International 
Development and Food Assistance Act of 1978''.

                    [TITLE I--DEVELOPMENT ASSISTANCE

                     [development assistance policy

    [Sec. 101. Chapter 1 of part I of the Foreign Assistance 
Act of 1961 is amended by striking out section 102 and 
inserting in lieu thereof the following new sections:
    [``Sec. 101. General Policy.--(a) The Congress finds that 
fundamental political, economic, and technological changes have 
resulted in the interdependence of nations. The Congress 
declares that the individual liberties, economic prosperity, 
and security of the people of the United States are best 
sustained and enhanced in a community of nations which respect 
individual civil and economic rights and freedoms and which 
work together to use wisely the world's limited resources in an 
open and equitable international economic system. Furthermore, 
the Congress reaffirms the traditional humanitarian ideals of 
the American people and renews its commitment to assist people 
in developing countries to eliminate hunger, poverty, illness, 
and ignorance.
    [``Therefore, the Congress declares that a principal 
objective of the foreign policy of the United States is the 
encouragement and sustained support of the people of developing 
countries in their efforts to acquire the knowledge and 
resources essential to development and to build the economic, 
political, and social institutions which will improve the 
quality of their lives.
    [``United States development cooperation policy should 
emphasize four principal goals:
            [``(1) the alleviation of the worst physical 
        manifestations of poverty among the world's poor 
        majority;
            [``(2) the promotion of conditions enabling 
        developing countries to achieve self-sustaining 
        economic growth with equitable distribution of 
        benefits;
            [``(3) the encouragement of development processes 
        in which individual civil and economic rights are 
        respected and enhanced; and
            [``(4) the integration of the developing countries 
        into an open and equitable international economic 
        system.
    [``The Congress declares that pursuit of these goals 
requires that development concerns be fully reflected in United 
States foreign policy and that United States development 
resources be effectively and efficiently utilized.
    [``(b) Under the policy guidance of the Secretary of State, 
the agency primarily responsible for administering this part 
should have the responsibility for coordinating all United 
States development-related activities.
    [``Sec. 102. Development Assistance Policy.--(a) The 
Congress finds that the efforts of developing countries to 
build and maintain the social and economic institutions 
necessary to achieve self-sustaining growth and to provide 
opportunities to improve the quality of life for their people 
depend primarily upon successfully marshalling their own 
economic and human resources. The Congress recognizes that the 
magnitude of these efforts exceeds the resources of developing 
countries and therefore accepts that there will be a long-term 
need for wealthy countries to contribute additional resources 
for development purposes. The United States should take the 
lead in concert with other nations to mobilize such resources 
from public and private sources.
    [``Provision of development resources must be adapted to 
the needs and capabilities of specific developing countries. 
United States assistance to countries with low per capita 
incomes which have limited access to private external resources 
should primarily be provided on concessional terms. Assistance 
to other developing countries should generally consist of 
programs which facilitate their access to private capital 
markets, investment, and technical skills, whether directly 
through guarantee or reimbursable programs by the United States 
Government or indirectly through callable capital provided to 
the international financial institutions.
    [``Bilateral assistance and United States participation in 
multilateral institutions shall emphasize programs in support 
of countries which pursue development strategies designed to 
meet basic human needs and achieve self-sustaining growth with 
equity.
    [``The Congress declares that the principal purpose of 
United States bilateral development assistance is to help the 
poor majority of people in developing countries to participate 
in a process of equitable growth through productive work and to 
influence decisions that shape their lives, with the goal of 
increasing their incomes and their access to public services 
which will enable them to satisfy their basic needs and lead 
lives of decency, dignity, and hope. Activities shall be 
emphasized that effectively involve the poor in development by 
expanding their access to the economy through services and 
institutions at the local level, increasing their participation 
in the making of decisions that affect their lives, increasing 
labor-intensive production and the use of appropriate 
technology, expanding productive investment and services out 
from major cities to small towns and rural areas, and otherwise 
providing opportunities for the poor to improve their lives 
through their own efforts. Participation of the United States 
in multilateral institutions shall also place appropriate 
emphasis on these principles.
    [``(b) Assistance under this chapter should be used not 
only for the purpose of transferring financial resources to 
developing countries, but also to help countries solve 
development problems in accordance with a strategy that aims to 
insure wide participation of the poor in the benefits of 
development on a sustained basis. Moreover, assistance shall be 
provided in a prompt and effective manner, using appropriate 
United States institutions for carrying out this strategy. In 
order to achieve these objectives and the broad objectives set 
forth in section 101 and in subsection (a) of this section, 
bilateral development assistance authorized by this Act shall 
be carried out in accordance with the following principles:
            [``(1) Development is primarily the responsibility 
        of the people of the developing countries themselves. 
        Assistance from the United States shall be used in 
        support of, rather than substitution for, the self-help 
        efforts that are essential to successful development 
        programs and shall be concentrated in those countries 
        that take positive steps to help themselves. Maximum 
        effort shall be made, in the administration of this 
        part, to stimulate the involvement of the people in the 
        development profess through the encouragement of 
        democratic participation in private and local 
        governmental activities and institution building 
        appropriate to the requirements of the recipient 
        countries.
            [``(2) Development planning must be the 
        responsibility of each sovereign country. United States 
        assistance should be administered in a collaborative 
        style to support the development goals chosen by each 
        country receiving assistance.
            [``(3) United States bilateral development 
        assistance should give high priority to undertakings 
        submitted by host governments which directly improve 
        the lives of the poorest of their people and their 
        capacity to participate in the development of their 
        countries, while also helping such governments enhance 
        their planning, technical, and administrative 
        capabilities needed to insure the success of such 
        undertakings.
            [``(4) Development assistance provided under this 
        chapter shall be concentrated in counties which will 
        make the most effective use of such assistance to help 
        satisfy basic human needs of poor people through 
        equitable growth, especially in those countries having 
        the greatest need for outside assistance. In order to 
        make possible consistent and informed judgments in this 
        respect, the President shall assess the commitment and 
        progress of countries in moving toward the objectives 
        and purposes of this chapter by utilizing criteria, 
        including but not limited to the following:
                    [``(A) increase in agricultural 
                productivity per unit of land through small-
                farm, labor-intensive agriculture;
                    [``(B) reduction of infant mortality;
                    [``(C) control of population growth;
                    [``(D) promotion of greater equality of 
                income distribution, including measures such as 
                more progressive taxation and more equitable 
                returns to small farmers;
                    [``(E) reduction of rates of unemployment 
                and underemployment; and
                    [``(F) increase in literacy.
            [``(5) United States development assistance should 
        focus on critical problems in those functional sectors 
        which affect the lives of the majority of the people in 
        the developing countries; food production and 
        nutrition; rural development and generation of gainful 
        employment; population planning and health; environment 
        and natural resources; and education, development 
        administration, and human resource development.
            [``(6) United States assistance shall encourage and 
        promote the participation of women in the national 
        economies of developing countries and the improvement 
        of women's status as an important means of promoting 
        the total development effort.
            [``(7) United States bilateral assistance shall 
        recognize that the prosperity of developing countries 
        and effective development efforts require the adoption 
        of an overall strategy that promotes efficient 
        utilization of energy and, therefore, consideration 
        shall be given the full implications of such assistance 
        on the price, availability, and consumption of energy 
        in recipient countries.
            [``(8) United States cooperation in development 
        should be carried out to the maximum extent possible 
        through the private sector, including those 
        institutions which already have ties in the developing 
        areas, such as educational institutions, cooperatives, 
        credit unions, free labor unions, and private and 
        voluntary agencies.
            [``(9) To the maximum extent practicable, United 
        States private investment should be encouraged in 
        economic and social development programs to which the 
        United States lends support.
            [``(10) Assistance shall be planned and utilized to 
        encourage regional cooperation by developing countries 
        in the solution of common problems and the development 
        of shared resources.
            [``(11) Assistance efforts of the United States 
        shall be planned and furnished to the maximum extent 
        practicable in coordination and cooperation with 
        assistance efforts of other countries, including the 
        planning and implementation of programs and projects on 
        a multilateral and multidonor basis.
            ``(12) United States bilateral development 
        assistance should be concentrated on projects which do 
        not involve large-scale capital transfers. However, to 
        the extent that such assistance does involve large-
        scale capital transfers, it should be furnished in 
        association with contributions from other countries 
        working together in a multilateral framework.
    [``(c) The Congress, recognizing the desirability of 
overcoming the worst aspects of absolute poverty by the end of 
this century by, among other measures, substantially lowering 
infant mortality and birth rates, and increasing life 
expectancy, food production, literacy, and employment, 
encourages the President to explore with other countries, 
through all appropriate channels, the feasibility of a 
worldwide cooperative effort to overcome the worst aspects of 
absolute poverty and to assure self-reliant growth in the 
developing countries by the year 2000.''.

                  [development assistance authorities

    [Sec. 102. (a) Chapter 1 of part I of the Foreign 
Assistance Act of 1961 is amended by adding at the end thereof 
the following:
    [``Sec. 122. General Authorities.--(a) In order to carry 
out the purposes of this chapter, the President is authorized 
to furnish assistance, on such terms and conditions as he may 
determine, to countries and areas through programs of grant and 
loan assistance, bilaterally or through regional, multilateral, 
or private entities.''.
    [(b)(1) Part I of such Act is further amended--
            [(A) by striking out ``less developed friendly'' in 
        the first sentence in subsection (b) of section 201;
            [(B) by striking out everything after the first 
        sentence in subsection (b) of section 201 through 
        ``herein) be loaned'' in subsection (d) of such section 
        and inserting in lieu thereof the following:
    [``The President shall determine the interest payable on 
any loan. In making loans under this chapter, the President 
shall consider the economic circumstances of the borrower and 
other relevant factors, including the capacity of the recipient 
country to repay the loan at a reasonable rate of interest, 
except that loans may not be made''; and
            [(C) by inserting subsection (b) of section 201, as 
        amended by subparagraphs (A) and (B) of this paragraph, 
        immediately after section 122(a), as added by 
        subsection 9a) of this section.
    [(2)(A) Section 301(a) of such Act is amended by striking 
out ``201(d)'' and inserting in lieu thereof ``122(b)''.
    [(B) Section 103(b) of the Agricultural Trade Development 
and Assistance Act of 1954 is amended by striking out ``201'' 
and inserting in lieu thereof ``122''.
    [(C) Section 106(a) of the Agricultural Trade Development 
and Assistance Act of 1954 is amended in the second sentence by 
striking out ``201'' and inserting in lieu thereof ``122(b)''.
    [(c)(1) Section 122 of the Foreign Assistance Act of 1961, 
as added by subsection (a) of this section and as amended by 
subsection (b)(1) of this section, is amended by adding at the 
end thereof the following new subsections:
    [``(c) Dollar receipts paid during any fiscal year from 
loans made under this part or from loans made under predecessor 
foreign assistance legislation shall be deposited in the 
Treasury as miscellaneous receipts.
    [``(d) Not to exceed $10,000,000 of the funds made 
available each fiscal year for the purposes of this chapter may 
be used for assistance, on such terms and conditions as the 
President may determine, to research and educational 
institutions in the United States for the purpose of 
strengthening their capacity to develop and carry out programs 
concerned with the economic and social development of 
developing countries.''.
    [(2) Section 299(a) of such Act is amended by striking 
``110(b), 211(a), and 211(d)'' and inserting in lieu thereof 
``110(b) and 122(d)''.
    [(d) Part I of such Act is further amended--
            [(1) in section 204--
                    [(A) by striking out ``Sec. 204. 
                Development Loan Committee.--'' and inserting 
                in lieu thereof ``(e)''; and
                    [(B) by striking out ``title'' and 
                inserting in lieu thereof ``chapter''; and
            [(2) by inserting such section, as so redesignated 
        and amended, at the end of section 122, as added and 
        amended by subsections (a) through (c) of this section.
    [(e) Chapter 1 of part I of such Act, as amended by 
subsections (a) through (d) of this section, is further amended 
by adding at the end thereof the following new section;
    [``Sec. 123. Private and Voluntary Organizations and 
Cooperatives in Overseas Development.--(a) The Congress finds 
that the participation of rural and urban poor people in their 
countries' development can be assisted and accelerated in an 
effective manner through an increase in activities planned and 
carried out by private and voluntary organizations and 
cooperatives. Such organizations and cooperatives, embodying 
the American spirit of self-help and assistance to others to 
improve their lives and incomes, constitute an important means 
of mobilizing private American financial and human resources to 
benefit poor people in developing countries. The Congress 
declares that it is in the interest of the United States that 
such organizations and cooperatives expand their overseas 
development efforts without compromising their private and 
independent nature. The Congress further declares that the 
financial resources of such organizations and cooperatives 
should be supplemented by the contribution of public funds for 
the purpose of undertaking development activities in accordance 
with the principles set forth in section 102. The Congress 
urges the Administrator of the agency primarily responsible for 
administering this part, in implementing programs authorized 
under this part, to draw on the resource of private and 
voluntary organizations and cooperatives to plan and carry out 
development activities.
    [``(b) In order to further the efficient use of United 
States voluntary contributions for development, relief, and 
rehabilitation of friendly peoples, the President is authorized 
to use funds made available for the purposes of this chapter to 
pay transportation charges on shipments by the American 
National Red Cross and by United States voluntary agencies 
registered with the Advisory Committee on Voluntary Foreign 
Aid.
    [``(c) Reimbursement under this section may be provided for 
transportation charges on shipments from United States ports, 
or in the case of excess or surplus property supplied by the 
United States from foreign ports, to ports of entry abroad or 
to points of entry abroad in cases (1) of landlocked countries, 
(2) where ports cannot be used effectively because of natural 
or other disturbances, (3) where carriers to a specified 
country are unavailable, or (4) where a substantial savings in 
costs or time can be effected by the utilization of points of 
entry other than ports.
    [``(d) Where practicable, the President shall make 
arrangements with the receiving country for free entry of such 
shipments and for the making available by the country of local 
currencies for the purpose of defraying the transportation 
costs of such shipments from the port or point of entry of the 
receiving country to the designated shipping point of the 
consignee.''.
    [``(f) Section 15 of such Act is repealed.
    [``(g)(1) Chapter 2 of part I of such Act, as amended by 
this section, is further amended--
            [``(A) by repealing title I (except sections 206 
        and 209), title II except sections 214 and 219), title 
        VI, title VII, and title VIII;
            [``(B) by amending the chapter heading to read as 
        follows: ``Chapter 2--Other Programs'';
            [``(C) by inserting the following new title heading 
        immediately before section 206: ``title i--multilateral 
        and regional development programs''; and
            [``(D) by inserting the following new title heading 
        immediately before section 214: ``title ii--american 
        schools and hospitals abroad; prototype desalting 
        plant''.
    [(B) Section 601(b)(5) of such Act is amended by striking 
out ``201'' and inserting in lieu thereof ``122''.
    [(C) Section 608(a) of such Act is amended by striking out 
``section 212'' and inserting in lieu thereof ``chapter 1 of 
part I''.
    [(D) Section 611(a) of such Act is amended by striking out 
``titles I, II, and VI of chapter 2 and chapter 4 of part I'' 
and inserting in lieu thereof ``chapter 1 of part I, title II 
of chapter 2 of part I, or chapter 4 of part II''.
    [(E) Section 611(e) of such Act is amended by striking out 
``titles I, II, or VI of chapter 2 or chapter 4 of part I of 
this Act'' and inserting in lieu thereof ``chapter 1 of part I, 
title II of chapter 2 of part I, or chapter 4 of part II''.
    [(F) Section 620(d) of such Act is amended by striking out 
``under section 201'' and inserting in lieu thereof ``on a loan 
basis under chapter 1 of part I''.
    [(G) Section 635(h) of such Act is amended by striking out 
``titles II, V, and VI (except development loans)'' and 
inserting in lieu thereof ``chapter 1 (except development 
loans) and title II''.
    [(H) Section 636(c) of such Act is amended by striking out 
``(other than title I of chapter 2 of part I)'' both places it 
appears.
    [(I) Section 636 (d) and (e) of such Act are each amended 
by striking out ``(other than title I of chapter 2 of part 
I)''.
    [(J) Section 636(f) of such Act is amended--
            [(i) by striking out ``section 212'' and inserting 
        in lieu thereof ``chapter 1 of part I''; and
            [(ii) by striking out ``title I of chapter 2'' and 
        inserting in lieu thereof ``chapter 1''.
    [(K)(i) Section 108 of such Act is repealed.
    [(ii) Section 109 of such Act is amended by striking out 
``Notwithstanding section 108 of this Act, whenever'' and 
inserting in lieu thereof ``Whenever''.

            [agriculture, rural, development, and nutrition

    [Sec. 103. (a) Section 103 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 103. Agriculture, Rural Development, and 
Nutrition.--(a)(1) In recognition of the fact that the great 
majority of the people of developing countries live in rural 
areas and are dependent on agriculture and agricultural-related 
pursuits for their livelihood, the President is authorized to 
furnish assistance, on such terms and conditions as he may 
determine, for agriculture, rural development, and nutrition--
            [``(A) to alleviate starvation, hunger, and 
        malnutrition;
            [``(B) to expand significantly the provision of 
        basic services to rural poor people to enhance their 
        capacity for self-help; and
            [``(C) to help create productive farm and off-farm 
        employment in rural areas to provide a more viable 
        economic base and enhance opportunities for improved 
        incomes, living standards, and contributions by rural 
        poor people to the economic and social development of 
        their countries.
    [``(2) There is authorized to be appropriated to the 
President for purposes of this section, in addition to funds 
otherwise available for such purposes, $665,231,000 for the 
fiscal year 1979. Amounts appropriated under this section are 
authorized to remain available until expended.
    [``(b)(1) Assistance provided under this section shall be 
used primarily for activities which are specifically designed 
to increase the productivity and income of the rural poor, 
through such means as creation and strengthening of local 
institutions linked to the regional and national levels; 
organization of a system of financial institutions which 
provide both savings and credit services to the poor; 
stimulation of small, labor-intensive enterprises in rural 
towns; improvement of marketing facilities and systems; 
expansion of rural infrastructure and utilities such as farm-
to-market roads, water management systems, land improvement, 
energy, and storage facilities; establishment of more equitable 
and more secure land tenure arrangements; and creation and 
strengthening of systems to provide other services and supplies 
needed by farmers, such as extension, research, training, 
fertilizer, water, forestry, soil conservation, and improved 
seed, in ways which assure access to them by small farmers.
    [``(2) In circumstances where development of major 
infrastructure is necessary to achieve the objectives set forth 
in this section, assistance for that purpose should be 
furnished under this chapter in association with significant 
contributions from other countries working together in a 
multilateral framework. Infrastructure projects so assisted 
should be complemented by other measures to ensure that the 
benefits of the infrastructure reach the poor.
    [``(c) The Congress finds that the greatest potential for 
significantly expanding availability of food for people in 
rural areas and augmenting world food production at relatively 
low cost lies in increasing the productivity of small farmers 
who constitute a majority of the agricultural producers in 
developing countries. Increasing the emphasis on rural 
development and expanded food production in the poorest nations 
of the developing world is a matter of social justice and a 
principal element contributing to broadly based economic 
growth, as well as an important factor in alleviating inflation 
in the industrialized countries. In the allocation of funds 
under this section, special attention shall be given to 
increasing agricultural production in countries which have been 
designated at `least developed' by the United Nations General 
Assembly.
    [``(d) Assistance provided under this section shall also be 
used in coordination with programs carried out under section 
104 to help improve nutrition of the people of developing 
countries through encouragement of increased production of 
crops with greater nutritional value; improvement of planning, 
research, and education with respect to nutrition, particularly 
with reference to improvement and expanded use of indigenously 
produced foodstuffs; and the undertaking of pilot or 
demonstration programs explicitly addressing the problem of 
malnutrition of poor and vulnerable people. In particular, the 
President is encouraged--
            [``(1) to devise and carry out in partnership with 
        developing countries a strategy for programs of 
        nutrition and health improvement for mothers and 
        children, including breast feeding; and
            [``(2) to provide technical, financial, and 
        material support to individuals or groups at the local 
        level for such programs.
    [``(e) Local currency proceeds from sales of commodities 
provided under the Agricultural Trade Development and 
Assistance Act of 1954 which are owned by foreign governments 
shall be used whenever practicable to carry out the provisions 
of this section.''.
    [(b) Section 644 of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following:
    [(o) `Agriculture' includes aquaculture and fisheries.
    [(p) `Farmers' includes fishermen and other persons 
employed in cultivating and harvesting food resources from salt 
and fresh waters.''.
    [(c) Sections 117 and 296 (f) and (g) of such Act are 
repealed.
    [(d) Section 103A of such Act is amended by inserting 
``environmental,'' immediately after ``social,'' in clause (2) 
of the first sentence.

                         [population and health

    [Sec. 104. (a) Section 104 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 104. Population and Health.--(a) Findings.--The 
Congress recognizes that poor health conditions and 
uncontrolled population growth can vitiate otherwise successful 
development efforts.
    [``Large families in developing countries are the result of 
complex social and economic factors which change relatively 
slowly among the poor majority least affected by economic 
progress, as well as the result of a lack of effective birth 
control. Therefore, effective family planning depends upon 
economic and social change as well as the delivery of services 
and is often a matter of political and religious sensitivity. 
While every country has the right to determine its own policies 
with respect to population growth, voluntary population 
planning programs can make a substantial contribution to 
economic development, higher living standards, and improved 
health and nutrition.
    [``Good health conditions are a principal element in 
improved quality of life and contribute to the indiviual's 
capacity to participate in the development process, while poor 
health and debilitating disease can limit productivity.
    [``(b) Assistance for Population Planning.--In order to 
increase the opportunities and motivation for family planning 
and to reduce the rate of population growth, the President is 
authorized to furnish assistance, on such terms and conditions 
as he may determine, for voluntary population planning. In 
addition to the provision of family planning information and 
services and the conduct of directly relevant demographic 
research, population planning programs shall emphasize 
motivation for small families.
    [``(c) Assistance for Health and Disease Prevention.--In 
order to contribute to improvements in the health of the 
greatest number of poor people in developing countries, the 
President is authorized to furnish assistance, on such terms 
and conditions as he may determine, for health programs. 
Assistance under this subsection shall be used primarily for 
basic integrated health services, safe water and sanitation, 
disease prevention and control, and related health planning and 
research. This assistance shall emphasize self-sustaining 
community-based health programs by means such as training of 
health auxiliary and other appropriate personnel, support for 
the establishment and evaluation of projects that can be 
replicated on a broader scale, measures to improve management 
of health programs, and other services and supplies to support 
health and disease prevention programs.
    [(d) Integration of Assistance Programs.--(1) Assistance 
under this chapter shall be administered so as to give 
particular attention to the interrelationship between (A) 
population growth and (B) development and overall improvement 
in living standards in developing countries, and to the impact 
of all programs, project, and activities on population growth. 
All appropriate activities proposed for financing under this 
chapter shall be designed to build motivation for smaller 
families through modification of economic and social conditions 
supportive of the desire for large families, in programs such 
as education in and out of school, nutrition, disease control, 
maternal and child health services, imporvenments in the status 
and employment of women, agricultural production, rural 
development, and assistance to the urban poor. Population 
planning programs shall be coordinated with other programs 
aimed at reducing the infant mortality rate, providing better 
nutrition for pregnant women and infants, and raising the 
standard of living of the poor.
    [``(2) Since the problems of malnutrition, disease, and 
rapid population growth are closely related, planning for 
assistance to be provided under subsections (b) and (c) of this 
section and under section 13 shall be coordinated to the 
maximum extent practicable.
    [``(3) Assistance provided under this section shall 
emphasize low-cost integrated delivery systems for health, 
nutrition, and family planning for the poorest people, with 
particular attention to the needs of mothers and young 
children, using paramedical and auxiliary medical personnel, 
clinics and health posts, commercial distribution systems, and 
other modes of community outreach.
    [``(e) Research and Analysis.--(1) Health and population 
research and analysis carried out under this Act shall--
            [``(A) be undertaken to the maximum extent 
        practicable in developing countries by developing 
        country personnel, linked as appropriate with private 
        and governmental biomedical research facilities within 
        the United States;
            [``(B) take account of the special needs of the 
        poor people of developing countries in the 
        determination of research priorities; and
            [``(C) make extensive use of field testing to adapt 
        basic research to local conditions.
    [``(2) The President is authorized to study the complex 
factors affecting population growth in developing countries and 
to identify factors which might motivate people to plan family 
size or to space their children.
    [``(f) Prohibition on Use of Funds for Abortions and 
Involuntary Sterilizations.--(1) None of the funds made 
available to carry out this part 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.
    [``(2) None of the funds made available to carry out this 
part may be used to pay for the performance of involuntary 
sterilizations as a method of family planning or to coerce or 
provide any financial incentive to any person to undergo 
sterilizations.
    [``(g) Authorization of Appropriations.--There are 
authorized to be appropriated to the President, in addition to 
funds otherwise available for such purposes--
            [``(1) $224,745,000 for the fiscal year 1979 to 
        carry out subsection (b) of this section; and
            [``(2) $148,494,000 for the fiscal year 1979 to 
        carry out subsection (c) of this section.
Funds appropriated under this subsection are authorized to 
remain available until expended.''.
    [(b) Section 114 of title X of chapter 2 of part I of such 
Act are repealed.

               [education and human resources development

    [Sec. 105. Section 105(a) of the Foreign Assistance Act of 
1961 is amended in the second sentence by striking out 
``$101,800,000 for the fiscal year 1977 and $84,900,000 for the 
fiscal year 1978, which amounts are'' and inserting in lieu 
thereof ``$109,036,000 for the fiscal year 1979, which amount 
is''.

 [technical assistance, energy, research, reconstruction, and selected 
                          development problems

    [Sec. 106. Section 106(b) of the Foreign Assistance Act of 
1961 is amended in the first sentence by striking out 
``$104,500,000 for the fiscal year 1977 and $105,000,000 for 
the fiscal year 1978, which amounts are'' and inserting in lieu 
thereof ``$126,244,000 for the fiscal year 1979, which amount 
is''.

                        [appropriate technology

    [Sec. 107. Section 107 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 107. Appropriate technology.--(a) In carrying out 
activities under this chapter, the President shall place 
special emphasis on the use of relatively smaller, cost-saving, 
labor-using technologies that are generally most appropriate 
for the small farms, small businesses, and small incomes of the 
poor.
    [``(b) Funds made available to carry out this chapter 
should be used to the extent practicable for activities in the 
field of appropriate technology, including support of an 
expanded and coordinated private effort to promote the 
development and dissemination of appropriate technology in 
developing countries.''.

                         [women in development

    [Sec. 108. Section 113 of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
subsection:
    [``(d)(1) Up to $10,000,000 of the funds made available 
each fiscal year under this chapter shall be used, in addition 
to funds otherwise available for such purposes, for assistance 
on such terms and conditions as the President may determine to 
encourage and promote the participation and integration of 
women as equal partners in the development process in the 
developing countries. These funds shall be used primarily to 
support activities which will increase the economic 
productivity and income earning capacity of women.
    [``(2) Nothing in this section shall be construed to 
authorize the establishment of a separate development 
assistance program for women.''.

                        [human rights activities

    [Sec. 109. Section 116(e) of the Foreign Assistance Act of 
1961 is amended in the first sentence--
            [(1) by striking out ``Of'' and inserting in lieu 
        thereof ``The President is authorized and encouraged to 
        use not less than $1,500,000 of''; and
            [(2) by striking out ``1978, not less than $750,000 
        may be used only'' and inserting in lieu thereof 
        ``1979''.

                   [environment and natural resources

    [Sec. 110. Section 118 of the Foreign Assistance Act of 
1961 is amended--
            [(1) by inserting ``(a)'' immediately after the 
        section caption; and
            [(2) by adding at the end thereof the following new 
        subsections;
    [``(b) In carrying out programs under this chapter, the 
President shall take into consideration the environmental 
consequences of development actions.
    [``(c) In furtherance of the purposes of this section, the 
President shall carry out studies to identify the major 
environment and natural resource problems, and the 
institutional capabilities to solve those problems, which exist 
in developing countries. The results of these studies shall be 
reported to the Congress by March 1, 1979.''.

           [renewable and unconventional energy technologies

    [Sec. 111. Section 119 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 119. Renewable and Unconventional Energy 
Technologies.--(a) The President is authorized to furnish 
assistance under this chapter for cooperative programs with 
developing countries in energy production and conservation, 
with particular emphasis on programs in research and 
development, and use of small-scale, decentralized, renewable 
energy sources for rural areas carried out as integral parts of 
rural development efforts in accordance with section 103 of 
this Act. Such programs shall also be directed toward the 
earliest practicable development and use of energy technologies 
which are environmentally acceptable, require minimum capital 
investment, are most acceptable to and affordable by the people 
using them, are simple and inexpensive to use and maintain, and 
are transferable from one region of the world to another.
    [``(b) The agency primarily responsible for administering 
this part shall coordinate with the Department of Energy, to 
the maximum extent possible, the planning and implementation of 
energy programs authorized under this chapter, including 
section 107, and shall consult with the Department of Energy on 
such planning and implementation.''.

                 [relatively least developed countries

    [Sec. 112. (a)(1) Chapter 1 of part I of the Foreign 
Assistance Act of 1961, as amended by section 102 of this Act, 
is further amended by inserting the following new section 124 
immediately after section 123:
    [``Sec. 124. Relatively Least Developed Countries.--(a) 
Relatively least developed countries (as determined on the 
basis of criteria comparable to those used for the United 
Nations General Assembly list of `least developed countries') 
are characterized by extreme poverty, very limited 
infrastructure, and limited administrative capacity to 
implement basic human needs growth strategies. In such 
countries special measures may be necessary to insure the full 
effectiveness of assistance furnished under this part.
    [``(b) For the purpose of promoting economic growth in 
these countries, the President is authorized and encouraged to 
make assistance under this chapter available on a grant basis 
to the maximum extent that is consistent with the attainment of 
United States development objectives.
    [``(c)(1) The Congress recognizes that the relatively least 
developed countries have virtually no access to private 
international capital markets. Insofar as possible, prior 
assistance terms should be consistent with present grant 
assistance terms for relatively least developed countries. 
Therefore, notwithstanding section 620(r) of this Act and 
section 321 of the International Development and Food 
Assistance Act of 1975 but subject to paragraph (2) of this 
subsection, the President on a case-by-case basis, taking into 
account the needs of the country for financial resources and 
the commitment of the country to the development objectives set 
forth in sections 101 and 102--
            [``(A) may permit a relatively least developed 
        country to place amounts, which would otherwise be paid 
        to the United States as payments on principal or 
        interest on liability incurred by that country under 
        this part (or any predecessor legislation) into local 
        currency accounts (in equivalent amounts of local 
        currencies as determined by the official exchange rate 
        for United States dollars) for use by the relatively 
        least developed country, with the concurrence of the 
        Administrator of the agency primarily responsible for 
        administering this part, for activities which are 
        consistent with section 102; and
            [``(B) may waive interest payments on liability 
        incurred by a relatively least developed country under 
        this part (or any predecessor legislation) if the 
        President determines that that country would be unable 
        to use for development purposes the equivalent amounts 
        of local currencies which could be made available under 
        subparagraph (A).
    [``(2) The aggregate amount of interest waived and interest 
and principal paid into local currency accounts under this 
subsection in any fiscal year may not exceed the amount 
approved for such purpose in an Act appropriating funds to 
carry out this chapter for that fiscal year, which amount may 
not exceed the amount authorized to be so approved by the 
annual authorizing legislation for development assistance 
programs.
    [``(3) In exercising the authority granted by this 
subsection, the President should act in concert with other 
creditor countries.
    [``(d) The President may on a case-by-case basis waive the 
requirement of section 110(a) for financial or ``in kind'' 
contributions in the case of programs, projects, or activities 
in relatively least developed countries.
    [``(e) Section 110(b) shall not apply with respect to 
grants to relatively least developed countries.''.
    [(2) The authority granted by section 124(c) of the Foreign 
Assistance Act of 1961 shall not become effective until October 
1, 1979.
    [(b)(1) Section 110(a) of such Act is amended by striking 
out ``and except that'' and all that follows through the end of 
the sentence and inserting in lieu thereof a period.
    [(2) Section 110(b) of such Act is amended by striking out 
``Except'' and all that follows through ``no'' and inserting in 
lieu thereof ``No''.

                    [project and program evaluation

    [Sec. 113. Chapter 1 of part I of the Foreign Assistance 
Act, as amended by sections 102 and 112 of this Act, is further 
amended by inserting the following new section 125 immediately 
after section 124:
    [``Sec. 125. Project and Program Evaluation.--(a) The 
Administrator of the agency primarily responsible for 
administering this part is directed to improve the assessment 
and evaluation of the programs and projects carried out by that 
agency under this chapter. The Administrator shall consult with 
the appropriate committees of the Congress in establishing 
standards for such evaluations.
    [``(b) The President shall report on actions taken by the 
international financial institutions and the United Nations 
Development Program to improve the evaluation of projects and 
programs conducted by those institutions. The report required 
by this subsection shall be submitted as a part of the report 
required by section 634.''.

                 [american schools and hospitals abroad

    [Sec. 114. Section 214 of the Foreign Assistance Act of 
1961 is amended--
            [(1) in subsection (c) by striking out ``for the 
        fiscal year 1977, $25,000,000, and for the fiscal year 
        1978, $25,000,000, which amounts are'' and inserting in 
        lieu thereof ``$25,000,000 for the fiscal year 1979, 
        which amount is''; and
            [(2) by striking out subsections (d) and (e) and by 
        redesignating subsection (f) as subsection (d).

              [housing and other credit guaranty programs

    [Sec. 115. (a) Sections 221 and 222 of the Foreign Act of 
1961 are amended to read as follows:
    [``Sec. 221. Housing Guaranties.--The Congress recognizes 
that shelter requirements are among the most fundamental of 
human needs. Shelter for most people in the developing 
countries consists largely of domestic materials assembled by 
local labor. While recognizing that most financing for such 
housing must come from domestic resources, the Congress finds 
that carefully designed programs involving United States 
capital and expertise can increase the availability of domestic 
financing for improved housing and related services for low-
income people by demonstrating to local entrepreneurs and 
institutions that providing low-cost housing can be financially 
viable. The Congress reaffirms, therefore, that the United 
States should continue to assist developing countries in 
marshalling resources for low-cost housing. Particular 
attention should be given to programs which will support pilot 
projects for low-cost shelter or which will have a maximum 
demonstration impact on local institutions and national policy. 
The congress declares that the long run goal of all such 
programs should be to develop domestic construction 
capabilities and to stimulate local credit institutions to make 
available domestic capital and other management and 
technological resources required for effective low-cost shelter 
programs and policies.
    [``Sec. 222. Authorization.--(a) To carry out the policy of 
section 221, the President is authorized to issue guaranties to 
eligible investors (as defined in section 238(c)) assuring 
against losses incurred in connection with loans made for 
projects meeting the criteria set forth in section 221. The 
total principal amount of guaranties issued under this title or 
heretofore issued under prior housing guaranty authorities, 
which are outstanding at any one time, shall not exceed 
$1,180,000,000. The authority of this section shall continue 
until September 30, 1980. The President may issue regulations 
from time to time with regard to the terms and conditions upon 
which such guaranties shall be issued and the eligibility of 
lenders.
    [``(b) Activities carried out under this section shall 
emphasize
            [``(1) projects which provide improved home sites 
        to poor families on which to build shelter, and related 
        services;
            [``(2) projects comprised of expandable core 
        shelter units on service sites;
            [``(3) slum upgrading projects designed to conserve 
        and improve existing shelter;
            [``(4) shelter projects for low income people 
        designed for demonstration or institution building 
        purposes; and
            [``(5) community facilities and services in support 
        of projects authorized under this section to improve 
        the shelter occupied by the poor.
    [``(c) In issuing guaranties under this section with 
respect to projects in a country which require the use or 
conservation of energy, the President shall give consideration 
to the use of solar energy technologies, where such 
technologies are economically and technically feasible. 
Technologies which may be used include solar hot water systems, 
solar heating and cooling, passive solar heating, biomass 
conversion, photovoltaic and wind applications, and community-
scale thermal applications.''.
    [``(b) Section 222A(h) of such Act is amended by striking 
out ``September 30, 1978'' and inserting in lieu thereof 
``September 30, 1979''.
    [``(c) Section 223(a) of such Act is amended by striking 
out ``221, 222,'' and inserting in lieu thereof ``222''.
    [``(d) Section 223(b) of such Act is amended in the first 
sentence--
            [``(1) by striking out ``221 or'' the first place 
        it appears;
            [``(2) by striking out ``221 and section 222 and 
        of'' and inserting in lieu thereof ``222 and 
        administering housing guaranties heretofore authorized 
        under this title and under'';
            [``(3) by striking out ``section 221 or'' the 
        second place it appears; and
            [``(4) by inserting ``this title or'' immediately 
        after ``heretofore pursuant to''.
    [(e) Section 223(c) of such Act is amended by striking out 
``section 221 or'' and by inserting ``under this title or'' 
immediately after ``heretofore''.
    [(f) Section 223(d) of such Act is amended--
            [``(1) by striking out ``221, 222, 222A,'' and 
        inserting in lieu thereof ``222 or 222A''; and
            [(2) by inserting ``under this title or'' 
        immediately after ``heretofore''.
    [(g) Section 223(f) of such Act is amended in the first 
sentence by striking out ``section 221 or''.
    [(h) Section 223(g) of such Act is amended by inserting 
``heretofore under this title or'' immediately after 
``outstanding''.
    [(i) Section 223(i) of such Act is repealed.
    [(j) Section 223(j) of such Act is amended by striking out 
``sections 221 and'' in the first sentence and inserting in 
lieu thereof ``section''.
    [(k) Section 620(l) of such Act is amended by striking out 
``221(b)(1)'' both places it appears and inserting in lieu 
thereof ``234(a)(1)''.

         [ASSISTANCE FOR CERTAIN DISADVANTAGED CHILDREN IN ASIA

    [Sec. 116. Chapter 2 of part I of the Foreign Assistance 
Act of 1961 is amended by striking out the title heading for 
title V and inserting in lieu thereof the following:

               [``TITLE V--DISADVANTAGED CHILDREN IN ASIA

    [Sec. 241. Assistance to Certain Disadvantaged Children in 
Asia.--(a) The Congress recognizes the humanitarian needs of 
disadvantaged children in Asian countries where there has been 
or continues to be a heavy presence of United States military 
and related personnel in recent years. Moreover, the Congress 
finds that inadequate provision has been made for the care and 
welfare of such disadvantaged children, particularly those 
fathered by the United States citizens.
    [``(b) Accordingly, the President is authorized to expend 
up to $2,000,000 of funds made available under chapter 1 of 
this part, in addition to funds otherwise available for such 
purposes, to help meet the needs of these disadvantaged 
children in Asia by assisting in the expansion and improvement 
of orphanages, hostels, day care centers, school feeding 
programs, and health, education, and welfare programs. 
Assistance provided under this section shall be furnished under 
the auspices of and by international organizations or private 
voluntary agencies operating within, and in cooperation with, 
the countries of Asia where these disadvantaged children 
reside.''.

               [international organizations and programs

    [Sec. 117. (a) Section 302(a)(1) of the Foreign Assistance 
Act of 1961 is amended in the first sentence by striking out 
``for the fiscal year 1977, $219,900,000 and for the fiscal 
year 1978, $252,000,000'' and inserting in lieu thereof 
$285,450,000 for the fiscal year 1979 of which not to exceed 
$300,000 shall be available for contribution to the United 
Nations Trust Fund on South Africa''.
    [(b)(1) Section 302(a)(1) of such Act is further amended--
            [(A) by striking out ``$42,500,000'' in the third 
        sentence and inserting in lieu thereof $52,000,000''; 
        and
            [(B) by inserting immediately after the third 
        sentence the following: ``Of the funds authorized to be 
        appropriated under this subsection for the fiscal year 
        1979, not to exceed $52,000,000 shall be available for 
        voluntary contributions to the United Nations Relief 
        and Works Agency for Palestine Refugees, except that 
        not more than $42,500,000 of this amount may be 
        obligated unless the President certifies to the 
        Congress that any contributions above this level have 
        been matched by equivalent contributions by members of 
        the Organization of Petroleum Exporting Countries.''.
    [(c) Section 302(a) of such Act is amended by adding at the 
end thereof the following new paragraph:
    [``(3) None of the funds made available under this 
subsection for the fiscal year 1979 may be used for the United 
Nations for Institute for Namibia unless the President 
determines that such funds will not be used to support the 
military or paramilitary activities of the Southwest African 
Peoples Organization.''.
    [(d) Section 301 of such Act is amended by adding at the 
end thereof the following new subsection:
    [``(g) It is the sense of the Congress that the President 
should instruct the appropriate representatives of the United 
States to the United Nations to encourage the specialized 
agencies of the United Nations to transfer the funding of 
technical assistance programs carried out by such agencies to 
the United Nations Development Program.''.
    [(e) In addition to amounts otherwise available for such 
purpose, there are authorized to be appropriated to the 
President not to exceed $1,000,000 for contributions to the 
World Assembly on Aging to be convened under the auspices of 
the United Nations, except that the amount so contributed may 
not exceed 25 percent of the expenditures of such Assembly. 
Amounts appropriated under this subsection be authorized to 
remain available until expended.

                   [international disaster assistance

    [Sec. 118. (a) Section 491(b) of the Foreign Assistance Act 
of 1961 is amended by striking ``or international 
organization'' and inserting in lieu thereof ``, international 
organization, or private voluntary organization,''.
    [(b) Section 492 of such act is amended--
            [(1) in the first sentence by striking out ``each 
        of the fiscal years 1977 and 1978'' and inserting in 
        lieu thereof ``the fiscal year 1979''; and
            [(2) by striking out the third sentence.

                    [assistance for african refugees

    [Sec. 119. Chapter 9 of part I of the Foreign Assistance 
Act of 1961 is amended--
            [(1) by redesignating section 495D, as added by 
        section 121 of the International Development and Food 
        Assistance Act of 1977, as section 495E; and
            [(2) by adding at the end thereof the following new 
        section:
    [``Sec. 495F. Assistance to African Refugees.--The 
President is authorized to furnish assistance, on such terms 
and conditions as he may determine, exclusively for the relief 
and rehabilitation of African refugees and other needy people 
located in Africa. There is authorized to be appropriated for 
the fiscal year 1979 for purposes of this section, in addition 
to amounts otherwise available for such purposes, $15,000,000, 
which amount is authorized to remain available until expended. 
Assistance under this section shall be provided in accordance 
with policies and general authorities contained in section 
491.''.

                   [locust plagues control in africa

    [Sec. 120. In order to assist in attempts to control locust 
plagues in Africa, especially in the Horn of Africa, there is 
authorized to be appropriated to the President, in addition to 
amounts otherwise authorized for disaster relief purposes, 
$2,000,000, which amount is authorized to remain available 
until expended.

                   [reimbursable development programs

    [Sec. 121. Section 661 of the Foreign Assistance Act of 
1961 is amended by striking out ``$2,000,000'' the first place 
it appears and all that follows through ``1978,'' and inserting 
in lieu thereof ``$3,000,000 of the funds made available for 
the purposes of this Act for the fiscal year 1979''.

                    [african development foundation

    [Sec. 122. (a) The Congress declares that the United States 
should place higher priority on the formulation and 
implementation of policies and programs to enable the people of 
African nations to develop their potential, fulfill their 
aspirations, and enjoy better, more productive lives. In 
furtherance of these objectives, the Congress finds that 
additional support is needed for community-based self-help 
activities in Africa and that an African Development 
Foundation, organized to further the purposes set forth in 
section 123 of the Foreign Assistance Act of 1961, can 
complement current United States development programs in 
Africa.

                       [TITLE II--FOOD FOR PEACE

        [transportation costs for food for development programs

    [Sec. 202. Section 304 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by adding at 
the end thereof the following new subsection:
    [``(d) The Commodity Credit Corporation may pay, with 
respect to commodities made available under this title to a 
country on the United Nations Conference on Trade and 
Development list of relatively least developed countries, 
freight charges from United States ports to designated ports of 
entry abroad or to designated points of entry abroad in the 
case of landlocked countries.''.

 [application of food for development proceeds to repayment obligations

    [Sec. 203. Section 305 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended--
            [(1) by inserting ``(a)'' immediately after ``Sec. 
        305.''; and
            [(2) by adding at the end thereof the following new 
        subsection:
    [``(b) Such disbursements shall be deemed to be payments 
with respect to the credit furnished pursuant to the agreement 
or if, in the case of a country on the United Nation's 
Conference on Trade and Development list of relatively least 
developed countries, the disbursements in a fiscal year are 
greater than the amount of the annual repayment obligation 
which that country would have to meet for that fiscal year 
under the agreement but for the disbursements in accordance 
with the Food for Development Program, then the disbursements 
which are in excess of the amount of that annual repayment 
obligation may, to the extent provided in the agreement, be 
considered as payments with respect to the annual repayment 
obligations of that country for that fiscal year under other 
financing agreements under this Act.''.

[TITLE III--COORDINATION AND ADMINISTRATION OF THE DEVELOPMENT-RELATED 
               PROGRAMS AND POLICIES OF THE UNITED STATES

                       [declaration of objectives

    [Sec. 301. The Congress declares that the United States 
Government should place higher priority, in the formulation and 
implementation of governmental policies, on efforts to help 
meet the legitimate needs of poor countries for improving the 
quality of the lives of their populations. The Congress also 
declares that greater effectiveness and efficiency of United 
States assistance to such countries can be achieved through 
improved coordination and administrative consolidation.

                     [implementation of objectives

    [Sec. 302. In furtherance of the objectives set forth in 
section 301 the Congress directs the President to institute a 
strengthened system of coordination of all United States 
economic policies which impact on the developing countries of 
the world, including but not limited to policies concerning 
international trade, commodity agreements, investment, debt, 
international financial institutions, international and 
multilateral development agencies and programs, and 
concessional and grant food assistance, in addition to policies 
concerning United States bilateral economic development 
assistance.]
          * * * * * * *

                  [TITLE V--ADMINISTRATIVE PROVISIONS

                [use of competitive selection procedures

    [Sec. 501. Section 601 of the Foreign Assistance Act of 
1961 is amended by adding the following new subsection at the 
end thereof:
    [``(e)(1) The Congress finds that significantly greater 
effort must be made in carrying out programs under part I of 
this Act to award contracts on the basis of competitive 
selection procedures. All such contracts should be let on the 
basis of competitive selection procedures except in those 
limited cases in which the procurement regulations governing 
the agency primarily responsible for administering part I of 
this Act allow noncompetitive procedures to be used.
    [``(2) In order to provide the Congress with information to 
assist it in assessing the efforts of the agency primarily 
responsible for administering part I of this Act to make the 
maximum possible use of competitive selection procedures, the 
Administrator of that agency--
            [``(A) when submitting the congressional 
        presentation materials for developing assistance for 
        fiscal year 1980, shall also submit to the Congress a 
        report identifying and describing each contract in an 
        amount in excess of $100,000 which the agency entered 
        into without competitive procedures during the period 
        April 1, 1978, to September 30, 1978, and explaining 
        why each such contract was not the subject of 
        competitive selection procedures; and
            [``(B) when submitting the congressional 
        presentation materials for development assistance for 
        fiscal year 1981, shall also submit to the Congress a 
        report identifying and describing each contract in an 
        amount in excess of $100,000 which the agency entered 
        into without competitive selection procedures during 
        the fiscal year 1979 and explaining why each such 
        contract was not the subject of competitive selection 
        procedures.''.

                   [annual foreign assistance report

    [Sec. 502. (a) Chapter 2 of part III of the Foreign 
Assistance Act of 1961 is amended--
            [(1) by striking out ``(c)'' in section 634(c) and 
        inserting in lieu thereof ``Sec. 633A. Furnishing 
        Information.--'' and by inserting such redesignated 
        section immediately after section 633; and
            [(2) by striking out the remaining provisions of 
        section 634 and inserting in lieu thereof the 
        following:
    [``Sec. 634. Annual Report.--(a) In order that the Congress 
and the American people may be better and more currently 
informed regarding United States development policy, including 
the amounts and effectiveness of assistance provided by the 
United States Government to developing countries and 
international organizations, the Chairman of the Development 
Coordination Committee shall transmit to the Congress not later 
than February 1 of each year a report on foreign assistance for 
the fiscal year ending the previous September 30. The report 
shall include--
            [``(1)(A) a comprehensive and coordinated review of 
        all United States policies and programs having a major 
        impact on the development of developing countries, 
        including but not limited to bilateral and multilateral 
        assistance, trade, debt, employment, food, energy, 
        technology, population, oceans, environment, human 
        settlements, natural resources, and participation in 
        international agencies concerned with development;
            [``(B) an assessment of the impact of such policies 
        and programs on the well-being of the poor majority in 
        developing countries in accordance with the policy 
        objectives of chapter 1 of part I, including the 
        progress developing countries are making toward 
        achieving those objectives which are indicative of 
        improved well-being of the poor majority, which 
        objectives shall include but not be limited to 
        increasing life expectancy and literacy, lowering 
        infant mortality and birth rates, and increasing food 
        production and employment; and
            [``(C) an assessment of the impact of such policies 
        and programs on economic conditions in the United 
        States, including but not limited to employment, wages, 
        and working conditions;
            [``(2) the dollar value of all foreign assistance 
        and guaranties by category and by country provided or 
        made by the United States Government by any means to 
        all foreign countries and international organizations--
                    [``(A) from 1946 to the fiscal year 
                immediately preceding the fiscal year for which 
                the report is required;
                    [``(B) as presented to Congress for the 
                immediate preceding fiscal year;
                    [``(C) as obligated during the immediately 
                preceding fiscal year;
                    [``(D) as planned for the fiscal year in 
                which the report is presented; and
                    [``(E) as proposed for the fiscal year 
                following the year in which the report is 
                presented;
            [``(3) a summary of repayments, by country, to the 
        United States from previous foreign assistance loans;
            [``(4) the status of each loan and each contract of 
        guaranty or insurance theretofore made under this Act, 
        predecessor Acts, or any Act authorizing international 
        security assistance, with respect to which there 
        remains outstanding any unpaid obligation or potential 
        liability; the status of each extension of credit for 
        the procurement of defense articles or defense 
        services, and of each contract of guarantee in 
        connection with any such procurement, therefore made 
        under the Arms Export Control Act with respect to which 
        their remains outstanding any unpaid obligation or 
        potential liability; the status of each sale of 
        agricultural commodities on credit terms, theretofore 
        made under the Agricultural Trade Development and 
        Assistance Act of 1954 with respect to which there 
        remains outstanding any unpaid obligation; and the 
        status of each transaction with respect to which a 
        loan, contract or guarantee of insurance, or extension 
        of credit (of participation therein) was theretofore 
        made under the Export-Import Bank Act of 1945 with 
        respect to which there remains outstanding any unpaid 
        obligation or potential liability; except that such 
        report shall include individually only any loan, 
        contract, sale, extension of credit, or other 
        transaction listed in this paragraph which is in excess 
        of $1,000,000;
            [``(5)(A) the status of the debt servicing capacity 
        of each country receiving assistance under this Act;
            [``(B) all forms of debt relief granted by the 
        United States with respect to such countries, together 
        with a detailed statement of the specific debt relief 
        granted with respect to each such country and the 
        purpose for which it was granted; and
            [``(C) a summary of the net aid flow from the 
        United States to such countries, taking into 
        consideration the debt relief granted by the United 
        States; and
            [``(6) such other matters relating to foreign 
        assistance provided by the United States Government 
        under part I as the Chairman of the Development 
        Coordination Committee considers appropriate.
    [``(b) For purposes of this section--
            [``(1) `foreign assistance' means any tangible or 
        intangible item provided by the United States 
        Government to a foreign country or international 
        organization under this or any other Act, including but 
        not limited to any training, service, or technical 
        advice, any item of real, personal, or mixed property, 
        any agricultural commodity, United States dollars, and 
        any currencies of any foreign country which are owned 
        by the United States Government; and
            [``(2) `provided by the United States Government' 
        includes, but is not limited to, foreign assistance 
        provided by means of gift, loan, sale, credit, or 
        guaranty.''.
    [(b) Part III of the Foreign Assistance Act of 1961 is 
amended by redesignating section 671 as section 634A and by 
inserting such redesignated section immediately after section 
634.
    [(c) Part III of such Act, as amended by subsection (b) of 
this section, is further amended by adding the following new 
section immediately after new section 634A:
    [``Sec. 634B. Classification of Reports.--All information 
contained in any report transmitted under this Act shall be 
public information. However, in the case of any item of 
information be included in any such report that the President, 
on an extraordinary basis, determines is clearly determental to 
the security of the United States, he shall explain in a 
supplemental report why publication of each specific item would 
be detrimental to the security of the United States. A 
supplemental report shall be transmitted to the Congress at the 
time the report is transmitted.''.
    [(d)(1) Title XI of chapter 2 of part I and sections 
120(d), 222A (j), 495C(e), 620(w), 621A(c), 640B(d), and 657 of 
the Foreign Assistance Act of 1961 are repealed.
    [(2) Section 640B(g) of such Act is amended by striking out 
``subsection (d), the President'' and inserting in lieu thereof 
``section 634, the Chairman of the Committee''.

                   [reimbursable technical assistance

    [``Sec. 503. Section 607 of the Foreign Assistance Act of 
1961 is amended by redesignating subsection (b) as subsection 
(c) and by inserting the following new subsection (b) 
immediately after subsection (a):
    [``(b) When any agency of the United States Government 
provides services on an advance-of-funds or reimbursable basis 
under this section, such agency may contract with individuals 
for personal service abroad or in the United States to perform 
such services or to replace officers or employees of the United 
States Government who are assigned by the agency to provide 
such services. Such individuals shall not be regarded as 
employees of the United States Government for the purpose of 
any law administered by the Civil Service Commission.''.

                            [auditor general

    [``Sec. 504. Section 624 of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
subsection:
    [``(g)(1) In addition to the officers provided for in 
subsection (a) of this section, there shall be an Auditor 
General who shall be appointed by the Administrator of the 
agency primarily responsible for administering part I of this 
Act. The Auditor General shall be compensated at the rate 
provided for level V of the Executive Schedule under section 
5316 of title 5, United States Code.
    [``(2) The Auditor General shall report to and be under the 
direct supervision of the Administrator.
    [``(3) The Auditor General shall, with respect to the 
duties and responsibilities of the agency primarily responsible 
for administering part I of this Act and subject to the 
authority of the Administrator of such agency, supervise, 
direct, and control all audit and investigative activities 
relating to the programs and operations of the agency.
    [``(4) The Auditory General shall submit an annual report 
to the Administrator. This report shall be provided to the 
Congress without further clearance or approval as part of the 
annual report required by section 634 of this Act.
    [``(5) In the execution of the responsibilities and duties 
assigned in paragraph (3) of this subsection, the Auditor 
General shall have (A) access to all records, reports, papers, 
and documents of the agency and its administrative 
subdivisions, and (B) authority to request such information or 
assistance as necessary for carrying out the duties set forth 
in this subsection from any Federal, State, or local 
governmental agency or unit thereof, and from contractors, 
grantees, and loan recipients of the agency.''.

                            [motor vehicles

    [Sec. 505. Section 636(a)(5) of the Foreign Assistance Act 
of 1961 is amended by striking ``$3,500'' and inserting in lieu 
thereof ``the current market price in the United States of a 
mid-sized sedan or station wagon meeting the requirements 
established by the General Services Administration for a Class 
III vehicle of United States manufacture (or, if the 
replacement vehicle is a right-hand drive vehicle, 120 percent 
of that price)''.

                          [operating expenses

    [Sec. 506. Section 667(a) of the Foreign Assistance Act of 
1961 is amended--
            [(1) in the text preceding paragraph (1) by 
        striking out ``1978'' and inserting in lieu thereof 
        ``1979''; and
            [(2) in paragraph (12) by striking out 
        ``$220,200,000' and inserting in lieu thereof 
        ``$261,000,000''.

                  [TITLE VI--MISCELLANEOUS PROVISIONS

                      [reduction of authorization

    [Sec. 601. The total funds authorized to be appropriated in 
this Act (excluding funds authorized to be appropriated to 
carry out section 214 of the Foreign Assistance Act of 1961) 
shall be reduced by 5 percent.

       [prohibition on assistance to vietnam, cambodia, and cuba

    [Sec. 602. Notwithstanding any other provision of law or of 
this Act, funds authorized to be appropriated in this Act shall 
not be used for any form of aid, either by monetary payment or 
by the sale or transfer of any goods of any nature, to the 
Socialist Republic of Vietnam, Cambodia, or Cuba.

             [reports to congress on debt relief agreements

    [Sec. 603(a)(1) The Secretary of State shall keep the 
Committee on Foreign Relations of the Senate, the Committee on 
International Relations of the House of Representatives, and 
the Comittee on Appropriations of each House of the Congress 
fully and currently informed of any negotiations with any 
foreign government with respect to any cancellation, 
renegotiations, rescheduling, compromise, or other form of debt 
relief (including any modification of the terms, conditions, or 
manner of repayment), with regard to any debt owed to the 
United States by such foreign government.]
          * * * * * * *
    [(b) Section 4 of the Foreign Disaster Assistance Act of 
1974 is repealed.

                         [miscellaneous repeals

    [Sec. 604. Sections 302(d), 302(e), 302(f), 302(g), 302(h), 
304, 494A, 495A, 618, 619, 637(a), 649, 651, 655, 656, 658, and 
665, and chapters 6 and 7 of part I, of the Foreign Assistance 
Act of 1961 are repealed.

                             effective date

    [Sec. 605. The amendments made by this Act shall take 
effect on October 1, 1978.]
                              ----------                              


             INTERNATIONAL SECURITY ASSISTANCE ACT OF 1978

                              [short title

    [Section 1. This Act may be cited as the ``International 
Security Assistance Act of 1978''.

                           [contingency fund

    [Sec. 2. Section 451(a) of the Foreign Assistance Act of 
1961 is amended by striking out ``fiscal year 1978 not to 
exceed $5,000,000'' and inserting in lieu thereof ``fiscal year 
1979 not to exceed $5,000,000''.

     [involvement of united states personnel in narcotics control 
                     enforcement activities abroad

    [Sec. 3. Section 481(c)(1) of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
sentences: ``No such officer or employee may interrogate or be 
present during the interrogation of any United States person 
arrested in any foreign country with respect to narcotics 
control efforts without the written consent of such person. The 
provisions of this paragraph shall not apply to the activities 
of the United States Armed Forces in carrying out their 
responsibilities under applicable Status of Forces 
arrangements.''.

               [use of herbicides to eradicate marihuana

    [Sec. 4. Section 481 of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the following new 
subsection:
    [``(d)(1) Assistance authorized by this chapter may not be 
made available or used for any program involving the spraying 
of a herbicide to eradicate marihuana plants if the use of that 
herbicide is likely to cause serious harm to the health of 
persons who may use or consume the sprayed marihuana. This 
prohibition shall not apply if the herbicide is used in 
conjunction with another substance that will clearly and 
readily warn potential users and consumers of the sprayed 
marihuana that a herbicide has been used on it.
    [``(2) The Secretary of State shall inform the Secretary of 
Health, Education, and Welfare of the use or intended use by 
any country or international organization of any herbicide to 
eradicate marihuana in a program receiving assistance under 
this chapter. The Secretary of Health, Education, and Welfare, 
on the basis of scientific information and testing and after 
receiving comments from the Secretary of Agriculture and the 
Administrator of the Environmental Protection Agency, shall 
promptly advise the Secretary of State if the use of that 
herbicide is likely to cause serious harm to the health of 
persons who may use or consume marihuana sprayed with that 
herbicide. If the Secretary of State is so advised with respect 
to any herbicide, the prohibition contained in paragraph (1) 
shall apply with respect to the use of that herbicide.
    [``(3) The Secretary of State shall submit a comprehensive 
report to the Congress not later than January 1 of each year 
explicitly detailing all efforts he has taken to ensure 
compliance with the requirements of this subsection and to 
prevent the spraying of marihuana with herbicides that are 
likely to cause serious harm to human health.''.

                    [international narcotics control

    [Sec. 5. (a) Section 482 of the Foreign Assistance Act of 
1961 is amended by striking out ``$39,000,000 for the fiscal 
year 1978'' and inserting in lieu thereof ``$40,000,000 for the 
fiscal year 1979''.
    [(b) Such section is further amended--
            [(1) by inserting ``(a)'' immediately before ``To 
        carry out''; and
            [(2) by adding at the end of the section the 
        following new subsection:
    [``(b) Funds authorized to be appropriated by this section 
shall not be made available for the procurement of weapons or 
ammunition under this chapter.''.

                             [human rights

    [Sec. 6. (a) Paragraph (1) of section 502B(a) of the 
Foreign Assistance Act of 1961 is amended to read as follows:
    [``(1) The United States shall, in accordance with its 
international obligations as set forth in the Charter of the 
United Nations and in keeping with the constitutional heritage 
and traditions of the United States, promote and encourage 
increased respect for human rights and fundamental freedoms 
throughout the world without distinction as to race, sex, 
language, or religion. Accordingly, a principal goal of the 
foreign policy of the United States shall be to promote the 
increased observance of internationally recognized human rights 
by all countries.''.
    [(b) Paragraph (2) of such section is amended by striking 
out ``It is further the policy of the United States that, 
except'' and inserting in lieu thereof ``Except''.
    [(c) Paragraph (3) of such section is amended by striking 
out ``the foregoing policy'' and inserting in lieu thereof 
``paragraphs (1) and (2),''.
    [(d)(1) Paragraph (2) of such section is amended by adding 
at the end thereof the following new sentence: ``Security 
assistance may not be provided to the police, domestic 
intelligence, or similar law enforcement forces of a country, 
and licenses may not be issued under the Export Administration 
Act of 1969 for the export of crime control and detection 
instruments and equipment to a country, the government of which 
engages in a consistent pattern of gross violations of 
internationally recognized human rights unless the President 
certifies in writing to the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate that extraordinary circumstances exist 
warranting provision of such assistance and issuance of such 
licenses.''.
    [(2) Section 4 of the Export Administration Act of 1969 is 
amended by adding at the end thereof the following new 
subsection:
    [``(m)(1) Crime control and detection instruments and 
equipment shall be approved for export by the Secretary of 
Commerce only pursuant to a validated export license.
    [``(2) The provisions of this subsection shall not apply 
with respect to exports to countries which are members of the 
North Atlantic Treaty Organization or to Japan, Australia, or 
New Zealand.''.
    [(e) Section 502B(a)(2) of the Foreign Assistance Act of 
1961, as amended by section (d)(1) of this section, is further 
amended by adding at the end thereof the following new 
sentence: ``Assistance may not be provided under chapter 5 of 
this part to a country the government of which engages in a 
consistent pattern of gross violations of internationally 
recognized human rights unless the President certifies in 
writing to the Speaker of the House of Representatives and the 
chairman of the Committee on Foreign Relations of the Senate 
that extraordinary circumstances exist warranting provision of 
such assistance.''.

                          [military assistance

    [Sec. 7. (a) Subsection (a)(1) of section 504 of the 
Foreign Assistance Act of 1961 is amended to read as follows:
    [``(a)(1) There is authorized to be appropriated to the 
President to carry out the purposes of this chapter not to 
exceed $133,500,000 for the fiscal year 1979. Not more than the 
following amounts of funds available to carry out this chapter 
may be allocated and made available for assistance to each of 
the following countries for the fiscal year 1979:

[``Portugal.............................................     $27,900,000
[``Spain................................................      41,000,000
[``Jordan...............................................      45,000,000
[``Philippines..........................................      17,100,000
[``Greece...............................................      35,000,000

The amount specified in this paragraph for military assistance 
to any such country for the fiscal year 1979 may be increased 
by not more than 10 percent of such amount if the President 
deems such increase necessary for the purposes of this 
chapter.''.
    [(b) Section 516(a) of such Act is amended by inserting 
immediately before the period at the end thereof ``, and until 
September 30, 1981, to the extent necessary to carry out 
obligations incurred under this chapter during the fiscal year 
1978 with respect to Indonesia and Thailand''.

         [stockpiling of defense articles for foreign countries

    [Sec. 8. Section 514(b)(2) of the Foreign Assistance Act of 
1961 is amended by striking out ``$270,000,000 for the fiscal 
year 1978'' and inserting in lieu thereof ``$90,000,000 for the 
fiscal year 1979''.

    [international military assistance and sales program management

    [Sec. 9. (a) Section 515 of the Foreign Assistance Act of 
1961 is amended in the first sentence of subsection (b)(1)--
            [(1) by striking out ``fiscal year 1978'' and 
        inserting in lieu thereof ``fiscal year 1979''; and
            [(2) by striking out ``Brazil'' and inserting in 
        lieu thereof ``Turkey, Indonesia, Thailand''.
    [(b) Such section is amended in subsection (d) by striking 
out ``may not exceed 865 for the fiscal year 1978'' and 
inserting in lieu thereof ``, including any such members 
serving on a reimbursable basis pursuant to subsection (b)(3), 
may not exceed 790 for the fiscal year 1979''.
    [(c) Such section is amended in subsection (f) by striking 
out ``1976'' in the last sentence and inserting in lieu thereof 
``1977, except that the President may assign an aggregate total 
of not to exceed eight additional defense attaches to such 
countries in order to perform overseas management functions 
under this subsection''.
    [(d) Such section is amended in subsection (g) by inserting 
``for fixed'' immediately before ``periods of time'' in the 
second sentence.
    [(e) Such section is amended by adding at the end thereof 
the following new subsection:
    [``(h) The President shall continue to instruct United 
States diplomatic and military personnel in United States 
missions abroad that they should not encourage, promote, or 
influence the purchase by any foreign country of United States-
made military equipment, unless they are specifically 
instructed to do so by an appropriate official of the executive 
branch.''.

                         [economic support fund

    [Sec. 10. (a) Chapter 4 of part II of the Foreign 
Assistance Act of 1961 is amended to read as follows:

                  [``CHAPTER 4--ECONOMIC SUPPORT FUND

    [``Sec. 531. Authority.--(a)(1) The Congress recognizes 
that under special economic, political, or security conditions 
the national interests of the United States may require 
economic support for countries or in amounts which could not be 
justified solely under chapter 1 of part I. In such cases, the 
President is authorized to furnish assistance to countries and 
organizations, on such terms and conditions as he may 
determine, in order to promote economic or political stability. 
In planning assistance intended for economic development under 
this chapter, the President shall take into account, to the 
maximum extent feasible, the policy direction of section 102.
    [``(2) The Secretary of State shall be responsible for 
policy decisions and justifications for economic support 
programs under this chapter, including determinations of 
whether there will be an economic support program for a country 
and the amount of the program for each country. The Secretary 
shall exercise this responsibility in cooperation with the 
Administrator of the agency primarily responsible for 
administering part I.
    [``(b)(1) There are authorized to be appropriated to the 
President to carry out the purposes of this chapter for the 
fiscal year 1979, $1,902,000,000.
    [``(2) Amounts appropriated to carry out this chapter are 
authorized to remain available until expended.
    [``(c) Amounts appropriated to carry out this chapter shall 
be available for economic programs only and may not be used for 
military or paramilitary purposes.
    [``Sec. 532. Middle East Program.--(a) The Congress 
recognizes that a peaceful and lasting resolution of the 
divisive issues that have contributed to tension and conflict 
between countries in the Middle East is essential to the 
security of the United States and the cause of world peace. The 
Congress declares and finds that the United States can and 
should play a constructive role in securing a just and durable 
peace in the Middle East by facilitating increased 
understanding between the Arab countries and Israel and by 
assisting the countries in the region in their efforts to 
achieve economic progress and political stability, which are 
the essential foundations for peace. It is the sense of the 
Congress that United States assistance programs in the Middle 
East should be designed to promote mutual respect and security 
among the countries in the region and to foster a climate 
conducive to increased economic development, thereby 
contributing to a community of free, secure, and prospering 
countries in the Middle East.
    [``(b)(1) Of the amount authorized to be appropriated to 
carry out this chapter for the fiscal year 1979, not less than 
$785,000,000 shall be available only for Israel, not less than 
$750,000,000 shall be available only for Egypt, and not less 
than $93,000,000 shall be available only for Jordan.
    [``(2) The total amount of funds allocated for Israel under 
this chapter for the fiscal year 1979 may be made available as 
a cash transfer. In exercising the authority of this paragraph, 
the President shall ensure that the level of cash transfers 
made to Israel does not cause an adverse impact on the total 
amount of nonmilitary exports from the United States to Israel.
    [``(3) Not less than two-thirds of the assistance furnished 
to Israel, and not less than two-thirds of the assistance 
furnished to Egypt, under this chapter for the fiscal year 1979 
shall be provided on a grant basis.
    [``(4) The President is requested to provide that at least 
$65,000,000 of the funds allocated for Egypt under this chapter 
for the fiscal year 1979 shall be available for the development 
and encouragement of private enterprise in Egypt. Programs 
financed under this paragraph shall be developed in close 
consultation with the Overseas Private Investment Corporation. 
It is the intent of the Congress that the funds made available 
under this paragraph should be used, to the maximum extent 
feasible, to encourage other donors, especially the Arab 
countries that are members of the Organization of Petroleum 
Exporting Countries, to participate in private enterprise 
development in Egypt. Funds made available under this paragraph 
may be used, among other things, for lending to Egyptian 
private business enterprise, to provide necessary surveys, 
services, and programs to encourage and support private 
enterprise development, and to contract for personnel to assist 
such programs.
    [``(5) It is the sense of the Congress that programs which 
stress regional development or regional scientific and 
technical cooperation between Israel and its Arab neighbors can 
contribute in an important way to the mutual understanding that 
must serve as the basis for permanent peace in the Middle East. 
Of the amount authorized to be appropriate to carry out this 
chapter for the fiscal year 1979, not less than $5,000,000 
shall be available only to fund regional programs which stress 
development or scientific and technical cooperation between 
Israel and its Arab neighbors or programs which would be used 
for Arab-Israeli cooperation once normalization of relations 
between Israel and the Arab nations occurs.
    [``(6)(A) Funds appropriated to carry out this chapter for 
the fiscal year 1979 may not be expended for construction of 
the proposed potash production facility in Jordan until the 
President has determined, and has reported his determination to 
the Congress, that Jordan has obtained firm commitments from 
other sources for the financing, in addition to the proposed 
United States contribution, which will be required for that 
project.
    [``(B) Funds appropriated to carry out this chapter for the 
fiscal year 1979 may not be expended for construction of the 
proposed Maqarin Dam and Jordan Valley Irrigation System until 
the President has determined, and has reported his 
determination to the Congress, that Jordan has obtained firm 
commitments from other sources for the financing, in addition 
to the proposed United States contribution, which will required 
for that project.
    [``Sec. 533. Southern Africa Program.--(a) Of the amount 
authorized to be appropriated to carry out this chapter for the 
fiscal year 1979, $60,000,000 shall be available only for the 
countries of southern Africa to address the problems caused by 
the economic dislocation resulting from the conflict in that 
region and for education and job training assistance. Such 
funds may be used to provide humanitarian assistance to African 
refugees and persons displaced by war and internal strife in 
southern Africa, to improve transportation links interrupted or 
jeopardized by regional political conflicts, and to provide 
economic support to countries in the region.
    [``(b) No assistance may be furnished under this section to 
Mozambique, Angola, Tanzania, or Zambia, except that the 
President may waive this prohibition with respect to any such 
country if he determines, and so reports to the Congress, that 
furnishing such assistance to such country would further the 
foreign policy interests of the United States.
    [``Sec. 534. Turkey and Cyprus Programs.--(a) Of the amount 
authorized to be appropriated to carry out this chapter for the 
fiscal year 1979, not less than $15,000,000 shall be available 
only for refugee relief and reconstruction of Cyprus.
    [``(b) Of the amount authorized to be appropriated to carry 
out this chapter for the fiscal year 1979, not less than 
$50,000,000 shall be available only for Turkey.''.
    [(b)(1) Section 502B(d)(2)(A) of the Foreign Assistance Act 
of 1961 is amended by striking out ``security supporting 
assistance'' and inserting in lieu thereof ``economic support 
fund''.
    [(2) The second sentence of section 610(b) of such Act is 
repealed.
    [(3) Section 653(b) of such Act is amended by striking out 
``security supporting assistance'' each of the three places it 
appears and inserting in lieu thereof ``assistance under 
chapter 4 of part II of this Act''.
    [(4) Section 669(a) and 670(a) of such Act are each amended 
by inserting ``(including assistance under chapter 4 of part 
II)'' immediately after ``economic assistance'' and by striking 
out ``or security supporting''.
    [(5) Section 406(a) of the International Security 
Assistance and Arms Export Control Act of 1976 is amended by 
striking out ``or security supporting assistance'' and 
inserting in lieu thereof ``assistance, no assistance under 
chapter 4 of part II,''.
    [(6) After September 30, 1978, any reference in any law to 
security support assistance shall be deemed to be a reference 
to assistance under chapter 4 of part II of the Foreign 
Assistance Act of 1961.

             [international military education and training

    [Sec. 11. (a) Section 542 of the Foreign Assistant Act of 
1961 is amended by striking out ``$31,000,000 for the fiscal 
year 1978'' and inserting in lieu thereof ``$31,800,000 for the 
fiscal year 1979''.
    [(b) Section 543 of such Act is amended)
            [(1) by striking out ``and'' at the end of 
        paragraph (1);
            [(2) by striking out the period at the end of 
        paragraph (2) and inserting in lieu thereof a semicolon 
        and ``and''; and
            [(3) by adding at the end thereof the following new 
        paragraph:
            [``(3) to increase the awareness of nationals of 
        foreign countries participating in such activities of 
        basic issues involving internationally recognized human 
        rights.''.

                [assistance for peacekeeping operations

    [Sec. 12. (a) Part II of the Foreign Assistant Act of 1961 
is amended by adding at the end thereof the following new 
chapter:

                 [``CHAPTER 6--PEACEKEEPING OPERATIONS

    [``Sec. 551. General Authority.--The President is 
authorized to furnish assistance to friendly countries and 
international organizations, on such terms and conditions as he 
may determine, for peacekeeping operations and other programs 
carried out in furtherance of the national security interests 
of the United States.
    [``Sec. 552. Authorization of Appropriations.--(a) There is 
authorized to be appropriated to the President to carry out the 
purposes of this chapter, in addition to amounts otherwise 
available for such purposes, $30,900,000 for the fiscal year 
1979.
    [``(b) Amounts appropriated under this section are 
authorized to remain available until expended.
    [``Sec. 553. Middle East Special Requirements Fund.--(a) Of 
the amount authorized to be appropriated to carry out this 
chapter for the fiscal year 1979, $3,500,000 may be used only 
for special requirements related to international peacekeeping 
in the Middle East.
    [``(b) The President may obligate or expend funds under 
this section for a foreign country or international 
organization only if--
            [``(1) he has transmitted to the Speaker of the 
        House of Representatives and to the chairman of the 
        Committee on Foreign Relations and the chairman of the 
        Committee on Appropriations of the Senate a report 
        setting forth--
                    [``(A) the name of such country or 
                organization;
                    [``(B) the amount of such funds to be made 
                available to such country or organization;
                    [``(C) the purpose for which such funds are 
                to be made available to such country or 
                organization; and
                    [``(D) the reasons why it is in the 
                national interest to use funds under this 
                section for such purpose rather than--
                            [``(i) using other available funds; 
                        or
                            [``(ii) if no other funds are 
                        available for such purpose, awaiting 
                        the enactment of legislation making 
                        funds specifically available for such 
                        purpose;
        [``(2) a period of 30 calendar days has elapsed since 
        the Congress received such report; and
        [``(3) the Congress did not adopt, during such 30-day 
        period, a concurrent resolution stating in substance 
        that the Congress does not approve the proposed use of 
        funds described in such report.
    [``Sec. 554. Administrative Authorities.--Except where 
expressly provided to the contrary, any reference in any law to 
part I of this Act shall be deemed to include reference to this 
chapter and any reference in any law to part II of this Act 
shall be deemed to exclude reference to this chapter.''.
    [(b) Section 502B(d)(2)(A) of such Act is amended--
            [(1) by inserting ``or chapter 6 (peacekeeping 
        operations)'' immediately after ``and training)''; and
            [(2) by striking out ``or part VI (assistance to 
        the Middle East) of this Act''.
    [(c)(1) Section 620B of such Act is amended in paragraph 
(1) by striking out ``or 5'' and inserting in lieu thereof ``5, 
or 6''.
    [(2) Section 653(b) of such Act is amended--
            [(A) by striking out ``part V'' both places it 
        appears and inserting in lieu thereof ``chapter 6 of 
        part II''; and
            [(B) by inserting immediately before the comma in 
        paragraph (2) ``or assistance under chapter 6 of part 
        II''.
    [(3) Section 669(a) and 670(a) of such Act are each amended 
by inserting ``providing assistance under chapter 6 of part 
II,'' immediately after ``training,''.
    [(4) Part VI of such Act is repealed.
    [(5) Section 406(a)(1) of the International Security 
Assistance and Arms Export Control Act of 1976 is amended by 
inserting ``no assistance under chapter 6 of part II,'' 
immediately before ``and no military'' in the first sentence.

       [UNITED STATES POLICY REGARDING THE EASTERN MEDITERRANEAN

    [Sec. 13. (a) Section 620(x) of the Foreign Assistance Act 
of 1961 shall be of no further force and effect upon the 
President's determination and certification to the Congress 
that the resumption of full military cooperation with Turkey is 
in the national interest of the United States and in the 
interest of the North Atlantic Treaty Organization and that the 
Government of Turkey is acting in good faith to achieve a just 
and peaceful settlement of the Cyprus problem, the early 
peaceable return of refugees to their homes and properties, and 
continued removal of Turkish military troops from Cyprus in the 
context of a solution to the Cyprus problem, and the early 
serious resumption of inter-communal talks aimed at a just, 
negotiated settlement.
    [(b) The Foreign Assistance Act of 1961 is amended by 
inserting immediately after section 620B the following new 
section:
    [``Sec. 620C. United States Policy Regarding the Eastern 
Mediterranean.--(a) The Congress declares that the achievement 
of a just and lasting Cyprus settlement is and will remain a 
central objective of United States foreign policy. The Congress 
further declares that any action of the United States with 
respect to section 620(x) of this Act shall not signify a 
lessening of the United States commitment to a just solution to 
the conflict on Cyprus but is authorized in the expectation 
that this action will be conducive to achievement of a Cyprus 
solution and a general improvement in relations among Greece, 
Turkey, and Cyprus and between those countries and the United 
States. The Congress finds that--
            [``(1) a just settlement on Cyprus must involve the 
        establishment of a free and independent government on 
        Cyprus and must guarantee that the human rights of all 
        of the people of Cyprus are fully protected;
            [``(2) a just settlement on Cyprus must include the 
        withdrawal of Turkish military forces from Cyprus;
            [``(3) the guidelines for inter-communal talks 
        agreed to in Nicosia in February 1977 and the United 
        Nations resolutions regarding Cyprus provide a sound 
        basis for negotiation of a just settlement of Cyprus;
            [``(4) serious negotiations, under United Nations 
        auspices, will be necessary to achieve agreement on, 
        and implementation of, constitutional and territorial 
        terms within such guidelines; and
            [``(5) the recent proposals by both Cypriot 
        communities regarding the return of refugees to the 
        city of New Famagusta (Varosha) constitute a positive 
        step and the United States should actively support the 
        efforts of the Secretary General of the United Nations 
        with respect to this issue.
    [``(b) United States policy regarding Cyprus, Greece, and 
Turkey shall be directed toward the restoration of a stable and 
peaceful atmosphere in the Eastern Mediterranean region and 
shall therefore be governed by the following principles:
            [``(1) The United States shall actively support the 
        resolution of differences through negotiations and 
        internationally established peaceful procedures, shall 
        encourage all parties to avoid provocative actions, and 
        shall strongly oppose any attempt to resolve disputes 
        through force or threat of force.
            [``(2) The United States will accord full support 
        and high priority to efforts, particularly those of the 
        United Nations, to bring about a prompt, peaceful 
        settlement on Cyprus.
            [``(3) All defense articles furnished by the United 
        States to countries in the Eastern Mediterranean region 
        will be used only in accordance with the requirements 
        of this Act, the Arms Export Control Act, and the 
        agreements under which those defense articles were 
        furnished.
            [``(4) The United States will furnish security 
        assistance for Greece and Turkey only when furnishing 
        that assistance is intended solely for defensive 
        purposes, including when necessary to enable the 
        recipient country to fulfill its responsibilities as a 
        member of the North Atlantic Treaty Organization, and 
        shall be designed to ensure that the present balance of 
        military strength among countries of the region, 
        including between Greece and Turkey, is preserved. 
        Nothing in this paragraph shall be construed to 
        prohibit the transfer of defense articles to Greece or 
        Turkey for legitimate self defense or to enable Greece 
        or Turkey to fulfill their North Atlantic Treaty 
        Organization obligations.
            [``(5) The United States shall use its influence to 
        ensure the continuation of the ceasefire on Cyprus 
        until an equitable negotiated settlement is reached.
            [``(6) The United States shall use its influence to 
        achieve the withdrawal of Turkish military forces from 
        Cyprus in the context of a solution to the Cyprus 
        problem.
    [``(c) Because progress toward a Cyprus settlement is a 
high priority of United States policy in the Eastern 
Mediterranean, the President and the Congress shall continually 
review that progress and shall determine United States policy 
in the region accordingly. To facilitate such a review the 
President shall, within 60 days after the date of enactment of 
this section and at the end of each succeeding 60-day period, 
transmit to the Speaker of the House of Representatives and the 
chairman of the Committee on Foreign Relations of the Senate a 
report on progress made toward the conclusion of a negotiated 
solution of the Cyprus problem. Such transmissions shall 
include any relevant reports prepared by the Secretary General 
of the United Nations for the Security Council.
    [``(d) In order to ensure that United States assistance is 
furnished consistent with the policies established in this 
section, the President shall, whenever requesting any funds for 
security assistance under this Act or the Arms Export Control 
Act for Greece and Turkey, transmit to the Speaker of the House 
of Representatives and the chairman of the Committee on Foreign 
Relations of the Senate his certification, with a full 
explanation thereof, that the furnishing of such assistance 
will be consistent with the principles set forth in subsection 
(b). The President shall also submit such a certification with 
any notification to the Congress, pursuant to section 35(b) of 
the Arms Export Control Act, of a proposed sale of defense 
articles or services to Greece or Turkey.''.

                   [Annual military assistance report

    [Sec. 14. Chapter 3 of part III of the Foreign Assistant 
Act of 1961, as amended by the International Development and 
Food Assistance Act of 1978, is amended by inserting 
immediately after section 654 the following new section:
    [``Sec. 657. Annual Report on Military Assistance and 
Military Exports.--Not later than February 1 of each year, the 
President shall transmit to the Congress an annual report for 
the fiscal year ending the previous September 30, showing the 
aggregate dollar value and quantity of defense articles and 
defense services, and of military education and training, 
furnished by the United States to each foreign country and 
international organization, by category, specifying whether 
they were furnished by grant under chapter 2 or chapter 5 of 
part II of this Act, by sale under chapter 2 of the Arms Export 
Control Act, by commercial sale licensed under section 38 of 
that Act, or by other authority.''.

                         [arms transfer policy

    [Sec. 15. (a) Section 1 of the Arms Export Control Act is 
amended by adding at the end thereof the following new 
paragraph:
    [``It is the sense of the Congress that the President 
maintain adherence to a policy of restraint in conventional 
arms transfers and that, in implementing this policy worldwide, 
a balanced approach should be taken and full regard given to 
the security interests of the United States in all regions of 
the world and that particular attention should be paid to 
controlling the flow of conventional arms to the nations of the 
developing world. To this end, the President is encouraged to 
continue discussions with other arms suppliers in order to 
restrain the flow of conventional arms to less developed 
countries.''.

                           [sales from stock

    [Sec. 16. Section 21(e)(1) of the Arms Export Control Act 
is amended--
            [(1) by striking out ``and'' at the end of 
        subparagraph (b);
            [(2) by striking out the period at the end of 
        subparagraph (C) and inserting in lieu thereof a 
        semicolon and ``and''; and
            [(c) by adding at the end thereof the following new 
        subparagraph:
            [``(D) the recovery of ordinary inventory losses 
        associated with the sale from stock of defense articles 
        that are being stored at the expense of the purchaser 
        of such articles.''.

                       [renegotiation act of 1951

    [Sec. 17. Section 22 of the Arms Export Control Act is 
amended by adding at the end thereof the following new 
subsection:
    [``(c) The provisions of the Renegotiation Act of 1951 do 
not apply to contracts for the procurement of defense articles 
and defense services heretofore or hereafter entered into under 
this section or predecessor provisions of law.''.

                      [annual arms sales proposal

    [Sec. 18. (a) Section 25 of the Arms Export Control Act is 
amended by adding at the end thereof the following new 
subsection:
    [``(d) On or before November 15 of each year, the President 
shall transmit to the Speaker of the House of Representatives 
and the chairman of the Committee on Foreign Relations of the 
Senate the Arms Sales Proposal covering all sales under this 
Act (other than sales to members of the North Atlantic Treaty 
Organization, Japan, Australia, and New Zealand) of major 
defense equipment for $7,000,000 or more, or of any other 
defense articles or defense services for $25,000,000 or more, 
which are considered eligible for approval during the fiscal 
year beginning on October 1 of such year.''.
    [(b) Subsection (c) of such section is amended by striking 
out ``this section'' and inserting in lieu thereof ``subsection 
(a) or (b)''.

                      [defense requirement surveys

    [Sec. 19. Chapter 2 of the Arms Export Control Act is 
amended by adding at the end thereof the following new section:
    [``Sec. 26. Defense Requirement Surveys.--(a) The Congress 
finds that defense requirement surveys prepared by the United 
States for foreign countries have had a significant impact on 
subsequent military procurement decisions of those countries. 
It is the policy of the United States that the results of 
defense requirement surveys conducted by the United States 
clearly do not represent a commitment by the United States to 
provide any military equipment to any foreign country. Further, 
recommendations in such surveys should be consistent with the 
arms export control policy provided for in this Act.
    [``(b) As part of the quarterly report required by section 
36(a) of this Act, the President shall include a list of all 
defense requirement surveys authorized during the preceding 
calendar quarter, specifying the country with respect to which 
the survey was or will be conducted, the purpose of the survey, 
and the number of United States Government personnel who 
participated or will participate in the survey.
    [``(c) Upon a request of the chairman of the Committee on 
International Relations of the House of Representatives or the 
chairman of the Committee on Foreign Relations of the Senate, 
the President shall grant that committee access to defense 
requirement surveys conducted by United States Government 
personnel.''.

      [foreign military sales authorization and aggregate ceiling

    [Sec. 20. (a) Section 31(a) of the Arms Export Control Act 
is amended by striking out ``$677,000,000 for the fiscal year 
1978'' and inserting in lieu thereof ``$682,000,000 for the 
fiscal year 1978 and $674,300,000 for the fiscal year 1979''.
    [(b) Section 31(b) of such Act is amended by striking out 
``$2,102,350,000 for the fiscal year 1978, of which'' and 
inserting in lieu thereof ``$2,152,350,000 for the fiscal year 
1978 and $2,085,500,000 for the fiscal year 1979, of which 
amount for each such year''.
    [(c) Section 31(c) of such Act is amended by striking out 
``fiscal year 1978'' and inserting in lieu thereof ``fiscal 
year 1979''.
    [(d) Section 31(d) of such Act is amended by striking out 
``$100,000,000'' and inserting in lieu thereof 
``$150,000,000''.

                        [full disclosure reports

    [Sec. 21. Section 36(b)(1) of the Arms Export Control Act 
is amended--
            [(1) by amending subparagraph (D) to read as 
        follows:
            [``(D) an evaluation, prepared by the Director of 
        the Arms Control and Disarmament Agency in consultation 
        with the Secretary of State and the Secretary of 
        Defense, of the manner, if any, in which the proposed 
        sale would--
                    [``(i) contribute to an arms race;
                    [``(ii) increase the possibility of an 
                outbreak or escalation of conflict;
                    [``(iii) prejudice the negotiation of any 
                arms controls; or
                    [``(iv) adversely affect the arms control 
                policy of the United States;'';
            [(2) by striking out ``and'' at the end of 
        subparagraph (L);
            [(3) by striking out the period at the end of 
        subparagraph (M) and inserting in lieu thereof a 
        semicolon; and
            [(4) by inserting immediately after subparagraph 
        (M) the following new subparagraphs:
            [``(N) the projected delivery dates of the dense 
        articles to be offered;
            [``(O) a detailed description of weapons and levels 
        of munitions that may be required as support for the 
        proposed sale; and
            [``(P) an analysis of the relationship of the 
        proposed sale to projected procurements of the same 
        item.''.

                        [use of foreign currency

    [Sec. 22. (a) Section 502(b) of the Mutual Security Act of 
1954 is amended to read as follows:
    [``(b)(1)(A) Notwithstanding section 1415 of the 
Supplemental Appropriation Act, 1953, or any other provisions 
of law--
            [``(i) local currencies owned by the United States 
        which are in excess of the amounts reserved under 
        section 612(a) of the Foreign Assistance Act of 1961 
        and of the requirements of the United States Government 
        in payment of its obligations outside of the United 
        States, as such requirements may be determined from 
        time to time by the President; and
            [``(ii) any other local currencies owned by the 
        United States in amounts not to exceed the equivalent 
        of $75 per day per person or the maximum per diem 
        allowance established under the authority of subchapter 
        I of chapter 57 of title 5 of the United States Code 
        for employees of the United States Government while 
        traveling in a foreign country, whichever is greater, 
        exclusive of the actual cost of transportation;
shall be made available to Members and employees of the 
Congress for their local currency expenses when authorized as 
provided in subparagraph (B).
    [``(B) The authorization required for purposes of 
subparagraph (A) may be provided--
            [``(i) by the Speaker of the House of 
        Representatives in the case of a Member or employee of 
        the House;
            [``(ii) by the chairman of a standing or select 
        committee of the House of Representatives in the case 
        of a member or employee of that committee;
            [``(iii) by the President of the Senate, the 
        President pro tempore of the Senate, the Majority 
        Leader of the Senate, or the Minority Leader of the 
        Senate, in the case of a Member or employee of the 
        Senate;
            [``(iv) by the chairman of a standing, select, or 
        special committee of the Senate in the case of a member 
        or employee of that committee or of an employee of a 
        member of that committee; and
            [``(v) by the chairman of a joint committee of the 
        Congress in the case of a member or employee of that 
        committee.
    [``(C) Whenever local currencies owned by the United States 
are not otherwise available for purposes of this subsection, 
the Secretary of the Treasury shall purchase such local 
currencies as may be necessary for such purposes, using any 
funds in the Treasury not otherwise appropriated.
    [``(2) On a quarterly basis, the chairman of each committee 
of the House of Representatives or the Senate and of each joint 
committee of the Congress (A) shall prepare a consolidated 
report (i) which itemizes the amounts and dollar equivalent 
values of each foreign currency expended and the amounts of 
dollar expenditures from appropriated funds in connection with 
travel outside the United States, stating the purposes of the 
expenditures including per diem (lodging and meals), 
transportation, and other purposes, and (ii) which shows the 
total itemized expenditures, by such committee and by each 
member or employee of such committee (including in the case of 
a committee of the Senate, each employee of a member of the 
committee who received an authorization under paragraph (1) 
from the chairman of the committee); and (B) shall forward such 
consolidated report to the Clerk of the House of 
Representatives (if the committee is a committee of the House 
of Representatives or a joint committee whose funds are 
disbursed by the Clerk of the House) or to the Secretary of the 
Senate (if the committee is a committee of the Senate or a 
joint committee whose funds are disbursed by the Secretary of 
the Senate). Each such consolidated report shall be open to 
public inspection and shall be published in the Congressional 
Record within ten legislative days after the report is 
forwarded pursuant to this paragraph. In the case of the Select 
Committee on Intelligence of the Senate and the Permanent 
Select Committee on Intelligence of the House of 
Representatives, such consolidated report may, in the 
discretion of the chairman of the committee, omit such 
information as would identity the foreign countries in which 
members and employees of that committee traveled.
    [``(3)(A) Each Member or employee who receives an 
authorization under paragraph (1) from the Speaker of the House 
of Representatives, the President of the Senate, the President 
pro tempore of the Senate, the Majority Leader of the Senate, 
or the Minority Leader of the Senate, shall within thirty days 
after the completion of the travel involved, submit a report 
setting forth the information specified in paragraph (2), to 
the extent applicable, to the Clerk of the House of 
Representatives (in the case of a Member of the House or an 
employee whose salary is disbursed by the Clerk of the House) 
or the Secretary of the Senate (in the case of a Member of the 
Senate or an employee whose salary is disbursed by the 
Secretary of the Senate). In the case of an authorization for a 
group of Members or employees, such reports shall be submitted 
for all Members of the group by its chairman, or if there is no 
designated chairman, by the ranking Member or if the group does 
not include a Member, by the senior employee in the group. Each 
report submitted pursuant to this subparagraph shall be open to 
public inspection.
    [``(B) On a quarterly basis, the Clerk of the House of 
Representatives and the Secretary of the Senate shall each 
prepare a consolidation of the reports received by them under 
this paragraph with respect to expenditures during the 
preceding quarter by each Member and employee or by each group 
in the case of expenditures made on behalf of a group which are 
not allocable to individual members of the group. Each such 
consolidation shall be open to public inspection and shall be 
published in the Congressional Record within ten legislative 
days after its completion.''.
    [(b) Notwithstanding section 30 of this Act, the amendment 
made by subsection (a) of this section shall take effect on the 
date of enactment of this Act.

[special security assistance program for the modernization of the armed 
                    forces of the republic of Korea

    [Sec. 23. (a)(1) The President is authorized until December 
31, 1982--
            [(A) to transfer, without reimbursement, to the 
        Republic of Korea, only in conjunction with the 
        withdrawal of the 2d Infantry Division and support 
        forces from Korea, such United States Government-owned 
        defense articles as he may determine which are located 
        in Korea in the custody of units of the United States 
        Army scheduled to depart from Korea; and
            [(B) to furnish to the Republic of Korea, without 
        reimbursement, defense services (including technical 
        and operational training) in Korea directly related to 
        the United States Government-owned defense articles 
        transferred to the Republic of Korea under this 
        subsection.
    [(2) Any transfer under the authority of this section shall 
be made in accordance with all the terms and conditions of the 
Foreign Assistance Act of 1961 applicable to the furnishing of 
defense articles and defense services under chapter 2 of part 
II of that Act, except that no funds heretofore or hereafter 
appropriated under that Act shall be available to reimburse any 
agency of the United States Government for any such transfer or 
related services.
    [(b) In order that transfers of defense articles under 
subsection (a) will not cause significant adverse impact on the 
readiness of the Armed Forces of the United States, the 
President is authorized, in lieu of such transfers, to transfer 
additional defense articles from the stocks of the Department 
of Defense, wherever located, to the Republic of Korea to 
compensate for the military capability of defense articles 
withdrawn from Korea in any case where he determines that--
            [(1) the transfer of specific defense articles 
        located in Korea would have a significant adverse 
        impact on the readiness of the United States Armed 
        Forces;
            [(2) the defense capability provided by those 
        defense articles is needed by the Armed Forces of the 
        Republic of Korea in order to maintain the military 
        balance on the Korean peninsula; and
            [(3) a comparable defense capability could be 
        provided by less advanced defense articles in the 
        stocks of the Department of Defense which could be 
        transferred without significant adverse impact on the 
        readiness of the United States Armed Forces.
The President shall report to the Congress each determination 
made under this subsection prior to the transfer of the defense 
articles described in such determination.
    [(c) The President shall transmit to the Congress, together 
with the presentation materials for security assistance 
programs proposed for each fiscal year through and including 
the fiscal year 1983, a report describing the types, 
quantities, and value of defense articles furnished or intended 
to be furnished to the Republic of Korea under this section.
    [(e)(1) It is the sense of the Congress that further 
withdrawals of ground forces of the United States from the 
Republic of Korea may seriously risk upsetting the military 
balance in that region and requires full advance consultation 
with the Congress.

         [united states-republic of china mutual defense treaty

    [Sec. 26. (a) The Congress finds that--
            [(1) the continued security and stability of East 
        Asia is a matter of major strategic interest to the 
        United States;
            [(2) the United States and the Republic of China 
        have for a period of twenty-four years been linked 
        together by the Mutual Defense Treaty of 1954;
            [(3) the Republic of China has during that twenty-
        four-year period faithfully and continually carried out 
        its duties and obligations under that treaty; and
            [(4) it is the responsibility of the Senate to give 
        its advice and consent to treaties entered into by the 
        United States.
    [(b) It is the sense of the Congress that there should be 
prior consultation between the Congress and the executive 
branch on any proposed policy changes affecting the 
continuation in force of the Mutual Defense Treaty of 1954.

                 [negotiations between israel and egypt

    [Sec. 28. (a) The Congress finds that--
            [(1) a lasting settlement of the Arab-Israel 
        conflict is vital to United States national interests 
        as well as to the interests of the countries of the 
        region;
            [(2) support for a strong and secure Israel and the 
        maintenance for this purpose of Israel's effective 
        defense capabilities as essential to peace remains a 
        fundamental tenet of United States foreign policy;
            [(3) direct, face-to-face negotiations between 
        Israel and Egypt without preconditions is an historic 
        opening for peace, and the support of such negotiations 
        by other moderate Arab countries, can best promote a 
        peace settlement based on mutual concessions and 
        accommodations;
            [(4) the establishment of secure, recognized, and 
        defensible borders between Israel and its neighbors 
        will discourage hostilities; and
            [(5) full, normalized relations between Israel and 
        its Arab neighbors, including trade, travel, tourism, 
        communications, and diplomatic relations are vital for 
        peace.
    [(b) It is the sense of the Congress that the Government of 
the United States should continue to promote direct 
negotiations between Israel and Egypt and to encourage other 
Arab countries to enter into negotiations leading to peace 
treaties with Israel.
    [(c) It is further the sense of the Congress that the 
United States should be responsive to Israel's economic needs 
and defense requirements, including the provision of additional 
advanced aircraft, in order to maintain Israel's defense 
capability which is essential to peace.

                          [reports to congress

    [Sec. 29. (a) Section 8(d) of the Act entitled ``An Act to 
amend the Foreign Military Sales Act, and for other purposes'', 
approved January 12, 1971, is amended in the second sentence by 
striking out ``Additionally, the President shall also submit a 
quarterly report to the Congress'' and inserting in lieu 
thereof ``The annual presentation materials for security 
assistance programs shall include a table''.
    [(b) Section 408(b) of the International Security 
Assistance and Arms Export Control Act of 1976 is amended by 
striking out ``(1)'' and by repealing paragraph (2).
    [(c)(1) The International Security Assistance and Arms 
Export Control Act of 1976 is amended--
            [(A) in section 202, by striking out ``(a)'' 
        immediately after ``Sec. 202.'' and by repealing 
        subsection (b);
            [(B) by repealing section 217;
            [(C) by repealing section 218; and
            [(D) in section 407, by striking out ``(a)'' and by 
        repealing subsection (b).
    [(2) The International Security Assistance Act of 1977 is 
amended--
            [(A) in section 9--
                    [(i) by striking out ``review of'' in the 
                section heading;
                    [(ii) by striking out ``(a)'' immediately 
                after ``Sec. 9.''; and
                    [(iii) by repealing subsections (b) through 
                (e); and
            [(B) by repealing section 23.
    [(3) Section 5 of the Emergency Security Assistance Act of 
1973 is repealed.
    [(4) Section 17 of the Foreign Assistance Act of 1974 is 
repealed.

                           [savings provision

    [Sec. 30. Enactment of this Act shall not affect the 
authorizations of appropriations and limitations of authority 
to the fiscal year 1978 which are contained in provisions of 
law amended by this Act (other than sections 31 (a), (b), and 
(d) of the Arms Export Control Act).]
                              ----------                              


       INTERNATIONAL DEVELOPMENT AND FOOD ASSISTANCE ACT OF 1977

    AN ACT To amend the Foreign Assistance Act of 1961 to authorize 
  development assistance programs for fiscal year 1978, to amend the 
   Agricultural Trade Development and Assistance Act of 1954 to make 
certain changes in the authorities of that Act, and for other purposes.

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

                              short title

    Section 1. This Act may be cited as the ``International 
Development and Food Assistance Act of 1977''.

             [TITLE I--INTERNATIONAL DEVELOPMENT ASSISTANCE

                     [development assistance policy

    [Sec. 101. (a) Subsection (d) of section 102 of the Foreign 
Assistance Act of 1961 is amended to read as follows:
    [``(d)(1) Development assistance furnished under this 
chapter shall be increasingly concentrated in countries which 
will make the most effective use of such assistance to help the 
poor toward a better life (especially such countries which are 
suffering from the worst and most widespread poverty and are in 
greatest need of outside assistance). In order to make possible 
consistent and informed judgments concerning which countries 
will make the most effective use of such assistance, the 
President shall propose appropriate criteria and factors to 
assess the commitment and progress of countries in meeting the 
objectives set forth in subsection (c) of this section and in 
other sections of this chapter. In developing such criteria and 
factors, the President shall specifically take into account 
their value in assessing countries' actions which demonstrate 
genuine concern and effective action for materially improving 
the lives of the poor and their ability to participate in 
development, including but not limited to efforts to--
            [``(A) increase agricultural productivity per unit 
        of land through small-farm, labor-intensive 
        agriculture;
            [``(B) reduce infant mortality;
            [``(C) control population growth;
            [``(D) promote greater equality of income 
        distribution, including measures such as more 
        progressive taxation and more equitable returns to 
        small farmers; and
            [``(E) reduce rates of unemployment and 
        underemployment.
A report on such proposed criteria and factors shall be 
transmitted to the Speaker of the House of Representatives and 
the Committee on Foreign Relations of the Senate by January 31, 
1978.
    [``(2) The President shall endeavor to bring about the 
adoption of similar criteria and factors by international 
development organizations in which the United States 
participates.
    [``(3) Presentation materials, submitted to the Congress 
with respect to assistance under this chapter, beginning with 
fiscal year 1977, shall contain detailed information concerning 
the steps being taken to implement this subsection.''.
    [(b) Such section 102 is amended by adding at the end 
thereof the following new subsection:
    [``(e) For the purpose of promoting economic growth in the 
poorest countries, the President is authorized, notwithstanding 
any other provision of law, to make assistance under this 
chapter available to the relatively least developed countries 
on a grant basis to the maximum extent that is consistent with 
the attainment of United States development objectives.''.

                          [food and nutrition

    [Sec. 102. (a) Subsection (a) of section 103 of the Foreign 
Assistance Act of 1961 is amended--
            [(1) by striking out ``$291,000,000'' and all that 
        follows through ``1976 and''; and
            [(2) by inserting ``and $580,000,000 for the fiscal 
        year 1978'' immediately after ``1977''.
    [(b) Such section 103 is amended by adding at the end 
thereof the following new subsection:
    [``(h) of the funds authorized to be appropriated by this 
section for the fiscal year 1978, the President is requested to 
commit up to $60,000,000 for the purposes of assisting India 
with foreign exchange costs incurred in connection with the 
construction of grain storage facilities or other purposes 
specified in this section.''.

                    [population planning and health

    [Sec. 103. (a) Section 104 of the Foreign Assistance Act of 
1961 is amended by striking out subsection (a) and inserting in 
lieu thereof the following new subsections:
    [``(a) In order to increase the opportunities and 
motivation for family planning and to reduce the rate of 
population growth, the President is authorized to furnish 
assistance, on such terms and conditions as he may determine, 
for population planning. There are authorized to be 
appropriated to the President for the purposes of this 
subsection, in addition to funds otherwise available for such 
purposes, $167,000,000 for the fiscal year 1978, which amount 
is authorized to remain available until expended.
    [``(b) In order to prevent and combat disease and to help 
provide health services for the great majority, the President 
is authorized to furnish assistance, on such terms and 
conditions as he may determine, for health, disease prevention, 
and environmental sanitation. There are authorized to be 
appropriated to the President for the purposes of this 
subsection, in addition to funds otherwise available for such 
purposes, $107,700,000 for the fiscal year 1978, which amount 
is authorized to remain available until expended.''.
    [(b) Subsection (b) of such section 104 is redesignated as 
subsection (c).
    [(c) Such section 104 is amended by adding at the end 
thereof the following new subsection:
    [``(d)(1) Assistance under this chapter shall be 
administered so as to give particular attention to the 
interrelationship between (A) population growth, and (B) 
development and overall improvement in living standards in 
developing countries, and to the impact of all programs, 
projects, and activities on population growth. All appropriate 
activities proposed for financing under this chapter shall be 
designed to build motivation for smaller families in programs 
such as education in and out of school, nutrition, disease 
control, maternal and child health services, agricultural 
production, rural development, and assistance to the urban 
poor.
    [``(2) The President is authorized to study the complex 
factors affecting population growth in developing countries and 
to identify factors which might motivate people to plan family 
size or space their children.''.
    [(d) The amendment made by subsection (a) of this section 
shall take effect on October 1, 1977.

               [education and human resource development

    [Sec. 104. (a) Subsection (a) of section 105 of the Foreign 
Assistance Act of 1961 is amended--
            [(1) by striking out ``$90,000,000'' and all that 
        follows through ``1976 and''; and
            [(2) by inserting ``and $84,900,000 for the fiscal 
        year 1978'' immediately after ``1977''.
    [(b) Subsection (c) of such section is amended by inserting 
``for the fiscal year 1977, and not less than $1,647,000 shall 
be available for the fiscal year 1978,'' immediately after 
``shall be available''.

 [technical assistance, energy, research, reconstruction, and selected 
                          development problems

    [Sec. 105. Section 106(b) of the Foreign Assistance Act of 
1961 is amended--
            [(1) by striking out ``$99,550,000 for the fiscal 
        year 1976 and''; and
            [(2) by inserting ``and $105,000,000 for the fiscal 
        year 1978'' immediately after ``fiscal year 1977''.

                    [cost-sharing and funding limits

    [Sec. 106. Section 110 of the Foreign Assistance Act of 
1961 is amended--
            [(1) in subsection (a) by striking out ``107'' and 
        inserting in lieu there of ``106''; and
            [(2) in subsection (b)--
                    [(A) by striking out ``No'' and inserting 
                in lieu there of ``Except for grants to 
                countries determined to be relatively least 
                developed based on the United Nations 
                Conference on Trade and Development list of 
                `relatively least developed countries', no''; 
                and
                    [(B) by striking out ``107'' and inserting 
                in lieu thereof ``106''.

                  [development and use of cooperatives

    [Sec. 107. (a) Section 111 of the Foreign Assistance Act of 
1961 is amended--
            [(1) in the first sentence by striking out 
        ``assistance in the development'' and inserting in lieu 
        thereof ``technical and capital assistance in the 
        development and use''; and
            [(2) by amending the second sentence to read as 
        follows: ``Not less than $10,000,000 of the funds made 
        available under this Act for the fiscal year 1978 may 
        be used only for technical assistance to carry out the 
        purposes of this section.''.
    [(b) The amendments made by subsection (a) shall take 
effect on October 1, 1977.

               [integrating women into national economies

    [Sec. 108. Section 113 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 113. Integrating Women Into National Economies.--
(a) In recognition of the fact that women in developing 
countries play a significant role in economic production, 
family support, and the overall development process of the 
national economies of such countries, this part shall be 
administered so as to give particular attention to those 
programs, projects, and activities which tend to integrate 
women into the national economies of developing countries, thus 
improving their status and assisting the total development 
effort.
    [``(b) The President shall transmit to the Speaker of the 
House of Representatives and to the committee on Foreign 
Relations of the Senate a report on the impact of development 
programs, projects, and activities on the integration of women 
into the developing economies of countries receiving assistance 
under this part. The report shall include--
            [``(1) an evaluation of progress toward developing 
        an adequate data base on the role of women in the 
        national economies of recipient countries;
            [``(2) a specific description of the efforts 
        undertaken to implement subsection (a); and
            [``(3) an evaluation of the effectiveness of such 
        efforts.
    [``(c) The report required by subsection (b) shall be 
transmitted not later than one year after the date of enactment 
of this subsection.''.

      [prohibition on use of funds for involuntary sterilizations

    [Sec. 109. Section 114 of the Foreign Assistance Act of 
1961 is amended--
            [``(1) by striking out ``Abortions.--'' and 
        inserting in lieu thereof ``Abortions or Involuntary 
        Sterilizations.--(a) ''; and
            [``(2) by adding at the end thereof the following 
        new subsection:
    [``(b) None of the funds made available to carry out this 
part shall 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 practice 
sterilizations.''.

                 [limitations on development assistance

    [Sec. 110. Section 115(a) of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``(a) None of the funds made available to carry out this 
chapter may be used in any fiscal year for any country to which 
assistance is furnished in such fiscal year under chapter 4 of 
part II (security supporting assistance) or under part VI 
(assistance for Middle East peace) unless the Congress has 
specifically authorized such use of those funds. The specific 
authorization requirement of this subsection shall be deemed to 
be satisfied if the purpose for which funds are to be used is 
described in the presentation materials submitted to the 
Congress on proposed development assistance programs for the 
fiscal year in question and the Congress indicates its approval 
of such use in the legislation authorizing development 
assistance programs for such fiscal year.''.

                             [human rights

    [Sec. 111. (a) Subsections (c) and (d) of section 116 of 
the Foreign Assistance Act of 1961 are amended to read as 
follows:
    [``(c) In determining whether or not a government falls 
within the provisions of subsection (a) and in formulating 
development assistance programs under this part, the 
Administrator shall consider, in consultation with the 
Coordinator for Human Rights and Humanitarian Affairs--
            [``(1) the extent of cooperation of such government 
        in permitting an unimpeded investigation of alleged 
        violations of internationally recognized human rights 
        by appropriate international organizations, including 
        the International Committee of the Red Cross, or groups 
        or persons acting under the authority of the United 
        Nations or of the Organization of American States; and
            [``(2) specific actions which have been taken by 
        the President or the Congress relating to multilateral 
        or security assistance to a less developed country 
        because of the human rights practices or policies of 
        such country.
    [``(d) The Secretary of State shall transmit to the Speaker 
of the House of Representatives and the Committee on Foreign 
Relations of the Senate, by January 31 of each year, a full and 
complete report regarding--
            [``(1) the status of internationally recognized 
        human rights, within the meaning of subsection (a), in 
        countries that receive assistance under this part; and
            [``(2) the steps the Administrator has taken to 
        alter United States programs under this part in any 
        country because of human rights considerations.''.
    [(b) Such section 116 is amended by adding at the end 
thereof the following new subsection:
    [``(e) Of the funds made available under this chapter for 
the fiscal year 1978, not less than $750,000 may be used only 
for studies to identify, and for openly carrying out, programs 
and activities which will encourage or promote increased 
adherence to civil and political rights, as set forth in the 
Universal Declaration of Human Rights, in countries eligible 
for assistance under this chapter. None of these funds may be 
used, directly or indirectly, to influence the outcome of any 
election in any country.''.

                           [infant nutrition

    [Sec. 112. Chapter 1 of part I of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 117. Infant Nutrition.--The President is encouraged 
(1) to devise and carry out in partnership with developing 
nations a strategy for programs of nutrition and health 
improvement for mothers and children, including breast-feeding, 
and (2) to provide technical, financial, and material support 
to individuals or groups at the local level for such 
programs.''.

                   [environment and natural resources

    [Sec. 113. (a) Chapter 1 of part I of the Foreign 
Assistance Act of 1961, as amended by section 112 of this Act, 
is further amended by adding at the end thereof the following 
new section:
    [``Sec. 118. Environment and Natural Resources.--The 
President is authorized to furnish assistance under this part 
for developing and strengthening the capacity of less developed 
countries to protect and manage their environment and natural 
resources. Special efforts shall be made to maintain and where 
possible restore the land, vegetation, water, wildlife, and 
other resources upon which depend economic growth and human 
well-being, especially that of the poor.''.
    [(b) Section 102 of such Act is amended--
            [(1) by inserting in the seventh paragraph of 
        subsection (a) ``environment and natural resources,'' 
        immediately after ``decent housing,''; and
            [(2) by inserting in subsection (b)(2) 
        ``environment and natural resources;'' immediately 
        after ``health;''.

           [renewable and unconventional energy technologies

    [Sec. 114. Chapter 1 of part I of the Foreign Assistance 
Act of 1961, as amended by sections 112 and 113 of this Act, is 
further amended by adding at the end thereof the following new 
section:
    [``Sec. 119. Renewable and Unconventional Energy 
Technologies.--(a)(1) The President is authorized to furnish 
assistance under this chapter for cooperative programs with 
developing countries in energy production and conservation, 
with particular emphasis on programs in research, development, 
and use of small-scale, decentralized, renewable energy sources 
for rural areas carried out as integral parts of rural 
development efforts in accordance with section 103 of this Act. 
Programs under this subsection shall be undertaken, whenever 
appropriate, in cooperation with the Energy Research and 
Development Administration or its successor and shall be 
carried out, to the greatest extent possible, through and in 
conjunction with activities under section 107 of this Act. 
These programs shall be directed toward the earliest 
practicable development and use of energy technologies which 
are environmentally acceptable, require minimum capital 
investment, are most acceptable to and affordable by the people 
using them, are simple and inexpensive to use and maintain, and 
are transferable from one region of the world to another.
    [``(2) Of the funds made available to carry out this 
chapter for the fiscal year 1978, up to $18,000,000 are to be 
used for carrying out this subsection.
    [``(b)(1) In furtherance of the purposes of this section, 
the President is authorized to carry out studies to identify 
the energy needs, uses, and resources which exist in developing 
countries. The results of the studies conducted under this 
subsection shall be reported to the Congress by March 1, 1978.
    [``(2) The Agency for International Development, in 
cooperation with the Energy Research and Development 
Administration or its successor, shall conduct a review of the 
options for implementing the purposes of this section, one of 
which shall be a proposal for a nonprofit Government 
corporation (which would be designated as the International 
Energy Institute) outside the Agency for International 
Development. The President shall submit a comprehensive report 
on such review to the Speaker of the House of Representatives 
and the Committee on Foreign Relations of the Senate by January 
31, 1978, together with his recommendations as to which option 
should be implemented.''.

                       [sahel development program

    [Sec. 115. Part I of the Foreign Assistance Act of 1961 is 
amended--
            [(1) by redesignating section 494B as section 120 
        and inserting such redesignated section at the end of 
        chapter 1 of such part, as amended by sections 112, 
        113, and 114 of this Act;
            [(2) by amending the section caption of such 
        redesignated section to read ``Sahel Development 
        Program--Planning''; and
            [(3) by inserting the following new section 
        immediately after such redesignated section:
    [``Sec. 121. Sahel Development Program--Implementation.--
(a) The President is authorized to furnish assistance, on such 
terms and conditions as he may determined, for the long-term 
development of the Sahelian region. Assistance furnished under 
this section shall be in accordance with a long-term, 
multidonor development plan which calls for equitable 
burdensharing with other donors and shall be furnished, 
whenever appropriate, in cooperation with an international 
coordinating mechanism.
    [``(b) The President shall prepare an annual report on the 
Sahel Development Program concerning the allocation of the 
United States contribution to the Program, the extent of the 
contributions from other donor countries, the effectiveness of 
the integrated effort through the Club des Amis du Sahel, and 
the progress made in achieving the objective of the Program.
    [``(c) There are authorized to be appropriated to the 
President for purposes of this section beginning in the fiscal 
year 1978, in addition to funds otherwise available for such 
purposes, $200,000,000, except that not to exceed $50,000,000 
may be appropriated under this section for the fiscal year 
1978. Amounts appropriated under this section are authorized to 
remain available until expended.''.

                 [american schools and hospitals abroad

    [Sec. 116. (a) Section 214 of the Foreign Assistance Act of 
1961 is amended--
            [(1) in subsection (c)--
                    [(A) by striking out ``each of the fiscal 
                years 1974'' and all that follows through 
                ``1976 and'' and inserting in lieu thereof 
                ``the fiscal year''; and
                    [(B) by inserting ``and for the fiscal year 
                1978, $25,000,000, immediately after 
                ``$25,000,000,'';
            [(2) in subsection (d)--
                    [(A) by striking out ``1974'' and all that 
                follows through ``1976 and''; and
                    [(B) by inserting ``and 1978'' immediately 
                after ``1977''; and
            [(3) by adding at the end thereof the following new 
        subsection:
    [``(f) Notwithstanding the provisions of subsection (b), 
funds appropriated under this section may be used for 
assistance to centers for pediatric plastic and reconstructive 
surgery established by Children's Medical Relief International, 
except that assistance may not be furnished for the domestic 
operations of any such center located in the United States, its 
territories or possessions.''.
    [(b) The amendment made by subsection (a)(3) shall not 
apply to funds appropriated before the date of enactment of 
this Act.

              [housing and other credit guaranty programs

    [Sec. 117. (a)(1) Section 221 of the Foreign Assistance Act 
of 1961 is amended--
            [(A) by striking out the second sentence; and
            [(B) in the last sentence, by inserting ``, section 
        222(c),'' immediately after ``222(b)''.
    [(2) Section 222(c) of such Act is amended--
            [(A) by inserting ``or under section 221'' 
        immediately after ``1969''; and
            [(B) by striking out ``$600,000,000'' and inserting 
        in lieu thereof ``$1,030,000,000''.
    [(3) Section 223(i) of such Act is amended by striking out 
``1978'' and inserting in lieu thereof ``1979''.
    [(b)(1) Section 222A(h) of such Act is amended by striking 
out ``December 31, 1977'' and inserting in lieu thereof 
``September 30, 1978''.
    [(2) Section 223(b) of such Act is amended--
            [(A) by striking out ``hereunder'' and inserting in 
        lieu thereof ``under section 221 or 222 or under prior 
        housing guaranty authorities''; and
            [(B) by adding at the end thereof the following new 
        sentence: ``Fees collected in connection with 
        guaranties issued under section 222A shall likewise be 
        available to meet similar expenses, costs, or 
        liabilities incurred in connection with the programs 
        authorized by that section.''.
    [(c) Section 223(j) of such Act is amended in the last 
sentence--
            [(1) by striking out ``1977'' and inserting in lieu 
        thereof ``1978''; and
            [(2) by striking out ``$50,000,000'', 
        ``$20,000,000'', and ``$15,000,000'', and inserting in 
        lieu thereof ``$75,000,000'', ``$30,000,000'', and 
        ``$30,000,000'', respectively.

               [international organizations and programs

    [Sec. 118. (a) Section 302(a)(1) of the Foreign Assistance 
Act of 1961 is amended--
            [(1) by striking out ``for the fiscal year 1974,'' 
        and all that follows through ``$194,500,000 and'';
            [(2) by inserting immediately before the period at 
        the end of the first sentence ``and for the fiscal year 
        1978, $252,000,000''; and
            [(3) by adding at the end thereof the following new 
        sentence: ``Of the funds authorized to be appropriated 
        under this subsection for the fiscal year 1978, not to 
        exceed $42,500,000 shall be available for voluntary 
        contributions to the United Nations Relief and Works 
        Agency for Palestine Refugees.''.
    [(b) Section 305 of such Act is amended by adding at the 
end thereof the following new sentence: ``The President is 
further requested, in making United States contributions to 
such organizations, to take into account the progress, or lack 
of progress, of such organizations in adopting and implementing 
policies and practices which encourage and promote the 
integration of women into the national economies of member and 
recipient countries, and into professional and policymaking 
positions within such organizations, in accordance with the 
World Plan of Action of the Decade for Women.''.

                   [international disaster assistance

    [Sec. 119. The first sentence of section 492 of the Foreign 
Assistance Act of 1961 is amended by striking out ``1976 and 
1977'' and inserting in lieu thereof ``1977 and 1978''.

          [italian relief, rehabilitation, and reconstruction

    [Sec. 120. Section 495B of the Foreign Assistance Act of 
1961 is amended--
            [(1) by redesignating subsection (b) as subsection 
        (c); and
            [(2) by inserting immediately after subsection (a) 
        the following new subsection:
    [``(b) There are authorized to be appropriated to the 
President $30,000,000 for the fiscal year 1978 for relief, 
rehabilitation, and reconstruction assistance, in accordance 
with the provisions of section 491 and on such terms and 
conditions as he may determine, for the people who have been 
victimized by the recent earthquakes in Italy. Amounts 
appropriated under this subsection are authorized to remain 
available until expended.''.

           [turkey relief, rehabilitation, and reconstruction

    [Sec. 121. Chapter 9 of part I of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 495D. Turkey Relief, Rehabilitation, and 
Reconstruction.--The President is requested to use up to 
$10,000,000 of the funds made available under section 492 of 
this Act to provide relief, rehabilitation, and reconstruction 
assistance to the victims of the recent earthquakes in 
Turkey.''.

              [use of foreign voluntary nonprofit agencies

    [Sec. 122. (a) Section 607 of the Foreign Assistance Act of 
1961 is amended by inserting immediately before the period at 
the end of the first sentence ``(including foreign voluntary 
nonprofit relief agencies so registered and approved when no 
United States voluntary nonprofit relief agency is 
available)''.
    [(b) For purposes of implementing the amendment made by 
subsection (a), the President shall issue regulations governing 
registration with and approval by the Advisory Committee on 
Voluntary Foreign Aid of Foreign voluntary nonprofit agencies.

 [repeal of prohibitions on aid to countries assisting or trading with 
                            cuba or vietnam

    [Sec. 123. (a) Section 620(a) of the Foreign Assistance Act 
of 1961 is amended--
            [(1) in the first sentence of paragraph (1) by 
        striking out the semicolon and all that follows through 
        ``States''; and
            [(2) by striking out paragraph (3).
    [(b) Section 620(n) of such Act is repealed.
    [(c) Section 664 of such Act is repealed.

                 [inspector general, foreign assistance

    [Sec. 124. (a)(1) Section 624(d) of the Foreign Assistance 
Act of 1961 is repealed.
    [(b) Section 5315 of title 5, United States Code, is 
amended by repealing paragraphs (52) and (53).
    [(c) The amendments made by this section shall take effect 
on July 1, 1978.

                       [foreign service officers

    [Sec. 125. The last proviso of section 625(d)(2) of the 
Foreign Assistance Act of 1961 is amended by striking out the 
semicolon and ``however, the authority contained in this 
proviso may not be exercised with respect to the assignment to 
such duty of more than fifty persons at any time''.

                            [double dipping

    [Sec. 126. Section 626(b) of the Foreign Assistance Act of 
1961 is amended by striking out ``sections 3323(a) and 8344 of 
title 5 of the United States Code, section 872 of the Foreign 
Service Act of 1946, as amended, or any other law limiting the 
reemployment of retired officers or employees or governing the 
simultaneous receipt of compensation and retired pay or 
annuities, subject to section 5532'' and inserting in lieu 
thereof ``section 3323(a)''.

 [coordination of united states international development policies and 
                                programs

    [Sec. 127. (a) Subsection (a) of section 640B of the 
Foreign Assistance Act of 1961 is amended by adding at the end 
thereof the following new sentence: ``The Committee shall 
advise the President concerning the degree to which bilateral 
and multilateral development assistance should focus on 
critical problems in those functional sectors which affect the 
lives of the majority of people in the developing countries: 
food production; rural development and nutrition; population 
planning and health; and education, public administration, and 
human resource development.''.
    [(b) Subsection (d) of such section is amended to read as 
follows:
    [``(d) The President shall report to the Congress during 
the first quarter of each calendar year on United States 
actions affecting the development of less developed countries. 
The report shall include (1) a comprehensive and coordinated 
review of all United States policies and programs having a 
major impact on the development of such countries, including 
but not limited to the areas of bilateral and multilateral 
assistance, trade, commodities, monetary affairs, private 
investment, debt, employment, food, energy, technology, 
population, oceans, environment, human settlements, natural 
resources, and participation in international agencies 
concerned with development; and (2) an assessment of the impact 
of such policies and programs on (A) national employment, 
wages, and working conditions in the United States, as well as 
other aspects of the United States economy, and (B) the well-
being of the poor in the less developed countries in accordance 
with the approach to development outlined in subsections (c) 
and (d) of section 102 of this Act.''.
    [(c) Such section 640B is amended by adding at the end 
thereof the following new subsections:
    [``(e) The head of any of the departments or agencies 
referred to in subsection (a) may temporarily assign, upon the 
request of the Chairman, any employee from such department or 
agency to the staff of the Committee.
    [``(f) To carry out the purposes of subsection (a), the 
Committee shall--
            [``(1) prepare studies on various development 
        problems;
            [``(2) devise implementation strategies on 
        developmental problems appropriate to each such 
        department or agency;
            [``(3) monitor and evaluate the results of the 
        development activities of each such department or 
        agency; and
            [``(4) arrange for the exchange of information and 
        studies between such agencies and departments.
    [``(g) In his annual report to the Congress pursuant to 
subsection (d), the President shall include a report on the 
Committee's operations pursuant to subsection (f).''.

                   [reimbursable development programs

    [Sec. 128. Section 661 of the Foreign Assistance Act of 
1961 is amended--
            [(1) by striking out ``up to $1,000,000'' and all 
        that follows through ``1976, and'';
            [(2) by inserting ``of the funds made available for 
        the purposes of this Act'' immediately after 
        ``$2,000,000'' the second place it appears; and
            [(3) by inserting ``and $2,000,000 of the funds 
        made available for the purposes of this Act in the 
        fiscal year 1978'' immediately after ``1977''.

                          [operating expenses

    [Sec. 129. (a) Section 667 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 667. Operating Expenses.--(a) There are authorized 
to be appropriated to the President, in addition to funds 
otherwise available for such purposes, for the final year 
1978--
            [``(1) $220,200,000 for necessary operating 
        expenses of the agency primarily responsible for 
        administering part I of this Act; and
            [``(2) such amounts as may be necessary for 
        increases in salary, pay, retirement, and other 
        employee benefits authorized by law, and for other 
        nondiscretionary costs of such agency.
    [``(b) Amounts appropriated under this section are 
authorized to remain available until expended.''.
    [(b) Section 109 of such Act is amended by inserting 
immediately before the period in the last sentence a comma and 
the following: ``except that the authority of such sections may 
be used to transfer for the purposes of section 667 not to 
exceed five per centum of the amount of funds made available 
for section 667(a)(1)''.

                    [notification of program changes

    [Sec. 130. Chapter 3 of part III of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 671. Notification of Program Changes.--None of the 
funds appropriated to carry out the purposes of this Act 
(except for programs under title III or title IV of chapter 2 
of part I, chapter 5 of part I, and programs of disaster relief 
and rehabilitation) may be obligated for any activities, 
programs, projects, types of materiel assistance, countries, or 
other operations not justified, or in excess of the amount 
justified, to the Congress for obligation under this Act for 
any fiscal year unless the Committee on Foreign Relations of 
the Senate, the Committee on International Relations of the 
House of Representatives, and the Committee on Appropriations 
of each House of the Congress are notified fifteen days in 
advance of such obligation.''.

              [future united states development assistance

    [Sec. 131. It is the sense of the Congress that the United 
States should increase substantially its assistance for self-
help development among the world's poorest people. Such 
assistance should be provided in accordance with the general 
policies and principles of chapter 1 of part I of the Foreign 
Assistance Act of 1961, with particular emphasis on encouraging 
and supporting more equitable patterns of economic growth, 
especially in the poorest countries, and should be coordinated 
with similar expanded efforts by international organizations, 
donor nations, and the recipient countries themselves.

       [limitation on use of funds; missing in action in vietnam

    [Sec. 132. (a) None of the funds authorized to be 
appropriated by this Act may be used for assistance to or 
reparations for the Socialist Republic of Vietnam, Cambodia, 
Laos, or Cuba.]
          * * * * * * *

                       [TITLE II--FOOD FOR PEACE

          [repeal of certain prohibitions on title i financing

    [Sec. 201. (a) Section 102 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by striking 
out ``: Provided,'' and all that follows through the end of the 
section and inserting in lieu thereof a period.
    [(b) Section 103(d) of such Act is amended by striking out 
``, or (3)'' and all that follows through ``United Arab 
Republic under title I of this Act''.

                   [allocation of title i agreements

    [Sec. 202. Section 111 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by striking 
out the first three sentences and inserting in lieu thereof the 
following: ``Not more than 25 per centum of the food aid 
commodities provided under this title in each fiscal year shall 
be allocated and agreed to be delivered to countries other than 
those which meet the poverty criterion established for 
International Development Association financing and which are 
affected by inability to secure sufficient food for their 
immediate requirements through their own production or 
commercial purchase from abroad, unless the President certifies 
to the Congress that (1) the use of such food assistance is 
required for humanitarian food purposes, or (2) the quantity of 
commodities which would be required to be allocated under this 
section to countries which meet the International Development 
Association poverty criterion could not be used effectively to 
carry out the humanitarian or development purposes of this 
title. A reduction below 75 per centum in the proportion of 
food aid allocated and agreed to be delivered to countries 
which meet the International Development Association poverty 
criterion and which are affected by inability to secure 
sufficient food for their immediate requirements through their 
own production or commercial purchase from abroad which results 
from significantly changed circumstances occurring after the 
initial allocation shall not constitute a violation of the 
requirements of this section.''.

                             [human rights

    [``Sec. 203. Title I of the Agricultural Trade Development 
and Assistance Act of 1954 is amended by adding at the end 
thereof the following new section:
    [``Sec. 112. (a) No agreement may be entered into under 
this title to finance the sale of agricultural commodities to 
the government of any country which engages in a consistent 
pattern of gross violations of internationally recognized human 
rights, including torture or cruel, inhuman, or degrading 
treatment or punishment, prolonged detention without charges, 
or other flagrant denial of the right to life, liberty, and the 
security of person, unless such agreement will directly benefit 
the needy people in such country. An agreement will not 
directly benefit the needy people in the country for purposes 
of the preceding sentence unless either the commodities 
themselves or the proceeds from their sale will be used for 
specific projects or programs which the President determines 
would directly benefit the needy people of that country. The 
agreement shall specify how the projects or programs will be 
used to benefit the needy people and shall require a report to 
the President on such use within 6 months after the commodities 
are delivered to the recipient country.
    [``(b) To assist in determining whether the requirements of 
subsection (a) are being met, the Committee on Agriculture, 
Nutrition, and Forestry of the Senate or the Committee on 
International Relations of the House of Representatives may 
require the President to submit in writing information 
demonstrating that an agreement will directly benefit the needy 
people in a country.
    [``(c) In determining whether or not a government falls 
within the provisions of subsection (a), consideration shall be 
given to the extent of cooperation of such government in 
permitting an unimpeded investigation of alleged violations of 
internationally recognized human rights by appropriate 
international organizations, including the International 
Committee of the Red Cross, or groups or persons acting under 
the authority of the United Nations or of the Organization of 
American States.
    [``(d) The President shall transmit to the Speaker of the 
House of Representatives, the President of the Senate, and the 
Committee on Agriculture, Nutrition, and Forestry of the 
Senate, in the annual presentation materials on planned 
programing of assistance under this Act, a full and complete 
report regarding the steps he has taken to carry out the 
provisions of this section.''.

           [financing the sale of food and fiber commodities

    [Sec. 204. Title I of the Agricultural Trade Development 
and Assistance Act of 1954, as amended by sections 203 of this 
Act, is further amended by adding at the end thereof the 
following new section:
    [``Sec. 113. In the allocation of funds made available 
under this title, priority shall be given to financing the sale 
of food and fiber commodities.''.

              [high protein, blended, and fortified foods

    [``Sec. 205 Title I of the Agricultural Trade Development 
and Assistance Act of 1954, as amended by sections 203 and 204 
of this Act, is further amended by adding at the end thereof 
the following new section:
    [``Sec. 114. (a) The Congress declares it to be the policy 
of the United States to assist developing countries in the 
transition from food assistance recipients to economic self-
sufficiency and to assist those nations which have been 
recipients of high protein, blended, or fortified foods under 
title II of this Act to continue to combat hunger and 
malnutrition among the lower income segments of their 
population, especially children, through the continued 
provision of these foods under this title.
    [``(b) In implementing the policy declared in subsection 
(a), the President, in entering into agreements for the sale of 
high protein, blended, or fortified foods under this title with 
countries which (1) give assurance that the benefits of any 
waiver under this section will be passed on to the individual 
recipients of such foods, and (2) have a reasonable potential 
for transition to commercial purchasers of such foods, may make 
provisions for a waiver of repayment of up to that part of the 
product value which is attributable to the costs of processing, 
enrichment, or fortification.
    [``(c) In implementing this section, due care shall be 
taken to minimize its impact on other commercial and 
concessional sales of whole grains and, where feasible, 
agreements under this title utilizing the authority contained 
in this section will provide for sales of such commodities.''.

                     [title ii minimum distribution

    [Sec. 206. Section 201(b) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by striking 
out ``title shall be'' and all that follows through ``unless'' 
and inserting in lieu thereof the following: ``title--
            [``(1) for fiscal years 1978 through 1980 shall be 
        1,600,000 metric tons, of which not less than 1,300,000 
        metric tons shall be distributed through nonprofit 
        voluntary agencies and the World Food Program;
            [``(2) for fiscal year 1981 shall be 1,650,000 
        metric tons, of which not less than 1,350,000 metric 
        tons shall be distributed through nonprofit voluntary 
        agencies and the World Food Program; and
            [``(3) for fiscal year 1982 and each fiscal year 
        thereafter shall be 1,700,000 metric tons, of which not 
        less than 1,400,000 metric tons shall be distributed 
        through nonprofit voluntary agencies and the World Food 
        Program;
[unless''.

                   [title ii distribution priorities

    [Sec. 207. Section 202 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended--
            [(1) by inserting ``(a)'' immediately after ``Sec. 
        202.'';
            [(2) by striking out the next to the last sentence; 
        and
            [(3) by adding at the end thereof the following new 
        subsection:
    [``(b)(1) Assistance to needy persons under this title 
shall be directed, insofar as practicable, toward community and 
other self-help activities designed to alleviate the causes of 
need for such assistance.
    [``(2) In order to assure that food commodities made 
available under this title are used effectively, indigenous 
workers shall be employed, to the extent feasible, to provide 
information on nutrition and conduct food distribution programs 
in the most remote villages.
    [``(3) In distributing food commodities under this title, 
priority shall be given, to the extent feasible, to those who 
are suffering from malnutrition by using means such as (A) 
giving priority within food programs for preschool children to 
malnourished children, and (B) giving priority to the poorest 
regions of countries.''.

              [use of foreign nonprofit voluntary agencies

    [Sec. 208. (a) Section 202(a) of the Agricultural Trade 
Development and Assistance Act of 1954, as redesignated by 
section 207(1) of this Act, is amended by inserting the 
following new sentence immediately after the second sentence: 
``If no United States nonprofit voluntary agency registered 
with and approved by the Advisory Committee on Voluntary 
Foreign Aid is available, the President may utilize a foreign 
nonprofit voluntary agency which is registered with and 
approved by the Advisory Committee.''.
    [(b) For purposes of implementing the amendment made by 
subsection (a), the President shall issue regulations governing 
registration with an approval by the Advisory Committee on 
Voluntary Foreign Aid of foreign nonprofit voluntary agencies.

                 [reimbursement of transportation costs

    [Sec. 209. Section 203 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended--
            [(1) by striking out ``, or, in the case of 
        landlocked countries,'' and inserting in lieu thereof a 
        semicolon; and
            [(2) by inserting immediately after ``points of 
        entry abroad'' the following: ``in the case (1) of 
        landlocked countries, (2) where ports cannot be used 
        effectively because of natural or other disturbances, 
        (3) where carriers to a specific country are 
        unavailable, or (4) where a substantial savings in 
        costs or time can be effected by the utilization of 
        points of entry other than ports''.

    [sale of title ii commodities to increase program effectiveness

    [Sec. 210. Section 206 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by striking 
out ``purposes specified in section 103 of the Foreign 
Assistance Act of 1961'' and inserting in lieu thereof 
``increasing the effectiveness of the programs of food 
distribution and increasing the availability of food 
commodities provided under this title to the neediest 
individuals in recipient countries''.

                     [food for development program

    [Sec. 211. (a) Title III of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by--
            [(1) redesignating sections 301, 302, and 303 as 
        sections 308, 309, and 310, respectively; and
            [(2) inserting immediately before section 308, as 
        redesignated by paragraph (1), the following new 
        sections:
    [``Sec. 301. (a) In order to establish a strong 
relationship between United States food assistance and efforts 
by developing countries to increase the availability of food 
for the poor in such countries and improve in other ways the 
quality of their lives, the President is authorized to 
encourage the use of the resources provided by the concessional 
financing of agricultural commodities under this Act for 
agricultural and rural development, including voluntary family 
planning, health, and nutrition programs, by permitting the 
funds accruing from the local sale of such commodities which 
are used for such purposes to be applied against the repayment 
obligation of governments receiving concessional financing 
under this Act. The agreement between the United States 
Government and an eligible developing country government which 
provides for repayment of the obligation to the United States 
accruing from the concessional sale of United States 
agricultural commodities by the use of funds from the sale of 
such purposes shall be called a Food for Development Program.
    [``(b) The overall goal of assistance under this title 
shall be to increase the access of the poor in the recipient 
country to a growing and improving food supply through 
activities designed to improve the production, protection, and 
utilization of food, and to increase the wellbeing of the poor 
in the rural sector of the recipient country. Assistance under 
this title shall be used for programs of agricultural 
development, rural development, nutrition, health services, and 
population planning, and the program described in section 
406(a)(1) of this Act, in those countries which are undertaking 
(or are seriously prepared to undertake in connection with the 
provision of agricultural commodities under this Act) self-help 
measures to increase agricultural production, improve storage, 
transportation, and distribution of commodities, and reduce 
population growth in accordance with section 109 of this Act, 
when such programs are directed at and likely to achieve the 
policy objectives of sections 103 and 104 of the Foreign 
Assistance Act of 1961 and are consistent with the policy 
objectives of this Act. Particular emphasis should be placed on 
activities which effectively assist small farmers, tenants, 
sharecroppers, and landless agricultural services and 
institutions at the local level, and otherwise providing 
opportunities for the poor who are dependent upon agriculture 
and agriculturally related activities to better their lives 
through their own efforts.
    [``Sec. 302. (a) Whenever the President, in consultation 
with the government of a developing country, determines that 
such developing country meets the criteria specified in 
subsection (b) of this section and could benefit from the sale 
of United States agricultural commodities (including processed 
and blended foods) for the purposes of generating funds or 
distributing such commodities for agricultural and rural 
development, and improving food distribution and use within 
such country, the President may designate such country as 
eligible for a Food for Development Program.
    [``(b) In order to be eligible for a Food for Development 
Program under this section, a country must (1) have a need for 
external resources to improve its food production, marketing, 
distribution, and storage systems; (2) meet the criterion used 
to determine basic eligibility for development loans of the 
International Development Association of the International Bank 
for Reconstruction and Development; (3) have the ability to 
utilize effectively the resources made available by the sale of 
food commodities under this section for the purposes specified 
in clause (1) of this subsection; and (4) indicate the 
willingness to take steps to improve its food production, 
marketing, distribution, and storage systems.
    [``(c)(1) Except as provided in paragraph (2) of this 
subsection, the aggregate value of all agreements entered into 
under this title--
         [``(A) for fiscal year 1978, shall be not less than 5 
        percent,
         [``(B) for fiscal year 1979, shall be not less than 10 
        percent, and
         [``(C) for fiscal year 1980 and each fiscal year 
        thereafter, shall be not less than 15 percent,
of the aggregate value of all agreements entered into under 
title I of this Act for such fiscal year.
    [``(2) The President may waive the requirement of paragraph 
(1) of this subsection with respect to a fiscal year if he 
determines that there are an insufficient number of 
agricultural and rural development projects which qualify for 
assistance under this title and that therefore the humanitarian 
purposes of this Act would be better served by furnishing 
financing under other provisions of this Act. Any such waiver 
shall be reported to the Congress, together with a detailed 
statement of the reasons for the lack of acceptable projects 
and a detailed description of efforts by the United States 
Government to assist eligible countries, pursuant to section 
303(a), in identifying appropriate projects for assistance 
under this title.
    [``(3) Greatest efforts shall be made by relevant United 
States agencies to encourage maximum utilization of assistance 
for Food for Development projects under this title, even beyond 
the minimums required by paragraph (1) of this subsection.
    [``Sec. 303. (a) A country designated as eligible and 
wishing to participate in a Food for Development Program shall 
formulate, with the assistance (if requested) of the United 
States Government, a multi-year proposal which shall be 
submitted to the President. Such proposal shall include an 
annual value or amount of agricultural commodities proposed to 
be financed under the authority of title I of this Act pursuant 
to the provisions of this title, and a plan for the intended 
uses of commodities or the funds generated from the sale of 
such commodities, on an annual basis for each year such funds 
are to be disbursed. Such proposal shall also specify the 
nature and magnitude of problems to be affected by the effort, 
and shall present targets in quantified terms, insofar as 
possible, and a description of the relationships among the 
various projects, activities, or programs to be supported.
    [``(b) The multiyear utilization proposal for a Food for 
Development Program shall include, but not be limited to a 
statement of how assistance under such Program will be 
integrated into and complement that country's overall 
development plans and other forms of bilateral and multilateral 
development assistance, including assistance made available 
under section 103 of the Foreign Assistance Act of 1961 or 
under any other title of this Act.
    [``(c) In his review of any utilization proposal for a Food 
for development Program, the President shall be satisfied that 
such assistance is intended to complement, but not replace, 
assistance authorized by the Foreign Assistance Act of 1961, or 
any other program of bilateral or multilateral assistance, or 
under the development program of the country desiring to 
initiate a Food for Development program.
    [``Sec. 304. (a) Whenever a utilization proposal has been 
agreed upon by the President and the participating country, the 
Commodity Credit Corporation is authorized to furnish credit 
under the authority of title I of this Act to the participating 
country for the purchase of a specific annual value of 
agricultural commodities to be delivered over a period of from 
one to five years, subject to the availability of commodities 
under section 401 of this Act.
    [``(b) Notwithstanding any other provision of this Act, no 
payment except as provided for under this title shall be 
required of the recipient government as a part of any agreement 
to finance the sale of agricultural commodities pursuant to a 
Food for Development Program.
    [``(c) In making food assistance available under this title 
to a country on the United Nations Conference on Trade and 
Development list of relatively least developed countries, the 
President may waive any requirement contained in section 303 
(a) or (b), in that portion of section 303(c) which requires 
that assistance under this title is intended to complement but 
not replace any part of the development program of the 
participating country, or in section 306, if he finds that such 
country is unable to meet such requirement but could use 
assistance under this title to meet important humanitarian or 
developmental objectives of this Act. Such waivers, and the 
reasons therefore, shall be reported annually by the President 
to the Congress.
    [``Sec. 305. Funds generated from the sale of agricultural 
commodities by any participating country under this title shall 
be held in a special account, where practicable, to be 
disbursed for the purposes described in the approved Food for 
Development Program of such country. The amount of funds 
disbursed for such purposes and in accordance with the 
agreement shall be deemed payments for the purposes of section 
103(b) of this Act.
    [``Sec. 306. Not more than one year after the initial 
delivery of commodities to any country under this title and 
each year thereafter for the period of agreement, the 
government of the participating country, with the assistance 
(if requested) of the United States Government, shall submit a 
comprehensive report to the President on the activities and 
progress achieved under the Food for Development Program for 
such country, including, but not limited to, a comparison of 
results with projected targets, a specific accounting for funds 
generated, their uses, and the outstanding balances at the end 
of the most recent fiscal year. Such annual report may also 
include recommendations for modification and improvement in the 
Food for Development Program of such country.
    [``Sec. 307. (a) Each year the President shall review the 
disposition of all agreements providing for the use of the 
proceeds from the sale of agricultural commodities pursuant to 
this title for which such funds were not fully disbursed the 
preceding year. The results of such review shall be included in 
the annual report to the Congress required under section 408(a) 
of this Act.
    [``(b) If the President finds that the provisions of an 
agreement are not being substantially met, he shall not extend 
financing for sales under this title until the end of the 
following fiscal year or until the situation is remedied, 
whichever occurs first, unless the failure to meet the 
provisions is due to unusual circumstances beyond the control 
of the recipient government.''.
    [(b)(1) Section 103(b) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by striking 
out ``section 106(b)(2)'' in the proviso and inserting in lieu 
thereof ``title III''.
    [(2) Section 106(b)(2) of such Act is amended by striking 
out the second and third sentences.

[adequacy of facilities: effect of shipments on agricultural production 
                          in recipient country

    [Sec. 212. Section 401 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by inserting 
``(a)'' immediately after ``Sec. 401.'' and by adding at the 
end thereof the following new subsection:
    [``(b) No agricultural commodity may be financed or 
otherwise made available under the authority of this Act except 
upon a determination by the Secretary of Agriculture that (1) 
adequate storage facilities are available in the recipient 
country at the time of exportation of the commodity to prevent 
the spoilage or waste of the commodity, and (2) the 
distribution of the commodity in the recipient country will not 
result in a substantial disincentive to domestic production in 
that country.''.

    [revision of reporting requirements; program evaluation reports

    [Sec. 213. Subsections (b) and (c) of section 408 of the 
Agricultural Trade Development and Assistance Act of 1954 are 
amended to read as follows:
    [``(b) Not later than September 30 of each year, the 
President shall submit to the Congress a report containing a 
global assessment of food assistance under title I for the 
coming fiscal year. Not later than December 31, March 31, and 
June 30 of each year, the President shall submit a report to 
the Congress showing the current status of planned programming 
of food assistance under title I for the current fiscal year.
    [``(c) Beginning October 1, 1978, and at each five-year 
interval thereafter, the President shall submit to the Congress 
a comparative cross-country evaluation of programs conducted 
under titles II and III. Such evaluations shall cover no fewer 
than five countries sampled from the developing regions (Asia, 
Africa, Latin America, and the Caribbean), and shall assess the 
nutritional and other impacts, achievements, problems, and 
future prospects for programs under these titles.''.

                            [effective date

    [Sec. 215. The provisions of this title shall become 
effective October 1, 1977.]
                              ----------                              


             INTERNATIONAL SECURITY ASSISTANCE ACT OF 1977

    AN ACT To amend the Foreign Assistance Act of 1961 to authorize 
  international security assistance programs for fiscal year 1978, to 
   amend the Arms Export Control Act to make certain changes in the 
            authorities of that Act, and for other purposes.

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

                              [short title

    [Section 1. This Act may be cited as the ``International 
Security Assistance Act of 1977''.

                           [contingency fund

    [Sec. 2. Section 451(a) of the Foreign Assistance Act of 
1961 is amended by striking out ``for the fiscal year 1976 not 
to exceed $5,000,000 and for the fiscal year 1977 not to exceed 
$5,000,000'' and inserting in lieu thereof ``for the fiscal 
year 1978 not to exceed $5,000,000''.

                    [international narcotics control

    [Sec. 3. Section 482 of the Foreign Assistance Act of 1961 
is amended to read as follows:
    [``Sec. 482. Authorization.--To carry out the purposes of 
section 481, there are authorized to be appropriated to the 
President $39,000,000 for the fiscal year 1978. Amounts 
appropriated under this section are authorized to remain 
available until expended.''.

                        [assistance to portugal

    [Sec. 4. Chapter 10 of part I of the Foreign Assistance Act 
of 1961 is amended by adding at the end thereof the following 
new section:
    [``Sec. 497. Balance of Payments Loan for Portugal.--(a) In 
recognition of the established interest of the United States in 
fostering a democratic government in Portugal, in maintaining 
the strength of the North Atlantic Treaty Organization 
alliance, and in supporting European economic recovery, the 
purpose of this section is to provide essential balance of 
payments assistance to Portugal.
    [``(b) The President is authorized to make balance of 
payments support loans to Portugal as part of a special 
international effort to assist that country in the development 
and implementation of a program to gain financial stability and 
economic recovery.
    [``(c) There are authorized to be appropriated to the 
President not to exceed $300,000,000 for the fiscal year 1978 
to carry out the purposes of this section, which amount is 
authorized to remain available until expended.''.

                          [military assistance

    [Sec. 5. (a) Section 504(a) of the Foreign Assistance Act 
of 1961 is amended to read as follows:
    [``(a)(1) There are authorized to be appropriated to the 
President to carry out the purposes of this chapter not to 
exceed $228,900,000 for the fiscal year 1978. Not more than the 
following amounts of funds available to carry out this chapter 
may be allocated and made available for assistance to each of 
the following countries for the fiscal year 1978:

[``Greece...............................................     $33,000,000
[``Portugal.............................................      25,000,000
[``Spain................................................      15,000,000
[``Turkey...............................................      48,000,000
[``Jordan...............................................      55,000,000
[``Indonesia............................................      15,000,000
[``Philippines..........................................      19,000,000
[``Thailand.............................................       8,000,000

The amount specified in this paragraph for military assistance 
to any such country for the fiscal year 1978 may be increased 
by not more than 10 per centum of such amount if the President 
deems such increase necessary for the purposes of this chapter.
    [``(2) Except with respect to costs incurred under the 
authority of section 516(b) or as otherwise specifically 
authorized by law, none of the funds available for assistance 
under this chapter may be used to provide assistance to any 
recipient other than the countries specified in paragraph (1).
    [``(3) The authority of section 610(a) and of section 
614(a) may not be used to increase any amount specified in 
paragraph (1) or to waive the limitations of paragraph (2).
    [``(4) Amounts appropriated under this subsection are 
authorized to remain available until expended.''.
    [(b) Section 516(b) of the Foreign Assistance Act of 1961 
is amended by striking out ``paragraphs (2) and (3)'' and 
inserting in lieu thereof ``paragraph (2)''.

         [stockpiling of defense articles for foreign countries

    [Sec. 6. Section 514(b)(2) of the Foreign Assistance Act of 
1961 is amended by striking out ``$93,750,000 for the period 
beginning July 1, 1975, and ending September 30, 1976, and 
$125,000,000 for the fiscal year 1977'' and inserting in lieu 
thereof ``$270,000,000 for the fiscal year 1978''.

    [international military assistance and sales program management

    [Sec. 7. (a) Section 515 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 515. Overseas Management of Assistance and Sales 
Programs.--(a) No military assistance advisory group, military 
mission, or other organization of United States military 
personnel performing similar military advisory functions under 
this Act or the Arms Export Control Act may operate in any 
foreign country unless specifically authorized by the Congress. 
The prohibition contained in this subsection does not apply to 
regular units of the Armed Forces of the United States engaged 
in routine functions designed to bring about the 
standardization of military operations and procedures between 
the Armed Forces of the United States and countries which are 
members of the North Atlantic Treaty Organization or other 
defense treaty allies of the United States.
    [``(b)(1) In order to carry out his responsibilities for 
the management during the fiscal year 1978 of international 
security assistance programs conducted under this chapter, 
under chapter 5 of this part, or under the Arms Export Control 
Act, the President may assign members of the Armed Forces of 
the United States to perform necessary functions with respect 
to such programs in the countries specified in section 
504(a)(1) and in the Republic of Korea, Panama, Brazil, 
Morocco, Iran, Kuwait, and Saudi Arabia. Members of the Armed 
Forces assigned under this subsection shall have as their 
primary functions logistics management, transportation, fiscal 
management, and contract administration of country programs. It 
is the sense of the Congress that advisory and training 
assistance in the countries specified above shall primarily be 
provided by personnel who are not assigned under this 
subsection and who are detailed for limited periods to perform 
specific tasks.
    [``(2) The total number of members of the Armed Forces 
assigned under this subsection to each country specified in 
paragraph (1) of this subsection may not exceed the number 
justified to the Congress in the congressional presentation 
materials, unless the Committee on Foreign Relations of the 
Senate and the Committee on International Relations of the 
House of Representatives are so notified.
    [``(3) Members of the Armed Forces authorized to be 
assigned to Iran, Kuwait, and Saudi Arabia by paragraph (1) of 
this subsection may only be assigned to such countries on a 
fully reimbursable basis under section 21(a) of the Arms Export 
Control Act, except that this requirement shall apply only to 
the extent that the number of members of the Armed Forces 
assigned to each such country exceeds six.
    [``(c) The President may assign not to exceed three members 
of the Armed Forces to any country not specified in subsection 
(b)(1) to perform accounting and other management functions 
with respect to international security assistance programs 
conducted under this chapter, chapter 5 of this part, or under 
the Arms Export Control Act, except that not to exceed three 
additional members of the Armed Forces may be assigned to a 
country to perform such functions when specifically requested 
by the Chief of the Diplomatic Mission as necessary to the 
efficient operation of the Mission.
    [``(d) The total number of members of the Armed Forces 
assigned to foreign countries under subsections (b) an (c) may 
not exceed 865 for the fiscal year 1978.
    [``(e) Members of the Armed Forces assigned to a foreign 
country under subsection (b) or (c) shall serve under the 
direction and supervision of the Chief of the United States 
Diplomatic Mission in that country.
    [``(f) Defense attaches may perform overseas management 
functions described in this section only if the President 
determines that the performance of such functions by defense 
attaches is the most economic and efficient means of performing 
such functions. The President shall promptly report each such 
determination to the Speaker of the House of Representatives 
and to the chairman of the Senate Committee on Foreign 
Relations and the chairman of the Senate Committee on Armed 
Services, together with a description of the number of 
personnel involved and a statement of the reasons for such 
determination. The number of defense attaches performing 
overseas management functions in a country under this 
subsection may not exceed the number of defense attaches 
authorized to be assigned to that country on December 31, 1976.
    [``(g) The entire costs (including salaries of United 
States military personnel) of overseas management of 
international security assistance programs under this section 
shall be charged to or reimbursed from funds made available to 
carry out this chapter, including any such costs which are 
reimbursed from charges from services collected from foreign 
governments pursuant to sections 21(e) and 43(b) of the Arms 
Export Control Act. The prohibition contained in subsection (a) 
of this section and the numerical limitations contained in 
subsections (b), (c), and (d) of this section shall not apply 
to members of the Armed Forces performing services for specific 
purposes and periods of time on a fully reimbursable basis 
under section 21(a) of the Arms Export Control Act.''.
    [(b) Section 516(a) of the Foreign Assistance Act of 1961 
is amended by striking out ``515(b)(2)'' and inserting in lieu 
thereof ``515''.
    [(c) Section 631(d) of the Foreign Assistance Act of 1961 
is amended--
            [(1) by striking out ``this Act'' and inserting in 
        lieu thereof ``part I of this Act''; and
            [(2) by striking out all that follows after 
        ``economic officer of the mission'' and inserting a 
        period in lieu thereof.
    [(d) Section 43(b) of the Arms Export Control Act is 
amended to read as follows:
    [``(b) Charges for administrative services calculated under 
section 21(e)(1)(A) of this Act shall include recovery of 
administrative expenses incurred by any department or agency of 
the United States Government, including any mission or group 
thereof, in carrying out functions under this Act when--
            [``(1) such functions are primarily for the benefit 
        of any foreign country; and
            [``(2) such expenses are not directly and fully 
        charged to, and reimbursed from amounts received for, 
        sale of defense services under section 21(a) of this 
        Act.''.

                    [security supporting assistance

    [Sec. 8 (a) Section 531 of the Foreign Assistance Act of 
1961 is amended--
            [(1) by striking out in the last sentence thereof 
        ``The'' and inserting in lieu thereof ``Except for 
        programs in southern Africa, the''; and
            [(2) by adding at the end thereof the following new 
        sentence: ``In planning security supporting assistance 
        programs intended for economic development, the 
        President shall take into account to the maximum extent 
        feasible the policy directions set forth in chapter 1 
        of part I of this Act.''.
    [(b) Section 532 of the Foreign Assistance Act of 1961 is 
amended to read as follows:
    [``Sec. 532. Authorization.--(a)(1) There are authorized to 
be appropriated to the President to carry out the purposes of 
this chapter for the fiscal year 1978 not to exceed 
$1,890,000,000, of which not less than the following amounts 
shall be available only for the following countries:

[``Israel...............................................    $785,000,000
[``Egypt................................................     750,000,000
[``Jordan...............................................      93,000,000
[``Syria................................................      90,000,000
[``Lebanon..............................................      20,000,000
[``Cyprus...............................................      15,000,000

    [``(2) Of the amount authorized to be appropriated by 
paragraph (1) for the fiscal year 1978 which is available for 
Israel, not less than $300,000,000 shall be available only for 
budgetary support on a grant basis.
    [``(b) Amounts appropriated under this section are 
authorized to remain available until expended.''.
    [(c) Chapter 4 of part II of such Act is amended by adding 
at the end thereof the following new section:
    [``Sec. 533. Southern African Special Requirements Funds.--
(a)(1) Of the funds authorized to be appropriated by section 
532 for the fiscal year 1978, $80,000,000 shall be available 
only for the countries of southern Africa to address the 
problems caused by the economic dislocation resulting from the 
conflict in that region, and for education and job training 
assistance for Africans from Namibia and Zimbabwe (Southern 
Rhodesia). Such funds may be used to provide assistance to 
African refugees and persons displaced by war and internal 
strife in southern Africa, to improve transportation links 
interrupted or jeopardized by regional political conflicts, and 
to provide trade credits for the purchase of United States 
products to those countries in the region adversely affected by 
blocked outlets for their exports and by the overall strains of 
the world economy.
    [``(2) Of the funds made available under this section, not 
more than the following amounts may be made available for the 
following:

[``Botswana.............................................     $15,000,000
[``Lesotho..............................................      15,000,000
[``Swaziland............................................       5,000,000
[``Regional programs for education, training, and 
    refugee assistance..................................      45,000,000
    [``(3) To the extent practicable consistent with the 
purposes specified in paragraph (1), assistance under this 
section should be used to meet the objectives set forth in 
section 102 (c) and (d) and in other sections of chapter 1 of 
part I of this Act.
    [``(4) Before obligating any funds under this section, the 
President shall notify the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate with respect to the specific projects 
and programs for which such funds will be used.
    [``(b) Of the funds made available under subsection (a) of 
this section for regional programs, not to exceed $1,000,000 
may be used by the President for the preparation of a 
comprehensive analysis of the development needs of southern 
Africa to enable the Congress to determine what contribution 
United States foreign assistance can make.
    [``(c)(1) None of the funds made available under this 
section may be used for military, guerrilla, or paramilitary 
activities in any country.
    [``(2) No assistance may be furnished under this section to 
Mozambique, Angola, Tanzania, or Zambia, except that the 
President may waive this prohibition with respect to any such 
country if he determines (and so reports to the Congress) that 
furnishing such assistance to that country would further the 
foreign policy interests of the United States.
    [``(d) It is the sense of the Congress that the United 
States should support an internationally recognized 
constitutional settlement of the Rhodesian conflict leading 
promptly to majority rule based upon democratic principles and 
upholding basic human rights. The Congress declares its intent 
to support United States participation in a Zimbabwe 
Development Fund. The Congress intends to authorize the 
necessary appropriation when progress toward such an 
internationally recognized settlement would permit 
establishment of the Fund.''.

           [security supporting assistance program for egypt

    [Sec. 9. It is the sense of the Congress that the security 
supporting assistance program for Egypt plays an important role 
in the Middle East peace effort and that the Executive branch 
should concentrate its efforts in order to make the program a 
success.

             [international military education and training

    [Sec. 10. Section 542 of the Foreign Assistance Act of 1961 
is amended by striking out ``$27,000,000 for the fiscal year 
1976 and $30,200,000 for the fiscal year 1977'' and inserting 
in lieu thereof ``$31,000,000 for the fiscal year 1978''.

         [prohibition against assistance and sales to argentina

    [Sec. 11. Chapter 1 of part III of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 620B. Prohibition Against Assistance and Sales to 
Argentina.--After September 30, 1978--
            [``(1) no assistance may be furnished under chapter 
        2, 4, or 5 of part II of this Act to Argentina;
            [``(2) no credits (including participation in 
        credits) may be extended and no loan may be guaranteed 
        under the Arms Export Control Act with respect to 
        Argentina;
            [``(3) no sales of defense articles or services may 
        be made under the Arms Export Control Act to Argentina; 
        and
            [``(4) no export licenses may be issued under 
        section 38 of the Arms Export Control Act to or for the 
        Government of Argentina.''.

  [nuclear enrichment and reprocessing transfers; nuclear detonations

    [Sec. 12. Chapter 3 of part III of the Foreign Assistance 
Act of 1961 is amended by striking out section 669 and 
inserting in lieu thereof the following new sections:
    [Sec. 669. Nuclear Enrichment Transfers.--(a) Except as 
provided in subsection (b), no funds authorized to be 
appropriated by this Act or the Arms Export Control Act may be 
used for the purpose of providing economic assistance, 
providing military or security supporting assistance or grant 
military education and training, or extending military credits 
or making guarantees, to any country which, on or after the 
date of enactment of the International Security Assistance Act 
of 1977, delivers nuclear enrichment equipment, materials, or 
technology to any other country, or receives such equipment, 
materials, or technology from any other country, unless before 
such delivery--
            [``(1) the supplying country and receiving country 
        have reached agreement to place all such equipment, 
        materials, or technology, upon delivery, under 
        multilateral auspices and management when available; 
        and
            [``(2) the recipient country has entered into an 
        agreement with the International Atomic Energy Agency 
        to place all such equipment, materials, technology, and 
        all nuclear fuel and facilities in such country under 
        the safeguards system of such Agency.
    [``(b)(1) Notwithstanding subsection (a) of this section, 
the President may furnish assistance which would otherwise be 
prohibited under such subsection if he determines and certifies 
in writing to the Speaker of the House of Representatives and 
the Committee on Foreign Relations of the Senate that--
            [``(A) the termination of such assistance would 
        have a serious adverse effect on vital United States 
        interests; and
            [``(B) he has received reliable assurances that the 
        country in question will not acquire or develop nuclear 
        weapons or assist other nations in doing so.
Such certification shall set forth the reasons supporting such 
determination in each particular case.
    [``(2) Any joint resolution which would terminate or 
restrict assistance described in subsection (a) with respect to 
a country to which the prohibition in such subsection applies 
shall, if introduced within thirty days after the transmittal 
of a certification under paragraph (1) of this subsection with 
respect to such country, be considered in the Senate in 
accordance with the provisions of section 601(b) of the 
International Security Assistance and Arms Export Control Act 
of 1976.
    [Sec. 670. Nuclear Reprocessing Transfers and Nuclear 
Detonations.--(a) Except as provided in subsection (b), no 
funds authorized to be appropriated by this Act, or the Arms 
Export Control Act may be used for the purpose of providing 
economic assistance, providing military or security supporting 
assistance or grant military education and training, or 
extending military credits or making guarantees, to any country 
which on or after the date of enactment of the International 
Security Assistance Act of 1977--
            [``(1) delivers nuclear reprocessing equipment, 
        materials, or technology to any other country or 
        receives such equipment, materials, or technology from 
        any other country (except for the transfer of 
        reprocessing technology associated with the 
        investigation, under international evaluation programs 
        in which the United States participates, of 
        technologies which are alternatives to pure plutonium 
        reprocessing); or
            [``(2) is not a nuclear-weapon state as defined in 
        article IX(3) of the Treaty of the Non-Proliferation of 
        Nuclear Weapons and which detonates a nuclear explosive 
        device.
    [``(b)(1) Notwithstanding subsection (a) of this section, 
the President may furnish assistance which would otherwise be 
prohibited under such subsection if he determines and certifies 
in writing to the Speaker of the House of Representatives and 
the Committee on Foreign Relations of the Senate that the 
termination of such assistance would be seriously prejudicial 
to the achievement of United States nonproliferation objectives 
or otherwise jeopardize the common defense and security. The 
President shall transmit with such certification a statement 
setting forth the specific reasons therefor.
    [(2) Any joint resolution which would terminate or restrict 
assistance described in subsection (a) with respect to a 
country to which the prohibition in such subsection applies 
shall, if introduced within thirty days after the transmittal 
of a certification under paragraph (1) of this subsection with 
respect to such country, be considered in the Senate in 
accordance with the provisions of section 601(b) of the 
International Security Assistance and Arms Export Control Act 
of 1976.''.

                           [middle east peace

    [Sec. 13. Section 903 of the Foreign Assistance Act of 1961 
is amended--
            [(1) in subsection (a), by striking out ``for the 
        fiscal year 1976 not to exceed $50,000,000 and for the 
        fiscal year 1977 not to exceed $35,000,000'' and 
        inserting in lieu thereof ``for the fiscal year 1978 
        not to exceed $25,000,000, of which not less than 
        $12,200,000 shall be available only for the Sinai 
        support mission,'';
            [(2) in subsection (b)--
                    [(A) in paragraph (1)--
                            [(i) by striking out ``and'' at the 
                        end of clause (B), and
                            [(ii) by inserting immediately 
                        before the semicolon at the end thereof 
                        ``, and (D) the reasons why the 
                        President has determined that it is in 
                        the national interest to use funds 
                        appropriated under this section for 
                        such purpose rather than (i) using 
                        funds available for such purpose under 
                        part I, or (ii) if no funds are 
                        available for such purpose under part 
                        I, awaiting the enactment of 
                        legislation making funds specifically 
                        available for such purpose''; and
                    [(B) in paragraph (2), by striking out 
                ``provided by clauses (A), (B), and (C) of'' 
                and inserting in lieu thereof ``required by''; 
                and
            [(3) in subsection (e), by striking out ``1977'' 
        and inserting in lieu thereof ``1978''.

    [repeal of prohibition relating to the twelve-mile fishing limit

    [Sec. 15. Section 3(b) of the Arms Export Control Act is 
repealed.

         [congressional disapproval of third country transfers

    [Sec. 16. Section 3(d) of the Arms Export Control Act is 
amended--
            [(1) by striking out ``, 30 days prior to giving 
        such consent,'' in the text preceding paragraph (1);
            [(2) by redesignating such section as section 
        3(d)(1) and redesignating paragraphs (1) through (5) 
        thereof as subparagraphs (A) through (E), respectively; 
        and
            [(3) by adding the following new paragraph at the 
        end thereof:
    [``(2) Unless the President states in the certification 
submitted pursuant to this subsection that an emergency exists 
which requires that consent to the proposed transfer become 
effective immediately in the national security interests of the 
United States, such consent shall not become effective until 30 
calendar days after the date of such submission and such 
consent shall become effective then only if the Congress does 
not adopt, within such 30-day period, a concurrent resolution 
disapproving the proposed transfer.''.

 [transfers of defense articles and defense services for maintenance, 
                          repair, and overhaul

    [Sec. 17. Section 3(d) of the Arms Export Control Act, as 
amended by section 16 of this Act, is further amended by adding 
the following new paragraph at the end thereof:
    [``(3) This subsection shall not apply--
            [``(A) to transfers of maintenance, repair, or 
        overhaul defense services, or of the repair parts or 
        other defense articles used in furnishing such 
        services, if the transfer will not result in any 
        increase, relative to the original specifications, in 
        the military capability of the defense articles and 
        services to be maintained, repaired, or overhauled;
            [``(B) to temporary transfers of defense articles 
        for the sole purpose of receiving maintenance, repair, 
        or overhaul; or
            [``(C) to cooperative cross servicing arrangements 
        among members of the North Atlantic Treaty 
        Organization.''.

[prohibition against sales, credits, and guaranties to countries which 
              grant sanctuary to international terrorists

    [Sec. 18. Section 3 of the Arms Export Control Act is 
amended by adding at the end thereof the following new 
subsection:
    [``(f)(1) Unless the President finds that the national 
security requires otherwise, he shall terminate all sales, 
credits, and guaranties under this Act to any government which 
aids or abets, by granting sanctuary from prosecution to, any 
individual or group which has committed an act of international 
terrorism. The President may not thereafter make or extend 
sales, credits, or guaranties to such government until the end 
of the one year period beginning on the date of such 
termination, except that if during its period of ineligibility 
for sales, credits, and guaranties pursuant to this section 
such government aids or abets, by granting sanctuary from 
prosecution to, any other individual or group which has 
committed an act of international terrorism, such government's 
period of ineligibility shall be extended for an additional 
year for each such individual or group.
    [``(2) If the President finds that the national security 
justifies a continuation of sales, credits, or guaranties to 
any government described in paragraph (1), he shall report such 
finding to the Speaker of the House of Representatives and the 
Committee on Foreign Relations of the Senate.''.

      [foreign military sales authorization and aggregate ceiling

    [Sec. 19. Section 31 of the Arms Export Control Act is 
amended--
            [(1) in subsection (a), by striking out all in the 
        first sentence after ``not to exceed'' the first time 
        it appears and inserting in lieu thereof ``$677,000,000 
        for the fiscal year 1978.'';
            [(2) in subsection (b), by striking out all after 
        ``shall not exceed'' the first time it appears and 
        inserting in lieu thereof ``$2,102,350,000 for the 
        fiscal year 1978, of which not less than $1,000,000,000 
        shall be available only for Israel.''; and
            [(3) in subsection (c)--
                    [(A) in the first sentence, by striking out 
                ``the fiscal years 1976 and 1977'' and 
                inserting in lieu thereof ``the fiscal year 
                1978''; and
                    [(B) in the last sentence, by striking out 
                ``each''.

      [licenses for the export of certain major defense equipment

    [Sec. 20 Section 38(b)(3) of the Arms Export Control Act is 
amended by adding at the end thereof the following new 
sentence: ``The prohibition contained in the first sentence of 
this paragraph shall not apply to the issuance of licenses 
under this section for the export of major defense equipment to 
Australia, Japan, or New Zealand, or major defense equipment 
sold commercially in implementation of an agreement between the 
United States Government and the government of a foreign 
country for the production of the major defense equipment to 
which such licenses relate if the President his submitted a 
certificate with respect to such proposed agreement, prior to 
its signature, to the Speaker of the House of Representatives 
and to the chairman of the Committee on Foreign Relations of 
the Senate in the same form as the certification required under 
section 36(b) of this Act and subject to the requirements of 
such section.''.

            [fiscal year 1977 authorizations and limitations

    [Sec. 21. Authorizations of appropriations and limitations 
of authority applicable to the fiscal year 1977 contained in 
provisions of law amended by this Act shall not be affected by 
enactment of this Act.

                     [study of technology transfers

    [Sec. 24. (a) The President shall conduct a comprehensive 
study of the policies and practices of the United States 
Government with respect to the national security and military 
implications of international transfers of technology in order 
to determine whether such policies and practices should be 
changed. Such study shall examine--
            [(1) the nature of technology transfer;
            [(2) the effect of technology transfers on United 
        States technological superiority;
            [(3) the rationale for transfers of technology from 
        the United States to foreign countries;
            [(4) the benefits and risks of such transfers;
            [(5) trends in technology transfers by the United 
        States and other countries;
            [(6) the need for controls on transfers of 
        technology, including controls on the use of 
        transferred technology, the effectiveness of existing 
        end-use controls, and possible unilateral sanctions if 
        end-use restrictions are violated;
            [(7) the effectiveness of existing organizational 
        arrangements in the Executive branch in regulating 
        technology transfers from the United States;
            [(8) the adequacy of existing legislation and 
        regulations with respect to transfers of technology 
        from the United States; and
            [(9) the possibilities for international agreements 
        with respect to transfers of technology.
    [(b) In conducting the study required by subsection (a), 
the President shall utilize the resources and expertise of the 
Arms Control and Disarmament Agency, the Department of State, 
the Department of Defense, the Department of Commerce, the 
National Science Foundation, the Office of Science and 
Technology Policy, and such other entities within the Executive 
branch as he deems necessary.

        [policy statement on united states arms sales to israel

    [Sec. 26. In accordance with the historic special 
relationship between the United States and Israel and previous 
agreements and continuing understandings, the Congress joins 
with the President in reaffirming that a policy of restraint in 
United States arms transfers, including arms sales ceiling, 
shall not impair Israel's deterrent strength or undermine the 
military balance in the Middle East.

           [review of arms sales controls on nonlethal items

    [Sec. 27. The President shall undertake a review of all 
regulations relating to arms control for the purpose of 
defining and categorizing lethal and non-lethal products and 
establishing the appropriate level of control for each 
category.

                           [republic of korea

    [Sec. 28. (a)(1) It is the sense of the Congress that the 
President should take all effective measures to assure that the 
Republic of Korea is cooperating fully with the investigation 
(including any resulting prosecutions) being conducted by the 
Department of Justice with respect to allegations of improper 
activity in the United States by agents of the Republic of 
Korea.
    [(b) It is the further sense of the Congress that the 
President should take all effective measures to assure that the 
Republic of Korea is cooperating fully with the investigations 
being conducted by committees of Congress.

                          [piaster conversion

    [Sec. 29. No provision of law shall be construed to prevent 
payment of claims of former and present Vietnamese employees of 
the Agency for International Development, who presently reside 
in the United States, for the conversion of Vietnamese piasters 
to dollars because such conversion cannot take place in the 
territory of the former Republic of Vietnam or because of 
official with whom such piasters were deposited was not a 
United States disbursing officer.]
                              ----------                              


 INTERNATIONAL SECURITY ASSISTANCE AND ARMS EXPORT CONTROL ACT OF 1976

  AN ACT To amend the Foreign Assistance Act of 1961 and the Foreign 
              Military Sales Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act may be cited as the ``International Security Assistance and 
Arms Export Control Act of 1976''.

                 [TITLE I--MILITARY ASSISTANCE PROGRAM

                             [authorization

    [Sec. 101. Section 504(a) of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``(a)(1) There is authorized to be appropriated to the 
President to carry out the purposes of this chapter 
$198,700,000 for the fiscal year 1976 and $177,300,000 for the 
fiscal year 1977. Not more than the following amounts of funds 
available for carrying out this chapter (other than funds 
appropriated under section 507 of the International Security 
Assistance and Arms Export Control Act of 1976) may be 
allocated and made available to each of the following countries 
for such fiscal years:

------------------------------------------------------------------------
                                     Fiscal Year 1976   Fiscal Year 1977
             [Country                     Amount             Amount     
------------------------------------------------------------------------
Greece............................        $31,000,000        $33,000,000
Indonesia.........................         13,000,000         15,000,000
Jordan............................         50,000,000         55,000,000
Republic of Korea.................         55,000,000          8,300,000
Philippines.......................         17,000,000         17,000,000
Thailand..........................         16,000,000         16,000,000
Turkey............................         31,000,000         50,000,000
Ethiopia..........................          6,000,000          6,000,000
------------------------------------------------------------------------

The amount specified in this paragraph for military assistance 
to any such country for fiscal year 1976 or for fiscal year 
1977 may be increased by not more than 10 per centum of such 
amount if the President deems such increase necessary for the 
purposes of this chapter.
    [``(2) Not to exceed $6,000,000 of the funds available for 
fiscal year 1976 to carry out the purposes of this chapter, and 
not to exceed $3,700,000 of the funds available for fiscal year 
1977 to carry out the purposes of this chapter (other than 
funds appropriated under section 507 of the International 
Security Assistance and Arms Export Control Act of 1976), may 
be used to provide assistance to international organizations 
and, subject to the limitations contained in paragraph (3), to 
countries which are not designated in paragraph (1).
    [``(3) Funds available for assistance under this chapter 
may not be used to furnish assistance to more than 20 countries 
(including those countries designated in paragraph (1)) in 
fiscal year 1976. Funds available for assistance under this 
chapter (other than funds appropriated under section 507 of the 
International Security Assistance and Arms Export Control Act 
of 1976) may not be used to furnish assistance to more than 12 
countries (including those countries designated in paragraph 
(1)) in fiscal year 1977.
    [``(4) The authority of section 610(a) and of section 
614(a) may not be used to increase any amount specified in 
paragraph (1) or (2). The limitations contained in paragraphs 
(1), (2), and (3) shall not apply to emergency assistance 
furnished under section 506(a).
    [``(5) There is authorized to be appropriated to the 
President, for administrative and other related expenses 
incurred in carrying out the purposes of this chapter, 
$32,000,000 for the fiscal year 1976 and $70,000,000 for the 
fiscal year 1977.
    [``(6) None of the funds appropriated under this subsection 
shall be used to furnish sophisticated weapons systems, such as 
missile systems or jet aircraft for military purposes, to any 
less developed country not specified in paragraph (1) unless 
the President determines that the furnishing of such weapons 
systems is important to the national security of the United 
States and reports within thirty days each such determination 
to the Congress.
    [``(7) Amounts appropriated under this subsection are 
authorized to remain available until expended.
    [``(8) Assistance for Turkey under this chapter shall be 
subject to the requirements of section 620(x) of this Act.''.

                           [special authority

    [Sec. 102. Section 506(a) of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``(a)(1) If the President first determines and reports to 
Congress in accordance with section 652 of this Act--
            [``(A) that an unforeseen emergency exists which 
        requires immediate military assistance to a foreign 
        country or international organization;
            [``(B) that a failure to respond immediately to 
        that emergency will result in serious harm to vital 
        United States security interests; and
            [``(C) that the emergency requirement cannot be met 
        under authority of the Arms Export Control Act or any 
        other law except this section;
he may order defense articles from the stocks of the Department 
of Defense and defense services for the purposes of this part, 
subject to reimbursement from subsequent appropriations made 
specifically therefor under subsection (b).
    [``(2) the total value of defense articles and defense 
services ordered under this subsection in any fiscal year may 
not exceed $67,500,000. The authority contained in this 
subsection shall be effective in any fiscal year only to the 
extent provided in an appropriation Act.
    [``(3) The President shall keep the Congress fully and 
currently informed of all defense articles and defense services 
ordered under this subsection.''.

         [stockpiling of defense articles for foreign countries

    [Sec. 103. Section 514 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 514. Stockpiling of Defense Articles for Foreign 
Countries.--(a) No defense article in the inventory of the 
Department of Defense which is set aside, reserved, or in any 
way earmarked or intended for future use by any foreign country 
may be made available to or for use by any foreign country 
unless such transfer is authorized under this Act or the Arms 
Export Control Act, or any subsequent corresponding 
legislation, and the value of such transfer is charged against 
funds authorized under such legislation or against the 
limitations specified in such legislation, as appropriate, for 
the fiscal period in which such defense article is transferred. 
For purposes of this subsection, `value' means the acquisition 
cost plus crating, packing, handling, and transportation costs 
incurred in carrying out this section.
    [``(b)(1) The value of defense articles to be set aside, 
earmarked, reserved, or intended for use as war reserve stocks 
for allied or other foreign countries (other than for purposes 
of the North Atlantic Treaty Organization) in stockpiles 
located in foreign countries may not exceed in any fiscal year 
an amount greater than is specified in security assistance 
authorizing legislation for that fiscal year.
    [``(2) The value of such additions to stockpiles in foreign 
countries shall not exceed $93,750,000 for the period beginning 
July 1, 1975, and ending September 30, 1976, and $125,000,000 
for the fiscal year 1977.
    [``(c) Except for stockpiles in existence on the date of 
enactment of the International Security Assistance and Arms 
Export Control Act of 1976 and for stockpiles located in 
countries which are members of the North Atlantic Treaty 
Organization, no stockpile may be located outside the 
boundaries of a United States military base or a military base 
used primarily by the United States.
    [``(d) No defense article transferred from any stockpile 
which is made available to or for use by any foreign country 
may be considered an excess defense article for the purpose of 
determining the value thereof.
    [``(e) The President shall promptly report to the Congress 
each new stockpile, or addition to an existing stockpile, 
described in this section of defense articles valued in excess 
of $10,000,000 in any fiscal year.''.

    [termination of military assistance advisory groups and missions

    [Sec. 104. Section 515 of the Foreign Assistance Act of 
1961 is amended--
            [(1) by striking out ``Effective July 1, 1976,'' 
        and inserting in lieu thereof ``(a) During the period 
        beginning July 1, 1976, and ending September 30, 
        1977,''; and
            [(2) by adding at the end thereof the following new 
        subsections:
    [``(b)(1) After September 30, 1977, no military assistance 
advisory group, military mission, or other organization of 
United States military personnel performing similar military 
advisory functions under this Act may operate in any foreign 
country unless specifically authorized by the Congress.
    [``(2) The President may assign not more than three members 
of the Armed Forces of the United States to the Chief of each 
United States Diplomatic Mission to perform such functions as 
such Chief of Mission determines necessary with respect to 
international military education and training provided under 
chapter 5 of this part, to sales of defense articles and 
services under the Arms Export Control Act, or to such other 
international security assistance programs as the President may 
designate. After September 30, 1977, no such functions or 
related activities may be performed by any defense attaches 
assigned, detailed, or attached to the United States Diplomatic 
Mission in any foreign country.
    [``(c) After September 30, 1976, the number of military 
missions, groups, and similar organizations may not exceed 34.
    [``(d) As used in this section, the term `military 
assistance advisory group, military mission, or other 
organization of United States military personnel performing 
similar military advisory functions under this Act' does not 
include regular units of Armed Forces of the United States 
engaged in routine functions designed to bring about the 
standardization of military operations and procedures between 
the Armed Forces of the United States and allies of the United 
States.''.

     [termination of authority to furnish grant military assistance

    [Sec. 105. Chapter 2 of part II of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 516. Termination of Authority.--(a) Except to the 
extent that the Congress may, subsequent to the enactment of 
this section, authorize the furnishing of military assistance 
in accordance with this chapter to specified countries in 
specified amounts, the authorities contained in this chapter 
(other than the authorities contained in sections 506, 514, and 
515(b)(2)) may not be exercised after September 30, 1977, 
except that such authorities shall remain available until 
September 30, 1980, to the extent necessary to carry out 
obligations incurred under this chapter on or before September 
30, 1977.
    [``(b) Funds available to carry out this chapter shall be 
available notwithstanding the limitations contained in 
paragraphs (2) and (3) of section 504(a) of this Act--
            [``(1) for the winding up of military assistance 
        programs under this chapter, including payment of the 
        costs of packing, crating, handling, and transporting 
        defense articles furnished under this chapter and of 
        related administrative costs; and
            [``(2) for costs incurred under section 503(c) with 
        respect to defense articles on loan to countries no 
        longer eligible under section 504(a) for military 
        assistance.''.

             [international military education and training

    [Sec. 106. (a) Part II of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
chapter:

      [``Chapter 5--International Military Education and Training

    [``Sec. 541. General Authority.--The President is 
authorized to furnish, on such terms and conditions consistent 
with this Act as the President may determine (but whenever 
feasible on a reimbursable basis), military education and 
training to military and related civilian personnel of foreign 
countries. Such training and education may be provided 
through--
            [``(1) attendance at military educational and 
        training facilities in the United States (other than 
        Service academies) and abroad;
            [``(2) attendance in special courses of instruction 
        at schools and institutions of learning or research in 
        the United States and abroad; and
            [``(3) observation and orientation visits to 
        military facilities and related activities in the 
        United States and abroad.
    [``Sec. 542. Authorization.--There are authorized to be 
appropriated to the President to carry out the purposes of this 
chapter $27,000,000 for the fiscal year 1976 and $30,200,000 
for the fiscal year 1977. After June 30, 1976, no training 
under this section may be conducted outside the United States 
unless the President has reported and justified such training 
to the Speaker of the House of Representatives and the 
Committee on Foreign Relations of the Senate.
    [``Sec. 543. Purposes.--Education and training activities 
conducted under this chapter shall be designed--
            [``(1) to encourage effective and mutually 
        beneficial relations and increased understanding 
        between the United States and foreign countries in 
        furtherance of the goals of international peace and 
        security; and
            [``(2) to improve the ability of participating 
        foreign countries to utilize their resources, including 
        defense articles and defense services obtained by them 
        from the United States, with maximum effectiveness, 
        thereby contributing to greater self-reliance by such 
        countries.''.
    [(b) The Foreign Assistance Act of 1961 is amended as 
follows:
            [(1) Section 510 is repealed.
            [(2) Section 622 is amended--
                    [(A) in subsection (b) by inserting ``and 
                military education and training'' immediately 
                after ``(including civic action)''; and
                    [(B) by amending subsection (c) to read as 
                follows:
    ``[(c) Under the direction of the President, the Secretary 
of State shall be responsible for the continuous supervision 
and general direction of economic assistance, military 
assistance, and military education and training programs, 
including but not limited to determining whether there shall be 
a military assistance (including civic action) or a military 
education and training program for a country and the value 
thereof, to the end that such programs are effectively 
integrated both at home and abroad and the foreign policy of 
the United States is best served thereby.''.
            [(3) Section 623 is amended--
                    [(A) in subsection (a)(4) by inserting 
                ``and related civilian'' immediately after 
                ``military''; and
                    [(B) in subsection (a)(6) by inserting ``, 
                education and training'' immediately after 
                ``assistance''.
            [(4) Section 632 is amended--
                    [(A) in subsections (a) and (e) by 
                inserting ``, military education and training'' 
                immediately after ``articles'' wherever it 
                appears; and
                    [(B) in subsection (b) by striking out 
                ``and defense articles'' and inserting in lieu 
                thereof ``, defense articles, or military 
                education and training''.
            [(5) Section 636 is amended--
                    [(A) in subsection (g)(1) by inserting ``, 
                military education and training'' immediately 
                after ``articles''; and
                    [(B) in subsection (g)(2) and in subsection 
                (g)(3) by striking out ``personnel'' and 
                inserting in lieu thereof ``and related 
                civilian personnel''.
            [(6) Section 644 is amended--
                    [(A) by amending subsection (f) to read as 
                follows:
    [``(f) `Defense service' includes any service, test, 
inspection, repair, publication, or technical or other 
assistance or defense information use for the purposes of 
furnishing military assistance, but does not include military 
educational and training activities under chapter 5 of part 
II.''; and
                    [(B) by adding at the end thereof the 
                following new subsection:
    [``(n) `Military education and training' includes formal or 
informal instruction of foreign students in the United State or 
overseas by officers or employees of the United States, 
contract technicians, contractors (including instruction at 
civilian institutions), or by correspondence courses, 
technical, educational, or information publications and media 
of all kinds, training aids, orientation, and military advice 
to foreign military units and forces.''.
    [(c) Except as may be expressly provided to the contrary in 
this Act, all determinations, authorizations, regulations, 
orders, contracts, agreements, and other actions issued, 
undertaken, or entered into under authority of any provision of 
law amended or repealed by this section shall continue in full 
force and effect until modified, revoked, or superseded by 
appropriate authority.
    [(d) Funds made available pursuant to other provisions of 
law for foreign military educational and training activities 
shall remain available for obligation and expenditure for their 
original purposes in accordance with the provisions of law 
originally applicable to those purposes or in accordance with 
the provisions of law currently applicable to those purposes.

                    [TITLE II--ARMS EXPORT CONTROLS

                            [CHANGE IN TITLE

    [Sec. 201. (a) The first section of the Foreign Military 
Sales Act is amended by striking out `` `The Foreign Military 
Sales Act'' and inserting in lieu thereof ``the `Arms Export 
Control Act''. ]
    (b) Any reference to the Foreign Military Sales Act shall 
be deemed to be a reference to the Arms Export Control Act.

                           [arms sales policy

    [Sec. 202. Section 1 of the Foreign Military Sales Act is 
amended by striking out the last paragraph and inserting in 
lieu thereof the following new paragraphs:
    [``It shall be the policy of the United States to exert 
leadership in the world community to bring about arrangements 
for reducing the international trade in implements of war and 
to lessen the danger of outbreak of regional conflict and the 
burdens of armaments. United States programs for or procedures 
governing the export, sale, and grant of defense articles and 
defense services to foreign countries and international 
organizations shall be administered in a manner which will 
carry out this policy.
    [``It is the sense of the Congress that the President 
should seek to initiate multilateral discussions for the 
purpose of reaching agreements among the principal arms 
suppliers and arms purchasers and other countries with respect 
to the control of the international trade in armaments. It is 
further the sense of Congress that the President should work 
actively with all nations to check and control the 
international sale and distribution of conventional weapons of 
death and destruction and to encourage regional arms control 
arrangements. In furtherance of this policy, the President 
should undertake a concerted effort to convene an international 
conference of major arms-supplying and arms-purchasing nations 
which shall consider measures to limit conventional arms 
transfers in the interest of international peace and stability.
    ``[It is the sense of the Congress that the aggregate value 
of defense articles and defense services--
            [``(1) which are sold under section 21 or section 
        22 of this Act; or
            [``(2) which are licensed or approved for export 
        under section 38 of this Act to, for the use, or for 
        benefit of the armed forces, police, intelligence, or 
        other internal security forces of a foreign country or 
        international organization under a commercial sales 
        contract;
in any fiscal year should not exceed current levels.''.

                     [transfer of defense services

    [Sec. 203. (a) Section 3(a)(2) of the Foreign Military 
Sales Act is amended, effective July 1, 1976, by inserting 
immediately after ``article'' each time it appears ``or related 
training or other defense service''.
    [(b) Section 505(a) of the Foreign Assistance Act of 1961 
is amended, effective July 1, 1976, by inserting immediately 
after ``articles'' each time it appears ``or related training 
or other defense service.''.

               [approval for transfer of defense articles

    [Sec. 204. (a) Section 3 of the Foreign Military Sales Act 
is amended by adding at the end thereof the following new 
subsections:
    [``(e) The President may not give his consent under 
paragraph (2) of subsection (a) or under the third sentence of 
such subsection to a transfer of a defense article, or related 
training or other defense service, sold under this Act and may 
not give his consent to such a transfer under section 505(a)(1) 
or 505(a)(4) of the Foreign Assistance Act of 1961 unless, 30 
days prior to giving such consent, the President submits to the 
Speaker of the House of Representatives and the Committee on 
Foreign Relations of the Senate a written certification with 
respect to such proposed transfer containing--
            [``(1) the name of the country or international 
        organization proposing to make such transfer,
            [``(2) a description of the defense article or 
        related training or other defense service proposed to 
        be transferred, including the original acquisition cost 
        of such defense article or related training or other 
        defense service,
            [``(3) the name of the proposed recipient of such 
        defense article or related training or other defense 
        service,
            [``(4) the reasons for such proposed transfer, and
            [``(5) the date on which such transfer is proposed 
        to be made.
Any certification submitted to Congress pursuant to this 
subsection shall be unclassified, except that information 
regarding the dollar value and number of defense articles, or 
related training or other defense services, proposed to be 
transferred may be classified if public disclosure thereof 
would be clearly detrimental to the security of the United 
States.
    [``(f) If the President receives any information that a 
transfer of any defense article, or related training or other 
defense service, has been made without his consent as required 
under this section or under section 505 of the Foreign 
Assistance Act of 1961, he shall report such information 
immediately to the Speaker of the House of Representatives and 
the Committee on Foreign Relations of the Senate.''.
    [(b)(1) The second sentence of subsection (a) of section 3 
of the Foreign Military Sales Act is amended by striking out 
``, and prior'' and all that follows thereafter through 
``transferred'' the second time it appears.
    [(2) The first sentence of section 505(e) of the Foreign 
Assistance Act of 1961 is amended by striking out ``, and 
prior'' and all that follows thereafter through ``transferred'' 
the second time it appears.

                           [sales from stocks

    [Sec. 205. Section 21 of the Foreign Military Sales Act is 
amended to read as follows:
    [``Sec. 21. Sales From Stocks.--(a) The President may sell 
defense articles and defense services from the stocks of the 
Department of Defense to any eligible country or international 
organization if such country or international organization 
agrees to pay in United States dollars--
            [``(1) in the case of a defense article not 
        intended to be replaced at the time such agreement is 
        entered into, not less than the actual value thereof;
            [``(2) in the case of a defense article intended to 
        be replaced at the time such agreement is entered into, 
        the estimated cost of replacement of such article, 
        including the contract or production costs less any 
        depreciation in the value of such article; or
            [``(3) in the case of the sale of a defense 
        service, the full cost to the United States Government 
        of furnishing such service.
    [``(b) Except as provided by subsection (d) of this 
section, payment shall be made in advance or, if the President 
determines it to be in the national interest, upon delivery of 
the defense article or rendering of the defense service.
    [``(c) Personnel performing defense services sold under 
this Act may not perform any duties of a combatant nature, 
including any duties related to training, advising, or 
otherwise providing assistance regarding combat activities, 
outside the United States in connection with the performance of 
those defense services.
    [``(d) If the President determines it to be in the national 
interest pursuant to subsection (b) of this section, billings 
for sales made under letters of offer issued under this section 
after the enactment of this subsection may be dated and issued 
upon delivery of the defense article or rendering of the 
defense service and shall be due and payable which is not paid 
within sixty days after the date of such billing. The rate of 
interest charged shall be a rate not less than a rate 
determined by the Secretary of the Treasury taking into 
consideration the current average market yield on outstanding 
short-term obligations of the United States as of the last day 
of the month preceding the billing and shall be computed from 
the date of billing. The President may extend such sixty-day 
period to one hundred and twenty days if he determines that 
emergency requirements of the purchaser for acquisition of such 
defense articles or defense services exceed the ready 
availability to the purchaser of funds sufficient to pay the 
United States in full for them within such sixty-day period and 
submits that determination to the Congress together with a 
special emergency request for the authorization and 
appropriation of additional funds to finance such purchases 
under this Act.
    [``(e)(1) After September 30, 1976, letters of offer for 
the sale of defense articles or for the sale of defense 
services that are issued pursuant to this section or pursuant 
to section 22 of this Act shall include appropriate charges 
for--
            [``(A) administrative services, calculated on an 
        average percentage basis to recover the full estimated 
        costs of administration of sales made under this Act to 
        all purchasers of such articles and services;
            [``(B) any use of plant and production equipment in 
        connection with such defense articles; and
            [``(C) a proportionate amount of any nonrecurring 
        costs of research, development, and production of major 
        defense equipment.
    [``(2) The President may reduce or waive the charge or 
charges which would otherwise be considered appropriate under 
paragraphs (1)(B) and (1)(C) for particular sales that would, 
if made, significantly advance United States Government 
interests in North Atlantic Treaty Organization 
standardization, or foreign procurement in the United States 
under coproduction arrangements.
    [``(f) Any contracts entered into between the United States 
and a foreign country under the authority of this section or 
section 22 of this Act shall be prepared in a manner which will 
permit them to be made available for public inspection to the 
fullest extent possible consistent with the national security 
of the United States.
    [``(g) In carrying out section 814 of the Act of October 7, 
1975 (Public Law 94-106), the President may enter into North 
Atlantic Treaty Organization standardization agreements for the 
cooperative furnishing of training on a bilateral or 
multilateral basis, if the financial principles of such 
agreements are based on reciprocity. Such agreements shall 
include reimbursement for all direct costs but may exclude 
reimbursement for indirect costs, administrative surcharges, 
and costs of billeting of trainees (except to the extent that 
members of the United States Armed Forces occupying comparable 
accommodations are charged for such accommodations by the 
United States). Each such agreement shall be transmitted 
promptly to the Speaker of the House of Representatives and the 
Committees on Appropriations, Armed Services, and Foreign 
Relations of the Senate.''.

      [sales from stocks affecting united states combat readiness

    [Sec. 206. Section 21 of the Foreign Military Sales Act, as 
amended by section 205 of this Act, is further amended by 
adding at the end thereof the following new subsection:
    [``(h)(1) Sales of defense articles and defense services 
which could have significant adverse effect on the combat 
readiness of the Armed Forces of the United States shall be 
kept to an absolute minimum. The President shall transmit to 
the Speaker of the House of Representatives and the Committees 
on Armed Services and Foreign Relations of the Senate on the 
same day a written statement giving a complete explanation with 
respect to any proposal to sell, under this section, any 
defense articles or defense services if such sale could have a 
significant adverse effect on the combat readiness of the Armed 
Forces of the United States. Each such statement shall be 
unclassified except to the extent that public disclosure of any 
item of information contained therein would be clearly 
detrimental to the security of the United States. Any 
necessarily classified information shall be confined to a 
supplemental report. Each such statement shall include an 
explanation relating to only one such proposal to sell and 
shall set forth--
            [``(A) the country or international organization to 
        which the sale is proposed to be made;
            [``(B) the amount of the proposed sale;
            [``(C) a description of the defense article or 
        service proposed to be sold;
            [``(D) a full description of the impact which the 
        proposed sale will have on the Armed Forces of the 
        United States; and
            [``(E) a justification for such proposed sale, 
        including a certification that such sale is important 
        to the security of the United States.
A certification described in subparagraph (E) shall take effect 
on the date on which such certification is transmitted and 
shall remain in effect for not to exceed one year.
    [``(2) No delivery may be made under any sale which is 
required to be reported under paragraph (1) of this subsection 
unless the certification required to be transmitted by 
paragraph (E) of paragraph (1) is in effect.''.

                      [procurement for cash sales

    [Sec. 207. (a) Section 22(a) of the Foreign Military Sales 
Act is amended by adding at the end thereof the following: 
``Interest shall be charged on any net amount by which any such 
country or international organization is in arrears under all 
of its outstanding unliquidated dependable undertakings, 
considered collectively. The rate of interest charged shall be 
a rate not less than a rate determined by the Secretary of the 
Treasury taking into consideration the current average market 
yield on outstanding short-term obligations of the United 
States as of the last day of the month preceding the net 
arrearage and shall be computed from the date of net 
arrearage.''.
    [(b) Section 22(b) of the Foreign Military Sales Act is 
amended by striking out the first sentence and inserting in 
lieu thereof the following: ``The President may, if he 
determines it to be in the national interest, issue letters of 
offer under this section which provide for billing upon 
delivery of the defense article or rendering of the defense 
service and for payment within one hundred and twenty days 
after the date of billing. This authority may be exercised, 
however, only if the President also determines that the 
emergency requirements of the purchaser for acquisition of such 
defense articles and services exceed the ready availability to 
the purchaser of funds sufficient to make payments on a 
dependable undertaking basis and submits both determinations to 
the Congress together with a special emergency request for 
authorization and appropriation of additional funds to finance 
such purchases under this Act.''.

             [extension of payment period for credit sales

    [Sec. 208. (a) Paragraph (1) of section 23 of the Foreign 
Military Sales Act is amended by striking out ``ten years'' and 
inserting in lieu thereof ``twelve years''.
    [(b) The amendment made by subsection (a) shall apply with 
respect to financing under agreements entered into on or after 
the date of enactment of this Act for the procurement of 
defense articles to be delivered, or defense services to be 
rendered, after such date.

          [annual estimate and justification for sales program

    [Sec. 209. (a) Immediately after section 24 of the Foreign 
Military Sales Act, add the following new section:
    [``Sec. 25. Annual Estimate and Justification for Sales 
Program.--(a) The President shall transmit to the Congress, as 
a part of the presentation materials for security assistance 
programs proposed for each fiscal year, a report which sets 
forth--
            [``(1) an estimate of the amount of sales expected 
        to be made to each country under sections 21 and 22 of 
        this Act, including a detailed explanation of the 
        foreign policy and United States national security 
        considerations involved in expected sales to each 
        country;
            [``(2) an estimate of the amount of credits and 
        guaranties expected to be extended to each country 
        under sections 23 and 24 of this Act;
            [``(3) a list of all findings which are in effect 
        on the date of such transmission made by the President 
        pursuant to section 3(a)(1) of this Act, together with 
        a full and complete justification for each such 
        finding, explaining how sales to each country with 
        respect to which such finding has been made will 
        strengthen the security of the United States and 
        promote world peace; and
            [``(4) an arms control impact statement for each 
        purchasing country, including (A) an analysis of the 
        relationship between expected sales to each country and 
        arms control efforts relating to that country, and (B) 
        the impact of such expected sales on the stability of 
        the region that includes the purchasing country.
    [``(b) Not later than thirty days following the receipt of 
a request made by the Committee on Foreign Relations of the 
Senate or the Committee on International Relations of the House 
of Representatives for additional information with respect to 
any estimate submitted pursuant to subsection (a), the 
President shall submit such information to such committee.
    [``(c) The President shall make every effort to submit all 
of the information required by this section wholly in 
unclassified form. In the event the President submits any such 
information in classified form, he shall submit such classified 
information in an addendum and shall also submit simultaneously 
a detailed summary, in unclassified form, of such classified 
information.''.
    [(b) Section 634(d) of the Foreign Assistance Act of 1961 
is amended by striking out ``and military sales under this or 
any other Act'' in the fourth sentence.

                     [military sales authorization

    [Sec. 210. (a) Section 31(a) of the Foreign Military Sales 
Act is amended by striking out ``not to exceed $405,000,000 for 
the fiscal year 1975'' and inserting in lieu thereof ``not to 
exceed $1,039,000,000 for the fiscal year 1976 and not to 
exceed $740,000,000 for the fiscal year 1977''.
    [(b) Section 31(b) of such Act is amended to read as 
follows:
    [``(b) The aggregate total of credits, or participations in 
credits, extended pursuant to this Act and of the principal 
amount of loans guaranteed pursuant to section 24(a) shall not 
exceed $2,374,700,000 for the fiscal year 1976, of which not 
less than $1,500,000,000 shall be available only for Israel, 
and shall not exceed $2,022,100,000 for the fiscal year 1977, 
of which not less than $1,000,000,000 shall be available only 
for Israel.''.
    [(c)(1) Section 31 of such Act is further amended by adding 
at the end thereof the following new subsections:
    [``(c) Funds made available for the fiscal years 1976 and 
1977 under subsection (a) of this section shall be obligated to 
finance the procurement of defense articles and defense 
services by Israel on a long-term repayment basis either by the 
extension of credits, without regard to the limitations 
contained in section 23, or by the issuance of guaranties under 
section 24. Repayment shall be in not less than twenty years, 
following a grace period of ten years on repayment of 
principal. Israel shall be released from one-half of its 
contractual liability to repay the United States Government 
with respect to defense articles and defense services so 
financed for each such year.
    [``(d) The aggregate acquisition cost to the United States 
of excess defense articles ordered by the President in any 
fiscal year after fiscal year 1976 for delivery to foreign 
countries or international organizations under the authority of 
chapter 2 of part II of the Foreign Assistance Act of 1961 or 
pursuant to sales under this Act may not exceed $100,000,000 
(exclusive of ships and their on-board stores and supplies 
transferred in accordance with law).''.
    [(2) Subsections (a), (b), (c), and (e) of section 8 of the 
Act entitled ``An Act to amend the Foreign Military Sales Act 
and for other purposes'', approved January 12, 1971 (Public Law 
91-672; 84 Stat. 2053), are repealed effective July 1, 1976. 
All funds in the suspense account referred to in subsection (a) 
of such section on July 1, 1976, shall be transferred to the 
general fund of the Treasury.

[reports on commercial and governmental military exports; congressional 
                                 action

    [Sec. 211. (a) Section 36 of the Foreign Military Sales Act 
is amended to read as follows:
    [``Sec. 36. Reports on Commercial and Governmental Military 
Exports; Congressional Action.--(a) The President shall 
transmit to the Speaker of the House of Representatives and to 
the chairman of the Committee on Foreign Relations of the 
Senate not more than thirty days after the end of each quarter 
an unclassified report (except that any material which was 
transmitted in classified form under subsection (b)(1) or 
(c)(1) of this section may be contained in a classified 
addendum to such report, and any letter of offer referred to in 
paragraph (1) of this subsection may be listed in such addendum 
unless such letter of offer has been the subject of an 
unclassified certification pursuant to subsection (b)(1) of 
this section) containing--
            [``(1) a listing of all letters of offer to sell 
        any major defense equipment for $1,000,000 or more 
        under this Act to each foreign country and 
        international organization, by category, if such 
        letters of offer have not been accepted or canceled;
            [``(2) a listing of all such letters of offer that 
        have been accepted during the fiscal year in which such 
        report is submitted, together with the total value of 
        all defense articles and defense services sold to each 
        foreign country and international organization during 
        such fiscal year;
            [``(3) the cumulative dollar amounts, by foreign 
        country and international organization, of sales credit 
        agreements under section 23 and guaranty agreements 
        under section 24 made during the fiscal year in which 
        such report is submitted;
            [``(4) a numbered listing of all licenses and 
        approvals for the export to each foreign country and 
        international organization during such fiscal year of 
        commercially sold major defense equipment, by category, 
        sold for $1,000,000 or more, together with the total 
        value of all defense articles and defense services so 
        licensed for each foreign country and international 
        organization, setting forth with respect to the listed 
        major defense equipment--
                    [``(A) the items to be exported under the 
                license,
                    [``(B) the quantity and contract price of 
                each such item to be furnished, and
                    [``(C) the name and address of the ultimate 
                user of each such item;
            [``(5) projections of the dollar amounts, by 
        foreign country and international organization, of cash 
        sales expected to be made under sections 21 and 22, 
        credits to be extended under section 23, and guaranty 
        agreements to be made under section 24 in the quarter 
        of the fiscal year immediately following the quarter 
        for which such report is submitted;
            [``(6) a projection with respect to all cash sales 
        expected to be made and credits expected to be extended 
        to each country and organization for the remainder of 
        the fiscal year in which such report is transmitted;
            [``(7) an estimate of the number of officers and 
        employees of the United States Government and of United 
        States civilian contract personnel present in each such 
        country at the end of that quarter for assignments in 
        implementation of sales and commercial exports under 
        this Act; and
            [``(8) an analysis and description of the services 
        being performed by officers and employees of the United 
        States Government under section 21(a) of this Act, 
        including the number of personnel so employed.
For each letter of offer to sell under paragraphs (1) and (2), 
the report shall specify (i) the foreign country or 
international organization to which the defense article or 
service is offered or was sold, as the case may be; (ii) the 
dollar amount of the offer to sell or the sale and the number 
of defense articles offered or sold, as the case may be; (iii) 
a description of the defense article or service offered or 
sold, as the case may be; and (iv) the United States Armed 
Force or other agency of the United States which is making the 
offer to sell or the sale, as the case may be.
    [``(b)(1) In the case of any letter of offer to sell any 
defense articles or services under this Act for $25,000,000 or 
more, or any major defense equipment for $7,000,000 or more, 
before such letter of offer is issued, the President shall 
submit to the Speaker of the House of Representatives and to 
the chairman of the Committee on Foreign Relations of the 
Senate a numbered certification with respect to such offer to 
sell containing the information specified in clauses (i) 
through (iv) of subsection (a). In addition, the President 
shall, upon the request of such committee or the Committee on 
International Relations of the House of Representatives, 
transmit promptly to both such committees a statement setting 
forth, to the extent specified in such request--
            [``(A) a detailed description of the defense 
        articles or services to be offered including a brief 
        description of the capabilities of any defense article 
        to be offered;
            [``(B) an estimate of the number of officers and 
        employees of the United States Government and of United 
        States civilian contract personnel expected to be 
        needed in such country to carry out the proposed sale;
            [``(C) the name of each contractor expected to 
        provide the defense article or defense service proposed 
        to be sold (if known on the date of transmittal of such 
        statement);
            [``(D) an analysis of the arms control impact 
        pertinent to such offer to sell, prepared in 
        consultation with the Secretary of Defense;
            [``(E) the reasons why the foreign country or 
        international organization to which the sale is 
        proposed to be made needs the defense articles or 
        services which are the subject of such sale and a 
        description of how such country or organization intends 
        to use such defense articles or services;
            [``(F) an analysis by the President of the impact 
        of the proposed sale on the military stocks and the 
        military preparedness of the United States;
            [``(G) the reasons why the proposed sale is in the 
        national interest of the United States;
            [``(H) an analysis by the President of the impact 
        of the proposed sale on the military capabilities of 
        the foreign country or international organization to 
        which such sale would be made;
            [``(I) an analysis by the President of how the 
        proposed sale would affect the relative military 
        strengths of countries in the region to which the 
        defense articles or services which are the subject of 
        such sale would be delivered and whether other 
        countries in the region have comparable kinds and 
        amounts of defense articles or services;
            [``(J) an estimate of the levels of trained 
        personnel and maintenance facilities of the foreign 
        country or international organization to which the sale 
        would be made which are needed and available to utilize 
        effectively the defense articles or services proposed 
        to be sold;
            [``(K) an analysis of the extent to which 
        comparable kinds and amounts of defense articles or 
        services are available from other countries;
            [``(L) an analysis of the impact of the proposed 
        sale on United States relations with the countries in 
        the region to which the defense articles or services 
        which are the subject of such sale would be delivered; 
        and
            [``(M) a detailed description of any agreement 
        proposed to be entered into by the United States for 
        the purchase or acquisition by the United States of 
        defense articles, services, or equipment, or other 
        articles, services, or equipment of the foreign country 
        or international organization in connection with, or as 
        consideration for, such letter of offer, including an 
        analysis of the impact of such proposed agreement upon 
        United States business concerns which might otherwise 
        have provided such articles, services, or equipment to 
        the United States, an estimate of the costs to be 
        incurred by the United States in connection with such 
        agreement compared with costs which would otherwise 
        have been incurred, an estimate of the economic impact 
        and unemployment which would result from entering into 
        such proposed agreement, and an analysis of whether 
        such costs and such domestic economic impact justify 
        entering into such proposed agreement.
A certification transmitted pursuant to this subsection shall 
be unclassified, except that the information specified in 
clause (ii) and the details of the description specified in 
clause (iii) of subsection (a) may be classified if the public 
disclosure thereof would be clearly detrimental to the security 
of the United States. The letter of offer shall not be issued 
if the Congress, within thirty calendar days after receiving 
such certification, adopts a concurrent resolution stating that 
it objects to the proposed sale, unless the President states in 
his certification that an emergency exists which requires such 
sale in the national security interests of the United States.
    [``(2) Any such resolution shall be considered in the 
Senate in accordance with the provisions of section 601(b) of 
the International Security Assistance and Arms Export Control 
Act of 1976.
    [``(3) For the purpose of expediting the consideration and 
adoption of concurrent resolutions under this subsection, a 
motion to proceed to the consideration of any such resolution 
after it has been reported by the appropriate committee shall 
be treated as highly privileged in the House of 
Representatives.
    [``(c) In the case of an application by a person (other 
than with regard to a sale under section 21 or section 22 of 
this Act) for a license for the export of any major defense 
equipment sold under a contract in the amount of $7,000,000 or 
more or of defense articles or defense services sold under a 
contract in the amount of $25,000,000 or more, not less than 30 
days before issuing such license the President shall transmit 
to the Speaker of the House of Representatives and to the 
chairman of the Committee on Foreign Relations of the Senate an 
unclassified numbered certification with respect to such 
application specifying (1) the foreign country or international 
organization to which such export will be made, (2) the dollar 
amount of the items to be exported, and (3) a description of 
the items to be exported. In addition, the President shall, 
upon the request of such committee or the Committee on 
International Relations of the House of Representatives, 
transmit promptly to both such committees a statement setting 
forth, to the extent specified in such request, a description 
of the capabilities of the items to be exported, an estimate of 
the total number of United States personnel expected to be 
needed in the foreign country concerned in connection with the 
items to be exported and an analysis of the arms control impact 
pertinent to such application, prepared in consultation with 
the Secretary of Defense. A certification transmitted pursuant 
to this subsection shall be unclassified, except that the 
information specified in paragraph (2) and the details of the 
description specified in paragraph (3) may be classified if the 
public disclosure thereof would be clearly detrimental to the 
security of the United States.
    [``(d) In the case of an approval under section 38 of this 
Act of a United States commercial technical assistance or 
manufacturing licensing agreement for or in a country not a 
member of the North Atlantic Treaty Organization which involves 
the manufacture abroad of any item of significant combat 
equipment on the United States Munitions List, before such 
approval is given, the President shall submit a certification 
with respect to such proposed commercial agreement in a manner 
similar to the certification required under subsection (c) 
containing comparable information, except that the last 
sentence of such subsection shall not apply to certifications 
submitted pursuant to this subsection.''.
    [(b) The amendment made by subsection (a) of this section 
shall apply with respect to letters of offer for which a 
certification is transmitted pursuant to section 36(b) of the 
Arms Export Control Act on or after the date of enactment of 
this Act and to export licenses for which an application is 
filed under section 38 of such Act on or after such date.

     [control of licenses with respect to arms exports and imports

    [Sec. 212. (a)(1) Chapter 3 of the Foreign Military Sales 
Act is amended by adding at the end thereof the following new 
section:
    [``Sec. 38. Control of Arms Exports and Imports.--(a)(1) In 
furtherance of world peace and the security and foreign policy 
of the United States, the President is authorized to control 
the import and the export of defense articles and defense 
services and to provide foreign policy guidance to persons of 
the United States involved in the export and import of such 
articles and services. The President is authorized to designate 
those items which shall be considered as defense articles and 
defense services for the purposes of this section and to 
promulgate regulations for the import and export of such 
articles and services. The items so designated shall constitute 
the United States Munitions List.
    [``(2) Decision on issuing export licenses under this 
section shall be made in coordination with the Director of the 
United States Arms Control and Disarmament Agency and shall 
take into account the Director's opinion as to whether the 
export of an article will contribute to an arms race, increase 
the possibility of outbreak or escalation of conflict, or 
prejudice the development of bilateral or multilateral arms 
control arrangements.
    [``(b)(1) As prescribed in regulations issued under this 
section, every person (other than an officer or employee of the 
United States Government acting in an official capacity) who 
engages in the business of manufacturing, exporting, or 
importing any defense articles or defense services designated 
by the President under subsection (a)(1) shall register with 
the United States Government agency charged with the 
administration of this section, and shall pay a registration 
fee which shall be prescribed by such regulations, Such 
regulations shall prohibit the return to the United States for 
sale in the United States (other than for the Armed Forces of 
the United States and its allies or for any State or local law 
enforcement) of any mili8tary firearms or ammunition of United 
States manufacture furnished to foreign governments by the 
United States under this Act or any other foreign assistance or 
sales program of the United States, whether or not enhanced in 
value or improved in condition in a foreign country. This 
prohibition shall not extend to similar firearms that have been 
so substantially transformed as to become, in effect, articles 
of foreign manufacture.
    [``(2) Except as otherwise specifically provided in 
regulations issued under subsection (a)(1), no defense articles 
or defense services designated by the President under 
subsection (a)(1) may be exported or imported without a license 
for such export or import, issued in accordance with this Act 
and regulations issued under this Act, except that no license 
shall be required for exports or imports made by or for an 
agency of the United States Government (A) for official use by 
a department or agency of the United States Government or (B) 
for carrying out any foreign assistance or sales program 
authorized by law and subject to the control of the President 
by other means.
    [``(3) No license may be issued under this Act for the 
export of any major defense equipment sold under a contract in 
the amount of $25,000,000 or more to any foreign country which 
is not a member of the North Atlantic Treaty Organization 
unless such major defense equipment was sold under this Act.
    [``(c) Any person who willfully violates any provision of 
this section or section 39, or any rule or regulation issued 
under either section, or who willfully, in a registration or 
license application or required report, makes any untrue 
statement of a material fact or omits to state a material fact 
required to be stated therein or necessary to make the 
statements therein not misleading, shall upon conviction be 
fined not more than $100,000 or imprisoned not more than two 
years, or both.
    [``(d) This section applies to and within the Canal Zone.
    [``(e) In carrying out functions under this section with 
respect to the export of defense articles and defense services, 
the President is authorized to exercise the same powers 
concerning violations and enforcement which are conferred upon 
departments, agencies officials by sections 6 (c), (d), (e), 
and (f) and 7 (a) and (c) of the Export Administration Act of 
1969, subject to the same terms and conditions as are 
applicable to such powers under such Act. Nothing in this 
subsection shall be construed as authorizing the withholding of 
information from the Congress.''.
    [(2) Section 2(b) of Foreign Military Sales Act is 
amended--
            [(A) by inserting ``and exports'' immediately after 
        ``sales'' both times it appears; and
            [(B) by inserting ``and whether there shall be 
        delivery or other performance under such sale or 
        export,'' immediately after ``thereof,''.]
          * * * * * * *

         [cancellation and suspension of licenses and contracts

    [Sec. 213. Section 42 of the Foreign Military Sales Act is 
amended by adding at the end thereof the following new 
subsection:
    [``(e)(1) Each contract for sale entered into under 
sections 21 and 22 of this Act shall provide that such contract 
may be canceled in whole or in part, or its execution 
suspended, by the United States at any time under unusual or 
compelling circumstances if the national interest so requires.
    [``(2)(A) Each export license issued under section 38 of 
this Act shall provide that such license may be revoked, 
suspended, or amended by the Secretary of State, without prior 
notice, whenever the Secretary deems such action to be 
advisable.
    [``(B) Nothing in this paragraph may be construed as 
limiting the regulatory authority of the President under this 
Act.
    [``(3) There are authorized to be appropriated from time to 
time such sums as may be necessary (A) to refund moneys 
received from purchasers under contracts of sale entered into 
under sections 21 and 22 of this Act that are canceled or 
suspended under this subsection to the extent such moneys have 
previously been disbursed to private contractors and United 
States Government agencies for work in progress, and (B) to pay 
such damages and costs that accrue from the corresponding 
cancellation or suspension of the existing procurement 
contracts or United States Government agency work orders 
involved.''.

                        [administrative expenses

    [Sec. 214. Section 43 of the Foreign Military Sales Act is 
amended by designating the present section as subsection (a) 
and by adding at the end thereof the following new subsection:
    [``(b) Administrative expenses incurred by any department 
or agency of the United States Government (including any 
mission or group) in carrying out functions under this Act 
which are primarily for the benefit of any foreign country 
shall be fully reimbursed from amounts received for sales under 
sections 21 and 22.''.

                              [definitions

    [Sec. 215. Section 47 of the Foreign Military Sales Act is 
amended--
            [(1) by striking out ``and'' at the end of 
        paragraph (1);
            [(2) by striking out the period at the end of 
        paragraph (2) and inserting in lieu thereof a 
        semicolon; and
            [(3) by adding immediately after paragraph (2) the 
        following new paragraphs:
    [``(3) `defense article', except as provided in paragraph 
(7) of this section, includes--
            [``(A) any weapon, weapons system, munition, 
        aircraft, vessel, boat, or other implement of war,
            [``(B) any property, installation, commodity, 
        material, equipment, supply, or goods used for the 
        purpose of making military sales,
            [``(C) any machinery, facility, tool, material, 
        supply, or other item necessary for the manufacture, 
        production, processing, repair, servicing, storage, 
        construction, transportation, operation, or use of any 
        article listed in this paragraph, and
            [``(D) any component or part of any article listed 
        in this paragraph,
but does not include merchant vessels or (as defined by the 
Atomic Energy Act of 1954) source material, byproduct material, 
special nuclear material, production facilities, utilization 
facilities, or atomic weapons or articles involving Restricted 
Data;
    [``(4) `defense service', except as provided in paragraph 
(7) of this section, includes any service, test, inspection, 
repair, training, publication, technical or other assistance, 
or defense information (as defined in section 644(e) of the 
Foreign Assistance Act of 1961), used for the purposes of 
making military sales;
    [``(5) `training' included formal or informal instruction 
of foreign students in the United States or overseas by 
officers or employees of the United States, contract 
technicians, or contractors (including instruction at civilian 
institutions), or by correspondence courses, technical, 
educational, or information publications and media of all 
kinds, training aid, orientation, training exercise, and 
military advice to foreign military units and forces;
    [``(6) `major defense equipment' means any item of 
significant combat equipment on the United States Munitions 
List having a nonrecurring research and development cost of 
more than $50,000,000 or a total production cost of more than 
$200,000,000; and
    [``(7) `defense articles and defense services' means, with 
respect to commercial exports subject to the provisions of 
section 38 of this Act, those items designated by the President 
pursuant to subsection (a)(1) of such section.''.

                      [annual foreign sales report

    [Sec. 216. Section 657 of the Foreign Assistance Act of 
1961 is amended as follows:
            [(1) The section caption is amended by inserting 
        ``and Military Exports'' after ``Foreign Assistance''.
            [(2) Paragraph (1) of subsection (a) is amended to 
        read as follows:
            [``(1) the aggregate dollar value of all foreign 
        assistance (including military education and training), 
        foreign military sales, sales credits, and guaranties 
        provided or made by the United States Government by any 
        means to all foreign countries and international 
        organizations, and the aggregate dollar value of such 
        assistance, sales, sales credits, and guaranties, by 
        category, provided or made by the United States 
        Government to or for each such country or organization 
        during that fiscal year;''.
            [(3) Paragraph (3) of subsection (a) is amended to 
        read as follows:
            [``(3) the aggregate dollar value and quantity of 
        defense articles and defense services, and of military 
        education and training, exported to each foreign 
        country and international organization, by category, 
        specifying whether the export was made by grant under 
        chapter 2 or chapter 5 of part II of this Act, by sale 
        under chapter 2 of the Arms Export Control Act, by 
        commercial sale licensed under chapter 3 of that Act, 
        or by other authority; and''.
            [(4) Paragraph (4) of subsection (a) is repealed.
            [(5) Paragraph (5) of subsection (a) is amended--
                    [(A) by redesignating such paragraph as 
                paragraph (4), and
                    [(B) by striking out ``(4)'' and inserting 
                in lieu thereof ``(3)''.

                    [TITLE III--GENERAL LIMITATIONS

                             [human rights

    [Sec. 301. (a) Section 502B of the Foreign Assistance Act 
of 1961 is amended to read as follows:
    [``Sec. 502B. Human Rights.--(a)(1) It is the policy of the 
United States in accordance with its international obligations 
as set forth in the Charter of the United Nations and in 
keeping with the constitutional heritage and traditions of the 
United States, to promote and encourage increased respect for 
human rights and fundamental freedoms for all without 
distinction as to race, sex, language, or religion. To this 
end, a principal goal of the foreign policy of the United 
States is to promote the increased observance of 
internationally recognized human rights by all countries.
    [``(2) It is further the policy of the United States that, 
except under circumstances specified in this section, no 
security assistance may be provided to any country the 
government of which engages in a consistent pattern of gross 
violations of internationally recognized human rights.
    [``(3) In furtherance of the foregoing policy the President 
is directed to formulate and conduct international security 
assistance programs of the United States in a manner which will 
promote and advance human rights and avoid identification of 
the United States, through such programs, with governments 
which deny to their people internationally recognized human 
rights and fundamental freedoms, in violation of international 
law or in contravention of the policy of the United States as 
expressed in this section or otherwise.
    [``(b) The Secretary of State shall transmit to the 
Congress, as part of the presentation materials for security 
assistance programs proposed for each fiscal year, a full and 
complete report, prepared with the assistance of the 
Coordinator for Human Rights and Humanitarian Affairs, with 
respect to practices regarding the observance of and respect 
for internationally recognized human rights in each country 
proposed as a recipient of security assistance. In determining 
whether a government falls within the provisions of subsection 
(a)(3) and in the preparation of any report or statement 
required under this section, consideration shall be given to--
            [``(1) the relevant findings of appropriate 
        international organizations, including nongovernmental 
        organizations, such as the International Committee of 
        the Red Cross; and
            [``(2) the extent of cooperation by such government 
        in permitting an unimpeded investigation by any such 
        organization of alleged violations of internationally 
        recognized human rights.
    [``(c)(1) Upon the request of the Senate or the House of 
Representatives by resolution of either such House, or upon the 
request of the Committee on Foreign Relations of the Senate or 
the Committee on International Relations of the House of 
Representatives, the Secretary of State shall, within thirty 
days after receipt of such request, transmit to both such 
committees a statement, prepared with the assistance of the 
Coordinator for Human Rights and Humanitarian Affairs, with 
respect to the country designated in such request, setting 
forth--
            [``(A) all the available information about 
        observance of and respect for human rights and 
        fundamental freedom in that country, and a detailed 
        description of practices by the recipient government 
        with respect thereto;
            [``(B) the steps the United States has taken to--
                    [``(i) promote respect for and observance 
                of human rights in that country and discourage 
                any practices which are inimical to 
                internationally recognized human rights, and
                    [``(ii) publicly or privately call 
                attention to, and disassociate the United 
                States and any security assistance provided for 
                such country from, such practices;
            [``(C) whether, in the opinion of the Secretary of 
        State, notwithstanding any such practices--
                    [``(i) extraordinary circumstances exist 
                which necessitate a continuation of security 
                assistance for such country, and, if so, a 
                description of such circumstances and the 
                extent to which such assistance should be 
                continued (subject to such conditions as 
                Congress may impose under this section), and
                    [``(ii) on all the facts it is in the 
                national interest of the United States to 
                provide such assistance; and
            [``(D) such other information as such committee or 
        such House may request.
    [``(2)(A) A resolution of request under paragraph (1) of 
this subsection shall be considered in the Senate in accordance 
with the provisions of section 601(b) of the International 
Security Assistance and Arms Export Control Act of 1976.
    [``(B) The term `certification', as used in section 601 of 
such Act, means, for the purpose of this subsection, a 
resolution of request of the Senate under paragraph (1) of this 
subsection.
    [``(3) In the event a statement with respect to a country 
is requested pursuant to parargaph (1) of this subsection but 
is not transmitted in accordance therewith within thirty days 
after receipt of such request, no security assistance shall be 
delivered to such country except as may thereafter be 
specifically authorized by law from such country unless and 
until such statement is transmitted.
    [``(4)(A) In the event a statement with respect to a 
country is transmitted under paragraph (1) of this subsection, 
the Congress may at any time thereafter adopt a joint 
resolution terminating, restricting, or continuing security 
assistance for such country. In the event such a joint 
resolution is adopted, such assistance shall be so terminated, 
so restricted, or so continued, as the case may be.
    [``(B) Any such resolution shall be considered in the 
Senate in accordance with the provisions of section 601(b) of 
the International Security Assistance and Arms Export Control 
Act of 1976.
    [``(C) The term `certification', as used in section 601 of 
such Act, means, for the purposes of this paragraph, a 
statement transmitted under paragraph (1) of this subsection.
    [``(d) For the purposes of this section--
            [``(1) the term `gross violations of 
        internationally recognized human rights' includes 
        torture or cruel, inhuman, or degrading treatment or 
        punishment, prolonged detention without charges and 
        trial, and other flagrant dental of the right to life, 
        liberty, or the security of person; and
            [``(2) the term `security assistance' means--
                    [``(A) assistance under chapter 2 (military 
                assistance) or chapter 4 (security supporting 
                assistance) or chapter 5 (military education 
                and training) of this part VI (assistance to 
                the Middle East) of this Act;
                    [``(B) sales of defsne articles or 
                services, extensions of credits (including 
                participations in credits, and guaranties of 
                loans under the Arms Export Control Act; or
                    [``(C) any license in effect with respect 
                to the export of defense articles or defense 
                services to or for the armed forces, police, 
                intelligence, or other internal security forces 
                of a foreign country under section 38 of the 
                Arms Export Control Acts.''.
    [(b) Section 624 of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
subsection:
    [``(f)(1) There is established in the Department of State a 
Coordinator for Human Rights and Humanitarian Affairs. The 
Coordinator for Human Rights and Humanitarian Affairs. The 
Coordinator shall be appointed by the President with the advice 
and consent of the Senate. He shall be responsible to the 
Secretary of State for matters pertaining to human rights and 
humanitarian affairs (including matters relating to refugees, 
prisoners of war, and members of the United States Armed Forces 
missing in action) in the conduct of foreign policy. The 
Secretary of State shall carry out his responsibility under 
section 502B of this Act through the Coordinator for Human 
Rights and Humanitarian Affairs.
    [``(2) The Coordinator for Human Rights and Humanitarian 
Affairs shall maintain continuous observation and review of all 
matters pertaining to human rights and humanitarian affairs 
(including matters relating to refugees, prisoners of war, and 
members of the United States Armed Forces missing in action) in 
the conduct of foreign policy including--
            [``(A) gathering detailed information regarding 
        humanitarian affairs and the observance of and respect 
        for internationally recognized human rights in each 
        country to which requirements of sections 116 and 502B 
        of this Act are relevant;
            [``(B) preparing the statements and reports to 
        Congress required under section 502B of this Act;
            [``(C) making recommendations to the Secretary of 
        State and the Administrator of the Agency for 
        International Development regarding compliance with 
        sections 116 and 502B of this Act; and
            [``(D) performing other responsibilities which 
        serve to promote increased observance of 
        internationally recognized human rights by all 
        countries.''.

                  [prohibition against discrimination

    [Sec. 302. (a) Section 505 of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
subsection:
    [``(g)(1) It is the policy of the United States that no 
assistance under this chapter should be furnished to any 
foreign country, the laws, regulations, official policies, or 
governmental practices of which prevent any United States 
person (as defined in section 7701(a)(30) of the Internal 
Revenue Code of 1954) from participating in the furnishing of 
defense articles or defense services under this chapter on the 
basis of race, religion, national origin, or sex.
    [``(2)(A) No agency performing functions under this chapter 
shall, in employing or assigning personnel to participate in 
the performance of any such function, whether in the United 
States or abroad, take into account the exclusionary policies 
or practices of any foreign government where such policies or 
practices are based upon race, religion, national origin, or 
sex.
    [``(B) Each contract entered into by any such agency for 
the performance of any function under this chapter shall 
contain a provision to the effect that no person, partnership, 
corporation, or other entity performing functions pursuant to 
such contract, shall, in employing or assigning personnel to 
participate in the performance of any such function, whether in 
the United States or abroad, take into account the exclusionary 
policies or practices of any foreign government where such 
policies or practices are based upon race, religion, national 
origin, or sex.
    [``(3) The President shall promptly transmit reports to the 
Speaker of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate concerning any 
transaction in which any United States person (as defined in 
section 7701(a)(30) of the Internal Revenue Code of 1954) is 
prevented by a foreign government on the basis of race, 
religion, national origin, or sex, from participating in the 
furnishing of assistance under this chapter, or education and 
training under chapter 5, to any foreign country. Such reports 
shall include (A) a description of the facts and circumstances 
of any such discrimination, (B) the response thereto on the 
part of the United States or any agency or employee thereof, 
and (C) the result of such response, if any.
    [``(4)(A) Upon the request of the Committee on Foreign 
Relations of the Senate or the Committee on International 
Relations of the House of Representatives, the President shall, 
within 60 days after receipt of such request, transmit to both 
such committees a statement, prepared with the assistance of 
the Coordinator for Human Rights and Humanitarian Affairs, with 
respect to the country designed in such request, setting 
forth--
            [``(i) all the available information about the 
        exclusionary policies or practices of the government of 
        such country when such policies or practices are based 
        upon race, religion, national origin, or sex and 
        prevent any such person from participating in a 
        transaction involving the furnishing of any assistance 
        under this chapter or any education and training under 
        chapter 5;
            [``(ii) the response of the United States thereto 
        and the results of such response;
            [``(iii) whether, in the opinion of the President, 
        notwithstanding any such policies or practices--
                    [``(I) extraordinary circumstances exist 
                which necessitate a continuation of such 
                assistance or education and training 
                transaction, and, if so, a description of such 
                circumstances and the extent to which such 
                assistance or education and training 
                transaction should be continued (subject to 
                such conditions as Congress may impose under 
                this section), and
                    [``(II) on all the facts it is in the 
                national interest of the United States to 
                continue such assistance or education and 
                training transaction; and
            [``(iv) such other information as such committee 
        may request.
    [``(B) In the event a statement with respect to an 
assistance or training transaction is requested pursuant to 
subparagraph (A) of this paragraph but is not transmitted to 
accordance therewith within 60 days after receipt of such 
request, such assistance or training transaction shall be 
suspended unless and until such statement is transmitted.
    [``(C)(i) In the event a statement with respect to an 
assistance or training transaction is transmitted under 
subparagraph (A) of this paragraph, the Congress may at any 
time thereafter adopt a joint resolution terminating or 
restricting such assistance or training transaction.
    [``(ii) Any such resolution shall be considered in the 
Senate in accordance with the provisions of section 601(b) of 
the International Security Assistance and Arms Export Control 
Act of 1976.
    [``(iii) The term `certification', as used in section 601 
of such Act, means, for the purposes of this paragraph, a 
statement transmitted under subparagraph (A) of this 
paragraph.''.
    [(b) Chapter 1 of the Foreign Military Sales Act is amended 
by adding at the end thereof the following new section:
    [``Sec. 5. Prohibition Against Discrimination.--(a) It is 
the policy of the United States that no sales should be made, 
and no credits (including participations in credits) or 
guaranties extended to or for any foreign country, the laws, 
regulations, official policies, or governmental practices of 
which prevent any United States person (as defined in section 
7701(a)(30) of the Internal Revenue Code of 1954) from 
participating in the furnishing of defense articles or defense 
services under this Act on the basis of race, religion, 
national origin, or sex.
    [``(b)(1) No agency performing functions under this Act 
shall, in employing or assigning personnel to participate in 
the performance of any such function, whether in the United 
States or abroad, take into account the exclusionary policies 
or practices of any foreign government where such policies or 
practices are based upon race, religion, national origin, or 
sex.
    [``(2) Each contract entered into by any such agency for 
the performance of any function under this Act shall contain a 
provision to the effect that no person, partnership, 
corporation, or other entity performing functions pursuant to 
such contract, shall, in employing or assigning personnel to 
participate in the performance of any such function, whether in 
the United States or abroad, take into account the exclusionary 
policies or practices of any foreign government where such 
policies or practices are based upon race, religion, national 
origin, or sex.
    [``(c) The President shall promptly transmit reports to the 
Speaker of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate concerning any 
instance in which any United States person (as defined in 
section 7701(a)(30) of the Internal Revenue Code of 1954) is 
prevented by a foreign government on the basis of race, 
religion, national origin, or sex, from participating in the 
performance of any sale or licensed transaction under this Act. 
Such reports shall include (1) a description of the facts and 
circumstances of any such discrimination, (2) the response 
thereto on the part of the United States or any agency or 
employee thereof, and (3) the result of such response, if any.
    [``(d)(1) Upon the request of the Committee on Foreign 
Relations of the Senate or the Committee on International 
Relations of the House of Representatives, the President shall, 
within 60 days after receipt of such request, transmit to both 
such committees a statement, prepared with the assistance of 
the Coordinator for Human Rights and Humanitarian Affairs, with 
respect to the country designated in such request, setting 
forth--
            [``(A) all the available information about the 
        exclusionary policies or practices of the government of 
        such country when such policies or practices are based 
        upon race, religion, national origin or sex and prevent 
        any such person from participating in the performance 
        of any sale or licensed transaction under this Act;
            [``(B) the response of the United States thereto 
        and the results of such response;
            [``(C) whether, in the opinion of the President, 
        notwithstanding any such policies or practices--
                    [``(i) extraordinary circumstances exist 
                which necessitate a continuation of such sale 
                or licensed transaction, and, if so, a 
                description of such circumstances and the 
                extent to which such sale or licensed 
                transaction should be continued (subject to 
                such conditions as Congress may impose under 
                this section), and
                    [``(ii) on all the facts it is in the 
                national interest of the United States to 
                continue such sale or licensed transaction; and
            [``(D) such other information as such committee may 
        request.
    [``(2) In the event a statement with respect to a sale or 
licensed transaction is requested pursuant to paragraph (1) of 
this subsection but is not transmitted in accordance therewith 
within 60 days after receipt of such request, such sale or 
licensed transaction shall be suspended unless and until such 
statement is transmitted.
    [``(3)(A) In the event a statement with respect to a sale 
or licensed transaction is transmitted under paragraph (1) of 
this subsection, the Congress may at any time thereafter adopt 
a joint resolution terminating or restricting such sale or 
licensed transaction.
    [``(B) Any such resolution shall be considered in the 
Senate in accordance with the provisions of section 601(b) of 
the International Security Assistance and Arms Export Control 
Act of 1976.
    [``(C) The term `certification', as used in section 601 of 
such Act, means, for the purposes of this paragraph, a 
statement transmitted under paragraph (1) of this 
subsection.''.

     [prohibition of assistance to countries granting sanctuary to 
                        international terrorists

    [Sec. 303. Chapter 1 of part III of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 620A. Prohibition Against Furnishing Assistance to 
Countries Which Grant Sanctuary to International Terrorists.--
(a) Except where the President finds national security to 
require otherwise, the President shall terminate all assistance 
under this Act to any government which aids or abets, by 
granting sanctuary from prosecution to, any individual or group 
which has committed an act of international terrorism and the 
President may not thereafter furnish assistance to such 
government until the end of the one year period beginning on 
the date of such termination, except that if during its period 
of ineligibility for assistance under this section such 
government aids or abets, by granting sanctuary from 
prosecution to, any other individual or group which has 
committed an act of international terrorism, such government's 
period of ineligibility shall be extended for an additional 
year for each such individual or group.
    [``(b) If the President finds that national security 
justifies a continuation of assistance to any government 
described in subsection (a), he shall report such finding to 
the Speaker of the House of Representatives and the Committee 
on Foreign Relations of the Senate.''.

                             [ineligibility

    [Sec. 304. (a) Section 505(d) of the Foreign Assistance Act 
of 1961 is amended to read as follows:
    [``(d)(1) Assistance and deliveries of assistance under 
this chapter to any country shall be terminated as hereinafter 
provided, if such country uses defense articles or defense 
services furnished under this Act, the Mutual Security Act of 
1954, or any predecessor Foreign Assistance Act, in substantial 
violation (either in terms of quantities or in terms of the 
gravity of the consequences regardless of the quantities 
involved) or any agreement entered into pursuant to any such 
Act (A) by using such articles or services for a purpose not 
authorized under section 502 or, if such agreement provides 
that such articles or services may only be used for purposes 
more limited than those authorized under section 502, for a 
purpose not authorized under such agreement; (B) by 
transferring such articles or services to, or permitting any 
use of such articles or services by, anyone not an officer, 
employee, or agent of the recipient country without the consent 
of the President; or (C) by failing to maintain the security of 
such articles or services.
    [``(2)(A) Assistance and deliveries of assistance shall be 
terminated pursuant to paragraph (1) of this subsection if the 
President so determines and so states in writing to the 
Congress, or if the Congress so finds by joint resolution.
    [``(B) The President shall report to the Congress promptly 
upon the receipt of information that a violation described in 
paragraph (1) of this subsection may have occurred.
    [``(3) Assistance to a country shall remain terminated in 
accordance with paragraph (1) of this subsection until such 
time as--
            [``(A) the President determines that the violation 
        has ceased; and
            [``(B) the country concerned has given assurances 
        satisfactory to the President that such violation will 
        not recur.
    [``(4) The authority contained in section 614(a) of this 
Act may not be used to waive the provisions of this section 
with respect to further assistance under this chapter.''.
    [(b)(1) Section 3(c) of the Foreign Military Sales Act is 
amended to read as follows:
    [``(c)(1)(A) No credits (including participations in 
credits) may be issued and no guaranties may be extended for 
any foreign country under this Act as hereinafter provided, if 
such country uses defense articles or defense services 
furnished under this Act, or any predecessor Act, in 
substantial violation (either in terms of quantities or in 
terms of the gravity of the consequences regardless of the 
quantities involved) of any agreement entered into pursuant to 
any such Act (i) by using such articles or services for a 
purpose not authorized under section 4 or, if such agreement 
provides that such articles or services may only be used for 
purposes more limited than those authorized under section 4 for 
a purpose not authorized under such agreement; (ii) by 
transferring such articles or services to, or permitting any 
use of such articles or services by, anyone not an officer, 
employee, or agent of the recipient country without the consent 
of the President; or (iii) by failing to maintain the security 
of such articles or services.
    [``(B) No cash sales or deliveries pursuant to previous 
sales may be made with respect to any foreign country under 
this Act as hereinafter provided, if such country uses defense 
articles or defense services furnished under this Act, or any 
predecessor Act, in substantial violation (either in terms of 
quantity or in terms of the gravity of the consequences 
regardless of the quantities involved) of any agreement entered 
into pursuant to any such Act by using such articles or 
services for a purpose not authorized under section 4 or, if 
such agreement provides that such articles or services may only 
be used for purposes more limited than those authorized under 
section 4, for a purpose not authorized under such agreement.
    [``(2) The President shall report to the Congress promptly 
upon the receipt of information that a violation described in 
paragraph (1) of this subsection may have occurred.
    [``(3)(A) A country shall be deemed to be ineligible under 
subparagraph (A) of paragraph (1) of this subsection, or both 
subparagraphs (A) and (B) of such paragraph in the case of a 
violation described in both such paragraphs, if the President 
so determines and so reports in writing to the Congress, or if 
the Congress so determines by joint resolution.
    [``(B) Notwithstanding a determination by the President of 
ineligibility under subparagraph (B) of paragraph (1) of this 
subsection, cash sales and deliveries pursuant to previous 
sales may be made if the President certifies in writing to the 
Congress that a termination thereof would have significant 
adverse impact on United States security, unless the Congress 
adopts or has adopted a joint resolution pursuant to 
subparagraph (A) of this paragraph with respect to such 
ineligibility.
    [``(4) A country shall remain ineligible in accordance with 
paragraph (1) of this subsection until such time as--
            [``(A) the President determines that the violation 
        has ceased; and
            [``(B) the country concerned has given assurances 
        satisfactory to the President that such violation will 
        not recur.''.
    [(2) Section 3(d) of the Foreign Military Sales Act is 
repealed and subsections (e) and (f) of such section, as added 
by section 204 of this Act, are redesignated as subsections (d) 
and (e), respectively.

                           [nuclear transfers

    [Sec. 305. Chapter 3 of part III of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 669. Nuclear Transfers.--(a) Except as provided in 
subsection (b), no funds authorized to be appropriated by this 
Act or the Arms Export Control Act may be used for the purpose 
of--
            [``(1) providing economic assistance;
            [``(2) providing military or security supporting 
        assistance or grant military education and training; or
            [``(3) extending military credits or making 
        guarantees; to any country which--
                    [``(A) delivers nuclear reprocessing or 
                enrichment equipment, materials, or technology 
                to any other country; or
                    [``(B) receives such equipment, materials 
                or technology from any other country; unless 
                before such delivery--
                            [``(i) the supplying country and 
                        receiving country have reached 
                        agreement to place all such equipment, 
                        materials, and technology, upon 
                        delivery, under multilateral auspices 
                        and management when available; and
                            [``(ii) the recipient country has 
                        entered into an agreement with the 
                        International Atomic Energy Agency to 
                        place all such equipment, materials, 
                        technology, and all nuclear fuel and 
                        facilities in such country under the 
                        safeguards system of such Agency.
    [``(b)(1) Notwithstanding the provisions of subsection (a) 
of this section, the President may, by Executive order 
effective not less than 30 days following its date of 
promulgation, furnish assistance which would otherwise be 
prohibited under paragraph (1), (2), or (3) of such subsection 
if he determines and certifies in writing to the Speaker of the 
House of Representatives and the Committee on Foreign Relations 
of the Senate that--
            [``(A) the termination of such assistance would 
        have a serious adverse effect on vital United States 
        interests; and
            [``(B) he has received reliable assurances that the 
        country in question will not acquire or develop nuclear 
        weapons or assist other nations in doing so.
Such certification shall set forth the reasons supporting such 
determination in each particular case.
    [``(2)(A) The Congress may by joint resolution terminate or 
restrict assistance described in paragraphs (1) through (3) of 
subsection (a) with respect to a country to which the 
prohibition in such subsection applies or take any other action 
with respect to such assistance for such country as it deems 
appropriate.
    [``(B) Any such joint resolution with respect to a country 
shall, if introduced within 30 days after the transmittal of a 
certification under paragraph (1) with respect to such country, 
be considered in the Senate in accordance with the provisions 
of section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.''.

    [TITLE IV--PROVISIONS RELATING TO SPECIFIC REGIONS OR COUNTRIES

                     [middle east policy statement

    [Sec. 401. Section 901 of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
paragraph:
    [``It is the sense of Congress that the United States will 
continue to determine Middle East Policy as circumstances may 
require and that the authority contained in the joint 
resolution entitled `Joint resolution to implement the United 
States proposal for the early-warning system in Sinai', 
approved October 13, 1975 (Public Law 94-110), and the 
authorizations contained in the amendments made by the 
International Security Assistance and Arms Export Control Act 
of 1976 do not, and shall not in any way be construed to, 
constitute congressional approval, acceptance, or endorsement 
(1) of any oral or written commitment, understanding, 
assurance, promise, or agreement, whether expressed or implied, 
or any other expression, oral or written (other than the 
`United States Proposal for the Early Warning System in 
Sinai'), made by any official of the United States which 
Israel, Egypt, or any other nation or organization might 
construe or interpret as a basis on which it could rely or act, 
or (2) of any characterization of any such commitment, 
understanding, assurance, promise, or agreement, or other 
expression, as constituting a `codification' of existing, 
congressionally approved United States policy.''.

                       [aid for cypriot refugees

    [Sec. 402. Section 495 of the Foreign Assistance Act of 
1961 is amended by striking out ``$30,000,000'' and inserting 
in lieu thereof ``$40,000,000''.

                         [assistance to turkey

    [Sec. 403. Section 620(x)(1) of the Foreign Assistance Act 
of 1961, as amended by section 2(c) of the Act of October 6, 
1975 (Public Law 94-104), is amended by striking out 
``Provided,'' and all that follows through the end of paragraph 
(1) and inserting in lieu thereof the following: ``Provided, 
That for the fiscal year 1976, the period beginning July 1, 
1976, and ending September 30, 1976, and the fiscal year 1977, 
the President may suspend the provisions of this subsection and 
of section 3(c) of the Arms Export Control Act with respect to 
cash sales and extensions of credits and guaranties under such 
Act for the procurement of such defense articles and defense 
services as the President determines are necessary to enable 
Turkey to fulfill her defense responsibilities as a member of 
the North Atlantic Treaty Organization, except that (A) during 
the fiscal year 1976 and the period beginning July 1, 1976, and 
ending September 30, 1976, the total value of defense articles 
and defense services sold to Turkey under such Act, either for 
cash or financed by credits and guaranties, shall not exceed 
$125,000,000, and (B) during the fiscal year 1977, the total 
value of defense articles and defense services sold to Turkey 
under such Act, either for cash or financed by credits and 
guaranties, shall not exceed $125,000,000. Any such suspension 
shall be effective only so long as Turkey observes the cease-
fire on Cyprus, does not increase its military forces or its 
civilian population on Cyprus, and does not transfer to Cyprus 
any United States supplied arms, ammunition, or implements of 
war. The determination required by the proviso in the first 
sentence of this paragraph shall be made, on a case-by-case 
basis, with respect to each cash sale, each approval for use of 
credits, and each approval for use of a guaranty for Turkey. 
Each such determination shall be reported to the Congress and 
shall be accompanied by a full and complete statement of the 
reasons supporting the President's determination and a 
statement containing the information specified in clauses (A) 
through (D) of section 2(c)(4) of the Act of October 6, 1975 
(Public Law 94-104). In any case involving the sale of 
significant combat equipment on the United States Munitions 
List in which the congressional review provisions of section 
36(b) of the Arms Export Control Act do not apply, the 
President may not issue the letter of offer or approve the use 
of the credits or guaranty, as the case may be, until the end 
of the thirty-day period beginning on the date on which the 
report required by the preceding sentence is submitted to the 
Congress.''.

            [control of military forces in the indian ocean

    [Sec. 407. It is the sense of Congress that the President 
should undertake to enter into negotiations with the Soviet 
Union intended to achieve an agreement limiting the deployment 
of naval, air, and land forces of the Soviet Union and the 
United States in the Indian Ocean and littoral countries. Such 
negotiations should be convened as soon as possible and should 
consider, among other things, limitations with respect to--
            [(1) the establishment or use of facilities for 
        naval, air, or land forces in the Indian Ocean and 
        littoral countries;
            [(2) the number of naval vessels which may be 
        deployed in the Indian Ocean, or the number of 
        ``shipdays'' allowed therein; and
            [(3) the type and number of military forces and 
        facilities allowed therein.

              [united states citizens imprisoned in mexico

    [Sec. 408. (a) The Congress, while sharing the concern of 
the President over the urgent need for international 
corporation to restrict traffic in dangerous drugs, is 
convinced that such efforts must be consistent with respect for 
fundamental human rights. The Congress, therefore, calls upon 
the President to take steps to insure that United States 
efforts to secure stringent international law enforcement 
measures are combined with efforts to secure fair and humane 
treatment for citizens of all countries.
    [(b)(1) The Congress requests that the President 
communicate directly to the President and Government of the 
Republic of Mexico, a nation with which we have friendly and 
cooperative relations, the continuing desire of the United 
States for such relations between our two countries and the 
concern of the United States over treatment of United States 
citizens arrested in Mexico.
    [(2) The Secretary of State shall report to the Speaker of 
the House of Representatives and the Committee on Foreign 
Relations of the Senate within one hundred and twenty days 
after the date of enactment of this section, and every one 
hundred and twenty days thereafter, on progress toward full 
respect for the human and legal rights of all United States 
citizens detained in Mexico.

                   [emergency food needs of portugal

    [Sec. 409. It is the sense of the Congress that the 
President should undertake immediately an evaluation of the 
emergency food needs of Portugal. It is further, the sense of 
the Congress that the President would take timely action to 
alleviate such emergency by providing Portugal with food 
commodities under the provisions of pertinent statutes.

                           [strife in lebanon

    [Sec. 410. It is the sense of the Congress that the 
situation in Lebanon, a nation traditionally friendly to the 
United States, poses a danger to peace in the Middle East. The 
Congress deplores the armed civil strife and the continuing 
erosion of national institutions which threaten to destroy the 
political and economic fabric of Lebanon with such tragic 
impact on all its people. The Congress views with grave concern 
any outside efforts to exploit the current strife with the 
purpose of transforming Lebanon in to a radical State in 
confrontation with Israel. The Congress requests that the 
President use his good offices to secure and end to the civil 
strife and national discord in Lebanon and to preserve the 
traditional friendly attitude of Lebanon toward the United 
States.

                            [report on korea

    [Sec. 411. Chapter 3 of part III of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 668. Report on Korea.--Within ninety days after the 
enactment of this section, and at least once during each of the 
next five years, the President shall transmit to the Speaker of 
the House of Representatives and to the Committees on Foreign 
Relations and Armed Services of the Senate a report which (1) 
reviews the progress made under the announced program of the 
Republic of Korea to modernize its armed forces so as to 
achieve military self-sufficiency by 1980, (2) reports on the 
role of the United States in mutual security efforts in the 
Republic of Korea, and (3) reports on the prospects for or 
implementation of phased reduction of United States Armed 
Forces assigned to duty in the Republic of Korea, in 
coordination with the timetable of the Republic of Korea for 
military self-sufficiency.''.

                                 [korea

    [Sec. 412. The Congress views with distress the erosion of 
important civil liberties in the Republic of Korea and requests 
that the President communicate this concern in forceful terms 
to the Government of the Republic of Korea within sixty days 
after enactment.

                    [repeal of indochina assistance

    [Sec. 413. (a) Part V of the Foreign Assistance Act of 1961 
and sections 34, 35, 36, 37, 38, 39, and 40 of the Foreign 
Assistance Act of 1974 are repealed. All determinations, 
authorizations, regulations, orders, contracts, agreements, and 
other actions issued, undertaken, or entered into under 
authority of any provision of law repealed by this section 
shall continue in full force and effect until modified, 
revoked, or superseded by appropriate authority.
    [(b) Subject to the availability of appropriations 
therefor, the President is authorized to adopt as a contract of 
the United States Government, and assume any liabilities 
arising thereunder (in whole or in part), any contract which 
had been funded or approved for funding by the Agency for 
International Development prior to June 30, 1975, for financing 
with funds made available under the Foreign Assistance Act of 
1961 or the Foreign Assistance Act of 1974, or any equitable 
claim based upon a letter of intent issued prior to April 30, 
1975, in which the Agency had expressed its intention to 
finance a transaction subject to the availability of funds, 
between the former Governments of Vietnam or Cambodia 
(including any of their agencies) or the Government of Laos (or 
any of its agencies) and any person and to apply with respect 
to any such contract the authorities of the Foreign Assistance 
Act of 1961.
    [(c) Funds made available for the purposes of part V of the 
Foreign Assistance Act of 1961 and of section 36 of the Foreign 
Assistance Act of 1974 (including amounts certified pursuant to 
section 1311 of the Supplemental Appropriation Act, 1955 (31 
U.S.C. 200), as having been obligated against appropriations 
theretofore made) are authorized to be appropriated, and 
thereafter, to remain available until expended, to meet 
necessary expenses arising from the actions authorized by 
subsection (b) of this section and such funds are authorized to 
remain available until expended to meet necessary expenses 
arising from the termination of assistance programs authorized 
by such part and such section 36, which expenses may include 
but need not be limited to the settlement of claims and 
associated personnel costs.

                    [lebanon housing reconstruction

    [Sec. 414. Section 223(j) of the Foreign Assistance Act of 
1961 is amended by striking out ``and'' in the last sentence 
and by inserting immediately before the period at the end of 
such sentence ``, and in Lebanon, not exceeding a face amount 
of $15,000,000''.

                    [italy relief and rehabilitation

    [Sec. 415. Chapter 9 of part I of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 495B. Italy Relief and Rehabilitation.--(a) In 
addition to amounts otherwise available for such purpose, there 
is authorized to be appropriated $25,000,000 for the fiscal 
year 1976 to furnish assistance under this chapter for the 
relief and rehabilitation of the people who have been 
victimized by the recent earthquake in Italy. Amounts 
appropriated under this section are authorized to remain 
available until expended.
    [``(b) Obligations incurred prior to the date of enactment 
of this section against other appropriations or accounts for 
the purpose of providing relief and rehabilitation assistance 
to the people of Italy may be charged to the appropriations 
authorized under this section.''.

                   [lebanon relief and rehabilitation

    [Sec. 416. Chapter 9 of part I of the Foreign Assistance 
Act of 1961, as amended by section 415 of this Act, is further 
amended by adding at the end thereof the following new section:
    [``Sec. 495C. Lebanon Relief and Rehabilitation.--(a) The 
Congress, recognizing that prompt United States assistance is 
necessary to alleviate the human suffering arising from civil 
strife in Lebanon and to restore the confidence of the people 
of Lebanon, authorizes the President to furnish assistance, on 
such terms and conditions as he may determine, for the relief 
and rehabilitation of refugees and other needy people in 
Lebanon.
    [``(b) There is authorized to be appropriated to the 
President for the purposes of this section, in addition to 
amounts otherwise available for such purposes, $20,000,000, 
which amount is authorized to remain available until expended.
    [``(c) Assistance under this section shall be provided in 
accordance with the policies and general authority contained in 
section 491.
    [``(d) Obligations incurred prior to the date of enactment 
of this section against other appropriations or accounts for 
the purpose of providing relief and rehabilitation assistance 
to the people of Lebanon may be charged to the appropriations 
authorized under this section.
    [``(e) Not later than sixty days after the date of 
enactment of appropriations to carry out this section, and on a 
quarterly basis thereafter, the President shall transmit 
reports to the Committees on Foreign Relations and 
Appropriations of the Senate and to the Speaker of the House of 
Representatives regarding the programming and obligation of 
funds under this section.''.

                 [TITLE V--MISCELLANEOUS AUTHORIZATIONS

                    [security supporting assistance

    [Sec. 501. (a) Section 532 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 532. Authorization.--(a) There is authorized to be 
appropriated to the President to carry out the purposes of this 
chapter for the fiscal year 1976 $1,766,200,000, of which not 
less than $65,000,000 shall be available only for Greece, 
$730,000,000 shall be available only for Israel, and 
$705,000,000 shall be available only for Egypt, and for the 
fiscal year 1977 $1,860,000,000, of which not less than 
$785,000,000 shall be available only for Israel, not less than 
$750,000,000 shall be available only for Egypt, not less than 
$27,500,000 shall be available only for Zambia, and not less 
than $27,500,000 shall be available for Zaire. Amounts 
appropriated under this section are authorized to remain 
available until expended.
    [``(b)(1) None of the funds made available under this 
section for Zaire and Zambia may be used for military, 
guerrilla, or paramilitary activities in either such country or 
in any other country.
    [``(2) Assistance furnished under this chapter to Zaire and 
Zambia for fiscal year 1977 shall not be counted for purposes 
of the limitation contained in the last sentence of section 531 
on the number of countries which may receive assistance under 
this chapter in any fiscal year.''.

                 [middle east special requirement fund

    [Sec. 502. Section 903 of the Foreign Assistance Act of 
1961 is amended--
            [(1) in subsection (a), by striking out ``for the 
        fiscal year 1975 not to exceed $100,000,000'' and 
        inserting in lieu thereof ``for the fiscal year 1976 
        not to exceed $50,000,000 and for the fiscal year 1977 
        not to exceed $35,000,000''; and
            [(2) by striking out subsection (c) and inserting 
        in lieu thereof the following:
    [``(c) Funds appropriated under subsection (a) shall be 
available to assist the Governments of Egypt and Israel in 
carrying out activities under the Agreement of October 10, 
1975, and to pay the costs of implementing the United States 
proposal for the early warning system in Sinai. Such funds may 
be obligated without regard to the provisions of subsection (b) 
of this section to the extent that the proposed obligation has 
been justified to the Congress prior to the enactment of this 
subsection.
    [``(d) Of the amount authorized to be appropriated in 
subsection (a) for the fiscal years 1976 and 1977, not less 
than $12,000,000 for each such year shall constitute a 
contribution by the United States toward the settlement of the 
deficit of the United Nations Relief and Works Agency for 
Palestine Refugees in the Middle East, if the President 
determines that a reasonable number of other countries will 
contribute a fair share toward the settlement of such deficit 
within a reasonable period of time after the date of enactment 
of the International Security Assistance and Arms Export 
Control Act of 1976. In determining such fair share, the 
President shall take into consideration the economic position 
of each such country. Such $24,000,000 shall be in addition to 
any other contribution to such Agency by the United States 
pursuant to any other provision of law.
    [``(e) Funds made available under this section may be 
obligated without regard to the provisions of subsection (b) of 
this section for programs contained in the presentation 
materials submitted to Congress for the fiscal year 1977.''.

                           [contingency fund

    [Sec. 503. Chapter 5 of part I of the Foreign Assistance 
Act of 1961 is amended--
            [(1) in the chapter heading, by striking out 
        ``Disaster Relief'' and inserting in lieu thereof 
        ``Contingency Fund''; and
            [(2) in section 451(a)--
                    [(A) by striking out ``for the fiscal year 
                1975 not to exceed $5,000,000,'' and inserting 
                in lieu thereof ``for the fiscal year 1976 not 
                to exceed $5,000,000 and for the fiscal year 
                1977 not to exceed $5,000,000'';
                    [(B) by striking out ``or by section 639''; 
                and
                    [(C) by adding at the end thereof the 
                following new sentence: ``Amounts appropriated 
                under this section are authorized to remain 
                available until expended.''.

                    [international narcotics control

    [Sec. 504. (a) Section 482 of the Foreign Assistance Act of 
1961 is amended by inserting immediately before the period at 
the end of the first sentence ``, 40,000,000 for the fiscal 
year 1976, no part of which may be obligated for or on behalf 
of any country where illegal traffic in opiates has been a 
significant problem unless and until the President determines 
and certifies in writing to the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate that assistance furnished to such 
country pursuant to the authority in this chapter is 
significantly reducing the amount of illegal opiates entering 
the international market, and not to exceed $34,000,000 for the 
fiscal year 1977''.
    [(b) Section 481 of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
subsection:
    [``(c)(1) Notwithstanding any other provision of law, no 
officer or employee of the United States may engage or 
participate in any direct police arrest action in any foreign 
country with respect to narcotics control efforts.
    [``(2) The President shall carry out a study with respect 
to methods through which United States narcotics control 
programs in foreign countries might be placed under the 
auspices of international or regional organizations. The 
results of such study shall be transmitted to the Speaker of 
the House of Representatives and the President of the Senate 
not later than June 30, 1977.''.

         [authorization for international atomic energy agency

    [Sec. 505. Section 302 of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
subsection:
    [``(i) In addition to amounts otherwise available under 
this section, there are authorized to be appropriated for 
fiscal year 1976 $1,000,000 and for fiscal year 1977 $2,000,000 
to be available only for the International Atomic Energy Agency 
to be used for the purpose of strengthening safeguards and 
inspections relating to nuclear fissile facilities and 
materials. Amounts appropriated under this subsection are 
authorized to remain available until expended.''.

                    [interim quarter authorizations

    [Sec. 506. (a) Any authorization of appropriations in this 
Act, or in any amendment to any other law made by this Act, for 
the fiscal year 1976, shall be deemed to include an additional 
authorization of appropriations for the period beginning July 
1, 1976, and ending appropriations for the period beginning 
July 1, 1976, and ending September 30, 1976, in amounts which 
equal one-fourth of any amount authorized for the fiscal year 
1976 and in accordance with the authorities applicable to 
operations and activities authorized under this Act or such 
other law, unless appropriations for the same purpose are 
specifically authorized in a law hereinafter enacted.
    [(b) The aggregate total of credits, including 
participations in credits, extended pursuant to the Arms Export 
Control Act and of the principal amount of loans guaranteed 
pursuant to section 24(a) of such Act during the period 
beginning July 1, 1976, and ending September 30, 1976, may not 
exceed an amount equal to one-fourth of the amount authorized 
by section 31(b) of such Act to be extended and guaranteed for 
the fiscal year 1976.

                  [TITLE VI--MISCELLANEOUS PROVISIONS]

          * * * * * * *

                  [procurements from small businesses

    [Sec. 602. In order to encourage procurements from small 
business concerns under chapter 4 of the Foreign Assistance Act 
of 1961, the Administrator of the Agency for International 
Development shall report to the Congress every six months on 
the extent to which small businesses have participated in 
procurements under such chapter and on what efforts the Agency 
has made to foster such procurements from small business 
concerns. The Small business administration shall lend all 
available assistance to the Agency for the purposes of carrying 
out this section.

                        [payment of consultants

    [Sec. 603. Section 626(a) of the Foreign Assistance Act of 
1961 is amended by striking out ``$100 per diem'' and inserting 
in lieu thereof ``the daily equivalent of the highest rate 
which may be paid to an employee under the General Schedule 
established by section 5332 of title 5, United States Code''.

           [fees of military sales agents and other payments

    [Sec. 604. (a) Section 36 of the Foreign Military Sales 
Act, as amended by section 211 of this Act, is further amended 
as follows:
            [(1) In subsection (a)--
                    [(A) strike out ``and'' at the end of 
                paragraph (7);
                    [(B) redesignate paragraph (8) as paragraph 
                (9); and
                    [(C) insert the following new paragraph 
                immediately after paragraph (7):
            [``(8) a description of each payment, contribution, 
        gift, commission, or fee reported to the Secretary of 
        State under section 39, including (A) the name of the 
        person who made such payment, contribution, gift, 
        commission, or fee; (B) the name of any sales agent or 
        other person to whom such payment, contribution, gift, 
        commission, or fee was paid; (C) the date and amount of 
        such payment, contribution, gift, commission, or fee; 
        (D) a description of the sale in connection with which 
        such payment, contribution, gift, commission, or fee 
        was paid; and (E) the identification of any business 
        information considered confidential by the person 
        submitting it which is included in the report; and''.
            [``(2) In the first sentence of subsection (b), 
        insert immediately before the period ``and a 
        description, containing the information specified in 
        paragraph (8) of subsection (a), of any contribution, 
        gift, commission, or fee paid or offered or agreed to 
        be paid in order to solicit, promote, or otherwise to 
        secure such letter of offer''.
    [(b) Chapter 3 of the Foreign Military Sales Act, as 
amended by section 212 of this Act, is further amended by 
adding at the end thereof the following new section:
    [``Sec. 39. Fees of Military Sales Agents and Other 
Payment.--(a) In accordance with such regulations as he may 
prescribe, the Secretary of State shall require adequate and 
timely reporting on political contributions, gifts, commissions 
and fees paid, or offered or agreed to be paid, by any person 
in connection with--
            [``(1) sales of defense articles or defense 
        services under section 22 of this Act; or
            [``(2) commercial sales of defense articles or 
        defense services licensed or approved under section 38 
        of this Act;
to or for the armed forces of a foreign country or 
international organization in order to solicit, promote, or 
otherwise to secure the conclusion of such sales. Such 
regulations shall specify the amounts and the kinds of 
payments, offers, and agreements to be reported, and the form 
and timing of reports, and shall require reports on the names 
of sales agents and other persons receiving such payments. The 
Secretary of State shall by regulation require such 
recordkeeping as he determines is necessary.
    [``(b) The President may, by regulation, prohibit, limit, 
or prescribe conditions with respect to such contributions, 
gifts, commissions, and fees as he determines will be 
furtherance of the purposes of this Act.
    [``(c) No such contribution, gift, commission, or fee may 
be included, in whole or in part, in the amount paid under any 
procurement contract entered into under section 22 of this Act, 
unless the amount thereof is reasonable, allocable to such 
contract, and not made to a person who has solicited promoted, 
or otherwise secured such sale, or has held himself out as 
being able to do so, through improper influence. For the 
purposes of this section, `improper influence' means influence, 
direct or indirect, which induces or attempts to induce 
consideration or action by any employee or officer of a 
purchasing foreign government or international organization 
with respect to such purchase on any basis other than such 
consideration of merit as are involved in comparable United 
States procurements.
    [``(d)(1) All information reported to the Secretary of 
State and all records maintained by any person pursuant to 
regulations prescribed under this section shall be available, 
upon request, to any standing committee of the Congress or any 
subcommittee thereof and to any agency of the United States 
Government authorized by law to have access to the books and 
records of the person requried to submit reports or to maintain 
records under this section.
    [``(2) Access by an agency of the United States Government 
to records maintained under this section shall be on the same 
terms and conditions which govern the access by such agency to 
the books and records of the person concerned.''.
    [(c) The amendments made by this section shall take effect 
sixty days after the date of enactment of this Act.

                           [use of personnel

    [Sec. 605. (a) Nothing in this Act is intended to authorize 
any additional military or civilian personnel for the 
Department of Defense for the purposes of this Act, the Foreign 
Assistance Act of 1961, or the Arms Export Control Act. 
Personnel levels authorized in statutes authorizing 
appropriations for military and civilian personnel of the 
Department of Defense shall be controlling over all military 
and civilian personnel of the Department of Defense assigned to 
carry out functions under the Arms Export Control Act and the 
Foreign Assistance Act of 1961.
    [(b) Section 42 of the Foreign Military Sales Act, as 
amended by section 213 of this Act, is further amended by 
adding at the end thereof the following new subsection:
    [``(f) The President shall, to the maximum extent possible 
and consistent with the purposes of this Act, use civilian 
contract personnel in any foreign country to perform defense 
services sold under this Act.''.

                 [assistance for productive enterprises

    [Sec. 606. Section 620(k) of the Foreign Assistance Act of 
1961 is amended by inserting immediately before the period at 
the end of the first sentence ``, except that this sentence 
does not apply with respect to assistance for construction of 
any productive enterprise in Egypt which is described in the 
persentation materials to Congress for fiscl year 1977''.

                    [extortion and illegal payments

    [Sec. 607. Within 60 days after receiving information which 
substantiates that officials of a foreign country receiving 
international security assistance have (1) received illegal or 
otherwise improper payments for a United States corporation in 
return for a contract to purchase defense articles or services 
from such corporation, or (2) extorted, or attempted to extort, 
money or other things of value in return for actions by 
officials of that country that permit a United States citizen 
or corporation to conduct business in that country, the 
President shall submit to Congress a report outlining the 
circumstances of such payment or extortion. The report shall 
contain a recommendation from the President as to whether the 
United States should continue a security assistance program for 
that country.]

              extension of airport at pinecreek, minnestoa

    Sec. 608. The consent of Congress is hereby granted for the 
State of Minnesota or a subdivision or instrumentality thereof 
to enter into an agreement with the Government of Canada, a 
Canadian Province, or a subdivision or instrumentality of 
either, providing for the extension of the Pinecreek Airport at 
Pinecreek, Minnesota, into the Province of Manitoba, Canada, 
and the operation of the airport by a joint Canadian-American 
airport authority. The effectivenss of such agreement shall be 
conditioned on its approval by the Secretary of State.
                              ----------                              


       INTERNATIONAL DEVELOPMENT AND FOOD ASSISTANCE ACT OF 1975

AN ACT To authorize assistance for disaster relief and rehabilitation, 
  to provide for overseas distribution and production of agricultural 
commodities, to amend the Foreign Assistance Act of 1961, and for other 
                                purposes

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,  [That this 
Act may be cited as the ``International Development and Food 
Assistance Act of 1975''.

              [TITLE I--INTERNATIONAL DISASTER ASSISTANCE

                   international disaster assistance

    [Sec. 101. The Foreign Assistance Act of 1961 is amended--
            [(1) by amending the chapter heading for chapter 9 
        of part I to read ``Chapter 9--International Disaster 
        Assistance'';
            [(2) by repealing section 491;
            [(3) by inserting immediately after the chapter 
        heading for such chapter 9 the following new sections:
    [``Sec. 491. Policy and General Authority.--(a) The 
Congress, recognizing that prompt United States assistance to 
alleviate human suffering caused by natural and manmade 
disasters is an important expression of the humanitarian 
concern and tradition of the people of the United States, 
affirms the willingness of the United States to provide 
assistance for the relief and rehabilitation of people and 
countries affected by such disasters.
    [``(b) Subject to the limitation on appropriations in 
section 492, and notwithstanding any other provision of this or 
any other Act, the President is authorized to furnish 
assistance to any foreign country or international organization 
on such terms and conditions as he may determine, for 
international disaster relief and rehabilitation, including 
assistance relating to disaster preparedness, and to the 
prediction of, and contingency planning for, natural disasters 
abroad.
    [``(c) In carrying out the provisions of this section the 
President shall insure that the assistance provided by the 
United States shall, to the greatest extent possible, reach 
those most in need of relief and rehabilitation as a result of 
natural and manmade disasters.
    [``Sec. 492. Authorization.--There is authorized to be 
appropriated to the President to carry out section 491, 
$25,000,000 for each of the fiscal years 1976 and 1977. Amounts 
appropriated under this section are authorized to remain 
available until expended. The President shall submit quarterly 
reports to the Committee on Foreign Relations of the Senate and 
to the Speaker of the House of Representatives on the 
programing and obligation of funds under this section.
    [``Sec. 493. Disaster Assistance--Coordination.--The 
President is authorized to appoint a Special Coordinator for 
International Disaster Assistance whose responsibility shall be 
to promote maximum effectiveness and coordination in responses 
to foreign disasters by United States agencies and between the 
United States and other donors. Included among the Special 
Coordinator's responsibilities shall be the formulation and 
updating of contingency plans for providing disaster relief.'';
            [(4) by redesignating section 452 as section 494 
        and inserting it immediately after section 493;
            [(5) by redesignating sections 639A and 639B as 
        sections 494A and 494B, respectively, and inserting 
        them immediately after section 494;
            [(6) by repealing section 639;
            [(7) in section 494B, as redesignated by paragraph 
        (5) of this section--
                    [(A) by striking out ``Sahel'' in the 
                section caption,
                    [(B) by inserting ``(a)'' immediately after 
                the section caption,
                    [(C) by striking out ``supports'' and 
                inserting in lieu thereof ``reaffirms its 
                support of'', and
                    [(D) by adding the following new 
                subsections at the end thereof:
    [``(b) The President is authorized to develop a long-term 
comprehensive development program for the Sahel and other 
drought-stricken nations in Africa.
    [``(c) In developing this long-term program, the President 
shall--
            [``(1) consider international coordination for the 
        planning and implementation of such program;
            [``(2) seek greater participation and support by 
        African countries and organizations in determining 
        development priorities; and
            [``(3) begin such planning immediately.
    [``(d) There is authorized to be appropriated to the 
President, to carry out the purposes of this section, in 
addition to funds otherwise available for such purposes, 
$5,000,000 for the fiscal year 1976, which amount is authorized 
to remain available until expended. The President shall submit 
to the Foreign Relations and Appropriations Committees of the 
Senate and the International Relations and Appropriations 
Committees of the House of Representatives not later than April 
30, 1976, a comprehensive proposal for carrying out the 
provisions of this section which shall include budget materials 
relating to programs for the fiscal year 1977.''; and
            [(8) by adding the following new section 
        immediately after new section 494B:
    [``Sec. 495. Cyprus Relief and Rehabilitation.--The 
President is authorized to furnish assistance, on such terms 
and conditions as he may determine, for the relief and 
rehabilitation of refugees and other needy people in Cyprus. 
There is authorized to be appropriated for the purposes of this 
section, in addition to amounts otherwise available for such 
purposes, $30,000,000. Such amount is authorized to remain 
available until expended. Assistance under this section shall 
be provided in accordance with the policy and general authority 
contained in section 491.''.

                 [TITLE II--FOOD AID TO POOR COUNTRIES

                                [POLICY

    [Sec. 201. Section 2 of the Agricultural Trade Development 
and Assistance Act of 1954 is amended by adding at the end 
thereof the following:
    [``In furnishing food aid under this Act, the President 
shall--
            [``(1) give priority consideration, in helping to 
        meet urgent food needs abroad, to making available the 
        maximum feasible volume of food commodities (with 
        appropriate regard to domestic price and supply 
        situations) required by those countries most seriously 
        affected by food shortages and by inability to meet 
        immediate food requirements on a normal commercial 
        basis;
            [``(2) continue to urge all traditional and 
        potential new donors of food, fertilizer, or the means 
        of financing these commodities to increase their 
        participation in efforts to address the emergency and 
        longer term food needs of the developing world;
            [``(3) relate United States assistance to efforts 
        by aid-receiving countries to increase their own 
        agricultural production, with emphasis on development 
        of small, family farm agriculture, and improve their 
        facilities for transportation, storage, and 
        distribution of food commodities;
            [``(4) give special consideration to the potential 
        for expanding markets for America's agricultural 
        abundance abroad in the allocation of commodities or 
        concessional financing; and
            [``(5) give appropriate recognition to and support 
        of a strong and viable American farm economy in 
        providing for the food security of consumers in the 
        United States and throughout the world.''.

                     [world food conference target

    [Sec. 202. The Agricultural Trade Development and 
Assistance Act of 1954 is amended by inserting immediately 
after section 2 the following new section:
    [``Sec. 3. Pursuant to the World Food Conference 
recommendation that donor countries provide a total of at least 
ten million tons of food assistance to needy nations annually, 
the President is urged to maintain a significant United States 
contribution to this goal and to encourage other countries to 
maintain and increase their contributions as well.''.

                        [exercise of authorities

    [Sec. 203. Section 103 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended--
            [(1) by amending subsection (a) to read as follows:
            [``(a) take into account efforts of friendly 
        countries to help themselves toward a greater degree of 
        self-reliance, including efforts to increase their own 
        agricultural production, especially through small, 
        family farm agriculture, to improve their facilities 
        for transportation, storage, and distribution of food 
        commodities, and to reduce their rate of population 
        growth;'';
            [(2) in subsection (b), by inserting ``and in 
        section 106(b)(2)'' immediately after ``section 104''; 
        and
            [(3) in subsection (d), by striking out the second 
        proviso and inserting in lieu thereof ``Provided, That 
        this exclusion from the definition of `friendly 
        country' may be waived by the President if he 
        determines that such waiver is in the national interest 
        and reports such determination to the Congress within 
        10 days of the date of such determination,''.

                [foreign currencies from overseas sales

    [Sec. 204. Section 104 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended--
            [(1) by inserting immediately after ``the House 
        Committee on Agriculture'' each time it appears ``and 
        the House Committee on International Relations'';
            [(2) by inserting immediately after ``the Senate 
        Committee on Agriculture and Forestry'' each time it 
        appears ``and the Senate Committee on Foreign 
        Relations''; and
            [(3) by repealing subsection (c).

    [use by foreign countries of proceeds of sales of agricultural 
                              commodities

    [Sec. 205. Section 106(b) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended--
            [(1) by inserting ``(1)'' immediately after 
        ``(b)'';
            [(2) by adding at the end thereof: ``In negotiating 
        such agreements with recipient countries, the United 
        States shall emphasize the use of such proceeds for 
        purposes which directly improve the lives of the 
        poorest of their people and their capacity to 
        participate in the development of their countries.''; 
        and
            [(3) by adding at the end thereof the following new 
        paragraphs:
    [``(2) Greatest emphasis shall be placed on the use of such 
proceeds to carry out programs of agricultural development, 
rural development, nutrition, and population planning, and to 
carry out the program described in section 406(a)(1) of this 
Act, in those countries which are undertaking self-help 
measures to increase agricultural production, improve storage, 
transportation, and distribution of commodities, and reduce 
population growth in accordance with section 109 of this Act, 
and which programs are directed at and likely to achieve the 
policy objectives of sections 103 and 104 of the Foreign 
Assistance Act of 1961 and are consistent with the policy 
objectives of this Act, pursuant to agreements between the 
United States and foreign governments under which uses of such 
proceeds shall be made for such purposes. Such uses shall be 
deemed payments for the purpose of section 103(b) of this Act, 
except that for any fiscal year the total value of such 
payments may not exceed 15 per centum of the total value of all 
agreements entered into under title I of this Act for such 
fiscal year. Such payments shall be described in the reports 
required by section 408 of this Act and section 657 of the 
Foreign Assistance Act of 1961.
    [``(3) In entering into agreements for the sale of 
agricultural commodities for dollars on credit terms under this 
title, priority shall be given to countries which agree to use 
the proceeds from the sale of the commodities in accordance 
with the country's agricultural development plan which--
            [``(A) is designed to increase the access of the 
        poor in the recipient country to an adequate, 
        nutritious, and stable food supply;
            [``(B) provides for such objectives as--
                    [``(i) making farm production equipment and 
                facilities available to farmers,
                    [``(ii) credit on reasonable terms and 
                conditions for small farmers, and
                    [``(iii) farm extension and technical 
                information services designed to improve the 
                marketing, storage, transportation, and 
                distribution system for agricultural 
                commodities and to develop the physical and 
                institutional infrastructure supporting the 
                small farmer;
            [``(C) provides for participation by the poor, 
        insofar as possible, in the foregoing at the regional 
        and local levels; and
            [``(D) is designed to reach the largest practicable 
        number of farmers in the recipient country.''.

              [sales agreements with developing countries

    [Sec. 206. Section 109(a) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by adding at 
the end thereof: ``In taking these self-help measures into 
consideration the President shall take into particular account 
the extent to which they are being carried out in ways designed 
to contribute directly to development progress in poor rural 
areas and to enable the poor to participate actively in 
increasing agricultural production through small farm 
agriculture.''.

            [assistance to most seriously affected countries

    [Sec. 207. Title I of the Agricultural Trade Development 
and Assistance Act of 1954 is amended by adding at the end 
thereof the following new section:
    [``Sec. 111. Not more than 25 per centum of the food aid 
commodities provided under this title in each fiscal year shall 
be allocated and agreed to be delivered to countries other than 
those with an annual per capita gross national product of $300 
or less and affected by inability to secure sufficient food for 
their immediate requirements through their own production or 
commercial purchase from abroad, unless the President certifies 
to the Congress that the use of such food assistance is 
required for humanitarian food purposes and neither House of 
Congress disapproves such use, by resolution, within thirty 
calendar days after such certification. In determining per 
capita gross national product for the purposes of this section, 
the President is authorized and directed to make use of data 
developed by the World Bank for its most recent annual report 
and relied upon by the Secretary of the Treasury. A reduction 
below 75 per centum in the proportion of food aid allocated and 
agreed to be delivered to countries with a per capita gross 
national product of $300 or less and affected by inability to 
secure sufficient food for their immediate requirements through 
their own production or commercial purchase from abroad which 
results from significantly changed circumstances occurring 
after the initial allocation shall not constitute a violation 
of the requirements of this section. Any reallocation of food 
aid shall be in accordance with this section so far as 
practicable. The President shall report promptly any such 
reduction, and the reasons therefor, to the Congress.''.

               [continuity of distribution under title ii

    [Sec. 208. Section 201 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended--
            [(1) by inserting ``(a)'' immediately after ``Sec. 
        201.''; and
            [(2) by adding at the end thereof the following new 
        subsection:
    [``(b) The minimum quantity of agricultural commodities 
distributed under this title shall be 1,300,000 tons of which 
the minimum distributed through nonprofit voluntary agencies 
and the World Food Program shall be one million tons in each 
fiscal year, unless the President determines and reports to the 
Congress, together with his reasons, that such quantity cannot 
be used effectively to carry out the purposes of this title: 
Provided, That such minimum quantity shall not exceed the total 
quantity of commodities determined to be available for 
disposition under this Act pursuant to section 401, less the 
quantity of commodities required to meet famine or other urgent 
or extraordinary relief requirements.''.

                [limitation on use of foreign currencies

    [Sec. 209. Title II of the Agricultural Trade Development 
and Assistance Act of 1954 is amended by adding at the end 
thereof the following new section:
    [``Sec. 206. Except to meet famine or other urgent or 
extraordinary relief requirements, no assistance under this 
title shall be provided under an agreement permitting 
generation of foreign currency proceeds unless (1) the country 
receiving the assistance is undertaking self-help measures in 
accordance with section 109 of this Act, (2) the specific uses 
to which the foreign currencies are to be put are set forth in 
a written agreement between the United States and the recipient 
country, and (3) such agreement provides that the currencies 
will be used for purposes specified in section 103 of the 
Foreign Assistance Act of 1961. The President shall include 
information on currencies used in accordance with this section 
in the reports required under section 408 of this Act and 
section 657 of the Foreign Assistance Act of 1961.''.

                          [advisory committee

    [Sec. 210. Section 407 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by inserting 
immediately before the period at the end of the first sentence 
``, or their designees (who shall be members of such committees 
or, in the case of members from the executive branch, who shall 
have been confirmed by the Senate)''.

                        [reports to the congress

    [Sec. 211. Section 408 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended--
            [(1) by inserting ``(a)'' immediately after ``Sec. 
        408.'';
            [(2) by striking out ``calendar'' in the first 
        sentence and inserting in lieu thereof ``fiscal''; and
            [(3) by adding the following new subsections:
    [``(b) In his presentation to the Congress of planned 
programming of food assistance for each fiscal year, the 
President shall include a global assessment of food production 
and needs, self-help steps which are being taken by food-short 
countries under section 109(a) of this Act, steps which are 
being taken to encourage other countries to increase their 
participation in food assistance or the financing of food 
assistance, and the relationship between food assistance 
provided to such country by the United States and other donors.
    [``(c) Not later than November 1 of each calendar year the 
President shall submit to the House Committee on Agriculture, 
the House Committee on International Relations, the Senate 
Committee on Agriculture and Forestry, and the Senate Committee 
on Agriculture and Forestry, and the Senate Committee on 
Agriculture and Forestry, and the Senate Committee on Foreign 
Relations a revised global assessment of food production and 
needs, and revised planned programming of food assistance for 
the current fiscal year, to reflect, to the maximum extend 
feasible, the actual availability of commodities for food 
assistance.''.

                   [international food reserve system

    [Sec. 212. The Agricultural Trade Development and 
Assistance Act of 1954 is amended by adding at the end thereof 
the following new section:
    [``Sec. 412. The President is authorized and encouraged to 
seek international agreement, subject to congressional 
approval, for a system of food reserves to meet food shortage 
emergencies and to provide insurance against unexpected 
shortfalls in food production, with costs of such a system to 
be equitably shared among nations and with farmers and 
consumers to be given firm safeguards against market price 
disruption from such a system.''.

                 [amendment to farmer-to-farmer program

    [Sec. 214. Section 406 of the Agricultural Trade 
Development and Assistance Act of 1954 is amended--
            [(1) by striking out ``the Secretary of 
        Agriculture'' in subsection (a) and inserting in lieu 
        thereof ``the President'';
            [(2) by striking in paragraph (1) of subsection (a) 
        ``through existing agencies of the Department of 
        Agriculture'';
            [(3) by amending paragraph (5) of subsection (a) to 
        read as follows:
            [``(5) to coordinate the program authorized in this 
        section with other foreign assistance activities of the 
        United States;''.

                   [TITLE III--DEVELOPMENT ASSISTANCE

                                [policy

    [Sec. 301. Section 102 of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
subsections:
    [``(c) Assistance under this chapter should be used not 
simply for the purpose of transferring financial resources to 
developing countries, but to help countries solve development 
problems in accordance with a strategy that aims to increase 
substantially the participation of the poor. Accordingly, 
greatest emphasis shall be placed on countries and activities 
which effectively involve the poor in development, by expanding 
their access to the economy through services and institutions 
at the local level, increasing labor-intensive production, 
spreading productive investment and services out from major 
cities to small towns and outlying rural areas, and otherwise 
providing opportunities for the poor to better their lives 
through their own effort.
    ``[(d) For the purpose of assuring that development 
assistance furnished under this chapter is increasingly 
concentrated in countries which will make effective use of such 
assistance to help the poor toward a better life (especially 
such countries which are suffering from the worst and most 
widespread poverty and are in greatest need of outside 
assistance), the President shall establish appropriate criteria 
to assess the commitment and progress of countries in meeting 
the objectives set forth in subsection (c) of this section and 
in other sections of this chapter. In establishing such 
criteria, the President shall specifically take into account 
their value in assessing the efforts of countries to--
            [``(1) increase agricultural productivity per unit 
        of land through small-farm labor-intensive agriculture;
            [``(2) reduce infant mortality;
            [``(3) control population growth;
            [``(4) promote greater equality of income 
        distribution, including measures such as more 
        progressive taxation and more equitable returns to 
        small farmers; and
            [``(5) reduce rates of unemployment and 
        underemployment.
The President shall endeavor to bring about the adoption of 
similar criteria by international development organizations in 
which the United States participates. Presentation materials 
submitted to the Congress with respect to assistance under this 
chapter, beginning with fiscal year 1977, shall contain 
detailed information concerning the steps being taken to 
implement this subsection.''.

                          [food and nutrition

    [Sec. 302. Section 103 of the Foreign Assistance Act of 
1961 is amended--
            [(1) in subsection (a), by inserting $618,800,000 
        for the fiscal year 1976 and $745,000,000 for the 
        fiscal year 1977,'' immediately after ``1975,''; and
            [(2) by adding at the end thereof the following new 
        subsections:
    [``(c) Assistance provided under this section shall be used 
primarily for activities which are specifically designed to 
increase the productivity and income of the rural poor, through 
such means as creation and strengthening of local institutions 
linked to the regional and national levels; organization of a 
system of financial institutions which provide both savings and 
credit services to the poor; stimulation of small, labor-
intensive enterprises in rural towns; improvement of marketing 
facilities and systems; expansion of local or small-scale rural 
infrastructure and utilities such as farm-to-market roads, land 
improvement, energy, and storage facilities; establishment of 
more equitable and more secure land tenure arrangements; and 
creation and strengthening of systems to provide other services 
and supplies needed by farmers, such as extension, research, 
training, fertilizer, water, and improved seed, in ways which 
assure access to them by small farmers.
    [``(d) Foreign currency proceeds from sales of commodities 
provided under the Agricultural Trade Development and 
Assistance Act of 1954 which are owned by foreign governments 
shall be used whenever practicable to carry out the provisions 
of this section.
    [``(e) In order to carry out the purposes of this section, 
the President is authorized to participate in and provide, on 
such terms and conditions as he may determine, up to 
$200,000,000 to the International Fund for Agricultural 
Development. There is authorized to be appropriated to the 
President without fiscal year limitation $200,000,000 for such 
contribution.
    [``(f) No funds may be obligated to carry out subsection 
(e) unless--
            [``(1) satisfactory agreement is reached on the 
        Articles of Agreement for the International Fund for 
        Agricultural Development;
            [``(2) such Articles of Agreement are reviewed and 
        approved by the Senate Committee on Foreign Relations 
        and the House Committee on International Relations;
            [``(3) all donor commitments to the International 
        Fund for Agricultural Development total at least 
        $1,000,0000,000 equivalent in convertible currencies, 
        except that the United States contribution shall be 
        proportionally reduced if this combined goal is not 
        met; and
            [``(4) there is equitable burden sharing among the 
        different categories of contributors.
    [``(g) The President shall submit to the Congress full and 
complete data concerning United States participation in, and 
operation of, the International Fund for Agricultural 
Development in the annual presentation materials on proposed 
economic assistance programs.''.

                         [agricultural research

    [Sec. 303. Chapter 1 of part I of the Foreign Assistance 
Act of 1961 is amended by adding after section 103 the 
following new section:
    [``Sec. 103A. Agricultural Research.--Agricultural research 
carrried out under this Act shall (1) take account of the 
special needs of small farmers in the determination of research 
priorities, (2) include research on the interrelationship among 
technology, institutions, and economic, social, and cultural 
factors affecting small-farm agriculture, and (3) make 
extensive use of field testing to adapt basic research to local 
conditions. Special emphasis shall be placed on disseminating 
research results to the farms on which they can be put to use, 
and especially on institutional and other arrangements needed 
to assure that small farmers have effective access to both new 
and existing improved technology.''.

                    [population planning and health

    [Sec. 304. Section 104 of the Foreign Assistance Act of 
1961 is amended--
            [(1) by inserting ``(a)'' immediately before 
        ``In'';
            [(2) by inserting ``$232,100,000 for the fiscal 
        year 1976 and $275,600,000 for the fiscal year 1977,'' 
        immediately after ``1975,'';
            [(3) by adding at the end thereof the following new 
        sentence; ``Not less than 67 percent of the funds made 
        available under this section for any fiscal year shall 
        be used for population planning, either in separate 
        programs or as an element of health programs.''; and
            [(4) by adding at the end thereof the following new 
        subsection:
    [``(b) Assistance provided under this section shall be used 
primarily for extension of low-cost, integrated delivery 
systems to provide health and family planning services, 
especially to rural areas and to the poorest economic sectors, 
using paramedical and auxiliary medical personnel, clinics and 
health posts, commercial distribution systems, and other modes 
of community outreach; health programs which emphasize disease 
prevention, environmental sanitation, and health education; and 
population planning programs which include education in 
responsible parenthood and motivational programs, as well as 
delivery of family planning services and which are coodinated 
with programs aimed at reducing the infant mortality rate, 
providing better nutrition to pregnant women and infants, and 
raising the standard of living of the poor.''.

               [education and human resources development

    [Sec. 305. (a) Section 105 of the Foreign Assistance Act of 
1961 is amended--
            [(1) by inserting ``(a)'' immediately before 
        ``In'';
            [(2) by inserting ``$89,200,000 for the fiscal year 
        1976 and $101,800,000 for the fiscal year 1977,'' 
        immediately after ``1975,''; and
            [(3) by adding at the end thereof the following new 
        subsections:
    [``(b) Assistance provided under this section shall be used 
primarily to expand and strengthen nonformal education methods, 
especially those designed to improve productive skills or rural 
families and the urban poor and to provide them with useful 
information; to increase the relevance of formal education 
systems to the needs of the poor, especially at the primary 
level, through reform of curricula, teaching materials and 
teaching methods, and improved teacher training; and to 
strengthen the management capabilities of institutions which 
enable the poor to participate in development.
    [``(c) Of the amount authorized to be appropriated by 
subsection (a), not less than $1,000,000 shall be available to 
support the Southern African student program and the Southern 
African training program, for the purpose of providing 
educational assistance to Southern Africans.''.

 [technical assistance, energy, research, reconstruction, and selected 
             development problems; intermediate technology

    [Sec. 306. The Foreign Assistance Act of 1961 is amended--
            [(1) by repealing sections 106, 107, and 241; and
            [(2) by inserting immediately after section 105 the 
        following new sections:
    [``Sec. 106. Technical Assistance, Energy, Research, 
Reconstruction, and Selected Development Problems.--(a) The 
President is authorized to furnish assistance, on such terms 
and conditions as he may determine, for the following 
activities, to the extent that such activities are not 
authorized by sections 103, 104, and 105 of this Act:
            [``(1) programs of technical cooperation and 
        development, particularly the development efforts of 
        United States private and voluntary agencies and 
        regional and international development organizations;
            [``(2) programs to help developing countries 
        alleviate their energy problems by increasing their 
        production and conservation of energy, through such 
        means as research and development of suitable energy 
        sources and conservation methods, collection and 
        analysis of information concerning countries' potential 
        supplies of and needs for energy, and pilot projects to 
        test new methods of production or conservation of 
        energy;
            [``(3) programs of research into, and evaluation 
        of, the process of economic development in less 
        developed countries and areas, into the factors 
        affecting the relative success and costs of development 
        activities, and into the means, techniques, and such 
        other aspects of development assistance as the 
        President may determine in order to render such 
        assistance of increasing value and benefit;
            [``(4) programs of reconstruction following natural 
        or manmade disasters;
            [``(5) programs designed to help solve special 
        development problems in the poorest countries and to 
        make possible proper utilization of infrastructure and 
        related projects funded with earlier United States 
        assistance; and
            [``(6) programs of urban development, with 
        particular emphasis on small, labor intensive 
        enterprises, marketing systems for small producers, and 
        financial and other institutions which enable the urban 
        poor to participate in the economic and social 
        development of their country.
    [``(b) There is authorized to be appropriated to the 
President for the purposes of this section, in addition to 
funds otherwise available for such purposes, $99,550,000 for 
the fiscal year 1976 and $104,500,000 for the fiscal year 1977, 
which amounts are authorized to remain available until 
expended. Of the amounts made available under this section, not 
less than $30,000,000 shall be available during the period 
beginning July 1, 1975, and ending September 30, 1977, only for 
reimbursement to private voluntary agencies of the United 
States for costs incurred with respect to the shipment of food 
and nonfood commodities provided through private donations. 
    [``Sec. 107. Intermediate Technology.--Of the funds made 
available to carry out this chapter for the fiscal years 1976, 
1977, and 1978, a total of $20,000,000 may be used for 
activities in the field of intermediate technology, through 
grants in support of an expanded and coordinated private effort 
to promote the development and dissemination of technologies 
appropriate for developing countries. The Agency for 
International Development shall prepare a detailed proposal to 
carry out this section and shall keep the Senate Foreign 
Relations Committee and the House International Relations 
committee fully and currently informed concerning the 
development of the proposal. The proposal shall be transmitted 
to these committees no later than March 31, 1976, and shall not 
be implemented until thirty days after its transmittal or until 
passage by each committee of a resolution in effect approving 
its implementation.''.

                             [cost-sharing

    [Sec. 307. Section 110(a) of the Foreign Assistance Act of 
1961 is amended by inserting immediately before the period at 
the end thereof the following: ``and except that the President 
may waive this cost-sharing requirement in the case of a 
project or activity in a country which the agency primarily 
responsible for administering part I of this Act determines is 
relatively least developed based on the United Nations 
Conference on Trade and Development list of `relatively least 
developed countries' ''.

                  [development and use of cooperatives

    [Sec. 308. Section 111 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 111. Development and Use of Cooperatives.--In order 
to strengthen the participation of the rural and urban poor in 
their country's development, high priority shall be given to 
increasing the use of funds made available under this Act for 
assistance in the development of cooperatives in the less 
developed countries which will enable and encourage greater 
numbers of the poor to help themselves toward a better life. 
Not less than $20,000,000 of such fund shall be used during the 
fiscal years 1976 and 1977, including the period from July 1, 
1976, through September 30, 1976, only for technical assistance 
to carry out the purposes of this section.''.

               [integrating women into national economies

    [Sec. 309. Section 113 of the Foreign Assistance Act of 
1961 is amended by striking out ``Sections 103 through 107'' 
and inserting in lieu thereof ``Part I''.

                [human rights and development assistance

    [Sec. 310. Part I of the Foreign Assistance Act of 1961 is 
amended by inserting immediately after section 115 the 
following new section:
    [``Sec. 116. Human Rights.--(a) No assistance may be 
provided under this part to the government of any country which 
engages in a consistent pattern of gross violations of 
internationally recognized human rights, including torture or 
cruel, inhuman, or degrading treatment or punishment, prolonged 
detention without charges, or other flagrant denial of the 
right to life, liberty, and the security of person, unless such 
assistance will directly benefit the needy people in such 
country.
    [``(b) In determining whether this standard is being met 
with regard to funds allocated under this part, the Committee 
on Foreign Relations of the Senate or the Committee on 
International Relations of the House of Representatives may 
require the Administrator primarily responsible for 
administering part I of this Act to submit in writing 
information demonstrating that such assistance will directly 
benefit the needy people in such country, together with a 
detailed explanation of the assistance to be provided 
(including the dollar amounts of such assistance) and an 
explanation of how such assistance will directly benefit the 
needy people in such country. If either committee or either 
House of Congress disagrees with the Administrator's 
justification it may initiate action to terminate assistance to 
any country by a concurrent resolution under section 617 of 
this Act.
    [``(c) In determining whether or not a government falls 
within the provisions of subsection (a), consideration shall be 
given to the extent of cooperation of such government in 
permitting an unimpeded investigation of alleged violations of 
internationally recognized human rights by appropriate 
international organizations, including the International 
Committee of the Red Cross, or groups or persons acting under 
the authority of the United Nations or of the Organization of 
American States.
    [``(d) The President shall transmit to the Speaker of the 
House of Representatives and the Committee on Foreign Relations 
of the Senate, in the annual presentation materials on proposed 
economic development assistance programs, a full and complete 
report regarding the steps he has taken to carry out the 
provisions of this section.''.

                        [development assistance

    [Sec. 311. Chapter 2 of part I of the Foreign Assistance 
Act of 1961 is amended--
            [(1) by amending section 209(c) to read as follows:
    [``(c) It is the sense of the Congress that the President 
should increase, to the extent practicable, the funds provided 
by the United States to multilateral lending institutions and 
multilateral organizations in which the United States 
participates for use by such institutions and organizations in 
making loans to foreign countries.'';
            [(2) by amending section 214--
                    [(A) in subsection (c), by inserting ``and 
                for each of the fiscal years 1976 and 1977, 
                $25,000,000,'' immediately after 
                ``$19,000,000,''; and
                    [(B) in subsection (d), by inserting ``and 
                for each of the fiscal years 1976 and 1977, 
                $7,000,000,'' immediately after ``$6,500,000'';
            [(3) in section 221, by striking out 
        ``$355,000,000'' and inserting in lieu thereof 
        ``$430,000,000'';
            [(4) in section 222(c), by striking out 
        ``$550,000,000'' and inserting in lieu thereof 
        ``$600,000,000''; and
            [(5) in section 223--
                    [(A) by striking out ``June 30, 1976'' in 
                subsection (i) and inserting in lieu thereof 
                ``September 30, 1978''; and
                    [(B) by adding at the end thereof the 
                following new subsection:
    [``(j) Guaranties shall be issued under sections 221 and 
222 only for housing projects which (1) except for regional 
projects, are in countries which are receiving, or which in the 
previous two fiscal years have received, development assistance 
under chapter 1 of part I of this Act, (2) are coordinated with 
and complementary to such assistance, and (3) are specifically 
designed to demonstrate the feasibility and suitability of 
particular kinds of housing or of financial or other 
institutional arrangements. Of the aggregate face value of 
housing guaranties hereafter issued under this title, not less 
than 90 per centum shall be issued for housing suitable for 
families with income below the median income (below the median 
urban income for housing in urban areas) in the country in 
which the housing is located. The face value of guaranties 
issued with respect to housing in any country shall not exceed 
$25,000,000 in any fiscal year, and the average face value of 
guaranties issued in any fiscal year shall not exceed 
$15,000,000. Notwithstanding the provisions of the first 
sentence of this subsection, the President is authorized to 
issue housing guaranties until September 30, 1977, as follows: 
In Israel, not exceeding a face amount of $50,000,000, and in 
Portugal, not exceeding a face amount of $20,000,000.''.

                           [famine prevention

    [Sec. 312. Chapter 2 of part I of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new title:

        [``TITLE XII--FAMINE PREVENTION AND FREEDOM FROM HUNGER

    [``Sec. 296. General Provisions.--(a) The Congress declares 
that, in order to prevent famine and establish freedom from 
hunger, the United States should strengthen the capacities of 
the United States land-grant and other eligible universities in 
program-related agricultural institutional development and 
research, consistent with section 103 and 103A, should improve 
their participation in the United States Government's 
international efforts to apply more effective agricultural 
sciences to the goal of increasing world food production, and 
in general should provide increased and longer term support to 
the application of science to solving food and nutrition 
problems of the developing countries.
    [``The Congress so declares because it finds--
            [``(1) that the establishment, endowment, and 
        continuing support of land-grant universities in the 
        United States by Federal, State, and county governments 
        has led to agricultural progress in this country;
            [``(2) that land-grant and other universities in 
        the United States have demonstrated over many years 
        their ability to cooperate with foreign agricultural 
        institutions in expanding indigenous food production 
        for both domestic and international markets;
            [``(3) that, in a world of growing population with 
        rising expectations, increased food production and 
        improved distribution, storage, and marketing in the 
        developing countries is necessary not only to prevent 
        hunger but to build the economic base for growth, and 
        moreover, that the greatest potential for increasing 
        world food supplies is in the developing countries 
        where the gap between food need and food supply is the 
        greatest and current yields are lowest;
            [``(4) that increasing and making more secure the 
        supply of food is of greatest benefit to the poorest 
        majority in the developing world;
            [``(5) that research, teaching, and extension 
        activities, and appropriate institutional development 
        therefor are prime factors in increasing agricultural 
        production abroad (as well as in the United States) and 
        in improving food distribution, storage, and marketing;
            [``(6) moreover, that agricultural research abroad 
        has in the past and will continue in the future to 
        provide benefits for agriculture in the United States 
        and that increasing the availability of food of higher 
        nutritional quality is of benefit to all; and
            [``(7) that universities need a dependable source 
        of Federal funding, as well as other financing, in 
        order to expand, or in some cases to continue, their 
        efforts to assist in increasing agricultural production 
        in developing countries.
    [``(b) Accordingly, the Congress declares that, in order to 
prevent famine and establish freedom from hunger, various 
components must be brought together in order to increase world 
food production, including--
            [``(1) strengthening the capabilities of 
        universities to assist in increasing agricultural 
        production in developing countries;
            [``(2) institution-building programs for 
        development of national and regional agricultural 
        research and extension capacities in developing 
        countries which need assistance;
            [``(3) international agricultural research centers;
            [``(4) contract research; and
            [``(5) research program grants.
    [``(c) The United States should--
            [``(1) effectively involve the United States land-
        grant and other eligible universities more extensively 
        in each component;
            [``(2) provide mechanisms for the universities to 
        participate and advise in the planning, development, 
        implementation, and administration of each component; 
        and
            [``(3) assist such universities in cooperative 
        joint efforts with--
                    [``(A) agricultural institutions in 
                developing nations, and
                    [``(B) regional and international 
                agricultural research centers,
        directed to strengthening their joint and respective 
        capabilities and to engage them more effectively in 
        research, teaching, and extension activities for 
        solving problems in food production, distribution, 
        storage, marketing, and consumption in agriculturally 
        underdeveloped nations.
    [``(d) As used in this title, the term `universities' means 
those colleges or universities in each State, territory, or 
possession of the United States, or the District of Columbia, 
now receiving, or which may hereafter receive, benefits under 
the Act of July 2, 1862 (known as the First Morrill Act), or 
the Act of August 30, 1890 (known as the Second Morrill Act), 
which are commonly known as `land-grant' universities; 
institutions now designated or which may hereafter be 
designated as sea-grant colleges under the Act of October 15, 
1966 (known as the National Sea Grant College and Program Act), 
which are commonly known as sea-grant colleges; and other 
United States colleges and universities which--
            [``(1) have demonstrable capacity in teaching, 
        research, and extension activities in the agricultural 
        sciences; and
            [``(2) can contribute effectively to the attainment 
        of the objectives of this title.
    [``(e) As used in this title, the term `Administrator' 
means the Administrator of the Agency for International 
Development.
    [``(f) As used in this title, the term `agriculture' shall 
be considered to include aquaculture and fisheries.
    [``(g) As used in this title, the term `farmers' shall be 
considered to include fishermen and other persons employed in 
cultivating and harvesting food resources from salt and fresh 
waters.
    [``Sec. 297. General Authority.--(a) To carry out the 
purposes of this title, the President is authorized to provide 
assistance on such terms and conditions as he shall determine--
            [``(1) to strengthen the capabilities of 
        universities in teaching, research, and extension work 
        to enable them to implement current programs authorized 
        by paragraphs (2), (3), (4), and (5) of this 
        subsection, and those proposed in the report required 
        by section 300 of this title;
            [``(2) to build and strengthen the institutional 
        capacity and human resource skills of agriculturally 
        developing countries so that these countries may 
        participate more fully in the international 
        agricultural problem-solving effort and to introduce 
        and adapt new solutions to local circumstances;
            [``(3) to provide program support for long-term 
        collaborative university research on food production, 
        distribution, storage, marketing, and consumption;
            [``(4) to involve universities more fully in the 
        international network of agricultural science, 
        including the international research centers, the 
        activities of international organizations such as the 
        United Nations Development Program and the Food and 
        Agriculture Organization, and the institutions of 
        agriculturally developing nations; and
            [``(5) to provide program support for international 
        agricultural research centers, to provide support for 
        research projects identified for specific problem-
        solving needs, and to develop and strengthen national 
        research systems in the developing countries.
    [``(b) Programs under this title shall be carried out so as 
to--
            [``(1) utilize and strengthen the capabilities of 
        universities in--
                    [``(A) developing capacity in the 
                cooperating nation for classroom teaching in 
                agriculture, plant and animal sciences, human 
                nutrition, and vocational and domestic arts and 
                other relevant fields appropriate to local 
                needs;
                    [``(B) agricultural research to be 
                conducted in the cooperating nations, at 
                international agricultural research centers, or 
                in the United States;
                    [``(C) the planning, initiation, and 
                development of extension services through which 
                information concerning agriculture and related 
                subjects will be made available directly to 
                farmers and farm families in the agriculturally 
                developing nations by means of education and 
                demonstration; or
                    [``(D) the exchange of educators, 
                scientists, and students for the purpose of 
                assisting in successful development in the 
                cooperating nations;
            [``(2) take into account the value to United States 
        agriculture of such programs, integrating to the extent 
        practicable the programs and financing authorized under 
        this title with those supported by other Federal or 
        State resources so as to maximize the contribution to 
        the development of agriculture in the United States and 
        in agriculturally developing nations; and
            [``(3) whenever practicable, build on existing 
        programs and institutions including those of the 
        universities and the United States Department of 
        Agriculture and the United States Department of 
        Commerce.
    [``(c) To the maximum extent practicable, activities under 
this section shall (1) be designed to achieve the most 
effective interrelationship among the teaching of agricultural 
sciences, research, and extension work, (2) focus primarily on 
the needs of agricultural producers, (3) be adapted to local 
circumstances, and (4) be carried out within the developing 
countries.
    [``(d) The President shall exercise his authority under 
this section through the Administrator.
    [``Sec. 298. Board for International Food and Agricultural 
Development.--(a) To assist in the administration of the 
programs authorized by this title, the President shall 
establish a permanent Board for International Food and 
Agricultural Development (hereafter in this title referred to 
as the `Board') consisting of seven members, not less than four 
to be selected from the universities. Terms of members shall be 
set by the President at the time of appointment. Members of the 
Board shall be entitled to such reimbursement for expenses 
incurred in the performance of their duties (including per diem 
in lieu of subsistence while away from their homes or regular 
place of business) as the President deems appropriate.
    [``(b) The Board's general areas of responsibility shall 
include, but not be limited to--
            [``(1) participating in the planning development, 
        and implementation of,
            [``(2) initiating recommendations for, and
            [``(3) monitoring of,
the activities described in section 297 of this title.
    [``(c) The Board's duties shall include, but not 
necessarily be limited to--
            [``(1) participating in the formulation of basic 
        policy, procedures, and criteria for project proposal 
        review, selection, and monitoring;
            [``(2) developing and keeping current a roster of 
        universities--
                    [``(A) interested in exploring their 
                potential for collaborative relationships with 
                agricultural institutions, and with scientists 
                working on significant programs designed to 
                increase food production in developing 
                countries,
                    [``(B) having capacity in the agricultural 
                sciences,
                    [``(C) able to maintain an appropriate 
                balance of teaching, research, and extension 
                functions,
                    [``(D) having capacity, experience, and 
                commitment with respect to international 
                agricultural efforts, and
                    [``(E) able to contribute to solving the 
                problems addressed by this title;
            [``(3) recommending which developing nations could 
        benefit from programs carried out under this title, and 
        identifying those nations which have an interest in 
        establishing or developing agricultural institutions 
        which engage in teaching, research, or extension 
        activities;
            [``(4) reviewing and evaluating memorandums of 
        understanding or other documents that detail the terms 
        and conditions between the Administrator and 
        universities participating in programs under this 
        title;
            [``(5) reviewing and evaluating agreements and 
        activities authorized by this title and undertaken by 
        universities to assure compliance with the purpose of 
        this title;
            [``(6) recommending to the Administrator the 
        apportionment of funds under section 297 of this title; 
        and
            [``(7) assessing the impact of programs carried out 
        under this title in solving agricultural problems in 
        the developing nations.
    [``(d) The President may authorize the Board to create such 
subordinate units as may be necessary for the performance of 
its duties, including but not limited to the following:
            [``(1) a Joint Research Committee to participate in 
        the administration and development of the collaborative 
        activities described in section 297 (a)(3) of this 
        title; and
            [``(2) a Joint Committee on Country Programs which 
        shall assist in the implementation of the bilateral 
        activities described in sections 297(a)(2), 297(a)(4), 
        and 297(a)(5).
    [``(e) In addition to any other functions assigned to and 
agreed to by the Board, the Board shall be consulted in the 
preparation of the annual report required by section 300 of 
this title and on other agricultural development activities 
related to programs under this title.
    [``Sec. 299. Authorization.--(a) The President is 
authorized to use any of the funds hereafter made available 
under section 103 of this Act to carry out the purposes of this 
title. Funds made available for such purposes may be used 
without regard to the provisions of sections 110(b), 211(a), 
and 211(d) of this Act.
    [``(b) Foreign currencies owned by the United States and 
determined by the Secretary of the Treasury to be excess to the 
needs of the United States shall be used to the maximum extent 
possible in lieu of dollars in carrying out the provisions of 
this title.
    [``(c) Assistance authorized under this title shall be in 
addition to any allotments or grants that may be made under 
other authorizations.
    [``(d) Universities may accept and expend funds from other 
sources, public and private, in order to carry out the purposes 
of this title. All such funds, both prospective and inhand, 
shall be periodically disclosed to the Administrator as he 
shall by regulation require, but no less often than in an 
annual report.
    [``Sec. 300. Annual Report.--The President shall transmit 
to the Congress, not later than April 1 of each year, a report 
detailing the activities carried out pursuant to this title 
during the preceding fiscal year and containing a projection of 
programs and activities to be conducted during the subsequent 
five fiscal years. Each report shall contain a summary of the 
activities of the Board established pursuant to section 298 of 
this title and may include the separate views of the Board with 
respect to any aspect of the programs conducted or proposed to 
be conducted under this title.''.

               [international organizations and programs

    [Sec. 313. (a) Section 302 of the Foreign Assistance Act of 
1961 is amended--
            [(1) in subsection (a), by (A) inserting 
        immediately before the period ``, and for the fiscal 
        year 1976, $194,500,000 and for the fiscal year 1977, 
        $219,900,000. Of such amounts, not to exceed $250,000 
        during the fiscal year 1976 shall be available for 
        contribution to the Namibia Institute'', (B) inserting 
        ``(1)'' immediately after ``(a)'' and (C) adding at the 
        end of the subsection the following new paragraph:
            [``(2) The Congress reaffirms its support for the 
        work of the Inter-American Commission on Human Rights. 
        To permit such Commission to better fulfill its 
        function of insuring observance and respect for human 
        rights within this hemisphere, not less than $357,000 
        of the amount appropriated for fiscal year 1976 and 
        $358,000 of the amount appropriated for fiscal year 
        1977, for contributions to the Organization of American 
        States, shall be used only for budgetary support for 
        the Inter-American Commission on Human Rights.'';
            [(2) in subsection (b)(1), by striking out 
        ``$51,220,000'' and inserting in lieu thereof 
        ``$61,220,000'';
            [(3) in subsection (b)(2), by inserting ``and for 
        use beginning in the fiscal year 1976, $27,000,000,'' 
        immediately after ``fiscal year 1975, $14,500,000,''; 
        and
            [(4) in subsection (d) by striking out ``1974 and 
        1975, $18,000,000'' and inserting in lieu thereof 
        ``1976 and 1977, $20,000,000''.
    [``(b) Section 54 of the Foreign Assistance Act of 1974 is 
amended by striking out ``part III'' and inserting in lieu 
thereof ``part I''.
    [``(c) Section 301 of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
subsection:
    [``(f) The President is hereby authorized to permit United 
States participation in the International Fertilizer 
Development Center and is authorized to use any of the funds 
made available under this part for the purpose of furnishing 
assistance to the Center on such terms and conditions as he may 
determine.''.

          [assistance to former portuguese colonies in africa

    [Sec. 314. Section 496 of the Foreign Assistance Act of 
1961 is amended--
            [(1) by inserting ``(a)'' immediately after the 
        section caption;
            [(2) by striking out ``$5,000,000'' and inserting 
        in lieu thereof ``$7,750,000'';
            [(3) by striking out ``$20,000,000'' and inserting 
        in lieu thereof ``$17,250,000''; and
            [(4) by adding at the end thereof the following new 
        subsections:
    [``(b) Notwithstanding the provisions of section 620(r) of 
this Act, the United States is authorized to forgive the 
liability incurred by the Government of the Cape Verde Islands 
for the repayment of a $3,000,000 loan on June 30, 1975.
    [``(c) The President is authorized to use up to $30,000,000 
of the funds made available under this part for the fiscal year 
1976, in addition to funds otherwise available for such 
purposes, to provide development assistance in accordance with 
chapter 1 or relief and rehabilitation assistance in accordance 
with chapter 9 (including assistance through international or 
private voluntary organizations) to countries and colonies in 
Africa which were, prior to April 25, 1974, colonies of 
Portugal.''.

                [furnishing of services and commodities

    [Sec. 315. Section 607(a) of the Foreign Assistance Act is 
amended by deleting the second full sentence, and inserting in 
lieu thereof the following: ``Such advances or reimbursements 
may be credited to the currently applicable appropriation, 
account, or fund of the agency concerned and shall be available 
for the purposes for which such appropriation, account, or fund 
is authorized to be used, under the following circumstances:
            [``(1) Advances or reimbursements which are 
        received under this section within one hundred and 
        eighty days after the close of the fiscal year in which 
        such services and commodities are delivered.
            [``(2) Advances or reimbursements received pursuant 
        to agreements executed under this section in which 
        reimbursement will not be completed within one hundred 
        and eighty days after the close of the fiscal year in 
        which such services and commodities are delivered: 
        Provided, That such agreements require the payment of 
        interest at the current rate established pursuant to 
        section 2(b)(1)(B) of the Export-Import Bank Act of 
        1945 (59 Stat. 526), and repayment of such principal 
        and interest does not exceed a period of three years 
        from the date of signing of the agreement to provide 
        the service: Provided further, That funds available for 
        this paragraph in any fiscal year shall not exceed 
        $1,000,000 of the total funds authorized for use in 
        such fiscal year by chapter 1 of part I of this Act, 
        and shall be available only to the extent provided in 
        appropriation Acts. Interest shall accrue as of the 
        date of disbursement to the agency or organization 
        providing such services.''.

             [support of reimbursable development programs

    [Sec. 316. Section 661 of the Foreign Assistance Act of 
1961 is amended by striking out ``in each of the fiscal years 
1975 and 1976'' and inserting in lieu thereof ``in the fiscal 
year 1975, $2,000,000 in the fiscal year 1976, and $2,000,000 
in the fiscal year 1977,''.

               [transition provisions for interim quarter

    [Sec. 317. Part III of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the following new 
section:
    [``Sec. 665. Transitions Provisions for Interim Quarter.--
There are authorized to be appropriated for the period July 1, 
1976, through September 30, 1976, such amounts as may be 
necessary to conduct programs and activities for which funding 
was authorized for fiscal year 1976 by the International 
Development and Food Assistance Act of 1975, in accordance with 
the provisions applicable to such programs and activities for 
such fiscal year, except that the total amount appropriated for 
such period shall not exceed one-fourth of the total amount 
authorized to be appropriated for the fiscal year 1976 for such 
programs and activities.''.

            [discrimination against united states personnel

    [Sec. 318. Part III of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the following new 
section:
    [``Sec. 666. Discrimination Against United States 
Personnel.--(a) The President shall not take into account, in 
assigning officers and employees of the United States to carry 
out any economic development assistance programs funded under 
this Act in any foreign country, the race, religion, national 
origin, or sex of any such officer or employee. Such 
assignments shall be made solely on the basis of ability and 
relevant experience.
    [``(b) Effective six months after the date of enactment of 
the International Development and Food Assistance Act of 1975, 
or on such earlier date as the President may determine, none of 
the funds made available under this Act may be used to provide 
economic development assistance to any country which objects to 
the presence of any officer or employee of the United States 
who is present in such country for the purpose of carrying out 
any program of economic development assistance authorized by 
the provisions of this Act on the basis of the race, religion, 
national origin, or six of such officer or employee.
    [``(c) The Secretary of State shall promulgate such rules 
and regulations as he may deem necessary to carry out the 
provisions of this section.''.

                          [operating expenses

    [Sec. 319. Part III of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the following new 
section:
    [``Sec. 667. Operating Expenses.--Nothing in this Act is 
intended to preclude the Committees on Appropriations, in 
appropriation legislation, from setting a ceiling on operating 
expenses of the agency primarily responsible for administering 
part I and limiting the availability of other sums therefor.''.

                   [limitation on assistance to chile

    [Sec. 320. Notwithstanding any other provision of law, the 
total amount of economic assistance (including but not limited 
to housing guaranties and sales under title I of the 
Agricultural Trade Development and Assistance Act of 1954) that 
may be made available to Chile may not exceed $90,000,000 
during the fiscal year 1976.

               [settlement of debt owed the united states

    [Sec. 321. No debt owed to the United States by any foreign 
country with respect to the payment of any loan made under any 
program funded under this Act may be settled in an amount less 
than the full amount of such debt unless the Congress by 
concurrent resolution approves of such settlement.

[participation by other countries in providing assistance to israel or 
                                 egypt

    [Sec. 322. It is the sense of the Senate that the President 
should attempt to negotiate an equitable share of participation 
by the countries of Western Europe, Japan, and the United 
Nations in providing assistance to Israel or Egypt.]
                              ----------                              


                         ACT OF OCTOBER 6, 1975

  AN ACT To authorize appropriations for the Board for International 
 Broadcasting for fiscal year 1976; and to promote improved relations 
    between the United States, Greece, and Turkey, to assist in the 
solution of the refugee problem on Cyprus, and to otherwise strengthen 
                      the North Atlantic Alliance.

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, [That 
section 8(a) of the Board for International Broadcasting Act of 
1973 (22 U.S.C. 2877(a)) is amended--
         [(1) by striking out ``$49,990,000 for fiscal year 
        1975, of which not less than $75,000 shall be available 
        solely to initiate broadcasts in the Estonian language 
        and not less than $75,000 shall be available solely to 
        initiate broadcasts in the Latvian language'' in the 
        first sentence and inserting in lieu thereof 
        ``$65,640,000 for fiscal year 1976''; and
         [(2) by striking out ``fiscal year 1975'' in the 
        second sentence and inserting in lieu thereof ``fiscal 
        year 1976''.
    [Sec. 2. (a)(1) The Congress reaffirms the policy of the 
United States to seek to improve and harmonize relations among 
the allies of the United States and between the United States 
and its allies, in the interest of mutual defense and national 
security. In particular, the Congress recognizes the special 
contribution to the North Atlantic Alliance of Greece and 
Turkey by virtue of their geographic position on the 
southeastern flank of Europe and is prepared to assist in the 
modernization and strengthening of their respective armed 
forces.
    [(2) The Congress further reaffirms the policy of the 
United States to alleviate the suffering of refugees and other 
victims of armed conflict and to foster and promote 
international efforts to ameliorate the conditions which 
prevent such persons from resuming normal and productive lives. 
The Congress, therefore, calls upon the President to encourage 
and to cooperate in the implementation of multilateral 
programs, under the auspices of the Secretary General of the 
United Nations, the United Nations High Commissioner for 
Refugees, or other appropriate international agencies, for the 
relief of and assistance to refugees and other persons 
disadvantaged by the hostilities on Cyprus pending a final 
settlement of the Cyprus refugee situation in the spirit of 
Security Council Resolution 361.
    [(b)(1) In order that the purposes of this Act may be 
carried out without awaiting the enactment of foreign 
assistance legislation for fiscal year 1976 programs--
            [(A) the President is authorized, notwithstanding 
        section 620 of the Foreign Assistance Act of 1961, to 
        furnish to the Government of Turkey those defense 
        articles and defense services with respect to which 
        contracts of sale were signed under section 21 or 
        section 22 of the Foreign Military Sales Act on or 
        before February 5, 1975, and to issue licenses for the 
        transportation to the Government of Turkey of arms, 
        ammunition, and implements of war (including technical 
        data relating thereto): Provided, That such 
        authorization shall be effective only while Turkey 
        shall observe the cease-fire and shall neither increase 
        its forces on Cyprus nor transfer to Cyprus any United 
        States supplied implements of war: Provided further, 
        That the authorities contained in this section shall 
        not become effective unless and until the President 
        determines and certifies to the Congress that the 
        furnishing of defense articles and defense services, 
        and the issuance of licenses for the transportation of 
        implements of war, arms and ammunition under this 
        section are important to the national security 
        interests of the United States; and
            [(B) the President is requested to initiate 
        discussions with the Government of Greece to determine 
        the most urgent needs of Greece for economic and 
        military assistance.
            [(C) the President is requested to initiate 
        discussions with the Government of Turkey concerning 
        effective means of preventing the diversion of opium 
        poppy into illicit channels.
    [(2) The President is directed to submit to the Speaker of 
the House of Representatives and to the Foreign Relations and 
Appropriations Committees of the Senate within sixty days after 
the enactment of this Act a report on discussions conducted 
under subsections (b)(1) (B) and (C), together with his 
recommendations for economic and military assistance to Greece 
for the fiscal year 1976.
    [(c)(1) Section 620(x) of the Foreign Assistance Act of 
1961 is amended by striking out all after the word 
``Provided,'' and inserting in lieu thereof the following: 
``That the President is authorized to suspend the provisions of 
this section and of section 3(c) of the Foreign Military Sales 
Act only with respect to sales, credits, and guaranties under 
the Foreign Military Sales Act, as amended, for the procurement 
of such defense articles and defense services as the President 
determines and certifies to the Congress are necessary in order 
to enable Turkey to fulfill her defense responsibilities as a 
member of the North Atlantic Treaty Organization. Any such 
suspension shall be effective only while Turkey shall observe 
the cease-fire and shall neither increase its forces on Cyprus 
nor transfer to Cyprus any United States supplied arms, 
ammunition, and implements of war.''.
    [(2) Section 620(x) of the Foreign Assistance Act of 1961 
is further amended by designating the present subsection as 
paragraph (1) and by adding at the end thereof the following 
new paragraph:
    [``(2) The President shall submit to the Congress within 
sixty days after the enactment of this paragraph, and at the 
end of each succeeding sixty-day period, a report on progress 
made during such period toward the conclusion of a negotiated 
solution of the Cyprus conflict.''.
    [(3) Nothing in this section shall be construed as 
authorizing (A) military assistance to Turkey under chapter 2 
of part II of the Foreign Assistance Act of 1961, or (B) sales, 
credits, or guaranties to or on behalf of Turkey under the 
Foreign Military Sales Act for the procurement of defense 
articles or defense services not determined by the President to 
be needed for the fulfillment of Turkey's North Atlantic Treaty 
Organization responsibilities.
    [(4) Pursuant to the provisions of this section, in the 
case of any letter of offer to sell any defense article or 
defense service pursuant to the Foreign Military Sales Act for 
$25,000,000 or more, the President shall submit to the Speaker 
of the House of Representatives and to the chairman of the 
Committee on Foreign Relations of the Senate a statement 
containing (A) a brief description of the defense article or 
defense service to be offered, (B) the dollar amount of the 
proposed sale, (C) the United States Armed force which is 
making the sale, and (D) the date on which any letter of offer 
to sell is to be issued. The letter of offer shall not be 
issued if the Congress, within twenty calendar days after 
receiving any such statement, adopts a concurrent resolution 
stating in effect that it objects to such proposed sale.
    [(5) This subsection shall become effective only upon 
enactment of foreign assistance legislation authorizing sales, 
credits, and guaranties under the Foreign Military Sales Act 
for fiscal year 1976.]
                              ----------                              


                     FOREIGN ASSISTANCE ACT OF 1974

   AN ACT To amend the Foreign Assistance Act of 1961, and for other 
                               purposes.

    Be it enacted by Senate and House of Representatives of the 
United States of America in Congress assembled, [That this Act 
may be cited as the ``Foreign Assistance Act of 1974.''

                          [food and nutrition

    [Sec. 2. Section 103 of the Foreign Assistance Act of 1961 
is amended--
            [(1) by inserting the subsection designation 
        ``(a)'' immediately before ``In'';
            [(2) by striking out ``$291,000,000 for each of the 
        fiscal years 1974 and 1975'' and inserting in lieu 
        thereof ``$291,000,000 for the fiscal year 1974, and 
        $500,000,000 for the fiscal year 1975''; and
            [(3) by adding at the end thereof the following:
    [``(b) The Congress finds that, due to rising world food, 
fertilizer, and petroleum costs, human suffering and 
deprivation are growing in the poorest and most slowly 
developing countries. The greatest potential for significantly 
expanding world food product at relatively low cost lies in 
increasing the productivity of small farmers who constitute a 
majority of the nearly one billion people living in those 
countries. Increasing the emphasis on rural development and 
expanded food production in the poorest nations of the 
developing world is a matter of social justice as well as an 
important factor in slowing the rate of inflation in the 
industrialized countries. In the allocation of funds under this 
section, special attention should be given to increasing 
agricultural production in the countries with per capita 
incomes under $300 a year and which are the most severely 
affected by sharp increases in worldwide commodity prices.''

                          [population planning

    [Sec. 4. The Foreign Assistant Act of 1961 is amended as 
follows:
            [(1) In section 104, strike out ``$145,000,000 for 
        each of the fiscal years 1974 and 1975'' and insert in 
        lieu thereof ``$145,000,000 for the fiscal year 1974, 
        and $165,000,000 for the fiscal year 1975''.
            [(2) In section 292, strike out ``$130,000,000'' 
        and insert in lieu thereof ``$150,000,000''.

               [education and human resources development

    [Sec. 5. Section 105 of the Foreign Assistance Act of 1961 
is amended by striking out ``$90,000,000 for each of the fiscal 
years 1974 and 1975'' and inserting in lieu thereof 
``$90,000,000 for the fiscal year 1974, and $92,000,000 for the 
fiscal year 1975''.

                     [disposition of loan receipts

    [Sec. 6. Section 203 of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the following:
    [``On and after July 1, 1975, none of the dollar receipts 
paid during any fiscal year from loans made pursuant to this 
part or from loans made under predecessor foreign assistance 
legislation are authorized to be made available during any 
fiscal year for use for purposes of making loans under chapter 
1 of this part. All such receipts shall be deposited in the 
Treasury as miscellaneous receipts.''

                          [housing guaranties

    [Sec. 7. The Foreign Assistance Act of 1961 is amended as 
follows:
            [(1) In section 221, strike out ``$305,000,000'' 
        and insert in lieu thereof ``$355,000,000''.
            [(2) In section 223(i), strike out ``June 30, 
        1975'' and insert in lieu thereof ``June 30, 1976''.

                     [agricultural credit programs

    [Sec. 8. (a) Title III of chapter 2 of part I of the 
Foreign Assistance Act of 1961 is amended--
            [(1) by striking out the title heading and 
        inserting in lieu thereof the following:

      [``TITLE III--HOUSING AND OTHER CREDIT GUARANTY PROGRAMS'';

            [(2) by inserting immediately after section 222 the 
        following new section:
    [``Sec. 222A. Agricultural and Productive Credit and Self-
Help Community Development Programs.--(a) It is the sense of 
the Congress that in order to stimulate the participation of 
the private sector in the economic development of less-
developed countries in Latin America, the authority conferred 
by this section should be used to establish pilot programs in 
not more than five Latin American countries to encourage 
private banks, credit institutions, similar private lending 
organizations, cooperatives, and private nonprofit development 
organizations to make loans on reasonable terms to organized 
groups and individuals residing in a community for the purpose 
of enabling such groups and individuals to carry out 
agricultural credit and self-help community development 
projects for which they are unable to obtain financial 
assistance on reasonable terms. Agricultural credit and 
assistance for self-help community development projects should 
include, but not be limited to, material and such projects as 
wells, pumps, farm machinery, improved seed, fertilizer, 
pesticides, vocational training, food industry development, 
nutrition projects, improved breeding stock for farm animals, 
sanitation facilities, and looms and other handicraft aids.
    [``(b) To carry out the purposes of subsection (a), the 
agency primarily responsible for administering part I is 
authorized to issue guaranties, on such terms and conditions as 
it shall determine, to private lending institutions, 
cooperatives, and private nonprofit development organizations 
in not more than five Latin American countries assuring against 
loss of not to exceed 50 per centum of the portfolio of such 
loans made by any lender to organized groups or individuals 
residing in a community to enable such groups or individuals to 
carry out agricultural credit and self-help community 
development projects for which they are unable to obtain 
financial assistance on reasonable terms. In no event shall the 
liability of the United States exceed 75 per centum of any one 
loan.
    [``(c) The total face amount of guaranties issued under 
this section outstanding at any one time shall not exceed 
$15,000,000. Not more than 10 per centum of such sum shall be 
provided for any one institution, cooperative, or organization.
    [``(d) The Inter-American Foundation shall be consulted in 
developing criteria for making loans eligible for guaranty 
coverage in Latin America under this section.
    [``(e) Not to exceed $3,000,000 of the guaranty reserve 
established under section 223(b) shall be available to make 
such payments as may be necessary to discharge liabilities 
under guaranties issued under this section or any guaranties 
previously issued under section 240 of this Act.
    [``(f) Funds held by the Overseas Private Investment 
Corporation pursuant to section 236 may be available for 
meeting necessary administrative and operating expenses for 
carrying out the provisions of this section through June 30, 
1976.
    [``(g) The Overseas Private Investment Corporation shall, 
upon enactment of this subsection, transfer to the agency 
primarily responsible for administering part I all obligations, 
assets, and related rights and responsibilities arising out of, 
or related to the predecessor program provided for in section 
240 of this Act.
    [``(h) The authority of this section shall continue until 
December 31, 1977.
    [``(i) Notwithstanding the limitation in subsection (c) of 
this section, foreign currencies owned by the United States and 
determined by the Secretary of the Treasury to be excess to the 
needs of the United States may be utilized to carry out the 
purposes of this section, including the discharge of 
liabilities under this subsection. The authority conferred by 
this subsection shall be in addition to authority conferred by 
any other provision of law to implement guaranty programs 
utilizing excess local currency.
    [``(j) The President shall, on or before January 15, 1976, 
make a detailed report to the Congress on the results of the 
program established under this section, together with such 
recommendations as he may deem appropriate.'':
            [(3) by striking out ``section 221 or section 222'' 
        in section 223(a) and inserting ``section 221, 222, or 
        222A'' in lieu thereof;
            [(4) by striking out ``this title'' in section 
        223(b) and inserting ``section 221 and section 222'' in 
        lieu thereof; and
            [(5) by striking out ``section 221 or section 222'' 
        in section 223(d) and inserting ``section 221, 222, 
        222A, or previously under section 240 of this Act'' in 
        lieu thereof.
    [(b) Title IV of chapter 2 of part I of the Foreign 
Assistance Act of 1961 is amended by striking out section 240.

               [international organizations and programs

    [Sec. 9. (a) Section 302 of the Foreign Assistance Act of 
1961 is amended--
            [(1) by striking out ``for the fiscal year 1975, 
        $150,000,000'' in subsection (a) and inserting in lieu 
        thereof ``for the fiscal year 1975, $165,000,000''; and
            [(2) by adding at the end thereof the following new 
        subsections:
    [``(g) Of the funds made available to carry out this 
chapter for fiscal year 1975, in addition to any other such 
funds to be made available for contributions to the 
International Atomic Energy Agency, not less than $500,000 
shall be made available to such Agency as technical assistance 
in kind. However, a reasonable amount of funds authorized under 
this section shall be made available in fiscal year 1975 to 
strengthen international procedures which are designed to 
prevent the unauthorized dissemination or use of nuclear 
materials. The President shall report to the Congress not later 
than July 1, 1975, concerning actions taken by the United 
States to strengthen the procedures described under the 
preceding sentence.
    [``(h) Congress directs that no funds should be obligated 
or expended, directly or indirectly, to support the United 
Nations Educational, Scientific, and Cultural Organization 
until the President certifies to the Congress that such 
Organization (1) has adopted policies which are fully 
consistent with its educational, scientific, and cultural 
objectives, and (2) has taken concrete steps to correct its 
recent actions of a primarily political character.''

                  [military assistance authorizations

    [Sec. 10. Section 504(a) of the Foreign Assistance Act of 
1961 is amended--
            [(1) by striking out ``$512,500,000 for the fiscal 
        year 1974'' and inserting in lieu thereof 
        ``$600,000,000 for the fiscal year 1975''; and
            [(2) by striking out ``(other than training in the 
        United States)'' and inserting in lieu thereof ``(other 
        than (1) training in the United States, or (2) for 
        Western Hemisphere countries, training in the United 
        States or in the Canal Zone)''.

                           [special authority

    [Sec. 11. Section 506(a) of the Foreign Assistance Act of 
1961 is amended--
            [(1) by striking out ``the fiscal year 1974'' in 
        each place it appears and inserting in lieu thereof 
        ``the fiscal year 1975'' in each such place; and
            [(2) by striking out ``$250,000,000'' and inserting 
        in lieu thereof ``$150,000,000''.

         [military assistance authorizations for south vietnam

    [Sec. 12. Section 513 of the Foreign Assistance Act of 1961 
is amended as follows:
            [(1) Strike out ``Thailand and Laos'' in the 
        caption and insert in lieu thereof ``Thailand and Laos, 
        and South Vietnam''.
            [(2) At the end thereof add the following new 
        subsection:
    [``(c) After June 30, 1976, no military assistance shall be 
furnished by the United States to South Vietnam directly or 
through any other foreign country unless that assistance is 
authorized under this Act or the Foreign Military Sales Act.''

                        [excess defense articles

    [Sec. 13. (a) Section 8 of the Act entitled ``An Act to 
amend the Foreign Military Sales Act, and for other purposes'', 
approved January 12, 1971 (22 U.S.C. 2321b), is amended--
            [(1) by striking out ``$150,000,000'' in subsection 
        (b) and inserting ``$100,000,000'' in lieu thereof; and
            [(2) by inserting immediately before the period in 
        subsection (c) the following: ``, except that for any 
        excess defense article such term shall not include a 
        value for any such article which is less than 33\1/3\ 
        percent of the amount the United States paid for such 
        article when the United States acquired it''.

             [excess defense article value in annual report

    [Sec. 14. Section 634(d) of the Foreign Assistance Act of 
1961 is amended by striking out ``including economic assistance 
and military grants and sales'' and inserting in lieu thereof 
the following: ``including economic assistance, military grants 
(and including for any such grant of any excess defense 
articles, the value of such article expressed in terms of its 
acquisition cost to the United States), and military sales''.

         [stockpiling of defense articles for foreign countries

    [Sec. 15. Chapter 2 of part II of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 514. Stockpiling of Defense Articles for Foreign 
Countries.--(a) Notwithstanding any other provision of law, no 
funds, other than funds made available under this chapter or 
section 401(a) of Public Law 89-367 (80 Stat. 37), or any 
subsequent corresponding legislation, may be obligated for the 
purpose of stockpiling any defense article or war reserve 
material, including the acquisition, storage, or maintenance of 
any war reserve equipment, secondary items, or munitions, if 
such article or material is set aside, reserved, or in any way 
earmarked or intended for future use by any foreign country 
under this Act or such section.
    [``(b) The cost of any such article or material set aside, 
reserved, or in any way earmarked or intended by the Department 
of Defense for future use by, for, or on behalf of the country 
referred to in section 401(a)(1) of Public Law 89-367 (80 Stat. 
37) shall be charged against the limitation specified in such 
section or any subsequent corresponding legislation, for the 
fiscal year in which such article or material is set aside, 
reserved, or otherwise earmarked or intended; and the cost of 
any such article or material set aside, reserved or in any way 
earmarked or intended for future use by, for, or on behalf of 
any other foreign country shall be charged against funds 
authorized under this chapter for the fiscal year in which such 
article or material is set aside, reserved, or otherwise 
earmarked. No such article or material may be made available to 
or for use by any foreign country unless such article or 
material has been charged against the limitation specified in 
such section, or any subsequent corresponding legislation, or 
against funds authorized under this chapter, as appropriate.''

           [military assistance advisory groups and missions

    [Sec. 16. Chapter 2 of part II of the Foreign Assistance 
Act of 1961 is further amended by adding at the end thereof the 
following new section:
    [``Sec. 515. Military Assistance Advisory Groups and 
Missions.--Effective July 1, 1976, an amount equal to each sum 
expended under any provision of law, other than section 504 of 
this Act, with respect to any military assistance advisory 
group, military mission, or other organization of the United 
States performing activities similar to such group or mission, 
shall be deducted from the funds made available under such 
section 504, and (1) if reimbursement of such amount is 
requested by the agency of the United States Government making 
the expenditure, reimbursed to that agency, or (2) if no such 
reimbursement is requested, deposited in the Treasury as 
miscellaneous receipts.''

                 [review of military assistance program

    [Sec. 17. (a) It is the sense of Congress that the policies 
and purposes of the military assistance program conducted under 
chapter 2 of part II of the Foreign Assistance Act of 1961 
should be reexamined in light of changes in world conditions 
and the economic position of the United States in relation to 
countries receiving such assistance; and that the program, 
except for military education and training activities, should 
be reduced and terminated as rapidly as feasible consistent 
with the security and foreign policy requirements of the United 
States.
    [(b) In order to give effect to the sense of Congress 
expressed in subsection (a), the President is directed to 
submit to the first session of the 94th Congress a detailed 
plan for the reduction and eventual elimination of the present 
military assistance program.

                    [security supporting assistance

    [Sec. 18. Section 532 of the Foreign Assistance Act of 1961 
is amended by striking out ``for the fiscal year 1974 not to 
exceed $125,000,000, of which not less than $50,000,000 shall 
be available solely for Israel'' and inserting in lieu thereof 
``for the fiscal year 1975 not to exceed $660,000,000''.

                       [transfer between accounts

    [Sec. 19. (a) Section 610 of the Foreign Assistance Act of 
1961 is amended as follows:
            [(1) In subsection (a), immediately after ``any 
        other provision of this Act'', insert ``(except funds 
        made available under chapter 2 of part II of this 
        Act)''.
            [(2) Add at the end thereof the following new 
        subsection:
    [``(c) Any funds which the President has notified Congress 
pursuant to section 653 that he intends to provide in military 
assistance to any country may be transferred to, and 
consolidated with, any other funds he has notified Congress 
pursuant to such section that he intends to provide to that 
country for development assistance purposes.''
    [(b) Section 614 of such Act is amended by adding at the 
end of subsection (a) the following: ``The authority of this 
section shall not be used to waive the limitations on transfers 
contained in section 610(a) of this Act.''.

                      [limitation on use of funds

    [Sec. 20. (a) Chapter 1 of part I of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 115. Prohibiting Use of Funds for Certain 
Countries.--(a) None of the funds made available to carry out 
this chapter may be used in any fiscal year for any country to 
which assistance is furnished in such fiscal year under chapter 
4 of part II (security supporting assistance), part V 
(assistance for relief and reconstruction of South Vietnam, 
Cambodia, and Laos), part VI (assistance for Middle East peace) 
of this Act, or section 36 of the Foreign Assistance Act of 
1974.
    [``(b) The prohibition contained in subsection (a) may not 
be waived under section 614(a) of this Act or under any other 
provision of law.
    [``(c) This section shall not apply to funds made available 
under section 104 for purposes of title X of chapter 2 of this 
part (programs relating to population growth), funds made 
available for humanitarian assistance through international 
organizations, and funds obligated for regional programs.''

              [change in allocation of foreign assistance

    [Sec. 21. Section 653 of the Foreign Assistance Act of 1961 
is amended--
            [(1) by striking out all after the period at the 
        end of the first sentence of subsection (a); and
            [(2) by redesignating subsection (b) as subsection 
        (c) and by inserting immediately after subsection (a) 
        the following new subsection:
    [``(b) Notwithstanding any other provision of law, no 
military grant assistance security supporting assistance, 
assistance under chapter 1 of part I of this Act, or assistance 
under part V of this Act, may be furnished to any country or 
international organization in any fiscal year, if such 
assistance exceeds by 10 percent or more the amount of such 
military grant assistance, security supporting assistance, 
assistance under chapter 1 of part I of this Act, or assistance 
under part V of this Act, as the case may be, set forth in the 
report required by subsection (a) of this section, unless--
            [``(1) the President reports to the Congress, at 
        least 10 days prior to the date on which such excess 
        funds are provided, the country or organization to be 
        provided the excess funds, the amount and category of 
        the excess funds, and the justification for providing 
        the excess funds; and
            [``(2) in the case of military grant assistance or 
        security supporting assistance, the President includes 
        in the report under paragraph (1) his determination 
        that it is in the security interest of the United 
        States to provide the excess funds.
This subsection shall not apply if the excess funds provided in 
any fiscal year to any country or international organization 
for any category of assistance are less than $1,000,000.''

              [suspension of military assistance to turkey

    [Sec. 22. Section 620 of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the following new 
subsection:
    [``(x) All military assistance, all sales of defense 
articles and services (whether for cash or by credit, guaranty, 
or any other means), and all licenses with respect to the 
transportation of arms, ammunitions, and implements of war 
(including technical data relating thereto) to the Government 
of Turkey, shall be suspended on the date of enactment of this 
subsection unless and until the President determines and 
certifies to the Congress that the Government of Turkey is in 
compliance with the Foreign Assistance Act of 1961, the Foreign 
Military Sales Act, and any agreement entered into under such 
Acts, and that substantial progress toward agreement has been 
made regarding military forces in Cyprus: Provided, That the 
President is authorized to suspend the provisions of this 
section and such Acts if he determines that such suspension 
will further negotiations for a peaceful solution of the Cyprus 
conflict. Any such suspension shall be effective only until 
February 5, 1975, and only if, during that time, Turkey shall 
observe the ceasefire and shall neither increase its forces on 
Cyprus nor transfer to Cyprus any United States supplied 
implements of war.''

       [prohibitions on aid to nations trading with north vietnam

    [Sec. 23. Section 620 of the Foreign Assistance Act of 1961 
is amended by inserting before the period in subsection (n) of 
the following: ``, unless the President determines that such 
loans, credits, guaranties, grants, other assistance, or sales 
are in the national interest of the United States''.

                         [assistance to greece

    [Sec. 24. Section 620(v) of the Foreign Assistance Act of 
1961 is repealed.

                       [FAMINE OR DISASTER RELIEF

    [Sec. 28. (a) Section 639 of the Foreign Assistance Act of 
1961, dealing with famine or disaster relief, is amended to 
read as follows:
    [``Sec. 639. Famine or Disaster Relief.--Notwithstanding 
any other provision of this or any other Act, the President may 
provide famine or disaster relief assistance to any foreign 
country on such terms and conditions as he may determine. For 
fiscal year 1975 there is authorized to be appropriated not to 
exceed $40,000,000, to provide such assistance. The President 
shall submit quarterly reports during such fiscal year to the 
Committee on Foreign Relations and the Committee on 
Appropriations of the Senate and the Speaker of the House of 
Representatives on the programing and obligation of funds under 
this section.''
    [(b) Of the funds appropriated to carry out section 639 of 
the Foreign Assistance Act of 1961, during fiscal year 1975 not 
less than $25,000,000 shall be made available to Cyprus for the 
purposes of such section 639.
    [(c) Section 451 of the Foreign Assistance Act of 1961, 
dealing with the contingency fund, is amended to read as 
follows:
    [``Sec. 451. Contingency Fund.--(a) There is authorized to 
be appropriated to the President for the fiscal year 1975 not 
to exceed $5,000,000, to provide assistance authorized by this 
part or by section 639 for any emergency purpose only in 
accordance with the provisions applicable to the furnishing of 
such assistance.
    [``(b) The President shall submit quarterly reports to the 
Committee on Foreign Relations and the Committee on 
Appropriations of the Senate and the Speaker of the House of 
Representatives on the programing and obligation of funds under 
this section.
    [``(c) No part of this fund shall be used to pay for any 
gifts to any officials of any foreign government made 
heretofore or hereafter.''.

                [ACCESS TO CERTAIN MILITARY BASES ABROAD

    [Sec. 29. (a) Chapter 3 of part III of the Foreign 
Assistance Act of 1961 is amended by adding at the end thereof 
the following new section:
    [``Sec. 659. Access to Certain Military Bases Abroad.--None 
of funds authorized to be appropriated for foreign assistance 
(including foreign military sales, credit sales, and 
guaranties) under this Act may be used to provide any kind of 
assistance to any foreign country in which a military base is 
located if--
            [``(1) such base was constructed or is being 
        maintained or operated with funds furnished by the 
        United States; and
            [``(2) personnel of the United States carry out 
        military operations from such base;
unless and until the President has determined that the 
government of such country has, consistent with security 
authorized access, on a regular basis, to bona fide news media 
correspondents of the United States to such military base.''
    [(b) Section 29 of the Foreign Assistance Act of 1973 is 
repealed.

                      [PROHIBITING POLICE TRAINING

    [Sec. 30. (a) Chapter 3 of part III of the Foreign 
Assistance Act of 1961, as amended by section 23(a) of this 
Act, is further amended by adding at the end thereof the 
following new section:
    [``Sec. 660. Prohibiting Police Training.--(a) On and after 
July 1, 1975, none of the funds made available to carry out 
this Act, and none of the local currencies generated under this 
Act, shall be used to provide training or advice, or provide 
any financial support, for police, prisons, or other law 
enforcement forces for any foreign government or any program of 
internal intelligence or surveillance on behalf of any foreign 
government within the United States or abroad.
    [``(b) Subsection (a) of this section shall not apply--
            [``(1) with respect to assistance rendered under 
        section 515(c) of the Omnibus Crime Control and Safe 
        Streets Act of 1968, with respect to any authority of 
        the Drug Enforcement Administration or the Federal 
        Bureau of Investigation which relates to crimes of the 
        nature which are unlawful under the laws of the United 
        States, or with respect to assistance authorized under 
        section 482 of this Act; or
            [``(2) to any contract entered into prior to the 
        date of enactment of this section with any person, 
        organization, or agency of the United States Government 
        to provide personnel to conduct, or assist in 
        conducting, any such program.
Notwithstanding clause (2), subsection (a) shall apply to any 
renewal or extension of any contract referred to in such 
paragraph entered into on or after such date of enactment.''
    [(b) Section 112 of the Foreign Assistance Act of 1961 is 
repealed.

                   [REIMBURSABLE DEVELOPMENT PROGRAMS

    [Sec. 31. The Foreign Assistance Act of 1961 is amended by 
adding at the end of part III the following new section:
    [``Sec. 661. Reimbursable Development Programs.--The 
President is authorized to use up to $1,000,000 of the funds 
made available for the purposes of this Act in each of the 
fiscal years 1975 and 1976 to work with friendly countries, 
especially those in which United States development programs 
have been concluded or those not receiving assistance under 
part I of this Act, in (1) facilitating open and fair access to 
natural resources of interest to the United States and (2) 
stimulation of reimbursable aid programs consistent with part I 
of this Act. Any funds used for purposes of this section may be 
used notwithstanding any other provision of this Act.''

          [INTELLIGENCE ACTIVITIES AND EXCHANGES OF MATERIALS

    [Sec. 32. The Foreign Assistance Act of 1961 is amended by 
adding at the end of part III the following new sections:
    [``Sec. 662. Limitation on Intelligence Activities.--(a) No 
funds appropriated under the authority of this or any other Act 
may be expended by or on behalf of the Central Intelligence 
Agency for operations in foreign countries, other than 
activities intended solely for obtaining necessary 
intelligence, unless and until the President finds that each 
such operation is important to the national security of the 
United States and reports, in a timely fashion, a description 
and scope of such operation to the appropriate committees of 
the Congress, including the Committee on Foreign Relations of 
the United States Senate and the Committee on Foreign Affairs 
of the United States House of Representatives.
    [``(b) The provisions of subsection (a) of this section 
shall not apply during military operations initiated by the 
United States under a declaration of war approved by the 
Congress or an exercise of powers by the President under the 
War Powers Resolution.
    [``Sec. 663. Exchanges of Certain Materials.--(a) 
Notwithstanding any other provision of law, whenever the 
President determines it is in the United States national 
interest, he shall furnish assistance under this Act or shall 
furnish defense articles or services under the Foreign Military 
Sales Act pursuant to an agreement with the recipient of such 
assistance, articles, or services which provides that such 
recipient may only obtain such assistance, articles, or 
services in exchange for any necessary or strategic raw 
material controlled by such recipient. For the purpose of this 
section, the term `necessary or strategic raw material' 
includes petroleum, other fossil fuels, metals, minerals, or 
any other natural substance which the President determines is 
in short supply in the United States.
    [``(b) The President shall allocate any necessary or 
strategic raw material transferred to the United States under 
this section to any appropriate agency of the United States 
Government for stockpiling, sale, transfer, disposal, or any 
other purpose authorized by law.
    [``(c) Funds received from any disposal of materials under 
subsection (b) shall be deposited as miscellaneous receipts in 
the United States Treasury.''.

  [waiver of prohibition against assistance to countries engaging in 
                       certain trade or shipping

    [Sec. 33. Chapter 3 of part III of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 664. Waiver of Prohibition Against Assistance to 
Countries Engaging in Certain Trade.--Any provision of this Act 
which prohibits assistance to a country because that country is 
engaging in trade with a designated country, or because that 
country permits ships or aircraft under its registry to 
transport any equipment, materials, or commodities to or from 
such designated country, may be waived by the President if he 
determines that such waiver is in the national interest and 
reports such determination to the Congress.''.

                   [policy with respect to indochina

    [Sec. 34. (a) The Congress finds that the cease-fire 
provided for in the Paris Agreement on Ending the War and 
Restoring Peace in Vietnam has not been observed by any of the 
Vietnamese parties to the conflict. Military operations of an 
offensive and defensive nature continue throughout South 
Vietnam. In Cambodia, the civil war between insurgent forces 
and the Lon Nol government has intensified, resulting in 
widespread human suffering and the virtual destruction of the 
Cambodian economy.
    [(b) The Congress further finds that continuation of the 
military struggles in South Vietnam and Cambodia are not in the 
interest of the parties directly engaged in the conflicts, the 
people of Indochina or world peace. In order to lessen the 
human suffering in Indochina and to bring about a genuine peace 
there, the Congress urges and requests the President and the 
Secretary of State to undertake the following measures:
            [(1) to initiate negotiations with representatives 
        of the Soviet Union and the People's Republic of China 
        to arrange a mutually agreed-upon and rapid de-
        escalation of military assistance on the part of the 
        three principal suppliers of arms and material to all 
        Vietnamese and Cambodian parties engaged in conflict;
            [(2) to urge by all available means that the 
        Government of the Khmer Republic enter in negotiations 
        with representatives of the Khmer Government of 
        National Union for the purpose of arranging an 
        immediate cease-fire and political settlement of the 
        conflict; and to use all available means to establish 
        contact with the Khmer Government of National Union, 
        and to urge them to participate in such negotiations. 
        The United States should urge all Cambodian parties to 
        use the good offices of the United Nations or a 
        respected third country for the purpose of bringing an 
        end to hostilities and reaching a political settlement;
            [(3) to utilize any public or private forum to 
        negotiate directly with representatives of the 
        Democratic Republic of Vietnam, the Provisional 
        Revolutionary Government, and the Republic of Vietnam 
        to seek a new cease-fire in Vietnam and full compliance 
        with the provisions of the Paris Agreement on Ending 
        the War and Restoring Peace in Vietnam, including a 
        full accounting for Americans missing in Indochina;
            [(4) to reconvene the Paris Conference to seek full 
        implementation of the provisions of the Agreement of 
        January 27, 1973, on the part of all Vietnamese parties 
        to the conflict; and
            [(5) to maintain regular and full consultation with 
        the appropriate committees of the Congress and report 
        to the Congress and the Nation at regular intervals on 
        the progress toward obtaining a total cessation of 
        hostilities in Indochina and a mutual reduction of 
        military assistance to that area.

            [principles governing economic aid to indochina

    [Sec. 35. (a) Congress calls upon the President and 
Secretary of State to take the following actions designed to 
maximize the benefit of United States economic assistance:
            [(1) to organize a consortium to include 
        multilateral financial institutions to help plan for 
        Indochina reconstruction and development; to coordinate 
        multilateral and bilateral contributions to the area's 
        economic recovery; and to provide continuing advice to 
        the recipient nations on the use of their own and 
        outside resources;
            [(2) to develop, in coordination with the recipient 
        governments, other donors, and the multilateral 
        financial institutions, a comprehensive plan for 
        Indochina reconstruction and economic development;
            [(3) to develop country-by-country reconstruction 
        and development plans, including detailed plans for the 
        development of individual economic sectors, that can be 
        used to identify and coordinate specific economic 
        development projects and programs and to direct United 
        States resources into areas of maximum benefits;
            [(4) to shift the emphasis of United States aid 
        programs from consumption-oriented expenditures to 
        economic development;
            [(5) to identify possible structural economic 
        reforms in areas such as taxation, exchange rates, 
        savings mechanisms, internal pricing, income 
        distribution, land tenure, budgetary allocations and 
        corruption, which should be undertaken if Indochinese 
        economic development is to progress;
            [(6) to include in Indochina economic planning and 
        programing specific performance criteria and standards 
        which will enable the Congress and the executive branch 
        to judge the adequacy of the recipient's efforts and to 
        determine whether, and what amounts of, continued 
        United States funding is justified; and
            [(7) to provide humanitarian assistance to 
        Indochina wherever practicable under the auspices of 
        and by the United Nations and its specialized agencies, 
        other international organizations or arrangements, 
        multilateral institutions, and private voluntary 
        agencies with a minimum presence and activity of United 
        States Government personnel.
    [(b) This section shall not be construed to imply 
continuation of a United States financial commitment beyond the 
authorization provided for in this Act or amendments made by 
this Act.

                   [indochina postwar reconstruction

    [Sec. 36. (a) There are authorized to be appropriate to the 
President to furnish assistance for the relief and 
reconstruction of South Vietnam, Cambodia, and Laos, in 
addition to funds otherwise available for such purposes, for 
the fiscal year 1975 not to exceed $617,000,000. Of the amount 
appropriated for fiscal year 1975--
            [(1) $449,900,000 shall be available only for the 
        relief and reconstruction of South Vietnam in 
        accordance with section 38 of this Act;
            [(2) $100,000,000 shall be available only for the 
        relief and reconstruction of Cambodia in accordance 
        with section 39 of this Act;
            [(3) $40,000,000 shall be available only for the 
        relief and reconstruction of Laos in accordance with 
        section 40 of this Act;
            [(4) $4,100,000 shall be available only for the 
        regional development program:
            [(5) $16,000,000 shall be available only for 
        support costs for the agency primarily responsible for 
        carrying out this part; and
            [(6) $7,000,000 shall be available only for 
        humanitarian assistance through international 
        organizations.
Such amounts are authorized to remain available until expended.
    [(b) The authority of section 610(a) of the Foreign 
Assistance Act of 1961 may not be used in fiscal year 1975 to 
transfer funds made available for any provision of such Act of 
1961 into funds made available for part V of such Act for South 
Vietnam, Cambodia, or Laos under this section.
    [(c) No assistance may be provided to South Vietnam, 
Cambodia, or Laos in fiscal year 1975 under part I (including 
chapter 4 of part II) of the Foreign Assistance Act of 1961. 
This prohibition may not be waived under section 614(a) of such 
Act of 1961 or any other provision of law.
    [(d) Notwithstanding subsection (b) of this section, funds 
made available under any provision of this or any other law for 
the purpose of providing military assistance for South Vietnam, 
Laos, or Cambodia during fiscal year 1975 may be transferred 
to, and consolidated with, any funds made available to that 
country for war relief, reconstruction, or general economic 
development, if such transfer does not result in a greater 
amount than is allocated for such country under paragraph (1), 
(2), or (3) of subsection (a).
    [(e) To the extent not inconsistent with the provisions of 
this Act, all prohibitions, restrictions, limitations, and 
authorities contained in the Foreign Assistance Act of 1961 
which are applicable to part V of such Act of 1961 shall apply 
with respect to the assistance authorized by this section.

                [assistance to south vietnamese children

    [Sec. 37. (a) It is the sense of the Congress that 
inadequate provision has been made (1) for the establishment, 
expansion and improvement of day care centers, orphanages, 
hostels, school feeding programs, health and welfare programs, 
and training related to these programs which are designed for 
the benefit of South Vietnamese children, disadvantaged by 
hostilities in Vietnam or conditions related to those 
hostilities, and (2) for the adoption by United States citizens 
of South Vietnamese children who are orphaned or abandoned, or 
whose parents or sole surviving parent, as the case may be, has 
irrevocably relinquished all parental rights, particularly 
children fathered by United States citizens.
    [(b) The President is, therefore, authorized to provide 
assistance, on terms and conditions he considers appropriate, 
for the purposes described in clauses (1) and (2) of subsection 
(a) of this section. Of the funds appropriated pursuant to 
section 36(a) of this Act, $10,000,000, or its equivalent in 
local currency, shall be available until expended solely to 
carry out this section. Not more than 10 per centum of the 
funds made available to carry out this section may be expended 
for the purposes referred to in clause (2) of subsection (a). 
Assistance provided under this section shall be furnished, to 
the maximum extent practicable, under the auspices of and by 
international agencies or private voluntary agencies.

               [limitations with respect to south vietnam

    [Sec. 38. (a) The $449,900,000 made available in accordance 
with section 36(a)(1) of this Act shall be allocated as 
follows:
            [(1) $90,000,000 for humanitarian assistance, of 
        which there shall be available--
                    [(A) $70,000,000 for refugee relief;
                    [(B) $10,000,000 for child care; and
                    [(C) $10,000,000 for health care;
            [(2) $154,500,000 for agricultural assistance, of 
        which there shall be available--
                    [(A) $85,000,000 for fertilizer;
                    [(B) $12,000,000 for POL (for agriculture);
                    [(C) $6,000,000 for insecticides and 
                pesticides;
                    [(D) $10,000,000 for agricultural machinery 
                and equipment (including spare parts);
                    [(E) $3,500,000 for agricultural advisory 
                services;
                    [(F) $20,000,000 for rural credit;
                    [(G) $10,000,000 for canal dredging;
                    [(H) $4,000,000 for low-lift pumps; and
                    [(I) $4,000,000 for fish farm development:
            [(3) $139,800,000 for industrial development 
        assistance of which there shall be available--
                    [(A) $124,000,000 for commodities;
                    [(B) $10,000,000 for industrial credit; and
                    [(C) $5,800,000 for industrial advisory 
                services (including feasibility studies);
            [(4) $65,600,000 for miscellaneous assistance, of 
        which there shall be available--
                    [(A) $47,900,000 for the service sector 
                (including POL, machinery equipment, and spare 
                parts); and
                    [(B) $17,700,000 for technical services and 
                operating expenses.
    [(b)(1) No funds made available in accordance with section 
36(a)(1) may be transferred to, or consolidated with, the funds 
made available for military assistance, nor may more than 20 
per centum of the funds made available under paragraph (1), 
(2), (3), or (4) of subsection (a) of this section be 
transferred to, or consolidated with, the funds made available 
under any other such paragraph.
    [(2) Whenever the President determines it to be necessary 
in carrying out this section, any funds made available under 
any subparagraph of paragraph (1), (2), (3), or (4) of 
subsection (a) of this section may be transferred to, and 
consolidated with, the funds made available under any other 
subparagraph of that same paragraph.
    [(3) The President shall fully inform the Speaker of the 
House of Representatives and the Committee on Foreign Relations 
of the Senate of each transfer he intends to make under 
paragraph (1) or (2) of this subsection prior to making such 
transfer.
    [(c) No funds may be obligated for any of the purposes 
described in subsection (a) of this section in, to, for, or on 
behalf of South Vietnam in any fiscal year beginning after June 
30, 1975, unless such funds have been specifically authorized 
by law enacted after the date of enactment of this section. In 
no case shall funds in any amount in excess of the amount 
specifically authorized by law for any fiscal year be obligated 
for any such purpose during such fiscal year.
    [(d) After the date of enactment of this section, whenever 
any request is made to the Congress for the appropriation of 
funds for use in, to, for, or on behalf of South Vietnam for 
any fiscal year the President shall furnish a written report to 
the Congress explaining the purpose for which such funds are to 
be used in such fiscal year.
    [(e) The President shall submit to the Congress within 
thirty days after the end of each quarter of each fiscal year, 
beginning with the fiscal year which begins July 1, 1974, a 
written report showing the total amount of funds obligated in, 
to, for, or on behalf of South Vietnam during the preceding 
quarter by the United States Government, and shall include in 
such report a general breakdown of the total amount obligated, 
describing the different purposes for which such funds were 
obligated and the total amount obligated for such purpose.
    [(f)(1) Effective six months after the date of enactment of 
this section, the total number of civilian officers and 
employees, including contract employees, of executive agencies 
of the United States Government who are citizens of the United 
States and of members of the Armed Forces of the United States 
present in South Vietnam shall not at any one time exceed four 
thousand, not more than two thousand five hundred of whom shall 
be members of such armed forces and direct hire and contract 
employees of the Department of Defense. Effective one year 
after the date of enactment of this section, such total number 
shall not exceed at any one time three thousand, not more than 
one thousand five hundred of whom shall be members of such 
armed forces and direct hire and contract employees of the 
Department of Defense.
    [(2) Effective six months after the date of enactment of 
this section, the United States shall not, at any one time, pay 
in whole or in part, directly or indirectly, the compensation 
or allowances of more than eight hundred individuals in South 
Vietnam who are citizens of countries other than South Vietnam 
or the United States. Effective one year after the date of 
enactment of this section, the total number of individuals 
whose compensation or allowance is so paid shall not exceed at 
any one time five hundred.
    [(3) For purposes of this subsection, ``executive agency of 
the United States Government'' means any agency, department, 
board, wholly or partly owned corporation, instrumentality, 
commission, or establishment within the executive branch of the 
United States Government.
    [(4) This subsection shall not be construed to apply with 
respect to any individual in South Vietnam who (A) is an 
employee or volunteer worker of a voluntary private nonprofit 
relief organization or is an employee or volunteer worker of 
the International Committee of the Red Cross, and (B) engages 
only in activities providing humanitarian assistance in South 
Vietnam.
    [(g) This section shall not be construed as a commitment by 
the United States to South Vietnam for its defense.

                 [limitations with respect to cambodia

    [Sec. 39. (a) Section 655 of the Foreign Assistance Act of 
1961 is amended as follows:
            [(1) by striking out ``$341,000,000'' in subsection 
        (a) and inserting ``$377,000,000'' in lieu thereof.
            [(2) by striking out ``1972'' in subsection (a) and 
        inserting ``1975. Of that sum, there shall be available 
        no more than $200,000,000 for military assistance. In 
        addition to such $377,000,000, defense articles and 
        services may be ordered under section 506 of this Act 
        for Cambodia in an amount not to exceed $75,000,000 in 
        fiscal year 1975.'' in lieu thereof.
            [(3) by striking out ``$341,000,000'' in subsection 
        (b) and inserting ``$377,000,000'' in lieu thereof.
            [(4) by striking out ``1972'' in subsection (b) and 
        inserting ``1975'' in lieu thereof.
    [(b) Section 656 of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following sentence: 
``This section shall not be construed to apply with respect to 
any individual in Cambodia who (A) is an employee or volunteer 
worker of a voluntary private, nonprofit relief organization or 
is an employee or volunteer worker of the International 
Committee of the Red Cross, and (B) engages only in activities 
providing humanitarian assistance in Cambodia.''
    [(c) The $100,000,000 made available in accordance with 
section 36(a)(2) of this Act shall be allocated as follows:
            [(1) $20,000,000 for humanitarian assistance;
            [(2) $63,000,000 for commodity import assistance;
            [(3) $15,000,000 for multilateral stabilization 
        assistance; and
            [(4) $2,000,000 for technical support and 
        participant training.
    [(d) No funds made available in accordance with section 
36(a)(2) may be transferred to, or consolidated with, the funds 
allocated for military assistance to Cambodia under section 
655(a) of the Foreign Assistance Act of 1961, nor may more than 
20 per centum of the funds made available under any paragraph 
of subsection (c) of this section be transferred to, or 
consolidated with, the funds made available under any other 
such paragraph.
    [(e) No funds may be obligated for any of the purposes 
described in section 655(a) of the Foreign Assistance Act of 
1961 in, to, for, or on behalf of Cambodia in any fiscal year 
beginning after June 30, 1975, unless such funds have been 
specifically authorized by law enacted after the date of 
enactment of this section. In no case shall funds in any amount 
in excess of the amount specifically authorized by law for any 
fiscal year be obligated for any such purpose during such 
fiscal year.
    [(f) This section shall not be construed as a commitment by 
the United States to Cambodia for its defense.

                   [limitations with respect to laos

    [Sec. 40. (a) Notwithstanding any other provision of law, 
no funds authorized to be appropriated by this or any other law 
may be obligated in any amount in excess of $70,000,000 during 
the fiscal year ending June 30, 1975, for the purpose of 
carrying out directly or indirectly any economic or military 
assistance, or any operation, project, or program of any kind, 
or for providing any goods, supplies, materials, equipment, 
services, personnel, or advisers in, to, for, or on behalf of 
Laos. Of that amount, there shall be available--
            [(1) $30,000,000 for military assistance; and
            [(2) $40,000,000 only for economic assistance, of 
        which there shall be available--
                    [(A) $11,000,000 for humanitarian 
                assistance;
                    [(B) $6,500,000 for reconstruction and 
                development assistance;
                    [(C) $16,100,000 for stabilization 
                assistance; and
                    [(D) $6,400,000 for technical support.
    [(b) No funds made available under paragraph (2) of 
subsection (a) of this section may be transferred to, or 
consolidated with, the funds made available under paragraph (1) 
of such subsection, nor may more than 20 per centum of the 
funds made available under any subparagraph of paragraph (2) be 
transferred to, or consolidated with, the funds made available 
under any other such subparagraph.
    [(c) In computing the limitations on obligation authority 
under subsection (a) of this section with respect to such 
fiscal year, there shall be included in the computation the 
value of any goods, supplies, materials, equipment, services, 
personnel, or advisers provided, to, for, or on behalf of Laos 
in such fiscal year by gift, donation, loan, lease or 
otherwise. For the purpose of this subsection, ``value'' means 
the fair market value of any goods, supplies, material, or 
equipment provided to, for, or on behalf of Laos but in no case 
less than 33\1/3\ per centum of the amount the United States 
paid at the time such goods, supplies, materials, or equipment 
were acquired by the United States.
    [(d) No funds may be obligated for any of the purposes 
described in subsection (a) of this section in, to, for, or on 
behalf of Laos in any fiscal year beginning after June 30, 
1975, unless such funds have been specifically authorized by 
law enacted after the date of enactment of this section. In no 
case shall funds in any amount in excess of the amount 
specifically authorized by law for any fiscal year be obligated 
for any such purpose during such fiscal year.
    [(e) After the date of enactment of this section whenever 
any request is made to the Congress for the appropriation of 
funds for use in, to, for, or on behalf of Laos, for any fiscal 
year, the President shall furnish a written report to the 
Congress explaining the purpose of which such funds are to be 
used in such fiscal year.
    [(f) The President shall submit to the Congress within 
thirty days after the end of each quarter of each fiscal year 
beginning with the fiscal year which begins July 1, 1974, a 
written report showing the total amount of funds obligated in, 
to, for, or on behalf of Laos during the preceding quarter by 
the United States Government and shall include in such report a 
general breakdown of the total amount obligated, describing the 
different purposes of which such funds were obligated and the 
total amount obligated for such purpose.
    [(g) This section shall not be construed as a commitment by 
the United States to Laos for its defense.

    [population, narcotics, international humanitarian and regional 
                                programs

    [Sec. 41. Part V of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new section:
    [``Sec. 806. Population, Narcotics, International 
Humanitarian and Regional Programs.--The provisions of sections 
36(c), 38, 39, and 40 of the Foreign Assistance Act of 1974 
shall not apply to: (1) funds obligated for purposes of title X 
of chapter 2 of part I (programs relating to population 
growth); (2) funds made available under section 482 (programs 
relating to narcotics control); (3) funds made available for 
humanitarian assistance through international organizations; or 
(4) funds obligated for regional programs.''

                     [assistance to the middle east

    [Sec. 42. The Foreign Assistance Act of 1961 is amended by 
adding at the end thereof the following new part:

                               [``PART VI

    [``Sec. 901. Statement of Policy.--The Congress recognizes 
that a peaceful and lasting resolution of the divisive issues 
that have contributed to tension and conflict between nations 
in the Middle East is essential to the security of the United 
States and the cause of world peace. The Congress declares and 
finds that the United States can and should play a constructive 
role in securing a just and durable peace in the Middle East by 
facilitating increased understanding between the Arab nations 
and Israel, and by assisting the nations in the area in their 
efforts to achieve economic progress and political stability, 
which are the essential foundations for a just and durable 
peace. It is the sense of Congress that United States 
assistance programs in the Middle East should be designated to 
promote mutual respect and security among the nations in the 
area and to foster a climate conducive to increased economic 
development, thereby contributing to a community of free, 
secure, and prospering nations in the Middle East.
    [``It is further the sense of Congress that none of the 
funds authorized by this Act should be provided to any nation 
which denies its citizens the right or opportunity to emigrate.
    [``Sec. 902. Allocations.--(a) Of the funds appropriated to 
carry out chapter 2 of part II of this Act during the fiscal 
year 1975, not to exceed $100,000,000 may be made available for 
military assistance in the Middle East.
    [``(b) Of the funds appropriated to carry out chapter 4 of 
part II of this Act during the fiscal year 1975, not to exceed 
$652,000,000 may be made available for security supporting 
assistance in the Middle East.
    [``(c) Of the aggregate ceiling on credits and guaranties 
established by section 31(b) of the Foreign Military Sales Act 
during the fiscal year 1975, not to exceed $330,000,000 shall 
be available for countries in the Middle East.
    [``Sec. 903. (a) Special Requirements Fund.--There are 
authorized to be appropriated to the President for the fiscal 
year 1975 not to exceed $100,000,000 to furnish assistance 
under part I of this Act to meet special requirements arising 
from time to time in carrying out the purposes of this part, in 
addition to funds otherwise available for such purposes. The 
funds authorized to be appropriated by this section shall be 
available for use by the President for assistance authorized by 
such part in accordance with the provisions applicable to the 
furnishing of such assistance. Such funds are authorized to 
remain available until expended.
    [``(b) The President may only obligate or expend, for each 
foreign country or international organizations, funds 
authorized under this section--
            [``(1) after he reports to the Speaker of the House 
        of Representatives and the Committee on Foreign 
        Relations and the Committee on Appropriations of the 
        Senate concerning (A) the name of such foreign country 
        or international organizations, (B) the amount of such 
        funds to be made available to such country or 
        organization, and (C) the purpose for which such funds 
        are to be made available to such country or 
        organization; and
            [``(2) unless the Congress, within thirty calendar 
        days after receiving any report under paragraph (1), 
        adopts a concurrent resolution stating in substance 
        that it does not favor the provisions of the report 
        provided by clauses (A), (B), and (C) of paragraph (1).
    [``(c) Of the amount authorized under subsection (a), not 
less than $6,000,000 shall constitute a contribution by the 
United States toward the settlement of the deficit of the 
United Nations Relief and Works Agency for Palestine Refugees 
in the Middle East, if the President determines that a 
reasonable number of other countries will contribute a fair 
share toward the settlement of such deficit within a reasonable 
period of time after the date of enactment of the Foreign 
Assistance Act of 1974. In determining such fair share, the 
President shall take into consideration the economic position 
of each such country. Such $6,000,000 shall be in addition to 
any other contribution to such Agency by the United States 
pursuant to any other provision of law.''

                  [assistance to united arab republic

    [Sec. 44. Section 620(p) of the Foreign Assistance Act of 
1961 is repealed.

                 [foreign military sales act amendments

    [Sec. 45(a). The Foreign Military Sales Act is amended as 
follows:
    [(1) Section 3(d) is amended to read as follows:
    [``(d) A country shall remain ineligible in accordance with 
subsection (c) of this section until such time as the President 
determines that such violation has ceased, that the country 
concerned has given assurances satisfactory to the President 
that such violation will not recur, and that, if such violation 
involved the transfer of sophisticated weapons without the 
consent of the President, such weapons have been returned to 
the country concerned.''
    [(2) Section 23 is amended to read as follows:
    [``Sec. 23. Credit Sales.--The President is authorized to 
finance procurements of defense articles and defense services 
by friendly foreign countries and international organizations 
on terms requiring the payment to the United States Government 
in United States dollars of--
            [``(1) the value of such articles or services 
        within a period not to exceed ten years after the 
        delivery of such articles or the rendering of such 
        services; and
            [``(2) interest on the unpaid balance of that 
        obligation for payment of the value of such articles or 
        services, at a rate equivalent to the current average 
        interest rate, as of the last day of the month 
        preceding the financing of such procurement, that the 
        United States Government pays on outstanding marketable 
        obligations of comparable maturity, unless the 
        President certifies to Congress that the national 
        interest requires a lesser rate of interest and states 
        in the certification the lesser rate so required and 
        the justification therefor.''
    [(3) In subsections (a) and (b) of section 24, the 
parenthetical phrase in each is amended to read as follows: 
``(excluding United States Government agencies other than the 
Federal Financing Bank)''.
    [(4) Section 24(c) is amended by striking out ``25'' both 
times it appears and inserting ``10'' both such times in lieu 
thereof.
    [(5) Section 35(b) is repealed, and section 36 is amended 
by inserting before subsection (c) the following new 
subsections:
    [``(a) The President shall submit to the Speaker of the 
House of Representatives and to the chairman of the Committee 
on Foreign Relations of the Senate quarterly reports 
containing--
            [``(1) a listing of all letters of offer to sell 
        any defense articles or services under this Act, if 
        such offer has not been accepted or canceled;
            [``(2) a cumulative listing of all such letters of 
        offer to sell that have been accepted during the fiscal 
        year in which such report is submitted;
            [``(3) the cumulative dollar amounts, by foreign 
        country and international organization, of credit sales 
        under section 23 and guaranty agreements under section 
        24 made before the submission of such quarterly report 
        and during the fiscal year in which such report is 
        submitted; and
            [``(4) projections of the cumulative dollar 
        amounts, by foreign country and international 
        organization, of credit sales under section 23 and 
        guaranty agreements under section 24 to be made in the 
        quarter of the fiscal year immediately following the 
        quarter for which such report is submitted.
    [``(b) In the case of any letter of offer to sell any 
defense articles or services under this Act for $25,000,000 or 
more, before issuing such letter of offer the President shall 
submit to the Speaker of the House of Representatives and to 
the Chairman of the Committee on Foreign Relations of the 
Senate a statement with respect to such offer to sell 
containing the information specified in subparagraphs (A) 
through (E) in subsection (a). The letter of offer shall not be 
issued if the Congress, within twenty calendar days after 
receiving any such statement, adopts a concurrent resolution 
stating in effect that it objects to such proposed sale, unless 
the President in his statement certifies that an emergency 
exists which requires such sale in the national security 
interests of the United States.''
    [(6) Section 31(a) is amended by striking out 
``$325,000,000 for the fiscal year 1974'' and inserting in lieu 
thereof ``$405,000,000 for the fiscal year 1975''.
    [(7) In section 31(b)--
            [(A) strike out ``$730,000,000 for the fiscal year 
        1974'' and insert in lieu thereof ``$872,500,000 for 
        the fiscal year 1975''; and
            [(B) add at the end thereof the following new 
        sentence: ``Of the funds made available under 
        subsection (a) of this section, $100,000,000 shall 
        first be obligated with respect to financing the 
        procurement of defense articles and defense services by 
        Israel under section 23 of this Act, except that Israel 
        shall be released from contractual liability to repay 
        the United States Government for the defense articles 
        and defense services so financed.''
    [(8) In section 33--
            [(A) subsection (a) is repealed;
            [(B) subsection (b) is redesignated as subsection 
        (a); and
            [(C) a new subsection (b) is added as follows:
    ``[(b) The President may waive the limitations of this 
section when he determines it to be important to the security 
of the United States and promptly so reports to the Speaker of 
the House of Representatives and the Committee on Foreign 
Relations of the Senate.''
    [(b) The amendment made by paragraph (4) of subsection (a) 
shall take effect on July 1, 1974. Obligations initially 
charged against appropriations made available for purposes 
authorized by section 31(a) of the Foreign Military Sales Act 
after June 30, 1974, and prior to the enactment of this section 
in an amount equal to 25 per centum of the principal amount of 
contractual liability related to guaranties issued pursuant to 
section 24(a) of that Act shall be adjusted to reflect such 
amendment with proper credit to the appropriations made 
available in the fiscal year 1975 to carry out that Act.

                 [security assistance and human rights

    [Sec. 46. Chapter 1 of part II of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 502B. Human Rights.--(a) It is the sense of 
Congress that, except in extraordinary circumstances, the 
President shall substantially reduce or terminate security 
assistance to any government which engages in a consistent 
pattern of gross violations of internationally recognized human 
rights, including torture or cruel, inhumane or degrading 
treatment or punishment; prolonged detention without charges; 
or other flagrant denials of the right to life, liberty, and 
the security of the person.
    [``(b) Whenever proposing or furnishing security assistance 
to any government falling within the provisions of paragraph 
(a), the President shall advise the Congress of the 
extraordinary circumstances necessitating the assistance.
    [``(c) In determining whether or not a government falls 
within the provisions of subsection (a), consideration shall be 
given to the extent of cooperation by such government in 
permitting an unimpeded investigation of alleged violations of 
internationally recognized human rights by appropriate 
international organizations, including the International 
Committee of the Red Cross and any body acting under the 
authority of the United Nations or of the Organization of 
American States.
    [``(d) For purposes of this section, `security assistance' 
means assistance under chapter 2 (military assistance) or 
chapter 4 (security supporting assistance) of this part, 
assistance under part V (Indochina Postwar Reconstruction) or 
part VI (Middle East Peace) of this Act, sales under the 
Foreign Military Sales Act, or assistance for public safety 
under this or any other Act.''

                       [gorgas memorial institute

    [Sec. 47. The first section of the Act entitled ``An Act to 
authorize a permanent annual appropriation for the maintenance 
and operation of the Gorgas Memorial'', approved May 7, 1928, 
is amended by striking out ``$500,000'' and inserting 
``$2,000,000'' in lieu thereof.

    [international commission of control and supervision in vietnam

    [Sec. 48. (a) There are authorized to be appropriated to 
the Department of State for fiscal year 1975 not to exceed 
$16,526,000 for payments by the United States to help meet 
expenses of the International Commission of Control and 
Supervision in Vietnam. Funds appropriated under this 
subsection are authorized to be made available for 
reimbursement to the Agency for International Development of 
amounts expended by the Agency during fiscal year 1975 as 
interim United States payments to help meet expenses of the 
International Commission of Control and Supervision.
    [(b) There are authorized to be appropriated to the 
Department of State not to exceed $11,200,000 for reimbursement 
to the Agency for International Development of amounts expended 
by the Agency for International Development to help meet 
expenses of the International Commission on Control and 
Supervision in fiscal year 1974.
    [(c) Reimbursements received by the Agency for 
International Development under this section may be credited to 
applicable appropriations of the Agency and shall be available 
for the purposes for which such appropriations are authorized 
to be used during fiscal year 1975.

  [policy on the independence of angola, mozambique, and guinea-bissau

    [Sec. 50. (a)(1) Congress finds that the Government of 
Portugal's recognition of the right to independence of the 
African territories of Angola, Mozambique, and Guinea-Bissau 
marks a significant advance toward the goal of self-
determination for all the peoples of Africa, without which 
peace on the continent is not secure.
    [(2) Congress finds that progress toward independence for 
the Portuguese African territories will have a significant 
impact on the international organizations and the community of 
nations.
    [(3) Congress commends the Portuguese Government's 
initiatives on these fronts as evidence of a reaffirmation of 
that Government's support for her obligations under both the 
United Nations Charter and the North Atlantic Treaty 
Organizations.
    [(b) Therefore, Congress calls upon the President and the 
Secretary of State to take the following actions designed to 
make clear the United States support for a peaceful and orderly 
transition to independence in the Portuguese African 
territories:
            [(1) An official statement should be issued of 
        United States support for the independence of Angola, 
        Mozambique, and Guinea-Bissau, and of our desire to 
        have good relations with the future governments of the 
        countries.
            [(2) It should be made clear to the Government of 
        Portugal that we view the efforts toward a peaceful and 
        just settlement of the conflict in the African 
        territories as consistent with Portugal's obligations 
        under the North Atlantic Treaty organization 
        partnership.
            [(3) The United states should encourage United 
        Nations support for a peaceful transition to 
        independence, negotiated settlement of all differences, 
        and the protection of human rights of all citizens of 
        the three territories.
            [(4) The United States should open a dialog with 
        potential leaders of Angola, Mozambique, and Guinea-
        Bissau and assure them of our commitment to their 
        genuine political and economic independence.
            [(5) The economic development needs of the three 
        territories will be immense when independence is 
        achieved. Therefore, it is urged that the United States 
        Agency for International Development devote attention 
        to assessing the economic situation in Angola, 
        Mozambique, and Guinea-Bissu and be ready to cooperate 
        with the future governments in providing the kind of 
        assistance that will help make their independence 
        viable. In addition, the United States Government 
        should take the initiative among other donors, both 
        bilateral and multilateral, in seeking significant 
        contribution of development assistance for the three 
        territories.
            [(6) In light of the need of Angola, Mozambique, 
        and Guinea-Bissau for skilled and educated manpower, a 
        priority consideration should be given to expanding 
        current United States programs of educational 
        assistance to the territories as a timely and 
        substantive contribution to their independence.

                        [conventional arms trade

    [Sec. 51. (a) It is the sense of the Congress that the 
recent growth in international transfers of conventional arms 
to developing nations--
            [(1) is a cause for gave concern for the United 
        States and other nations, in that in particular areas 
        of the world it increases the danger of potential 
        violence among nations, and diverts scare world 
        resource from more peaceful uses; and
            [(2) could be controlled progressively through 
        negotiations and agreements among supplier and 
        recipient nations.
    [(b) Therefore, the President is urged to propose to the 
Geneva Conference of the Committee on Disarmament that it 
consider as a high priority agenda item discussions among 
participating nations of that Conference for the purposes of--
            [(1) agreeing to workable limitations on 
        conventional arms transfers; and
            [(2) establishing a mechanism through which such 
        limitations could be effectively monitored.

     [involvement of puerto rico in the caribbean development bank

    [Sec. 52. (a) The President may transmit to the Caribbean 
Development Bank an instrument stating that the Commonwealth of 
Puerto Rico has the authority to conclude an agreement of 
accession with such Bank and to assume rights and obligations 
pursuant to such agreement. However, such agreement may only be 
concluded after it has been approved by the United States 
Secretary of State.
    [(b) The instrument transmitted by the President to the 
Caribbean Development Bank under subsection (a) shall state 
that the United States shall not assume any financial or other 
responsibility for the performance of any obligation incurred 
by the Commonwealth of Puerto Rico pursuant to such agreement 
of accession or pursuant to any other aspect of its membership 
or participation in such Bank.
    [(c) Such agreement of accession shall provide that the 
Commonwealth of Puerto Rico may not receive from the Caribbean 
Development Bank any funds provided to the Bank by the United 
States.

   [assistance to portugal and portuguese colonies in africa gaining 
                              independence

    [Sec. 53. Part I of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following:

[``Chapter X--Assistance to Portugal and Portuguese Colonies in Africa 
                          Gaining Independence

    [``Sec. 496. Assistance to Portugal and Portuguese Colonies 
in Africa Gaining Independence.--There are authorized to be 
appropriated to the President for the fiscal year 1975, in 
addition to funds otherwise available for such purposes, not to 
exceed--
            [``(1) $5,000,000 to make grants; and
            [``(2) $20,000,000 to make loans;
to remain available until expended, for use by the President in 
providing economic assistance, on such terms and conditions as 
he may determine, for Portugal and the countries and colonies 
in Africa which were, prior to April 25, 1974, colonies of 
Portugal.''

                         [integration of women

    [Sec. 54. Chapter 3 of part III of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 305. Integration of Women.--The President is 
requested to instruct each representative of the United States 
to each international organization of which the United States 
is a member (including but not limited to the International 
Bank for Reconstruction and Development, the Asian Development 
Bank, the Inter-American Development Bank, the International 
Monetary Fund, the United Nations, and the Organization for 
Economic Cooperation and Development) to carry out their duties 
with respect to such organizations in such a manner as to 
encourage and promote the integration of women into the 
national economies of member and recipient countries and into 
professional and policy-making positions within such 
organizations, thereby improving the status of women.''

   [policy with respect to countries most seriously affected by food 
                               shortages

    [Sec. 55. (a) The United Nations has designated thirty-two 
countries as ``Most Seriously Affected'' by the current 
economic crisis. These are countries without the internal food 
production capability or the foreign exchange availability to 
secure food to meet their immediate food requirements. The 
Congress calls upon the President and Secretary of State to 
take the following actions designed to mobilize appropriate 
resources to meet the food emergency:
            [(1) Review and make appropriate adjustments in the 
        level of programming of our food and fertilizer 
        assistance programs with the aim of increasing to the 
        maximum extent feasible the volume of food and 
        fertilizer available to those countries most seriously 
        affected by current food shortages.
            [(2) Call upon all traditional and potential new 
        donors of food, fertilizer, or the means of financing 
        these commodities to immediately increase their 
        participation in efforts to address the emergency food 
        needs of the developing world.
            [(3) Make available to these most seriously 
        affected countries the maximum feasible volume of food 
        commodities, with appropriate regard to the current 
        domestic price and supply situations.
            [(4) Maintain regular and full consultation with 
        the appropriate committee of the Congress and report to 
        the Congress and the Nation on steps which are being 
        taken to help meet this food emergency. In accordance 
        with this provision, the President shall report to the 
        Congress on a global assessment of food needs for 
        fiscal year 1975, specifying expected food grain 
        deficits and currently planned programming of food 
        assistance, and steps which are being taken to 
        encourage other countries to increase their 
        participation in food assistance or the financing of 
        food assistance. Such report should reach the Congress 
        promptly and should be supplemented quarterly for the 
        remainder of fiscal year 1975.
            [(5) The Congress directs that during the fiscal 
        year ending June 30, 1975, not more than 30 percent of 
        concessional food aid should be allocated to countries 
        other than those which are most seriously affected by 
        current food shortages unless the President 
        demonstrates to the appropriate Committees of the 
        Congress that the use of such food assistance is solely 
        for humanitarian food purposes.
            [(6) The congress calls upon the President to 
        proceed with the implementation of resolutions and 
        recommendations adopted by the World Food Conference. 
        The Congress believes that it is incumbent upon the 
        United States to take a leading role in assisting in 
        the development of a viable and coherent world food 
        policy which would begin the task of alleviating 
        widespread hunger and suffering prevalent in famine-
        stricken nations. The President shall report to the 
        Congress within 120 days of enactment of this Act on 
        the implementation of the resolutions and the extent to 
        which the United States is participating in the 
        implementation of resolutions adopted at the World Food 
        Conference.

                     [repayment of loans in default

    [Sec. 56. It is the sense of the Congress that any country 
receiving assistance under the Foreign Assistance Act of 1961 
which is in default, at least 90 days prior to the date of 
enactment of this Act, of any payment of principal or interest 
due on any loan or credit received from the United States shall 
promptly pay all such principal and interest. It is further the 
sense of the congress that the President shall promptly enter 
into negotiations with each such country to help effectuate the 
payment of such principal and interest, or to effectuate the 
transfer by such country to the United States of goods, 
services, concessions, or actions beneficial to the United 
States, in lieu of the payment of such principal and interest.]
                              ----------                              


               EMERGENCY SECURITY ASSISTANCE ACT OF 1973

 AN ACT To provide emergency assistance authorizations for Israel and 
                                Cambodia

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, [That this 
Act may be cited as the ``Emergency Security Assistance Act of 
1973''.
    [Sec. 2. In addition to such amounts as may be otherwise 
authorized to be appropriated to the President for security 
assistance for the fiscal year 1974, there are hereby 
authorized to be appropriated to the President not to exceed 
$2,200,000,000 for emergency military assistance or foreign 
military sales credits, or for both as the President may 
determine, for Israel, of which sum amounts in excess of 
$1,500,000,000 may be used pursuant to this section or section 
4 of this Act only if the President (1) determines it to be 
important to our national interest that Israel receive 
assistance hereunder exceeding $1,500,000,000, and (2) reports 
to Congress each such determination (if more than one) at least 
twenty days prior to date on which funds are obligated or 
expended under this Act in excess of such $1,500,000,000 
limitation. The twenty-day requirement contained in the 
preceding sentence shall not apply if hostilities are renewed 
in the Middle East. The President shall include in his report 
the amount of funds to be used pursuant to the determination, 
the terms of the additional assistance under section 2 or 
section 4, and the justification for the determination. All 
information contained in the justification shall be public 
information except to the extent that the President concludes 
that publication would be incompatible with the security 
interests of the United States.
    [Sec. 3. Military assistance furnished out of funds 
appropriated under section 2 of this Act shall be furnished in 
accordance with all of the provisions applicable to military 
assistance under the Foreign Assistance Act of 1961 (75 Stat. 
424; Public Law 87-195), as amended. Foreign military sales 
credits extended to Israel out of such funds shall be provided 
on such terms and conditions as the President may determine and 
without regard to the provisions of the Foreign Military Sales 
Act (82 Stat. 1320; Public Law 90-629), as amended.
    [Sec. 4. At any time prior to June 30, 1974, the President 
is hereby authorized, within the limits of funds appropriated 
under section 2 of this Act for Israel, to release Israel from 
its contractual liability to pay for defense articles and 
defense services purchased or financed under the said Foreign 
Military Sales Act or under this Act during the period 
beginning October 6, 1973, and ending June 30, 1974, and such 
funds shall be used to reimburse current applicable 
appropriations, funds, and accounts of the Department of 
Defense for the value of such defense articles and defense 
services.
    [Sec. 6. Of the funds appropriated pursuant to section 2, 
the President may use such sums as may be necessary from time 
to time for payment by the United States of its share of the 
expenses of the United Nations Emergency Force in the Middle 
East, as apportioned by the United Nations in accordance with 
article 17 of the United Nations Charter.]
                              ----------                              


                     FOREIGN ASSISTANCE ACT OF 1973

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, [That this 
Act may be cited as the ``Foreign Assistance Act of 1973''.

             [policy; development assistance authorizations

    [Sec. 2. Chapter 1 of part I of the Foreign Assistance Act 
of 1961 is amended as follows:
    [(1) In the chapter heading, immediately after ``Chapter 
1--Policy'', insert ``; Development Assistance 
Authorizations''.
    [(2) In section 102--
            [(A) insert ``(a)'' immediately after ``Statement 
        of Policy.--''; and
            [(B) add at the end thereof the following:
    [``(b) The Congress further finds and declares that, with 
the help of United States economic assistance, progress has 
been made in creating a base for the economic progress of the 
less developed countries. At the same time, the conditions 
which shaped the United States foreign assistance program in 
the past have changed. While the United States must continue to 
seek increased cooperation and mutually beneficial relations 
with other nations, our relations with the less developed 
countries must be revised to reflect the new realities. In 
restructuring our relationships with these countries, the 
President should place appropriate emphasis on the following 
criteria:
    [``(1) Bilateral development aid should concentrate 
increasingly on sharing American technical expertise, farm 
commodities, and industrial goods to meet critical development 
problems, and less on large-scale capital transfers, which when 
made should be in association with contributions from other 
industrialized countries working together in a multilateral 
framework.
    [``(2) Future United States bilateral support for 
development should focus on critical problems in those 
functional sectors which affect the lives of the majority of 
the people in the developing countries: food production; rural 
development and nutrition; population planning and health; and 
education, public administration, and human resource 
development.
    [``(3) United States cooperation in development should be 
carried out to the maximum extent possible through the private 
sector, including those institutions which already have ties in 
the development areas, such as educational institutions, 
cooperatives, credit unions, and voluntary agencies.
    [``(4) Development planning must be the responsibility of 
each sovereign country. United States assistance should be 
administered in a collaborative style to support the 
development goals chosen by each country receiving assistance.
    [``(5) United States bilateral development assistance 
should give the highest priority to undertakings submitted by 
host governments which directly improve the lives of the 
poorest of their people and their capacity to participate in 
the development of their countries.
    [``(6) The economic and social development programs to 
which the United States lends support should reflect, to the 
maximum extent practicable, the role of United States private 
investment in such economic and social development programs.
    [``(7) Under the policy guidance of the Secretary of State, 
the agency primarily responsible for administering this part 
should have the responsibility for coordinating all United 
States development-related activities.''
    [``(3) At the end thereof, add the following new sections:
    [``Sec. 103. Food and Nutrition.--In order to alleviate 
starvation, hunger, and malnutrition, and to provide basic 
services to poor people, enhancing their capacity for self-
help, the President is authorized to furnish assistance, on 
such terms and conditions as he may determine, for agriculture, 
rural development, and nutrition. There are authorized to be 
appropriated to the President for the purposes of this section, 
in addition to funds otherwise available for such purposes, 
$291,000,000 for each of the fiscal years 1974 and 1975, which 
amounts are authorized to remain available until expended.
    [``Sec. 104. Population Planning and Health.--In order to 
increase the opportunities and motivation for family planning, 
to reduce the rate of population growth, to prevent and combat 
disease, and to help provide health services for the great 
majority, the President is authorized to furnish assistance on 
such terms and conditions as he may determine, for population 
planning and health. There are authorized to be appropriated to 
the President for the purposes of this section, in addition to 
the funds otherwise available for such purposes, $145,000,000 
for each of the fiscal years 1974 and 1975, which amounts are 
authorized to remain available until expended.
    [``Sec. 105. Education and Human Resources Development.--In 
order to reduce illiteracy, to extend basic education and to 
increase manpower training in skills related to development, 
the President is authorized to furnish assistance on such terms 
and conditions as he may determine, for education, public 
administration, and human resource development. There are 
authorized to be appropriated to the President for the purposes 
of this section, in addition to funds otherwise available for 
such purposes, $90,000,000 for each of the fiscal years 1974 
and 1975, which amounts are authorized to remain available 
until expended.
    [``Sec. 106. Selected Development Problems.--The President 
is authorized to furnish assistance on such terms and 
conditions as he may determine, to help solve economic and 
social development problems in fields such as transportation, 
power, industry, urban development, and export development. 
There are authorized to be appropriated to the President for 
the purposes of this section, in addition to funds otherwise 
available for such purposes, $53,000,000 for each of the fiscal 
years 1974 and 1975, which amounts are authorized to remain 
available until expended.
    [``Sec. 107. Selected Countries and Organizations.--The 
President is authorized to furnish assistance on such terms and 
conditions as he may determine, in support of the general 
economy of recipient countries or for development programs 
conducted by private or international organizations. There are 
authorized to be appropriated to the President for the purposes 
of this section, in addition to funds otherwise available for 
such purposes, $39,000,000 for each of the fiscal years 1974 
and 1975, which amounts are authorized to remain available 
until expended.
    [``Sec. 108. Application of Existing Provisions.--
Assistance under this chapter shall be furnished in accordance 
with the provisions of titles I, II, or X of chapter 2 of this 
part, and nothing in this chapter shall be construed to make 
inapplicable the restrictions, criteria, authorities, or other 
provisions of this or any other Act in accordance with which 
assistance furnished under this chapter would otherwise have 
been provided.
    [``Sec. 109. Transfer of Funds.--Notwithstanding section 
108 of this Act, whenever the President determines it to be 
necessary for the purposes of this chapter, not to exceed 15 
per centum of the funds made available for any provision of 
this chapter may be transferred to, and consolidated with, the 
funds made available for any other provision of this chapter, 
and may be used for any of the purposes for which such funds 
may be used, except that the total in the provision for the 
benefit of which the transfer is made shall not be increased by 
more than 25 per centum of the amount of funds made available 
for such provision. The authority of sections 610(a) and 614(a) 
of this Act may not be used to transfer funds made available 
under this chapter for use for purposes of any other provision 
of this Act.
    [``Sec. 110. Cost-Sharing and Funding Limits.--(a) No 
assistance shall be furnished by the United States Government 
to a country under sections 103 through 107 of this Act until 
the country provides assurances to the President, and the 
President is satisfied, that such country will provide at least 
25 per centum of the costs of the entire program, project, or 
activity with respect to which such assistance is to be 
furnished except that such costs borne by such country may be 
provided on an `in-kind' basis.
    [``(b) No grant assistance shall be disbursed by the United 
States Government under section 103 through 107 of this Act for 
a project, for a period exceeding thirty-six consecutive 
months, without further justification satisfactory to the 
Congress and efforts being made to obtain sources of financing 
within that country and from other foreign countries and 
multilateral organizations.
    [``Sec. 111. Development and Use of Cooperatives.--In order 
to strengthen the participation of the urban and rural poor in 
their country's development, not less than $20,000,000 of the 
funds made available for the purposes of this chapter shall be 
available during the fiscal years 1974 and 1975 only for 
assistance in the development of cooperatives in the less 
developed countries which will enable and encourage greater 
numbers of the poor to help themselves toward a better life.
    [``Sec. 112. Prohibiting Police Training.--(a) No part of 
any appropriation made available to carry out this Act shall be 
used to conduct any police training or related program in a 
foreign country.
    [``(b) Subsection (a) of this section shall not apply--
            [``(1) with respect to assistance rendered under 
        section 515(c) of the Omnibus Crime Control and Safe 
        Streets Act of 1968, as amended, or with respect to any 
        authority of the Drug Enforcement Administration or the 
        Federal Bureau of Investigation which relates to crimes 
        of the nature which are unlawful under the laws of the 
        United States; or
            [``(2) to any contract entered into prior to the 
        date of enactment of this section with any person, 
        organization, or agency of the United States Government 
        to provide personnel to conduct, or assist in 
        conducting, any such program.
Notwithstanding paragraph (2), subsection (a) shall apply to 
any renewal or extension of any contract referred to in such 
paragraph entered into on or after such date of enactment.
    [``Sec. 113. Integrating Women Into National Economies.--
Sections 103 through 107 of this Act shall be administered so 
as to give particular attention to those programs, projects, 
and activities which tend to integrate women into the national 
economies of foreign countries, thus improving their status and 
assisting the total development effort.
    [``Sec. 114. Limiting Use of Fund for Abortions.--None of 
the funds made available to carry out this part shall used to 
pay for the performance of abortions as a method of family 
planning or to motivate or coerce any person to practice 
abortions.''

                         [development loan fund

    [Sec. 3. (a) Section 203 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 203. Fiscal Provisions.--Not more than 50 per 
centum of dollar receipts scheduled to be paid during each of 
the fiscal years 1974 and 1975 from loans made pursuant to this 
part and from loans made under predecessor foreign assistance 
legislation are authorized to be made available for each such 
fiscal year for use for purposes of making loans under chapter 
1 of this part. Such receipts shall remain available until 
expended.''
    [(b) Effective July 1, 1975, such section 203 is repealed.

             [technical cooperation and development grants

    [Sec. 4. Title II of chapter 2 of part I of the Foreign 
Assistance Act of 1961 is amended as follows:
    [(1) In section 211(a), in the last sentence immediately 
after the word ``assistance'', insert the word ``directly''.
    [(2) In section 214, strike out subsections (c) and (d) and 
insert in lieu thereof the following:
    [``(c) To carry out the purposes of this section, there are 
authorized to be appropriated to the President for each of the 
fiscal years 1974 and 1975 $19,000,000, which amounts are 
authorized to remain available until expended.
    [``(d) There are authorized to be appropriated to the 
President to carry out the purposes of this section, in 
addition to funds otherwise available for such purposes, for 
each of the fiscal years 1974 and 1975 $6,500,000 in foreign 
currencies which the Secretary of the Treasury determines to be 
excess to the normal requirements of the United States.
    [``(e) Not later than June 30, 1974, the Secretary of State 
shall submit to the Congress such recommendations (including 
recommendations concerning which agency of the United States 
Government should administer such assistance) as he considers 
desirable for assistance to schools, libraries, and hospital 
centers for medical education and research, outside the United 
States, founded or sponsored by United States citizens and 
serving as study and demonstration centers for ideas and 
practices of the United States.''

                          [housing guaranties

    [Sec. 5. Title III of chapter 2 of part I of the Foreign 
Assistance Act of 1961 is amended as follows:
    [(1) In section 221, strike out ``$205,000,000'' and insert 
in lieu thereof ``$305,000,000''.
    [(2) In section 223(i), strike out ``June 30, 1974'' and 
insert in lieu thereof ``June 30, 1975''.

                [overseas private investment corporation

    [Sec. 6. Title IV of chapter 2 of part I of the Foreign 
Assistance Act of 1961 is amended as follows:
    [(1) In section 235(a)(4), strike out ``June 30, 1974'' and 
insert in lieu thereof ``December 31, 1974''.
    [(2) In section 240(h), strike out ``June 30, 1973'' and 
insert in lieu thereof ``December 31, 1974''.

                         [alliance for progress

    [Sec. 7. Section 252(b) of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``(b) There are authorized to be appropriated to the 
President for the fiscal year 1974, $934,000, and for the 
fiscal year 1975, $934,000, for grants to the National 
Association of the Partners of the Alliance, Inc., in 
accordance with the purposes of this title.''

                [programs relating to population growth

    [Sec. 8. Section 292 of the Foreign Assistance Act of 1961 
is amended by striking out ``for each of the fiscal years 1972 
and 1973, $125,000,000'' and inserting in lieu thereof ``for 
the fiscal year 1974, $125,000,000, and for the fiscal year 
1975, $130,000,000''.

               [international organizations and programs

    [Sec. 9. Chapter 3 of part I of the Foreign Assistance Act 
of 1961 is amended as follows:
    [(1) At the end of section 301 add the following new 
subsection:
    [``(e)(1) In the case of the United Nations and its 
affiliated organizations, including the International Atomic 
Energy Agency, the President shall, acting through the United 
States representative to such organizations, propose and 
actively seek the establishment by the governing authorities of 
such organizations a single professionally qualified group of 
appropriate size for the purpose of providing an independent 
and continuous program of selective examination, review, and 
evaluation of the programs and activities of such 
organizations. Such proposal shall provide that such group 
shall be established in accordance with such terms of reference 
as such governing authority may prescribe and that the reports 
of such group on each examination, review, and evaluation shall 
be submitted directly to such governing authority for 
transmittal to the representative of each individual member 
nation. Such proposal shall further include a statement of 
auditing and reporting standards, as prepared by the 
Comptroller General of the United States, for the consideration 
of the governing authority of the international organization 
concerned to assist in formulating terms of reference for such 
review and evaluation group.
    [``(2) In the case of the International Bank for 
Reconstruction and Development and the Asian Development Bank, 
the President shall, acting through the United States 
representative to such organizations, propose and actively seek 
the establishment by the governing authorities of such 
organizations professionally qualified groups of appropriate 
size for the purpose of providing an independent and continuous 
program of selective examination, review, and evaluation of the 
programs and activities of such organizations. Such proposal 
shall provide that such groups shall be established in 
accordance with such terms of reference as such governing 
authorities may prescribe, and that the reports of such groups 
on each examination, review, and evaluation shall be submitted 
directly to such governing authority for transmittal to the 
representative of each individual member nation. Such proposal 
shall further include a statement of auditing and reporting 
standards, as prepared by the Comptroller General of the United 
States, for the consideration of the governing authority of the 
international organization concerned to assist in formulating 
terms of reference for such review and evaluation groups.
    [``(3) Reports received by the United States 
representatives to these international organizations under this 
subsection and related information on actions taken as a result 
of recommendations made therein shall be submitted promptly to 
the President for transmittal to the Congress and to the 
Comptroller General. The Comptroller General shall periodically 
review such reports and related information and shall report 
simultaneously to the Congress and to the President any 
suggestions the Comptroller General may deem appropriate 
concerning auditing and reporting standards followed by such 
groups, the recommendations made and actions taken as a result 
of such recommendations.''
    [(2) In section 302(a), strike out ``for the fiscal year 
1972, $138,000,000 and for the fiscal year 1973, $138,000,000'' 
and insert in lieu thereof ``for the fiscal year 1974, 
$127,822,000 and for the fiscal year 1975, $150,000,000''.
    [(3) In section 302(b)(2), strike out ``for use in the 
fiscal year 1972, $15,000,000, and for use in the fiscal year 
1973, $15,000,000'' and insert in lieu thereof ``for use in the 
fiscal year 1974, $14,500,000, and for use in the fiscal year 
1975, $14,500,000,''.
    [(4) Section 302(d) is amended to read as follows:
    [``(d) Of the funds made available to carry out this 
chapter for each of the fiscal years 1974 and 1975, $18,000,000 
shall be available in each such fiscal year only for 
contributions to the United Nations Children's Fund.''
    [(5) In section 302(e), strike out ``$1,000,000 for the 
fiscal year 1972 and $1,000,000 for the fiscal year 1973'' and 
insert in lieu thereof ``$2,000,000 for the fiscal year 1974 
and $2,000,000 for the fiscal year 1975''.

                           [contingency fund

    [Sec. 10. Section 451(a) of the Foreign Assistance Act of 
1961 is amended to read as follows: ``(a) There is authorized 
to be appropriated to the President for each of the fiscal 
years 1974 and 1975 not to exceed $30,000,000, to provide 
assistance authorized by this part primarily for disaster 
relief purposes, in accordance with the provisions applicable 
to the furnishing of such assistance.''

                    [international narcotics control

    [Sec. 11. (a) Section 481 of the Foreign Assistance Act of 
1961 is amended by inserting ``(a)'' immediately after 
``International Narcotics Control.--'' and by adding at the end 
thereof the following new subsection:
    [``(b)(1) Not later than forty-five days after the date on 
which each calendar quarter of each year ends, the President 
shall transmit to the Speaker of the House of Representatives, 
and to the Committee on Foreign Relations of the Senate, a 
report on the programing and obligation, on a calendar quarter 
basis, of funds under this chapter prior to such date.
    [``(2) Not later than forty-five days after the date on 
which the second calendar quarter of each year ends and not 
later than forty-five days after the date on which the fourth 
calendar quarter of each year ends, the President shall 
transmit to the Speaker of the House of Representatives, and to 
the Committee on Foreign Relations of the Senate, a complete 
and detailed semiannual report on the activities and operations 
carried out under this chapter prior to such date. Such 
semiannual report shall include, but shall not be limited to--
            [``(A) the status of each agreement concluded prior 
        to such date with other countries to carry out the 
        purposes of this chapter; and
            [``(B) the aggregate of obligations and 
        expenditures made, and the types and quantity of 
        equipment provided, on a calendar quarter basis, prior 
        to such date--
                    [``(i) to carry out the purposes of this 
                chapter with respect to each country and each 
                international organization receiving assistance 
                under this chapter, including the cost of 
                United States personnel engaged in carrying out 
                such purposes in each such country and with 
                each such international organization;
                    [``(ii) to carry out each program conducted 
                under this chapter in each country and by each 
                international organization, including the cost 
                of United States personnel engaged in carrying 
                out each such program; and
                    [``(iii) for administrative support 
                services within the United States to carry out 
                the purposes of this chapter, including the 
                cost of United States personnel engaged in 
                carrying out such purposes in the United 
                States.''
    [(b) Section 482 of the Foreign Assistance Act of 1961 is 
amended by striking out ``$42,500,000'' and all that follows 
down through the period at the end of such section and 
inserting in lieu thereof ``$42,500,000 for each of the fiscal 
years 1974 and 1975. Amounts appropriated under this section 
are authorized to remain available until expended.''

                          [military assistance

    [Sec. 12. (a) Chapter 1 of part II of the Foreign 
Assistance Act of 1961 is amended by adding at the end thereof 
the following new section:
    [``Sec. 502A. Excess Defense Articles.--Excess defense 
articles shall be provided whenever possible rather than 
providing such articles by the procurement of new items.''
    [(b) Chapter 2 of part II of the Foreign Assistance Act of 
1961 is amended as follows:
            [(1) Section 503 is amended to read as follows:
    [``Sec. 503. General Authority.--(a) The President is 
authorized to furnish military assistance, on such terms and 
conditions as he may determine, to any friendly country or 
international organization, the assisting of which the 
President finds will strengthen the security of the United 
States and promote world peace and which is otherwise eligible 
to receive such assistance, by--
            [``(1) acquiring from any source and providing (by 
        loan or grant) any defense article or defense service; 
        or
            [``(2) assigning or detailing members of the Armed 
        Forces of the United States and other personnel of the 
        Department of Defense to perform duties of a 
        noncombatant nature.
    [``(b) In addition to such other terms and conditions as 
the President may determine pursuant to subsection (a), defense 
articles may be loaned thereunder only if--
            [``(1) there is a bona fide reason, other than the 
        shortage of funds, for providing such articles on a 
        loan basis rather than on a grant basis;
            [``(2) there is a reasonable expectation that such 
        articles will be returned to the agency making the loan 
        at the end of the loan period, unless the loan is then 
        renewed;
            [``(3) the loan period is of fixed duration not 
        exceeding five years, during which such article may be 
        recalled for any reason by the United States;
            [``(4) the agency making the loan is reimbursed for 
        the loan based on the amount charged to the 
        appropriation for military assistance under subsection 
        (c); and
            [``(5) arrangements are made with the agency making 
        the loan to be reimbursed in the event such article is 
        lost or destroyed while on loan, such reimbursement 
        being made first out of any funds available to carry 
        out this chapter and based on the depreciated value of 
        the article at the time of loss or destruction.
    [``(c)(1) In the case of any loan of a defense article or 
defense service made under this section, there shall be a 
charge to the appropriation for military assistance for any 
fiscal year while the article or service is on loan in an 
amount based on--
            [``(A) the out-of-pocket expenses authorized to be 
        incurred in connection with such loan during such 
        fiscal year; and
            [``(B) the depreciation which occurs during such 
        year while such article is on loan.
    [``(2) The provisions of this subsection shall not apply--
            [``(A) to any particular defense article or defense 
        service which the United States Government agreed, 
        prior to the date of enactment of this subsection, to 
        lend; and
            [``(B) to any defense article or defense service, 
        or portion thereof, acquired with funds appropriated 
        for military assistance under this Act.''
    [(2) In section 504(a)--
            [(A) strike out ``$500,000,000 for the fiscal year 
        1972'' and insert in lieu thereof ``$512,500,000 for 
        the fiscal year 1974''; and
            [(B) strike out ``forty countries'' and insert in 
        lieu thereof ``thirty-one countries''.
    [(3) Section 505 is amended by adding the following new 
subsections at the end thereof:
    [``(e) In considering a request for approval of any 
transfer of any weapon, weapons system, munitions, aircraft, 
military boat, military vessel, or other implement of war to 
another country, the President shall not give his consent under 
subsection (a)(1) or (a)(4) to the transfer unless the United 
States itself would transfer the defense article under 
consideration to that country, and prior to the date he intends 
to give his consent to the transfer, the President notifies the 
Speaker of the House of Representatives and the Committee on 
Foreign Relations of the Senate in writing of each such 
intended consent, the justification for giving such consent, 
the defense article for which he intends to give his consent to 
be so transferred, and the foreign country to which that 
defense article is to be transferred. In addition, the 
President shall not give his consent under subsection (a)(1) or 
(a)(4) to the transfer of any significant defense articles on 
the United States Munitions List unless the foreign country 
requesting consent to transfer agrees to demilitarize such 
defense articles prior to transfer, or the proposed recipient 
foreign country provides a commitment in writing to the United 
States Government that it will not transfer such defense 
articles, if not demilitarized, to any other foreign country or 
person without first obtaining the consent of the President.
    [``(f) Effective July 1, 1974, no defense article shall be 
furnished to any country on a grant basis unless such country 
shall have agreed that the net proceeds of sale received by 
such country in disposing of any weapon, weapons system, 
munition, aircraft, military boat, military vessel, or other 
implement of war received under this chapter will be paid to 
the United States Government and shall be available to pay all 
official costs of the United States Government payable in the 
currency of that country, including all costs relating to the 
financing of international educational and cultural exchange 
activities in which that country participates under the 
programs authorized by the Mutual Educational and Cultural 
Exchange Act of 1961.''
    [(4) In section 506(a)--
            [(A) strike out ``the fiscal year 1972'' in each 
        place it appears and insert in lieu thereof ``the 
        fiscal year 1974'';
            [(B) strike out ``vital to the security'' and 
        insert in lieu thereof ``in the security interests''; 
        and
            [(C) strike out ``$300,000,000'' and insert in lieu 
        thereof ``$250,000,000''.
    [(5) Sections 507, 508, 509, 512, and 514 are repealed.
    [(6) Section 513 is amended--
            [(A) by striking out ``Thailand.--'' in the section 
        heading and inserting in lieu thereof ``Thailand and 
        Laos.--(a)''; and
            [(B) by adding at the end thereof the following new 
        subsection:
    [``(b) After June 30, 1974, no military assistance shall be 
furnished by the United States to Laos directly or through any 
other foreign country unless that assistance is authorized 
under this Act or the Foreign Military Sales Act.''
    [(c) Section 655(c) shall not apply to assistance 
authorized to be furnished under any provision of law for 
fiscal year 1974.

                    [security supporting assistance

    [Sec. 13. Chapter 4 of part II of the Foreign Assistance 
Act of 1961 is amended--
            [(1) in section 532 by striking out ``for the 
        fiscal year 1972 not to exceed $618,000,000, of which 
        not less than $50,000,000 shall be available solely for 
        Israel'' and inserting in lieu thereof ``for the fiscal 
        year 1974 not to exceed $125,000,000, of which not less 
        than $50,000,000 shall be available solely for 
        Israel''; and
            [(2) by striking out section 533.

                       [termination of assistance

    [Sec. 14. Section 617 of the Foreign Assistance Act of 1961 
is amended by striking out ``twelve'' and inserting in lieu 
thereof ``eight''.

                             [prohibitions

    [Sec. 15. The first full paragraph of section 620(e)(1) of 
the Foreign Assistance Act of 1961 is amended by striking out 
``no other provision of this Act shall be construed to 
authorize the President to waive the provisions of this 
subsection.'' and inserting in lieu thereof ``the provisions of 
this subsection shall not be waived with respect to any country 
unless the President determines and certifies that such a 
waiver is important to the national interests of the United 
States. Such certification shall be reported immediately to 
Congress.''

                        [employment of personnel

    [Sec. 16. Section 625 of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the following new 
subsection:
    [``(k)(1) In accordance with such regulations as the 
President may prescribe, the following categories of personnel 
who serve in the agency primarily responsible for administering 
part I of this Act shall become participants in the Foreign 
Service Retirement and Disability System:
            [``(A) persons serving under unlimited appointments 
        in employment subject to subsection (d)(2) of this 
        section as Foreign Service Reserve officers and as 
        Foreign Service staff officers and employees; and
            [``(B) a person serving in a position to which he 
        was appointed by the President, whether with or without 
        the advice and consent of the Senate, if (i) such 
        person shall have served previously under an unlimited 
        appointment pursuant to such subsection (d)(2) or a 
        comparable provision of predecessor legislation to this 
        Act, and (ii) following service specified in clause (i) 
        of this subparagraph, such person shall have served 
        continuously with such agency or its predecessor 
        agencies only in positions established under the 
        authority of sections 624(a) and 631(b) or comparable 
        provisions of predecessor legislation to this Act.
    [``(2) Upon becoming a participant in the Foreign Service 
Retirement and Disability System, any such officer or employee 
shall make a special contribution to the Foreign Service 
Retirement and Disability Fund in accordance with the 
provisions of section 852 of the Foreign Service Act of 1946, 
as amended. Thereafter, compulsory contributions will be made 
with respect to each such participating officer or employee in 
accordance with the provisions of section 811 of the Foreign 
Service Act of 1946, as amended.
    [``(3) The provisions of section 636 and title VIII of the 
Foreign Service Act of 1946, as amended, shall apply to 
participation in the Foreign Service Retirement and Disability 
System by any such officer or employee.
    [``(4) If an officer who becomes a participant in the 
Foreign Service Retirement and Disability System under 
paragraph (1) of this subsection is appointed by the President, 
by and with the advice and consent of the Senate, or by the 
President alone, to a position in any agency of the United 
States Government, any United States delegation or mission to 
any international organization, in any international 
commission, or in any international body, such officer shall 
not, by virtue of the acceptance of such an appointment, lose 
his status as a participant in the system.
    [``(5) Any such officer or employee who becomes a 
participant in the Foreign Service Retirement and Disability 
System under paragraph (1) of this subsection shall be 
mandatorily retired (A) at the end of the month in which he 
reaches age seventy, or (B) earlier, if, during the third year 
after the effective date of this subsection, he attains age 
sixty-four or if he is over age sixty-four; during the fourth 
year at age sixty-three; during the fifth year at age sixty-
two; during the sixth year at age sixty-one; and thereafter at 
the end of the month in which he reaches age sixty. However, no 
participant shall be mandatorily retired under this paragraph 
while serving in a position to which appointed by the 
President, by and with the advice and consent of the Senate. 
Any participant who completes a period of authorized service 
after reaching the mandatory retirement age specified in this 
paragraph shall be retired at the end of the month in which 
such service is completed.
    [``(6) Whenever the President deems it to be in the public 
interest, he may extend any participant's service for a period 
not to exceed five years after the mandatory retirement date of 
such officer or employee.
    [``(7) This subsection shall become effective on the first 
day of the first month which begins more than one year after 
the date of its enactment, except that any officer or employee 
who, before such effective date, meets the requirements for 
participation in the Foreign Service Retirement and Disability 
System under paragraph (1) of this subsection may elect to 
become a participant before the effective date of this 
subsection. Such officer or employee shall become a participant 
on the first day of the second month following the date of his 
application for earlier participation. Any officer or employee 
who becomes a participant in the system under the provisions of 
paragraph (1) of this subsection, who is age fifty-seven or 
over on the effective date of this subsection, may retire 
voluntarily at any time before mandatory retirement under 
paragraph (5) of this subsection and receive retirement 
benefits under section 821 of the Foreign Service Act of 1946, 
as amended.
    [``(8) Any officer or employee who is separated for cause 
while a participant in the Foreign Service Retirement and 
Disability System pursuant to this subsection, shall be 
entitled to benefits in accordance with section 637 (b) and (d) 
of the Foreign Service Act of 1946, as amended. The provisions 
of subsection (e) of this section shall apply to participants 
in lieu of the provisions of sections 633 and 634 of the 
Foreign Service Act of 1946, as amended.''

                        [reports and information

    [Sec. 17. Section 634 of the Foreign Assistance Act of 1961 
is amended by striking out subsection (f) and inserting in lieu 
thereof the following new subsections:
    [``(f) The President shall transmit to the Speaker of the 
House of Representatives and to the Committee on Foreign 
Relations of the Senate a comprehensive report showing, as of 
June 30 and December 31 of each year, the status of each loan 
and each contract of guarantee or insurance theretofore made 
under this Act, with respect to which there remains outstanding 
any unpaid obligation or potential liability; the status of 
each sale of defense articles or defense services on credit 
terms, and each contract of guarantee in connection with any 
such sale, theretofore made under the Foreign Military Sales 
Act, with respect to which there remains outstanding any unpaid 
obligation or potential liability; the status of each sale of 
agriculture commodities on credit terms theretofore made under 
the Agricultural Trade Development and Assistance Act of 1954, 
with respect to which there remains outstanding any unpaid 
obligation; and the status of each transaction in which a loan, 
contract of guarantee or insurance, or extension of credit (or 
participation therein) was theretofore made under the Export-
Import Bank Act of 1945, with respect to which there remains 
outstanding any unpaid obligation or potential liability. Such 
report shall include individually only any loan, contract, 
sale, extension of credit, or other transaction listed in this 
subsection in excess of $1,000,000.
    [``(g) The President shall transmit to the Speaker of the 
House of Representatives and to the Committee on Foreign 
Relations of the Senate, not later than January 31 of each 
year, a comprehensive report, based upon the latest data 
available, showing--
            [``(1) a summary of the worldwide dimensions of 
        debt-servicing problems among such countries, together 
        with a detailed statement of the debt-servicing 
        problems of each such country;
            [``(2) a summary of all forms of debt relief 
        granted by the United States with respect to such 
        countries, together with a detailed statement of the 
        specific debt relief granted with respect to each such 
        country and the purpose for which it was granted;
            [``(3) a summary of the worldwide effect of the 
        debt relief granted by the United States on the 
        availability of funds, authority, or other resources of 
        the United States to make any such loan, sale, contract 
        of guarantee or insurance, or extension of credit, 
        together with a detailed statement of the effect of 
        such debt relief with respect to each such country; and
            [``(4) a summary of the net aid flow from the 
        United States to such countries, taking into 
        consideration the debt relief granted by the United 
        States, together with a detailed analysis of such net 
        aid flow with respect to each such country.''.

                        [administrative expenses

    [Sec. 18. Section 637(a) of the Foreign Assistance Act of 
1961 is amended by striking out ``for the fiscal year 1972, 
$50,000,000, and for the fiscal year 1973, $50,000,000'' and 
inserting in lieu thereof ``for each of the fiscal years 1974 
and 1975, $45,000,000''.

                          [technical amendment

    [Sec. 19. Section 638 of the Foreign Assistance Act of 1961 
is amended by striking out ``Peace Corps Assistance'' and 
inserting in lieu thereof ``Exclusions''.

   [african sahel famine and disaster relief and development program

    [Sec. 20. Chapter 2 of part III of the Foreign Assistance 
Act of 1961 is amended by inserting after section 639 the 
following new sections:
    [``Sec. 639A. Famine and Disaster Relief of the African 
Sahel.--(a) The Congress affirms the response of the United 
States Government in providing famine and disaster relief and 
related assistance in connection with the drought in the 
Sahelian nations of Africa. The President shall report to 
Congress as soon as possible on solutions to this problem of 
famine and further propose how any of these solutions may be 
carried out by multilateral organizations.
    [``(b) Notwithstanding any prohibitions or restrictions 
contained in this or any other Act, there is authorized to be 
appropriated to the President, in addition to funds otherwise 
available for such purposes, $25,000,000 to remain available 
until expended, for use by the President, under such terms and 
conditions as he may determine, for emergency and recovery 
needs, including drought, famine, and disaster relief, and 
rehabilitation and related assistance, for the drought-stricken 
Sahelian nations of Africa.
    [``Sec. 639B. African Sahel Development Program.--The 
Congress supports the initiative of the United States 
Government in undertaking consultations and planning with the 
countries concerned, with other nations providing assistance, 
with the United Nations, and with other concerned international 
and regional organizations, toward the development and support 
of a comprehensive long-term African Sahel development 
program.''.

                  [coordination; shipping differential

    [Sec. 21. Chapter 2 of part III of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new sections:
    [``Sec. 640B. Coordination.--(a) The President shall 
establish a system for coordination of United States policies 
and programs which affect United States interests in the 
development of low-income countries. To that end, the President 
shall establish a Development Coordination Committee which 
shall advise him with respect to coordination of United States 
policies and programs affecting the development of the 
developing countries, including programs of bilateral and 
multilateral development assistance. The Committee shall 
include the head of the agency primarily responsible for 
administering part I, Chairman, and representatives of the 
Departments of State, Treasury, Commerce, Agriculture, and 
Labor, the Executive Office of the President, and other 
executive departments and agencies, as the President shall 
designate.
    [``(b) The President shall prescribe appropriate procedures 
to assure coordination among--
            [``(1) the various departments and agencies of the 
        United States Government having representatives in 
        diplomatic missions abroad; and
            [``(2) representatives of the United States 
        Government in each country, under the direction of the 
        Chief of the United States Diplomatic Mission.
The President shall keep the Congress advised of his actions 
under this subsection.
    [``(c) Programs authorized by this Act shall be undertaken 
with the foreign policy guidance of the Secretary of State.
    [``(d) The President shall report to the Congress during 
the first quarter of each calendar year on United States 
actions affecting the development of the low-income countries 
and on the impact of those undertakings upon the national 
income, employment, wages and working conditions in the United 
States.
    [``Sec. 640C. Shipping Differential.--For the purpose of 
facilitating implementation of section 901(b) of the Merchant 
Marine Act, 1936 (46 U.S.C. 1241(b)), funds made available for 
the purposes of chapter 1 of part I or for purposes of part V 
may be used to make grants to recipients to pay all or any 
portion of such differential as is determined by the Secretary 
of Commerce to exist between United States and foreign-flag 
vessel charter or freight rates. Grants made under this section 
shall be paid with United States-owned foreign currencies 
wherever feasible.''

                              [definitions

    [Sec. 22. Section 644 of the Foreign Assistance Act of 1961 
is amended as follows:
    [(1) Subsection (g) is amended to read as follows:
    [``(g) `Excess defense articles' means the quantity of 
defense articles owned by the United States Government, and not 
procured in anticipation of military assistance or sales 
requirements, or pursuant to a military assistance or sales 
order, which is in excess of the Approved Force Acquisition 
Objective and Approved Force Retention Stock of all Department 
of Defense Components at the time such articles are dropped 
from inventory by the supplying agency for delivery to 
countries or international organizations under this Act.''
    [(2) Subsection (i) is repealed.
    [(3) Subsection (m) is amended to read as follows:
    [``(m) `Value' means--
            [``(1) with respect to an excess defense article, 
        the actual value of the article plus the gross cost 
        incurred by the United States Government in repairing, 
        rehabilitating, or modifying the article, except that 
        for purposes of section 632(d) such actual value shall 
        not be taken into account;
            [``(2) with respect to a nonexcess defense article 
        delivered from inventory to foreign countries or 
        international organizations under this Act, the 
        acquisition cost to the United States Government, 
        adjusted as appropriate for condition and market value;
            [``(3) with respect to a nonexcess defense article 
        delivered from new procurement to foreign countries or 
        international organizations under this Act, the 
        contract or production costs of such article; and
            [``(4) with respect to a defense service, the cost 
        to the United States Government of such service.''

                   [annual foreign assistance report

    [Sec. 23. Section 657 of the Foreign Assistance Act of 1961 
is amended to read as follows:
    [``Sec. 657. Annual Foreign Assistance Report.--(a) In 
order that the Congress and the American people may be better 
and more currently informed regarding the volume and cost of 
assistance extended by the United States Government to foreign 
countries and international organizations, and in order that 
the Congress and the American people may be better informed 
regarding the sale of arms to foreign countries and 
international organizations by private industry of the United 
States, not later than December 31 of each year the President 
shall transmit to the Congress an annual report, for the fiscal 
year ending prior to the fiscal year in which the report is 
transmitted, showing--
            [``(1) the aggregate dollar value of all foreign 
        assistance provided by the United States Government by 
        any means to all foreign countries and international 
        organizations, and the aggregate dollar value of such 
        assistance by category provided by the United States 
        Government to each such country and organization, 
        during that fiscal year;
            [``(2) the total amounts of foreign currency paid 
        by each foreign country or international organization 
        to the United States Government in such fiscal year, 
        what each payment was made for, whether any portion of 
        such payment was returned by the United States 
        Government to the country or organization from which 
        the payment was obtained or whether any such portion 
        was transferred by the United States Government to 
        another foreign country or international organization, 
        and, if so returned or transferred, the kind of 
        assistance obtained by that country or organization 
        with those foreign currencies and the dollar value of 
        such kind of assistance.
            [``(3) the aggregate dollar value of all weapons, 
        weapons systems, munitions, aircraft, military boats, 
        military vessels, and other implements of war, and the 
        aggregate dollar value of each category of such 
        implements of war, exported under any export license, 
        to all foreign countries and international 
        organizations, and to each such country and 
        organization, during that fiscal year;
            [``(4) all exports of significant defense articles 
        on the United States Munitions List to any foreign 
        government, international organization, or other 
        foreign recipient or purchaser, by the United States 
        under this Act or any other authority, or by any 
        individual, corporation, partnership, or other 
        association doing business in the United States, 
        including but not limited to, full information as to 
        the particular defense articles so exported, the 
        particular recipient or purchaser, the terms of the 
        export, including its selling price, if any, and such 
        other information as may be appropriate to enable the 
        Congress to evaluate the distribution of United States 
        defense articles abroad; and
            [``(5) such other matters relating to foreign 
        assistance provided by the United States Government as 
        the President considers appropriate, including 
        explanations of the information required under clauses 
        (1) through (4) of this subsection.
    [``(b) All information contained in any report transmitted 
under this section shall be public information. However, in the 
case of any item of information to be included in any such 
report that the President, on an extraordinary basis, 
determines is clearly detrimental to the security of the United 
States, he shall explain in a supplemental report why 
publication of each specific item would be detrimental to the 
security of the United States. A supplemental report shall be 
transmitted to the Congress at the same time that the report is 
transmitted.
    [``(c) If the Congress is not in session at the time a 
report or supplemental report is transmitted to the Congress, 
the Secretary of the Senate and the Clerk of the House of 
Representatives shall accept the report or supplemental report 
on behalf of their respective Houses of Congress and present 
the report or supplemental report to the two Houses immediately 
upon their convening.
    [``(d) For the purposes of this section--
            [``(1) `foreign assistance' means any tangible or 
        intangible item provided by the United States 
        Government under this or any other law to a foreign 
        country or international organization, including, but 
        not limited to, any training, service, or technical 
        advice, any item of real, personal, or mixed property, 
        any agricultural commodity, United States dollars, and 
        any currencies owned by the United States Government of 
        any foreign country; and
            [``(2) `provided by the United States Government' 
        includes, but is not limited to, foreign assistance 
        provided by means of gift, loan, sale, credit, or 
        guaranty.''

                   [indochina postwar reconstruction

    [Sec. 24. The Foreign Assistance Act of 1961 is amended by 
adding at the end thereof the following new part:

                               [``Part V

    [``Sec. 801. General Authority.--The President is 
authorized to furnish, on such terms and conditions as he may 
determine, assistance for relief and reconstruction of South 
Vietnam, Cambodia, and Laos, including especially humanitarian 
assistance to refugees, civilian war casualties, and other 
persons disadvantaged by hostilities or conditions related to 
those hostilities in South Vietnam, Cambodia, and Laos. No 
assistance shall be furnished under this section to South 
Vietnam unless the President receives assurances satisfactory 
to him that no assistance furnished under this part, and no 
local currencies generated as a result of assistance furnished 
under this part, will be used for support of police, or prison 
construction and administration, within South Vietnam.
    [``Sec. 802. Authorization.--There are authorized to be 
appropriated to the President to carry out the purposes of this 
chapter, in addition to funds otherwise available for such 
purposes, for the fiscal year 1974 not to exceed $504,000,000, 
which amount is authorized to remain available until expended.
    [``Sec. 803. Assistance to South Vietnamese Children.--(a) 
It is the sense of the Congress that inadequate provision has 
been made (1) for the establishment, expansion, and improvement 
of day care centers, orphanages, hostels, school feeding 
programs, health and welfare programs, and training related to 
these programs which are designed for the benefit of South 
Vietnamese children, disadvantaged by hostilities in Vietnam or 
conditions related to those hostilities, and (2) for the 
adoption by United States citizens of South Vietnamese children 
who are orphaned or abandoned, or whose parents or sole 
surviving parent, as the case may be, has irrevocably 
relinquished all parental rights, particularly children 
fathered by United States citizens.
    [``(b) The President is, therefore, authorized to provide 
assistance, on terms and conditions he considers appropriate, 
for the purposes described in clauses (1) and (2) of subsection 
(a) of this section. Of the funds appropriated pursuant to 
section 802 for fiscal year 1974, $5,000,000, or its equivalent 
in local currency, shall be available until expended solely to 
carry out this section. Not more than 10 per centum of the 
funds made available to carry out this section may be expended 
for the purposes referred to in clause (2) of subsection (a). 
Assistance provided under this section shall be furnished, to 
the maximum extent practicable, under the auspices of and by 
international agencies or private voluntary agencies.
    [``Sec. 804. Center for Plastic and Reconstructive Surgery 
in Saigon.--Of the funds appropriated pursuant to section 802 
for the fiscal year 1974, not less than $712,000 shall be 
available solely for furnishing assistance to the Center for 
Plastic and Reconstructive Surgery in Saigon.
    [``Sec. 805. Authority.--All references to part I, whether 
heretofore or hereafter enacted, shall be deemed to be 
references also to this part unless otherwise specially 
provided. The authorities available to administer part I of 
this Act shall be available to administer programs authorized 
in this part.''

                 [FOREIGN MILITARY SALES ACT AMENDMENTS

    [Sec. 25. The Foreign Military Sales Act is amended as 
follows:
    [(1) Section 1 is amended by adding at the end thereof the 
following new paragraph:
    [``In order to reduce the role of the United States 
Government in the furnishing of defense articles and defense 
services to foreign countries and international organizations, 
and return such transactions to commercial channels, the United 
States Government shall reduce its sales, credit sales, and 
guaranties of such articles and defense services as soon as, 
and to the maximum extent, practicable.''
    [(2) Section 3 is amended--
            [(A) by striking out ``and'' at the end of 
        paragraph (2) of subsection (a) and inserting before 
        ``unless'' the following: ``and not to use or permit 
        the use of such article for purposes other than those 
        for which furnished'';
            [(B) by redesignating paragraph (3) of subsection 
        (a) as paragraph (4) and inserting after paragraph (2) 
        the following new paragraph:
            [``(3) the country or international organization 
        shall have agreed that it will maintain the security of 
        such article and will provide substantially the same 
        degree of security protection afforded to such article 
        by the United States Government; and'';
            [(C) by inserting the following immediately before 
        the last sentence of subsection (a):
        ``In considering a request for approval of any transfer 
        of any weapon, weapons system, munitions, aircraft, 
        military boat, military vessel, or other implement of 
        war to another country, the President shall not give 
        his consent under paragraph (2) to the transfer unless 
        the United States itself would transfer the defense 
        article under consideration to that country, and prior 
        to the date he intends to give his consent to the 
        transfer, the President notifies the Speaker of the 
        House of Representatives and the Committee on Foreign 
        Relations of the Senate in writing of each such 
        intended consent, the justification for giving such 
        consent, the defense article for which he intends to 
        give his consent to be so transferred, and the foreign 
        country to which that defense article is to be 
        transferred. In addition, the President shall not give 
        his consent under paragraph (2) to the transfer of any 
        significant defense articles on the United States 
        Munitions List unless the foreign country requesting 
        consent to transfer agrees to demilitarize such defense 
        articles prior to transfer, or the proposed recipient 
        foreign country provides a commitment in writing to the 
        United States Government that it will not transfer such 
        defense articles, if not demilitarized, to any other 
        foreign country or person without first obtaining the 
        consent of the President.''; and
            [(D) by adding at the end thereof the following new 
        subsections:
    [``(c) Except as otherwise provided in subsection (d), any 
foreign country which hereafter uses defense articles or 
defense services furnished such country under this Act, in 
substantial violation of any provision of this Act or any 
agreement entered into under this Act, shall be immediately 
ineligible for further cash sales, credits, or guarantees.
    [``(d) No sophisticated weapons, including sophisticated 
jet aircraft, or spare parts and associated ground equipment 
for such aircraft, shall be furnished under this or any other 
Act to any foreign country on or after the date that the 
President determines that such country has violated any 
agreement it has made in accordance with paragraph (2) of 
subsection (a) of this section or section 505(a) of the Foreign 
Assistance Act of 1961 or any other provision of law requiring 
similar agreements. Such country shall remain ineligible in 
accordance with this subsection until such time as the 
President determines that such violation has ceased, that the 
country concerned has given assurances satisfactory to the 
President that such violation will not reoccur, and that, if 
such violation involved the transfer of sophisticated weapons 
without the consent of the President, such weapons have been 
returned to the country concerned.''
    [(3) Section 22 is amended to read as follows:
    [``Sec. 22. Procurement for Cash Sales.--(a) Except as 
otherwise provided in this section, the President may, without 
requirement for charge to any appropriation or contract 
authorization otherwise provided, enter into contracts for the 
procurement of defense articles or defense services for sale 
for United States dollars to any foreign country or 
international organization if such country or international 
organization provides the United States Government with a 
dependable undertaking (1) to pay the full amount of such 
contract which will assure the United States Government against 
any loss on the contract, and (2) to make funds available in 
such amounts and at such times as may be required to meet the 
payments required by the contract, and any damages and costs 
that may accrue from the cancellation of such contract, in 
advance of the time such payments, damages, or costs are due.
    [``(b) The President may, when he determines it to be in 
the national interest, accept a dependable undertaking of a 
foreign country or international organization with respect to 
any such sale, to make full payment within 120 days after 
delivery of the defense articles or the rendering of the 
defense services. Appropriations available to the Department of 
Defense may be used to meet the payments required by the 
contracts for the procurement of defense articles and defense 
services and shall be reimbursed by the amounts subsequently 
receive from the country or international organization to whom 
articles or services are sold.''
            [(4) In section 24(c)--
                    [(A) strike out ``pursuant to section 31'' 
                and insert in lieu thereof ``to carry out this 
                Act''; and
                    [(B) insert ``principal amount of'' 
                immediately before the words ``contractual 
                liability'' wherever they appear.
            [(5) In section 31(a), strike out ``$400,000,000 
        for the fiscal year 1972'' and insert in lieu thereof 
        ``325,000,000 for fiscal year 1974''.
            [(6) In section 31(b), strike out ``(excluding 
        credits covered by guaranties issued pursuant to 
        section 24(b), and the face amount of guaranties issued 
        pursuant to sections 24 (a) and (b) shall not exceed 
        $55,000,000 for the fiscal year 1972, of which amount 
        not less than $300,000,000 shall be available to Israel 
        only'' and insert in lieu thereof ``and of the 
        principal amount of loans guaranteed pursuant to 
        section 24(a) shall not exceed $730,000,000 for the 
        fiscal year 1974, of which amount not less than 
        $300,000,000 shall be available to Israel only''.
            [(7) In section 33(a)--
                    [(A) strike out ``of cash sales pursuant to 
                sections 21 and 22,'';
                    [(B) strike out ``(excluding credits 
                covered by guaranties issued pursuant to 
                section 24(b)), of the face amount of contracts 
                of guaranty issued pursuant to sections 24 (a) 
                and (b)'' and insert in lieu thereof ``of the 
                principal amount of loans guaranteed pursuant 
                to section 24(a)''; and
                    [(C) strike out ``$100,000,000'' and insert 
                in lieu thereof ``$150,000,000''.
            [(8) In section 33(b)--
                    [(A) strike out ``of cash sales pursuant to 
                sections 21 and 22,''; and
                    [(B) strike out ``(excluding credits 
                covered by guaranties issued pursuant to 
                section 24(b)), of the face amount of contracts 
                of guaranty issued pursuant to sections 24 (a) 
                and (b)'' and insert in lieu thereof ``of the 
                principal amount of loans guaranteed pursuant 
                to section 24(a)''.
            [(9) Section 33(c) is repealed.
            [(10) In section 36, strike out subsections (a) and 
        (b).
            [(11) In section 37(b), insert after 
        ``indebtedness'' the following: ``under section 24(b) 
        (excluding such portion of the sales proceeds as may be 
        required at the time of disposition to be obligated as 
        a reserve for payment of claims under guaranties issued 
        pursuant to section 24(b), which sums are made 
        available for such obligations)''.
            [(12) Add at the end thereof the following new 
        section:
    [``Sec. 47. Definitions.--For purposes of this Act, the 
term--
            [``(1) `excess defense article' has the meaning 
        provided by section 644(g) of the Foreign Assistance 
        Act of 1961; and
            [``(2) `value' means, in the case of an excess 
        defense article, not less than the greater of--
                    [``(A) the gross cost incurred by the 
                United States Government in repairing, 
                rehabilitating, or modifying such article, plus 
                the scrap value; or
                    [``(B) the market value, if 
                ascertainable.''

      [amendments to foreign military sales act amendments of 1971

    [Sec. 26. The Act entitled ``An Act to amend the Foreign 
Military Sales Act, and for other purposes'', approved January 
12, 1971 (84 Stat. 2053), is amended as follows:
    [(1) Section 8(a) is amended by inserting immediately 
before clause (1) the following: ``(less amounts to be 
transferred under section 632(d) of the Foreign Assistance Act 
of 1961)''.
    [(2) Section 8(b) is amended--
            [(A) by striking out ``The provisions'' and 
        inserting in lieu thereof ``In the case of excess 
        defense articles which are generated abroad, the 
        provisions''; and
            [(B) by striking out ``$185,000,000'' and inserting 
        in lieu thereof ``$150,000,000''.
    [(3) Section 8(c) is amended to read as follows:
    [(c) For purposes of this section, the term `value' has the 
same meaning as given it in section 644(m) of the Foreign 
Assistance Act of 1961.''
    [(4) Section 9 is repealed.

        [public disclosure of certain munitions control licenses

    [Sec. 27. Section 414 of the Mutual Security Act of 1954 is 
amended by adding at the end thereof the following new 
subsection:
    [``(e) Licenses issued for the export of articles on the 
United States Munitions List in excess of $100,000 shall be 
reported promptly to the Committee on Foreign Relations of the 
Senate and the Committee on Foreign Affairs of the House of 
Representatives, which report shall contain--
            [``(1) the items to be exported under the license;
            [``(2) the quantity of each such item to be 
        furnished;
            [``(3) the name and address of the consignee and of 
        the ultimate user of each such item; and
            [``(4) an injunction whenever appropriate, 
        concerning the necessity to protect the confidentiality 
        of the information provided.''

                        [asian development bank

    [Sec. 28. Section 17 of the Asian Development Bank Act is 
amended by striking out ``$60,000,000 for fiscal year 1972 and 
$40,000,000 for fiscal year 1973'' and inserting in lieu 
thereof ``$100,000,000''.

                     [termination of indochina war

    [Sec. 30. No funds authorized or appropriated under this or 
any other law may be expended to finance military or 
paramilitary operations by the United States in or over 
Vietnam, Laos, or Cambodia.

                      [limitation on use of funds

    [Sec. 31. No funds authorized or appropriated under any 
provision of law shall be made available for the purpose of 
financing directly or indirectly any military or paramilitary 
combat operations by foreign forces in Laos, Cambodia, North 
Vietnam, South Vietnam, or Thailand unless (1) such operations 
are conducted by the forces of that government receiving such 
funds within the borders of that country, or (2) specifically 
authorized by law enacted after the date of enactment of this 
Act.

                          [political prisoners

    [Sec. 32. It is the sense of Congress that the President 
should deny any economic or military assistance to the 
government of any foreign country which practices the 
internment or imprisonment of that country's citizens for 
political purposes.

                      [albert schweitzer hospital

    [Sec. 33. There is authorized to be appropriated to the 
President for fiscal year 1974 $1,000,000 to make grants, on 
such terms and conditions as he may specify, to the Albert 
Schweitzer Hospital in Gabon.

          [prisoners of war and individuals missing in action

    [Sec. 34. (a) The Congress declares that--
            [(1) the families of those one thousand three 
        hundred individuals missing in action during the 
        Indochina conflict have suffered extraordinary torment 
        in ascertaining the full and complete information about 
        their loved ones who are formally classified as missing 
        in action;
            [(2) United States involvement in the Indochina 
        conflict has come to a negotiated end with the signing 
        of the Vietnam Agreement in Paris on January 27, 1973, 
        and section 307 of the Second Supplemental 
        Appropriations Act, 1973, requires that ``None of the 
        funds herein appropriated under this Act may be 
        expended to support directly or indirectly combat 
        activities in or over Cambodia, Laos, North Vietnam and 
        South Vietnam or off the shores of Cambodia, Laos, 
        North Vietnam and South Vietnam by United States 
        forces, and after August 15, 1973, no other funds 
        heretofore appropriated under any other Act may be 
        expended for such purpose.'';
            [(3) the question of the return of prisoners of war 
        and accounting for individuals missing in action and 
        dead in Laos is covered by article 18 of the Protocol 
        signed by representatives of the Lao Patriotic Front 
        (Pathet Lao) and the Royal Laotian Government in 
        Vientiane on September 14, 1973 (which implements 
        article 5 of the Agreement signed by the Pathet Lao and 
        that government in Vientiane on February 21, 1973, 
        requiring the release of all prisoners ``regardless of 
        nationality'' captured and held in Laos), and paragraph 
        C of such article 18 provides that, within ``15 to 30 
        days'' from the date of the signing of the Protocol, 
        each side is to report the number of those prisoners 
        and individuals still held, with an indication of their 
        nationality and status, together with a list of names 
        and any who died in captivity; and
            [(4) few of the United States men lost in Laos 
        during the military engagements in Indochina have been 
        returned, and with knowledge about many of these men 
        not yet being fully disclosed, and the North Vietnam 
        cease-fire provisions calling for inspection of crash 
        and grave sites and for other forms of cooperation have 
        not been fully complied with.
    [(b) It is, therefore, the sense of the Congress that--
            [(1) the provisions for the release of prisoners 
        and an accounting of individuals missing and dead, as 
        provided for in article 18 of the Protocol signed on 
        September 14, 1973, by the Pathet Lao and the Royal 
        Laotian Government, by adhered to in spirit and in 
        deed; and
            [(2) the faithful compliance with the spirit of the 
        Laotian Agreement and Protocol on the question of 
        individuals missing in action will encourage all 
        parties in Indochina to cooperate in providing complete 
        information on all nationals of any nation who may be 
        captured or missing at any place in Indochina.

                            [rights in chile

    [Sec. 35. It is the sense of the Congress that (1) the 
President should request the Government of Chile to protect the 
human rights of all individuals, Chilean and foreign, as 
provided in the Universal Declaration of Human Rights, the 
Convention and Protocol Relating the Status of Refugees, and 
other relevant international legal instruments guaranteeing the 
granting of asylum, safe conduct, and the humane treatment or 
release of prisoners; (2) the President should support 
international humanitarian initiatives by the United Nations 
High Commissioner for Refugees and the International Committee 
of the Red Cross to insure the protection and safe conduct and 
resettlement of political refugees, the humane treatment of 
political prisoners, and the full inspection of detention 
facilities under international auspices; (3) the President 
should support and facilitate efforts by voluntary agencies to 
meet emergency relief needs; and (4) the President should 
request of the Inter-American Commission on Human Rights to 
undertake an immediate inquiry into recent events occurring in 
Chile.

           [revision of social progress trust fund agreement

    [Sec. 36. (a) The President or his delegate shall seek, as 
soon as possible, a revision of the Social Progress Trust Fund 
Agreement (dated June 19, 1961) between the United States and 
the Inter-American Development Bank. Such revision should 
provide for the--
            [(1) periodic transfer of unencumbered capital 
        resources of such trust fund, and of any future 
        repayments or other accruals otherwise payable to such 
        trust fund, to the Inter-American Foundation, to be 
        administered by the Foundation for purposes of part IV 
        of the Foreign Assistance Act of 1969 (22 U.S.C. 290f 
        and following);
            [(2) utilization of such unencumbered capital 
        resources, future repayments, and other accruals by the 
        Inter-American Development Bank for purposes of 
        sections 1 and 2 of the Latin American Development Act 
        (22 U.S.C. 1942 and 1943) in such a way that the 
        resources received in the currencies of the more 
        developed member countries are utilized to the extent 
        possible for the benefit of the lesser developed member 
        countries; or
            [(3) both the transfer described in paragraph (1) 
        and the utilization described in paragraph (2).
    [(b) Any transfer or utilization under this section shall 
be in such proportions as may be agreed to between the United 
States and the Inter-American Development Bank.
    [(c) Any transfer under subsection (a)(1) shall be in the 
amounts, and in available currencies, determined in 
consultation with the Inter-American Foundation, to be required 
for its program purposes.
    [(d) The revision of the Social Progress Trust Fund 
Agreement pursuant to this section shall provide that the 
President or his delegate shall specify, from time to time, 
after consultation with the Inter-American Development Bank, 
the particular currencies to be used in making the transfer or 
utilization described in the section.

                         [world food shortages

    [Sec. 39. (a) It is the sense of the Congress that the 
United States should participate fully in efforts to alleviate 
current and future food shortages which threaten the world. To 
this end, the President shall--
            [(1) encourage, support, and expedite studies 
        relating to the long-range implications of the world 
        food situation (including studies of national and world 
        production, distribution, and utilization of 
        agricultural commodities and other foodstuffs) and 
        support the organizing of a world food conference under 
        United Nations auspices in 1974;
            [(2) request the member nations of the General 
        Agreement on Tariffs and Trade to explore the means of 
        assuring equitable access by all national markets and 
        mineral and agricultural resources;
            [(3) consult and cooperate with appropriate 
        international agencies, such as the Food and 
        Agricultural Organization of the United Nations, in 
        determining the need for, the feasibility of, and cost 
        of an equitably-shared basis of, establishing an 
        international system of strategic food reserves; and
            [(4) report his findings and recommendations to the 
        Congress on the implementation of this section no later 
        than December 31, 1974.
    [(b) It is further the sense of the Congress that--
            [(1) in making assessments which would affect or 
        relate to the level of domestic production, the 
        Executive Branch should include in the estimates of 
        overall utilization the expected demands for 
        humanitarian food assistance through such programs as 
        are carried out under the Agricultural Trade 
        Development and Assistance Act of 1954 (Public Law 
        480); and
            [(2) legislation providing increased flexibility 
        for responding to emergency and humanitarian 
        requirements for food assistance should be considered 
        as promptly as possible to the end that the last 
        sentence of section 401 of the Agricultural Trade 
        Development and Assistance Act of 1954 (Public Law 
        480), may be amended by striking the period and 
        inserting in lieu thereof a comma and the following: 
        ``unless the Secretary determines that some part of the 
        exportable supply should be used to carry out the 
        national interest and humanitarian objectives of this 
        Act.''

                        [use of local currencies

    [Sec. 40. Effective July 1, 1974, no amount of any foreign 
currency (including principal and interest from loan 
repayments) which accrues in connection with any sale for 
foreign currency under any provision of law may be used under 
any agreement entered into after the date of the enactment of 
this Act, or any revision or extension entered into after such 
date of any prior of subsequent agreement, to provide any 
assistance to any foreign country to procure equipment, 
materials, facilities, or services for the common defense, 
including internal security unless such agreement is 
specifically authorized by legislation enacted after such 
date.]
                              ----------                              


                     FOREIGN ASSISTANCE ACT OF 1971

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, [That this 
Act may be cited as the ``Foreign Assistance Act of 1971''.

                        [food-for-peace program

    [Sec. 2. It is the sense of the Congress that funds to 
administer the food-for-peace program should not be reduced as 
the result of any reduction in the authorizations provided to 
carry out the Foreign Assistance Act of 1961.

                      [Part I--Economic Assistance

                         [development loan fund

    [Sec. 101. Title I of chapter 2 of part I of the Foreign 
Assistance Act of 1961, relating to the Development Loan Fund, 
is amended as follows:
    [(a) In section 202(a), relating to authorization--
            [(1) strike out ``and $350,000,000 for the fiscal 
        year 1971'' and insert in lieu thereof ``$350,000,000 
        for the fiscal year 1971, $250,000,000 for the fiscal 
        year 1972, and $250,000,000 for the fiscal year 1973''; 
        and
            [(2) strike out ``and June 30, 1971'' and insert in 
        lieu thereof ``June 30, 1971, June 30, 1972, and June 
        30, 1973''.
    [(b) In section 203, relating to fiscal provisions, strike 
out ``and for the fiscal year 1971'' and insert in lieu thereof 
``, for the fiscal year 1971, for the fiscal year 1972, and for 
the fiscal year 1973''.
    [(c) In section 209, relating to multilateral and regional 
programs--
            [(1) strike out subsection (a) and insert in lieu 
        thereof the following: ``(a) The Congress recognizes 
        that the planning and administration of development 
        assistance by, or under the sponsorship of the United 
        Nations, multilateral lending institutions, and other 
        multilateral organizations may contribute to the 
        efficiency and effectiveness of that assistance through 
        participation of other donors in the development 
        effort, improved coordination of policies and programs, 
        pooling of knowledge, avoidance of duplication of 
        facilities and manpower, and greater encouragement of 
        self-help performance.'';
            [(2) insert at the end thereof the following new 
        subsections:
    [``(c) Notwithstanding any other provision of law, the 
President should reduce the amounts and numbers of loans made 
by the United States directly to individual foreign countries 
with the objective of reducing the total amount of bilateral 
loans made under this Act so that, by not later than June 30, 
1975, such total amount shall not exceed $100,000,000.
    [``(d) In furtherance of the provisions of subsection (a) 
of this section, any funds appropriated under this part I may 
be transferred by the President to the International 
Development Association, the International Bank for 
Reconstruction and Development, the International Finance 
Corporation, the Asian Development Bank or other multilateral 
lending institutions and multilateral organizations in which 
the United States participates for the purpose of providing 
funds to enable any such institution or organization to make 
loans to foreign countries.''; and
            [(3) strike out of subsection (b) ``Regional 
        Programs.--''.
    [(d) Section 205, relating to transfers to international 
financial institutions, is repealed.

             [technical cooperation and development grants

    [Sec.  102. Title II of chapter 2 of part I of the Foreign 
Assistance Act of 1961, relating to technical cooperation and 
development grants, is amended as follows:
    [(a) In section 212, relating to authorization, strike out 
``$183,500,000 for the fiscal year 1970, and $183,500,000 for 
the fiscal year 1971'' and insert in lieu thereof 
``$175,000,000 for the fiscal year 1972, and $175,000,000 for 
the fiscal year 1973''.
    [(b) In section 214(c), relating to authorization for 
American schools and hospitals abroad, strike out ``for the 
fiscal year 1970, $25,000,000, and for the fiscal year 1971, 
$12,900,000'' and insert in lieu thereby ``for the fiscal year 
1972, $30,000,000 and for the fiscal year 1973, $30,000,000''.
    [(c) At the end of such title II, add the following new 
section:
    [``Sec.  202A. Suez Canal.--The President is authorized to 
furnish financial assistance, on such terms and conditions as 
he may determine, for assisting in the reopening of the Suez 
Canal after agreement has been reached by the parties involved, 
which agreement provides for the use of the Canal by the ships 
of all nations, including Israel, on a nondiscriminatory basis. 
For the purpose of carrying out this section, there are 
authorized to be appropriated not to exceed $10,000,000 in 
Egyptian pounds now owned by the United States and determined 
by the President to be excess to the normal requirements of 
departments and agencies of the United States. Amounts 
appropriated under this section are authorized to remain 
available until expended.''.

                          [housing guaranties

    [Sec. 103. Title III of chapter 2 of part I of the Foreign 
Assistance Act of 1961, relating to housing guaranties, is 
amended as follows:
    [(a) In section 221, strike out ``$130,000,000'' and insert 
in lieu thereof $205,000,000''.
    [(b) In section 223(i), strike out ``June 30, 1972'' and 
insert in lieu thereof ``June 30, 1974''.

                [overseas private investment corporation

    [Sec. 104. Title IV of chapter 2 of part I of the Foreign 
Assistance Act of 1961, relating to the Overseas Private 
Investment Corporation, is amended as follows:
    [(a) In the first proviso of section 238(c), relating to 
definitions, strike out ``required by law to be''.
    [(b) At the end of section 239, relating to general 
provisions and powers, add the following new subsection:
    [``(g) Except for the provisions of this title, no other 
provision of this or any other law shall be construed to 
prohibit the operation in Yugoslavia or Romania of the programs 
authorized by this title, if the President determines that the 
operation of such program in such country is important to the 
national interest.''.
    [(c) Section 240(h), relating to agricultural credit and 
self-help community development projects, is amended by 
striking out ``June 30, 1972'' and inserting in lieu thereof 
``June 30, 1973''.

                         [ALLIANCE FOR PROGRESS

    [Sec. 105. Section 252(a) of title VI of chapter 2 of part 
I of the Foreign Assistance Act of 1961, relating to 
authorization for the Alliance for Progress, is amended--
            [(1) by striking out ``for the fiscal year 1970, 
        $428,250,000, and for the fiscal year 1971, 
        $428,250,000'' and inserting in lieu thereof ``for the 
        fiscal year 1972, $295,000,000, and for the fiscal year 
        1973, $295,000,000''; and
            [(2) by striking out ``$90,750,000'' and inserting 
        in lieu thereof ``$88,500,000''.

                [PROGRAMS RELATING TO POPULATION GROWTH

    [Sec. 106. Section 292 of title X of chapter 2 of part I of 
the Foreign Assistance Act of 1961, relating to authorization, 
is amended to read as follows:
    [``Sec. 292. Authorization.--Of the funds provided to carry 
out the provisions of this part I for each of the fiscal years 
1972 and 1973, $125,000,000 shall be available in each such 
fiscal year only to carry out the purposes of this title, and, 
notwithstanding any other provisions of this Act, funds used 
for such purposes may be used on a loan or grant basis.''.

               [INTERNATIONAL ORGANIZATIONS AND PROGRAMS

    [Sec. 107. Section 302 of chapter 3 of part I of the 
Foreign Assistance Act of 1961, relating to authorization, is 
amended as follows:
    [(a) In subsection (a), strike out ``for the fiscal year 
1970, $122,620,000, and for the fiscal year 1971, 
$122,620,000'' and insert in lieu thereof ``for the fiscal year 
1972, $138,000,000, and for the fiscal year 1973, 
$138,000,000''.
    [(b) In subsection (b)(2)--
            [(1) strike out ``for use in the fiscal year 1970, 
        $7,530,000, and for use in the fiscal year 1971, 
        $7,530,000'' and insert in lieu thereof ``for use in 
        the fiscal year 1972, $15,000,000, and for use in the 
        fiscal year 1973, $15,000,000''; and
            [(2) add at the end thereof the following new 
        sentence: ``The President shall not exercise any 
        special authority granted to him under section 610(a) 
        or 614(a) of this Act to transfer any amount 
        appropriated under this paragraph to, and to 
        consolidate such amount with, any funds made available 
        under any other provision of this Act.''.
    [(c) In subsection (e), strike out ``$1,000,000 for the 
fiscal year 1970 and $1,000,000 for the fiscal year 1971'' and 
insert in lieu thereof ``$1,000,000 for the fiscal year 1972 
and $1,000,000 for the fiscal year 1973''.
    [(d) At the end of such section 302, add the following new 
subsection:
    [``(f) There are authorized to be appropriated to the 
President, in addition to other amounts available for such 
purposes, $1,000,000 for the fiscal year 1972 and $1,000,000 
for the fiscal year 1973, in Egyptian pounds owned by the 
United States and determined by the President to be excess to 
the requirements of departments and agencies of the United 
States, for the purposes of providing technical and vocational 
training and other assistance to Arab refugees. Amounts 
appropriated under this subsection are authorized to remain 
available until expended.''.

                           [contingency fund

    [Sec. 108. Section 451(a) of chapter 5 of part I of the 
Foreign Assistance Act of 1961, relating to the contingency 
fund, is amended by striking out ``for the fiscal year 1970 not 
to exceed $15,000,000, and for the fiscal year 1971 not to 
exceed $30,000,000'' and inserting in lieu thereof ``for the 
fiscal year 1972 not to exceed $30,000,000, and for the fiscal 
year 1973 not to exceed $30,000,000''.

     [international narcotics control and refugee relief assistance

    [Sec. 109. Part I of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
chapters:

             [``CHAPTER 8--INTERNATIONAL NARCOTICS CONTROL

    [``Sec. 481. International Narcotics Control.--It is the 
sense of the Congress that effective international cooperation 
is necessary to put an end to the illicit production, 
trafficking in, and abuse of dangerous drugs. In order to 
promote such cooperation, the President is authorized to 
conclude agreements with other countries to facilitate control 
of the production, processing, transportation, and distribution 
of narcotics analgesics, including opium and its derivatives, 
other narcotic drugs and psychotropics and other controlled 
substances as defined in the Comprehensive Drug Abuse 
Prevention and Control Act of 1970 (Public Law 91-513). 
Notwithstanding any other provision of law, the President is 
authorized to furnish assistance to any country or 
international organization, on such terms and conditions as he 
may determine, for the control of the production of, possessing 
of, and traffic in, narcotic and psychotropic drugs. In 
furnishing such assistance the President may use any of the 
funds made available to carry out the provisions of this Act. 
The President shall suspend economic and military assistance 
furnished under this or any other Act, and shall suspend sales 
under the Foreign Military Sales Act and under title I of the 
Agricultural Trade Development and Assistance Act of 1954, with 
respect to any country when the President determines that the 
government of such country has failed to take adequate step to 
prevent narcotic drugs and other controlled substances (as 
defined by the Comprehensive Drug Abuse Prevention and Control 
Act of 1970) produced or processed, in whole or in part, in 
such country, or transported through such country, from being 
sold illegally within the jurisdiction of such country to 
United States Government personnel or their dependents, or from 
entering the United States unlawfully. Such suspension shall 
continue until the President determines that the government of 
such country has taken adequate steps to carry out the purposes 
of this chapter.

                [``CHAPTER 9--REFUGEE RELIEF ASSISTANCE

    [``Sec. 491. Refugee Relief Assistance.--There is 
authorized to be appropriated to the President for the fiscal 
year 1972, in addition to funds otherwise available for such 
purpose, not to exceed $250,000,000, to remain available until 
expended, for use by the President in providing assistance for 
the relief and rehabilitation of refugees from East Pakistan 
and for humanitarian relief in East Pakistan. Such assistance 
shall be distributed, to the maximum extent practicable, under 
the auspices of and by international institutions and relief 
agencies or United States voluntary agencies.''.

                     [PART II--MILITARY ASSISTANCE

    [Sec. 201. Part II of the Foreign Assistance Act of 1961, 
relating to military assistance, is amended as follows:
    [(a) In section 504(a), relating to authorization, strike 
out ``$350,000,000 for the fiscal year 1970, and $350,000,000 
for the fiscal year 1971'' and insert in lieu thereof 
``$500,000,000 for the fiscal year 1972''.
    [(b) In section 505(b)(2), relating to conditions of 
eligibility, strike out ``and'' and insert in lieu thereof 
``or''.
    [(c) Section 505(e), relating to conditions of eligibility, 
is repealed.
    [(d) In section 506(a), relating to special authority--
            [(1) strike out ``1970 and the fiscal year 1971'' 
        and insert in lieu thereof ``1972''; and
            [(2) strike out ``each of the fiscal years 1970 and 
        1971'' and insert in lieu thereof ``the fiscal year 
        1972''.
    [(e) Section 507(a), relating to restrictions on military 
aid to Latin America, is amended to read as follows: ``(a) 
Except as otherwise provided in this section, the value of 
defense articles furnished by the United States Government 
under this Act to Latin American countries shall not exceed 
$10,000,000. Not to exceed $25,000,000 in value of defense 
articles may be furnished under this part on a cost-sharing 
basis to an inter-American military force under the control of 
the Organization of American States.''.
    [(f) At the end of chapter 2 of such part II, add the 
following new sections:
    [``Sec. 511. Considerations in Furnishing Military 
Assistance.--Decisions to furnish military assistance made 
under this part shall take into account whether such assistance 
will--
            [``(1) contribute to an arms race;
            [``(2) increase the possibility of outbreak or 
        escalation of conflict; or
            [``(3) prejudice the development of bilateral or 
        multilateral arms control arrangements.
    [``Sec. 512. Military Assistance Advisory Groups and 
Missions.--(a) It is the sense of Congress that the need for 
large United States military assistance advisory groups and 
military aid missions in foreign countries has diminished 
substantially during the last few years. In the words of the 
Peterson Task Force Report on International Development. `The 
United States now can reduce its supervision and advice to a 
minimum, thus encouraging progress toward self-reliance. United 
States military missions and advisory groups should be 
consolidated with other elements in our overseas missions as 
soon as possible.'
    [``(b) In accordance with the provisions of subsection (a) 
of this section, the total number of United States military 
personnel assigned and detailed, as of September 30, 1971, to 
United States military assistance advisory groups, military 
missions, and other organizations of the United States 
performing activities similar to such groups and missions, 
shall be reduced by at least 15 per centum by September 30, 
1972, but every effort should be made to effect an aggregate 
reduction of 25 per centum by September 30, 1972.
    [``Sec. 513. Military Assistance Authorizations for 
Thailand.--After June 30, 1972, no military assistance shall be 
furnished by the United States to Thailand directly or through 
any other foreign country unless that assistance is authorized 
under this Act or the Foreign Military Sales Act.
    [``Sec. 514. Special Foreign Country Accounts.--(a) Except 
as otherwise provided in this section, no defense article may 
be given, and no grant of military assistance may be made, 
under this Act to a foreign country unless the country agrees--
    [``(1) to deposit in a special account established by the 
United States Government the following amounts of currency of 
that country:
            [``(A) in the case of any excess defense article to 
        be given to that country, an amount equal to 10 per 
        centum of the fair value of the article, as determined 
        by the Secretary of State, at the time the agreement to 
        give the article to the country is made; and
            [``(B) in the case of a grant of military 
        assistance to be made to that country, an amount equal 
        to 10 per centum of each such grant; and
    [``(2) to allow the United States Government to use such 
amounts from that special account as may be determined, from 
time to time, by the President to be necessary to pay all 
official costs of the United States Government payable in the 
currency of that country, including all costs relating to the 
financing of international educational and cultural exchange 
activities in which that country participates under the 
programs authorized by the Mutual Educational and Cultural 
Exchange Act of 1961.
    [``(b) The President may waive any amount of currency of a 
foreign country required to be deposited under subsection 
(a)(1) of this section if he determines that the United States 
Government will be able to pay all of its official costs 
payable in the currency of that country enumerated under 
subsection (a)(2) of this section without the deposit of such 
amount and without having to expend United States dollars to 
purchase currency of that country to pay such costs.
    [``(c) The provisions of this section shall not apply in 
any case in which an excess defense article is given, or a 
grant of military assistance is made--
            [``(1) to a foreign country under an agreement with 
        that country which allows the United States Government 
        to operate a military or other similar base in that 
        country in exchange for that article or grant; and
            [``(2) to South Vietnam, Cambodia, or Laos.
    [``(d) In no event shall any foreign country be required, 
under this section, to make deposits in a special account 
aggregating more than $20,000,000 in any one year.''.
    [Sec. 202. (a) At the end of such part II, add the 
following new chapter:

              [``Chapter 4--Security Supporting Assistance

    [``Sec. 531. General Authority.--The President is 
authorized to furnish assistance to friendly countries, 
organizations, and bodies eligible to receive assistance under 
this Act on such terms and conditions as he may determine, in 
order to support or promote economic or political stability. 
The authority of this chapter shall not be used to furnish 
assistance to more than twelve countries in any fiscal year.
    [``Sec. 532. Authorization.--There is authorized to be 
appropriated to the President to carry out the purposes of this 
chapter for the fiscal year 1972 not to exceed $618,000,000, of 
which not less than $50,000,000 shall be available solely for 
Israel: Provided, That where commodities are furnished on a 
grant basis under this chapter under arrangements which will 
result in the accrual of proceeds to the Government of Vietnam 
from the sale thereof, arrangements should be made to assure 
that such proceeds will not be budgeted by the Government of 
Vietnam for economic assistance projects or programs unless the 
President or his representative has given prior written 
approval. Amounts appropriated under this section are 
authorized to remain available until expended. None of the 
funds authorized by this section shall be made available to the 
Government of Vietnam unless, beginning in January 1971, and 
quarterly thereafter, the President of the United States shall 
determine that the accommodation rate of exchange, and the rate 
of exchange for United States Government purchases of piasters 
for goods and services, between said Government and the Untied 
States is fair to both countries.
    [``Sec. 533. United States Refund Claims.--It is the sense 
of the Congress that the President should seek the agreement of 
the Government of Vietnam to the establishment and maintenance 
of a separate special account of United States dollars, which 
account shall be available solely for withdrawals by the United 
States, at such times and in such amounts as the President may 
determine, in satisfaction of United States dollar refund claim 
against the Government of Vietnam arising out of operations 
conducted under this Act. Such account should be established in 
an amount not less than $10,000,000 and maintained thereafter 
at a level sufficient to cover United States refund claims as 
they arise.''.
    [(b) Chapter 4 of part I of the Foreign Assistance Act of 
1961 is hereby repealed. References to such chapter or any 
sections thereof shall hereafter be deemed to be references to 
chapter 4 of part II of the Foreign Assistance Act of 1961, as 
added by subsection (a) of this section, or to appropriate 
sections thereof. All references to part I of the Foreign 
Assistance Act of 1961 shall thereafter be deemed to be 
references also to chapter 4 of part II, and all references to 
part II of such Act shall be deemed not to include chapter 4 of 
such part II.

            [PART III--GENERAL AND ADMINISTRATIVE PROVISIONS

    [Sec. 301. Section 620 of chapter 1 of part II of the 
Foreign Assistance Act of 1961, relating to prohibitions 
against furnishing assistance, is amended by adding at the end 
thereof the following new subsections:
    [``(v) No assistance shall be furnished under this Act, and 
no sales shall be made under the Foreign Military Sales Act, to 
Greece. This restriction may be waived when the President finds 
that overriding requirements of the national security of the 
United States justify such a waiver and promptly reports such 
finding to the Congress in writing, together with his reasons 
for such finding. Notwithstanding the preceding sentence, in no 
event shall the aggregate amount of (1) assistance furnished to 
Greece under this Act, and (2) sales made to Greece under the 
Foreign Military Sales Act, in any fiscal year, exceed the 
aggregate amount expended for such assistance and such sales 
for the fiscal year 1971.
    [``(w)(1) All military, economic, or other assistance, all 
sales of defense articles and services (whether for cash or by 
credit, guaranty, or any other means), all sales of 
agricultural commodities (whether for cash, credit, or by other 
means), and all licenses with respect to the transportation of 
arms, ammunitions, and implements of war (including technical 
data relating thereto) to the Government of Pakistan under this 
or any other law shall be suspended on the date of enactment of 
this subsection.
    [``(2) The provisions of this subsection shall cease to 
apply when the President reports to the Congress that the 
Government of Pakistan is cooperating fully in allowing the 
situation in East Pakistan to return to reasonable stability 
and that refugees from East Pakistan in India have been 
allowed, to the extent feasible, to return to their homes and 
to reclaim their lands and properties.
    [``(3) Nothing in this section shall apply to the provision 
of food and other humanitarian assistance which is coordinated, 
distributed, or monitored under international auspices.''.
    [Sec. 302. Section 624 of chapter 2 of part III of the 
Foreign Assistance Act of 1961, relating to statutory officers, 
is amended by adding at the end thereof the following new 
subsection:
    [``(e) In addition to the officers otherwise provided for 
in this section, the President shall appoint, by and with the 
advice and consent of the Senate, one officer for the purpose 
of coordinating security assistance programs.''
    [Sec. 303. Section 637(a) of chapter 2 of part III of the 
Foreign Assistance Act of 1961, relating to authorization for 
administrative expenses of the agency administering part I, is 
amended by striking out ``for the fiscal year 1970, 
$51,125,000, and for the fiscal year 1971, $51,125,000'' and 
inserting in lieu thereof ``for the fiscal year 1972, 
$50,000,000, and for the fiscal year 1973, $50,000,000''.
    [Sec. 304. (a)(1) Section 652 of the Foreign Assistance Act 
of 1961, relating to miscellaneous provisions, is amended to 
read as follows:
    [``Sec. 652. Limitation Upon Exercise of Special 
Authorities.--The President shall not exercise any special 
authority granted to him under section 506(a), 610(a), or 
614(a) of this Act unless the President, prior to the date he 
intends to exercise any such authority, notifies the Speaker of 
the House of Representatives and the Committee on Foreign 
Relations of the Senate in writing of each such intended 
exercise, the section of this Act under which such authority is 
to be exercised, and the justification for, and the extent of, 
the exercise of such authority.''.
    [(2) The last sentence of section 506(a) of such Act, 
relating to special authority, is repealed.
    [(3) The last sentence of section 634(d) of such Act, 
relating to reports and information, is amended by striking out 
``610, 614(a),'' and inserting in lieu thereof ``610(b),''.
    [(b) Chapter 3 of part III of such Act is amended by adding 
at the end thereof the following new sections:
    [``Sec. 653. Change in Allocation of Foreign Assistance.--
(a) Not later than thirty days after the enactment of any law 
appropriating funds to carry out any provision of this Act 
(other than section 451 or 637), the President shall notify the 
Congress of each foreign country and international organization 
to which the United States Government intends to provide any 
portion of the funds under such law and of the amount of funds 
under that law, by category of assistance, that the United 
States Government intends to provide to each. Notwithstanding 
any other provision of law, the United States Government shall 
not provide to any foreign country or international 
organization any funds under that law which exceeds by 10 per 
centum the amount of military grant assistance or security 
supporting assistance, as the case may be, which the President 
notified the Congress that the United States Government 
intended to provide that country or organization under that 
law, unless the President (1) determines that it is in the 
security interests of the United States that such country or 
organization receive funds in excess of the amount included in 
such notification for that country or organization, and (2) 
reports to Congress, at least ten days prior to the date on 
which such excess funds are to be provided to that country or 
organization, each such determination, including the name of 
the country or organization to receive funds in excess of such 
per centum, the amount of funds in excess of that per centum 
which are to be provided, and the justification for providing 
the additional assistance.
    [``(b) The provisions of this section shall not apply in 
the case of any law making continuing appropriations and may 
not be waived under the provisions of section 614(a) of this 
Act.
    [``Sec. 654. Presidential Findings and Determinations.--(a) 
In any case in which the President is required to make a report 
to the Congress, or to any committee or officer of either House 
of Congress, concerning any finding or determination under any 
provision of this Act, the Foreign Military Sales Act, or the 
Foreign Assistance and Related Programs Appropriation Act for 
each fiscal year, that finding or determination shall be 
reduced to writing and signed by the President.
    [``(b) No action shall be taken pursuant to any such 
finding or determination prior to the date on which that 
finding or determination has been reduced to writing and signed 
by the President.
    [``(c) Each such finding or determination shall be 
published in the Federal Register as soon as practicable after 
it has been reduced to writing and signed by the President. In 
any case in which the President concludes that such publication 
would be harmful to the national security of the United States, 
only a statement that a determination or finding has been made 
by the President, including the name and section of the Act 
under which it was made, shall be published.
    [``(d) No committee or officer of either House of Congress 
shall be denied any requested information relating to any 
finding or determination which the President is required to 
report to the Congress, or to any committee or officer of 
either House of Congress, under any provision of this Act, the 
Foreign Military Sales Act, or the Foreign Assistance and 
Related Programs Appropriation Act for each fiscal year, even 
though such report has not yet been transmitted to the 
appropriate committee or officer of either House of Congress.
    [``Sec. 655. Limitations Upon Assistance to or for 
Cambodia.--(a) Notwithstanding any other provision of law, no 
funds authorized to be appropriated by this or any other law 
may be obligated in any amount in excess of $341,000,000 for 
the purpose of carrying out directly or indirectly any economic 
or military assistance, or any operation, project, or program 
of any kind, or for providing any goods, supplies, materials, 
equipment, services, personnel, or advisers in, to, for, or on 
behalf of Cambodia during the fiscal year ending June 30, 1972.
    [``(b) In computing the $341,000,000 limitation on 
obligation authority under subsection (a) of this section in 
fiscal year 1972. (1) there shall be included in the 
computation the value of any goods, supplies, materials, or 
equipment provided to, for, or on behalf of Cambodia in such 
fiscal year by gift, donation, loan, lease, or otherwise, and 
(2) there shall not be included in the computation the value of 
any goods, supplies, materials, or equipment attributable to 
the operations of the Armed Forces of the Republic of Vietnam 
in Cambodia. For the purpose of this subsection, `value' means 
the fair market value of any goods, supplies, materials, or 
equipment provided to, for, or on behalf of Cambodia but in no 
case less than 33\1/3\ per centum of the amount the United 
States paid at the time such goods, supplies, materials, or 
equipment were acquired by the United States.
    [``(c) No funds may be obligated for any of the purposes 
described in subsection (a) of this section in, to, for, or on 
behalf of Cambodia in any fiscal year beginning after June 30, 
1972, unless such funds have been specifically authorized by 
law enacted after the date of enactment of this section. In no 
case shall funds in any amount in excess of the amount 
specifically authorized by law for any fiscal year be obligated 
for any such purpose during such fiscal year.
    [``(d) The provisions of subsections (a) and (c) of this 
section shall not apply with respect to the obligation of funds 
to carry out combat air operations over Cambodia.
    [``(e) After the date of enactment of this section, 
whenever any request is made to the Congress for the 
appropriation of funds for use in, for, or on behalf of 
Cambodia for any fiscal year, the President shall furnish a 
written report to the Congress explaining the purpose for which 
such funds are to be used in such fiscal year.
    [``(f) The President shall submit to the Congress within 
thirty days after the end of each quarter of each fiscal year, 
beginning with the fiscal year which begins July 1, 1971, a 
written report showing the total amount of funds obligated in, 
for, or on behalf of Cambodia during the preceding quarter by 
the United States Government, and shall include in such report 
a general breakdown of the total amount obligated, describing 
the different purposes for which such funds were obligated and 
the total amount obligated for such purpose, except that in the 
case of the first two quarters of the fiscal year beginning 
July 1, 1971, a single report may be submitted for both such 
quarters and such report may be computed on the basis of the 
most accurate estimates the President is able to make taking 
into consideration all information available to him.
    [``(g) Enactment of this section shall not be construed as 
a commitment by the United States to Cambodia for its defense.
    [``Sec. 656. Limitations on United States Personnel and 
Personnel Assisted by United States in Cambodia.--The total 
number of civilian officers and employees of executive agencies 
of the United States Government who are citizens of the United 
States and of members of the Armed Forces of the United States 
(excluding such members while actually engaged in air 
operations in or over Cambodia which originate outside 
Cambodia) present in Cambodia at any one time shall not exceed 
two hundred. The United States shall not, at any time, pay in 
whole or in part, directly or indirectly, the compensation or 
allowances of more than eighty-five individuals in Cambodia who 
are citizens of countries other than Cambodia or the United 
States. For purposes of this section, `executive agency of the 
United States Government' means any agency, department, board, 
wholly or partly owned corporation, instrumentality, 
commission, or establishment within the executive branch of the 
United States Government.
    [``Sec. 657. Annual Foreign Assistance Report.--(a) In 
order that the Congress and the American people may be better 
and more currently informed regarding the volume and cost of 
assistance extended by the United States Government to foreign 
countries and international organizations, and in order that 
the Congress and the American people may be better informed 
regarding the sale of arms to foreign countries and 
international organizations by private industry of the United 
States, not later than December 31 of each year the President 
shall transmit to the Congress an annual report, for the fiscal 
year ending prior to the fiscal year in which the report is 
transmitted, showing--
            [``(1) the aggregate dollar value of all foreign 
        assistance provided by the United States Government by 
        any means to all foreign countries and international 
        organizations, and the aggregate dollar value of such 
        assistance by category provided by the United States 
        Government to each such country and organization, 
        during that fiscal year;
            [``(2) the total amounts of foreign currency paid 
        by each foreign country or international organization 
        to the United States Government in such fiscal year, 
        what each payment was made for, whether any portion of 
        such payment was returned by the United States 
        Government to the country or organization from which 
        the payment was obtained or whether any such portion 
        was transferred by the United States Government to 
        another foreign country of international organization, 
        and, if so returned or transferred, the kind of 
        assistance obtained by that country or organization 
        with those foreign currencies and the dollar value of 
        such kind of assistance;
            [``(3) the aggregate dollar value of all arms, 
        ammunitions, and other implements of war, and the 
        aggregate dollar value of each category of such arms, 
        ammunitions, and implements of war, exported under any 
        export license, to all foreign countries and 
        international organizations, and to each such country 
        and organization, during that fiscal year; and
            [``(4) such other matters relating to foreign 
        assistance provided by the United States Government as 
        the President considers appropriate, including 
        explanations of the information required under clauses 
        (1)-(3) of this subsection.
    [``(b) All information contained in any report transmitted 
under this section shall be public information. However, in the 
case of any item of information to be included in any such 
report that the President, on an extraordinary basis, 
determines is clearly detrimental to the security of the United 
States, he shall explain in a supplemental report why 
publication of each specific item would be detrimental to the 
security of the United States. A supplement to any report shall 
be transmitted to the Congress at the same time that the report 
is transmitted.
    [``(c) If the Congress is not in session at the time a 
report or supplement is transmitted to the Congress, the 
Secretary of the Senate and the Clerk of the House of 
Representatives shall accept the report or supplement on behalf 
of their respective Houses of Congress and present the report 
or supplement to the two Houses immediately upon their 
convening.
    [``(d) For purposes of this section--
            [``(1) `foreign assistance' means any tangible or 
        intangible item provided by the United States 
        Government under this or any other law to a foreign 
        country or international organization, including, but 
        not limited to, any training, service, or technical 
        advice, any item of real, personal, or mixed property, 
        any agricultural commodity, United States dollars, and 
        any currencies owned by the United States Government of 
        any foreign country;
            [``(2) `provided by the United States Government' 
        includes, but is not limited to, foreign assistance 
        provided by means of gift, loan, sale, credit sale, or 
        guaranty; and
            [``(3) `value' means value at the time of transfer 
        except that in no case shall any commodity or article 
        of equipment or material be considered to have a value 
        less than one-third of the amount the United States 
        Government paid at the time the commodity or article 
        was acquired by the United States Government.
    [``Sec. 658. Limitation on Use of Funds.--(a) Except as 
otherwise provided in this section, none of the funds 
appropriated to carry out the provisions of this Act or the 
Foreign Military Sales Act shall be obligated or expended until 
the Comptroller General of the United States certifies to the 
Congress that all funds previously appropriated and thereafter 
impounded during the fiscal year 1971 for programs and 
activities administered by or under the direction of the 
Department of Agriculture, the Department of Housing and Urban 
Development, and the Department of Health, Education, and 
Welfare have been released for obligation and expenditure.
    [``(b) The provisions of this section shall not apply--
            [``(1) to funds being withheld in accordance with 
        specific requirements of law; and
            [``(2) to appropriations obligated or expended 
        prior to April 30, 1972.''.
    [(c)(1) Section 644(m) of such Act, relating to 
definitions, is amended by striking out--
    [``(m) `Value' means--''
and inserting in lieu thereof--
    [``(m) `Value' means, other than in section 657 of this 
Act--''.
    [(2) Subsection (a) of section 634 of such Act, relating to 
reports and information, is repealed.
    [(3) The provisions of this subsection and section 657 of 
such Act, as added by subsection (b) of this Act, shall apply 
with respect to each fiscal year commencing on or after July 1, 
1971.

                   [PART IV--MISCELLANEOUS PROVISIONS

    [Sec. 401. The Foreign Military Sales Act is amended as 
follows:
    [(a) In section 31(a) of chapter 3, relating to 
authorization, strike our ``$250,000,000 for each of the fiscal 
years 1970 and 1971'' and insert in lieu thereof ``$400,000,000 
for the fiscal year 1972''.
    [(b) In section 31(b) of chapter 3, relating to aggregate 
ceiling on foregn military sales credits, strike out 
``$340,000,000 for each of the fiscal years 1970 and 1971'' and 
insert in lieu thereof ``$550,000,000 for the fiscal year 1972, 
of which amount not less than $300,000,000 shall be made 
available to Israel only''.
    [(c) In section 33(a) of chapter 3, relating to regional 
ceilings on foreign military sales, strike out ``$75,000,000'' 
and insert in lieu thereof ``$100,000,000''.
    [(d) Subsection (c) of section 33 of chapter 3, relating to 
regional ceilings on foreign military sales, is amended to read 
as follows:
    [``(c) The limitations of this section may not be waived 
pursuant to any authority contained in this or any other Act 
unless the President finds that overriding requirements of the 
national security of the United States justify such a waiver 
and promptly reports such finding to the Congress in writing, 
together with his reasons for such finding. In any case in 
which the limitations of this section are waived under the 
preceding sentence, the report required under such sentence 
shall set forth, in detail, the expenditures proposed to be 
made in excess of the geographical limitation applicable under 
this section. Notwithstanding the foregoing provisions of this 
subsection, in no event shall the aggregate of the total amount 
of military assistance pursuant to the Foreign Assistance Act 
of 1961, of cash sales pursuant to sections 21 and 22, of 
credits, or participations in credits, financed pursuant to 
section 23 (excluding credits covered by guaranties issued 
pursuant to section 24(b)), of the face amount of contracts of 
guaranty issued pursuant to sections 24 (a) and (b), and of 
loans and sales in accordance with section 7307 of title 10, 
United States Code, exceed any geographical ceiling applicable 
under this section by more than an amount equal to 50 per 
centum of such ceiling.''.
    [(e) In section 42(a) of chapter 4, relating to general 
provisions--
            [(1) strike out ``and'' immediately before ``(2)''; 
        and
            [(2) immediately before the period at the end 
        thereof insert the following: ``, and (3) the extent to 
        which such sale might contribute to an arms race, or 
        increase the possibility of outbreak or escalation of 
        conflict, or prejudice the development of bilateral or 
        multilateral arms control arrangements''.
    [(f) Section 42 of chapter 4, relating to general 
provisions, is amended as follows:
    [(1) In Subsection (a), strike out ``but consideration 
shall also be given'' and insert in lieu thereof ``but, subject 
to the provisions of subsection (b) of this section, 
consideration shall also be given''.
    [(2) Redesignated subsections (b) and (c) as subsections 
(c) and (d), respectively, and, immediately after subsection 
(a), insert the following new subsection:
    [``(b) No credit sale shall be extended under section 23, 
and no guarantee shall be issued under section 24, in any case 
involving coproduction or licensed, production outside the 
United States of any defense article of United States origin 
unless the Secretary of State shall, in advance of any such 
transaction, advise the appropriate committees of the Congress 
and furnish the Speaker of the House of Representatives and the 
President of the Senate with full information regarding the 
proposed transaction, including, but not limited to, a 
description of the particular defense article or articles which 
would be produced under a license or coproduced outside the 
United States, the estimated value of such production or 
coproduction, and the probable impact of the proposed 
transaction on employment and production within the United 
States.''.
    [Sec. 402. Section 8 of the Act of January 12, 1971, 
entitled ``An Act to amend the Foreign Military Sales Act, and 
for other purposes'' (84 Stat. 2053), is amended--
            [(1) by striking out the first and second sentences 
        of subsection (a) and inserting in lieu thereof the 
        following: ``Subject to the provisions of subsection 
        (b), the value of any excess defense article granted to 
        a foreign country or international organization by any 
        department, agency, or independent establishment of the 
        United States Government (other than the Agency for 
        International Development) shall be considered to be an 
        expenditure made from funds appropriated under the 
        Foreign Assistance Act of 1961 for military assistance. 
        Unless such department, agency, or establishment 
        certifies to the Comptroller General of the United 
        States that the excess defense article it is ordering 
        is not to be transferred by any means to a foreign 
        country or international organization, when an order is 
        placed for a defense article whose stock status is 
        excess at the time ordered, a sum equal to the value 
        thereof shall (1) be reserved and transferred to a 
        suspense account, (2) remain in the suspense account 
        until the excess defense article is either delivered to 
        a foreign country or international organization or the 
        order therefor is cancelled, and (3) be transferred 
        from the suspense account to (A) the general fund of 
        the Treasury upon delivery of such article, or (B) to 
        the military assistance appropriation for the current 
        fiscal year upon cancellation of the order.'';
            [(2) by striking out, in subsection (b), 
        ``$100,000,000'' and inserting in lieu thereof 
        ``$185,000,000''; and
            [(3) by adding at the end thereof the following new 
        subsection:
    [``(e) Except for excess defense articles granted under 
part II of the Foreign Assistance Act of 1961, the provisions 
of this section shall not apply to any excess defense article 
granted to South Vietnam prior to July 1, 1972.''.
    [Sec. 403. Paragraph (9) of section 5314 of title 5, United 
States Code, relating to level III of the Executive Schedule, 
is amended by inserting before the period at the end thereof 
the following: ``and an Under Secretary of State for 
Coordinating Security Assistance Programs''.
    [Sec. 404. The first section of the Act of June 28, 1935, 
entitled ``An Act to authorize participation by the United 
States in the Interparliamentary Union'' (22 U.S.C. 276), is 
amended as follows:
    [(1) Strike out ``$53,550'' and insert in lieu thereof 
``$102,000''.
    [(2) Strike out ``$26,650'' and insert in lieu thereof 
``$57,000''.
    [(3) Strike out ``$26,900'' and insert in lieu thereof 
``$45,000''.
    [Sec. 405. Section 2 of the joint resolution entitled 
``Joint resolution to authorize participation by the United 
States in parliamentary conferences of the North Atlantic 
Treaty Organization'', approved July 11, 1956 (22 U.S.C. 
1928b), is amended as follows:
    [(1) Strike out ``$30,000'' and insert in lieu thereof 
``$50,000''.
    [(2) Strike out ``$15,000'' each place it appears and 
insert in lieu thereof in each such place ``$25,000''.
    [Sec. 406. Part IV of the Foreign Assistance Act of 1969 is 
amended as follows:
    [(1) Strike out the title of such part and insert in lieu 
thereof the following:

            [``PART IV--THE INTER-AMERICAN FOUNDATION ACT''.

    [(2) The caption of section 401 and subsection (a) of such 
section of that part are amended to read as follows: ``Inter-
American Foundation.--(a) There is created as an agency of the 
United States of America a body corporate to be known as the 
Inter-American Foundation (hereinafter in this section referred 
to as the ``Foundation').''
    [(3) Section 401 of such part is amended by striking out 
``Institute'' wherever it appears and inserting in lieu thereof 
``Foundation''.
    [(4) Section 401(e)(4) of such part is amended to read as 
follows:
            [``(4) shall determine and prescribe the manner in 
        which its obligations shall be incurred and its 
        expenses, including expenses for representation (not to 
        exceed $10,000 in any fiscal year), allowed and 
        paid;''.
    [(5) Section 401(l) is amended to read as follows:
    [``(l)(1) The chief executive officer of the Foundation 
shall be a President who shall be appointed by the Board of 
Directors on such terms as the Board may determine. The 
President shall receive compensation at the rate provided for 
level IV of the Executive Schedule under section 5315 of title 
5, United States Code.
    [``(2) Experts and consultants, or organizations thereof, 
may be employed as authorized by section 3109 of title 5, 
United States Code.''.
    [Sec. 407. (a) It is the purpose of this section to enable 
the Congress generally, and the Committee on Foreign Relations 
of the Senate and the Committee on Foreign Affairs of the House 
of Representatives in particular, to carry out the purposes and 
intent of the Legislative Reorganization Acts of 1946 and 1970, 
with respect to--
            [(1) the analysis, appraisal, and evaluation of the 
        application, administration, and execution of the laws 
        relating to the Department of State and the United 
        States Information Agency and of matters relating to 
        the foreign relations of the United States; and
            [(2) providing periodic authorizations of 
        appropriations for that Department and Agency.
    [(b) Section 15 of the Act entitled ``An Act to provide 
certain basic authority for the Department of State'', approved 
August 1, 1956 (22 U.S.C. 2580) is amended to read as follows:
    [``Sec. 15. (a) Notwithstanding any other provision of law, 
no appropriation shall be made to the Department of State under 
any law for any fiscal year commencing on or after July 1, 
1972, unless previously authorized by legislation hereafter 
enacted by the Congress.
    [``(b) The Department of State shall keep the Committee on 
Foreign Relations of the Senate and the Committee on Foreign 
Affairs of the House of Representatives fully and currently 
informed with respect to all activities and responsibilities 
within the jurisdiction of these committees. Any Federal 
department, agency, or independent establishment shall furnish 
any information requested by either such committee relating to 
any such activity or responsibility.''.
    [(c) The last sentence of section 13 of such Act (22 U.S.C. 
2684) is repealed.
    [(d) Section 701 of the United States Information and 
Educational Exchange Act of 1948 (22 U.S.C. 1476) is amended to 
read as follows:

                  [``prior authorizations by congress

    [``Sec. 701. Notwithstanding any other provision of law, no 
appropriation shall be made to the Secretary of State, or to 
any Government agency authorized to administer the provisions 
of this Act, under any law for any fiscal year commencing on or 
after July 1, 1972, unless previously authorized by legislation 
enacted by the Congress after the date of enactment of the 
Foreign Assistance Act of 1971.''.
    [Sec. 408. Section 7(a) of the Special Foreign Assistance 
Act of 1971 (84 Stat. 1943) is amended by striking out 
``Cambodian military forces'' and inserting in lieu thereof 
``military, paramilitary, police, or other security or 
intelligence forces''.
    [Sec. 409 Section 401(a) of Public Law 89-367, approved 
March 15, 1966 (80 Stat. 37), as amended, is amended--
            [(1) by inserting in the second sentence of 
        paragraph (1), after ``to or for the use of the Armed 
        Forces of the United States'', the following: ``or of 
        any department, agency, or independent establishment of 
        the United States''; and
            [(2) by inserting in the introductory matter 
        preceding clause (A) of paragraph (2) of such section, 
        after ``Armed Forces of the United States'', the 
        following: ``or of any department, agency, or 
        independent establishment of the United States''.
    [Sec. 410. The Congress strongly urges the President to 
undertake such negotiations as may be necessary to implement 
that portion of the recommendations of the Report of the 
President's Commission for the Observance of the Twenty-fifth 
Anniversary of the United Nations (known as the ``Lodge 
Commission'') which proposes that the portion of the regular 
assessed costs to be paid by the United States to the United 
Nations be reduced so that the United States is assessed in 
each year not more than 25 per centum of such costs assessed 
all members of the United Nations for that year.]
                              ----------                              


                 SPECIAL FOREIGN ASSISTANCE ACT OF 1971

AN ACT To provide additional foreign assistance authorizations, and for 
                             other purposes

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, [That this 
Act may be cited as the ``Special Foreign Assistance act of 
1971''.
    [Sec. 2. There are authorized to be appropriated to the 
President for the fiscal year 1971 not to exceed--
            [(1) $85,000,000 for additional military assistance 
        and $70,000,000 for special economic assistance for 
        Cambodia;
            [(2) $100,000,000 for economic and military 
        assistance programs to replace funds which were 
        transferred by the President for use in Cambodia;
            [(3) $150,000,000 for additional military 
        assistance for the Republic of Korea;
            [(4) $30,000,000 for additional military assistance 
        for Jordan;
            [(5) $3,000,000 for additional military assistance 
        for Indonesia and $10,000,000 to replace funds 
        transferred from other programs for use in Indonesia;
            [(6) $5,000,000 for additional military assistance 
        for Lebanon;
            [(7) $65,000,000 for additional supporting 
        assistance for Vietnam; and
            [(8) $17,000,000 for additional general military 
        assistance to compensate for a shortage in anticipated 
        recovery of funds from past years' programs.
    [Sec. 3. The President is authorized until June 30, 1972, 
to transfer to the Republic of Korea such defense articles 
located in Korea and belonging to the Armed Forces of the 
United States on July 1, 1970, as he may determine, except that 
no funds heretofore or hereafter appointed under this Act or 
the Foreign Assistance Act of 1961 shall be available for 
reimbursement to any agency of the United States Government for 
any transfer made pursuant to this section.
    [Sec. 4. Except as otherwise provided in this Act, any 
assistance furnished out of funds appropriated under section 2 
of this Act and any transfer made under section 3 of this Act 
shall be furnished or transferred, as the case may be, in 
accordance with all of the purposes and limitations applicable 
by statute to that type of assistance or transfer under the 
Foreign Assistance Act of 1961 (including the provisions of 
section 652 of such Act, as added by section 8 of this Act).
    [Sec. 5. Section 402 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2242) is amended by adding at the end thereof the 
following new sentence: ``None of the funds authorized by this 
section shall be made available to the Government of Vietnam 
unless, beginning in January 1971, and quarterly thereafter, 
the President of the United States shall determine that the 
accommodation rate of exchange between said Government and the 
United States is fair to both countries.''.
    [Sec. 6. (a) Section 451(a) of the Foreign Assistance Act 
of 1961, relating to the contingency fund, is amended--
            [(1) by striking out ``for the fiscal year 1971 not 
        to exceed $15,000,000'' and inserting in lieu thereof 
        ``for the fiscal year 1971 not to exceed $30,000,000''; 
        and
            [(2) by striking out the period at the end thereof 
        and inserting the following: ``: Provided, That, in 
        addition to any other sums available for such purpose, 
        $15,000,000 of the amount authorized for the fiscal 
        year 1971 may be used only for the purpose of relief, 
        rehabilitation, and reconstruction assistance for the 
        benefit of cyclone, tidal wave, and flood victims in 
        East Pakistan.''.
    [(b) Excess foreign currencies held in Pakistan not 
allocated on the date of enactment of this section are 
authorized to be appropriated for a period of one year from 
such date of enactment to help Pakistan withstand the disaster 
which has occurred.
    [Sec. 7. (a) In line with the expressed intention of the 
President of the United States, none of the funds authorized or 
appropriated pursuant to this or any other Act may be used to 
finance the introduction of United States ground combat troops 
into Cambodia, or to provide United States advisers to or for 
Cambodian military forces in Cambodia.
    [(b) Military and economic assistance provided by the 
United States to Cambodia and authorized or appropriated 
pursuant to this or any other Act shall not be construed as a 
commitment by the United States to Cambodia for its defense.
    [Sec. 8. The Foreign Assistance Act of 1961 is amended by 
adding at the end thereof the following new section:
    [``Sec. 652. Limitation Upon Additional Assistance to 
Cambodia.--The President shall not exercise any special 
authority granted to him under sections 506(a), 610(a), and 
614(a) of this Act for the purpose of providing additional 
assistance to Cambodia, unless the President, at least thirty 
days prior to the date he intends to exercise any such 
authority on behalf of Cambodia (or ten days prior to such date 
if the President certifies in writing that an emergency exists 
requiring immediate assistance to Cambodia), notifies the 
Speaker of the House of Representatives and the Committee on 
Foreign Relations of the Senate in writing of each such 
intended exercise, the section of this Act under which such 
authority is to be exercised, and the justification for, and 
the extent of, the exercise of such authority.''.]
                              ----------                              


                     FOREIGN ASSISTANCE ACT OF 1969

AN ACT To promote the foreign policy, security, and general welfare of 
the United States by assisting peoples of the world to achieve economic 
  development within a framework of democratic economic, social, and 
             political institutions, and for other purposes

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act may be cited as the ``Foreign Assistance Act of 1969''.

                      [PART I--ECONOMIC ASSISTANCE

                         [development loan fund

    [Sec. 101. (a) Section 202(a) of the Foreign Assistance Act 
of 1961, relating to authorization, is amended--
            [(1) by striking out ``and'' after ``fiscal year 
        1968,'';
            [(2) by inserting after ``fiscal year 1969,'' the 
        following: ``$350,000,000 for the fiscal year 1970, and 
        $350,000,000 for the fiscal year 1971,''; and
            [(3) by striking out ``the fiscal year ending June 
        30, 1969'' in the second proviso and inserting in lieu 
        thereof ``each of the fiscal years ending June 30, 
        1970, and June 30, 1971''.
    [(b) Section 203 of such Act, relating to fiscal 
provisions, is amended to read as follows:
    [``Sec. 203. Fiscal Provisions.--Dollar receipts from loans 
made pursuant to this part and from loans made under the Mutual 
Security Act of 1954, as amended, are authorized to be made 
available for the fiscal year 1970 and for the fiscal year 1971 
for use for the purposes of this title, for loans under title 
VI, and for the purpose of section 232. Such receipts and other 
funds made available under this section shall remain available 
until expended.''

             [technical cooperation and development grants

    [Sec. 102. Section 212 of such Act, relating to 
authorization, is amended by striking out ``$200,000,000 for 
the fiscal year 1969'' and inserting in lieu thereof 
``$183,500,000 for the fiscal year 1970, and $183,500,000 for 
the fiscal year 1971''.

                 [american schools and hospitals abroad

    [Sec. 103. Section 214 of such Act, relating to American 
schools and hospitals abroad, is amended--
            [(1) by striking out of subsection (c) ``fiscal 
        year 1969, $14,600,000, to remain available until 
        expended.'' and inserting in lieu thereof ``fiscal year 
        1970, $25,900,000, and for the fiscal year 1971, 
        $12,900,000, which amounts are authorized to remain 
        available until expended. Amounts appropriated under 
        this subsection for the fiscal year 1970 shall be 
        available for expenditure solely in accordance with the 
        allocations set forth on pages 25 and 26 of House 
        Report No. 91-611 and on page 23 of Senate Report No. 
        91-603.'';
            [(2) by striking out of subsection (d) ``fiscal 
        year 1969, $5,100,000'' and inserting in lieu thereof 
        ``fiscal year 1970, $3,000,000''; and
            [(3) by adding at the end of subsection (d) the 
        following new sentence: ``Foreign currencies 
        appropriated under this subsection shall be available 
        for expenditure solely in accordance with the 
        allocation set forth on page 23 of Senate Report No. 
        91-603.''.

    [prototype desalting plant; programs for peaceful communication

    [Sec. 104. Title II of chapter 2 of part I, relating to 
technical cooperation and development grants, is amended by 
adding at the end thereof the following new sections:
    [``Sec. 219. Prototype Desalting Plant.--(a) In furtherance 
of the purposes of this part and for the purpose of improving 
existing, and developing and advancing new, technology and 
experience in the design, construction, and operation of large-
scale desalting plants of advanced concepts which will 
contribute materially to low-cost desalination in all 
countries, including the United States, the President, if he 
determines it to be feasible, is authorized to participate in 
the development of a large-scale water treatment and desalting 
prototype plant and necessary appurtenances to be constructed 
in Israel as an integral part of a dual-purpose power 
generating and desalting project. Such participation shall 
include financial, technical, and such other assistance as the 
President deems appropriate to provide for the study, design, 
construction, and, for a limited demonstration period of not to 
exceed five years, operation and maintenance of the water 
treatment and desalting facilities of the dual-purpose project.
    [``(b) Any agreement entered into under subsection (a) of 
this section shall include such terms and conditions as the 
President deems appropriate to insure, among other things, that 
all information, products, uses, processes, patents, and other 
developments obtained or utilized in the development of this 
prototype plant will be available without further cost to the 
United States for the use and benefit of the United States 
throughout the world, and to insure that the United States, its 
officers, and employees have a permanent right to review data 
and have access to such plant for the purpose of observing its 
operations and improving science and technology in the field of 
desalination.
    [``(c) In carrying out the provisions of this section, the 
President may enter into contracts with public or private 
agencies and with any person without regard to sections 3648 
and 3709 of the Revised Statutes of the United States (31 
U.S.C. 529 and 41 U.S.C. 5).
    [``(d) Nothing in this section shall be construed as 
intending to deprive the owner of any background patent or any 
right which such owner may have under that patent.
    [``(e) In carrying out the provisions of this section, the 
President may utilize the personnel, services, and facilities 
of any Federal agency.
    [``(f) The United States costs, other than its 
administrative costs, for the study, design, construction, and 
operation of a prototype plant under this section shall not 
exceed either 50 per centum of the total capital costs of the 
facilities associated with the production of water, and 50 per 
centum of the operation and maintenance costs for the 
demonstration period, or $20,000,000, whichever is less. There 
are authorized to be appropriated, subject to the limitations 
of this subsection, such sums as may be necessary to carry out 
the provisions of this section, including administrative costs 
thereof. Such sums are authorized to remain available until 
expended.
    [``(g) No funds appropriated for the Office of Saline Water 
pursuant to the appropriation authorized by the Act of July 11, 
1969 (83 Stat. 45, Public Law 91-43), or prior authorization 
Acts, shall be used to carry out the purposes of this section.
    [``Sec. 220. Programs for Peaceful Communication.--(a) The 
President is authorized to use funds made available under 
section 212 to carry out programs of peaceful communications 
which make use of television and related technologies, 
including satellite transmissions, for educational, health, 
agricultural, and community development purposes in the less 
developed countries.
    [``(b) In carrying out programs in the fields of education, 
health, agriculture, and community development, the agency 
primarily responsible for part I shall, to the extent possible, 
assist the developing countries with research, training, 
planning assistance, and project support in the use of 
television and related technologies, including satellite 
transmissions. The agency shall make maximum use of existing 
satellite capabilities, including the facilities of the 
International Telecommunications Satellite Consortium.
    [``(c) In implementing activities under this section, the 
agency primarily responsible for part I shall coordinate 
closely with Federal, State, and local agencies and with 
nongovernmental educational, health, and agricultural 
institutions and associations within the United States.''

      [housing guaranties; overseas private investment corporation

    [Sec. 105. Chapter 2 of part I of such Act, relating to 
development assistance, is amended by striking out title III 
and title IV and inserting in lieu thereof the following new 
titles:

                    [``Title III--Housing Guaranties

    [``Sec. 221. Worldwide Housing Guaranties.--In order to 
facilitate and increase the participation of private enterprise 
in furthering the development of the economic resources and 
productive capacities of less developed friendly countries and 
areas, and promote the development of thrift and credit 
institutions engaged in programs of mobilizing local savings 
for financing the construction of self-liquidating housing 
projects and related community facilities, the President is 
authorized to issue guaranties, on such terms and conditions as 
he shall determine, to eligible investors as defined in section 
238(c), assuring against loss of loan investments for self-
liquidating housing projects. The total face amount of 
guaranties issued hereunder, outstanding at any one time, shall 
not exceed $130,000,000. Such guaranties shall be issued under 
the conditions set forth in section 222(b) and section 223.
    [``Sec. 222. Housing Projects in Latin American 
Countries.--(a) The President shall assist in the development 
in the American Republics of self-liquidating housing projects, 
the development of institutions engaged in Alliance for 
Progress programs, including cooperatives, free labor unions, 
savings and loan type institutions, and other private 
enterprise programs in Latin America engaged directly or 
indirectly in the financing of home mortgages, the construction 
of homes for lower income persons and families, the increased 
mobilization of savings and improvement of housing conditions 
in Latin America.
    [``(b) To carry out the purposes of subsection (a), the 
President is authorized to issue guaranties, on such terms and 
conditions as he shall determine, to eligible investors, as 
defined in section 238(c), assuring against loss of loan 
investment made by such investors in--
            [``(1) private housing projects in Latin America of 
        types similar to those insured by the Department of 
        Housing and Urban Development and suitable for 
        conditions in Latin America;
            [``(2) credit institutions in Latin America engaged 
        directly or indirectly in the financing of home 
        mortgages, such as savings and loan institutions and 
        other qualified investment enterprises;
            [``(3) housing projects in Latin America for lower 
        income families and persons, which projects shall be 
        constructed in accordance with maximum unit costs 
        established by the President for families and persons 
        whose incomes meet the limitations prescribed by the 
        President;
            [``(4) housing projects in Latin America which will 
        promote the development of institutions important to 
        the success of the Alliance for Progress, such as free 
        labor unions, cooperatives, and other private 
        enterprise programs; or
            [``(5) housing projects in Latin America, 25 per 
        centum or more of the aggregate of the mortgage 
        financing for which is made available from sources 
        within Latin America and is not derived from sources 
        outside Latin America, which projects shall, to the 
        maximum extent practicable, have a unit cost of not 
        more than $8,500.
    [``(c) The total face amount of guaranties issued hereunder 
or heretofore under Latin American housing guaranty authority 
repealed by the foreign Assistance Act of 1969, outstanding at 
any one time, shall not exceed $550,000,000: Provided, That 
$325,000,000 of such guaranties may be used only for the 
purposes of subsection (b) (1).
    [``Sec. 223. General Provisions.--(a) A fee shall be 
charged for each guaranty issued under section 221 or section 
222 in an amount to be determined by the President. In the 
event the fee to be charged for such type of guaranty is 
reduced, fees to be paid under existing contracts for the same 
type of guaranty may be similarly reduced.
    [``(b) The amount of $50,000,000 of fees accumulated under 
prior investment guaranty provisions repealed by the Foreign 
Assistance Act of 1969, together with all fees collected in 
connection with guaranties issued hereunder, shall be available 
for meeting necessary administrative and operating expenses of 
carrying out the provisions of this title and of prior housing 
guaranty provisions repealed by the Foreign Assistance Act of 
1969 (including, but not limited to expenses pertaining to 
personnel, supplies, and printing), subject to such limitations 
as may be imposed in annual appropriation Acts; for meeting 
management and custodial costs incurred with respect to 
currencies or other assets acquired under guaranties made 
pursuant to section 221 or section 222 or heretofore pursuant 
to prior Latin American and other housing guaranty authorities 
repealed by the Foreign Assistance Act of 1969; and to pay the 
cost of investigating and adjusting (including costs of 
arbitration) claims under such guaranties; and shall be 
available for expenditure in discharge of liabilities under 
such guaranties until such time as all such property has been 
disposed of and all such liabilities have been discharged or 
have expired, or until all such fees have been expended in 
accordance with the provisions of this subsection.
    [``(c) Any payments made to discharge liabilities under 
guaranties issued under section 221 or section 222 or 
heretofore under prior Latin American or other housing guaranty 
authorities repealed by the Foreign Assistance Act of 1969, 
shall be paid first out of fees referred to in subsection (b) 
(excluding amounts required for purposes other than the 
discharge of liabilities under guaranties) as long as such fees 
are available, and thereafter shall be paid out of funds, if 
any, realized from the sale of currencies or other assets 
acquired in connection with any payment made to discharge 
liabilities under such guaranties as long as funds are 
available, and finally out of funds hereafter made available 
pursuant to subsection (e).
    [``(d) All guaranties issued under section 221 or section 
222 or heretofore under prior Latin American or other housing 
guaranty authority repealed by the Foreign Assistance Act of 
1969 shall constitute obligations, in accordance with the terms 
of such guaranties, of the United States of America and the 
full faith and credit of the United States of America is hereby 
pledged for the full payment and performance of such 
obligations.
    [``(e) There is hereby authorized to be appropriated to the 
President such amounts, to remain available until expended, as 
may be necessary from time to time to carry out the purposes of 
this title.
    [``(f) In the case of any loan investment guaranteed under 
section 221 or section 222, the agency primarily responsible 
for administering part I shall prescribe the maximum rate of 
interest allowable to the eligible investor, which maximum rate 
shall not be less than one-half of 1 per centum above the then 
current rate of interest applicable to housing mortgages 
insured by the Department of Housing and Urban Development. In 
no event shall the agency prescribe a maximum allowable rate of 
interest which exceeds by more than 1 per centum the then 
current rate of interest applicable to housing mortgages 
insured by such Department. The maximum allowable rate of 
interest under this subsection shall be prescribed by the 
agency as of the date the project covered by the investment is 
officially authorized and, prior to the execution of the 
contract, the agency may amend such rate at its discretion, 
consistent with the provisions of subsection (f).
    [``(g) Housing guaranties committed, authorized, or 
outstanding under prior housing guaranty authorities repealed 
by the Foreign Assistance Act of 1969 shall continue subject to 
provisions of law originally applicable thereto and fees 
collected hereafter with respect to such guaranties shall be 
available for the purposes specified in subsection (b).
    [``(h) No payment may be made under any guaranty issued 
pursuant to this title for any loss arising out of fraud or 
misrepresentation for which the party seeking payment is 
responsible.
    [``(i) The authority of section 221 and section 222 shall 
continue until June 30, 1972.

          [``Title IV--Overseas Private Investment Corporation

    [``Sec. 231. Creation, Purpose, and Policy.--To mobilize 
and facilitate the participation of United States private 
capital and skills in the economic and social progress of less 
developed friendly countries and areas, thereby complementing 
the development assistance objectives of the United States, 
there is hereby created the Overseas Private Investment 
Corporation (hereinafter called the `Corporation'), which shall 
be an agency of the United States under the policy guidance of 
the Secretary of State.
    [``In carrying out its purpose, the Corporation, utilizing 
broad criteria, shall undertake--
            [``(a) to conduct its financing operations on a 
        self-sustaining basis, taking into account the economic 
        and financial soundness of projects and the 
        availability of financing from other sources on 
        appropriate terms;
            [``(b) to utilize private credit and investment 
        institutions and the Corporation's guaranty authority 
        as the principal means of mobilizing capital investment 
        funds;
            [``(c) to broaden private participation and revolve 
        its funds through selling its direct investments to 
        private investors whenever it can appropriately do so 
        on satisfactory terms;
            [``(d) to conduct its insurance operations with due 
        regard to principles of risk management including, when 
        appropriate, efforts to share its insurance risks;
            [``(e) to utilize, to the maximum practicable 
        extent consistent with the accomplishment of its 
        purpose, the resources and skills of small business and 
        to provide facilities to encourage its full 
        participation in the programs of the Corporation;
            [``(f) to encourage and support only those private 
        investments in less developed friendly countries and 
        areas which are sensitive and responsive to the special 
        needs and requirements of their economies, and which 
        contribute to the social and economic development of 
        their people;
            [``(g) to consider in the conduct of its operations 
        the extent to which less developed country governments 
        are receptive to private enterprise, domestic and 
        foreign, and their willingness and ability to maintain 
        conditions which enable private enterprise to make its 
        full contribution to the development process;
            [``(h) to foster private initiative and competition 
        and discourage monopolistic practices;
            [``(i) to further to the greatest degree possible, 
        in a manner consistent with its goals, the balance-of-
        payments objectives of the United States;
            [``(j) to conduct its activities in consonance with 
        the activities of the agency primarily responsible for 
        administering part I and the international trade, 
        investment, and financial policies of the United States 
        Government; and
            [``(k) to advise and assist, within its field of 
        competence, interested agencies of the United States 
        and other organizations, both public and private, 
        national and international, with respect to projects 
        and programs relating to the development of private 
        enterprise in less developed countries and areas.
    [``Sec. 232. Capital of the Corporation.--The President is 
authorized to pay in as capital of the Corporation, out of 
dollar receipts made available through the appropriation 
process from loans made pursuant to this part and from loans 
made under the Mutual Security Act of 1954, as amended, for the 
fiscal year 1970 not to exceed $20,000,000 and for the fiscal 
year 1971 not to exceed $20,000,000. Upon the payment of such 
capital by the President, the Corporation shall issue an 
equivalent amount of capital stock to the Secretary of the 
Treasury.
    [``Sec. 233. Organization and Management.--(a) Structure of 
the Corporation.--The Corporation shall have a Board of 
Directors, a President, an Executive Vice President, and such 
other officers and staff as the Board of Directors may 
determine.
    [``(b) Board of Directors.--All powers of the Corporation 
shall vest in and be exercised by or under the authority of its 
Board of Directors (`the Board') which shall consist of eleven 
Directors, including the Chairman, with six Directors 
constituting a quorum for the transaction of business. The 
Administrator of the Agency for International Development shall 
be the Chairman of the Board, ex officio. Six Directors (other 
than the President of the Corporation, appointed pursuant to 
subsection (c) who shall also serve as a Director) shall be 
appointed by the President of the United States, by and with 
the advice and consent of the Senate, and shall not be 
officials or employees of the Government of the United States. 
At least one of the six Directors appointed under the preceding 
sentence shall be experienced in small business, one in 
organized labor, and one in cooperatives. Each such Director 
shall be appointed for a term of no more than three years. The 
terms of no more than two such Directors shall expire in any 
one year. Such Directors shall serve until their successors are 
appointed and qualified and may be reappointed.
    [``The other Directors shall be officials of the Government 
of the United States, designated by and serving at the pleasure 
of the President of the United States.
    [``All Directors who are not officers of the Corporation or 
officials of the Government of the United States shall be 
compensated at a rate equivalent to that of level IV of the 
Executive Schedule (5 U.S.C. 5315) when actually engaged in the 
business of the Corporation and may be paid per diem in lieu of 
subsistence at the applicable rate prescribed in the 
standardized Government travel regulations, as amended from 
time to time, while away from their homes or usual places of 
business.
    [``(c) President of the Corporation.--The President of the 
Corporation shall be appointed by the President of the United 
States, by and with the advice and consent of the Senate, and 
shall serve at the pleasure of the President. In making such 
appointment, the President shall take into account private 
business experience of the appointee. The President of the 
Corporation shall be its Chief Executive Officer and 
responsible for the operations and management of the 
Corporation subject to bylaws and policies established by the 
Board.
    [``(d) Officers and Staff.--The Executive Vice President of 
the Corporation shall be appointed by the President of the 
United States, and by and with the advice and consent of the 
Senate, and shall serve at the pleasure of the President. Other 
officers, attorneys, employees, and agents shall be selected 
and appointed by the Corporation, and shall be vested with such 
powers and duties as the Corporation may determine. Of such 
persons employed by the Corporation, not to exceed twenty may 
be appointed, compensated, or removed without regard to the 
civil service laws and regulations: Provided, That under such 
regulations as the President of the United States may 
prescribe, officers and employees of the United States 
Government who are appointed to any of the above positions may 
be entitled, upon removal from such position, except for cause, 
to reinstatement to the position occupied at the time of 
appointment or to a position of comparable grade and salary. 
Such positions shall be in addition to those otherwise 
authorized by law, including those authorized by section 5108 
of title 5 of the United States Code.
    [``Sec. 234. Investment Incentive Programs.--The 
Corporation is hereby authorized to do the following:
    [``(a) Investment Insurance.--(1) To issue insurance, upon 
such terms and conditions as the Corporation may determine, to 
eligible investors assuring protection in whole or in part 
against any or all of the following risks with respect to 
projects which the Corporation has approved--
            [``(A) inability to convert into United States 
        dollars other currencies, or credits in such 
        currencies, received as earnings or profits from the 
        approved project, as repayment or return of the 
        investment therein, in whole or in part, or as 
        compensation for the sale or disposition of all or any 
        part thereof;
            [``(B) loss of investment, in while or in part, in 
        the approved project due to expropriation or 
        confiscation by action of a foreign government; and
            [``(C) loss due to war, revolution, or 
        insurrection.
    [``(2) Recognizing that major private investments in less 
developed friendly countries or areas are often made by 
enterprises in which there in multinational participation, 
including significant United States private participation, the 
Corporation may make such arrangements with foreign governments 
(including agencies, instrumentalities, or political 
subdivisions thereof) or with multilateral organizations for 
sharing liabilities assumed under investment insurance for such 
investments and may in connection therewith issue insurance to 
investors not otherwise eligible hereunder: Provided, however, 
That liabilities assumed by the Corporation under the authority 
of this subsection shall be consistent with the purposes of 
this title and that the maximum share of liabilities so assumed 
shall not exceed the proportionate participation by eligible 
investors in the total project financing.
    [``(3) Not more than 100 per centum of the total face 
amount of investment insurance which the Corporation is 
authorized to issue under this subsection shall be issued to a 
single investor.
    [``(b) Investment Guaranties.--To issue to eligible 
investors guaranties of loans and other investments made by 
such investors assuring against loss due to such risks and upon 
such terms and conditions as the Corporation may determine: 
Provided, however, That such guaranties on other than loan 
investments shall not exceed 75 per centum of such investment: 
Provided further, That except for loan investments for credit 
unions made by eligible credit unions or credit union 
associations, the aggregate amount of investment (exclusive of 
interest and earnings) so guaranteed with respect to any 
project shall not exceed, at the time of issuance of any such 
guaranty, 75 per centum of the total investment committed to 
any such project as determined by the Corporation, which 
determination shall be conclusive for purposes of the 
Corporation's authority to issue any such guaranty: Provided 
further, That not more than 10 per centum of the total face 
amount of investment guaranties which the Corporation is 
authorized to issue under this subsection shall be issued to a 
single investor.
    [``(c) Direct Investment.--To make loans in United States 
dollars repayable in dollars or loans in foreign currencies 
(including, without regard to section 1415 of the Supplemental 
Appropriation Act, 1953, such foreign currencies which the 
Secretary of the Treasury may determine to be excess to the 
normal requirements of the United States and the Director of 
the Bureau of the Budget may allocate) to firms privately owned 
or of mixed private and public ownership upon such terms and 
conditions as the Corporation may determine. The Corporation 
may not purchase or invest in any stock in any other 
corporation, except that it may (1) accept as evidence of 
indebtedness debt securities convertible to stock, but such 
debt securities shall not be converted to stock while held by 
the Corporation, and (2) acquire stock through the enforcement 
of any lien or pledge or otherwise to satisfy a previously 
contracted indebtedness which would otherwise be in default, or 
as the result of any payment under any contract of insurance or 
guaranty. The Corporation shall dispose of any stock it may so 
acquire as soon as reasonably feasible under the circumstances 
then pertaining.
    [``No loans shall be made under this section to finance 
operations for mining or other extraction of any deposit of 
ore, oil, gas, or other mineral.
    [``(d) Investment Encouragement.--To initiate and support 
through financial participation, incentive grant, or otherwise, 
and on such terms and conditions as the Corporation may 
determine, the identification, assessment, surveying and 
promotion of private investment opportunities, utilizing 
wherever feasible and effective the facilities of private 
organizations or private investors: Provided, however, That the 
Corporation shall not finance surveys to ascertain the 
existence, location, extent or quality, or to determine the 
feasibility of undertaking operations for mining or other 
extraction, of any deposit of ore, oil, gas, or other mineral. 
In carrying out this authority, the Corporation shall 
coordinate with such investment promotion activities as are 
carried out by the Department of Commerce.
    [``(e) Special Activities.--To administer and manage 
special projects and programs, including programs of financial 
and advisory support which provide private technical, 
professional, or managerial assistance in the development of 
human resources, skills, technology, capital savings and 
intermediate financial and investment institutions and 
cooperatives. The funds for these projects and programs may, 
with the Corporation's concurrence, be transferred to it for 
such purposes under the authority of section 632(a) or from 
other sources, public or private.
    [``Sec. 235. Issuing Authority, Director Investment Fund 
and Reserves.--(a)(1) The maximum contingent liability 
outstanding at any one time pursuant to insurance issued under 
section 234(a) shall not exceed $7,500,000,000.
    [``(2) The maximum contingent liability outstanding at any 
one time pursuant to guaranties issued under section 234(b) 
shall not exceed in the aggregate $750,000,000, of which 
guaranties of credit union investment shall not exceed 
$1,250,000: Provided, That the Corporation shall not make any 
commitment to issue any guaranty which would result in a 
fractional reserve less than 25 per centum of the maximum 
contingent liability then outstanding against guaranties issued 
or commitments made pursuant to section 234(b) or similar 
predecessor guaranty authority.
    [``(3) The Congress, in considering the budget programs 
transmitted by the President for the Corporation, pursuant to 
section 104 of the Government Corporation Control Act, as 
amended, may limit the obligations and contingent liabilities 
to be undertaken under section 234 (a) and (b) as well as the 
use of funds for operating and administrative expenses.
    [``(4) The authority of section 234 (a) and (b) shall 
continue until June 30, 1974.
    [``(b) There shall be established a revolving fund, known 
as the Direct Investment Fund, to be held by the Corporation. 
Such fund shall consist initially of amounts made available 
under section 232, shall be available for the purposes 
authorized under section 234(c), shall be charged with realized 
losses and credited with realized gains and shall be credited 
with such additional sums as may be transferred to it under the 
provisions of section 236.
    [``(c) There shall be established in the Treasury of the 
United States an insurance and guaranty fund, which shall have 
separate accounts to be known as the Insurance Reserve and the 
Guaranty Reserve, which reserves shall be available for 
discharge of liabilities, as provided in section 235(d), until 
such time as all such liabilities have been discharged or have 
expired or until all such reserves have been expended in 
accordance with the provisions of this section. Such fund shall 
be funded by: (1) the funds heretofore available to discharge 
liabilities under predecessor guaranty authority (including 
housing guaranty authorities), less both the amount made 
available for housing guaranty programs pursuant to section 
223(b) and the amount made available to the Corporation 
pursuant to section 234(e); and (2) such sums as shall be 
appropriated pursuant to section reserve shall be determined by 
the Board after consultation with the Secretary of the 
Treasury. Additional amounts may thereafter be transferred to 
such reserves pursuant to section 236.
    [``(d) Any payments made to discharge liabilities under 
investment insurance issued under section 234(a) or under 
similar predecessor guaranty authority shall be paid first out 
of the Insurance Reserve, as long as such reserve remains 
available, and thereafter out of funds made available pursuant 
to section 235(f). Any payments made to discharge liabilities 
under guaranties issued under section 234(b) or under similar 
predecessor guaranty authority shall be paid firs tout of the 
Guaranty Reserve as long as such reserve remains available, and 
thereafter out of funds made available pursuant to section 
235(f).
    [``(e) There is hereby authorized to be transferred to the 
Corporation at its call, for the purposes specified in section 
236, all fees and other revenues collected under predecessor 
guaranty authority from December 31, 1968, available as of the 
date of such transfer.
    [``(f) There is hereby authorized to be appropriated to the 
Corporation, to remain available until expended, such amounts 
as may be necessary from time to time to replenish or increase 
the insurance and guaranty fund or to discharge the liabilities 
under insurance and guaranties issued by the Corporation or 
issued under predecessor guaranty authority.
    [``Sec. 236. Income and Revenues.--In order to carry out 
the purposes of the Corporation, all revenues and income 
transferred to or earned by the Corporation, from whatever 
source derived, shall be held by the Corporation and shall be 
available to carry out its purposes, including without 
limitation--
            [``(a) payment of all expenses of the Corporation, 
        including investment promotion expenses;
            [``(b) transfers and additions to the insurance or 
        guaranty reserves, the Direct Investment Fund 
        established pursuant to section 235, and such other 
        funds or reserves as the Corporation may establish, at 
        such time and in such amounts as the Board may 
        determine; and
            [``(c) payment of dividends, on capital stock, 
        which shall consist of and be paid from net earnings of 
        the Corporation after payments, transfers, and 
        additions under subsections (a) and (b) hereof.
    [``Sec. 237. General Provisions Relating to Insurance and 
Guaranty Program.--(a) Insurance and guaranties issued under 
this title shall cover investment made in connection with 
projects in any less developed friendly country or area with 
the government of which the President of the United States has 
agreed to institute a program for insurance or guaranties.
    [``(b) The Corporation shall determine that suitable 
arrangements exist for protecting the interest of the 
Corporation in connection with any insurance or guaranty issued 
under this title, including arrangements concerning ownership, 
use, and disposition of the currency, credits, assets, or 
investments on account of which payment under such insurance or 
guaranty is to be made, and any right, title, claim, or cause 
of action existing in connection therewith.
    [``(c) All guaranties issued prior to July 1, 1956, all 
guaranties issued under sections 202(b) and 413(b) of the 
Mutual Security Act of 1954, as amended, all guaranties 
heretofore issued pursuant to prior guaranty authorities 
repealed by the Foreign Assistance Act of 1969, and all 
insurance and guaranties issued pursuant to this title shall 
constitute obligations, in accordance with the terms of such 
insurance or guaranties, of the United States of America and 
the full faith and credit of the United States of America is 
hereby pledged for the full payment and performance of such 
obligations.
    [``(d) Fees shall be charged for insurance and guaranty 
coverage in amounts to be determined by the Corporation. In the 
event fees to be charged for investment insurance or guaranties 
are reduced, fees to be paid under existing contracts for the 
same type of guaranties or insurance and for similar guaranties 
issued under predecessor guaranty authority may be reduced.
    [``(e) No insurance or guaranty of any equity investment 
shall extend beyond twenty years from the date of issuance.
    [``(f) No insurance or guaranty issued under this title 
shall exceed the dollar value, as of the date of the 
investment, of the investment made in the project with the 
approval of the Corporation plus interest, earnings or profits 
actually accrued on said investment to the extent provided by 
such insurance or guaranty.
    [``(g) No payment may be made under any guaranty issued 
pursuant to this title for any loss arising out of fraud or 
misrepresentation for which the party seeking payment is 
responsible.
    [``(h) Insurance or guaranties of a loan or equity 
investment of an eligible investor in a foreign bank, finance 
company, or other credit institution shall extend only to such 
loan or equity investment and not to any individual loan or 
equity investment made by such foreign bank, finance company, 
or other credit institution.
    [``(i) Claims arising as a result of insurance or guaranty 
operations under this title or under predecessor guaranty 
authority may be settled, and disputes arising as a result 
thereof may be arbitrated with the consent of the parties, on 
such terms and conditions as the Corporation may determine. 
Payment made pursuant to any such settlement, or as a result of 
an arbitration award, shall be final and conclusive 
notwithstanding any other provision of law.
    [``(j) Each guaranty contract executed by such officer or 
officers as may be designated by the Board shall be 
conclusively presumed to be issued in compliance with the 
requirements of this Act.
    [``(k) In making a determination to issue insurance or a 
guaranty under this title, the Corporation shall consider the 
possible adverse effect of the dollar investment under such 
insurance or guaranty upon the balance of payments of the 
United States.
    ``[Sec. 238. Definitions.--As used in this title--
            [``(a) the term `investment' includes any 
        contribution of funds, commodities, services, patents, 
        processes, or techniques, in the form of (1) a loan or 
        loans to an approved project, (2) the purchase of a 
        share of ownership in any such project, (3) 
        participation in royalties, earnings or profits of any 
        such project, and (4) the furnishing of commodities or 
        services pursuant to a lease or other contract;
            [``(b) the term `expropriation' includes, but is 
        not limited to, any abrogation, repudiation, or 
        impairment by a foreign government of its own contract 
        with an investor with respect to a project, where such 
        abrogation, repudiation, or impairment is not caused by 
        the investor's own fault or misconduct, and materially 
        adversely affects the continued operation of the 
        project;
            [``(c) the term `eligible investor' means: (1) 
        United States citizens; (2) corporations, partnerships, 
        or other associations including nonprofit associations, 
        created under the laws of the United States or any 
        State or territory thereof and substantially 
        beneficially owned by United States citizens; and (3) 
        foreign corporations, partnerships, of other 
        associations wholly owned by one or more such United 
        States citizens, corporations, partnerships, or other 
        associations; Provided, however, That the eligibility 
        of such foreign corporation shall be determined without 
        regard to any shares, in aggregate less than 5 per 
        centum of the total of issued and subscribed share 
        capital, required by law to be held by other than the 
        United States owners: Provided further, That in the 
        case of any loan investment a final determination of 
        eligibility may be made at the time the insurance or 
        guaranty is issued; in all other cases, the investor 
        must be eligible at the time a claim arises as well as 
        at the time the insurance or guaranty is issued; and
            [``(d) the term `predecessor guaranty authority' 
        means prior guaranty authorities (other than housing 
        guaranty authorities) repealed by the Foreign 
        Assistance Act of 1969, sections 202(b) and 413(b) of 
        the Mutual Security Act of 1954, as amended, and 
        section 111(b)(3) of the Economic Cooperation Act of 
        1948, as amended (exclusive of authority relating to 
        informational media guaranties).
    [``Sec. 239. General Provisions and Powers.--(a) The 
Corporation shall have its principal office in the District of 
Columbia and shall be deemed, for purposes of venue in civil 
actions, to be a resident thereof.
    [``(b) The President shall transfer to the Corporation, at 
such time as he may determined, all obligations, assets and 
related rights and responsibilities arising out of, or related 
to, predecessor programs and authorities similar to those 
provided for in section 234(a), (b), and (d). Until such 
transfer, the agency heretofore responsible for such 
predecessor programs shall continue to administer such assets 
and obligations, and such programs and activities authorized 
under this title as may be determined by the President.
    [``(c) The Corporation shall be subject to the applicable 
provisions of the Government Corporation Control Act, except as 
otherwise provided in this title.
    [``(d) To carry out the purposes of this title, the 
Corporation is authorized to adopt and use a corporate seal, 
which shall be judicially noticed; to sue and be sued in its 
corporate name; to adopt, amend, and repeal bylaws governing 
the conduct of its business and the performance of the powers 
and duties granted to or imposed upon it by law; to acquire, 
hold or dispose of, upon such terms and conditions as the 
Corporation may determine, any property, real, personal, or 
mixed, tangible or intangible, or any interest therein; to 
invest funds derived from fees and other revenues in 
obligations of the United States and to use the proceeds 
therefrom, including earnings and profits, as it shall deem 
appropriate; to indemnify directors, officers, employees and 
agents of the Corporation for liabilities and expenses incurred 
in connection with their Corporation activities; to require 
bonds of officers, employees, and agents and pay the premiums 
therefor; notwithstanding any other provision of law, to 
represent itself or to contract for representation in all legal 
and arbitral proceedings; to purchase, discount, rediscount, 
sell, and negotiate, with or without its endorsement or 
guaranty, and guarantee notes, participation certificates, and 
other evidence of indebtedness (provided that the Corporation 
shall not issue its own securities, except participation 
certificates for the purpose of carrying out section 231(c)); 
to make and carry out such contracts and agreements as are 
necessary and advisable in the conduct of its business; to 
exercise the priority of the Government of the United States in 
collecting debts from bankrupt, insolvent, or decedents' 
estates; to determine the character of and the necessity for 
its obligations and expenditures, and the manner in which they 
shall be incurred, allowed, and paid, subject to provisions of 
law specifically applicable to Government corporations; and to 
take such actions as may be necessary or appropriate to carry 
out the powers herein or hereafter specifically conferred upon 
it.
    [``(e) The Auditor-General of the Agency for International 
Development (1) shall have the responsibility for planning and 
directing the execution of audits, reviews, investigations, and 
inspections of all phases of the Corporation's operations and 
activities and (2) shall conduct all security activities of the 
Corporation relating to personnel and the control of classified 
material. With respect to his responsibilities under this 
subsection, the Auditor-General shall report to the Board. The 
agency primarily responsible for administering part I shall be 
reimbursed by the Corporation for all expenses incurred by the 
Auditor-General in connection with his responsibilities under 
this subsection.
    [``(f) In order to further the purposes of the Corporation 
there shall be established an Advisory Council to be composed 
of such representatives of the American business community as 
may be selected by the Chairman of the Board. The President and 
the Board shall, from time to time, consult with such Council 
concerning the objectives of the Corporation. Members of the 
Council shall receive no compensation for their services but 
shall be entitled to reimbursement in accordance with section 
5703 of title 5 of the United States Code for travel and other 
expenses incurred by them in the performance of their functions 
under this section.
    [``Sec. 240. Agricultural Credit and Self-Help Community 
Development Projects.--(a) It is the sense of the Congress that 
in order to stimulate the participation of the private sector 
in the economic development of less developed countries in 
Latin America, the authority conferred by this section should 
be used to establish pilot programs in not more than five Latin 
American countries to encourage private banks, credit 
institutions, similar private lending organizations, 
cooperatives, and private nonprofit development organizations 
to make loans on reasonable terms to organized groups and 
individuals residing in a community for the purpose of enabling 
such groups and individuals to carry out agricultural credit 
and self-help community development projects for which they are 
unable to obtain financial assistance on reasonable terms. 
Agricultural credit and assistance for self-help community 
development projects should include, but not be limited to, 
material and such projects as wells, pumps, farm machinery, 
improved seed, fertilizer, pesticides, vocational training, 
food industry development, nutrition projects, improved 
breeding stock for farm animals, sanitation facilities, and 
looms and other handicraft aids.
    [``(b) To carry out the purposes of subsection (a), the 
Corporation is authorized to issue guaranties, on such terms 
and conditions as it shall determine, to private lending 
institutions, cooperatives, and private nonprofit development 
organizations in not more than five Latin American countries 
assuring against loss of not to exceed 25 per centum of the 
portfolio of such loans made by any lender to organized groups 
or individuals residing in a community to enable such groups or 
individuals to carry out agricultural credit and self-help 
community development projects for which they are unable to 
obtain financial assistance on reasonable terms. In no event 
shall the liability of the United States exceed 75 per centum 
of any one loan.
    [``(c) The total face amount of guaranties issued under 
this section outstanding at any one time shall not exceed 
$15,000,000. Not more than 10 per centum of such sum shall be 
provided for any one institution, cooperative, or organization.
    [``(d) The Inter-American Social Development Institute 
shall be consulted in developing criteria for making loans 
eligible for guaranty coverage under this section.
    [``(e) The guaranty reserve established under section 
235(c) shall be available to make such payments as may be 
necessary to discharge liabilities under guaranties issued 
under this section.
    [``(f) Notwithstanding the limitation contained in 
subsection (c) of this section, foreign currencies owned by the 
United States and determined by the Secretary of the Treasury 
to be excess to the needs of the United States may be utilized 
to carry out the purposes of this section, including the 
discharge of liabilities incurred under this subsection. The 
authority conferred by this subsection shall be in addition to 
authority conferred by any other provision of law to implement 
guaranty programs utilizing excess local currency.
    [``(g) The Corporation shall, on or before January 15, 
1972, make a detailed report to the Congress on the results of 
the pilot programs established under this section, together 
with such recommendations as it may deem appropriate.
    [``(h) The authority of this section shall continue until 
June 30, 1972.
    [``Sec. 240A. Reports to the Congress.--(a) After the end 
of each fiscal year, the Corporation shall submit to the 
Congress a complete and detailed report of its operations 
during such fiscal year.
    [``(b) Not later than March 1, 1974, the Corporation shall 
submit to the Congress an analysis of the possibilities of 
transferring all or part of its activities to private United 
States citizens, corporations, or other associations.''

                         [alliance for progress

    [Sec. 106. Section 252(a) of such Act, relating to 
authorization, is amended to read as follows:
    [``Sec. 252. Authorization.--(a) There is authorized to be 
appropriated to the President for the purposes of this title, 
in addition to other funds available for such purposes, for the 
fiscal year 1970, $428,250,000, and for the fiscal year 1971, 
$428,250,000, which amounts are authorized to remain available 
until expended, and which amounts, except for not to exceed 
$90,750,000 for each such fiscal year, shall be available only 
for loans payable as to principal and interest in United States 
dollars. In order to effectuate the purposes and provisions of 
sections 102, 251, 601, and 602 of this Act, not less than 50 
per centum of the loan funds appropriated pursuant to this 
section for any fiscal year shall be available for loans made 
to encourage economic development through private enterprise.''

                [programs relating to population growth

    [Sec. 107. Section 292, relating to authorization, is 
amended by striking out ``fiscal year 1969, $50,000,000'' and 
inserting in lieu thereof ``fiscal year 1970, $75,000,000, and 
for the fiscal year 1971, $100,000,000,''.

               [international organizations and programs

    [Sec. 108. (a) Section 301(c) of such Act, relating to 
general authority, is amended to read as follows:
    [``(c) No contributions by the United States shall be made 
to the United Nations Relief and Works Agency for Palestine 
Refugees in the Near East except on the condition that the 
United Nations Relief and Works Agency take all possible 
measures to assure that no part of the United States 
contribution shall be used to furnish assistance to any refugee 
who is receiving military training as a member of the so-called 
Palestine Liberation Army or any other guerrilla type 
organization or who has engaged in any act of terrorism.''
    [(b) Section 302(a) of such Act, relating to authorization, 
is amended by striking out ``fiscal year 1969, $135,000,000'' 
and inserting in lieu thereof ``fiscal year 1970, $122,620,000, 
and for the fiscal year 1971, $122,620,000''.
    [(c) Section 302(b) of such Act, relating to Indus Basin 
development, is amended by inserting ``(1)'' immediately after 
``(b)'' and by adding at the end thereof the following new 
paragraph:
    [``(2) There is authorized to be appropriated to the 
President for grants for Indus Basin Development, in addition 
to any other funds available for such purposes, for use in the 
fiscal year 1970, $7,530,000, and for use in the fiscal year 
1971, $7,530,000, which amounts shall remain available until 
expended.''
    [(d) Section 302 of such Act is further amended by adding 
at the end thereof the following new subsection:
    [``(e) There is authorized to be appropriated $1,000,000 
for the fiscal year 1970, and $1,000,000 for the fiscal year 
1971, to provide added contribution to the United Nations 
Relief and Works Agency for expansion of technical and 
vocational training of Arab refugees.''

                         [supporting assistance

    [Sec. 109. Section 402 of such Act, relating to 
authorization, is amended by striking out ``fiscal year 1969 
not to exceed $410,000,000'' and inserting in lieu thereof 
``fiscal year 1970 not to exceed $414,600,000, and for the 
fiscal year 1971 not to exceed $414,600,000''.

                           [contingency fund

    [Sec. 110. Section 451(a) of such Act, relating to the 
contingency fund, is amended by striking out ``fiscal year 1968 
not to exceed $50,000,000, and for the fiscal year 1969 not to 
exceed $10,000,000'' and inserting in lieu thereof ``fiscal 
year 1970 not to exceed $15,000,000, and for the fiscal year 
1971 not to exceed $15,000,000''.

                     [PART II--MILITARY ASSISTANCE

                   [military assistance authorization

    [Sec. 201. Section 504(a) of the Foreign Assistance Act of 
1961, relating to authorization, is amended--
            [(1) by striking out ``$375,000,000 for the fiscal 
        year 1969'' and inserting in lieu thereof 
        ``$350,000,000 for the fiscal year 1970, and 
        $350,000,000 for the fiscal year1971''; and
            [(2) by adding at the end thereof the following new 
        sentence: ``Amounts appropriated under this subsection 
        shall be available for cost-sharing expenses of United 
        States participation in the military headquarters and 
        related agencies program.''

                           [special authority

    [Sec. 202. Section 506(a) of such Act, relating to special 
authority of the President, is amended--
            [(1) by striking out ``1969'' in the first sentence 
        and inserting in lieu thereof ``1970 and the fiscal 
        year 1971''; and
            [(2) by striking out ``in the fiscal year 1969'' in 
        the second sentence and inserting in lieu thereof ``in 
        each of the fiscal year 1970 and 1971''.

          [restrictions on training foreign military students

    [Sec. 203. Chapter 2 of part II of such Act, relating to 
military assistance, is amended by inserting at the end thereof 
the following new section.
    [``Sec. 510. Restrictions on Training Foreign Military 
Students.--The number of foreign military students to be 
trained in the United States in any fiscal year, out of funds 
appropriated pursuant to this part, may not exceed a number 
equal to the number of foreign civilians brought to the United 
States under the Mutual Educational and Cultural Exchange Act 
of 1961 in the immediately preceding fiscal year.''

    [PART III--GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS PROVISIONS

    [Sec. 301. Section 610(a) of the Foreign Assistance Act of 
1961, relating to transfer between accounts, is amended by 
inserting immediately after ``funds made available for any 
provision of this Act'' the following: ``(except funds made 
available pursuant to title IV of chapter 2 of part I)''.
    [Sec. 302. Section 612 of such Act, relating to use of 
foreign currencies, is amended by adding at the end thereof the 
following new subsection:
    [``(d) In furnishing assistance under this Act to the 
government of any country in which the United States owns 
excess foreign currencies as defined in subsection (b) of this 
section, except those currencies generated under the 
Agricultural Trade Development and Assistance Act of 1954, as 
amended, the President shall endeavor to obtain from the 
recipient country an agreement for the release, on such terms 
and conditions as the President shall determine, of an amount 
of such currencies up to the equivalent of the dollar value of 
assistance furnished by the United States for programs as may 
be mutually agreed upon by the recipient country and the United 
States to carry out the purposes for which new funds authorized 
by this Act would themselves be available.''
    [Sec. 303. (a) Section 620(s) of such Act, relating to 
prohibitions against furnishing assistance, is amended to read 
as follows:
    [``(s)(1) In order to restrain arms races and proliferation 
of sophisticated weapons, and to ensure that resources intended 
for economic development are not diverted to military purposes, 
the President shall take into account before furnishing 
development loans, Alliance loans or supporting assistance to 
any country under this Act, and before making sales under the 
Agricultural Trade Development and Assistance Act of 1954, as 
amended:
            [``(A) the percentage of the recipient or 
        purchasing country's budget which is devoted to 
        military purposes;
            [``(B) the degree to which the recipient or 
        purchasing country is using its foreign exchange 
        resources to acquire military equipment; and
            [``(C) the amount spent by the recipient or 
        purchasing country for the purchase of sophisticated 
        weapons systems, such as missile systems and jet 
        aircraft for military purposes, from any country.
    [``(2) The President shall report annually to the Speaker 
of the House of Representatives and the Committee on Foreign 
Relations of the Senate his actions in carrying out this 
provision.''
    [(b) Section 620(v) of such Act is repealed.
    [Sec. 304. Section 624(d) of such Act, relating to the 
duties of the Inspector General, Foreign Assistance, is 
amended--
            [(1) by inserting in paragraph (2)(A), after the 
        words ``under part I of this Act'', the following: 
        ``(including the Overseas Private Investment 
        Corporation), and under part IV of the Foreign 
        Assistance Act of 1969 (the Inter-American Social 
        Development Institute)'';
            [(2) by inserting in paragraph (5), before the 
        period at the end of the first sentence, the following: 
        ``and part IV of the Foreign Assistance Act of 1969''; 
        and
            [(3) by inserting in the first sentence of 
        paragraph (7), immediately after ``programs under part 
        I or II of this Act,'' the following: ``and part IV of 
        the Foreign Assistance Act of 1969,''.
    [Sec. 305. Section 634(a) of such Act, relating to reports 
and information, is amended--
            [(1) by inserting in the first sentence, after the 
        words ``concerning operations'', the following: 
        ``(other than those reported pursuant to section 
        240A)''; and
            [(2) by striking out of the last sentence the 
        following: ``on the operation of the investment 
        guaranty program and''.
    [Sec. 306. Section 636(f) of such Act, relating to use of 
funds, is amended by inserting immediately before the period at 
the end thereof the following: ``or by the Corporation 
established under title IV of chapter 2 of part I with respect 
to loan activities which it carries out under the provisions of 
the Agricultural Trade Development and Assistance Act of 1954, 
as amended''.
    [Sec. 307. Section 637(a) of such Act, relating to 
administrative expenses, is amended by striking out ``fiscal 
year 1969, $53,000,000'' and inserting in lieu thereof ``fiscal 
year 1970, $51,125,000, and for the fiscal year 1971, 
$51,125,000''.
    [Sec. 308. Section 643 of such Act, relating to savings 
provisions, is amended by inserting after ``section 642(a)'' 
and ``section 642(a)(2)'' each time they appear the following: 
``and the Foreign Assistance Act of 1969''.]
          * * * * * * *

                   [PART V--AMENDMENTS TO OTHER ACTS

    [Sec. 501. Section 101 of the Government Corporation 
Control Act (31 U.S.C. 846) is amended by striking out 
``Development Loan Fund;'' and inserting in lieu thereof 
``Overseas Private Investment Corporation;''.
    [Sec. 502. (a) Section 3343(b) of title 5, United States 
Code, relating to details of personnel to international 
organizations, as amended--
            [(1) by striking out ``3'' and inserting in lieu 
        thereof ``5''; and
            [(2) by striking out the period at the end of such 
        section and inserting in lieu thereof a comma and the 
        following: ``except that under special circumstances 
        where the President determines it to be in the national 
        interest, he may extend the 5-year period for up to an 
        additional 3 years.''
    [(b) Section 3581(5) of such title, relating to 
reemployment rights of personnel who transfer to international 
organizations, is amended by striking out ``the first 3 
consecutive years after entering the employ of the 
international organization'' and inserting in lieu thereof the 
following: ``the first 5 consecutive years, or any extension 
thereof, after entering the employ of the international 
organizations''.
    [(c) Section 3582(a) of such title, relating to rights to 
personnel who transfer to international organizations, is 
amended--
            [(1) by inserting in clause (1), before the 
        semicolon at the end thereof, a comma and the 
        following: ``except that such service shall not be 
        considered creditable service for the purpose of any 
        retirement system for transferring personnel, if such 
        service forms the basis, in whole or in part, for any 
        annuity or pension under the retirement system of the 
        international organization''; and
            [(2) by striking out clause (2) and inserting in 
        lieu thereof the following:
            [``(2) to retain coverage, rights, and benefits 
        under chapters 87 and 89 of this title, if necessary 
        employee deductions and agency contributions in payment 
        for the coverage, rights, and benefits for the period 
        of employment with the international organization are 
        currently deposited in the Employees' Life Insurance 
        Fund and the Employees' Health Benefits Fund, as 
        applicable, and the period during which coverage, 
        rights, and benefits are retained under this paragraph 
        is deemed service as an employee under chapters 87 and 
        89 of this title,''.
    [(d) Section 3582(b) of such title, relating to rights of 
employees transferring to international organizations, is 
amended--
            [(1) by striking out, ``, except a Congressional 
        employee,'' in the first sentence;
            [(2) by striking out of clause (1) ``3 years'' and 
        inserting in lieu thereof ``5 years, or any extension 
        thereof,''; and
            [(3) by inserting at the end thereof the following 
        new sentences: ``On reemployment, he is entitled to be 
        paid, under such regulations as the President may 
        prescribe and from appropriations or funds of the 
        agency from which transferred, an amount equal to the 
        difference between the pay, allowances, post 
        differential, and other monetary benefits paid by the 
        international organization and the pay, allowances, 
        post differential, and other monetary benefits that 
        would have been paid by the agency had he been detailed 
        to the international organization under section 3343 of 
        this title. Such a payment shall be made to an employee 
        who is unable to exercise his reemployment right 
        because of disability incurred while on transfer to an 
        international organization under this subchapter and, 
        in the case of any employee who dies while on such a 
        transfer or during the period after separation from the 
        international organization in which he is properly 
        exercising or could exercise his reemployment right, in 
        accordance with subchapter VIII of chapter 55 of this 
        title. This subsection does not apply to a 
        congressional employee nor may any payment provided for 
        in the preceding two sentences of this subsection be 
        based on a period of employment with an international 
        organization occurring before the first day of the 
        first pay period which begins on or after the date of 
        enactment of the Foreign Assistance Act of 1969.''
    [(e) Section 3582(c) of such title, relating to rights of 
employees transferring to international organizations, is 
amended by striking out ``3 years'' and inserting in lieu 
thereof the following: ``5 years, or any extension thereof,''.
    [(f) Section 3582(d) of such title, relating to agency 
contributions to retirement and insurance programs for 
personnel who transfer to international organizations, is 
amended to read as follows:
    [``(d) During the employee's period of service with the 
international organization, the agency from which the employee 
is transferred shall make contributions for retirement and 
insurance purposes from the appropriations or funds of that 
agency so long as contributions are made by the employee.''
    [Sec. 503. Subchapter II of chapter 53 of title 5, United 
States Code, is amended--
            [(1) by inserting at the end of section 5314, 
        relating to level III of the Executive Schedule, the 
        following:
            [``(54) President, Overseas Private Investment 
        Corporation.'';
            [(2) by inserting at the end of section 5315, 
        relating to level IV of the Executive Schedule, the 
        following:
            [``(92) Executive Vice President, Overseas Private 
        Investment Corporation.''; and
            [(3) by inserting at the end of section 5316, 
        relating to level V of the Executive Schedule, the 
        following:
            [``(128) Auditor-General of the Agency for 
        International Development.
            [``(129) Vice Presidents, Overseas Private 
        Investment Corporation (3).'']
                              ----------                              


                     FOREIGN ASSISTANCE ACT OF 1968

AN ACT To amend further the Foreign Assistance Act of 1961, as amended, 
                         and for other purposes

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, [That this 
Act may be cited as the ``Foreign Assistance Act of 1968''.

                                [Part I

                   [CHAPTER 2--DEVELOPMENT ASSISTANCE

                    [TITLE I--DEVELOPMENT LOAN FUND

    [Sec. 101. Title I of chapter 2 of part I of the Foreign 
Assistance Act of 1961, as amended, which relates to the 
Development Loan Fund, is amended as follows:
    [(a) Section 201(d), which relates to rates of interest, is 
amended as follows:
            [(1) Strike out ``1967'' and substitute ``1968''.
            [(2) Strike out ``2\1/2\ per centum'' and 
        substitute ``3 per centum''.
    [(b) Section 202(a), which relates to authorization, is 
amended as follows:
            [(1) After ``year 1967'', strike out ``and'' and 
        substitute a comma.
            [(2) After ``year 1968,'' insert ``and $350,000,000 
        for the fiscal year 1969,''.
            [(3) Strike out ``years ending June 30, 1967, 
        through June 30, 1968, respectively'' and substitute 
        ``year ending June 30, 1969''.

        [TITLE II--TECHNICAL COOPERATION AND DEVELOPMENT GRANTS

    [Sec. 102. Title II of chapter 2 of part I of the Foreign 
Assistance Act of 1961, as amended, which relates to technical 
cooperation and development grants, is amended as follows:
    [(a) Section 211(d), which relates to availability of funds 
for certain research and educational institutions, is amended 
by inserting ``in any fiscal year'' immediately after ``funds 
made available''.
    [(b) Section 212, which relates to authorization, is 
amended by striking out ``$210,000,000 for the fiscal year 
1968'' and substituting $200,000,000 for the fiscal year 
1969''.
    [(c) Section 214, which relates to American schools and 
hospitals abroad, is amended as follows:
            [(1) In subsection (c) strike out ``1968, 
        $14,000,000'' and substitute ``1969, $14,600,000''.
            [(2) In subsection (d) strike out ``1968, 
        $2,986,000'' and substitute ``1969, $5,100,000''.

                   [TITLE III--INVESTMENT GUARANTIES

    [Sec. 103. (a) Section 221(b) of title III of chapter 2 of 
part I of the Foreign Assistance Act of 1961, as amended, which 
relates to general authority for investment guaranties, is 
amended as follows:
    [(1) In the proviso of paragraph (1), strike out 
``$8,000,000,000'' and substitute ``$8,500,000,000''.
    [(2) Paragraph (2) is amended as follows:
            [(A) In the third proviso, strike out 
        ``$475,000,000'' and ``$315,000,000'' and substitute 
        ``$550,000,000'' and ``$390,000,000'', respectively.
            [(B) In the third proviso, strike out 
        ``$1,000,000'' and substitute ``$1,250,000''.
            [(C) In the last proviso, strike out ``1970'' and 
        substitute ``1971''.
    [(b) At the end of section 221, add a new subsection as 
follows:
    [``(e)(1) No guaranty of a loan or equity investment of an 
eligible United States investor in a foreign bank, finance 
company, or other credit institution (hereinafter the `original 
investment') shall cover any loss of a loan or equity 
investment of such bank, finance company, or credit 
institution; and in no event shall payment be made under any 
such guaranty except for loss of the original investment, and, 
where provided for by such guaranty, earnings or profits 
actually accrued thereon.
    [``(2) In the administration of this subsection, the 
eligible United States investor may be deemed to have sustained 
a loss of the original investment only if the foreign bank, 
finance company, or credit institution in which the original 
investment was made becomes or is likely to become insolvent 
due to the occurrence of an event against which protection is 
provided by the guaranty.''
    [Sec. 104. Section 224(c), which relates to housing 
projects in Latin American countries, is amended by striking 
out ``$500,000,000'' and substituting ``$550,000,000''.

                    [TITLE VI--ALLIANCE FOR PROGRESS

    [Sec. 105. (a) Section 252(a) of title VI of chapter 2 of 
part I of the Foreign Assistance Act of 1961, as amended, which 
relates to authorization for the Alliance for Progress, is 
amended as follows:
    [(1) Strike out ``1967, $696,500,000, and for the fiscal 
year 1968, $578,000,000, which amounts are'' and substitute 
``1969, $420,000,000, which is''.
    [(2) Strike out ``$100,000,000 in each such fiscal year of 
the funds appropriated pursuant to this section for use 
beginning in each such fiscal year'' and substitute 
``$90,000,000''.
    [(3) Strike out ``years ending June 30, 1967, through June 
30, 1968, respectively'' and substitute ``year ending June 30, 
1969''.
    [(b) Section 252(b), which relates to authorization for the 
Partners of the Alliance, is amended by striking out ``1968, 
$714,000'' and substituting ``1969, $350,000''.

    [TITLE IX--UTILIZATION OF DEMOCRATIC INSTITUTIONS IN DEVELOPMENT

    [Sec. 106. Section 281 of the Foreign Assistance Act of 
1961, as amended, is amended as follows:
    [(a) At the end of subsection (c), add the following new 
sentence: ``In particular, emphasis should be given to research 
designed to increase understanding of the ways in which 
development assistance can support democratic social and 
political trends in recipient countries.''
    [(b) At the end of section 281, add the following new 
subsection:
    [``(e) In order to carry out the purposes of this title, 
the agency primarily responsible for administering part I of 
this Act shall develop systematic programs of inservice 
training to familiarize its personnel with the objectives of 
this title and to increase their knowledge of the political and 
social aspects of development. In addition to other funds 
available for such purposes, not to exceed 1 per centum of the 
funds authorized to be appropriated for grant assistance under 
this chapter may be used for carrying out the objectives of 
this subsection.''

            [TITLE X--PROGRAMS RELATING TO POPULATION GROWTH

    [Sec. 107. Section 292 of title X of chapter 2 of part I of 
the Foreign Assistance Act of 1961, as amended, is amended by 
striking out ``1968, $35,000,000'' and substituting ``1969, 
$50,000,000''.

          [CHAPTER 3--INTERNATIONAL ORGANIZATIONS AND PROGRAMS

    [Sec. 108. (a) Section 302(a) of chapter 3 of part I of the 
Foreign Assistance Act of 1961, as amended, which relates to 
authorization for international organizations and programs is 
amended by striking out ``1968, $141,000,000'' and substituting 
``1969, $135,000,000''.
    [(b) Section 302 is further amended by adding at the end 
thereof the following new subsection:
    [``(d) There is authorized to be appropriated to the 
President, for the fiscal year 1969, $1,000,000 for 
contributions to the United Nations Children's Fund during the 
calendar year 1969. Funds made available under this subsection 
shall be in addition to funds available under this or any other 
Act for such contributions and shall not be taken into account 
in computing the aggregate amount of United States 
contributions to such fund for the calendar year 1969.''

                   [CHAPTER 4--SUPPORTING ASSISTANCE

    [Sec. 109. Section 402 of chapter 4 of part I of the 
Foreign Assistance Act of 1961, as amended, which relates to 
authorization for supporting assistance, is amended by striking 
out ``1968 not to exceed $660,000,000'' and substituting ``1969 
not to exceed $410,000,000''.

                      [CHAPTER 5--CONTINGENCY FUND

    [Sec. 110. Section 451(a) of chapter 5 of part I of the 
Foreign Assistance Act of 1961, as amended, which relates to 
the contingency fund, is amended by inserting ``, and for the 
fiscal year 1969 not to exceed $10,000,000,'' after 
``$50,000,000''.

                                [PART II

                    [CHAPTER 2--MILITARY ASSISTANCE

    [Sec. 201. Chapter 2 of part II of the Foreign Assistance 
Act of 1961, as amended, which relates to military assistance, 
is amended as follows:
    [(a) Section 504(a), which relates to authorization, is 
amended as follows:
            [(1) In the first sentence, strike out 
        ``$510,000,000'' and ``1968'' and substitute 
        ``$375,000,000'' and ``1969'', respectively.
            [(2) Strike out the second and third sentences.
            [(3) In the first sentence, insert the following 
        proviso before the period: ``: Provided further, That 
        none of the funds appropriated pursuant to this 
        subsection shall be used to furnish sophisticated 
        weapons systems, such as missile systems and jet 
        aircraft for military purposes, to any underdeveloped 
        country, unless the President determines that the 
        furnishing of such weapons systems is important to the 
        national security of the United States and reports 
        within thirty days each such determination to the 
        Congress''.
    [(b) Section 506(a), which relates to special authority, is 
amended by striking out ``1968'' each place it appears and 
substituting ``1969''.
    [(c)(1) Section 507(a), which relates to restrictions on 
military aid to Latin America, is amended by striking out 
``$55,000,000, of which $25,000,000'' and substituting 
``$25,000,000, of which any part''.
    [(2) Such section 507 is further amended by adding at the 
end thereof the following new subsection:
    [``(d) Notwithstanding the foregoing provisions of this 
section, not to exceed $10,000,000 of the funds made available 
for use under this part may be used to furnish assistance to 
the American Republics, directly or through regional defense 
arrangements, to enable such Republics to strengthen patrol 
activities in their coastal waters for the purpose of 
preventing landings on their shores, by Communist or other 
subversive elements originating in Cuba, which threaten the 
security of such Republics and of their duly constituted 
governments.''
    [(d) Section 508, which relates to restrictions on military 
aid to Africa, is amended as follows:
            [(1) In the first sentence, strike out ``or 
        sales''.
            [(2) In the second sentence, strike out ``and 
        sales'' and strike out ``$40,000,000'' and substitute 
        ``$25,000,000''.

                               [PART III

                     [CHAPTER 1--GENERAL PROVISIONS

    [Sec. 301. Chapter 1 of part III of the Foreign Assistance 
Act of 1961, as amended, which relates to general provisions, 
is amended as follows:
    [(a) Section 604, which relates to procurement of 
commodities, is amended by adding at the end thereof the 
following new subsection:
    [``(f) No funds authorized to be made available to carry 
out part I of this Act shall be used under any commodity import 
program to make any payment to a supplier unless the supplier 
has certified to the agency primarily responsible for 
administering such part I, such information as such agency 
shall by regulation prescribe, including but not limited to, a 
description of the commodity supplied by him and its condition, 
and, on the basis of such information such agency shall have 
approved such commodity as eligible and suitable for financing 
under this Act.''
    [(b) Section 607, which relates to the furnishing of 
services and commodities, is amended by inserting ``(a)'' 
immediately before ``Whenever'' and by adding at the end 
thereof the following new subsection:
    [``(b) No Government-owned excess property shall be made 
available under this section, section 608, or otherwise in 
furtherance of the purposes of part I of this Act, unless, 
before the shipment of such property for use in a specified 
country (or transfer, if the property is already in such 
country), the agency administering such part I has approved 
such shipment (or transfer) and made a written determination--
            [``(1) that there is a need for such property in 
        the quantity requested and that such property is 
        suitable for the purpose requested;
            [``(2) as to the status and responsibility of the 
        designated end-user and his ability effectively to use 
        and maintain such property; and
            [``(3) that the residual value, serviceability, and 
        appearance of such property would not reflect 
        unfavorably on the image of the United States and would 
        justify the costs of packing, crating, handling, 
        transportation, and other accessorial costs, and that 
        the residual value at least equals the total of these 
        costs.''
    [(c) Section 620, which relates to prohibitions against 
furnishing assistance, is amended by adding at the end thereof 
the following new subsection:
    [``(v) The President is directed to withhold economic 
assistance in an amount equivalent to the amount spent by any 
underdeveloped country for the purchase of sophisticated 
weapons systems, such as missile systems and jet aircraft for 
military purposes from any country, unless the President 
determines that such purchase or acquisition of weapons systems 
is important to the national security of the United States and 
reports within thirty days each such determination to the 
Congress.''

                 [Chapter 2--Administrative Provisions

    [Sec. 302. Chapter 2 of part III of the Foreign Assistance 
Act of 1961, as amended, which relates to administrative 
provisions, is amended as follows:
    [(a) Section 621, which relates to exercise of functions, 
is amended by inserting ``(a)'' immediately after ``Sec. 621. 
Exercise of Functions.--'' and by adding at the end thereof the 
following new subsection:
    [``(b) The President shall issue and enforce regulations 
determining the eligibility of any person to receive funds made 
available under this Act. A person may be suspended under such 
regulations for a temporary period pending the completion of an 
investigation and any resulting judicial or debarment 
proceedings, upon cause for belief that such person or an 
affiliate thereof probably has undertaken conduct which 
constitutes a cause for debarment; and, after an opportunity 
has been afforded to such person for a hearing, he may be 
debarred for an additional period, not to exceed three years. 
Among the causes for debarment shall be (1) offering or 
accepting a bribe or other illegal payment or credit in 
connection with any transaction financed with funds made 
available under this Act; or (2) committing a fraud in the 
procurement or performance of any contract financed with funds 
made available under this Act; or (3) acting in any other 
manner which shows a lack of integrity or honesty in connection 
with any transaction financed with funds made available under 
this Act. Reinstatement of eligibility in each particular case 
shall be subject to such conditions as the President shall 
direct. Each person whose eligibility is denied or suspended 
under this subsection shall, upon request, be entitled to a 
review of his eligibility not less often than once every two 
years.''
    [(b) Immediately after section 621 add the following new 
section:
    [``Sec. 621A. Strengthened Management Practices.--(a) The 
Congress believes that United States foreign aid funds could be 
utilized more effectively by the application of advanced 
management decisionmaking, information and analysis techniques 
such as systems analysis, automatic data processing, benefit-
cost studies, and information retrieval.
    [``(b) To meet this need, the President shall establish a 
management system that includes: the definition of objectives 
and programs for United States foreign assistance; the 
development of quantitative indicators of progress toward these 
objectives; the orderly consideration of alternative means for 
accomplishing such objectives; and the adoption of methods for 
comparing actual results of programs and projects with those 
anticipated when they were undertaken. The system should 
provide information to the agency and to Congress that relates 
agency resources, expenditures, and budget projections to such 
objectives and results in order to assist in the evaluation of 
program performance, the review of budgetary requests, and the 
setting of program priorities.
    [``(c) The President shall report to the Congress annually 
on the specific steps that have been taken, including an 
evaluation of the progress that has been made toward the 
implementation of this section.''
    [(c) Section 625(c), which relates to employment of 
personnel, is amended by inserting ``or any Act superseding 
part II in whole or in part,'' between ``part II,'' and 
``not''.
    [(d) Section 636(g)(1), which relates to provisions on uses 
of funds, is amended by inserting ``incurred in furnishing 
defense articles and defense services on a grant or sales basis 
by the agency primarily responsible for administering part II'' 
between ``expenses'' and the semicolon.
    [(e) Section 637(a), which authorizes appropriations for 
administrative expenses of the agency administering part I, is 
amended (1) by striking out ``1968, $55,814,000'' and 
substituting ``1969, $53,000,000''; and (2) by adding at the 
end thereof the following: ``The agency administering part I 
shall reduce the number of personnel, particularly 
administrative personnel, employed by it in order to conduct 
operations with the reduced amount of funds authorized for 
fiscal year 1969, except that such agency shall not take any 
action to limit or reduce auditing or training activities of 
such agency.''
    [(f) At the end of such chapter, add the following new 
section:
    [``Sec. 640A. False Claims and Ineligible Commodities.--(a) 
Any person who makes or causes to be made or presents or causes 
to be presented to any bank or other financial institution or 
to any officer, agent, or employee of any agency of the United 
States Government a claim for payment from funds made available 
under this Act for the purposes of furnishing assistance and 
who knows the claim to be false, fraudulent, or fictitious or 
to cover a commodity or commodity-related service determined by 
the President to be ineligible for payment from funds made 
available under this Act, or who uses to support his claim any 
certification, statement, or entry on any contract, abstract, 
bill of lading, Government or commercial invoice, or Government 
form, which he knows, or in the exercise of prudent business 
management should know, to contain false, fraudulent, or 
fictitious information, or who uses or engages in any other 
fraudulent trick, scheme, or device for the purpose of securing 
or obtaining, or aiding to secure or obtain, for any person any 
benefit or payment from funds so made available under this Act 
in connection with the negotiation, procurement, award, or 
performance of a contract financed with funds so made available 
under this Act, and any person who enters into an agreement, 
combination, or conspiracy so to do, (1) shall pay to the 
United States an amount equal to 25 per centum of any amount 
thereby sought to be wrongfully secured or obtained but not 
actually received, and (2) shall forfeit and refund any 
payment, compensation, loan, commission, or advance received as 
a result thereof, and (3) shall, in addition, pay to the United 
States for each such act (A) the sum of $2,000 and double the 
amount of any damage which the United States may have sustained 
by reasons thereof, or (B) an amount equal to 50 per centum of 
any such payment, compensation, loan, commission, or advance so 
received, whichever is the greater, together with the costs of 
suit.
    [``(b) In order to secure recovery under this section, the 
President may, as he deems appropriate, (1) institute suit in 
the United States district court for any judicial district in 
which the person alleged to have performed or participated in 
an act described by this section may reside or may be found, 
and (2) upon posting by registered mail to such person a notice 
of claim describing the basis therefor and identifying the 
funds to be withheld, withhold from funds owed by any agency of 
the United States Government to such person an amount equal to 
the refund, damages, liquidated damages, and exemplary damages 
claimed by the United States under this section. Any such 
withholding of funds from any person shall constitute a final 
determination of the rights and liabilities of such person 
under this section with respect to the amount so withheld, 
unless within one year of receiving the notice of claim such 
person brings suit for recovery, which is hereby authorized, 
against the United States in any United States district court.
    [``(c) For purposes of this section, the term `person' 
includes any individual, corporation, partnership, association, 
or other legal entity.''

                  [CHAPTER 3--MISCELLANEOUS PROVISIONS

    [Sec. 303. Chapter 3 of part III of the Foreign Assistance 
Act of 1961, as amended, which relates to miscellaneous 
provisions, is amended by adding at the end thereof the 
following new section:
    [``Sec. 651. Sale of Supersonic Planes to Israel.--It is 
the sense of the Congress that the President should take such 
steps as may be necessary, as soon as practicable after the 
date of enactment of this section, to negotiate an agreement 
with the Government of Israel providing for the sale by the 
United States of such number of supersonic planes as may be 
necessary to provide Israel with an adequate deterrent force 
capable of preventing future Arab aggression by offsetting 
sophisticated weapons received by the Arab States and to 
replace losses suffered by Israel in the 1967 conflict.''

                   [Part IV--Amendments to Other Acts

    [Sec. 401. The Act of April 12, 1926 (44 Stat. 242; chapter 
117) is amended by adding at the end thereof a new section as 
follows:
    [``Sec. 2. (a) For each of the calendar years 1969 through 
1971, inclusive, not more than 350 million board feet, in the 
aggregate, of unprocessed timber may be sold for export from 
the United States from Federal lands located west of the 100th 
meridian.
    [``(b) After public hearing and a finding by the 
appropriate Secretary of the department administering Federal 
lands referred to in subsection (a) that specific quantities 
and species of unprocessed timber are surplus to the needs of 
domestic users and processors, such quantities and species may 
be designated by the said Secretary as available for export 
from the United States in addition to that quantity stated in 
subsection (a).
    [``(c) The Secretaries of the departments administering 
lands referred to in subsection (a) may issue rules and 
regulations to carry out the purposes of this section, 
including the prevention of substitution of timber restricted 
from export by this section for exported non-Federal timber.
    [``(d) In issuing rules and regulations pursuant to 
subsection (c), the appropriate Secretaries may include therein 
provisions authorizing the said Secretaries, in their 
discretion, to exclude from the limitations imposed by this 
section sales having an appraised value of less than $2,000.''

          [Part V--Reappraisal of Foreign Assistance Programs

                         [declaration of policy

    [Sec. 501. The Congress declares that, in view of changing 
world conditions and the continued need to make United States 
foreign assistance programs an effective implement of United 
States foreign policy, there should be a comprehensive review 
and reorganization of all United States foreign assistance 
programs, including economic development and technical 
assistance programs, military assistance and sales programs, 
and programs involving contributions and payments by the United 
States to international lending institutions and other 
international organizations concerned with the development of 
friendly foreign countries and areas.

                     [reappraisal by the president

    [Sec. 502. (a) In furtherance of the policy of this part, 
the President is requested to make a thorough and comprehensive 
reappraisal of United States foreign assistance programs, as 
described in section 501, and to submit to the Congress, on or 
before March 31, 1970, his recommendations for achieving such 
reforms in and reorganization of future foreign assistance 
programs as he determines to be necessary and appropriate in 
the national interest in the light of such reappraisal. The 
President is requested to submit to the Congress, on or before 
July 1, 1969, an interim report presenting any preliminary 
recommendations formulated by him pursuant to this section.
    [(b) It is the sense of the Congress that the reappraisal 
provided for in subsection (a) should include, but not be 
limited to, an analysis and consideration of proposals 
concerning the establishment of a Government corporation or a 
federally chartered private corporation designed to mobilize 
and facilitate the use of United States private capital and 
skills in less developed friendly countries and areas, 
including whether such corporation should be authorized to--
    [(1) utilize Government guarantees and funds as well as 
private funds;
    [(2) seek, develop, promote, and underwrite new investment 
projects;
    [(3) assist in transferring skills and technology to less 
developed friendly countries and areas; and
    [(4) invest in the securities of development financing 
institutions and assist in the formation and expansion of local 
capital markets.]
                              ----------                              


                     FOREIGN ASSISTANCE ACT OF 1964

AN ACT To amend further the Foreign Assistance Act of 1961, as amended, 
                         and for other purposes

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, [That this 
Act may be cited as the ``Foreign Assistance Act of 1964''.

                                [Part I

                   [CHAPTER 2--DEVELOPMENT ASSISTANCE

                    [TITLE I--DEVELOPMENT LOAN FUND

    [Sec. 101. Section 201(d) of the Foreign Assistance Act of 
1961, as amended, which relates to the Development Loan Fund, 
is amended as follows:
            [(a) Strike out `` Foreign Assistance Act of 1963'' 
        and substitute `` Foreign Assistance Act of 1964''.
            [(b) Strike out ``2 per centum'' and substitute 
        ``2\1/2\ per centum''.
            [(c) Strike out ``three-fourths of 1 per centum'' 
        and substitute ``1 per centum''.

        [TITLE II--TECHNICAL COOPERATION AND DEVELOPMENT GRANTS

    [Sec. 102. Title II of chapter 2 of part I of the Foreign 
Assistance Act of 1961, as amended, which relates to 
development grants and technical cooperation, is hereby amended 
as follows:
    [(a) Amend the title heading to read as follows: ``title 
ii--technical cooperation and development grants''.
    [(b) Amend section 212, which relates to authorization, by 
striking out ``1964'' and ``$220,000,000'' and substituting 
``1965'' and ``$215,000,000'', respectively.
    [(c) Amend section 214(c), which relates to American 
schools and hospitals abroad, by striking out ``1964, 
$19,000,000'' and substituting ``1965, $18,000,000'', and by 
striking out the second sentence.
    [(d) Amend section 216(a), which relates to voluntary 
agencies by inserting after ``ports'' the first time it 
appears, the words ``or, in the case of excess or surplus 
property supplied by the United States, from foreign ports''.
    [(e) Add the following new section at the end thereof:
    [``Sec. 217. Used Equipment.--The President is authorized 
to use funds made available for the purposes of section 211 to 
conduct a study and investigation to determine the feasibility 
of establishing programs for the furnishing to less developed 
friendly countries and areas of used tools, machinery, and 
other equipment to be donated by private enterprises, or 
acquired through normal channels of trade and the extent to 
which such programs are likely to be utilized by and contribute 
to the economic development of the receiving country. The 
President shall submit to the Congress at the earliest 
practicable date a report of the results of such study and 
investigation, together with such recommendations for 
legislation as he deems advisable.''

                   [TITLE III--INVESTMENT GUARANTIES

    [Sec. 103. Title III of chapter 2 of part I of the Foreign 
Assistance Act of 1961, as amended, which relates to investment 
guaranties, is hereby amended as follows:
    [(a) Amend section 221(b)(2), which relates to general 
authority, as follows:
    [(1) Strike out ``$180,000,000'' in the third proviso and 
substitute ``$300,000,000''.
    [(2) Strike out ``1965'' in the last proviso and substitute 
``1966''.
    [(b) Amend section 224(b), which relates to housing 
projects in Latin American countries, by striking out 
``$150,000,000'' and substituting ``$250,000,000''.

             [TITLE IV--SURVEYS OF INVESTMENT OPPORTUNITIES

    [Sec. 104. Section 232 of the Foreign Assistance Act of 
1961, as amended, which relates to surveys of investment 
opportunities, is amended by striking out ``1963'' and 
``$2,000,000'' and substituting ``1965'' and ``$2,100,000'', 
respectively.

                    [TITLE VI--ALLIANCE FOR PROGRESS

    [Sec. 105. Section 252 of the Foreign Assistance Act of 
1961, as amended, which relates to the Alliance for Progress, 
is amended by striking out in the first sentence the words 
beginning with ``of the funds'' the first time they appear 
through the words ``fiscal year 1964'' and substituting ``in 
each of the fiscal years 1963 and 1964 and $85,000,000 in 
fiscal year 1965 of the funds appropriated pursuant to this 
section for use beginning in each such fiscal year.''.

          [CHAPTER 3--INTERNATIONAL ORGANIZATIONS AND PROGRAMS

    [Sec. 106. Section 302 of the Foreign Assistance Act of 
1961, as amended, which relates to international organizations 
and programs, is amended as follows:
    [(a) Strike out ``1964'' and ``$136,050,000'' and 
substitute ``1965'' and ``$134,272,400'', respectively.
    [(b) At the end thereof, add the following new sentence: 
``None of the funds available to carry out this chapter shall 
be contributed to any international organization or to any 
foreign government or agency thereof to pay the costs of 
developing or operating any volunteer program of such 
organization, government, or agency relating to the selection, 
training, and programing of volunteer manpower.''

                   [CHAPTER 4--SUPPORTING ASSISTANCE

    [Sec. 107. Section 402 of the Foreign Assistance Act of 
1961, as amended, which relates to supporting assistance, is 
amended by striking out ``1964'' and ``$380,000,000'' and 
substituting ``1965'' and ``$405,000,000'', respectively, and 
by adding at the end thereof the following new sentence: ``Of 
the funds made available for the fiscal year 1965 to carry out 
the purposes of this chapter, not less than $200,000,000 shall 
be available solely for use in Vietnam, unless the President 
determines otherwise and promptly reports such determination to 
the Committees on Foreign Relations and Appropriations of the 
Senate and to the Speaker of the House of Representatives.''.

                      [CHAPTER 5--CONTINGENCY FUND

    [Sec. 108. Section 451(a) of the Foreign Assistance Act of 
1961, as amended, which relates to the contingency fund, is 
amended by striking out ``1964'' and ``$160,000,000'' and 
substituting ``1965'' and ``$150,000,000'', respectively.

                                PART II

                    [CHAPTER 2--MILITARY ASSISTANCE

    [Sec. 201. Chapter 2 of part II of the Foreign Assistance 
Act of 1961, as amended, which relates to military assistance, 
is amended as follows:
    [(a) Amend section 503, which relates to general authority, 
as follows:
    [(1) In subsection (c) strike out ``and'' at the end 
thereof and in subsection (d) strike out the period at the end 
thereof and substitute ``; and''.
    [(2) Add the following new subsection (e):
            [``(e) guarantying, insuring, coinsuring, and 
        reinsuring any individual, corporation, partnership, or 
        other association doing business in the United States 
        against political and credit risks of nonpayment 
        arising in connection with credit sales financed by 
        such individual, corporation, partnership or other 
        association for defense articles and defense services 
        procured in the United States by such friendly country 
        or international organization.''
    [(b) Amend section 504(a), which relates to authorization, 
by striking out ``1964'' and $1,000,000,000'' and substituting 
``1965'' and $1,055,000,000'', respectively, and by adding at 
the end thereof the following new sentence: ``Of the funds made 
available for the fiscal year 1965 to carry out the purposes of 
this part, not less than $200,000,000 shall be available solely 
for use in Vietnam, unless the President determines otherwise 
and promptly reports such determination to the Committees on 
Foreign Relations and Appropriations of the Senate and to the 
Speaker of the House of Representatives.''.
    [(c) Amend section 507(b), which relates to sales, by 
inserting after ``are due'' at the end of the first sentence 
the following: ``: Provided, That the President may, when he 
determines it to be in the national interest, accept a 
dependable undertaking to make full payment within one hundred 
and twenty days after delivery of the defense articles, or the 
rendering of the defense services, and appropriations available 
to the Department of Defense may be used to meet the payments 
required by the contracts and shall be reimbursed by the 
amounts subsequently received from the country or international 
organization''.
    [(d) Amend section 509, which relates to exchanges, as 
follows:
    [(1) The section heading is amended to read as follows:
``Exchange and Guaranties''.
    [(2) After the section heading insert ``(a)''.
    [(3) Add the following new subsection (b):
    [``(b) In issuing guaranties, insurance, coinsurance, and 
reinsurance, the President may enter into contracts with 
exporters, insurance companies, financial institutions, or 
others, or groups thereof, and where appropriate may employ any 
of the same to act as agent in the issuance and servicing of 
such guaranties, insurance, coinsurance, and reinsurance, and 
the adjustment of claims arising thereunder. Fees and premiums 
shall be charged in connection with contracts of guaranty, 
insurance, coinsurance, and reinsurance. Obligations shall be 
recorded against the funds available for credit sales under 
this part in an amount not less than 25 per centum of the 
contractual liability related to any guaranty, insurance, 
coinsurance, and reinsurance issued pursuant to this part and 
the funds so obligated together with fees and premiums shall 
constitute a single reserve for the payment of claims under 
such contracts. Any guaranties, insurance, coinsurance, and 
reinsurance issued pursuant to this part shall be considered 
contingent obligations backed by the full faith and credit of 
the United States of America.''
    [(e) Section 510(a), which relates to special authority, is 
amended by striking out ``1964'' in the first and second 
sentences thereof and substituting ``1965''.
    [(f) Section 512, which relates to restrictions on military 
aid to Africa, is amended by striking out ``1964'' and 
substituting ``1965''.
    [(g) Add the following new section at the end thereof:
    [``Sec. 513. Certification of Recipient's Capability.--(a) 
Except as provided in subsection (b) of this section, no 
defense article having a value in excess of $100,000 shall 
hereafter be furnished to any country or international 
organization under the authority of this Act (except under the 
authority of section 507) unless the chief of the appropriate 
military assistance advisory group representing the United 
States with respect to defense articles used by such country or 
international organization or the head of any other group 
representing the United States with respect to defense articles 
used by such country or international organization has 
certified in writing within six months prior to delivery that 
the country or international organization has the capability to 
utilize effectively such article in carrying out the purposes 
of this part.
    [``(b) Defense articles included in approved military 
assistance programs may be furnished to any country or 
international organization for which the certification required 
by subsection (a) of this section cannot be made when 
determined necessary and specifically approved in advance by 
the Secretary of State (or, upon appropriate delegation of 
authority by an Under Secretary or Assistant Secretary of 
State) and the Secretary of Defense (or, upon appropriate 
delegation of authority by the Deputy Secretary or an Assistant 
Secretary of Defense). The Secretary of State, or his delegate, 
shall make a complete report to the Speaker of the House of 
Representatives and to the Committee on Foreign Relations and 
the Committee on Appropriations of the Senate of each such 
determination and approval and the reasons therefor.''

                               [PART III

                     [Chapter 1--General Provisions

    [Sec. 301. Chapter 1 of part III of the Foreign Assistance 
Act of 1961, as amended, which relates to general provisions, 
is amended as follows:
    [(a) Amend section 601(c), relating to the Advisory 
Committee on Private Enterprise, by striking out in paragraph 
(4) ``December 31, 1964'' and substituting ``June 30, 1965''.
    [(b) Section 601, which relates to the encouragement of 
free enterprise and private participation, is amended by adding 
at the end thereof the following new subsection:
    [``(d) It is the sense of the Congress that the Agency for 
International Development should continue to encourage, to the 
maximum extent consistent with the national interest, the 
utilization of engineering and professional services of United 
States firms (including, but not limited to, any corporation, 
company, partnership, or other association) or by an affiliate 
of such United States firms in connection with capital projects 
financed by funds authorized under this Act.''
    [(c) Amend section 612, which relates to the use of foreign 
currencies, by adding the following new subsection (c):
    [``(c) Any Act of the Congress making appropriations to 
carry out programs under this or any other Act for United 
States operations abroad is hereby authorized to provide for 
the utilization of United States-owned excess foreign 
currencies to carry out any such operations authorized by law.
    [``The President shall take all appropriate steps to assure 
that, to the maximum extent possible, United States-owned 
excess foreign currencies are utilized, in lieu of dollars. As 
used in this subsection, the term `excess foreign currencies' 
means foreign currencies or credits owned by or owed to the 
United States which are, under applicable agreements with the 
foreign country concerned, available for the use of the United 
States Government and are determined by the President to be 
excess to the normal requirements of departments and agencies 
of the United States for such currencies or credits and are not 
prohibited from use under this subsection by an agreement 
entered into with the foreign country concerned.''
    [``(d) Amend subsection 620(e), relating to expropriations 
and other similar matters, as follows:
    [(1) After ``(e)'' insert ``(1)''.
    [(2) Redesignate subparagraphs (1), (2), and (3) of the 
first paragraph as subparagraphs (A), (B), and (C), 
respectively.
    [(3) Strike out ``paragraphs (1), (2), or (3)'' and 
substitute ``subparagraphs (A), (B), or (C) of paragraph (1)''.
    [(4) At the end of such subsection add the following new 
paragraph (2):
    [``(2) Notwithstanding any other provision of law, no court 
in the United States shall decline on the ground of the federal 
act of state doctrine to make a determination on the merits 
giving effect to the principles of international law in a case 
in which a claim of title or other right is asserted by any 
party including a foreign state (or a party claiming through 
such state) based upon (or traced through) a confiscation or 
other taking after January 1, 1959, by an act of that state in 
violation of the principles of international law, including the 
principles of compensation and the other standards set out in 
this subsection: Provided, That this subparagraph shall not be 
applicable (1) in any case in which an act of a foreign state 
is not contrary to international law or with respect to a claim 
of title or other right acquired pursuant to an irrevocable 
letter of credit of not more than 180 days duration issued in 
good faith prior to the time of the confiscation or other 
taking, or (2) in any case with respect to which the President 
determines that application of the act or state doctrine is 
required in that particular case by the foreign policy 
interests of the United States and a suggestion to this effect 
is filed on his behalf in that case with the court, or (3) in 
any case in which the proceedings are commenced after January 
1, 1966.
    [(e) In section 620(f), relating to prohibitions on 
furnishing assistance to Communist countries, immediately after 
``Union of Soviet Socialist Republics'' insert the following: 
``(including its captive constituent republics)''.
    [(f) Amend section 620(k) by striking out ``1964'' each 
place it appears and substituting ``1965'' in each such place.
    [(g) In section 620(m), relating to prohibitions on 
furnishing assistance to Cuba and certain other countries, 
after ``during'' insert ``each and also strike out ``1964'' and 
``$1,000,000'' and substitute for the latter ``$500,000''.

                 [Chapter 2--Administrative Provisions

    [Sec. 302. Chapter 2 of part III of the Foreign Assistance 
Act of 1961, as amended, which relates to administrative 
provisions, is amended as follows:
    [(a) Amend section 625, which relates to employment of 
personnel, as follows:
    [(1) In subsection (d)(2) in the third proviso strike out 
``more than thirty persons in the aggregate'' and substitute 
``the assignment to such duty of more than twenty persons at 
any one time''.
    [(2) Add the following new subsection (j):
    [``(j) The President may appoint or assign a United States 
citizen to be representative of the United States to the Inter-
American Committee on the Alliance for Progress and, in his 
discretion, may terminate such appointment or assignment, 
notwithstanding any other provision of law. Such person may be 
compensated at a rate not to exceed that authorized for a chief 
of mission, class 2, within the meaning of the Foreign Service 
Act of 1946, as amended.''
    [(b) Amend section 626, which relates to experts, 
consultants and retired officers, as follows:
    [(1) Subsection (a) is amended by striking out ``$75'' and 
substituting ``$100''.
    [(2) Subsection (c) is amended by striking out the words 
``Career Compensation Act of 1949, as amended (37 U.S.C. 231 et 
seq.)'' and substituting ``section 101(3) of title 37 of the 
United States Code''.
    [(c) Amend section 637(a), which relates to administrative 
expenses, by striking out ``1964'' and ``$54,000,000'' and 
substituting ``1965'' and ``$52,000,000'', respectively.

                  [Chapter 3--Miscellaneous Provisions

    [Sec. 303. Chapter 3 of part III of the Foreign Assistance 
Act of 1961, as amended, which relates to miscellaneous 
provisions, is amended by adding at the end thereof the 
following new section:
    [``Sec. 648. Special Authorization for Use of Foreign 
Currencies.--Subject to the provisions of section 1415 of the 
Supplemental Appropriation Act, 1953, the President is 
authorized, as a demonstration of good will on the part of the 
people of the United States for the Polish and Italian people, 
to use foreign currencies accruing to the United States 
Government under this or any other Act, for assistance on such 
terms and conditions as he may specify, in the repair, 
rehabilitation, improvement, and maintenance of cemeteries in 
Italy serving as the burial place of members of the armed 
forces of Poland who died in combat in Italy during World War 
II.''

                   [PART IV--AMENDMENTS TO OTHER LAWS

    [Sec. 401. The first section of the Act entitled ``An Act 
to authorize participation by the United States in the 
Interparliamentary Union'', approved June 28, 1935 (22 U.S.C. 
276), is amended to read as follows:
``That an appropriation of $50,000 annually is authorized, 
$23,100 of which shall be for the annual contributions of the 
United States toward the maintenance of the Bureau of the 
Interparliamentary Union for the promotion of international 
arbitration; and $26,900, or so much thereof as may be 
necessary, to assist in meeting the expenses of the American 
group of the Interparliamentary Union for each fiscal year for 
which an appropriation is made, such appropriation to be 
disbursed on vouchers to be approved by the President and the 
executive secretary of the American group.''
    [Sec. 402. Section 502(b) of the Mutual Security Act of 
1954, as amended, is amended by inserting after the words 
``United States'' where they first appear in the first sentence 
thereof a comma and the following: ``which are in excess of the 
amounts reserved under section 612(a) of the Foreign Assistance 
Act of 1961, as amended, and of the requirements of the United 
States Government in payment of its obligations outside the 
United States, as such requirements may be determined from time 
to time by the President, (and any other local currencies owned 
by the United States in amounts not to exceed the equivalent of 
$50 per day per person exclusive of the actual cost of 
transportation)''.

                     [PART V--RELIGIOUS PERSECUTION

    [Sec. 501. It is the sense of the Congress that the United 
States deeply believes in the freedom of religion for all 
people and is opposed to infringement of this freedom anywhere 
in the world. The Congress condemns the persecution of any 
persons because of their religion. It is further the sense of 
Congress that all persons should be permitted the free exercise 
of religion and the pursuit of their culture.]
                              ----------                              


                     LATIN AMERICAN DEVELOPMENT ACT

 AN ACT To provide for assistance in the development of Latin America 
      and in the reconstruction of Chile, and for other purposes]

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, [That this 
Act may be cited as the ``Latin American Development Act''.

                          [statement of policy

    [Sec. 1. (a) It is the sense of the Congress that--
            [(1) the historic, economic, political, and 
        geographic relationships among the American Republics 
        are unique and of special significance and, as 
        appropriate, should be so recognized in future 
        legislation;
            [(2) although governmental forms differ among the 
        American Republics, the peoples of all the Americas are 
        dedicated to the creation and maintenance of 
        governments which will promote individual freedom;
            [(3) the interests of the American Republics are so 
        interrelated that sound social and economic progress in 
        each is of importance to all and that lack of it in any 
        American Republic may have serious repercussions in 
        others;
            [(4) for the people of Latin America to continue to 
        progress within the framework of our common heritage of 
        democratic ideals, there is a compelling need for the 
        achievement of social and economic advance adequate to 
        meet the legitimate aspirations of the individual 
        citizens of the countries of Latin America for a better 
        way of life;
            [(5) there is a need for a plan of hemispheric 
        development, open to all American Republics which 
        cooperate in such plan, based upon a strong production 
        effort, the expansion of foreign trade, the creation 
        and maintenance of internal financial stability, the 
        growth of free economic and social institutions, and 
        the development of economic cooperation, including all 
        possible steps to establish and maintain equitable 
        rates of exchange and to bring about the progressive 
        elimination of trade barriers;
            [(6) mindful of the advantages which the United 
        States has enjoyed through the existence of a large 
        domestic market with no internal trade barriers, and 
        believing that similar advantages can accrue to all 
        countries, it is the hope of the people of the United 
        States that all American Republics will jointly exert 
        sustained common efforts which will speedily achieve 
        that economic cooperation in the Western Hemisphere 
        which is essential for lasting peace and prosperity; 
        and
            [(7) accordingly, it is declared to be the policy 
        of the people of the United States to sustain and 
        strengthen principles of individual liberty, free 
        institutions, private enterprise, and genuine 
        independence in the Western Hemisphere through 
        cooperation with all American Republics which 
        participate in a joint development program based upon 
        self-help and mutual efforts.
    [(b) In order to carry forward the above policy, the 
Congress hereby--
            [(1) urges the President through our constitutional 
        processes to develop cooperative programs on a 
        bilateral or multilateral basis which will set forth 
        specific plans of action designed to foster economic 
        progress and improvements in the welfare and level of 
        living of all the peoples of the American Republics on 
        the basis of joint aid, mutual effort, and common 
        sacrifice;
            [(2) proposes the development of workable 
        procedures to expand hemispheric trade and to moderate 
        extreme price fluctuations in commodities which are of 
        exceptional importance in the economies of the American 
        Republics, and encourages the development of regional 
        economic cooperation among the American Republics;
            [(3) supports the development of a more accurate 
        and sympathetic understanding among the peoples of the 
        American Republics through a greater interchange of 
        persons, ideas, techniques, and educational, 
        scientific, and cultural achievements;
            [(4) supports the strengthening of free democratic 
        trade unions to raise standards of living through 
        improved management-labor relations;
            [(5) favors the progressive development of common 
        standards with respect to the rights and the 
        responsibilities of private investment with flows 
        across national boundaries within the Western 
        Hemisphere;
            [(6) supports the consolidation of the public 
        institutions and agencies of inter-American 
        cooperation, insofar as feasible within the structure 
        of the Organization of American States and the 
        strengthening of the personnel resources and authority 
        of the Organization in order that it may play a role of 
        increasing importance in all aspects of hemispheric 
        cooperation; and
            [(7) declares that it is prepared to give careful 
        and sympathetic consideration to programs which the 
        President may develop for the purpose of promoting 
        these policies.

                             [authorization

    [Sec. 2. In order to carry out the purposes of section 1 of 
this Act, there is hereby authorized to be appropriated to the 
President not to exceed $680,000,000, which shall remain 
available until expended, and which the President may use, 
subject to such further legislative provisions as may be 
enacted, in addition to other funds available for such 
purposes, on such terms and conditions as he may specify: 
Provided, that none of the funds made available pursuant to 
this section shall be used to furnish assistance to any country 
in Latin America being subjected to economic or diplomatic 
sanctions by the Organization of American States. The Secretary 
of State shall keep the Committee on Foreign Relations of the 
Senate and the Committee on Foreign Affairs of the House 
currently informed about plans and programs for the utilization 
of such funds.

           [special authorization for chilean reconstruction

    [Sec. 3. There is hereby authorized to be appropriated to 
the President not to exceed $100,000,000, which shall remain 
available until expended, for use, in addition to other funds 
available for such purposes, in the reconstruction and 
rehabilitation of Chile on such terms and conditions as the 
President may specify.

                          [general provisions

    [Sec. 4. (a) Funds appropriated under sections 2 and 3 of 
this Act may be used for assistance under this Act pursuant to 
such provisions applicable to the furnishing of such assistance 
contained in any successor Act to the Mutual Security Act of 
1954, as amended, as the President determines to be necessary 
to carry out the purposes for which such funds are 
appropriated.
    [(b) Of the funds appropriated under section 2 of this Act 
not more than $800,000 shall be available only for assisting in 
transporting to and settling in Latin America selected 
immigrants from that portion of the Ryukyuan Archipelago under 
United States administration.]
                              ----------                              


                      MUTUAL SECURITY ACT OF 1959

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, [That this 
Act may be cited as the ``Mutual Security Act of 1959''.

                          [statement of policy

    [Sec. 2. Section 2 of the Mutual Security Act of 1954, as 
amended, which is a statement of policy, is amended to read as 
follows:
    [``Sec. 2. Statement of Policy.--(a) It is the sense of the 
Congress that peace in the world increasingly depends on wider 
recognition, both in principle and practice, of the dignity and 
interdependence of men; and that the survival of free 
institutions in the United States can best be assured in a 
world wide atmosphere of expanded freedom.
    [``(b) Through programs of assistance authorized by this 
Act and its predecessors, the United States has helped thwart 
Communist intimidation in many countries of the world, has 
helped Europe recover from the wounds of World War II, has 
supported defensive military preparations of nations alerted by 
Communist aggression, and has soundly begun to help peoples of 
economically underdeveloped areas to develop their resources 
and improve their living standards.
    [``(c) Programs authorized by this Act continue to serve 
the following principal purposes:
    [``(1) The Congress recognizes the basic identity of 
interest which exists between the people of the United States 
and the peoples of other lands who are striving to establish 
and develop politically independent and economically viable 
units, and to produce more goods and services, and to improve 
ways of living by methods which reflect the popular will, and 
to realize aspirations for justice, for education, and for 
dignity and respect as individual human beings, and to 
establish responsible governments which will cooperate with 
other like-minded governments. The Congress declares it to be a 
primary objective and need of the United States, and one 
consistent with its tradition and ideals, to share these 
strivings by providing assistance, with due regard for our 
other obligations, to peoples willing to work energetically 
toward these ends.
    [``(2) The Congress recognizes that the peace of the world 
and the security of the United States are endangered so long as 
international communism and the nations it controls continue by 
threat of military action, by the use of economic pressure, and 
by internal subversion, or other means to attempt to bring 
under their domination peoples now free and independent and 
continue to deny the rights of freedom and self-government to 
peoples and nations once free but now subject to such 
domination. The Congress declares it to be the policy of the 
United States to continue so long as such danger to the peace 
of the world and to the security of the United States persists, 
to make available to other free nations and peoples upon 
request assistance of such nature and in such amounts as the 
United States deems advisable compatible with its own 
stability, strength, and other obligations, and as may be 
needed and effectively used by such free nations and peoples to 
help them maintain their freedom.
    [``(d) It is the sense of the Congress that inasmuch as--
            [``(1) the United States, through mutual security 
        programs, has made substantial contributions to the 
        economic recovery and rehabilitation of the nations of 
        Western Europe; and
            [``(2) due in part to those programs, it has been 
        possible for such nations to achieve complete economic 
        recovery and to regain their military strength; and
            [``(3) certain other friendly nations of the world 
        remain in need of assistance in order that they may 
        defend themselves against aggression and contribute to 
        the security of the free world;
those nations which have been assisted in their recovery 
should, in the future, share with the United States to a 
greater extent the financial burden of providing aid to those 
countries which are still in need of assistance of the type 
provided under this act.
    [``(e) It is the sense of the Congress that assistance 
provided under this Act shall be administered so as to assist 
other peoples in their efforts to achieve self-government or 
independence under circumstances which will enable them to 
assume an equal station among the free nations of the world and 
to fulfill their responsibilities for self-government or 
independence. To this end, assistance shall be rendered where 
appropriate and feasible in such a way as to promote the 
emergence of political units which are economically viable, 
either alone or in cooperation with neighboring units.''

                    [Chapter I--Military Assistance

                          [military assistance

    [Sec. 101. Chapter I of the Mutual Security Act of 1954, as 
amended, which relates to military assistance, is amended as 
follows:
    [(a) Amend section 103(a), which relates to authorization, 
to read as follows:
    [``(a) There is hereby authorized to be appropriated to the 
President for use beginning in the fiscal year 1960 to carry 
out the purposes of this chapter not to exceed $1,400,000,000, 
which shall remain available until expended. Programs of 
military assistance subsequent to the fiscal year 1960 program 
shall be budgeted so as to come into competition for financial 
support with other activities and programs of the Department of 
Defense. There is hereby authorized to be appropriated to the 
President for the fiscal years 1961 and 1962 such sums as may 
be necessary from time to time to carry out the purposes of 
this chapter, which sums shall remain available until 
expended.''
    [(b) Amend section 105(b), which relates to conditions 
applicable to military assistance, as follows:
    [(1) Amend paragraph (4) to read as follows:
            [``(4) Military equipment and materials may be 
        furnished to the other American Republics only in 
        furtherance of missions directly relating to the common 
        defense of the Western Hemisphere which are found by 
        the President to be important to the security of the 
        United States. The President annually shall review such 
        findings and shall determine whether military 
        assistance is necessary. Internal security requirements 
        shall not, unless the President determines otherwise, 
        be the basis for military assistance programs to 
        American Republics. The aggregate amount of funds which 
        may be obligated or reserved during the fiscal year 
        1960 for furnishing military assistance to American 
        Republics shall not exceed the aggregate amount of 
        funds obligated or reserved for such purpose during the 
        fiscal year 1959.''
    [(2) Add the following new paragraph:
            [``(5) To the extent feasible and consistent with 
        the other purposes of this chapter, administrators of 
        the military assistance program shall encourage the use 
        of foreign military forces in underdeveloped countries 
        in the construction of public works and other 
        activities helpful to economic development.''

                    [Chapter II--Economic Assistance

                            [defense support

    [Sec. 201. Section 131(b) of the Mutual Security Act of 
1954, as amended, which relates to defense support, is amended 
by striking out ``1959'' and ``$810,000,000'' and substituting 
``1960'' and ``$751,000,000'', respectively.

                   [utilization of counterpart funds

    [Sec. 202. Clause (iii) of section 142(b) of the Mutual 
Security Act of 1954, as amended, which relates to utilization 
of funds in Special Accounts, is amended by inserting 
immediately before the period at the end thereof the following: 
``: Provided further, That whenever funds from such Special 
Account are used by a country to make loans, all funds received 
in repayment of such loans prior to termination of assistance 
to such country shall be reused only for such purposes as shall 
have been agreed to between the country and the Government of 
the United States''.

                         [development loan fund

    [Sec. 203. Title II of chapter II of the Mutual Security 
Act of 1954, as amended, which relates to the Development Loan 
Fund, is amended as follows:
    [(a) Amend section 202(b), which relates to general 
authority, as follows:
    [(1) Insert the following sentence immediately after the 
second sentence: ``The Fund in its operations shall recognize 
that development loan assistance will be most effective in 
those countries which show a responsiveness to the vital long-
term economic, political, and social concerns of their people, 
demonstrate a clear willingness to take effective self-help 
measures, and effectively demonstrate that such assistance is 
consistent with, and makes a contribution to, workable long-
term economic development objectives.''
    [(2) In the next to last sentence, immediately before the 
period at the end thereof, insert the following: ``nor shall 
the fractional reserve maintained by the Development Loan Fund 
for any guaranty made pursuant to this section be less in any 
case than 50 per centum of the contractual liability of the 
Development Loan Fund under such guaranty, and the total 
contractual liability of the Development Loan Fund under all of 
such guaranties shall not, at any one time, exceed 
$100,000,000''.
    [(b) Amend section 203, which relates to capitalization, to 
read as follows:
    [Sec. 203. Capitalization.--There is hereby authorized to 
be appropriated to the President at any time after enactment of 
the Mutual Security Act of 1959 without fiscal year limitation 
for advances to the Fund after June 30, 1959, not to exceed 
$1,800,000,000 of which not to exceed $700,000,000 may be 
advanced prior to July 1, 1960, and not to exceed an additional 
$1,100,000,000 may be advanced prior to July 1, 1961.''
    [(c) In section 204(b), which relates to fiscal provisions, 
strike out ``(a)'' in the second sentence.
    [(d) Amend section 205, which relates to management, 
powers, and authorities, as follows:
    [(1) In subsection (b), strike out ``three'' in the second 
sentence and substitute ``four''.
    [(2) In subsection (c), strike out the last sentence.

                         [technical cooperation

    [Sec. 204. Title III of chapter II of the Mutual Security 
Act of 1954, as amended, which relates to technical 
cooperation, is amended as follows:
    [(a) In section 304, which relates to authorization, strike 
out ``$150,000,000'' and ``1959'' and substitute 
``$179,500,000'' and ``1960'', respectively.
    [(b) Amend section 306, which relates to multilateral 
technical cooperation and related programs, as follows:
    [(1) In subsection (a), which relates to contributions to 
the United Nations Expanded Program of Technical Assistance and 
related fund, strike out ``$20,000,000'' and ``1959'' and 
substitute ``$30,000,000'' and ``1960'', respectively, and 
immediately after ``for such purpose'' the last time it appears 
insert ``(including assessed and audited local costs)''.
    [(2) In subsection (b), which relates to contributions to 
the technical cooperation program of the Organization of 
American States, strike out ``1959'' and substitute ``1960''.
    [(c) In section 308, which relates to the International 
Development Advisory Board, insert ``or officers'' after 
``officer'' in the first sentence and strike out ``to 
administer this title'' in that sentence.

                 [special assistance and other programs

    [Sec. 205. Title IV of chapter II of the Mutual Security 
Act of 1954, as amended, which relates to special assistance 
and other programs, as amended as follows:
    [(a) Amend section 400, which relates to special 
assistance, as follows:
    [(1) In subsection (a), which relates to authorization, 
strike out ``1959'' and ``$202,500,000'' and substitute 
``1960'' and ``$247,500,000'', respectively.
    [(2) In subsection (c), which relates to assistance to 
American-sponsored schools and libraries abroad, strike out 
``$10,000,000'' and substitute ``$20,000,000'', and in the last 
sentence of such subsection strike out ``for the purposes of 
this subsection'' and insert in lieu thereof the following: 
``and notwithstanding the provisions of Public Law 213, Eighty-
second Congress, the President is authorized to utilize foreign 
currencies accruing to the United States under this or any 
other Act, for the purposes of this subsection and for 
hospitals abroad designed to serve as centers for medical 
treatment, education and research, founded or sponsored by 
citizens of the United States''.
    [(b) Insert after section 400 the following new section:
    [``Sec. 401. United Nations Emergency Force.--The Congress 
of the United States, recognizing the important contribution of 
the United Nations Emergency Force to international peace and 
security, declares it to be the policy of the United States and 
the purpose of this section to support the United Nations 
Emergency Force. The President is hereby authorized to use 
during the fiscal year 1960 funds made available pursuant to 
section 400(a) of this Act for contributions on a voluntary 
basis to the budget of the United Nations Emergency Force.''
    [(c) In section 402, which relates to earmarking of funds, 
strike our ``1959'' in the first sentence and substitute 
``1960''; in the same sentence, after the words ``foreign 
currencies'' insert the words ``or the grant'', and at the end 
of the section, add the following new sentences: ``Surplus food 
commodities of products thereof made available for transfer 
under this Act (or any other Act) as a grant or as a sale for 
foreign currencies may also be made available to the maximum 
extent practicable to eligible domestic recipients pursuant to 
section 416 of the Agricultural Act of 1949, as amended (7 
U.S.C. 1431), or to needy persons within the United States 
pursuant to clause (2) of section 32 of the Act of August 24, 
1935, as amended (7 U.S.C. 612c). Section 416 of the 
Agricultural Act of 1949, as amended (7 U.S.C. 1431), is 
amended by inserting `whether in private stocks or' after 
`commodities' the first time that word appears.''
    [(d) In section 403, which relates to responsibilities in 
Germany, strike out ``1959'' and ``$8,200,000'' in the first 
sentence and substitute ``1960'' and ``$7,500,000'', 
respectively.
    [(e) Amend section 405, which relates to migrants, 
refugees, and escapees, as follows:
    [(1) In subsection (c), strike out ``1959'' and 
``$1,200,000'' and substitute ``1960'' and ``$1,100,000'', 
respectively.
    [(2) In subsection (d), strike out ``1959'' and 
``$8,600,000'' and substitute ``1960'' and ``$5,200,000'', 
respectively.
    [(f) In section 406, which related to children's welfare, 
strike out ``$11,000,000'' and ``1959'' and substitute 
``$12,000,000'' and ``1960'', respectively.
    [(g) In section 407, which relates to Palestine refugees in 
the Near East, strike out ``1959'' in the first sentence and 
substitute ``1960'', and in the proviso in the first sentence, 
strike out ``15 per centum'' and substitute ``10 per centum''.
    [(h) In section 408(c), which relates to the North Atlantic 
Treaty Organization, strike out ``four'' and ``substitute 
``five''.
    [(i) In section 409(c), which relates to ocean freight 
charges, strike out ``1959'' and ``$2,100,000'' and substitute 
``1960'' and ``$2,300,000'', respectively.
    [(j) Section 410, which relates to Control Act expenses, is 
repealed.
    [(k) Amend section 411, which relates to administrative and 
other expenses, as follows:
    [(1) In subsection (b), strike out ``1959'' and 
``$33,000,000'' and substitute ``1960'' and ``$39,500,000'', 
respectively.
    [(2) In subsection (c), strike out ``, not to exceed 
$7,000,000 in any fiscal year,''; and insert before the period 
``, and for expenses of carrying out the objectives of the 
Mutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611): 
Provided, That, in addition, funds made available for carrying 
out chapter I of this Act shall be available for carrying out 
the objectives of the Mutual Defense Assistance Control Act of 
1951 in such amounts as the President may direct''.
    [(l) After section 411, insert a new section as follows:
    [``Sec. 412. President's Special Education and Training 
Fund.--Of the funds appropriated pursuant to this Act for use 
beginning in each of the fiscal years 1960 through 1964, 
$10,000,000 for each such year shall be available only as 
follows:
    [``(a) $5,000,000 shall be available until expended only 
for financing studies, research, instruction, and other 
educational activities of citizens of underdeveloped countries 
in educational institutions in the United States Puerto Rico, 
and Virgin Islands. Such financing may include payment for 
transportation, tuition, maintenance and other expenses 
incident to scholastic activities. The President may employ 
such funds to augment programs of this character authorized by 
section 32(b)(2) of the Surplus Property Act of 1944, as 
amended, and by the United States Information and Educational 
Exchange Act of 1948, as amended, and he may consolidate such 
portions of such $5,000,000 as he may deem appropriate with 
appropriations made to carry out these two Act.
    [``(b) $5,000,000 shall be available until expended only 
for the training of people of underdeveloped countries in 
skills which will contribute to economic development. Such 
training shall be carried out in accordance with the policies 
set forth in title III of chapter II, relating to technical 
cooperation, and such $5,000,000 may be consolidated with 
appropriations made for carrying out title III of chapter II.''
    [(m) Amend section 413, which relates to encouragement of 
free enterprise and private participation, as follows:
    [(1) In subparagraph (b)(4)(A), strike out ``any of the 
purposes of this Act'' and substitute ``the development of the 
economic resources and productive capacities of economically 
underdeveloped areas or, in the case of guaranties issued prior 
to January 1, 1960, on the basis of applications submitted 
prior to July 1, 1959, any of the purposes of this Act''.
    [(2) In subparagraph (b)(4)(F), strike out ``$500,000,000'' 
and substitute ``$1,000,000,000''.
    [(3) In subparagraph (b)(4)(G), strike out ``achieving any 
of the purposes of this Act'' and substitute ``furthering the 
development of the economic resources and productive capacities 
of economically underdeveloped areas or, in the case of 
guaranties issued prior to January 1, 1960, on the basis of 
applications submitted prior to July 1, 1959, any of the 
purposes of this Act''.
    [(4) In subsection (c), delete the words ``a study'' 
following the words ``shall conduct'' and insert in lieu 
thereof ``annual studies to keep the data up to date''; insert 
immediately before the period at the end of the first sentence 
the following: ``, and to the net position of the United States 
in its balance of trade with the rest of the world''; and in 
the final sentence delete the word ``study'' following ``such'' 
and insert in lieu thereof ``studies''.
    [(5) Add the following new subsection:
    [``(d) Under the direction of the President, the Department 
of State and such other agencies of the Government as the 
President shall deem appropriate shall conduct a study of 
methods by which the United States and other nations, including 
those which are parties to regional agreements for economic 
cooperation to which the United States is a party, or any of 
them, might best together formulate and effectuate programs of 
assistance to strengthen the economies of free nations so as to 
advance the principal purposes of this Act, as stated in 
section 2 thereof.''
    [(n) In section 419(a), which relates to atoms for peace, 
strike out ``1959'' and ``$5,500,000'' in the second sentence 
and substitute ``1960'' and ``$6,500,000'', respectively.

                     [Chapter III--Contingency Fund

    [Sec. 301. Section 451(b) of the Mutual Security Act of 
1954, as amended, which relates to the President's special 
authority and contingency fund, is amended by striking out 
``1959'' in the first sentence and substituting ``1960''.

           [Chapter IV--General and Administrative Provisions

    [Sec. 401. Chapter IV of the Mutual Security Act of 1954, 
as amended, which relates to general and administrative 
provisions, is amended as follows:
    [(a) In section 503, which relates to termination of 
assistance, insert ``(a)'' immediately after ``Termination of 
Assistance.--'', and add at the end thereof the following:
    [``(b) In any case in which the President determines that a 
nation has hereafter nationalized or expropriated the property 
of any person as defined in section 413(b) and has failed 
within six months of such nationalization or expropriation to 
take steps determined by the President to be appropriate to 
discharge its obligations under international law toward such 
person, the President shall, unless he determines it to be 
inconsistent with the national interest, suspend assistance 
under this Act to such nation until he is satisfied that 
appropriate steps are being taken.
    [``(c) The President shall include in his recommendations 
to the Congress for the fiscal year 1961 programs under this 
Act a specific plan for each country receiving bilateral grant 
assistance in the categories of defense support or special 
assistance whereby wherever practicable, such grant assistance 
shall be progressively reduced and terminated.''
    [(b) In section 504, which relates to small businesses, add 
the following new subsection:
    [``(d) Of the funds appropriated pursuant to section 451(b) 
of this Act, the President is authorized to utilize not to 
exceed $2,500,000 for the fiscal year 1960 to make available to 
foreign small business concerns in underdeveloped countries, or 
to foreign government organizations established for the purpose 
of helping such concerns in underdeveloped countries, on such 
terms and conditions as he may determine, machine tools, 
industrial equipment and other equipment owned by agencies of 
the United States Government.''
    [(c) In section 505(b), which relates to loan assistance 
and sales, strike out the third sentence and substitute the 
following: ``United States dollars received in repayment of 
principal and payment of interest on any loan made under this 
section shall be deposited in miscellaneous receipts of the 
Treasury. Foreign currencies received in repayment of principal 
and payment of interest on any such loan which are in excess of 
the requirements as determined from time to time by the 
Secretary of State for purposes authorized in section 32(b)(2) 
of the Surplus Property Act of 1944, as amended (50 App. U.S.C. 
1641(b), may be sold by the Secretary of the Treasury to United 
States Government agencies for payment of their obligations 
abroad and the United States dollars received as reimbursement 
shall also be deposited into miscellaneous receipts of the 
Treasury. Foreign currencies so received which are in excess of 
the requirements of the United States in the payment of its 
obligations abroad, as such requirements may be determined from 
time to time by the President, shall be credited to and be 
available for the authorized purposes of the Development Loan 
Fund in such amounts as may be specified from time to time in 
appropriation Acts.''
    [(d) In section 510, which relates to purchase of 
commodities, delete the comma following the words ``industrial 
mobilization base'' in the third sentence and insert the 
following: ``or to the net position of the United States in its 
balance of trade with the rest of the world,''.
    [(e) In section 517, which relates to completion of plans 
and cost estimates, delete the words ``title I or'' in the 
first sentence, and insert ``title I, II, or'', and add at the 
end of such section the following: ``To the maximum extent 
practicable, all contracts for construction outside the United 
States made in connection with any agreement or grant subject 
to this section, except any agreement for assistance authorized 
under title II of chapter II, shall be made on a competitive 
basis.''
    [(f) Amend section 523, which relates to coordination with 
foreign policy, as follows:
    [(1) In subsection (b), add the following new sentence: 
``The chief of the diplomatic mission shall make sure that 
recommendations of such representatives pertaining to military 
assistance are coordinated with political and economic 
considerations, and his comments shall accompany such 
recommendations if he so desires.''
    [(2) Amend subsection (c) to read as follows:
    [``(c) Under the direction of the President, the Secretary 
of State shall be responsible for the continuous supervision 
and general direction of the assistance programs authorized by 
this Act, including but not limited to determining whether 
there shall be a military assistance program for a country and 
the value thereof, to the end that such programs are 
effectively integrated both at home and abroad and the foreign 
policy of the United States is best served thereby.''
    [(g) In section 527(b), which relates to employment of 
personnel, strike out ``sixty'' and ``thirty-five'' in the 
first sentence and substitute ``seventy'' and ``forty-five'', 
respectively, and add the following new sentence at the end of 
such section: ``One of the offices established by section 1(d) 
of Reorganization Plan Numbered 7 of 1953 may notwithstanding 
the provisions of any other law be compensated at a rate not in 
excess of $20,000 per annum.''
    [(h) Insert immediately after section 533 the following new 
section:
    [``Sec. 533A. Inspector General and Comptroller.--(a) There 
is hereby established in the Department of State an office to 
be known as the ``Office of the Inspector General and 
Comptroller'', which shall be headed by an officer designated 
as the ``Inspector General and Comptroller'', whose salary 
shall be fixed at the annual rate of $19,000, and who shall be 
appointed by the Secretary of State and be responsible to an 
Under Secretary of State designated for such purpose by the 
Secretary of State. In addition, there shall be a Deputy 
Inspector General and Comptroller, whose salary shall not 
exceed the maximum rate provided under the General Schedule of 
the Classification Act of 1949, as amended, and such other 
personnel as may be required to carry out the functions vested 
in the Inspector General and Comptroller by or pursuant to this 
section.
    [``(b) There are hereby transferred to the Inspector 
General and Comptroller all functions, powers, and duties of 
the Office of Evaluation of the International Cooperation 
Administration, and so much of the functions, powers, and 
duties of the Office of Personnel Security and Integrity as 
relate to investigations of improper activities in connection 
with programs under the International Cooperation 
Administration.
    [``(c) The Inspector General and Comptroller shall have the 
following duties, in addition to those duties transferred to 
him under subsection (b) of this section:
            [``(1) Establishing or reviewing and approving a 
        system of financial controls over programs of 
        assistance authorized by this Act to insure compliance 
        with applicable laws and regulations;
            [``(2) Advising and consulting with the Secretary 
        of Defense or his delegate with respect to the 
        controls, standards, and procedures established or 
        approved under this section insofar as such controls, 
        standards, and procedures relate to assistance 
        furnished under chapter I of this Act;
            [``(3) Establishing or reviewing and approving 
        policies and standards providing for extensive internal 
        audits of programs of assistance authorized by this 
        Act;
            [``(4) Reviewing and approving internal audit 
        programs under this section, and coordinating such 
        programs with the appropriate officials of other 
        Government departments in order to insure maximum audit 
        coverage and to avoid duplication of effort;
            [``(5) Reviewing audit findings and recommendations 
        of operating agencies and the action taken thereon, and 
        making recommendations with respect thereto to the 
        Under Secretary of State and other appropriate 
        officials;
            [``(6) Conducting or requiring the conduct of such 
        special audits as in his judgment may be required in 
        individual cases, and of inspections with respect to 
        end-item use in foreign countries;
            [``(7) Establishing or reviewing and approving a 
        system of financial and statistical reporting with 
        respect to all programs of assistance authorized by 
        this Act;
            [``(8) Advising the Under Secretary of State and 
        other appropriate officials on fiscal and budgetary 
        aspects of proposed programs of assistance authorized 
        by this Act;
            [``(9) Designing the form and prescribing the 
        financial and statistical content of the annual program 
        presentation to the Congress;
            [``(10) Coordinating and cooperating with the 
        General Accounting Office in carrying out his duties, 
        to the extent that such duties are within areas of 
        responsibility of the General Accounting Office; and
            [``(11) Carrying out such other duties as may be 
        vested in him by the Under Secretary of State.
    [``(d) Expenses of the Office of the Inspector General and 
Comptroller with respect to programs under this Act shall be 
charged to the appropriations made to carry out such programs: 
Provided, That all documents, papers, communications, audits, 
reviews, findings, recommendations, reports, and other material 
which relate to the operation or activities of the Office of 
Inspector General and Comptroller shall be furnished to the 
General Accounting Office and to any committee of the Congress, 
or any duly authorized subcommittee thereof, charged with 
considering legislation to appropriation for, or expenditures 
of, such Office, upon request of the General Accounting Office 
or such committee or subcommittee as the case may be.''
    [(i) Amend section 534, which relates to reports to the 
Congress, by inserting ``(a)'' immediately after ``Reports.--'' 
and by adding at the end thereof the following:
    [``(b) All documents, papers, communications, audits, 
reviews, findings, recommendations, reports, and other material 
which relate to the operation or activities of the 
International Cooperation Administration shall be furnished to 
the General Accounting Office and to any committee of the 
Congress, or any duly authorized subcommittee thereof, charged 
with considering legislation or appropriation for, or 
expenditures of, such Administration, upon request of the 
General Accounting Office or such committee or subcommittee as 
the case may be.''
    [(j) Amend section 537, which relates to provisions on uses 
of funds, as follows:
    [(1) In paragraph (5) of subsection (a), strike out 
``$3,300'' and substitute ``$3,500''.
    [(2) In subsection (c), strike out ``$26,000,000'' and 
substitute ``$27,750,000''.
    [(3) Amend subsection (f) to read as follows:
    [``(f) During the annual presentation to the Congress of 
requests for authorizations and appropriations under this Act, 
there shall be submitted a detailed report on the assistance to 
be furnished, country-by-country, under title I of chapter II, 
and under section 400(a), of this Act. The report with respect 
to each country shall contain a clear and detailed explanation 
of the proposed level of aid for such country, and shall 
include a listing of all significant factors considered, and 
the methods used, in determining the level of aid for such 
country; the reason for including each such factor and an 
explanation of the manner in which each of such factors is 
related to the specific dollar figure which constitutes the 
proposed level of aid for each such country. In addition, with 
respect to assistance proposed to be furnished under title I of 
chapter II of this Act, the report shall contain a clear and 
detailed explanation on a country-by-country basis of the 
determination of the particular level of forces to be supported 
by the proposed request for authorization and appropriation for 
military assistance, the factors considered and methods used in 
arriving at each country determination, and where the level of 
forces supported by military assistance differs from the total 
level of forces maintained in any such country, an explanation, 
in detail, of the reason for the difference in such level of 
forces.''
    [(k) In section 543(d), which relates to saving provisions, 
strike out the words between ``repealed'' and ``shall'' in the 
first sentence and substitute ``subsequent to the time such 
funds are appropriated''; insert ``or subsequent Acts'' after 
``1957'' both times it appears in the second sentence; and 
strike out the last sentence.
    [(l) Section 549, which related to special provisions on 
availability of funds, is repealed.
    [(m) After section 549 add the following new sections:
    [Sec. 550. Information Policy.--The President shall, in the 
reports required by section 534, or in response to requests 
from Members of the Congress or inquiries from the public, make 
public all information concerning the mutual security program 
not deemed by him to be incompatible with the security of the 
United States.
    [Sec. 551. Limitation on the Use of the President's Special 
Authority.--The authority contained in sections 403, 451, and 
501 of this Act shall not be used to augment appropriations 
made pursuant to sections 103(b), 408, 411(b), and 411(c) or 
used otherwise to finance activities which normally would be 
financed from appropriations for administrative expenses.''

 [Chapter V--International Cooperation in Health; Colombo Plan Council 
                       for Technical Cooperation

            [colombo plan council for technical cooperation

    [Sec. 502. To enable the United States to maintain 
membership in the Colombo Plan Council for Technical 
Cooperation, there is hereby authorized to be appropriated from 
time to time to the Department of State such sums as may be 
necessary for the payment by the United States of its share of 
the expenses of the Colombo Plan Council for Technical 
Cooperation.

  [Chapter VII--Amendments to Other Laws and Miscellaneous Provisions

                       [amendments to other laws

    [Sec. 701. (a) The Defense Base Act, as amended (42 U.S.C. 
1651), is further amended by inserting in subsection (e) of the 
first section, between ``the approval of this Act,'' and ``and 
contracting officers'' in the first sentence, the following: 
``and the liability under this Act of a contractor, 
subcontractor, or subordinate contractor engaged in performance 
of contracts, subcontracts, or subordinate contracts specified 
in subparagraph (5), subdivision (a) of this section, and the 
conditions set forth therein, shall hereafter be applicable to 
the remaining terms of such contracts, subcontracts, and 
subordinate contracts entered into prior to June 30, 1958, but 
not complete on the date of the enactment of the Mutual 
Security Act of 1959,''.
    [(b) Section 522 of the Foreign Service Act of 1946, as 
amended (60 Stat. 1009, 22 U.S.C. 922), is amended by striking 
out the word ``and'' at the end of subparagraph (1), by 
striking out the period at the end of subparagraph (2) and 
substituting a semicolon and the word ``and'', and by adding at 
the end thereof a new subparagraph (3) which shall read as 
follows:
            [``(3) extend the appointment or assignment of any 
        Reserve officer, or continue the services of any such 
        Reserve officer by reappointment without regard to the 
        provisions of section 527 of this Act, for not more 
        than five additional years if the Secretary deems it to 
        be in the public interest to continue such officer in 
        the Service, except that the assignment of any Reserve 
        officer under paragraph (2) above may not be extended 
        under the provisions of this paragraph without the 
        consent of the head of the agency concerned.''
    [(c) Section 1011(a), of the United States Information and 
Educational Exchange Act of 1948, as amended (22 U.S.C. 1442), 
is amended by inserting before the period at the end thereof a 
colon and the following: ``Provided, That the purpose of making 
informational media guaranties shall be the achievement of the 
foreign policy objectives of the United States, including the 
objective mentioned in sections 413(b)(4)(A) and 413(b)(4)(G) 
of the Mutual Security Act of 1954, as amended''.
    [(d) Section 104(k) of Public Law 480, Eighty-third 
Congress (68 Stat. 454), as amended, is further amended by 
inserting ``research'' immediately after ``conduct'', and by 
substituting for the phrase ``, but no foreign currencies shall 
be used for the purposes of this subsection (k) unless specific 
appropriations be made therefor;'' the following: ``: Provided, 
That foreign currencies shall be available for the purposes of 
this subsection (in addition to funds otherwise made available 
for such purposes) only in such amounts as may be specified 
from time to time in appropriation Acts;''.]
                              ----------                              


                       MUTUAL SECURITY ACT, 1954

          * * * * * * *
    [Sec. 402. Earmarking of Funds.--Of the funds authorized to 
be made available in the fiscal year 1961 pursuant to this Act 
(other than funds made available pursuant to title II), not 
less than $175,000,000 shall be used to finance the export and 
sale for foreign currencies or the grant of surplus 
agricultural commodities or products thereof produced in the 
United States, in addition to surplus agricultural commodities 
or products transferred pursuant to the Agricultural Trade 
Development and Assistance Act of 1954, and in accordance with 
the standards as to pricing and the use of private trade 
channels expressed in section 101 of said Act. Foreign currency 
proceeds accruing from such sales shall be used for the 
purposes of this Act and with particular emphasis on the 
purposes of section 104 of the Agricultural Trade Development 
and Assistance Act of 1954 which are in harmony with the 
purposes of this Act. Notwithstanding section 1415 of the 
Supplemental Appropriation Act of 1953, or any other provision 
of law, the President may use or enter into agreements with 
friendly nations or organizations of nations to use for such 
purposes the foreign currencies which accrue to the United 
States under this section. Surplus food commodities or products 
thereof made available for transfer under this Act (or any 
other Act) as a grant or as a sale for foreign currencies may 
also be made available to the maximum extent practicable to 
eligible domestic recipients pursuant to section 416 of the 
Agricultural Act of 1949, as amended (7 U.S.C. 1431), or to 
needy persons within the United States pursuant to clause (2) 
of section 32 of the Act of August 24, 1935, as amended (7 
U.S.C. 612c). Section 416 of the Agricultural Act of 1949, as 
amended (7 U.S.C. 1431), is amended by inserting ``whether in 
private stocks or'' after ``commodities'' the first time that 
word appears.]
          * * * * * * *
    [Sec. 417. Irish Counterpart.--Pursuant to section 
115(b)(6) of the Economic Cooperation Act of 1948, as amended, 
the disposition within Ireland of the unencumbered balance, in 
the amount of approximately 6,000,000 Irish pounds, of the 
special account of Irish funds established under article IV of 
the Economic Cooperation Agreement between the United States of 
America and Ireland, dated June 28, 1948, for the purposes of--
            [(1) scholarship exchange between the United States 
        and Ireland;
            [(2) other programs and projects (including the 
        establishment of an Agricultural Institute) to improve 
        and develop the agricultural production and marketing 
        potential of Ireland and to increase the production and 
        efficiency of Irish industry; and
            [(3) development programs and projects in aid of 
        the foregoing objectives, is hereby approved, as 
        provided in the agreement between the Government of the 
        United States of America and the Government of Ireland, 
        dated June 17, 1954.]
          * * * * * * *
                              ----------                              


SECTION 109 OF THE DEPARTMENT OF STATE AUTHORIZATION ACT, FISCAL YEARS 
                             1982 AND 1983

   [restriction on contributions to the united nations educational, 
                  scientific and cultural organization

    [Sec. 109. (a) None of the funds authorized to be 
appropriated by paragraph (2) of section 102 of this Act or by 
any other Act for ``International Organizations and 
Conferences'' may be used for payment by the United States of 
its contribution toward the assessed budget of the United 
Nations Educational, Scientific and Cultural Organization if 
that organization implements any policy or procedure the effect 
of which is to license journalists or their publications, to 
censor or otherwise restrict the free flow of information 
within or among countries, or to impose mandatory codes of 
journalistic practice or ethics.
    [(b) Not later than February 1 of each year, the Secretary 
of State shall report to the Congress with respect to whether 
the United Nations Educational, Scientific and Cultural 
Organization has taken any action described in subsection (a) 
of this section.]
                              ----------                              


   DEPARTMENT OF STATE AUTHORIZATION ACT, FISCAL YEARS 1984 AND 1985

          * * * * * * *

                   TITLE X--MISCELLANEOUS PROVISIONS

          * * * * * * *

             [TERMINATION OF ASSISTANCE PROGRAMS FOR SYRIA

    [Sec. 1004. (a) After the enactment of this section, funds 
available to the Agency for International Development may not 
be used for any payment or reimbursement of any kind to the 
Government of Syria or for the delivery of any goods or 
services of any kind to the Government of Syria.
    [(b) The Administrator of the Agency for International 
Development shall deobligate all funds which have been 
obligated for Syria under the Foreign Assistance Act of 1961 
prior to the enactment of this section, except that--
            [(1) such funds may continue to be used to finance 
        the training or studies outside of Syria of students 
        whose course of study began before the enactment of 
        this section;
            [(2) the Administrator may adopt as a contract of 
        the United States Government any contract with a United 
        States or third-country contractor which would 
        otherwise be terminated pursuant to this subsection, 
        and may assume in whole or in part any liabilities 
        arising under such contract, except that the authority 
        provided by this paragraph may be exercised only to the 
        extent that budget authority is available to meet the 
        obligations of the United States under such contracts; 
        and
            [(3) amounts certified pursuant to section 1311 of 
        the Supplemental Appropriation Act, 1955, as having 
        been obligated for Syria under chapter 4 of part II of 
        the Foreign Assistance Act of 1961 shall continue to be 
        available until expended to meet necessary expenses 
        arising from the termination of assistance programs for 
        Syria pursuant to this subsection.]

   prohibition on certain assistance to the khmer rouge in kampuchea

    Sec. 1005. [(a) Notwithstanding any other provision of law, 
none of the funds authorized to be appropriated by this Act or 
any other Act may be obligated or expended for the purpose or 
with the effect of promoting, sustaining, or augmenting, 
directly or indirectly, the capacity of the Khmer Rouge or any 
of its members to conduct military or paramilitary operations 
in Kampuchea or elsewhere in Indochina.]
          * * * * * * *
                              ----------                              


    FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 1992 AND 1993

          * * * * * * *

                      TITLE I--DEPARTMENT OF STATE

          * * * * * * *

         PART B--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES

[SEC. 122. ASSISTANT SECRETARY OF STATE FOR SOUTH ASIAN AFFAIRS.

    [(a) Establishment of Position.--There is established in 
the Department of State the position of Assistant Secretary of 
State for South Asian Affairs.
    [(b) Appointment.--The Assistant Secretary shall be 
appointed by the President, by and with the advice and consent 
of the Senate.
    [(d) Conforming Amendment.--
            [(2) Effective date.--The amendment made by 
        paragraph (1) shall take effect on October 1, 1991.
    [(e) Implementation.--In order to carry out this section, 
the Secretary of State shall reprogram the position of Deputy 
Assistant Secretary for South Asian Affairs.]
          * * * * * * *

                           PART D--PERSONNEL

          * * * * * * *

SEC. 151. FOREIGN NATIONAL EMPLOYEES SEPARATION PAY.

    (a) * * *
          * * * * * * *
    (e) Interest.--The Secretary of the Treasury shall deposit 
amounts in the fund in interest-bearing accounts. Any interest 
earned on such deposits may be credited to the fund without 
further appropriation.
          * * * * * * *

   TITLE II--UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL 
                                PROGRAMS

                PART A--UNITED STATES INFORMATION AGENCY

          * * * * * * *

SEC. 208. CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE BETWEEN NORTH 
                    AND SOUTH.

    (a) * * *
          * * * * * * *
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated $5,000,000 for fiscal year 1992 and 
[$10,000,000] $4,000,000 for each subsequent fiscal year to 
carry out this section. Amounts appropriated under this section 
are authorized to be available until expended.
          * * * * * * *

           PART B--BUREAU OF EDUCATIONAL AND CULTURAL AFFAIRS

          * * * * * * *

SEC. 227. LAW AND BUSINESS TRAINING PROGRAM FOR GRADUATE STUDENTS FROM 
                    THE INDEPENDENT STATES OF THE FORMER SOVIET UNION, 
                    LITHUANIA, LATVIA, AND ESTONIA.

    (a) Statement of Purpose.--The purpose of this section is 
to establish a scholarship program designed to bring students 
from the [Soviet Union] Independent States of the Former Soviet 
Union, Lithuania, Latvia, and Estonia to the United States for 
study in the United States.
    (b) Scholarship Program Authority.--Subject to the 
availability of appropriations under subsection (d), the 
President, acting through the United States Information Agency, 
shall provide scholarships (including partial assistance) for 
study at United States institutions of higher education 
together with private and public sector internships by 
nationals of the [Soviet Union] Independent States of the 
Former Soviet Union, Lithuania, Latvia, and Estonia who have 
completed their undergraduate education and would not otherwise 
have the opportunity to study in the United States due to 
financial limitations.
    (c) Guidelines.--The scholarship program under this section 
shall be carried out in accordance with the following 
guidelines:
            (1) Consistent with section 112(b) of the Mutual 
        Educational and Cultural Exchange Act of 1961 (22 
        U.S.C. 2460(b)), all programs created pursuant to this 
        Act shall be nonpolitical and balanced, and shall be 
        administered in keeping with the highest standards of 
        academic integrity and cost-effectiveness.
            (2) The United States Information Agency shall 
        design ways to identify promising students for study in 
        the United States.
            (3) The United States Information Agency should 
        develop and strictly implement specific financial need 
        criteria. Scholarships under this Act may only be 
        provided to students who meet the financial need 
        criteria.
            (4) The program may utilize educational 
        institutions in the United States, if necessary, to 
        help participants acquire necessary skills to fully 
        participate in professional training.
            (5) Each participant shall be selected on the basis 
        of academic and leadership potential in the fields of 
        business administration, journalism and communications, 
        education administration, public policy, library and 
        information science,'' after ``business administration, 
        economics, law, or public administration. Scholarship 
        opportunities shall be limited to fields that are 
        critical to economic reform and political development 
        in the [Soviet Union] Independent States of the Former 
        Soviet Union, Lithuania, Latvia, and Estonia, 
        particularly business administration, journalism and 
        communications, education administration, public 
        policy, library and information science,
          * * * * * * *
                              ----------                              


    FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 1994 and 1995

          * * * * * * *

           TITLE I--DEPARTMENT OF STATE AND RELATED AGENCIES

          * * * * * * *

                   PART B--AUTHORITIES AND ACTIVITIES

          * * * * * * *

SEC. 135. CAPITAL INVESTMENT FUND.

    (a) Establishment.--There is established within the 
Department of State a Capital Investment Fund to provide for 
the procurement and enhancement of information technology and 
other related capital investments for the Department of State 
and to ensure the efficient management, coordination, 
operation, and utilization of such resources.
          * * * * * * *
    (c) Availability.--Amounts deposited into the Fund [are 
authorized to] shall remain available until expended.
    (d) Expenditures From the Fund.--Amounts deposited in the 
Fund shall be available [for expenditure to procure capital 
equipment and information technology] for purposes of 
subsection (a).
    [(e) Reprogramming Procedures.--Funds credited to the 
Capital Investment Fund shall be treated as a reprogramming of 
funds under section 34 of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2710) and shall not be 
available for obligation or expenditure except in compliance 
with the procedures applicable to such reprogrammings.]
    (e) Reprogramming Procedures.--Funds credited to the 
Capital Investment Fund shall not be available for obligation 
or expenditure except in compliance with the procedures 
applicable to reprogrammings under section 34 of the State 
Department Basic Authorities Act of 1956 (22 U.S.C. 2710).
          * * * * * * *

SEC. 140. VISAS.

    (a) Surcharge for Processing Certain Visas.--
            (1) Notwithstanding any other provision of law, the 
        Secretary of State is authorized to charge a fee or 
        surcharge for processing machine readable nonimmigrant 
        visas and machine readable combined border crossing 
        identification cards and nonimmigrant visas.
            [(2) Fees collected under the authority of 
        paragraph (1) shall be deposited as an offsetting 
        collection to any Department of State appropriation, to 
        recover the costs of providing consular services. Such 
        fees shall remain available for obligation until 
        expended.
            [(3) For fiscal years 1994 and 1995, fees deposited 
        under the authority of paragraph (2) may not exceed a 
        total of $107,500,000. For subsequent fiscal years, 
        fees may be collected under the authority of paragraph 
        (1) only in such amounts as shall be prescribed in 
        subsequent authorization Acts.]
            (2) Amounts collected under the authority of 
        paragraph (1) shall be deposited in a special fund of 
        the Treasury.
            (3) Subject to paragraph (5), fees deposited in the 
        special fund pursuant to paragraph (2) shall be 
        available to the extent and in such amounts as are 
        provided in advance in appropriations Acts for costs of 
        the Department of State's border security program, 
        including the costs of--
                    (A) installation and operation of the 
                machine readable visa and automated name-check 
                process;
                    (B) improving the quality and security of 
                the United States passport;
                    (C) passport and visa fraud investigations; 
                and
                    (D) the technological infrastructure to 
                support and operate the programs referred to in 
                subparagraphs (A) through (C).
            (4) Amounts deposited pursuant to paragraph (2) 
        shall remain available for obligation until expended.
            (5) For any fiscal year, any amount collected 
        pursuant to the authority of paragraph (1) that exceeds 
        $140,000,000 is authorized to be made available only if 
        a notification is submitted in compliance with the 
        procedures applicable to a reprogramming of funds under 
        section 34 of the State Department Basic Authorities 
        Act of 1956.
            [(4)] (6) The provisions of the Act of August 18, 
        1856 (Revised Statutes 1726-28; 22 U.S.C. 4212-14), 
        concerning accounting for consular fees shall not apply 
        to fees collected under this subsection.
            [(5) No fee or surcharge authorized under paragraph 
        (1) may be charged to a citizen of a country that is a 
        signatory as of the date of enactment of this Act to 
        the North American Free Trade Agreement, except that 
        the Secretary of State may charge such fee or surcharge 
        to a citizen of such a country if the Secretary 
        determines that such country charges a visa application 
        or issuance fee to citizens of the United States.]
          * * * * * * *

                PART C--DEPARTMENT OF STATE ORGANIZATION

          * * * * * * *

SEC. 161. ORGANIZATION OF THE DEPARTMENT OF STATE.

    (a) * * *
          * * * * * * *
    [(e) Office of the Coordinator for Counterterrorism.--
Notwithstanding any other provision of this section, for not 
less than one year after the date of the enactment of this Act 
there shall be in the Department of State an Office of the 
Coordinator for Counterterrorism which shall be headed by a 
Coordinator for Counterterrorism. The office shall have the 
same responsibilities and functions as the Office of the 
Coordinator for Counterterrorism at the Department of State had 
as of January 20, 1993.
    [(f) Deputy Assistant Secretary for Burdensharing.--
            [(1) Establishment.--None of the funds authorized 
        to be appropriated by this Act shall be available for 
        obligation or expenditure during fiscal year 1995 
        unless, not later than 90 days after the date of 
        enactment of this Act, the Secretary of State has 
        established within the Department of State the position 
        of Deputy Assistant Secretary for Burdensharing, the 
        incumbent of which shall be an official of 
        ambassadorial rank, appointed by the President by and 
        with the advice and consent of the Senate.
            [(2) Responsibilities.--The Deputy Assistant 
        Secretary for Burdensharing shall perform such duties 
        and exercise such authorities as the Secretary of State 
        shall prescribe, including the following:
                    [(A) The principal duty of negotiating 
                increased in-kind and financial support 
                (including increased payment of basing costs) 
                by countries allied to the United States for 
                Department of Defense military units and 
                personnel assigned to permanent duty ashore 
                outside the United States in support of the 
                security of such countries.
                    [(B) In consultation with the Department of 
                Defense, assist in negotiations with the host 
                governments for the recoupment of funds 
                associated with financial commitments from such 
                countries for paying the United States the 
                residual value of United States facilities in 
                such countries that the United States 
                relinquishes to such countries upon the 
                termination of the use of such facilities by 
                the United States.]
          * * * * * * *
                              ----------                              


               SECTION 5 OF THE INTERNATIONAL CENTER ACT

    Sec. 5. There is hereby authorized to be appropriated, 
without fiscal year limitation, not to exceed $2,200,000 to 
carrier out the purposes of section 5 of this Act: Provided, 
That such sums as may be appropriated hereunder shall be 
reimbursed to the Treasury from proceeds of the sale, exchange, 
or lease of property to foreign governments and international 
organizations as provided for in this first section of this 
Act. All proceeds received from such sales, exchanges, or 
leases shall, notwithstanding the provisions of section 3617 of 
the Revised Statutes (31 U.S.C. 484) or any other law, be paid 
into a special account with the Treasurer of the United States, 
such account to be administered by the Secretary of State for 
the purposes set out in section 5 of this Act. All sums 
remaining in such special account after completion of the 
projects authorized in section 5 shall be covered into the 
Treasury as miscellaneous receipts. The Secretary may retain 
therefrom a reserve for maintenance and security of those 
public improvements authorized by this Act which have not been 
conveyed to a government or international organization under 
the first section of this Act, and for surveys and plans 
related to development of additional areas within the Nation's 
Capital for chancery and diplomatic purposes. Amounts in the 
reserve will be available only to the extent and in amounts as 
provided in advance in appropriations Acts. Amounts in the 
reserve may be deposited in interest-bearing accounts and the 
Secretary may retain for the purposes set forth in this section 
any interest earned on such deposits without returning such 
interest to the Treasury of the United States and without 
further appropriation.
          * * * * * * *
                              ----------                              


          SECTION 9 OF THE FOREIGN SERVICE BUILDINGS ACT, 1926

    Sec. 9. (a) * * *
          * * * * * * *
    (d) Any proceeds held or deposited pursuant to this section 
may be deposited in interest bearing accounts. The Secretary of 
State may retain interest earned on such deposits for the 
purposes of this section without returning such interest to the 
Treasury of the United States and interest earned may be 
obligated and expended without further appropriation.
                              ----------                              


 SECTION 101 OF THE UNIFORMED AND OVERSEAS CITIZENS ABSENTEE VOTING ACT

SEC. 101. FEDERAL RESPONSIBILITIES.

    (a) * * *
    (b) Duties of Presidential Designee.--The Presidential 
designee shall--
            (1) * * *
          * * * * * * *
            (6) not later than the end of each year after a 
        Presidential election year, transmit to the President 
        and the Congress a report on the effectiveness of 
        assistance under this title, including a statistical 
        analysis [of voter participation] of uniformed services 
        voter participation, a general assessment of overseas 
        nonmilitary participation, and a description of State-
        Federal cooperation.
          * * * * * * *
                              ----------                              


   SECTION 2202 OF THE OMNIBUS TRADE AND COMPETITIVENESS ACT OF 1988

[SEC. 2202. COUNTRY REPORTS ON ECONOMIC POLICY AND TRADE PRACTICES.

    [The Secretary of State shall, not later than January 31 of 
each year, prepare and transmit to the Committee on Foreign 
Affairs and the Committee on Ways and Means of the House of 
Representatives, to the Committee on Foreign Relations and the 
Committee on Finance of the Senate, and to other appropriate 
committees of the Congress, a detailed report regarding the 
economic policy and trade practices of each country with which 
the United States has an economic or trade relationship. The 
Secretary may direct the appropriate officers of the Department 
of State who are serving overseas, in consultation with 
appropriate officers or employees of other departments and 
agencies of the United States, including the Department of 
Agriculture and the Department of Commerce, to coordinate the 
preparation of such information in a country as is necessary to 
prepare the report under this section. The report shall 
identify and describe, with respect to each country--
            [(1) the macroeconomic policies of the country and 
        their impact on the overall growth in demand for United 
        States exports;
            [(2) the impact of macroeconomic and other policies 
        on the exchange rate of the country and the resulting 
        impact on price competitiveness of United States 
        exports;
            [(3) any change in structural policies (including 
        tax incentives, regulations governing financial 
        institutions, production standards, and patterns of 
        industrial ownership) that may affect the country's 
        growth rate and its demand for United States exports;
            [(4) the management of the country's external debt 
        and its implications for trade with the United States;
            [(5) acts, policies, and practices that constitute 
        significant barriers to United States exports or 
        foreign direct investment in that country by United 
        States persons, as identified under section 181(a)(1) 
        of the Trade Act of 1974 (19 U.S.C. 2241(a)(1));
            [(6) acts, policies, and practices that provide 
        direct or indirect government support for exports from 
        that country, including exports by small businesses;
            [(7) the extent to which the country's laws and 
        enforcement of those laws afford adequate protection to 
        United States intellectual property, including patents, 
        trademarks, copyrights, and mask works; and
            [(8) the country's laws, enforcement of those laws, 
        and practices with respect to internationally 
        recognized worker rights (as defined in section 
        502(a)(4) of the Trade Act of 1974), the conditions of 
        worker rights in any sector which produces goods in 
        which United States capital is invested, and the extent 
        of such investment.]
                              ----------                              


 SECTION 574 OF THE FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED 
                   PROGRAMS APPROPRIATIONS ACT, 1996

              [annual report on economic and social growth

    [Sec. 574. (a) Reporting Requirement.--The President shall 
submit to the appropriate congressional committees an annual 
report providing a concise overview of the prospects for 
economic and social growth on a broad, equitable, and 
sustainable basis in the countries receiving economic 
assistance under title II of this Act. For each country, the 
report shall discuss the laws, policies and practices of that 
country that most contribute to or detract from the achievement 
of this kind of growth. The report should address relevant 
macroeconomic, microeconomic, social, legal, environmental, and 
political factors and include criteria regarding wage and price 
controls, State ownership of production and distribution, State 
control of financial institutions, trade and foreign 
investment, capital and profit repatriation, tax and private 
property protections and a country's commitment to stimulate 
education, health and human development.
    [(b) Countries.--The countries referred to in subsection 
(a) are countries--
            [(1) for which in excess of $5,000,000 has been 
        obligated during the previous fiscal year for 
        assistance under sections 103 through 106, chapters 10 
        and 11 of part I, and chapter 4 of part II of the 
        Foreign Assistance of 1961, and under the Support for 
        East European Democracy Act of 1989; or
            [(2) for which in excess of $1,000,000 has been 
        obligated during the previous fiscal year by the 
        Overseas Private Investment Corporation.
    [(c) Consultation.--The Secretary of State shall submit the 
report required by subsection (a) in consultation with the 
Secretary of the Treasury, the Administrator of the Agency for 
International Development, and the President of the Overseas 
Private Investment Corporation. The report shall be submitted 
with the annual congressional presentation for appropriations.]
                              ----------                              


    SECTION 308 OF THE CHEMICAL AND BIOLOGICAL WEAPONS AND WARFARE 
                        ELIMINATION ACT OF 1991

[SEC. 308. PRESIDENTIAL REPORTING REQUIREMENTS.

    [(a) Reports to Congress.--Not later than 90 days after the 
date of the enactment of this title, and every 12 months 
thereafter, the President shall transmit to the Congress a 
report which shall include--
            [(1) a description of the actions taken to carry 
        out this title, including the amendments made by this 
        title;
            [(2) a description of the current efforts of 
        foreign countries and subnational groups to acquire 
        equipment, materials, or technology to develop, 
        produce, or use chemical or biological weapons, 
        together with an assessment of the current and likely 
        future capabilities of such countries and groups to 
        develop, produce, stockpile, deliver, transfer, or use 
        such weapons;
            [(3) a description of--
                    [(A) the use of chemical weapons by foreign 
                countries in violation of international law,
                    [(B) the use of chemical weapons by 
                subnational groups,
                    [(C) substantial preparations by foreign 
                countries and subnational groups to do so, and
                    [(D) the development, production, 
                stockpiling, or use of biological weapons by 
                foreign countries and subnational groups; and
            [(4) a description of the extent to which foreign 
        persons or governments have knowingly and materially 
        assisted third countries or subnational groups to 
        acquire equipment, material, or technology intended to 
        develop, produce, or use chemical or biological 
        weapons.
    [(b) Protection of Classified Information.--To the extent 
practicable, reports submitted under subsection (a) or any 
other provision of this title should be based on unclassified 
information. Portions of such reports may be classified.]
                              ----------                              


 SECTION 136 OF THE FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 
                             1990 AND 1991

SEC. 136. INCREASED PARTICIPATION OF UNITED STATES CONTRACTORS IN LOCAL 
                    GUARD CONTRACTS ABROAD UNDER THE DIPLOMATIC 
                    SECURITY PROGRAM.

  (a) * * *
          * * * * * * *
  (c) Participation of United States Contractors in Local Guard 
Contracts Abroad.--With respect to local guard contracts for a 
Foreign Service building which exceed $250,000 and are entered 
into after the date of enactment of this Act, the Secretary of 
State shall--
            (1) * * *
          * * * * * * *
            [(3) in evaluating and scoring proposals for such 
        contracts, award not less than 60 percent of the total 
        points on the basis of technical factors and 
        subfactors;]
            (3) in evaluating proposals for such contracts, 
        award contracts to the technically acceptable firm 
        offering the lowest evaluated price, except that 
        proposals of United States persons and qualified United 
        States joint venture persons (as defined in subsection 
        (d)) shall be evaluated by reducing the bid price by 5 
        percent;
          * * * * * * *
            (5) ensure that United States diplomatic and 
        consular posts assist United States firms in obtaining 
        local licenses and permits; and
            (6) establish procedures to ensure that appropriate 
        measures are taken by diplomatic and consular post 
        management to assure that United States persons and 
        qualified United States joint venture persons are not 
        disadvantaged during the solicitation and bid 
        evaluation process[; and].
            [(7) give preference to United States persons and 
        qualified United States joint venture persons where 
        such persons are price competitive to the non-United 
        States persons bidding on the contract, are properly 
        licensed by the host government, and are otherwise 
        qualified to carry out all the terms of the contract.]
          * * * * * * *
                              ----------                              


          SECTION 4 OF THE INTERNATIONAL CLAIMS SETTLEMENT ACT

    Sec. 4. (a) The Commission shall have jurisdiction to 
receive, examine, adjudicate, and render final decisions with 
respect to claims of the Government of the United States and of 
nationals of the United States included within the terms of the 
Yugoslav Claims Agreement of 1948, [or] included within the 
terms of any claims agreement hereafter concluded between the 
Government of the United States and a foreign government 
(exclusive of governments against which the United States 
declared the existence of a state of war during World War II) 
similarly providing for the settlement and discharge of claims 
of the Government of the United States and of nationals of the 
United States against a foreign government, arising out of the 
nationalization or other taking of property, by the agreement 
of the Government of the United States to accept from that 
government a sum in en bloc settlement thereof, or included in 
a category of claims against a foreign government which is 
referred to the Commission by the Secretary of State. In the 
decision of claims under this title, the Commission shall apply 
the following in the following order:
            (1) The provisions of [the] any applicable claims 
        agreement as provided in this subsection.
          * * * * * * *
                              ----------                              


             DEPARTMENT OF STATE APPROPRIATION ACT OF 1937

                   international fisheries commission

          * * * * * * *
  The Secretary of State is authorized to accept reimbursement 
from corporations, firms, and individuals for the expenses of 
travel, translation, printing, special experts, and other 
[extraordinary] expenses incurred in pursuing a claim on their 
behalf against a foreign government or other foreign entity. 
Such reimbursements shall be credited to the appropriation 
account against which the expense was initially charged.
          * * * * * * *
                              ----------                              


      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                        APPROPRIATIONS ACT, 1990

          * * * * * * *

                      TITLE V--GENERAL PROVISIONS

          * * * * * * *

       establishing categories of aliens for purposes of refugee 
                             determinations

    Sec. 599D. (a) * * *
    (b) Establishment of Categories.--
            (1) * * *
          * * * * * * *
            (3) Within the number of admissions of refugees 
        allocated for for each of fiscal years 1990, 1991, and 
        1992 for refugees who are nationals of the Soviet Union 
        under section 207(a)(3) of the Immigration and 
        Nationality Act and within the number of such 
        admissions allocated for each of fiscal years 1993, 
        1994, 1995, 1996, [and 1997] 1997, 1998, and 1999 for 
        refugees who are nationals of the independent states of 
        the former Soviet Union, Estonia, Latvia, and Lithuania 
        under such section and within the number of such 
        admissions allocated for each of fiscal years 1993 and 
        1994 for refugees who are nationals of the independent 
        states of the former Soviet Union, Estonia, Latvia, and 
        Lithuania under such section, notwithstanding any other 
        provision of law, the President shall allocate one 
        thousand of such admissions for such fiscal year to 
        refugees who are within the category of aliens 
        described in paragraph (2)(B).
          * * * * * * *
    (e) Period of Application.--
            (1) Subsections (a) and (b) shall take effect on 
        the date of the enactment of this Act and shall only 
        apply to applications for refugee status submitted 
        before October 1, [1997] 1999.
            (2) Subsection (c) shall apply to decisions made 
        after the date of the enactment of this Act and before 
        October 1, [1997] 1999.
            (3) Subsection (d) shall take effect on the date of 
        the enactment of this Act and shall only apply to 
        reapplications for refugee status submitted before 
        October 1, [1997] 1999.
          * * * * * * *
    Sec. 599E. (a) In General.--The Attorney General shall 
adjust the status of an alien described in subsection (b) to 
that of an alien lawfully admitted for permanent residence if 
the alien--
    (b) Aliens Eligible for Adjustment of Status.--The benefits 
provided in subsection (a) shall only apply to an alien who--
            (1) was a national of an independent state of the 
        former Soviet Union, Estonia, Latvia, Lithuania, 
        Vietnam, Laos, or Cambodia, and
            (2) was inspected and granted parole into the 
        United States during the period beginning on August 15, 
        1988, and ending on September 30, [1997] 1999, after 
        being denied refugee status.
          * * * * * * *
                              ----------                              


      SECTION 7 OF THE INTERNATIONAL CHILD ABDUCTION REMEDIES ACT

SEC. 7. UNITED STATES CENTRAL AUTHORITY.

          * * * * * * *
    (e) Grant Authority.--The United States Central Authority 
is authorized to make grants to, or enter into contracts or 
agreements with, any individual, corporation, other Federal, 
State, or local agency, or private entity or organization in 
the United States for purposes of accomplishing its 
responsibilities under the convention and this Act.
                              ----------                              


                 REVISED STATUTES OF THE UNITED STATES

          * * * * * * *

                         T I T L E  L X V I I.

                   DIPLOMATIC AND CONSULAR OFFICERS.

                              ----------                              


          * * * * * * *

                         C H A P T E R  T W O.

                           CONSULAR OFFICERS.

          * * * * * * *
    Sec. 1689. The various provisions of thie Title which are 
expressed in terms of general application to any particular 
classes of consular officers, shall be deemed to apply as well 
to all other classes of such officers and to such other United 
States citizen employees of the Department of State as may be 
designated by the Secretary of State pursuant to such 
regulations as the Secretary may prescribe, so far as may be 
consistent with the subject matter of the same and with the 
treaties of the United States.
          * * * * * * *
    [Sec. 1726. Every consular officer shall give receipts for 
all fees collected for his official services, expressing the 
particular services for which the same were collected.
    [Sec. 1727. Every consular officer shall number all 
receipts given by him for fees received for official services, 
in the order of their dates, beginning with number one at the 
commencement of the period of his service, and on the first day 
of January in every year thereafter. He shall also register in 
a book to be kept by him for that purpose all fees so received 
by him, in the order in which they are received, specifying 
each item of service and the amount received therefor, from 
whom, and the dates when received, and if for any service 
connected with any vessel, the name thereof, and indicating 
what items and amounts are embraced in each receipt given by 
him therefor, and numbering the same according to the number of 
the receipts respectively, so that the receipts and register 
shall correspond with each other; and he shall, in such 
register, specify the name of the person for whom, and the date 
when he shall grant, issue, or verify any passport, certify and 
invoice, or perform any other official service in the entry of 
the receipt of the fees therefor, and also number each consular 
act so receipted for with the number of such receipt, and as 
shown by such register.

                    [account of fees: certification

    [Sec. 1728. Every consular officer responsible for the 
collection of fees, in rendering his account of fees received, 
shall furnish a full transcript of the register which he is 
required to keep, and certify that such transcript is an 
accurate and complete record of all fees received for the 
period shown.]
                              ----------                              


              SECTION 3492 OF TITLE 18, UNITED STATES CODE

Sec. 3492. Commission to consular officers to authenticate foreign 
                    documents

    (a) * * *
          * * * * * * *
    (c) The provisions of this section and sections 3493-3496 
of this title applicable to consular officers shall be 
applicable to diplomatic officers pursuant to such regulations 
as may be prescribed by the President. For purposes of this 
section and sections 3493 through 3496 of this title, a 
consular officer shall include any United States citizen 
employee of the Department of State designated to perform 
notarial functions pursuant to section 24 of the Act of August 
18, 1856 (Rev. Stat. 1750, 22 U.S.C. 4221).
                              ----------                              


              SECTION 115 OF TITLE 35, UNITED STATES CODE

Sec. 115. Oath of applicant

    The applicant shall make oath that he believes himself to 
be the original and first inventor of the process, machine, 
manufacture, or composition of matter, or improvement thereof, 
for which he solicits a patent; and shall state of what country 
he is a citizen. Such oath may be made before any person within 
the United States authorized by law to administer oaths, or, 
when, made in a foreign country, before any diplomatic or 
consular officer of the United States authorized to administer 
oaths, or before any officer having an official seal and 
authorized to administer oaths in the foreign country in which 
the applicant may be, whose authority is proved by certificate 
of a diplomatic or consular officer of the United States, or 
apostille of an official designated by a foreign country which, 
by treaty or convention, accords like effect to apostilles of 
designated officials in the United States, and such oath shall 
be valid if it complies with the laws of the state or country 
where made. When the application is made as provided in this 
title by a person other than the inventor, the oath may be so 
varied in form that it can be made by him. For purposes of this 
section a consular officer shall include any United States 
citizen employee of the Department of State designated to 
perform notarial functions pursuant to section 24 of the Act of 
August 18, 1856 (Rev. Stat. 1750, 22 U.S.C. 4221).
                              ----------                              


SECTION 908 OF THE INTERNATIONAL MARITIME AND PORT SECURITY ACT OF 1986

SEC. 908. TRAVEL ADVISORIES CONCERNING SECURITY AT FOREIGN PORTS.

    (a) Travel Advisory.--Upon being notified by the Secretary 
of Transportation that the Secretary has determined that a 
condition exists that threatens the safety or security of 
passengers, passenger vessels, or crew traveling to or from a 
foreign port which the Secretary of Transportation has 
determined pursuant to section 907(d) to be a port which does 
not maintain and administer effective security measures, the 
Secretary of State shall immediately issue a travel advisory 
with respect to that port. [Any travel advisory issued pursuant 
to this subsection shall be published in the Federal Register.] 
The Secretary of State shall take the necessary steps to widely 
publicize that travel advisory.
          * * * * * * *
                              ----------                              


 SECTION 9 OF THE DEPARTMENT OF STATE APPROPRIATIONS AUTHORIZATION ACT 
                                OF 1973

   [bureau of oceans and international environmental and scientific 
                                affairs

    [Sec. 9. (a) There is established within the Department of 
State a Bureau of Oceans and International Environmental and 
Scientific Affairs. There shall be an Assistant Secretary of 
State for Oceans and International Environmental and Scientific 
Affairs, appointed by the President, by and with the advice and 
consent of the Senate, who shall be the head of the Bureau and 
who shall have responsibility for matters relating to oceans, 
environmental, scientific, fisheries, wildlife, and 
conservation affairs and for such other related duties as the 
Secretary may from time to time designate.
    [(c) Paragraph (109) of section 5316 of title 5, United 
States Code, relating to the Director of International 
Scientific Affairs, Department of State, is repealed.]
                              ----------                              


               SECTION 1 OF THE ACT OF DECEMBER 23, 1995

                   AN ACT To extend au pair programs.

SECTION 1. EXTENSION OF AU PAIR PROGRAMS.

    (a) Repeal.--Section 8 of the Eisenhower Exchange 
Fellowship Act of 1990 (Public Law 101-454) is repealed.
    (b) Authority for Au Pair Programs.--The Director of the 
United States Information Agency is authorized to continue to 
administer an au pair program, operating on a world-wide 
basis[, through fiscal year 1997].
          * * * * * * *
                              ----------                              


     UNITED STATES INFORMATION AND EDUCATIONAL EXCHANGE ACT OF 1948

          * * * * * * *

                       TITLE VII--APPROPRIATIONS

                    prior authorization by congress

    Sec. 701. (a) * * *
          * * * * * * *
    (f)(1) * * *
          * * * * * * *
    [(4) This subsection shall cease to have effect after 
September 30, 1995.]
          * * * * * * *

                 TITLE VIII--ADMINISTRATIVE PROCEDURES

          * * * * * * *

                  use of english-teaching program fees

    Sec. 810. (a) Notwithstanding section 3302 of title 31, 
United States Code, or any other law or limitation of 
authority, fees received by or for the use of the United States 
Information Agency from or in connection with English-teaching 
and library services, educational advising and counseling, 
exchange visitor program services, advertising sold by the 
Voice of America, receipts from cooperating international 
organizations and from the privatization of VOA Europe, and 
Agency-produced publications, and not to exceed $100,000 of 
payments from motion picture and television programs, produced 
or conducted by or on behalf of the Agency under the authority 
of this Act or the Mutual Educational and Cultural Exchange Act 
of 1961 is authorized to be credited each fiscal year to the 
appropriate appropriation of the United States Information 
Agency to such extent as may be provided in advance in an 
appropriation Act.
          * * * * * * *
                              ----------                              


SECTION 112 OF THE MUTUAL EDUCATIONAL AND CULTURAL EXCHANGE ACT OF 1961

    Sec. 112. (a) * * *
          * * * * * * *
    (g) Working Group on United States Government Sponsored 
International Exchanges and Training.--(1) In order to carry 
out the purposes of subsection (f) and to improve the 
coordination, efficiency, and effectiveness of United States 
Government sponsored international exchanges and training, 
there is established within the United States Information 
Agency a senior-level interagency working group to be known as 
the Working Group on United States Government Sponsored 
International Exchanges and Training (hereinafter in this 
section referred to as ``the Working Group'').
    (2) For purposes of this subsection, the term ``Government 
sponsored international exchanges and training'' means the 
movement of people between countries to promote the sharing of 
ideas, to develop skills, and to foster mutual understanding 
and cooperation, financed wholly or in part, directly or 
indirectly, with United States Government funds.
    (3) The Working Group shall be composed as follows:
            (A) The Associate Director for Educational and 
        Cultural Affairs of the United States Information 
        Agency, who shall act as Chair.
            (B) A senior representative designated by the 
        Secretary of State.
            (C) A senior representative designated by the 
        Secretary of Defense.
            (D) A senior representative designated by the 
        Secretary of Education.
            (E) A senior representative designated by the 
        Attorney General.
            (F) A senior representative designated by the 
        Administrator of the Agency for International 
        Development.
            (G) Senior representatives of other departments and 
        agencies as the Chair determines to be appropriate.
    (4) Representatives of the National Security Adviser and 
the Director of the Office of Management and Budget may 
participate in the Working Group at the discretion of the 
adviser and the director, respectively.
    (5) The Working Group shall be supported by an interagency 
staff office established in the Bureau of Educational and 
Cultural Affairs of the United States Information Agency.
    (6) The Working Group shall have the following purposes and 
responsibilities:
            (A) To collect, analyze, and report data provided 
        by all United States Government departments and 
        agencies conducting international exchanges and 
        training programs.
            (B) To promote greater understanding and 
        cooperation among concerned United States Government 
        departments and agencies of common issues and 
        challenges in conducting international exchanges and 
        training programs, including through the establishment 
        of a clearinghouse for information on international 
        exchange and training activities in the governmental 
        and nongovernmental sectors.
            (C) In order to achieve the most efficient and 
        cost-effective use of Federal resources, to identify 
        administrative and programmatic duplication and overlap 
        of activities by the various United States Government 
        departments and agencies involved in Government 
        sponsored international exchange and training programs, 
        to identify how each Government sponsored international 
        exchange and training program promotes United States 
        foreign policy, and to report thereon.
            (D) Not later than 1 year after the date of the 
        enactment of the Foreign Relations Authorization Act, 
        Fiscal Years 1998 and 1999, to develop and thereafter 
        assess, annually, a coordinated and cost-effective 
        strategy for all United States Government sponsored 
        international exchange and training programs, and to 
        issue a report on such strategy. This strategy will 
        include an action plan for consolidating United States 
        Government sponsored international exchange and 
        training programs with the objective of achieving a 
        minimum 10 percent cost saving through consolidation or 
        the elimination of duplication.
            (E) Not later than 2 years after the date of the 
        enactment of the Foreign Relations Authorization Act, 
        Fiscal Years 1998 and 1999, to develop recommendations 
        on common performance measures for all United States 
        Government sponsored international exchange and 
        training programs, and to issue a report.
            (F) To conduct a survey of private sector 
        international exchange activities and develop 
        strategies for expanding public and private 
        partnerships in, and leveraging private sector support 
        for, United States Government sponsored international 
        exchange and training activities.
            (G) Not later than 6 months after the date of the 
        enactment of the Foreign Relations Authorization Act, 
        Fiscal Years 1998 and 1999, to report on the 
        feasibility of transferring funds and program 
        management for the ATLAS and/or the Mandela Fellows 
        programs in South Africa from the Agency for 
        International Development to the United States 
        Information Agency. The report shall include an 
        assessment of the capabilities of the South African 
        Fulbright Commission to manage such programs and the 
        cost advantages of consolidating such programs under 
        one entity.
    (7) All reports prepared by the Working Group shall be 
submitted to the President, through the Director of the United 
States Information Agency.
    (8) The Working Group shall meet at least on a quarterly 
basis.
    (9) All decisions of the Working Group shall be by majority 
vote of the members present and voting.
    (10) The members of the Working Group shall serve without 
additional compensation for their service on the Working Group. 
Any expenses incurred by a member of the Working Group in 
connection with service on the Working Group shall be 
compensated by that member's department or agency.
    (11) With respect to any report promulgated pursuant to 
paragraph (6), a member may submit dissenting views to be 
submitted as part of the report of the Working Group.
                              ----------                              


                   JAPAN-UNITED STATES FRIENDSHIP ACT

          * * * * * * *

                establishment of the fund; expenditures

    Sec. 3. (a) There is established in the Treasury of the 
United States a trust fund to be known as the [Japan-United 
States Friendship Trust Fund] United States-Japan Trust Fund 
(hereafter referred to as the ``Fund'').
          * * * * * * *
    (c) Amounts in the Fund may also be used to pay 
administrative expenses of the [Japan-United States Friendship 
Commission] United States-Japan Commission, established by 
section 4 of this Act, as directed by that Commission.
          * * * * * * *

  [the japan-united states friendship commission] united states-japan 
                               commission

    Sec. 4. (a) There is established a commission to be known 
as the [Japan-United States Friendship Commission] United 
States-Japan Commission (hereafter referred to as the 
``Commission''). The Commission shall be composed of--
          * * * * * * *

                       administrative provisions

    Sec. 6. In order to carry out its functions under this Act, 
the Commission is authorized to--
            (1)  * * *
          * * * * * * *
            (4) direct the Secretary of the Treasury to make 
        expenditure of the income of the Fund, any amount of 
        the contributions deposited in the Fund from 
        nonappropriated sources pursuant to paragraph (2) or 
        (3) of this section, and not to exceed 5 percent 
        annually of the principal of the total amount 
        appropriated to the Fund to carry out the purposes of 
        this Act, including the payment of Commission expenses 
        if needed[, except that any amounts expended from 
        amounts appropriated to the Fund under section 3(e)(1) 
        of this Act shall be expended in Japan or for not more 
        than 50 percent of administrative expenses in the 
        United States];
          * * * * * * *

                         management of the fund

    Sec. 7. (a)  * * *
          * * * * * * *
    (b) It shall be the duty of the Secretary of the Treasury 
(hereafter referred to as the ``Secretary'') to invest such 
portion of the Fund as is not, in the judgment of the 
Commission, required to meet current withdrawals. [Such 
investment of amounts authorized to be appropriated under 
section 3(d) of this Act may be made only in interest-bearing 
obligations of the United States or in obligations guaranteed 
as to both principal and interest by the United States.] Such 
investment may be made only in interest-bearing obligations of 
the United States, in obligations guaranteed as to both 
principal and interest by the United States, in interest-
bearing obligations of Japan, or in obligations guaranteed as 
to both principal and interest by Japan. For such purposes, the 
obligations may be acquired (1) on original issue at the issue 
price, or (2) by purchase of outstanding obligations at the 
market price. The purposes for which obligations of the United 
States may be issued under the Second Liberty Bond Act, as 
amended, are hereby extended to authorize the issuance at par 
of special obligations exclusively to the Fund. Such special 
obligations shall bear interest at a rate equal to the average 
rate of interest, computed as to the end of the calendar month 
next preceding the date of such issue, borne by all marketable 
interest-bearing obligations of the United States issued during 
the preceding two years then forming part of the public debt; 
except that where such average rate is not a multiple of one-
eighth of 1 per centum, the rate of interest of such special 
obligations shall be the multiple of one-eighth of 1 per centum 
next lower than such average rate. Such special obligations 
shall be issued only if the Secretary determines that the 
purchase of other interest-bearing obligations of the United 
States, or of obligations guaranteed as to both principal and 
interest by the United States on original issue or at the 
market price, is not in the public interest.
          * * * * * * *
                              ----------                              


          UNITED STATES INTERNATIONAL BROADCASTING ACT OF 1994

          * * * * * * *

        TITLE III--UNITED STATES INTERNATIONAL BROADCASTING ACT

          * * * * * * *

SEC. 305. AUTHORITIES OF THE BOARD.

    (a) Authorities.--The Board shall have the following 
authorities:
            (1) To [direct and] supervise all broadcasting 
        activities conducted pursuant to this title, the Radio 
        Broadcasting to Cuba Act, and the Television 
        Broadcasting to Cuba Act.
          * * * * * * *

SEC. 307. INTERNATIONAL BROADCASTING BUREAU.

    (a) * * *
          * * * * * * *
    (b) Selection of the Director of the Bureau.--
            (1) [The Director of the Bureau shall be appointed 
        by the Chairman of the Board, in consultation with the 
        Director of the United States Information Agency and 
        with the concurrence of a majority of the Board.] The 
        Director of the Bureau shall be appointed by the Board 
        with the concurrence of the Director of the United 
        States Information Agency. The Director of the Bureau 
        shall be entitled to receive compensation at the rate 
        prescribed by law for level IV of the Executive 
        Schedule.
          * * * * * * *
    (c) Responsibilities of the Director.--The Director shall 
organize and chair a coordinating committee to examine long-
term strategies for the future of international broadcasting, 
including the use of new technologies, further consolidation of 
broadcast services, and consolidation of currently existing 
public affairs and legislative relations functions in the 
various international broadcasting entities. The coordinating 
committee shall include representatives of RFA, RFE/RL, the 
Broadcasting Board of Governors, and, as appropriate, from the 
Office of Cuba Broadcasting, the Voice of America, and 
WorldNet.
          * * * * * * *
                              ----------                              


            SECTION 4 OF THE RADIO BROADCASTING TO CUBA ACT

                  cuba service of the voice of america

    Sec. 4. The Director of the United States Information 
Agency shall establish within the Voice of America a Cuba 
Service (hereafter in this section referred to as the 
``Service''). The Service shall be responsible for all radio 
broadcasts to Cuba authorized by section 3. The Director of the 
United States Information Agency shall appoint a head of the 
Service and shall employ such staff as the head of the Service 
may need to carry out his duties. The Cuba Service shall be 
administered separately from other Voice of America functions 
and the head of the Cuba Service shall report directly to the 
Director [of the Voice of America] of the International 
Broadcasting Bureau.
                              ----------                              


         SECTION 244 OF THE TELEVISION BROADCASTING TO CUBA ACT

SEC. 244. TELEVISION MARTI SERVICE OF THE UNITED STATES INFORMATION 
                    AGENCY.

  (a) Television Marti Service.--The Director of the United 
States Information Agency shall establish within the Voice of 
America a Television Marti Service. The Service shall be 
responsible for all television broadcasts to Cuba authorized by 
this part. The Director of the United States Information Agency 
shall appoint a head of the Service who shall report directly 
to the Director [of the Voice of America] of the International 
Broadcasting Bureau. The head of the Service shall employ such 
staff as the head of the Service may need to carry out the 
duties of the Service.
          * * * * * * *
                              ----------                              


      SECTION 12 OF THE INTERNATIONAL ORGANIZATIONS IMMUNITIES ACT

    Sec. 12. The provisions of this title may be extended to 
the Organization of African Unity and may continue to be 
extended to the International Labor Organization and the United 
Nations Industrial Development Organization in the same manner, 
to the same extent, and subject to the same conditions, as they 
may be extended to a public international organization in which 
the United States participates pursuant to any treaty or under 
the authority of any Act of Congress authorizing such 
participation or making an appropriation for such 
participation.
                              ----------                              


                    ARMS CONTROL AND DISARMAMENT ACT

          * * * * * * *

                          TITLE III--FUNCTIONS

          * * * * * * *

   [comprehensive compilation of arms control and disarmament studies

    [Sec. 39. Pursuant to his responsibilities under section 31 
of this Act, and in order to enhance Congressional and public 
understanding of arms control, nonproliferation, and 
disarmament issues, the Director shall provide to the Congress 
not later than June 30 of each year a report setting forth--
            [(1) a comprehensive list of studies relating to 
        arms control, nonproliferation, and disarmament issues 
        concluded during the previous calendar year by 
        government agencies or for government agencies by 
        private or public institutions or persons; and
            [(2) a brief description of each such study.
This report shall be unclassified, with a classified addendum 
if necessary.]
          * * * * * * *

                      TITLE IV--GENERAL PROVISIONS

                              use of funds

    Sec. 48. Appropriations made to the Director for the 
purposes of this Act, and transfers of funds to him by other 
Government agencies for such purposes, shall be available to 
him to exercise any authority granted him by this Act, 
including, without limitation, expenses of printing and binding 
without regard to the provisions of [section 11 of the Act of 
March 1, 1919 (44 U.S.C. 111)] any other Act; purchase or hire 
of one passenger motor vehicle for the official use of the 
Director; entertainment and official courtesies to the extent 
authorized by appropriation; expenditures for training and 
study; expenditures in connection with participation in 
international conferences for the purposes of this Act; and 
expenses in connection with travel of personnel outside the 
United States, including transportation expenses of dependents, 
household goods, and personal effects (including any such 
travel or transportation any part of which begins in one fiscal 
year pursuant to travel orders issued in that fiscal year, but 
which is completed after the end of that fiscal year), and 
expenses authorized by the Foreign Service Act of 1980, not 
otherwise provided for.
          * * * * * * *