[Congressional Record Volume 140, Number 15 (Tuesday, February 22, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]
[Congressional Record: February 22, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. PELL (by request):
S. 1856. A bill entitled the ``Peace, Prosperity, and Democracy Act
of 1994''; to the Committee on Foreign Relations.
Peace, prosperity and democracy act of 1994
Mr. PELL. Mr. President, by request, I introduce for appropriate
reference a bill entitled the ``Peace, Prosperity, and Democracy Act of
1994.''
This proposed legislation has been requested by the Department of
State, and I am introducing it in order that there may be a specific
bill to which Members of the Senate and the public may direct their
attention and comments.
I reserve my right to support or oppose this bill, as well as any
suggested amendments to it, when the matter is considered by the
Committee on Foreign Relations.
I ask unanimous consent that the bill be printed in the Record at
this point, together with the sectional analysis and the letter from
the Secretary of State, which has received on February 2, 1994.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 1856
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 ``Peace, Prosperity, and
Democracy Act of 1994.''
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 3. Statement of policy.
TITLE I--SUSTAINABLE DEVELOPMENT
CHAPTER 1--SUSTAINABLE DEVELOPMENT AUTHORITIES
Sec. 1101. Statement of policy.
Sec. 1102. Policies concerning sustainable development programs.
Sec. 1103. Voluntary cooperation in development.
Sec. 1104. Microenterprise and other credit programs.
Sec. 1105. Availability of funds.
CHAPTER 2--DEVELOPMENT FUND FOR AFRICA
Sec. 1201. Sustainable development programs for Sub-Saharan Africa.
CHAPTER 3--ROLE OF RELATED PROGRAMS
Sec. 1301. Statement of policy regarding role of International
Financial Institutions.
Sec. 1302. Statement of policy regarding role of Peace Corps.
Sec. 1303. Statement of policy regarding role of African Development
and Inter-American Foundations.
Sec. 1304. Statement of policy regarding role of Pubic Law 480 Non-
Emergency Title II and Title III Programs.
TITLE II--BUILDING DEMOCRACY
Sec. 2001. Findings and statement of policy.
CHAPTER 1--PROMOTING DEMOCRACY
Subchapter A--Countries in Transition
Sec. 2101. Authority.
Sec. 2102. Objectives and types of assistance.
Sec. 2103. Availability of funds; authorities.
Subcapter B--Independent States of the Former Soviet Union
Sec. 2201. Statement of policy.
Sec. 2202. Availability of funds.
Subchapter C--Central and Eastern Europe
Sec. 2301. Statement of policy.
Sec. 2302. Availability of funds.
CHAPTER 2--INFORMATION AND EXCHANGE
Sec. 2401. Policy.
TITLE III--PROMOTING PEACE
Sec. 3001. Statement of Policy.
CHAPTER 1--PEACEKEEPING AND RELATED PROGRAMS
Sec. 3101. Statement of policy.
Sec. 3102. General authority.
Sec. 3103. Drawdown authorities.
CHAPTER 2--NONPROLIFERATION AND DISARMAMENT FUND
Sec. 3201. Statement of policy.
Sec. 3202. Provision of assistance.
Sec. 3203. Availability of Funds.
Sec. 3204. Drawdown authorities.
CHAPTER 3--REGIONAL PEACE, SECURITY AND DEFENSE COOPERATION
Sec. 3301. Statement of policy.
Sec. 3302. Authority and purposes.
Sec. 3303. Considerations in providing defense cooperation assistance.
Sec. 3304. Availability of funds.
CHAPTER 4--INTERNATIONAL NARCOTICS TRAFFICKING, TERRORISM AND CRIME
PREVENTION
Sec. 3401. Statement of policy.
Sec. 3402. Authorities.
Sec. 3403. Provisions related to anti-narcotics programs.
Sec. 3404. Provisions related to law enforcement training.
Sec. 3405. Waiver of certain restrictions on assistance.
Sec. 3406. Availability of funds.
TITLE IV--PROVIDING HUMANITARIAN ASSISTANCE
Sec. 4001. Statement of policy.
CHAPTER 1--REFUGEE ASSISTANCE
Sec. 4101. Statement of policy and purposes.
Sec. 4102. Availability of funds.
CHAPTER 2--DISASTER ASSISTANCE
Sec. 4201. Policy.
Sec. 4202. Authority to provide assistance.
Sec. 4203. Availability of funds.
CHAPTER 3--EMERGENCY FOOD ASSISTANCE
Sec. 4301. Statement of policy regarding emergency food assistance
under Public Law 480, Title II.
TITLE V--PROMOTING GROWTH THROUGH TRADE AND INVESTMENT
Sec. 5001. Statement of policy.
CHAPTER 1--OVERSEAS PRIVATE INVESTMENT CORPORATION
Sec. 5101. Purpose and policy.
Sec. 5102. Investment insurance, financing, and other programs.
Sec. 5103. Enhancing private political risk insurance industry.
Sec. 5104. Issuing authority and reserves.
Sec. 5105. Guidelines and requirements for OPIC support.
CHAPTER 2--TRADE AND DEVELOPMENT AGENCY
Sec. 5201. Purposes.
Sec. 5202. Authority to provide assistance.
Sec. 5203. Availability of funds.
CHAPTER 3--ROLE OF RELATED PROGRAMS
Sec. 5301. Statement of policy regarding role of Public Law 480 Title I
programs.
Sec. 5302. Statement of policy regarding role of Export-Import Bank.
TITLE VI--ADVANCING DIPLOMACY
Sec. 6001. Statement of policy.
TITLE VII--SPECIAL AUTHORITIES, RESTRICTIONS ON ASSISTANCE, AND REPORTS
CHAPTER 1--SPECIAL AUTHORITIES
Sec. 7101. Authority to transfer between accounts.
Sec. 7102. Special waiver authority.
Sec. 7103. Unanticipated contingencies.
Sec. 7104. Assistance for law enforcement agencies.
Sec. 7105. Termination expenses.
Sec. 7106. Exemption of assistance through nongovernmental
organizations from restrictions.
Sec. 7107. Exemption of training activities from prohibitions.
Sec. 7108. Nonapplicability to defense assistance of certain neutrality
act provisions.
Sec. 7109. Exemption from prohibitions for assistance to address
certain special needs.
Sec. 7110. Authority to conduct reimbursable programs.
Sec. 7111. Drawdown authority.
Sec. 7112. Interest accruing to nongovernmental organizations.
Sec. 7113. Development education.
Sec. 7114. Strengthening the capacity of nongovernmental organizations,
including research and educational institutions.
Sec. 7115. Violations of international humanitarian law.
Sec. 7116. Laws relating to contracts and government expenditures.
Sec. 7117. Transportation charges incurred by the Red Cross and
nongovernmental organizations.
CHAPTER 2--RESTRICTIONS ON ASSISTANCE
Sec. 7201. Ineligible countries.
Sec. 7202. Impact of foreign assistance programs on jobs in the United
States.
Sec. 7203. Family planning activities.
Sec. 7204. Competition with United States exports.
Sec. 7205. Nuclear nonproliferation.
Sec. 7206. Major illicit drug producing and drug transit countries.
Sec. 7207. Assistance for elections.
Sec. 7208. Assignment of personnel.
Sec. 7209. Assistance limited to economic programs.
Sec. 7210. Impact of sustainable development assistance on environment
and natural resources.
CHAPTER 3--REPORTS AND NOTIFICATIONS TO CONGRESS
Sec. 7301. Congressional presentation documents.
Sec. 7302. Human rights policy and reports.
Sec. 7303. International narcotics control report.
Sec. 7304. Annual allocation report.
Sec. 7305. Notification of program changes.
Sec. 7306. Evaluation and monitoring of program performance.
TITLE VIII--GENERAL PROVISIONS
CHAPTER 1--EXERCISE AND COORDINATION OF FUNCTIONS
Sec. 8101. Delegations by the President.
Sec. 8102. Role of the Secretary of State.
Sec. 8103. The Secretary of Defense.
Sec. 8104. United States Agency for International Development.
Sec. 8105. The Director of the Arms Control and Disarmament Agency.
Sec. 8106. Authority to establish offices abroad.
Sec. 8107. Presidential findings and determinations.
CHAPTER 2--ADMINISTRATIVE AUTHORITIES
Subchapter A--General Authorities
Sec. 8201. Allocation of funds and reimbursement among agencies.
Sec. 8202. General authorities.
Sec. 8203. Authorized administrative uses of funds.
Subchapter B--Department of Defense Administrative Authorities
Sec. 8211. Administrative Expenses.
Sec. 8212. End use and retransfer assurances.
Sec. 8213. Approval of third country transfers.
Sec. 8214. Exchange training.
CHAPTER 3--SPECIAL REQUIREMENTS AND AUTHORITIES RELATING TO
APPROPRIATIONS AND LOCAL CURRENCIES
Subchapter A--Provisions Relating to Appropriations
Sec. 8301. Requirement for authorization of appropriations.
Sec. 8302. Authority for extended period of availability of
appropriations.
Sec. 8303. Reduction in earmarks.
Sec. 8304. Obligation upon apportionment.
Subchapter B--Local Currencies
Sec. 8311. Use of certain foreign currencies.
Sec. 8312. Interest on U.S.-owned foreign currency proceeds.
CHAPTER 4--PROCUREMENT AND DISPOSITION OF ARTICLES
Sec. 8401. Use of private enterprise.
Sec. 8402. Procurement standards and procedures.
Sec. 8403. Shipping on United States vessels.
Sec. 8404. Excess and other available property.
Sec. 8405. Grant transfers of excess defense articles.
Sec. 8406. Stockpiling of defense articles for foreign countries.
Sec. 8407. Location of stockpiles.
Sec. 8408. Additions to war reserve stocks.
Sec. 8409. Retention and use of certain items and funds.
CHAPTER 5--PERSONNEL AND ADMINISTRATIVE EXPENSES
Subchapter A--General
Sec. 8501. Statutory officers in the United States Agency for
International Development.
Sec. 8502. Employment of personnel.
Sec. 8503. Experts, consultants, and retired officers.
Sec. 8504. Detail of personnel to foreign governments and international
organizations.
Sec. 8505. Head of offices abroad.
Sec. 8506. Chairman of OECD Development Assistance Committee.
Sec. 8507. Assignment of DOD personnel to civil offices.
Sec. 8508. Discrimination against United States personnel providing
assistance.
Sec. 8509. Availability of funds for operating expenses generally.
Sec. 8510. Availability of funds for operating expenses of the
inspector general.
Sec. 8511. Availability of funds.
Subchapter B--Overseas Management of Assistance and Sale Programs
Administered Through the Department of Defense
Sec. 8521. Authorized functions.
Sec. 8522. Costs.
Sec. 8523. Role of chief of mission
Subchapter C--Administrative Provisions for the Trade and Development
Agency
Sec. 8531. Director and personnel
Sec. 8532. Audits
Sec. 8533. Annual report.
Subchapter D--Administrative Provisions for the Overseas Private
Investment Corporation
Sec. 8541. Stock of the Corporation.
Sec. 8542. Organization and management.
Sec. 8543. Income and revenues.
Sec. 8544. General provisions relating to insurance and financing
program.
Sec. 8545. General provisions and powers.
Sec. 8546. Annual report; maintanence of information.
Sec. 8547. Definitions.
Subchapter E--Definitions and Miscellaneous Provisions
Sec. 8551. Definitions.
Sec. 8552. Activities under other laws not affected.
TITLE IX--TECHNICAL AND CONFORMING PROVISIONS
Sec. 9101. Effective date.
Sec. 9102. Savings provisions.
Sec. 9103. Miscellaneous provisions.
Sec. 9104. Conforming and other amendments.
Sec. 9105. Transition rules for military assistance.
Sec. 9106. Repeal of obsolete provisions.
SEC. 3. STATEMENT OF POLICY.
Statement of Policy.--
(1) The people of the United States are embarking on a new
era of domestic renewal that will draw strength through
expanding cooperation abroad to advance United States
economic and political interests and to meet the challenges
of a new century.
(2) The interests of the United States are best served by a
community of nations that respects individual human rights
and democracy, resolves conflicts peacefully, engages in free
and open trade, uses the world's limited natural resources in
a sustainable manner, and in which fundamental human needs
are met.
(3) Sustainable development is in the long-term interest of
the United States because without such development, economic,
political and security problems will multiply and generate
future costs and burdens; and because overpopulation and
environmental destruction threaten to undercut the best
efforts of nations to build peace and prosperity.
(4) Strengthening democracy and human rights advances
United States interests: democracies are conducive to free
markets; they are more reliable partners, more receptive to
cooperation in environmental protection and other global
problems, and less prone to wage war on each other or sponsor
terrorism. Strengthening democracy is especially critical to
achieving what must remain an overriding goal of the United
States: helping to create a world in which respect for human
rights and fundamental freedoms can flourish.
(5) In this new era of more diffuse challenges to the
security of the United States, the United States recognizes
the need to maintain and restore peace through arms control,
nonproliferation, regional peace processes, and collective
defense, efforts, and for continued vigilance against a wide-
range of increasingly transnational security challenges,
including international narcotics trafficking, terrorism and
other international crime that affect the personal safety of
the people of the United States.
(6) United States Government support for efforts to
alleviate suffering and help people help themselves reflects
the ideals of the people of the United States who have a long
and unequaled record of responding quickly and substantially
to humanitarian crises caused by natural and manmade
disasters.
(7) An open and growing world trading system will benefit
United States workers through expanding global markets and
create a more prosperous and secure world. Promotion of
broad-based economic growing in developing countries is an
important means for expanding the fastest growing markets for
United States exports.
(8) Diplomacy effectively advances United States security
and prosperity, meets long-term global challenges, and builds
cooperative arrangements with allies and multilateral
organizations.
(9) Foreign assistance programs are in the national
interest of the United States, and to meet the diverse
challenges of a new century, the United States must command a
full range of creative foreign policy tools to shape a
comprehensive, long-term approach to promoting the United
States national interests reflected in the objectives of this
Act: Promoting Sustainable Development, Building Democracy,
Promoting Peace, Providing Humanitarian Assistance, Promoting
Growth Through Trade and Investment, and Advancing Diplomacy.
TITLE I--SUSTAINABLE DEVELOPMENT
CHAPTER 1--SUSTAINABLE DEVELOPMENT AUTHORITIES
SEC. 1101. STATEMENT OF POLICY.
Statement of Policy.--
(1) United States prosperity and security in the Twenty-
first Century will depend on the successful pursuit of global
sustainable development based on an abiding commitment to
democratic, free-market principles.
(2) The transnational threats of persistent poverty, global
environmental degradation and rapid population growth
threaten to undercut the best efforts of the world community
to ensure a more prosperous and peaceful future. Addressing
these threats will require, among other things, an
appropriate mix of people-to-people, bilateral and
multilateral assistance to complement local action.
(3) The people of the United States have long demonstrated
a moral commitment to help those in need and to provide
assistance that reflects the traditional humanitarian ideals
of the people of the United States.
(4) The promotion of long-term, equitable, and
environmentally sustainable development can help to prevent
humanitarian crises and to reduce the vulnerability of
people, particularly children, to natural and manmade
disasters, which are costly in terms of both human life and
financial resources.
(5) United States support for people-to-people, bilateral
and multilateral sustainable development programs must,
therefore, be targeted on broad-based, economic growth that
reduces hunger and poverty, protects the environment,
enhances human capabilities, upholds democratic values, and
improves the quality of life for current generations while
preserving that opportunity for future generations through,
among other things, helping the poor majority of women, men,
and children in developing countries participate in the
development process.
(6) Sustainable development efforts will be significantly
enhanced through the broad participation and active
engagement of the United States-based private sector,
including universities, labor unions, and private voluntary
organizations, and the people of each nation as producers,
workers, and citizens of their communities, in shaping
development policies and in defining, implementing, and
evaluating programs and projects.
(7) The ultimate measure of success of programs under this
title is to reach a point where improvements in the quality
of life and the environment are such that assistance is no
longer necessary and can be replaced by new forms of
diplomacy, cooperation and commerce.
SEC. 1102. POLICIES CONCERNING SUSTAINABLE DEVELOPMENT
PROGRAMS.
(a) Purposes of Sustainable Development Programs.--The
promotion of sustainable development is in the long-term
interests of the United States. Sustainable development
signifies broad-based, economic growth which protects the
environment, enhances human capabilities, upholds democratic
values, and improves the quality of life for current
generations while preserving that opportunity for future
generations. The objectives of sustainable development are
pursued by supporting the self-help efforts of people in
developing countries to implement sound policies that
increase self-reliance, equity, and productive capacity, to
invest in their people, and build effective and accountable
indigenous political, economic and social institutions.
(b) Sustainable Development Objectives.--The purposes
described in subsection (a) can best be achieved through a
balanced, participatory and comprehensive cooperation program
targeted on the following four inter-dependent objectives--
(1) Encouraging broad-based economic growth.--
(A) Rationale.--Broad-based economic growth signifies
equitable and inclusive economic expansion in developing
countries. Such growth is in the economic, political, and
strategic interests of the United States because it permits
countries to progress toward economic self-reliance, improve
the living standards of their citizens, reduce the incidence
of poverty, promote food security and nutritional well-being,
slow population growth, and increase opportunities for
mutually beneficial international trade and investment.
Broadly-based economic progress also improves the prospects
for the spread of democracy and political pluralism. Economic
stagnation or narrowly based-economic growth may fuel
political instability and threaten international security and
cooperation.
(B) Objective.--Broadly-based, sustainable growth requires,
in addition to sound economic policies:
(i) investments in people, particularly poor people, in the
form of health, nutrition, education, shelter and other
critical social services;
(ii) a broader role for and access to markets for both
women and men through improved policies that protect and
advance economic rights for all citizens without regard to
gender, race, religion, language or social status, increase
self-reliance in meeting basic needs, and raise real incomes
for poor people;
(iii) stronger and more accountable public and private
institutions at the local and national level, and sound
public investments;
(iv) enhanced food security, including improved access to
safe food and adequate nutrition through sustainable
improvements in agriculture and post-harvest food
preservation;
(v) sound debt management, including responsible relief as
appropriate;
(vi) investments in people's productive capabilities,
including measures to upgrade people's technical and
managerial knowledge and skills; and
(vii) measures to ensure that the poor have access to
productive resources, including affordable and resource-
conserving technologies, technical as well as market-related
information, and credit, especially for small farms, small
and micro-enterprises, and the poorest self-employed sector,
and otherwise, fully participate in the benefits of growth in
employment and income.
(2) Protecting the Global Environment.--
(A) Rationale.--The economic and social well-being and the
security of the United States, indeed the health of our
citizens, depend critically on the global environment and
physical resource base. Consumption patterns, systems of
industrial and agricultural production, demographic trends,
and use of natural resources directly affect the
sustainability of long-term development and growth, and of
the ecosystem. Development that does not take account of its
environmental consequences will not be economically
sustainable in the long run. Improved resource management is
a critical element of a balanced pattern of development. Both
developed and developing countries share responsibility to
present and future generations for the rational and
sustainable management of natural resources and for
environmental protection. Developing countries not only
suffer from the consequences of environmental degradation,
but also contribute to that degradation as they struggle to
meet the basic needs of their people. Therefore,
environmental sustainability cannot be secured without
reducing poverty, nor can poverty be eliminated without
sustainable management of the natural resource base.
(B) Objective.--Sustainable development programs authorized
by this chapter should address the root causes of
environmental harm, promote environmentally-sound patterns of
growth and support improved management of natural resources
and protection of the environment. These activities shall
include efforts to address urgent global environmental
challenges, including the loss of biological diversity and
global climate change, as well as efforts to address
significant environmental problems within countries and
regions. Such efforts shall seek to promote sound
environmental policies and practices which simultaneously
enhance long-term economic growth.
(3) Supporting Democratic Participation.--
(A) Rationale.--It is in the national interest of the
United States and in keeping with our democratic traditions
to support democratic aspirations and values, foster the
spread of enduring democratic institutions, and encourage
universal respect for civil and human rights. The
establishment of local governance, civil society and
democratic institutions, including business associations and
labor unions, is an essential element of the ability of
nations to sustain development efforts.
(B) Objective.--Sustainable development programs must help
to build the strengthen organizations and institutions that
foster participation in economic and political decision-
making at the local and national levels. Such programs shall
help promote: respect for human rights and the rule of law;
an expanding role for nongovernmental and citizens
organizations and their capacity to effectively participate
in political and economic decision-making and to implement
development programs; means to enhance citizen access to
public information; the ability of all citizens to choose
freely their government and to hold that government
accountable for its actions; efforts which advance legal,
social, and economic equality for women, workers, and
minorities; respect for the rights of women, workers, and
minorities; and principles of tolerance among and within
religious and ethnic groups.
(4) Stabilizing World Population Growth.--
(A) Rationale.--Excessive population growth rates, among
other factors, aggravates poor health, perpetuates poverty,
and inhibits saving and investment, particularly investments
in people in the form of basic health, child survival, and
education services. Continued excessive growth in world
population rates will undercut sustainable development
efforts. Unsustainable population growth is directly tied to
degradation of the natural resource base and the environment
and contributes to economic stagnation and political
instability. The problems associated with excessive
population growth are interrelated with economic and social
inequities, particularly the low status of women, and
patterns of resource consumption. Excessive population growth
impedes development and retards progress on global issues of
direct concern to the United States.
(B) Objective.--The primary objectives are: to reduce
population growth to rates that are consistent with
sustainable, broadly-based development, to provide women and
men with the means to freely and responsibly choose the
number and spacing of their children, and to contribute to
improved reproductive health. This calls for a focus on
enhanced access to and quality of voluntary family planing
services and reproductive health care. This also calls for
strong and sustained programs in child survival and the
prevention of HIV/AIDS. Improvement of female education and
raising the economic and social status of women, carried out
within the context of encouraging broad-based economic
growth, are particularly important complementary activities
that contribute to these objectives.
(C) Principles.--To achieve the objectives of this section,
sustainable development programs authorized by this chapter
shall be carried out in accordance with the following
principles--
(1) Popular Participation.--
(A) In general.--Sustainable development depends for its
success on the empowerment of people to make political and
economic decisions. Participation, in the form of active
involvement of program participants in the identification,
design, implementation, and evaluation of development
programs is critical to the success of those programs.
Therefore, assistance under this chapter should incorporate
the local-level perspectives of all participants, especially
the rural and urban poor and women, in the identification,
design, implementation, and evaluation of projects, programs,
and development policies, as well as in the design of country
assistance strategies and overall strategic objectives.
(B) Role of women in the development process.--The
expansion of women's opportunities is essential to reduce
poverty, lower population growth and bring about effective
and sustainable development. The active involvement of women
in economic, political, and social activities is necessary to
promote democracy and to assure sustainable development.
Women, including local and indigenous women's groups, must be
involved as agents as well as beneficiaries of change in all
aspects of the development process. Women, therefore, should
be integrally involved in policies, programs, and projects
undertaken to achieve the objectives and purposes of this
section.
(C) Nongovernmental organizations.--For development to be
broad-based and sustainable, it is imperative to consult
with, and fully engage in the policy and program planning
process, nongovernmental organizations representatives of,
and knowledgeable about, local people and their interests.
Nongovernmental organizations, including private voluntary
organizations, cooperatives and credit unions, labor unions,
women's groups, and indigenous local organizations, should be
fully utilized in meeting the objectives and purposes of this
section through, among other things, regular involvement in
the formulation of development strategies for countries and
sectors.
(D) Utilization of United States institutional
capabilities.--Programs undertaken to achieve the sustainable
development objectives of this chapter should recognize and
take advantage of--
(i) United States capabilities in science and technology;
(ii) access to education and training in United States
colleges, universities, and technical training facilities;
and
(iii) United States public sector expertise.
This may be encouraged through, among other things, long-
term collaboration between public and private institutions of
science, technology, and education in the United States and
developing countries.
(2) Managing for Results.--
(A) In General.--Assistance cannot substitute for a
developing country's own efforts to improve the lives of its
people, nor can the United States afford to provide
assistance which does not yield enduring results in terms of
improving the lives of the poor, encourage a stable and
prosperous global order, and contribute to the interests of
the people of the United States.
(B) Country Requirements.--Sustainable development programs
under this chapter shall be concentrated in countries that
have a demonstrated need for such programs, that will make
effective use of such programs, and that have a commitment to
achieving clear development objectives. Indicators of such
countries include the extent to which: there is a high
incidence of hunger and poverty, there is an enabling
environment in which government economics and sound policies
are conducive to accomplishing the sustainable development
objectives contained in subsection (b) of this section,
government decision-making is transparent, government
institutions are accountable to the public, an independent
and honest judiciary is maintained, local government bodies
are democratically elected, and political parties,
nongovernmental organizations and the media operate without
undue constraints.
(C) Measuring Results.--The United States assistance
program under this chapter will assess the commitment and
progress of countries in moving toward the sustainable
development objectives contained in subsection (b) of this
section and the contributions made to this progress by
assistance provided under this chapter. The United States
will establish open and transparent systems to monitor these
results, and will be prepared to shift scarce resources from
unproductive programs, sectors or countries to those which
have demonstrated the commitment and ability to use them
effectively.
(3) International coordination.--The United States shall
seek wherever possible to coordinate its sustainable
development program with other bilateral and multilateral
donors, as well as with the private sector, in order to
maximize the effectiveness of resources allocated to
sustainable development.
SEC. 1103 VOLUNTARY COOPERATION IN DEVELOPMENT.
(a) Statement of Policy.--
(1) The sustained participation of United States private
voluntary organizations, labor unions, cooperatives, and
credit unions that are engaged in activities that are
relevant to the development needs of developing countries
serves as an important means of improving the lives of the
poor in those countries and enhances the likelihood that the
goals of this title will be attained.
(2) The sustained participation of United States and
overseas cooperatives and credit unions provides an
opportunity for people in developing countries to participate
directly in democratic decisionmaking for their economic and
social benefit through ownership and control of business
enterprises and through the mobilization of local capital and
saving. These organizations should be utilized in fostering
democracy, free markets, and self-help, community-based
development.
(3) Similarly, sustained participation of United States
colleges and universities in the economic development
programs of the developing countries and the building of
indigenous university systems that support the educational,
research, and service needs of their societies is vital to
their achieving sustainable economic growth and open
democratic political systems and, at the same time, supports
the internationalization of United States educational
institutions by strengthening their faculty and the programs
available to their students.
(4) Such sustained participation would be enhanced through
provisions within the United States Agency for International
Development to provide such organizations and institutions
with the opportunity to participate in the planning,
development and implementation and evaluation of programs
that involve those organizations and institutions.
(b) Partnership Relationship.--The President is encouraged
to establish a formal, effective, and continuing partnership
relationship with private voluntary organizations,
cooperatives, and credit unions which have experience in
working in developing countries, and with United States
colleges and universities, with the objective of enhancing
attainment of the goals set forth in this title. Individuals
who are from such organizations and institutions and who have
expertise and administrative experience in programs relevant
to the development needs of developing countries should be
consulted on a regular basis so as to bring their expertise
to bear on those objectives.
(c) American Schools and Hospitals.--The President is
authorized to use funds made available to carry out the
provisions of this Act for support of--
(1) schools and libraries, outside the United States, that
are sponsored by United States citizens and serve as study
and demonstration centers for ideas and practices of the
United States, and
(2) hospital centers for medical education and research,
outside the United States, that are sponsored by United
States citizens,
where such support is in furtherance of the objectives of
this title.
SEC. 1104. MICROENTERPRISE AND OTHER CREDIT PROGRAMS.
Credit resources can be a cost effective tool in fostering
sustainable development where borrowers and projects are
credit worth and where the costs of such credit assistance
are capable of being reasonably estimated. Subject to section
8202(i), the President is authorized to provide assistance
for credit programs in furtherance of the sustainable
objectives, as follows:
(1) Micro- and Small Enterprise Development.--To promote
the full participation in a country's economy by all members
of society through increased access to formal financial
markets.
(2) Shelter, Urban Development, and Environmental
Infrastructure.--To address needs and shelter, urban services
and facilities, and urban environmental management systems,
including water treatment and waste disposal systems.
(3) Other Projects and Programs.--To carry out other
purposes of this chapter that can be met with credit
resources.
SEC. 1105. AVAILABILITY OF FUNDS.
The President is authorized to carry out programs in
support of the sustainable development objectives of this
chapter. Funds shall be available to carry out the provisions
of this chapter as authorized and appropriated to the
President each fiscal year.
Chapter 2--Development Fund for Africa
SEC. 1201. SUSTAINABLE DEVELOPMENT PROGRAMS AND SUB-SAHARAN
AFRICA.
(a) Statement of Policy.--
(1) Sub-Saharan Africa faces serious obstacles to
sustainable development, including high levels of poverty,
high levels of disease burden especially tropical diseases
and HIV/AIDS, environmental degradation, high population
growth rates and, in some countries, civil conflicts that
threaten the welfare of millions of people.
(2) Sub-Saharan Africa is also undergoing significant
but fragile economic, social, and political change,
including economic reforms and transition to democracies,
which hold promise of progress in sustainable development.
(3) Sub-Saharan Africa possesses numerous species, as well
as major forest reserves, which will become increasingly
threatened in the absence of sustainable development.
(4) The challenges facing sub-Saharan Africa require a
steady, long-term approach to development, and therefore the
purpose of the Development Fund for Africa shall continue to
be to help the poor majority of men and women in sub-Saharan
Africa to participate in a process of long-term development
through economic growth that is equitable, participatory,
environmentally sustainable and self-reliant.
(5) Experience has shown that in order to be effective and
sustainable, assisted development projects and programs must
be based on local consultation and involvement.
(6) By addressing the broad sustainable development
objectives of encouraging broad-based economic growth,
reducing excessive population growth rates, preserving the
environment, and strengthening democratic governance and
expanding popular participation, programs for sub-Saharan
Africa can directly improve the lives of the poor majority of
Africans.
(b) Local Perspectives.--In carrying out sustainable
development programs for sub-Saharan Africa, the local-level
perspectives of the rural and urban poor, including women, in
sub-Saharan Africa shall be taken into account during the
planning process for project and program assistance.
(c) Availability of Funds.--Funds appropriated to carry out
the provisions of chapter 1 for sustainable development
programs may be made available, in accordance with the
provisions of that chapter, to carry out such programs for
sub-Saharan Africa.
(d) Relationship to Certain Provisions of Law.--Assistance
may be furnished for activities under this chapter
notwithstanding sections 7201(a)(7) and 8402 of this Act, and
any similar provisions of law.
Chapter 3--Role of Related Programs
SEC. 1301. STATEMENT OF POLICY REGARDING ROLE OF
INTERNATIONAL FINANCIAL INSTITUTIONS.
(1) By fostering sound macroeconomic policies, the
international financial institutions--
(A) further the interest of the United States in a free,
open, and stable international economic and financial system;
and
(B) encourage developing countries to participate more
fully in the world economy, thus expanding the opportunities
for United States exports and investment.
(2) At the same time, structural and sectoral level reforms
supported by the international financial institutions, and
programs aimed at addressing such problems as basic
education, environmental protection, health, and population,
should reinforce the goals of United States sustainable
development programs.
(3) The increasing coordination of the activities of the
international financial institutions with those of bilateral
assistance programs provides an opportunity for those
institutions to be informed of local perspectives,
priorities, and capabilities best gained through
decentralized, consultative processes.
(4) The United States should give priority to developing an
international consensus on good governance, accountability
and transparency, the rule of law, and public participation
as central to the development process.
(5) The ability of international financial institutions to
serve these ends depends on maintenance of strong United
States influence in them and fulfillment of United States
financial commitments.
SEC. 1302. STATEMENT OF POLICY REGARDING ROLE OF PEACE CORPS.
(1) The purposes of the Peace Corps, as set forth in the
Peace Corps Act, are consistent with a fundamental objective
of this Act--to broaden the participation of people in
developing countries in the economic and social life of their
countries.
(2) The benefits provided by both the sustainable
development programs authorized by this Act and programs
authorized by the Peace Corps Act will be enhanced by
collaboration that, while not infringing on the traditional
autonomy of the Peace Corps, recognizes that the ability of
the Peace Corps to address issues of concern to the people of
developing countries at the grassroots level complements the
programs authorized by this Act.
SEC. 1303. STATEMENT OF POLICY REGARDING ROLE OF AFRICAN
DEVELOPMENT AND INTER-AMERICAN FOUNDATIONS.
(1) The purposes of the Inter-American Foundation and the
African Development Foundation as set forth in section 401(b)
and 504 of their respective Acts are consistent with
fundamental premises of sustainable development programs,
such as the need to expand the participation of individuals
in social and economic institutions so that they have a stake
in the resolution of social and economic issues.
(2) Both Foundations have demonstrated that sustainable
development may be fostered at the local level by responding
to the expressed needs of the people who live and work in the
local community, and providing them with the means to carry
out their own development initiatives.
(3) By working at the grassroots level to enhance incomes,
expand social benefits, and encourage increased
participation, the programs of the African Development
Foundation and the Inter-American Foundation, while
independent, are part of an overall framework of support for
developing countries which aims to see sustainable
development occur at the local and the national levels.
SEC. 1304. STATEMENT OF POLICY REGARDING ROLE OF P.L. 480
NON-EMERGENCY TITLE II AND TITLE III PROGRAMS.
Statement of Policy.--
(1) The use of United States agricultural commodities
through the P.L. 480 non-emergency Title II program, serves
the dual purposes of supporting the efforts of poor countries
to meet their need for additional food resources while at the
same time promoting the long-term sustainable development
efforts of those countries.
(2) By giving priority through the P.L. 480 Title III
program to those least developed, food deficit countries with
high levels of malnutrition that have long-term plans for
broad-based equitable and sustainable development and a
demonstrated commitment and capacity to use food assistance
effectively, these programs show a consistency of purpose
with the sustainable development programs authorized by this
Act.
TITLE II--BUILDING DEMOCRACY
SEC. 2001. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--
(1) There is a growing worldwide movement toward more open,
just and democratic societies. This trend is essential to
achieving the United States ultimate objective of worldwide
respect for human rights and fundamental freedoms without
distinction as to race, sex, language or religion. At the
same time, this trend holds great promise for promoting the
peace of the world and the foreign policy, security, and
general welfare of the United States.
(2) Expansion of democratic values and systems must be
promoted through bilateral, multilateral, and people-to-
people programs with the sustained assistance and moral
support of the international community, and of the
established democracies in particular.
(3) Democratic development takes time to take root in
society and in the political system. There is a need for the
international community to assist in the consolidation of
democratic values, practices and institutions to prevent the
reversal of democratic trends.
(4) Frequently, newly democratizing countries are beset by
ethnic conflicts, resurgent nationalism and anti-democratic
movements, and political reaction to economic reform. A
growing number of countries seek to end years of protracted
internal conflict through the implementation of
internationally-sanctioned political settlements, designed to
create a democratic form of governance, a durable peace, and
the institutional requisites for long-term development.
(5) Furthermore, democratic institutions in countries where
democracy has taken root can be similarly threatened by
regional and civil unrest, and other threats to international
peace and security.
(6) Narcotics trafficking, terrorism and other forms of
international crime--and the corruption that they engender of
political, administrative and other democratic institutions--
pose similar threats to such countries, and efforts to combat
these scourges need to be integrated into and coordinated
with broader efforts to develop and consolidate democratic
institutions.
(7) To advance, countries in such circumstances may require
international assistance not normally included in
humanitarian relief programs, peacekeeping operations, or
long-term development programs, and the international
community needs to be able to respond swiftly to meet such
needs.
(8) Failure by the United States to respond effectively to
threats to democracy and human rights abroad could risk
important United States interests, jeopardize substantial
savings in United States defense that a more democratic and
predictable world will bring, imperil United States
investments and economic reforms that will result in trade
and economic benefits to the United States, and heighten the
risk that many transitions might ultimately fail and generate
costly humanitarian emergencies.
(9) Accordingly, the United States must have the capacity
to respond rapidly, effectively, and in an integrated fashion
to the new opportunities and challenges associated with
democratic development.
(b) Statement of Policy.--
(1) In addition to promoting strong democratic societies as
an integral part of the sustainable development programs
authorized under title I of this Act, it should be the policy
of the United States to assist countries making the
transition to democracy, and countries where democratic
gains are threatened, by providing timely assistance in
building effective democratic institutions and free market
economies.
(2) At the same time, the promotion of democracy is the
responsibility of the global community. The United States
should give priority to working bilaterally and
multilaterally to ensure commitment of substantial resources
toward the promotion of democracy in transitional countries,
and to coordinating policies and programs among institutions
and donors.
Chapter 1--Promoting Democracy
Subchapter A--Countries in Transition
SEC. 2101. AUTHORITY.
The President may provide assistance under this subchapter
for countries--
(1) that have recently emerged or are in the process of
emerging as democratic societies; or
(2) that have recently emerged or are emerging from civil
strife and either have a democratically-elected government or
are making progress toward developing a democratic form of
government; or
(3) where democratic progress or institutions are
threatened.
SEC. 2102. OBJECTIVES AND TYPES OF ASSISTANCE.
(a) Objectives.--Programs under this subchapter should be
designed to facilitate the worldwide trend toward more open,
just and democratic societies, and may include programs to--
(1) promote the development of functioning democratic
institutions and political pluralism, including programs to
facilitate--
(A) establishment of fully democratic and representative
political systems based on free and fair elections that
permit multi-party participation;
(B) protection of basic human rights and fundamental
liberties and individual freedoms including freedom of
speech, religion and association, access to information and
public participation in decisionmaking;
(C) development of legal, legislative, constitutional,
electoral, journalistic, educational, and other institutions,
both governmental and nongovernmental which are essential
elements of civil society in free pluralistic societies;
(D) establishment and professional development of non-
partisan military, security and police forces, accountable to
civil authorities;
(E) development of intercommunal conflict resolution
mechanisms; and
(F) strengthening of policy making skills and
accountability of democratic governments.
(2) address political, economic and humanitarian needs that
arise in connection with transitions, or that if unmet
undermine or threaten democratic institutions; and
(3) help meet security challenges on a transitional basis
that threaten to impede or reverse democratic reforms or
institutions.
(b) Assistance may only be provided to military or law
enforcement forces under this subchapter--
(1) to orient militaries or law enforcement agencies to
their respective roles in a democratic order, including
through training, contacts with counterparts in established
democracies, and other programs designed to enhance respect
for human rights and understanding of principles of civilian
control in a democratic society;
(2) to enhance the practical accountability of law
enforcement agencies to civil justice institutions;
(3) to promote demilitarization of society, through
programs aimed at demobilization, down-sizing, and
rationalization and professionalization of military
structures; or
(4) to the extend otherwise permitted under section 7104 of
this Act; or
(5) to meet the challenges described in subsection (a)(3).
In providing assistance under this subsection the President
shall consider the extent to which the recipients demonstrate
a commitment to respect human rights and fundamental
freedoms.
SEC. 2103. AVAILABILITY OF FUNDS; AUTHORITIES.
(a) Availability of Funds.--Funds shall be available to
carry out the provisions of this subchapter as authorized and
appropriated to the President each fiscal year. The amount of
funds that are authorized and appropriated to carry out the
provisions of this subchapter that may be made available for
assistance administered through the Department of Defense
shall be authorized and appropriated separately.
(b) Authority.--Assistance may be provided under this
subchapter notwithstanding any other provision of law.
Subchapter B--Independent States of the former Soviet Union
SEC. 2201. STATEMENT OF POLICY.
(1) The international community has an unparalleled stake
in the success of the democratic and economic transformation
taking place in the independent states of the former Soviet
Union, and the integration of those states into the community
of peaceful and democratic nations.
(2) United States programs that facilitate this process
constitute and should be seen as critical investments in
America's future. The people of the United States and the
independent states share an interest in ensuring that
assistance is focused on programs that will have lasting
effect, that support an ongoing process which can survive the
buffeting of political and economic setbacks, and that lay a
broad foundation for reform that is not dependent on the
success or failure of particular initiatives.
(3) United States leadership in supporting reform in the
independent states will remain critical. At the same time,
the United States must work closely with allies and
international institutions to ensure that international
support for reform in these states is coordinated, and that
the costs of programs to support the ongoing transformation
is allocated fairly among those with a shared stake in its
success.
(4) The establishment and development of democratic
institutions and market economies in the independent states
of the former Soviet Union present among the most important
foreign policy challenges of out times. Failure to meet these
challenges could threaten United States national security
interests and jeopardize substantial savings in United States
defense. Success will generate trade and investment
opportunities for American businesses from which the United
States stands to reap enduring employment and other economic
benefits, and the prospects of a more peaceful and stable
world having lasting benefits for all.
SEC. 2202. AVAILABILITY OF FUNDS.
Funds shall be available to carry out the provisions of
this subchapter as authorized and appropriated to the
President each fiscal year. Such funds may be made available
on the same basis as funds authorized to be appropriated for
fiscal year 1993 under chapter 11 of part I of the Foreign
Assistance Act of 1961. Such funds shall be considered to be
assistance under this Act for purposes of making available
the administrative authorities contained in this Act.
Subchapter C--Central and Eastern Europe
SEC. 2301. STATEMENT OF POLICY.
It should be the policy of the United States to continue to
facilitate the reintegration of Central and East European
countries into the community of democratic nations based on
free enterprise, market economies. United States assistance
programs can continue to make a substantial contribution to
these objectives by building on earlier initiatives,
including important ongoing initiatives that were established
under the Support for East European Democracy (SEED) Act of
1989. In furtherance of these objectives, the United States
should support economic and political reform in Central and
East European countries by making available assistance for
SEED Actions as authorized by the SEED Act and for Assistance
provided under the authorities of this Act to such countries
that are taking steps toward--
(1) constitutional democracy and political pluralism, based
on progress toward free and fair elections, and a multi-party
political system;
(2) economic reform, based on progress toward a market-
oriented economy;
(3) respect for internationally recognized human rights,
and the protection of fundamental civil liberties based on
progress toward democratic and independent judicial
institutions; and
(4) a willingness to build, or continue, a constructive and
lasting relationship with the United States based on shared
values and principles.
SEC 2302. AVAILABILITY OF FUNDS.
Funds shall be available to carry out the provisions of
this subchapter as authorized and appropriated to the
President each fiscal year. Such funds shall be considered to
be assistance under this Act for purposes of making available
the administrative authorities contained in the Act.
Chapter 2--Information and Exchange
SEC. 2401. POLICY.
(a) In general.--The fostering of democratic societies,
values, and institutions abroad is crucial to the future
security and prosperity of the United States. Information and
exchange programs carried out by the United States are
central to fostering such democratic values and
encouraging the development of democratic institutions and
processes around the world.
(b) Role of Programs Conducted by USIA.--Programs
administered by the United States Information Agency should
support democratization abroad through the communication of
knowledge and the exchange of people, ideas and values, and
should promote, through in-country personal contacts,
exchanges, training programs, and informational activities, a
better understanding of the nature of democracy in such areas
as--
(1) the role of the citizen and government in democracy and
civil society;
(2) the principles of a free market economy;
(3) respect for the rule of law;
(4) the free flow of information;
(5) free and fair elections;
(6) responsible and representive local government; and
(7) democratic reform of education.
TITLE III--PROMOTING PEACE
SEC. 3001. STATEMENT OF POLICY.
(1) For over forty years the specter of international
communism weighed heavily on United States economic and
military assistance priorities. The collapse of communism and
the end of the Cold War have opened up new possibilities for
international cooperation to contain and, more importantly,
to prevent conflict, thereby creating the opportunity for
realizing international peace and security.
(2) Political destabilization, prompted in part by the
demise of communism, has also unleashed long suppressed
internal and regional conflict in Eastern Europe, the former
Soviet Union, and elsewhere. At the same time, the
proliferation of weapons of mass destruction and technologies
pose unrelenting challenges for peace and security that the
international community cannot afford to ignore.
(3) In addition, the transnational scourges of narcotics
trafficking, terrorism and other international criminal
activity threaten at the most fundamental level the ability
of Americans and others to live their lives in safety.
(4) To address such problems during this historic
transition in post-Cold War world affairs, United States
bilateral and multilateral assistance under this title will
be a necessary complement to effective diplomacy and
international efforts to secure lasting peace. Failure to
invest at this time in programs designed to prevent conflict,
and to promote international peace and security, threatens
the prospects for substantial savings in United States
defense and other expenditures in the future.
Chapter 1--Peacekeeping and Related Programs
SEC. 3101. STATEMENT OF POLICY.
(1) In the wake of the Cold War, serious threats persist to
the security and interests of the United States, and a range
of conflicts within and among states and other humanitarian
disasters continue to threaten international peace and
security, undermine the stability of regions in the world,
generate disruptive flows of refugees, and cause human
suffering on a large scale. When the interests of the United
States are at stake, including its treaty obligations and
humanitarian concerns, it will rely on a variety of
unilateral, bilateral, and multilateral means to respond to
such conflicts and crises.
(2) Diplomacy by our Nation and others can prevent or
ameliorate foreign conflicts, crises, and breaches of the
peace that could impose higher costs and burdens on the
United States if left unaddressed. It is therefore the
intention of the Congress through United States leadership to
promote the security, welfare, and other foreign policy goals
of the United States by supporting timely, preventive
diplomatic efforts, unilaterally and in conjunction with
other nations.
(3) The United States reaffirms its support for appropriate
peace operations when they advance United States interests,
including the fulfillment of United States treaty
obligations, or foreign policy goals, such as encouraging the
spread of democratic and market institutions, and addressing
grave humanitarian crises. A decision to support or
participate in such operations should always be based on an
assessment by the United States Government as to whether
United States interests are best served by doing so.
SEC. 3102. GENERAL AUTHORITY.
(a) In General.--The President is authorized--
(1) to pay assessed and other contributions and expenses of
international peacekeeping activities and other international
activities directed to the maintenance or restoration of
international peace and security, including the provision of
related humanitarian relief; and
(2) to furnish assistance to foreign countries,
and international and regional organizations and
arrangements for peacekeeping, international activities
directed to the restoration or maintenance of
international peace and security and other programs
carried out in furtherance of the national interest of the
United States.
(b) Availability of Funds.--
(1) Funds shall be available to carry out the provisions of
subsection (a)(1) as authorized and appropriated to the
President each fiscal year.
(2) Funds shall be available to carry out the provisions of
subsection (a)(2) as authorized and appropriated to the
President each fiscal year.
(3) If the President determines and reports to Congress
that doing so would promote the purposes of this chapter,
funds made available under either paragraph (1) or (2) may be
transferred to, and consolidated with, funds available for
the other such paragraph, and may be used for any of the
purposes for which funds under that paragraph may be used.
(c) Authority.--Funds made available to carry out this
chapter may be made available notwithstanding any provisions
of law that restrict assistance to foreign countries.
SEC. 3103. DRAWDOWN AUTHORITIES.
(a) Unforeseen Emergencies.--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 purposes is important to
the national interests of the United States, the President
may direct the drawdown of articles and services, of an
aggregate value not to exceed $100,000,000 in any fiscal
year, from the inventory and resources of any agency of the
United States Government.
(b) Reimbursement.--There are authorized to be appropriated
to the President such sums as may be necessary to reimburse
the applicable appropriation, fund, or account for articles
and services provided under this section.
Chapter 2--Nonproliferation and Disarmament Fund
SEC. 3201. STATEMENT OF POLICY.
One of the principal threats to the security of the United
States in the Post-Cold War era is the risk of proliferation
of deadly weapons--nuclear, chemical, biological, and
advanced conventional weapons--as well as their delivery
systems. The United States should give high priority to
pursuing arms control agreements and preventing proliferation
by supporting and enhancing bilateral and multilateral
efforts to--
(1) establish effective controls on destabilizing weapon
systems and materials;
(2) dismantle existing systems;
(3) create verifiable safeguards and regimes and effective
export controls on related technologies and materials; and
(4) increase the effectiveness and help ensure the
implementation of existing nonproliferation and arms control
and agreements, particularly in the states of the former
Soviet Union and in Central and Eastern Europe.
SEC. 3202. PROVISION OF ASSISTANCE.
Assistance may be provided under this chapter to
facilitate--
(1) supporting the dismantlement and destruction of
nuclear, biological, and chemical weapons, their delivery
systems, and conventional weapons;
(2) supporting bilateral and multilateral efforts to halt
the proliferation on nuclear, biological, and chemical
weapons, their delivery systems, related technologies, and
other weapons;
(3) establishing programs for safeguarding against the
proliferation of nuclear, biological, chemical and other
weapons;
(4) establishing programs for preventing diversion of
weapons-related scientific and technical expertise to
terrorist groups or to third countries;
(5) increasing effectiveness of existing nonproliferation
and arms control agreements and promotion of arms control and
security in regions of tension;
(6) assisting international agencies in the application of
nonproliferation treaty safeguards, in the verification of
international nonproliferation regimes, and in the promotion
of peaceful uses of technologies and materials related to
such weapons; and
(7) establishing programs for facilitating the conversion
of military technologies and capabilities and defense
industries into civilian activities.
SEC. 3203. AVAILABILITY OF FUNDS.
Funds shall be available to carry out the provisions of
this chapter as authorized and appropriated to the President
each fiscal year.
SEC. 3204. DRAWDOWN AUTHORITIES.
(a) Unforeseen Emergencies.--If the President determines
that it is in the national interest of the United States to
provide assistance under this chapter in amounts in excess of
funds otherwise available under this chapter for such
purposes, the President may direct the articles and services,
of an aggregate value not to exceed $100,000,000 in any
fiscal year, from the inventory and resources of any agency
of the United States Government.
(b) Reimbursement.--There are authorized to be appropriated
to the President such sums as may be necessary to reimburse
the applicable appropriation, fund, or account for articles
and services provided under this section.
Chapter 3--Regional Peace, Security and Defense Cooperation
SEC. 3301. STATEMENT OF POLICY.
(1) During the Cold War, regional conflicts were often
inspired by hegemonist aspirations of aggressive communism.
In the post-Cold War era, regional and internal conflicts,
fueled by more discrete problems such as ethnic discord,
competing territorial claims and other sources of tension,
persist and are among the greatest threats and barriers to
the achievement of international peace and stability, and a
safe and lawful world order.
(2) Prudent investment of United States resources to
assist, through bilateral and collective efforts, in
preventing or containing armed conflict, in restoring peace
and stability, and in addressing the sources of conflict, is
essential for achieving a peaceful world.
(3) Recent successes in the Near East exemplify the value
of United States dedication to resolving conflict in an area
whose security and stability is of vital interest to the
United States:
(A) To permit continued progress in reaching a full
settlement and a comprehensive, just and lasting peace
between Israel and its Arab neighbors, the United States must
assist Israel in maintaining adequate defense capabilities to
ensure its territorial integrity and continued survival.
(B) Recognizing that the success of the agreement between
Israel and the Palestine Liberation Organization will depend
in large measure on promoting economic development and
improving the well-being of people of the West Bank and Gaza,
the United States should lead in building peace and
prosperity in the Near East through bilateral assistance and
by encouraging multilateral and other donors to contribute
the necessary resources to promote sustainable economic
development throughout that region.
(4) The United States must also build security partnerships
with other allies and friendly nations to assist in their
maintaining adequate capabilities to preserve internal
security, as well as to engage in collective defense efforts
against states that seek territorial expansion or regional
hegemony.
(5) Furthermore, to contribute to an international response
capability, the United States recognizes the need to provide
urgent and immediate assistance, bilaterally and
multilaterally, to contain and resolve conflicts. To respond
to such urgent challenges and to promote international
vigilance in order to stem incipient regional conflicts
worldwide, the United States sees great value in maintaining
alliances, coalitions and other cooperative defense
relationships that permit more effective collective defense
efforts.
(6) As more conflicts are resolved, and as peacetime
conditions permit, continued United States assistance under
this chapter should focus increasingly on conflict prevention
and the promotion of regional arms control, with an emphasis
on nonproliferation and defense education and training
appropriate for a revised military role in a more peaceful
and stable world.
SEC. 3302. AUTHORITY AND PURPOSES.
Assistance under this chapter may be provided for the
following purposes--
(1) to support and promote the process of resolving
conflict and establishing a just and lasting peace, to
contribute to the development of institutions of democratic
government, and to meet economic, political and security
needs, in the Near East;
(2) to meet immediate threats to international peace and
security posed by regional and internal conflicts through
bilateral or multilateral collective defense efforts, and to
meet other political, economic and humanitarian threats to
security; and
(3) to enhance the ability of countries worldwide willing
to share the burden of contributing to regional alliances,
coalition operations, and other collective security efforts
to counter threats to and maintain international peace and
security.
SEC. 3303. CONSIDERATIONS IN PROVIDING DEFENSE COOPERATION
ASSISTANCE.
In providing assistance under this chapter, the President
should take into account the desirability of shifting
resources away from the provision of defense articles to
economic development purposes as rapidly as is warranted by
the easing of threats to regional peace and security, and the
need to maintain ongoing defense relations.
SEC. 3304. AVAILABILITY OF FUNDS.
Funds shall be available to carry out the provisions of
this chapter as authorized and appropriated to the President
each fiscal year. The amount of funds that are authorized and
appropriated to carry out the provisions of this chapter that
may be made available for assistance administered through the
Department of Defense shall be authorized and appropriated
separately.
Chapter 4--International Narcotics Trafficking, Terrorism and Crime
Prevention
SEC. 3401. STATEMENT OF POLICY.
(1) International criminal activities, particularly
international narcotics trafficking and international
terrorism, pose insidious, unparalleled transnational threats
in the post-Cold War period, and endanger stability and
democratic development.
(2) The political and economic upheavals triggered
worldwide by international narcotics and crime-related
violence and corruption have had a devastating effect in the
United States and elsewhere, and make the prevention and
suppression of such international criminal activities among
the most important foreign policy objectives of the United
States.
(3) Failure to address the problems of narcotics
trafficking and related illicit activities will lead
inevitably to further and intensified crime, violence,
corruption, disease and poverty.
(4) The threats posed by terrorism to international peace
and security and a stable, safe world order are equally
profound, and must be combatted through effective
international cooperation, including the provision of
training and equipment.
(5) The war against narcotics trafficking, international
terrorism and other forms of international criminal activity
requires the provision of bilateral and multilateral
assistance by the United States, including as appropriate
through defense establishments, and can be waged most
successfully by enlisting broad-based international
cooperation that facilitates flexible responses to stem all
such activity.
(6) In order to combat such activities, it is imperative
that international cooperation be improved, and efforts in
this regard should include assistance to promote enhanced
police investigative techniques, prosecutorial and defense
skills, and judicial training and administration.
SEC. 3402. AUTHORITIES.
Assistance under this chapter may be provided for the
following purposes--
(1) to control narcotics and psychotropic drugs and other
controlled substances including through programs to promote
alternative development, and including through enforcement,
demand reduction and treatment programs;
(2) to enhance the rule of law and the ability of law
enforcement and, as appropriate, defense personnel of foreign
countries to combat international criminal activity including
corruption, money laundering, economic crimes, illegal trade,
narcotics manufacturing and trafficking and terrorism;
(3) to enhance anti-terrorism skills of foreign law
enforcement and, as appropriate, defense personnel to deter
terrorists and terrorist groups from engaging in
international terrorist acts such as bombing, kidnapping,
assassination, hostage-taking and hijacking; and
(4) to provide concrete anti-crime, anti-terrorism and
antinarcotics assistance to friendly countries to strengthen
bilateral ties and to increase respect for human rights by
sharing with foreign civil authorities modern, humane and
effective anti-crime and anti-terrorism techniques; and
(5) to combat through effective cooperation international
criminal activity, including organized crime and its role in
attempting to influence the process of government, and to
increase international awareness of the need for concerted
efforts through bilateral and multilateral means, such as the
United Nations Commission on Crime Prevention and Criminal
Justice; and
(6) to promote international criminal justice, including
through assistance to promote enhanced police investigative
techniques, prosecutional and defense skills, and judicial
training and administration.
SEC. 3403. PROVISIONS RELATED TO ANTI-NARCOTICS PROGRAMS.
(a) Furnishing Assistance.--The President is authorized to
furnish assistance under this chapter for the purposes of
controlling narcotics and psychotropic drugs and other
controlled substances notwithstanding any other provision of
law, and is authorized to furnish narcotics-related
assistance under other provisions of this title
notwithstanding any other provision of law that restricts
assistance to foreign countries (except section 7201(a)(6)).
(b) Agreements With Other Countries.--In order to promote
cooperation for the purposes of this chapter, the President
is authorized to conclude agreements, including reciprocal
maritime agreements, with other countries to facilitate
control of the production, processing, transportation, and
distribution of narcotics analgesics, including opium and its
derivatives, other narcotic and psychotropic drugs, and other
controlled substances.
(c) Contribution by Recipient Country to Counter-Narcotics
Efforts.--To ensure local commitment to the anti-narcotics
activities assisted under this chapter, the government of a
country receiving such assistance under this chapter should
bear an appropriate share of the costs of any narcotics
control program, project, or activity for which such
assistance is to be provided. The government of a country may
bear such costs on an ``in kind'' basis.
(d) Use of Herbicides for Aerial Eradication of
Narcotics.--The President, with the assistance of appropriate
Federal agencies, shall monitor the use of any herbicides
provided under this chapter for aerial eradication in order
to determine the impact of such use on the environment and on
the health of individuals.
(e) Limitations on Uses of Aircraft and Other Equipment.--
The President shall take all reasonable steps to ensure that
aircraft and other equipment made available to foreign
countries for purposes described in section 3402(1) are used
only in ways that are consistent with the purposes for which
such equipment was made available. In the reports submitted
pursuant to section 7303, the President shall discuss any
evidence indicating misuse by a foreign country of aircraft
or other equipment made available for purposes described in
section 3402(1), and the actions taken by the United States
Government in accordance with this Act to prevent future
misuse of such equipment by that foreign country.
(f) Prohibition on Assistance to Drug Traffickers.--The
President shall take all reasonable steps to ensure that
assistance under this Act is not provided to or through any
individual or entity that has been convicted of, or against
whom a government has formal criminal charges pending
regarding, a violation of, or a conspiracy to violate, any
law or regulation of the United States, a State or the
District of Columbia, or a foreign country, relating to
narcotic or psychotropic drugs or other controlled
substances. This subsection shall not be construed to
restrict assistance that is provided under this Act to
facilitate alternative development programs.
(g) Coordination of All United States Anti-Narcotics
Assistance.--Consistent with subtitle A of title I of the
Anti-Drug Abuse Act of 1988, the Secretary of State shall be
responsible for coordinating all assistance provided by the
United States Government to support international efforts to
combat illicit narcotics production or trafficking. Nothing
contained in this subsection shall be construed to limit or
impair the authority or responsibility of any other Federal
agency with respect to law enforcement, domestic security
operations, or intelligence activities as defined in
Executive Order 12333.
SEC. 3404. PROVISIONS RELATED TO LAW ENFORCEMENT TRAINING.
(a) Training by State Department Personnel.--Employees of
the Department of State shall not engage in the training of
law enforcement personnel for anti-terrorism programs under
this chapter, with the exception of training (including short
term refresher training) or services provided to law
enforcement personnel by employees of the Bureau of
Diplomatic Security with regard to crisis management,
facility security, or VIP protection.
(b) Assistance Relating to Intelligence Activities--Anti-
terrorism assistance under this chapter shall not include
activities involved in the collection of intelligence as
defined in Executive Order 12333, other than limited training
in the organization of intelligence for antiterrorism
purposes under the provisions of this chapter.
(c) Types of Assistance.--Anti-crime and anti-terrorism
assistance under this chapter should emphasize the provision
of training rather than the provision of articles. Such
training should be provided with due regard for a country's
commitment to democracy and respect for human rights, and
where appropriate should incorporate a component to promote
respect for human rights. To the extent equipment or other
articles are provided under assistance programs pursuant to
this chapter, items that support more effective
administrative efforts should receive the highest
consideration.
SEC. 3405. WAIVER OF CERTAIN RESTRICTIONS ON ASSISTANCE.
Section 7201(a)(7) of this Act and any similar provisions
of law shall not apply to the provision of assistance under
this chapter.
SEC. 3406. AVAILABILITY OF FUNDS.
Funds shall be available to carry out the provisions of
this chapter as authorized and appropriated to the President
each fiscal year. The amount of funds that are authorized and
appropriated to carry out the provisions of this chapter that
may be made available for assistance administered through the
Department of Defense shall be authorized and appropriated
separately.
TITLE IV--PROVIDING HUMANITARIAN ASSISTANCE
SEC. 4001. STATEMENT OF POLICY.
(1) The post-Cold War era has been marked by a sudden
proliferation of crises and transitions that have led to a
massive civilian death toll, widespread human suffering, and
an unprecedented number of people becoming refugees and
displaced persons.
(2) Civil war, international conflict, and natural
disasters have all contributed to these humanitarian crises
which have jeopardized the stability of nascent democracies
and strained the ability of fragile economies to meet these
unexpected requirements.
(3) In significant measure, the effects of manmade and
natural disasters, at times amplified by prolonged
environmental degradation, threaten continued sustained
development and are at the same time magnified by the lack of
that development.
(4) Bilateral and multilateral programs that provide
support to countries faced with large numbers of refugees,
rapidly respond to natural and manmade disasters, and
otherwise meet humanitarian and crisis needs are essential
for the continued democratization and economic growth of
countries that, by themselves, do not have the resources to
cope with crises of such magnitude.
Chapter 1--Refugee Assistance
SEC. 4101. STATEMENT OF POLICY AND PURPOSES.
(a) Statement of Policy.--
(1) United States leadership in international refugee and
migration affairs reflects our humanitarian values and
traditions.
(2) United States refugee assistance upholds humanitarian
principles that the United States shares with others in the
international community.
(3) Too often, situations involving serious violations of
human rights, conflict, or disaster create or threaten to
create large-scale refugee and migration programs in which
the victims are forced to flee their homes for safety and
survival.
(4) United States advances the ability of the international
community to address humanitarian crises involving the forced
migration of peoples through support for, participation in
and assistance to, the international and other institutions
involved in the protection of and assistance to victims of
persecution, conflict and other forms of human rights
violations and forced displacements.
(5) United States efforts to improve international
cooperation and burdensharing in carrying out these programs
underscore that these issues are the subject of international
concern and shared responsibility.
(6) Prompt and effective responses can avert further crises
and instability and can alleviate the suffering of the
victims of displacement.
(7) It is imperative that the United States have the
resources and the flexibility to be able to provide effective
and immediate assistance in this regard.
(b) Purposes of Assistance.--Assistance under this chapter
may be made available to--
(1) provide assistance to or on behalf of refugees,
conflict victims, displaced persons, and other victims of
forced migration, who are outside the United States,
including assistance on behalf of those persons who will be
considered for admission to the United States and for the
initial reintegration of persons who have been repatriated to
their countries of origin;
(2) contribute to the activities of the United Nations High
Commissioner for Refugees, the International Organization for
Migration, the International Committee of the Red Cross, the
United Nations Relief and Works Agency for Palestine Refugees
in the Near East, and other relevant organizations and
institutions; and
(3) provide such other assistance as may be necessary to
promote the prevention and solution of refugee and other
migration problems, in countries of origin as well as in
countries of asylum, and including for resettlement and
demining efforts.
(c) Emergency Refugee and Migration Assistance.--
(1) Whenever the President determines it to be important to
the national interest he is authorized to furnish assistance
for the purposes of section 4102 when such needs are
unexpected and urgent.
(2) There is established a United States Emergency Refugee
and Migration Assistance Fund to carry out the purposes of
this subsection. There is authorized to be appropriated to
the President from time to time such amounts as may be
necessary for the fund to carry out the purposes of this
subsection. The President shall promptly notify the Congress
concerning the use of funds under this subsection.
(d) Waiver of Restrictions on Assistance.--The President
may carry out activities under this chapter notwithstanding
any other provision of law.
SEC. 4102. AVAILABILITY OF FUNDS.
Funds shall be available to carry out the provisions of
this chapter as authorized and appropriated to the President
each fiscal year.
Chapter 2--Disaster Assistance
SEC. 4201. POLICY
(a) Humanitarian Concerns and Traditions of the American
People.--Prompt United States assistance to alleviate human
suffering caused by natural and manmade disasters is a
longstanding tradition and an important expression of the
humanitarian interest of the people of the United States. The
willingness of the United States to provide assistance
through bilateral, multilateral, and people-to-people means
for the relief and rehabilitation of people and countries
affected by such disasters is hereby reaffirmed.
(b) Reaching Those Most in Need.--In carrying out this
chapter, the President shall insure that, to the greatest
extent possible, the assistance provided by the United States
reaches those most in need of relief and rehabilitation as a
result of natural and manmade disasters.
SEC. 4202. AUTHORITY TO PROVIDE ASSISTANCE.
(a) In General.--The President is authorized to furnish
assistance for international disaster relief and
rehabilitation. Such assistance may include assistance
relating to disaster preparedness, prevention, and
mitigation, and to the prediction of, and contingency
planning for, natural and manmade disasters abroad.
(b) Nonapplicability of Other Provisions.--Assistance may
be furnished under this chapter notwithstanding any other
provision of this or any other Act.
(c) Borrowing Authority.--
(1) Authority.--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 available to
carry out other titles of this Act for use in providing
assistance in accordance with the authorities and general
policies of this chapter.
(2) Reimbursement.--Amounts subsequently
appropriated to carry out 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.
(d) Reconstruction.--A portion of the funds made available
to carry out this section may be used, in addition to amounts
otherwise available for such purposes, to respond rapidly to
reconstruction and institution-building needs arising from
natural or manmade disasters.
SEC. 4203. AVAILABILITY OF FUNDS.
Funds shall be available to carry out the provisions of
this chapter as authorized and appropriated to the President
each fiscal year.
Chapter 3--Emergency Food Assistance
SEC. 4301. STATEMENT OF POLICY REGARDING EMERGENCY FOOD
ASSISTANCE UNDER PUBLIC LAW 480, TITLE II.
(1) The United States continues to provide leadership in
addressing famine and other urgent or extraordinary worldwide
relief needs.
(2) In particular, the use of United States agricultural
commodities through bilateral and multilateral channels to
meet emergency food needs has saved lives, ameliorated
suffering, and has been a tangible expression of the best in
the humanitarian spirit of the American people.
(3) This assistance is often provided in conjunction with
assistance furnished under the other chapters of this title
to provide a comprehensive program of relief for those less
fortunate that we who are refugees or other victims of forced
migration, or are suffering the consequences of natural or
manmade disasters.
TITLE V--PROMOTING GROWTH THROUGH TRADE AND INVESTMENT
SEC. 5001. STATEMENT OF POLICY.
(1) In an increasingly interdependent world, the security
and well-being of the United States will be shaped by the
ability of the United States to compete and prosper in a
global economy.
(2) The United States remains committed to the principles
of free trade among nations as the most effective means to
promote expanding international markets and global economic
prosperity.
(3) Economic growth and creation of employment
opportunities in the United States are directly and
materially enhanced by international economic growth and
trade liberalization.
(4) United States trade and investment represent a powerful
means of promoting economic growth and development and
emerging economies and economies in transition. Expanding
United States trade and investment opportunities in the
markets of the future is best sustained by free-market
orientation and sustained developmemt in those countries.
(5) The twin tracks of commercial engagement and longer-
term sustainable development represent complementary means of
advancing United States interests by creating a more
prosperous, therefore more secure, world.
(6) The provision of a comprehensive and coordinated
program of export financing, investment insurance, guaranties
and feasibility studies significantly enhances the ability of
the private sector to pursue trade and investment
opportunities in developing countries.
Chapter 1--Overseas Private Investment Corporation
SEC. 5101. PURPOSE AND POLICY.
(a) Purpose.--The Overseas Private Investment Corporation
shall be an agency of the United States under the foreign
policy guidance of the Secretary of State. The purpose of the
Corporation is to mobilize and facilitate the participation
of United States private capital and skills in the economic
and social development of less developed friendly countries
and areas, and countries in transition from nonmarket to
market economies, thereby complementing the development
assistance objectives of the United States, facilitating the
competitiveness of the United States private sector, and
promoting United States economic growth.
(b) Development, Export, and Per Capita Income Criteria.--
The Corporation, in determining whether to provide insurance,
reinsurance, or financing for a project, shall especially--
(1) be guided by the economic and social development impact
and benefits of such a project and the ways in which such a
project complements, or is compatible with, other development
assistance programs or projects of the United States or other
donors;
(2) give preference to projects which promote United States
exports and increase United States economic growth; and
(3) give preferential consideration to investment projects
in countries that have per capita incomes of $1,230 or less
in 1992 United States dollars; and restrict its activities in
countries with per capita incomes of $5,335 or more in 1992
United States dollars (other than countries designated as
beneficiary countries under section 212 of the Caribbean
Basin Economic Recovery Act (19 U.S.C. 2702)).
(c) Guidelines for Activities of OPIC.--In carrying out its
purpose, the Corporation, utilizing broad criteria, shall
undertake--
(1) to conduct insurance, reinsurance, and financing
operations on a self-sustaining basis, taking into account in
its financing operations the economic and financial soundness
of projects;
(2) to utilize private credit and investment institutions
and the Corporation's financing authority as the principal
means of mobilizing capital investment funds;
(3) 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;
(4) to conduct its insurance operations with due regard to
principles to risk management, including efforts to share its
insurance risks and reinsurance risks;
(5) to consider in the conduct of its operations the extent
to which the governments of less developed countries 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;
(6) to foster private initiative and competition and
discourage monopolistic practices;
(7) to further to the greatest degree possible, in a manner
consistent with its goals, the balance-of-payments and
economic and employment objectives of the United States;
(8) to conduct its activities in consonance with the
international trade, investment, and financial policies of
the United States Government, and to seek to support those
developmental projects having positive trade benefits for the
United States; and
(9) 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. 5102. INVESTMENT INSURANCE, FINANCING, AND OTHER
PROGRAMS.
(a) Investment Insurance.--
(1) Risks for which insurance issued.--The Corporation is
authorized 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 in the project, in whole or in
part, or as compensation for the sale or disposition of all
or any part of the investment.
(B) Loss of investment, in whole or in part, in the
approved project due to expropriation or confiscation by
action or a foreign government.
(C) Loss due to war, revolution, insurrection, or civil
strife.
(D) Loss due to business interruption caused by any of the
risks set forth in subparagraphs (A), (B), and (C).
(2) Risk sharing arrangements with foreign governments and
multilateral organizations.--Recognizing that major private
investments in emerging democracies, economies in
transformation and less developed friendly countries or areas
are often made by enterprises in which there is multinational
participation, including significant United States private
participation, the Corporation may make arrangements with
foreign governments (including agencies, instrumentalities,
and political subdivisions thereof) and with multilateral
organizations and institutions for sharing liabilities
assumed under investment insurance for such investments and
may, in connection with such arrangements, issue insurance to
investors not otherwise eligible for insurance under this
chapter, except that--
(A) liabilities assumed by the Corporation under the
authority of this paragraph shall be consistent with the
purposes of this chapter, and
(B) the maximum share of liabilities so assumed shall not
exceed the proportionate participation by eligible investors
in the project.
(3) Maximum contingent liability with respect to single
investor.--Not more than 10 percent of the maximum contingent
liability for investment insurance which the Corporation is
permitted to have outstanding under section 5104(a)(1) shall
be issued to a single investor.
(4) Other insurance functions.--
(A) In general.--The Corporation is authorized to--
(i) make and carry out contracts of insurance or
reinsurance, or agreements to associate or share risks, with
insurance companies, financial institutions, any other
persons, or groups thereof, and
(ii) employ such insurance companies, financial
institutions, other persons, or groups, where appropriate, as
its agent, or to act as their agent, in the issuance and
servicing of insurance, the adjustment of claims, the
exercise of subrogation rights, the ceding and accepting
of reinsurance, and in any other matter incident to an
insurance business, except that such agreements and
contracts shall be consistent with the purposes of the
Corporation set forth in section 5101 and shall be on
equitable terms.
(B) Risk-sharing agreements.--The Corporation is authorized
to enter into pooling or other risk-sharing agreements with
multilateral insurance or financing agencies or groups of
such agencies.
(C) Ownership interest in risk-sharing entities.--The
Corporation is authorized to hold an ownership interest in
any association or other entity established for the purposes
of sharing risks under investment insurance.
(b) Investment Financing.--
(1) Direct lending.
(A) In general.--The Corporation is authorized to make
loans in United States dollars, repayable in dollars, and to
make loans in foreign currencies, to firms privately owned or
of mixed private and public ownership, upon such terms and
conditions as the Corporation may determine.
(B) Use of loan for new technologies, products, or
services.--The Corporation may designate up to 25 percent of
any loan under this subsection of use in the development or
adaptation in the United States of new technologies or new
products or services that are to be used in the project for
which the loan is made and are likely to contribute to the
economic or social development of less developed countries.
(2) Equity investment.
(A) In general.--The Corporation is authorized to purchase,
invest in, or otherwise acquire equity securities or
securities with equity characteristics of any firm or entity,
upon such terms and conditions as the Corporation may
determine, to be funded in the same manner as direct loans
under the Federal Credit Reform Act of 1990 for the purpose
of providing capital for any project which is consistent with
the provisions of this chapter, except that--
(i) the aggregate amount of the Corporation's equity
investment with respect to any project shall not exceed 30
percent of the aggregate amount of all equity investment made
with respect to such project at the time that the
Corporation's equity investment is made, except for
securities acquired through the enforcement of any lien,
pledge, or contractual arrangement as a result of a default
by any party under any agreement relating to the terms of the
Corporation's investment; and
(ii) the Corporation's equity investment under this
paragraph with respect to any project, when added to any
other investments made or guaranteed by the Corporation under
this paragraph with respect to such project, shall not cause
the aggregate amount of all such investment to exceed, at the
time any such investment is made or guaranteed by the
Corporation, 75 percent of the total investment committed to
such project as determined by the Corporation. Such
determination under this clause shall be conclusive for
purposes of the Corporation's authority to make or guarantee
any such investment.
(B) Additional criteria.--In making investment decisions
under this paragraph, the Corporation shall give
consideration to the extent to which the Corporation's equity
investment will assist in obtaining the financing required
for such projects.
(C) Disposition of equity interest.--Taking into
consideration, among other things, the Corporation's
financial interests and the desirability of fostering the
development of local capital markets in emerging democracies,
economies in transformation and less developed countries, the
Corporation shall endeavor to dispose of any equity interest
it may acquire under this subsection within a period of 10
years from the date of acquisition of such interest.
(3) Investment guarantee.
(A) Authority.--The Corporation is authorized to issue to
eligible investors guarantees 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, subject to subparagraphs (B), (C), and (D).
(B) Guarantees on other than loan investments.--A guarantee
issued under subparagraph (A) on other than a loan investment
may not exceed 75 percent of such investment.
(C) Limit on amount of investment guaranteed.--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) for which
guarantees are issued under subparagraph (A) with respect to
any project shall not exceed, at the time of issuance of any
such guarantee, 75 percent of the total investment
committed to any such project as determined by the
Corporation. Such determination by the Corporation shall
be conclusive for purposes of the Corporation's authority
to issue any such guarantee.
(D) Maximum contingent liability with respect to single
investor.--Not more than 15 percent of the maximum contingent
liability for investment guarantees which the Corporation is
permitted to have outstanding under section 5104(a)(2) may be
issued to a single investor.
(c) Investment Encouragement.--The Corporation is
authorized 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, using wherever feasible and
effective the facilities of private investors, except that
the Corporation shall not finance any survey to ascertain the
existence, location, extent, or quality of oil or gas
resources.
(d) Special Activities.--The Corporation is authorized 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, 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 8201 of this Act or from other sources,
public or private.
SEC. 5103. ENHANCING PRIVATE POLITICAL RISK INSURANCE
INDUSTRY.
In order to encourage greater availability of political
risk insurance for eligible investors by enhancing the
private political risk insurance industry in the United
States, and to the extent consistent with this chapter, the
Corporation shall undertake programs of cooperation with such
industry, and in connection with such programs may engage in
the following activities:
(1) Utilizing its statutory authorities, encourage the
development of associations, pools, or consortia of United
States private political risk insurers.
(2) Share insurance risks (through coinsurance, contingent
insurance, or other means) in a manner that is conducive to
the growth and development of the private political risk
insurance industry in the United States.
(3) Notwithstanding section 8544(e), upon the expiration of
insurance provided by the Corporation for an investment,
enter into risk-sharing agreements with United States private
political risk insurers to insure any such investment; except
that, in cooperating in the offering of insurance under this
paragraph, the Corporation shall not assume responsibility
for more than 50 percent of the insurance being offered in
each separate transaction.
SEC. 5104. ISSUING AUTHORITY AND RESERVES.
(a) Issuing Authority.--
(1) Insurance.--The maximum contingent liability
outstanding at any one time pursuant to insurance issued
under section 5102(a) shall not exceed in the aggregate
$15,000,000,000.
(2) Financing.--The Corporation is authorized to commit
investment financing under section 5102(b) of up to
$5,000,000,000 for the period of fiscal years beginning
October 1, 1994, terminating on the date specified in
paragraph (3).
(3) Termination of authority.--The authority of subsection
(a) and (b) of section 5102 shall continue until September
30, 1999.
(b) Insurance Reserve.--
(1) Maintenance and purposes.--The Corporation shall
maintain an insurance reserve. Such reserve shall be
available for the discharge of liabilities, as provided in
subsection (d), until such time as all such liabilities have
been discharged or have expired or until such reserve has
been expended in accordance with the provisions of this
section.
(2) Funding.--The insurance reserve shall consist of--
(A) any funds in the insurance reserve of the Corporation
on September 30, 1993,
(B) amounts transferred to the reserve pursuant to this
Act, and
(C) such sums as are appropriated pursuant to subsection
(d) of this section for such purposes.
(c) Order of Payments To Discharge Liabilities.--Any
payment made to discharge liabilities under investment
insurance or reinsurance issued under section 5102, under
similar predecessor guarantee authority, or under 5103, 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 subsection (d) of this section. Any
payments made to discharge liabilities under guarantees
issued under section 5102(b) shall be paid in accordance with
the Federal Credit Reform Act of 1990.
(d) Availability of Funds.--
(1) Availability.--Subject to paragraph (2), funds shall be
available to carry out the provisions of this chapter as
authorized and appropriated to the President to replenish or
increase the insurance reserve, to discharge the liabilities
under insurance or reinsurance issued by the Corporation, or
to discharge obligations of the Corporation purchased by the
Secretary of the Treasury pursuant to subsection (e).
(2) Limitation on appropriations.--No appropriation shall
be made under paragraph (1) to augment the insurance reserve
until the amount of funds in the insurance reserve is less
than $25,000,000. Any appropriations to augment the insurance
reserve shall then only be made to satisfy the full faith and
credit provision of section 8545(c).
(e) Issuance of Obligations.--In order to discharge
liabilities under investment insurance or reinsurance, the
Corporation is authorized to issue from time to time for
purchase by the Secretary of the Treasury its notes,
debentures, bonds, or other obligations; except that the
aggregate amount of such obligations outstanding at any one
time may not exceed $100,000,000. Any such obligation shall
be repaid to the Treasury within one year after the date of
issue of such obligation. Any such obligation shall bear
interest at a rate determined by the Secretary of the
Treasury, taking into consideration the current average
market yield on outstanding marketable obligations of the
United States of comparable maturities during the month
preceding the issuance of any obligation authorized by this
subsection. The Secretary of the Treasury shall purchase any
obligation of the Corporation issued under this subsection,
and for such purchase the Secretary may use as a public debt
transaction the proceeds of the sale of any securities issued
under chapter 31 of title 31, United States Code. The purpose
for which securities may be issued under chapter 31 of title
31, United States Code, shall include any such purchase.
SEC. 5105. GUIDELINES AND REQUIREMENTS FOR OPTIC SUPPORT.
(a) Development Impact Profile.--In order to carry out the
policy set forth in section 5101(b)(1), the Corporation shall
prepare and maintain for each investment project it insures,
reinsures, or finances a development impact profile
consisting of data appropriate to measure the projected and
actual effects of such project on development.
(b) Small Business Development.--
(1) Broadened participation by small businesses.--The
Corporation shall undertake, in cooperation with appropriate
departments, agencies, and instrumentalities of the United
States as well as private entities and others, to broaden the
participation of United States small business, cooperatives,
and other small United States investors in the development of
small private enterprise in less developed friendly countries
or areas.
(2) Preferential consideration.--The Corporation shall
undertake to the maximum degree possible consistent with its
purposes--
(A) to give preferential consideration in its investment
insurance, reinsurance, financing, and investment
encouragement activities to investment projects sponsored by
or involving United States small business or cooperatives;
(B) to maintain the proportion of projects sponsored by or
significantly involving United States small business to at
least 30 percent of all projects insured, reinsured, financed
or encouraged by the Corporation.
(c) Environmental Considerations.--
(1) Environmental, health, or safety hazard.--The
Corporation shall refuse to insure, reinsure, or finance any
investment in connection with a project which the Corporation
determines will pose an unreasonable or major environmental,
health, or safety hazard, or will result in the significant
degradation of national parks or similar protected areas.
(2) Resource sustainable development.--The Corporation, in
determining whether to provide insurance, reinsurance, or
financing for a project, shall ensure that the project is
consistent with the goals set forth in section 7210 of this
Act.
(3) Environmental impact statements and assessments.--The
requirements of section 7210(b) relating to environmental
impact statements and environmental assessments shall apply
to any investment which the Corporation insures, reinsures,
guarantees, or finances under this chapter in connection with
a project in a country.
(4) Notification of foreign governments.--Before finally
providing insurance, reinsurance, guarantees, or financing
under this chapter for any environmentally sensitive
investment in connection with a project in a country, the
Corporation shall notify appropriate government officials of
that country of--
(A) all guidelines and other standards adopted by the
International Bank for Reconstruction and Development and any
other international organization relating to the public
health or safety or the environment which are applicable to
the project; and
(B) to the maximum extent practicable, any
restriction under any law of the United States relating to
public health or safety or the environment that would
apply to the project if the project were undertaken in the
United States.
The notification under the preceding sentence shall include
a summary of the guidelines, standards, and restrictions
referred to in subparagraphs (A) and (B).
(5) Consideration of comments received.--Before finally
providing insurance, reinsurance, or financing for any
investment subject to paragraph (4), the Corporation shall
take into account any comments it receives on the project
involved.
(d) Human Rights.--The Corporation shall take into account
in the conduct of its programs in a country, in consultation
with the Secretary of State, all available information about
observance of and respect for human rights and fundamental
freedoms in such country and the effect the operation of such
programs will have on human rights and fundamental freedoms
in such country.
(e) Worker Rights.--
(1) Limitation on opic activities.--The Corporation may
insure, reinsure, or finance a project only if the country in
which the project is to be undertaken is taking steps to
adopt and implement laws that extend internationally
recognized worker rights, as defined in section 502(a)(4) of
the Trade Act of 1974 (19 U.S.C. 2462(a)(4)), to workers in
that country (including any designated zone in that country).
The Corporation shall also include the following language, in
substantially the following form, in all contracts which the
Corporation enters into with eligible investors to provide
financial support under this chapter:
``The investor agrees not to take actions to prevent
employees of the foreign enterprise from lawfully exercising
their right of association and their right to organize and
bargain collectively. The investor further agrees to observe
applicable laws relating to a minimum age for employment of
children, acceptable conditions of work with respect to
minimum wages, hours of work, and occupational health and
safety, and not to use forced labor. The investor is not
responsible under this paragraph for the actions of a foreign
government.''.
(2) Use of annual reports on worker rights.--The
Corporation shall, in making its determinations under
paragraph (1), use the reports submitted to the Congress
pursuant to section 505(c) of the Trade Act of 1974 (19
U.S.C. 2465(c)).
(3) Waiver.--Paragraph (1) shall not prohibit the
Corporation from providing any insurance, reinsurance, or
financing with respect to a country if the President
determines that such activities by the Corporation would be
in the national economic interests of the United States. Any
such determination shall be reported in writing to the
Congress, together with the reasons for the determination.
(f) Harm to Employment in the United States.--
(1) Replacement of united states production.--(A) The
Corporation shall refuse to insure, reinsure, or finance an
investment if the Corporation determines that such investment
is likely to cause such investor (or the sponsor of an
investment project in which such investor is involved)
significantly to reduce the number of the investor's or
sponsor's employees in the United States because the investor
or sponsor is replacing his or her United States production
with production from such investment, and the production from
such investment involves substantially the same product for
substantially the same market as the investor's or sponsor's
United States production.
(B) If the Corporation determines that an investment is not
likely to have the effects described in subparagraph (A), the
Corporation shall monitor conformance with the
representations made by the investor on which the Corporation
relied in making that determination.
(2) Reduction of employees in the united states.--The
Corporation shall refuse to insure, reinsure, or finance an
investment if the Corporation determines that such investment
is likely to cause a significant reduction in the number of
employees in the United States.
(3) Export processing zones.--Notwithstanding any other
provision of law, the Corporation shall refuse to insure,
reinsure, or finance an investment for the purpose of
establishing or developing in a foreign country any export
processing zone or designated area in which the tax, tariff,
labor, environment, and safety laws of that country do not
apply, in part or in whole, to activities carried out within
that zone or area, unless such assistance is not likely to
cause a loss of jobs within the United States as determined
in consideration of the restrictions contained in paragraphs
(1) and (2).
(g) Performance Requirements.--The Corporation shall refuse
to insure, reinsure, or finance an investment which is
subject to performance requirements which would reduce
substantially the positive trade benefits likely to accrue to
the United States from the investment.
(h) Prohibited Trade Practices.--
(1) Payments to violators barred.--No payment may be made
under any insurance or reinsurance which is issued under this
chapter on or after April 24, 1978, for any loss occurring
with respect to a project, if the preponderant cause of such
loss was an act by the investor seeking payment under this
chapter, by a person possessing majority ownership and
control of the investor at the time of the act, or by any
agent of such investor or controlling person, and a court of
the United States has entered a final judgment that such act
constituted a violation of section 30A of the Securities
Exchange Act of 1934 or section 104 of the Foreign Corrupt
Practices Act of 1977.
(2) Regulations.--The Corporation shall have in effect
regulations setting forth appropriate conditions under which
any person who has been finally determined by a court of the
United States to have violated section 30A of the Securities
Exchange Act of 1934 or section 104 of the Foreign Corrupt
Practices Act of 1977 shall be suspended, for a period of not
more than 5 years, from eligibility to receive any insurance,
reinsurance, guarantee, financing, or other financial support
authorized by this chapter, if that violation related to a
project insured, reinsured, guaranteed, financed, or
otherwise supported by the Corporation under this chapter.
(i) Fraud or Misrepresentation.--No payment may be made
under any guarantee, insurance, or reinsurance issued under
this chapter for any loss arising out of fraud or
misrepresentation for which the party seeking payment is
responsible.
(j) Public Hearing.--The Board shall hold at least one
public hearing each year in order to afford an opportunity
for any person to present views as to whether the Corporation
is carrying out its activities in accordance with this
chapter 1 and this section or whether any investment in a
particular country shall have been or shall be extended
insurance, reinsurance, or financing under this chapter.
(k) Restrictions.--Restrictions in this or any other Act to
the government of a country do not apply with respect to this
title.
Chapter 2--Trade and Development Agency
SEC. 5201. PURPOSES.
The Trade and Development Agency shall be an agency of the
United States under the foreign policy guidance of the
Secretary of State. The purpose of the Trade and Development
Agency is to promote United States private sector
participation in developing and middle-income countries.
SEC. 5202. AUTHORITY TO PROVIDE ASSISTANCE.
(a) Authority.--The Director of the Trade and Development
Agency is authorized to work with foreign countries to carry
out the purposes of this chapter by providing funds for
feasibility studies, architectural and engineering design,
and other activities related to development projects which
provide opportunities for the use of United States exports.
(b) Use of Funds.--Funds under this chapter may be used to
provide support for feasibility studies for planning,
development, and management of, and procurement for,
bilateral and multilateral development projects, including
training activities undertaken in connection with a project,
for the purpose of promoting the use of United States goods
and services in such projects. Funds under this chapter may
also be used for architectural and engineering design,
including--
(1) concept design, which establishes the basic technical
and operational criteria for a project, such as architectural
drawings for a proposed facility, evaluation of site
constraints, procurement requirements, and equipment
specifications; and
(2) detail design, which sets forth specific dimensions and
criteria for structural, mechanical, electrical, and
architectural operations, and identifies other resources
required for project operations.
(c) Information Dissemination.--
(1) The Trade and Development Agency shall disseminate
information about its project activities to the private
sector.
(2) Other agencies of the United States Government shall
cooperate with the Trade And Development Agency in order for
the Agency to provide more effectively informational services
to persons in the private sector concerning trade and
development and export promotion related to development
projects.
(d) Nonapplicability of other provisions.--Funds made
available to carry out this chapter may be made available
notwithstanding any other provision of law.
SEC. 5203. AVAILABILITY OF FUNDS.
Funds shall be available to carry out the provisions of
this chapter as authorized and appropriated to the President
each fiscal year.
Chapter 3--Role of Related Programs
SEC. 5301. STATEMENT OF POLICY REGARDING ROLE OF P.L. 480
TITLE I PROGRAMS.
(1) P.L. 480 Title I programs provide an important resource
in the efforts of the United States to support continued
growth in the world economy.
(2) By using the abundant agricultural productivity of the
United States to enhance the food security of developing
countries, these programs complement other international
programs of the United States to--
(A) help to combat world hunger and malnutrition and their
causes,
(B) promote broad-based, equitable, and sustainable
development,
(C) expand international trade, and
(D) develop and expand export markets for United States
agricultural commodities.
(3) By fostering the demand for United States agricultural
commodities and helping to meet the food needs of developing
countries that have difficulty meeting those needs through
commercial channels, P.L. 480 Title I programs are an
integral part of United States efforts to encourage expansion
of the world economy and the participation of the United
States private sector in that expansion.
SEC. 5302. STATEMENT OF POLICY REGARDING ROLE OF EXPORT-
IMPORT BANK.
(1) While the Export-Import Bank of the United States does
not provide foreign assistance, its programs can complement
sustainable development programs in helping to expand United
States exports.
(2) The purpose of the Export-Import Bank of the United
States is to provide financing support for United States
exports, thereby creating and maintaining jobs in the United
States.
(3) The role of the Export-Import Bank of the United States
is an important factor in bolstering global free trade and
fair trade, and its programs help to level the global playing
field in export financing.
(4) The Export-Import Bank of the United States is an
important supplement to the private sector's export financing
capacities for creating and maintaining jobs.
(5) With one out of every six manufacturing jobs in the
United States dependent on exports, it is necessary to
promote trade with both existing and developing markets.
(6) The programs of the Export-Import Bank of the United
States serve to provide inroads for United States exporters
into developing country markets.
(7) The role of the Export-Import Bank of the United States
in providing trade and project finance supports United States
domestic employment and global economic growth and
development.
TITLE VI--ADVANCING DIPLOMACY
SEC. 6001. STATEMENT OF POLICY.
(1) Success in achieving the goals of this Act depends
above all on the skills of those who serve America in the
Department of State and other United States government
departments and agencies engaged in international programs.
(2) Diplomacy is the most cost-effective foreign policy
instrument for promoting American prosperity and safeguarding
United States security by managing crises and preventing
future conflict.
(3) United States leadership in addressing emerging global
challenges will depend increasingly on skillful diplomacy to
build cooperative arrangements with major allies and
multilateral organizations that leverage our political
influence, and our economic, technical, military and
humanitarian assistance.
(4) Diplomacy is essential to the realization of each of
the five other Titles of this Act--
(A) Promoting Sustainable Development requires integrated
and coordinated efforts between diplomats and aid specialists
to deal with immediate environmental, economic, and cultural
challenges and opportunities abroad while building the
foundation for long-term bilateral, regional and global
cooperation.
(B) Promoting Democracy requires foreign affairs
professionals in the Department of State and other United
States government departments and agencies engaged in
international programs to reach out beyond traditional
bilateral and multilateral relations to inform foreign
publics about the virtues and challenges of democracy and
market economics and to promote human rights, democratic
institution building, and development of open, civil
societies.
(C) Promoting Peace requires creative and sustained
diplomacy--backed by economic, technical, humanitarian and
military resources--to avert conflict, facilitate negotiated
resolution of disputes, and render peace processes
irreversible; and to build regimes to restrain proliferation,
narcotics trafficking, terrorism and other forms of criminal
activity.
(D) Humanitarian Assistance requires diplomats and
other involved United States government personnel to
respond promptly to facilitate bilateral relief, engage
relevant multilateral organizations, and ensure that
relief programs do not become objects of political
manipulation locally or among donor agencies; at the same
time, effective preventive diplomacy can forestall costly
political and military disasters.
(E) Promoting Growth Through Trade and Investment requires
diplomats with advanced technical knowledge, legal skills,
and shrewd political judgment to assist economic reform,
develop commercial opportunities, and structure regional and
global agreements to achieve more open markets and greater
economic integration.
(5) Advancing diplomacy in all of the above areas will
require--
(A) Funds that can be used flexibly by the President to
respond decisively to unforeseen opportunities and dangers
and for structuring new multilateral arrangements that can
become the basis for sustainable cooperation to prevent
future crises and solve long-term problems.
(B) Foreign assistance, public diplomacy abroad, and a
national consensus at home in support of the goals of
American foreign policy.
(C) Modern technology and infrastructure to support foreign
and civil service professionals who must deal with
international transactions that are rising exponentially in
volume, speed and complexity.
(D) Greater harmonization of our foreign affairs
institutions and instruments, with a view to avoiding
duplicative administrative structures, staffs and programs.
TITLE VII--SPECIAL AUTHORITIES, RESTRICTIONS ON ASSISTANCE, AND REPORTS
Chapter 1--Special Authorities
SEC. 7101. AUTHORITY TO TRANSFER BETWEEN ACCOUNTS.
(a) General Transfer Authority.--Whenever the President
determines it to be necessary for the purposes of this Act,
not to exceed 10 percent of the funds made available to carry
out any provision of this Act--
(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; and
(2) may be used for any of the purposes for which funds in
that account or fund may be used.
(b) Limitation on Amount of Increase in an Account.--The
total amount in the account or fund for the benefit of which
a 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 for such account or
fund.
(c) Exceptions.--
(1) The percentage limitations contained in subsections (a)
and (b) shall not be applicable with regard to transfers of
funds to carry out the provisions of subchapter A of chapter
1 of title II or of chapter 1 of title III.
(2) The authority of this section shall not be used to
transfer funds from amounts made available to carry out the
provisions of title I of this Act, except that the authority
of this section may be used to transfer such funds for the
purposes of section 8509 in an amount not to exceed 5 percent
of the amount of the funds made available for section
8509(a).
(d) Notification to Congress.--The authority of subsection
(a) may be exercised only if 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 are notified in
advance of the exercise of that authority.
SEC. 7102. SPECIAL WAIVER AUTHORITY.
(a) Authority.--The President may authorize the taking of
any action (or the refraining from the taking of any action)
under this Act, any annual (or periodic) foreign assistance
authorization or appropriations acts, or the Arms Export
Control Act without regard to any of the provisions described
in subsection (c) if he determines--
(1) in cases under the Arms Export Control Act, that to do
so is essential to the national interests of the United
States; and
(2) in any other cases under such Acts, that to do so is
important to the national interests of the United States.
(b) Other Acts.--The President may authorize the taking of
any action (or the refraining from the taking of any action)
under any other Act without regard to the provisions
described in paragraphs (1) and (2) of subsection (c), or of
any annual (or periodic) foreign assistance authorization or
appropriations Acts, if the President determines that to do
so is important to the national interest of the United
States.
(c) Laws Which May Be Waived.--The provisions referred to
in subsection (a) and (b) are--
(1) the provisions of this Act,
(2) the provisions of the Arms Export Control Act,
(3) any other provisions of law that restrict the authority
to provide assistance, make sales or leases, or take other
actions (or refrain from taking actions) under the Acts in
paragraphs (1) and (2), and
(4) any law relating to receipts and credits accruing to
the United States, except for those provisions of law
contained in section 8551(a)(7).
(d) Consultation With Congress.--Before exercising the
authority granted in this section, 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.
(e) Notification to Congress.--A determination under
subsection (a) or (b) shall be effective only if the
President notifies the Speaker of the House of
Representatives and the chairman of the Committee on Foreign
Relations of the Senate, in writing, of that determination.
(f) Annual Ceilings.--
(1) In general.--The authority of this section may not be
used in any fiscal year to authorize--
(A) more than $1,000,000,000 in sales or leases to be made
under the Arms Export Control Act;
(B) the use of more than $500,000,000 of funds made
available for use under this Act; and
(C) the use of more than $100,000,000 of foreign currencies
accruing under this Act or any other law.
(2) Sales under the arms export control act.--If the
authority of this section is used both to authorize a sale or
lease under the Arms Export Control Act and to authorize
funds to be used under this Act with respect to the financing
of that sale or lease, then the use of the funds shall be
counted against the limitation in paragraph (1)(B) and the
portion, if any, of the sale or lease which is not so
financed shall be counted against the limitation in paragraph
(1)(A).
(3) Leases.--For purposes of paragraph (1)(A) the
replacement cost, less any depreciation in the value, of the
defense articles authorized to be leased shall be counted
against the limitation in that paragraph.
(4) Country limits.--(A) Not more than $100,000,000 of the
$500,000,000 limitation provided in paragraph (1)(B) may be
allocated to any one country in any fiscal year unless that
country is a victim of active aggression.
(B) Not more than $750,000,000 of the aggregate limitation
of $1,500,000,000 provided in paragraphs (1)(A) and (1)(B)
may be allocated to any one country in any fiscal year.
SEC. 7103. UNANTICIPATED CONTINGENCIES.
(a) Authority.--Notwithstanding any other provision of law,
the President is authorized to use funds made available to
carry out any provision of this Act in order to furnish, for
any unanticipated contingency, assistance or contributions
authorized by any provision of this Act in accordance with
the provisions applicable to the furnishing of such
assistance or contributions.
(b) Annual Ceiling.--The authority of this section may not
be used to authorize the use of more than $100,000,000 during
any fiscal year.
(c) Report to Congress.--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 the authority of this
section is exercised.
(d) Prohibition on Gifts.--Funds used under the authority
of this section may not be used to pay for any gifts to any
official of any foreign government.
SEC. 7104. ASSISTANCE FOR LAW ENFORCEMENT AGENCIES.
(a) Statement of Policy.--
(1) In many countries, law enforcement agencies may lag
behind other institutions in their development as democratic
organizations and in their ability to contribute to civilian
order and may lack autonomy from military authorities.
(2) Absent external assistance and encouragement, such
agencies may, in fact, undermine civilian democratic rule.
(3) United States and international assistance to these
agencies may therefore be critical for the support of fragile
and emerging democracies.
(b) Uses of Assistance.--In addition to assistance provided
in support of the functions of law enforcement agencies under
chapter 4 of title III, assistance may be provided under
other provisions of this Act in support of the functions
of law enforcement agencies only:
(1) to reinforce the civilian democratic role of agencies
through, to the extent practicable as part of a larger effort
to support the development of the administration of justice
in the country--
(A) programs to enhance professionalism (including programs
to improve investigative and forensic capabilities, to
enhance protection of participants in judicial cases, and to
improve administrative and management functions);
(B) contacts with counterparts in established democracies;
and
(C) programs designed to enhance respect for human rights
and understanding of principles of civilian control in a
democratic society;
(2) to enhance the practical accountability of law
enforcement agencies to civil justice institutions;
(3) to improve penal institutions and the rehabilitation of
offenders when doing so is considered part of a larger
administration of justice program;
(4) to assist a country which has a democratic tradition,
does not have standing armed forces, and does not engage in a
consistent pattern of gross violations of internationally
recognized human rights;
(5) for maritime law enforcement and other maritime skills,
including training;
(6) to protect and maintain wildlife habitats and to
develop sound wildlife management and plant conservation
programs;
(7) to improve the functioning of customs agencies,
exclusive of traditional law enforcement activities;
(8) for assistance to police forces in connection with
their participation in the regional security system of the
Eastern Caribbean; and
(9) to meet the challenges described in section 2102(a)(3).
(c) Other Assistance.--Funds made available to carry out
the provisions of title I, and chapter 2 of title IV (insofar
as such funds are used for reconstruction activities), may be
used in support of law enforcement functions only pursuant to
subsections (b) (1), (2), and (6) of this section.
SEC. 7105. TERMINATION EXPENSES.
(a) In General.--Funds made available under this Act, the
former authority of the Foreign Assistance Act of 1961, the
former authority of section 23 of the Arms Export Control
Act, or other predecessor legislation shall remain available
for obligation for a period not to exceed 8 months from the
date of any termination of assistance under such Acts for the
necessary expenses of winding up programs related to such
termination and may remain available until expended. Funds
obligated under the authority of such Acts prior to the
effective date of the termination of assistance may remain
available for expenditure for the necessary expenses of
winding up programs related to such termination
notwithstanding any provision of law restricting the
expenditure of funds. In order to ensure the effectiveness of
such assistance, 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.
(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 that had been
funded with assistance under such Acts prior to the
termination of assistance.
(c) Termination Expenses.--Amounts certified as having been
obligated for assistance subsequently terminated by the
President, or pursuant to any provision of law, shall
continue to remain available and may be reobligated to meet
any necessary expenses arising from the termination of such
assistance.
(d) Guaranty Programs.--Provisions of this or any other Act
requiring the termination of assistance under this or any
other Act shall not be construed to require the termination
of guarantee commitments that were entered into prior to the
effective date of the termination of assistance.
(e) Relation to Other Provisions.--Unless specifically made
inapplicable by another provision of law, the provisions of
this section shall be applicable to the termination of
assistance pursuant to any provision of law.
SEC. 7106. EXEMPTION OF ASSISTANCE THROUGH NONGOVERNMENTAL
ORGANIZATIONS FROM RESTRICTIONS.
(a) Restrictions Not Applicable.--Subject to subsection
(c), restrictions contained in this or any other Act with
respect to assistance for a country shall not be construed to
restrict assistance in support of programs of nongovernmental
organizations or programs of international organizations or
arrangements.
(b) National Interest Criteria.--The President shall take
into consideration, in any case in which a restriction on
assistance would be applicable but for this section, whether
assistance for programs of nongovernmental organizations or
programs of international organizations or arrangements is in
the national interest of the United States.
(c) Notice to Congress.--Whenever the authority of this
section is used to furnish assistance for a program of a
nongovernmental organization or of an international
organization or arrangement, the President shall notify 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. Such notification shall
describe the program assisted, the assistance provided, and
the reasons for furnishing such assistance.
SEC. 7107. EXEMPTION OF TRAINING ACTIVITIES FROM
PROHIBITIONS.
Provisions of this or any other Act shall not be construed
to prohibit assistance for any training activity funded under
this Act for a country as long as that country has a
democratically elected government and the assistance is
otherwise consistent with section 7201(a)(1), section
7201(a)(2) and section 7201(a)(5).
SEC. 7108. NONAPPLICABILITY TO DEFENSE ASSISTANCE OF CERTAIN
NEUTRALITY ACT PROVISIONS.
The functions authorized under this Act may be performed
without regard to such provisions as the President may
specify of the Neutrality Act of 1939.
SEC. 7109. EXEMPTION FROM PROHIBITIONS FOR ASSISTANCE TO
ADDRESS CERTAIN SPECIAL NEEDS.
(a) Exemption.--Unless expressly provided to the contrary,
provisions of this or any other Act, including provisions in
previously enacted legislation, shall not be construed to
prohibit the following activities:
(1) meeting the needs of individuals with disabilities;
(2) addressing the needs of displaced children;
(3) child survival activities;
(4) the prevention and control of acquired immune
deficiency syndrome (AIDS);
(5) environmentally sound, sustainable resource management,
and more efficient energy systems;
(6) reconstruction as a result of natural or manmade
disasters; or
(7) helping to reduce excessive population growth rates.
(b) Exceptions.--Subsection (a) does not apply to
governments of countries to which assistance is prohibited
under paragraphs (2) and (5) of section 7201(a).
SEC. 7110. AUTHORITY TO CONDUCT REIMBURSABLE PROGRAMS.
(a) General Authority.--Whenever the President considers it
consistent with and within the limitations of this Act, any
agency of the United States Government is authorized to
furnish services and articles on an advance-of-funds or
reimbursement basis to friendly countries, international
organizations and arrangements, and nongovernmental
organizations and may contract in advance of appropriations
or reimbursement of such purposes.
(b) Personal Service Contracts.--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 in a
manner otherwise permitted by law (or Office of Management
and Budget Circular A-76 or any successor circular) 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 Office of Personnel Management.
(c) Limitations on Assistance Not Applicable.--Limitations
in this or any other Act on assistance do not apply with
respect to this section.
(d) Use of Payments.--Advances and reimbursements received
under this section may either be credited to the currently
applicable appropriation, account, or fund of the agency
concerned or shall be available until expended.
SEC. 7111. DRAWDOWN AUTHORITY.
(a) Unforeseen Emergencies.--If the President determines
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,
the President may direct, for the purposes of this Act, the
drawdown of articles and services, of an aggregate value not
to exceed $100,000,000 in any fiscal year, from the inventory
and resources of the Department of Defense.
(b) Special Circumstances.--If the President determines
that it is in the national interest of the United States to
do so, the President may direct the drawdown of articles and
services, of an aggregate value not to exceed $150,000,000 in
any fiscal year, from the inventory and resources of any
agency of the United States Government for the purposes and
under the authorities of--
(1) chapter 4 of title III of this Act;
(2) chapter 1 of title IV of this Act; or
(3) chapter 2 of title IV of this Act.
(c)(1) The authority of this section may be exercised only
if 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 are notified in advance of the
exercise of that authority.
(2) Continuing information.--The President shall keep the
Congress fully and currently informed of all articles and
services provided under this section.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the President such sums as may be
necessary to reimburse the applicable appropriation, fund, or
account for articles and services provided under this
section.
SEC. 7112. INTEREST ACCRUING TO NONGOVERNMENTAL
ORGANIZATIONS.
Upon the approval of the President, a nongovernmental
organization may place in an interest bearing account--
(1) funds made available on a grant basis under this Act
(or predecessor legislation); and
(2) local currencies which accrue to that organization as a
result of grant assistance provided under this Act (or
predecessor legislation) or assistance under titles I through
III of the Agricultural Trade Development and Assistance Act
of 1954, section 416(b) of the Agricultural Act of 1949, or
the Food for Progress Act of 1985.
Any interest so earned may be retained by the nongovernmental
organization and used for the purpose for which the
assistance was provided to that organization, which may
include support for an endowment.
SEC. 7113. DEVELOPMENT EDUCATION.
The President may use funds made available for sustainable
development assistance under this Act to support development
education programs, with emphasis on those conducted by
private voluntary organizations and cooperatives, in order to
assist in the education of United States citizens about
developing countries, the development process, the
interdependence of developed and developing countries, and
the importance to the United States of developing countries.
SEC. 7114. STRENGTHENING THE CAPACITY OF NONGOVERNMENTAL
ORGANIZATIONS, INCLUDING RESEARCH AND
EDUCATIONAL INSTITUTIONS.
The President may use funds made available for assistance
under this Act to furnish assistance to nongovernmental
organizations, including research and educational
institutions, in the United States and abroad for the purpose
of strengthening their capacity to develop and carry out
programs concerned with the economic and social development
of developing countries.
SEC. 7115. VIOLATIONS OF INTERNATIONAL HUMANITARIAN LAW.
(a) Authority for Use of Funds.--The President may use
funds made available to carry out the purposes of chapters 1
and 4 of title III of this Act to support activities of
international tribunals, commissions, or panels to
investigate or prosecute persons responsible for genocide,
crimes against humanity, and other violations of
international humanitarian law.
(b) Drawdown Authority.--If the President determines that
doing so is important to support the activities described in
subsection (a), the President may direct the drawdown of
articles and services, of an aggregate value not to exceed
$25,000,000 in any fiscal year, from the inventory and
resources of any agency of the United States.
(c) Reimbursement.--There are authorized to be appropriated
to the President such sums as may be necessary to reimburse
the applicable appropriation, fund, or account for articles
and services provided under this subsection (b).
SEC. 7116. LAWS RELATING TO CONTRACTS AND GOVERNMENT
EXPENDITURES.
Whenever the President determines it to be in furtherance
of the purposes of this Act, the functions authorized under
this Act may be performed without regard to such
provisions of law regulating the making, performance,
amendment, or modification of contracts and the
expenditure of funds of the United States Government as
the President may specify, except for those provisions
contained in section 8551(a)(7) of this Act.
SEC. 7117. TRANSPORTATION CHARGES INCURRED BY THE RED CROSS
AND NONGOVERNMENTAL ORGANIZATIONS.
In order to further the efficient use of United States
voluntary contributions for development and for relief and
rehabilitation in furtherance of the purposes of this Act,
the President may use funds made available for assistance
under this Act, to pay transportation charges on shipments by
the American National Red Cross and by United States
nongovernmental organizations.
Chapter 2--Restrictions on Assistance SEC. 7201. INELIGIBLE COUNTRIES.
(a) Restrictions.--Except as provided in subsection (b),
assistance under this Act may not be furnished to the
government of a country that is:
(1) Communist countries.--A communist country, as
designated under subsection (d).
(2) Human rights violators.--A country described in
subsection (e).
(3) Expropriation of United States Property.--A country
whose government--
(A) has on or after January 1, 1962--
(i) expropriated the property of any United States person,
(ii) repudiated or nullified any contract with any United
States person, or
(iii) taken any other action (such as discriminatory taxes
or other exactions) which has the effect of seizing ownership
or control of the property of any United States person, and
(B) has not within a reasonable period of time provided
adequate and effective compensation or is not engaged in good
faith efforts to negotiate a settlement, if the United States
person has exhausted host country legal and other formal
remedies.
(4) Military coups.--A country whose duly-elected Head of
Government is deposed by military coup or decree unless
subsequent to the military coup or decree a democratically-
elected government has taken office.
(5) Terrorist countries.--A country whose government the
President determines repeatedly provides support for acts of
international terrorism.
(6) Major illicit drug producing or major drug transit
countries.--A country described in section 7206.
(7) Countries in Arrears.--A country that is more than one
year in arrears to the United States Government on any
payment of interest or principal on any loan made or credit
extended under this Act, the Arms Export Control Act, or the
former authorities of the Foreign Assistance Act of 1961.
(b) Exceptions.--
(1) In general.--Funds may be obligated and expended for
assistance restricted by subsection (a), or other provisions
of law that restrict assistance to countries, under any of
the following circumstances:
(A) National interest.--The President determines that the
furnishing of such assistance is important to the national
interests of the United States.
(B) Alleviating suffering resulting from a disaster.--The
assistance is for the alleviation of suffering resulting from
a natural or manmade disaster.
(C) Directly benefitting the needy.--The assistance will
directly benefit the needy people in the country.
(D) Refugees and displaced persons.--The assistance is for
the purposes described in section 4101(b).
(E) Promoting human rights and democracy.--The assistance
will be furnished through nongovernmental organizations to
directly promote increased respect for internationally
recognized human rights and the development of democracy.
(2) With respect to the restrictions imposed by subsection
(g) or any other provision of law to which this subsection
applies, references in this subsection to furnishing
assistance shall be deemed to include the taking of other
action that, but for this subsection, would be restricted by
such provision.
(c) Report to Congress.--Assistance restricted by
subsection (a) may not be provided under subsection (b) until
the President has submitted to the Speaker of the House of
Representatives and the chairman of the Committee on Foreign
Relations of the Senate, a report with respect to such
assistance. Any such report shall include a detailed
explanation of the assistance to be provided, including the
estimated dollar amount of such assistance, and an
explanation of how the assistance meets the criteria
specified in subsection (b).
(d) Communist Country List.--
(1) Establishment.--The President shall designate those
countries that are Communist countries for purposes of
subsection (a)(1).
(2) Publication of list.--The initial list of countries
designated pursuant to this subsection shall be published in
the Federal Register and shall be provided to the Congress.
Thereafter, any additions to or deletions from such list
shall be similarly published and provided.
(3) Removal of countries from the list; exemptions.--The
President may remove a country from the Communist country
list established pursuant to this section, or may exempt a
listed country from the application of subsection (a)(1) or
other provisions of law that reference subsection (a)(1), if
the President promptly reports such removal or exemption to
the Speaker of the House of Representatives and the chairman
of the Committee on Foreign Relations of the Senate.
(e) Human Rights Violators.--
(1) Ineligibility.--Subsection (a)(2) shall apply to any
country the government of which engages in a consistent
pattern of gross violations of internationally recognized
human rights.
(2) Matters to be considered.--In implementing subsection
(a)(2), consideration shall be given to the following:
(A) The relevant findings of appropriate international
organizations and nongovernmental organizations.
(B) The extent of cooperation by the government in question
in permitting an unimpeded investigation by indigenous
nongovernmental organizations, other nongovernmental
organizations, and international organizations (such as the
International Committee of the Red Cross), of alleged
violations of internationally recognized human rights.
(C) Specific actions that have been taken by the President
or the Congress relating to the human rights practices of the
government in question.
(D) The likely effect that a determination of ineligibility
under this subsection is expected to have on the human rights
process of the country concerned.
(f) Terrorist Countries.--The President shall promptly
report to the Speaker of the House of Representatives and the
chairman of the Committee on Foreign Relations of the Senate
the rescission of a determination that the government of a
country repeatedly provides support for acts of international
terrorism.
(g) Related Restrictions on Assistance.--
(1) Human rights violators.--Subsection (a)(2) shall be
deemed to prohibit, in addition to the furnishing of
assistance under this Act--
(A) sales of defense articles, defense services, or design
and construction services under the Arms Export Control Act;
(B) licenses under section 38 of the Arms Export Control
Act 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; and
(C) licenses required under the Export Administration Act
of 1979 for the export of crime control and detection
instruments and equipment.
(2) Terrorist countries.--Subsection (a)(5) shall be deemed
to prohibit, in addition to the furnishing of assistance
under this Act, the furnishing of assistance under the
Agricultural Trade Development and Assistance Act of 1954 and
the Peace Corps Act, and the provision of loans, guaranties,
and insurance under the Export-Import Bank Act of 1945.
(3) Major illicit drug producing and major drug transit
countries.--
(A) Subsection (a)(6) shall be deemed to prohibit, in
addition to the furnishing of assistance under this Act, (i)
sales under the Arms Export Control Act, (ii) the provision
of agricultural commodities other than food under the
Agricultural Trade Development and Assistance Act of 1954,
and (iii) loans, guarantees and insurance under the Export-
Import Bank Act of 1945.
(B) Notwithstanding subparagraph (A), subsection
(a)(6) shall not be deemed to prohibit (i) disaster relief
assistance, refugee assistance or assistance that involves
the provision of food (including monetization of food) or
medicine (including any such assistance provided under
title IV), and (ii) assistance for narcotics education and
awareness activities.
(C) With respect to any country for which assistance is
prohibited under section (a)(6), the President should
instruct the United States Executive Director of the
International Bank for Reconstruction and Development, the
United States Executive Director of the International
Development Association, the United States Executive Director
of the Inter-American Development Bank, and the United States
Executive Director of the Asian Development Bank to vote,
during the period in which assistance is prohibited under
subsection (a)(6), 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,
except as provided in subsection (b).
SEC. 7202. IMPACT OF FOREIGN ASSISTANCE PROGRAMS ON JOBS IN
THE UNITED STATES.
Funds made available to carry out the provisions of this
Act may not be made available to provide--
(1) any financial incentive to a business enterprise
located in the United States for the purpose of inducing that
enterprise to relocate outside the United States if such
incentive or inducement is likely to reduce the number of
individuals employed in the United States by that enterprise
because that enterprise would replace production in the
United States with production outside the United States;
(2) assistance for the purpose of establishing or
developing in a foreign country any export processing zone or
designated area in which the tax, tariff, labor, environment,
and safety laws of that country do not apply, in part or in
whole, to activities carried out within that zone or area,
unless the President determines and certifies that such
assistance is not likely to cause a loss of jobs within the
United States; or
(3) assistance for any project or activity that contributes
to the violation of internationally recognized workers rights
(as defined in section 502(a)(4) of the Trade Act of 1974) of
workers in the recipient country, including in any designated
zone or area in that country.
In recognition that the application of paragraph (3) should
be commensurate with the level of development of the
recipient country and sector, that paragraph does not
preclude assistance for the informal section in such country,
for microenterprises and small-scale enterprises, or for
small-holder agriculture.
SEC. 7203. FAMILY PLANNING ACTIVITIES.
Funds made available to carry out this Act may not be--
(1) used to coerce any person to practice abortions; or
(2) used to pay for the performance of involuntary
sterilizations or to coerce or provide any financial
incentive to any person to undergo sterilizations.
SEC. 7204. COMPETITION WITH UNITED STATES EXPORTS.
In determining whether to provide assistance under this
Act, the President should take into consideration whether
such assistance would be furnished for direct support for any
project or activity that is specifically designed to increase
exports of any agricultural, textile, or apparel commodity
from a developing country where such exports--
(1) would be in direct competition with United States
exports, and
(2) can reasonably be expected to cause substantial injury
to United States exporters of the same or substantially
similar commodity.
SEC. 7205. NUCLEAR NONPROLIFERATION.
(a) Nuclear Enrichment Transfers.--
(1) Except as provided in paragraph (2) of this subsection,
no funds made available to carry out the provisions of this
Act may be used for the purpose of providing assistance, to
any country that, on or after the date of enactment of the
International Security Assistance Act of 1977, delivers
nuclear enrichment equipment, materials, or technology to a
nonnuclear weapon state or, if a nonnuclear weapon state,
receives such equipment, materials, or technology from any
other country, unless before such delivery--
(A) 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
(B) 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.
(2)(A) Notwithstanding paragraph (1) of the subsection, 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--
(i) the termination of such assistance would have a serious
adverse effect on vital United States interests; and
(ii) the President has received reliable assurances that
the country in question will not acquire or develop nuclear
weapons or assist other nations in doing so.
A certification under subparagraph (A) of this paragraph
shall set forth the reasons supporting such determination in
each particular case.
(B) A certification under subparagraph (A) of this
paragraph 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 joint 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.
(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 any such resolution after
it has been reported by the appropriate committee shall be
treated as highly privileged in the House of Representatives.
(b) Nuclear Reprocessing Transfers, Illegal Exports for
Nuclear Explosive Devices.--
(1) Except as provided in paragraph (2) of this subsection,
no funds made available to carry out the provisions of this
Act may be used for the purpose of providing assistance to
any country that--
(A) on or after the date of enactment of the International
Security Assistance Act of 1977, delivers nuclear
reprocessing equipment, materials, or technology to a
nonnuclear weapon state or, if a nonnuclear weapon state,
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, or technologies which are alternatives to pure
plutonium reprocessing); or
(B) is a nonnuclear-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; for
purposes of this subparagraph, an export or attempted export
by a person who is an agent of, or is otherwise acting on
behalf of or in the interest of, a country shall be
considered to be an export or attempted export by that
country.
(2) Notwithstanding paragraph (1) of this subsection, the
President may furnish assistance which would otherwise be
prohibited under that paragraph if the President 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 day on which the
certification is received by the Congress. However, if within
30 calendar days after receiving this certification, the
Congress adopts a joint 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 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.
(C) For the purpose of expediting the consideration and
adoption of joint 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) Transfers of Nuclear Explosive Devices and Nuclear
Detonations.--
(1) Except as provided in paragraphs (2) and (3) of this
subsection, no funds made available to carry out the
provisions of this Act may be used for the purpose of
providing assistance to any country that, on or after the
date of enactment of the International Security Assistance
Act of 1977--
(A) transfers a nuclear explosive device to a nonnuclear-
weapon state, or
(B) is a nonnuclear-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 the President 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 subparagraph (3) of this subsection shall, if introduced
in either House within 30 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 a joint resolution 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 7205(c)(2) of the Peace, Prosperity, and Democracy
Act of 1994 with respect to, the Congress hereby authorizes
the President to exercise the waiver authority contained in
section 7205(c)(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 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.
(d) As used in this section, the term ``nonnuclear-weapon
state'' means any country which is not a nuclear-weapons
state, as defined in article IX(3) on the Treaty on the Non-
Proliferation of Nuclear Weapons.
(e) Pakistan.--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 possess 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. 7206. MAJOR ILLICIT DRUG PRODUCING AND DRUG TRANSIT
COUNTRIES.
(a) Application of Restriction.--Section 7201(a)(6) shall
apply to any major illicit drug producing country and any
major drug-transit country if the President determines, at
the time of the submission of the report required by section
7303, that during the previous fiscal year the country has
not cooperated with the United States, and has otherwise not
taken adequate steps to control the illicit cultivation,
production, and smuggling of, trafficking in, and abuse of
narcotic and psychotropic drugs. The President may rescind
such a determination, and section 7201(a)(6) shall cease to
apply, if the President subsequently determines that the
country has resumed cooperating with the United States, or
otherwise has taken adequate steps to control the illicit
cultivation, production, and smuggling of, trafficking in,
and abuse of narcotic and psychotropic drugs.
(b) Withholding.--For any country that was a major illicit
drug producing or drug-transit country (as defined in
sections 8551(a) (11) and (12)) during the previous fiscal
year, the President may withhold from obligation or
expenditure up to fifty percent of assistance which is
allocated to such country each fiscal year in the report
required by section 7304 until the determination provided for
in section 7206 is made.
(c) In implementing subsection (a), the President should
consider the extent to which the country has--
(1) accomplished the goals described in an applicable
bilateral narcotics agreement with the United States or a
multilateral agreement;
(2) investigated and immobilized major organizations
involved in the production, processing, or distribution of
narcotics and dangerous drugs;
(3) achieved significant increases in seizures of the
proceeds and instrumentalities of the illicit drug trade;
(4) achieved significant reductions, where applicable, in
the net production of illicit narcotic crops through forced
or voluntary eradication efforts;
(5) prevented and punished the laundering in that country
of drug-related moneys;
(6) prevented and punished public corruption 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;
(7) processed expeditiously United States and other
extradition requests related to narcotics trafficking;
(8) increased public awareness of the heinous nature of
drug abuse and reduced the demand and the consumption of
narcotics and dangerous drugs;
(9) if it is a producer of licit opium, taken steps to
prevent significant diversion of its licit cultivation and
production into the illicit market, to maintain production of
stockpiles at levels no higher than those consistent with
licit market demands, and to prevent illicit cultivation and
production.
SEC. 7207. ASSISTANCE FOR ELECTIONS.
Funds made available for assistance under this Act that are
used to enhance the independence and performance of electoral
processes may not be used for the purpose of influencing the
outcome of any election in any country.
SEC. 7208. ASSIGNMENT OF PERSONNEL.
(a) Assignment or Detail.--Members of the Armed Forces may
be assigned or detailed to perform functions related to
assistance under this Act administered through the Department
of Defense, provided they not perform duties of a combatant
nature, including any duty related to training and advising
that may engage United States Armed Forces personnel in
combat activities, outside the United States in connection
with the performance of those defense services.
(b) Exception.--The limitation contained in subsection (a)
shall not apply if the President determines, and reports to
the Congress, that its application would not be in the
national interest of the United States.
SEC. 7209. ASSISTANCE LIMITED TO ECONOMIC PROGRAMS.
(a) In General.--Assistance provided under title I of this
Act may not be used for military or paramilitary purposes.
(b) Exception for Certain Programs.--The provisions of
subsection (a) of this section shall not apply to economic
assistance involving the participation of military personnel
in training activities, conferences, and other sustainable
development programs consistent with the purposes of section
1102.
SEC. 7210. IMPACT OF SUSTAINABLE DEVELOPMENT ASSISTANCE ON
ENVIRONMENT AND NATURAL RESOURCES.
(a) Statement of Policy.--It is the sense of the Congress
that--
(1) the economic and social well-being and the security of
the United States and other countries are affected by how
the world's environment and physical resource base are
managed, and that consumption patterns, systems of
industrial and agricultural production, and the manner of
use of natural resources all have an impact on the
opportunities for long-term development and growth and
survival for all countries;
(2) environmentally responsible management of physical
resources is necessary by both developed and developing
countries to insure their availability for future generations
and to assure that the burdens of improved resource
management do not fall disproportionately on the poor;
(3) sustainable development is development that meets the
needs of the present without compromising the ability of
future generations to meet their own needs; and
(4) sustainable development programs authorized by this Act
should assist countries to adopt policies and to carry out
programs that promote economic growth that is environmentally
sound.
(b) Impact Assessment.--The President, in implementing
sustainable development programs under this Act, should 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 should--
(1) prepare and take fully into account an initial
environmental examination of every program or project to
determine whether it significantly affects the environment;
(2) prepare and take fully into account an environmental
impact statement for any program or project 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
(3) prepare and take fully into account an environmental
assessment of any proposed program or project significantly
affecting the environment of any foreign country.
Where appropriate, local technical resources should be used
in preparing environmental impact statements and
environmental assessments pursuant to this section.
(c) Exceptions.--The President should establish exceptions
for emergency conditions and for cases in which
implementation of procedures described in subsection (b)
would be seriously detrimental to the foreign policy
interests of the United States.
Chapter 3--Reports and Notifications to Congress
SEC. 7301. CONGRESSIONAL PRESENTATION DOCUMENTS.
(a) Requirement for Submission.--The President shall
prepare, and submit to the Congress in a timely manner,
annual congressional documents for the programs authorized
under titles I, II, and III of this Act.
(b) Materials To Be Included.--The documents submitted
pursuant to subsection (a) shall include--
(1) the rationale for the allocation of assistance or
contributions to each country, regional, or centrally funded
program, or activities under section 3102;
(2) a description of how each program or activity under
section 3102 supports the objectives of the title for which
such program is being justified including, for programs
administered by the United States Agency for International
Development, to the extent determined at the time of
submission of these documents, the strategic objectives for
such programs; and
(3) a description of planned country, regional, or
centrally funded programs or activities under section 3102
for the coming fiscal year.
SEC. 7302. HUMAN RIGHTS POLICY AND REPORTS.
(a) Promotion of Human Rights.--It is the sense of the
Congress that the United States should, 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.
(b) Conduct of Assistance.--In furtherance of subsection
(a), the President should formulate and conduct United States
assistance in a manner which will--
(1) promote and advance human rights;
(2) strengthen a relationship between civilian and military
sectors appropriate to a democratic system of government; and
(3) avoid identification of the United States, through
these 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.
(c) Matters To Be Considered.--In carrying out subsection
(b) and in preparing the annual reports required by
subsection (d), consideration should be given to the
following:
(1) The relevant findings of appropriate international
organizations and nongovernmental organizations.
(2) The extent of cooperation by the government in question
in permitting an unimpeded investigation by indigenous
nongovernmental organizations, other nongovernmental
organizations, and international organizations (such as the
International Committee of the Red Cross), of alleged
violations of internationally recognized human rights.
(d) Annual Human Rights Report.--In furtherance of
subsections (a) and (b), the President shall transmit to the
Congress, not later than January 31 each year, a full and
complete report with respect to practices regarding the
status of internationally recognized human rights, regarding
whether the country engages in a consistent pattern of gross
violations of internationally recognized human rights within
the meaning of section 8551(a)(5). The report shall be
submitted with respect to every foreign country that is a
member of the United Nations. Wherever appropriate, such
reports shall include information on practices regarding
coercion in population control, including coerced abortion
and involuntary sterilization. The report shall also include
the steps taken to alter United States programs under this
Act in any country because of human rights considerations.
(e) Information To Be Provided.--Each annual report under
subsection (d), shall include--
(1) information about observance of and respect for human
rights and fundamental freedom in the country in question,
and
(2) a detailed description of practices by the recipient
government with respect to human rights and fundamental
freedom, including where appropriate information provided by
organizations, including nongovernmental organizations.
SEC. 7303. INTERNATIONAL NARCOTICS CONTROL 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
comprehensive report on the state of international narcotics
production and trafficking, and on United States efforts to
prevent the illicit cultivation and manufacture of and
trafficking in narcotics and psychotropic drugs and other
controlled substances.
SEC. 7304. ANNUAL ALLOCATION REPORT.
(a) Report on Allocations of Assistance.--Not later than 30
days after the enactment of any law appropriating funds to
carry out any provision of this Act, the President shall
notify the Congress of--
(1) each foreign country and international organization to
which the United States Government intends to provide any
portion of the funds under such law; and
(2) the amount of funds under that law, by category of
assistance, that the United States Government intends to
provide to each such country or organization.
(b) Exceptions.--Subsection (a) does not apply with respect
to--
(1) funds appropriated under section 8509 or section 8510
(relating to operating expenses of the United States Agency
for International Development and the Inspector General of
that agency, respectively); or
(2) any law making continuing appropriations.
(c) Use of Special Authority.--The authority of section
7201 of this Act may not be used to waive the provisions of
this section.
SEC. 7305. NOTIFICATION OF PROGRAM CHANGES.
(a) Notification of Program Changes.--Unless 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
are notified at least fifteen days in advance, funds
appropriated for a fiscal year to carry out this Act may not
be obligated for any assistance or contributions under any
title of this Act--
(1) for programs administered by the United States Agency
for International Development under title I--
(A) for a country, regional, or centrally funded program
for which assistance under that title was not justified in
congressional presentation documents for that fiscal year;
(B) for a country, regional, or centrally funded program in
excess of the amount justified under that title in
congressional presentation documents or allocated pursuant to
section 7304 for that fiscal year;
(C) for a project or activity not previously justified to
such Committees or, in the case of programs that are
administered through strategic objectives, for a new
strategic objective for a country, regional or centrally
funded program; or
(D) for a nonproject assistance activity, including
commodity import program assistance;
(2) for assistance administered through the Department of
Defense under this Act--
(A) for a country, international organization or
arrangement, for which assistance under that title was not
justified in congressional presentation documents for that
fiscal year;
(B) in excess of the amount allocated pursuant to section
7304 for that country, organization or arrangement, under
that title for that fiscal year; or
(C) for the provision of major defense equipment, other
than conventional ammunition, or other major defense items
defined to be aircraft, ships, missiles, or combat vehicles
not previously justified to Congress or twenty percent in
excess of the quantities justified to Congress.
(3) for other programs under this Act--
(A) for a country, international organization or
arrangement, or operation for which assistance or
contribution under that title was not justified in
congressional presentation documents for that fiscal year;
(B) in excess of the amount allocated pursuant to section
7304 for that country or organization or arrangement under
that title for that fiscal year; or
(C) for a project, activity, or operation not previously
justified, or in excess of the amount previously justified,
to such Committees.
(b) Appropriations Subject to Requirements.--Subsection (a)
applies with respect to all funds appropriated for assistance
and contributions under this Act other than--
(1) chapters 1 and 2 of title V (relating to the Overseas
Private Investment Corporation and the Trade and Development
Agency, respectively),
(2) section 1104 (relating to the micro and small
enterprise development, housing and urban, and other guaranty
programs),
(3) programs for refugee assistance and for disaster relief
and rehabilitation, including assistance programs under title
IV of this Act.
(c) Emergency Exceptions.--
(1) Waiver.--Subsection (a), or any similar requirement to
provide advance notification to the Congress or Congressional
committees, may be waived if the President determines that
doing so is necessitated by emergency circumstances.
(2) Exercise of authority.--In the case of any waiver under
paragraph (1) notification to the Congress or the appropriate
Congressional committees shall be provided as early as
practicable, but in no event later than three days after
taking the action to which such notification requirement was
applicable. Any notification under this paragraph shall
contain an explanation of the circumstances necessitating the
use of the authority of this subsection.
SEC. 7306. EVALUATION AND MONITORING OF PROGRAM PERFORMANCE.
(a) Need for Evaluation.--In order to effectively and
responsibly manage the resources made available for
sustainable development purposes, the President must have a
capacity to evaluate objectively the extent of progress in
achieving development results and to derive lessons from that
development experience.
(b) Actions To Be Taken.--In furtherance of subsection (a),
the President shall establish a program performance,
monitoring, and evaluation capacity within the United States
Agency for International Development that will do the
following:
(1) Enhance, through training and other means, the use of
program performance, monitoring, and evaluation as a
management tool, by both the agency and its counterparts in
countries receiving assistance, in the planning, designing,
and implementation of foreign assistance projects and
programs.
(2) Develop a program performance information system to
afford agency managers at all levels, and counterparts in
countries receiving assistance, a means for monitoring and
assessing achievement of impact and interim performance of
the agency's major programs in support of the strategic
management of economic assistance.
(3) Prepare and disseminate objective and periodic reports
on the progress of the agency in meeting development
objectives and on lessons learned from its development
programs and assure the widest possible distribution of
findings, particularly to beneficiaries of projects and
programs.
(4) Establish a system which ensures the incorporation of
evaluation findings in decisions of the agency about program
direction and resource allocation.
(c) The President shall prepare an annual report to the
Congress to include the following:
(1) An assessment of progress toward the achievement of
sustainable development objectives, based on the findings of
program performance monitoring and evaluation studies
conducted by the United States Agency for International
Development and on such other empirical analyses as may be
appropriate.
(2) An analysis, on a country-by-country basis, of the
results of sustainable development in each country receiving
assistance under title I from such Agency, including a
discussion of the United States interests and objectives that
were served by such assistance.
TITLE VIII--GENERAL PROVISIONS
Chapter 1--Exercise and Coordination of Functions
SEC. 8101. DELEGATIONS BY THE PRESIDENT.
(a) In General.--The President may exercise any functions
conferred upon the President by this Act through such agency
or officer of the United States Government as the President
shall direct.
(b) Authority To Issue Regulations and Delegate.--The head
of any agency or such officer exercising functions under this
Act--
(1) may from time to time promulgate such rules and
regulations as may be necessary to carry out such functions;
and
(2) may delegate authority, including to any other agency
upon obtaining the concurrence of the head of that agency, to
perform any such functions, including, if he or she shall so
specify, the authority successively to redelegate any such
functions.
SEC. 8102. ROLE OF THE SECRETARY OF STATE.
(a) Continuous Supervision.--Under the direction of the
President, the Secretary of State shall be responsible for
the continuous supervision and general direction of
assistance under this Act, including determining whether such
assistance shall involve the provision of defense articles
and defense services, to the end that all such assistance is
effectively integrated both at home and abroad and the
foreign policy of the United States is best served thereby.
(b) Powers and Functions.--Nothing in this Act shall be
construed to infringe upon the powers and functions of the
Secretary of State.
SEC. 8103. THE SECRETARY OF DEFENSE.
(a) With respect to assistance under this Act administered
through the Department of Defense, the Secretary of Defense
shall have primary responsibility for--
(1) the determination of military end-item requirements;
(2) the procurement of military equipment in a manner which
permits its integration with service programs;
(3) the monitoring of end-item use by the recipient
countries;
(4) the supervision of the training of foreign military and
related civilian personnel;
(5) the movement and delivery of military end-items; and
(6) within the Department of Defense the performance of any
other functions with respect to the furnishing of assistance
administered through the Department of Defense under this
Act.
(b) The establishment of priorities in the procurement,
delivery, and the allocation of military equipment shall be
determined by the Secretary of Defense.
SEC. 8104. UNITED STATES AGENCY FOR INTERNATIONAL
DEVELOPMENT.
The United States Agency for International Development
shall be an agency of the United States under the foreign
policy guidance and subject to the supervision and direction
of the Secretary of State.
SEC. 8105. THE DIRECTOR OF THE ARMS CONTROL AND DISARMAMENT
AGENCY.
Decisions to furnish assistance administered through the
Department of Defense under subchapter A, chapter 1, title
II, and chapter 3, title III 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 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. 8106. AUTHORITY TO ESTABLISH OFFICES ABROAD.
The President may maintain offices or staffs outside the
United States in such countries and for such period of time
as may be necessary to carry out this Act.
SEC. 8107. PRESIDENTIAL FINDINGS AND DETERMINATIONS.
(a) Findings and Determinations To Be Written and Signed.--
In any case in which the President is required to make a
report by any provision of this Act, the Arms Export Control
Act, or any annual or periodic foreign assistance authorizing
or appropriations legislation, to the Congress or to any
committee or officer of either House of Congress concerning
any finding or determination, that finding or determination
shall be reduced to writing and signed by the President.
(b) Restriction.--No action shall be taken pursuant to any
such finding or determination prior to the date on which that
finding or determination is reduced to writing and signed by
the President.
(c) Publication in Federal Register.--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.
Chapter 2--Administrative Authorities
Subchapter A--General Authorities
SEC. 8201. ALLOCATION OF FUNDS AND REIMBURSEMENT AMONG
AGENCIES.
(a) Allocations or Transfers to Agencies.--The President,
or with respect to funds appropriated to any agency, the head
of such agency, as the case may be, may allocate or transfer
to any agency of the United States Government any funds
available for providing assistance under this or any other
Act, including any advance to the United States Government by
any country or international organization for the procurement
of articles or services. Such funds shall be available for
obligation and expenditure for the purposes for which
authorized, in accordance with the authority pursuant to
which they were made available or the authority governing the
activities of the agency to which such funds are allocated or
transferred.
(b) Procurement From Other Agencies.--
(1) Authority.--Any officer of the United States Government
carrying out functions under this Act may utilize the
services and the facilities of, or procure articles from, any
agency of the United States Government as the President shall
direct, or with the consent of the head of such agency.
(2) Separate account.--Funds allocated pursuant to this
subsection to any such agency may be established in separate
appropriation accounts on the books of the Treasury.
(c) Reimbursement to Agencies.--
(1) General.--In the case of any article, service, or
facility procured from any agency of the United States
Government to carry out any provision of this Act (except
with respect to assistance under sections 3103, 3204 and
7111, 7115(b)), reimbursement or payment shall be made to
such agency from funds available to carry out that provision.
(2) Amount of reimbursement.--Such reimbursement or payment
shall be at--
(A) replacement cost,
(B) if required by law, actual cost,
(C) in the case of defense articles procured from the
Department of Defense, value as defined in section 8551(20),
or, if required by law, actual costs,
(D) in the case of services procured from the Department of
Defense, the amount of the additional costs incurred by the
Department of Defense in providing such services, or, if
required by law, actual costs, or
(E) at any other cost agreed to by the owning or disposing
agency.
(3) Crediting of reimbursement.--The amount of any such
reimbursement or payment shall either be credited to current
applicable appropriations, funds, or accounts of such agency,
to be available for the same purposes and for the same time
period as the appropriation, fund or account to which
transferred, or any such credited funds shall remain
available for such purposes until expended.
(4) Limitation on department of defense drawdowns.--During
any fiscal year, the aggregate value of articles and services
of which the President may direct the drawdown from the
inventory and resources of the Department of Defense may not
exceed--
(A) $50,000,000 under section 3103,
(B) $15,000,000 under section 3204,
(C) $75,000,000 under section 7111(b), and
(D) $5,000,000 under section 7115(b).
(d) Reimbursement to the Department of Defense.--
Reimbursement or payment to the Department of Defense under
subsection (c) shall exclude salaries of members of the Armed
Forces (other than the Coast Guard) and unfunded estimated
costs of civilian retirement and other benefits, unless
otherwise required by law.
(e) Establishment of Accounts.--
(1) Authority to establish; uses.--In furnishing assistance
under this or any other Act, accounts may be established on
the books of any agency of the United States Government or,
on terms and conditions approved by the Secretary of the
Treasury, in banking institutions in the United States--
(A) against which letters of commitment may be issued which
shall constitute recordable obligations of the United States
Government, and moneys due or to become due under such
letters of commitment shall be assignable under the last
sentence of section 3727(b) and section 3727(c) of title 31,
United States Code, and the second and third paragraphs of
section 3737 of the Revised Statutes of the United States (41
U.S.C. 15); and
(B) from which disbursements may be made to, or withdrawals
may be made by, recipient countries or agencies,
organizations, or persons upon presentation of contracts,
invoices, or other appropriate documentation.
(2) Accounting for expenditures.--Expenditure of funds
which have been made available through accounts established
under paragraph (1) shall be accounted for on standard
documentation required for expenditure of funds of the United
States Government.
(f) Charging to Appropriations.--
(1) Initial charging.--Any appropriation or account
available to carry out provisions of this Act may initially
be charged in any fiscal year, within the limit of available
funds, to finance expenses for which funds are available in
other appropriations or accounts under that title.
(2) Final charging.--As of the end of such fiscal year,
such expenses shall be finally charged to applicable
appropriations or accounts with proper credit to the
appropriations or accounts initially utilized for financing
purposes, except that such final charges shall not be
required in the case of expenses (other than those provided
under sections 8509 and 8510) incurred in furnishing
assistance where it is determined that the accounting costs
of identifying the applicable appropriation or account to
which such expenses should be charged would be
disproportionate to the advantage to be gained.
(3) Application to programs administered through dod.--This
subsection shall not apply to assistance administered through
the Department of Defense under this Act.
(g) Responsibility of Agencies.--The agency receiving the
funds pursuant to the authority of subsections (a) or (b)
shall be the agency responsible for the management and use of
such funds.
SEC. 8202. GENERAL AUTHORITIES.
(a) Terms of Assistance.--Except as otherwise specifically
prohibited in this Act, assistance under this Act may be
furnished on a grant, loan, or guaranty basis, or on such
terms, including cash, credit, or other terms or repayment
(including repayment in foreign currencies or by transfer to
the United States Government of articles), or as a
contribution to an international organization or arrangement,
as may be determined to be best suited to the achievement of
the purposes of this Act.
(b) Terms and Conditions.--The President may furnish
assistance under this Act on such terms and conditions
(consistent with other provisions of law) as the President
deems appropriate, and, consistent with the provisions of
this Act, may charge such fees for guarantees and loans under
this Act as the President deems appropriate. Credit
assistance shall be consistent with the provisions of the
Federal Credit Reform Act of 1990. In the case of
contributions or other assistance provided for an
international organization or arrangement under this or any
other Act, such organization or arrangement may utilize its
own procurement, administrative, accounting, and audit rules
and procedures.
(c) Advances Contracts, Etc.--In furtherance of the
purposes and subject to the limitations of this Act, the
President in providing assistance under this or any other Act
may make loans (in conformity with the provisions of the
Federal Credit Reform Act of 1990), advances, and grants to,
make and perform agreements and contracts with, or enter into
other transactions with, any person, corporation, or other
body of persons, any government or government agency, and any
international organization or arrangement.
(d) Gifts.--The President may accept and use in furtherance
of the purposes of this Act, money, funds, property, and
services of any kind made available by gift, devise, bequest,
grant, or otherwise for such purpose.
(e) Insurance.--
(1) Foreign participants.--Any agency of the United States
Government is authorized to pay the cost of health and
accident insurance for foreign participants in any program
of furnishing assistance administered by such agency while
such participants are absent from their homes for the
purpose of participation in such program.
(2) Foregin employees.--Any agency of the United States
Government is authorized to pay the cost of health and
accident insurance for foreign employees of that agency while
those employees are absent from their places of employment
abroad for purposes of training or other official duties.
(f) Admission to United States.--Alien participants in any
program of furnishing assistance under this Act may be
admitted to the United States if otherwise qualified as
nonimmigrants under section 101(a)(15) of the Immigration and
Nationality Act (8 U.S.C. 1101(A)(15)), for such time and
under such conditions as may be prescribed by regulations
promulgated by the Secretary of State and the Attorney
General.
(g) Assistance Authorities.--In furnishing and
administering assistance under this Act, the President--
(1) may issue letters of credit and letters of commitment;
(2) may collect, compromise, reschedule or otherwise settle
any obligations assigned to, or held by, and any legal or
equitable rights accruing to, the President and may (as the
President deems appropriate) refer any such obligations or
rights to the Attorney General for suit or collection;
(3) may--
(A) acquire and dispose of (upon such terms and conditions
as the President deems appropriate) any property, including
any instrument evidencing indebtedness or ownership, and
(B) guarantee payment against any such instrument;
(4) may establish the character of, and decide the
necessity for, obligations and expenditures of funds used in
furnishing and administering such assistance and the manner
in which such obligations and expenditures shall be incurred,
allowed, and paid, subject to provisions of law specifically
applicable to corporations of the United States Government;
(5) shall cause to be maintained an integral set of
accounts which shall be audited by the General Accounting
Office in accordance with principles and procedures
applicable to commercial corporate transactions as provided
by chapter 91 of title 31, United States Code;
(6) may transfer such of the funds appropriated or
otherwise made available under titles II and III of this Act
as the President may determine for assistance to a recipient
country 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. Sales which are wholly
paid from funds made available on a nonrepayable basis and
transferred under his paragraph, from funds made available
under the former authority of section 503(a)(3) of the
Foreign Assistance Act of 1961, or from funds made available
on a non-repayable basis under the former authority of
section 23 of the Arms Export Control Act shall be priced to
exclude the costs of salaries of members of the Armed Forces
of the United States (other than the Coast Guard).
(h) Guarantees.--Guarantees issued to carry out the
purposes of this Act shall be subject to the following:
(1) Full faith and credit.--The full faith and credit of
the United States may be pledged for the full payment and
performance of guarantees issued under this Act or
predecessor legislation.
(2) Charges.--The President may charge appropriate fees
and/or interest in connection with the activities carried out
under such authority.
(3) Relationship to other provisions of law.--Guarantees
may be provided under this Act without regard to section 8402
of this Act.
(4) Denomination of liability.--The losses guaranteed may
be in dollars or in other currencies. In the case of losses
guaranteed in currencies other than dollars, the guarantees
issued shall be subject to an overall payment limitation
expressed in dollars.
(i) Subsidy Cost of Guarantees and Loans.--The President
may use funds made available under this Act to pay the cost
(as defined in section 13201 of the Budget Enforcement Act of
1990) of direct loans and loan guarantees made or entered
into (and associated administrative costs) in furtherance of
the purposes of this Act. Funds appropriated to pay the cost
(as defined in section 13201 of the Budget Enforcement Act of
1990) of direct loans and loan guarantees made or entered
into to carry out the provisions of this Act shall be
provided in conformity with section 504(b)(1) of the Federal
Credit Reform Act of 1990.
(j) Claims Relating to Guarantees.--Claims arising as a
result of any guarantee program authorized by this Act may be
settled, and disputes arising as the result thereof may be
arbitrated with the consent of the parties, on such terms
and conditions as the President may direct. 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.
(k) Financial Transactions With Foreign Governments in
Default of Obligations to the United States.--Section 955 of
title 18, United States Code, shall not apply to any person--
(1) who acts for or participates in any operation or
transaction arising under this Act, or
(2) who acquires any obligation issued in connection with
any operation or transaction arising under this Act.
(l) Educational Institutions.--Any cost-type contract or
agreement (including grants) entered into with an institution
of higher education for the purpose of carrying out programs
authorized by this Act may provide for the payment of the
reimbursable indirect costs of that institution on the basis
of predetermined fixed-percentage rates applied to the total
or an element thereof, of the reimbursable direct costs
incurred.
(m) Training Working Capital Fund.--The head of any agency
administering assistance under this Act is authorized to
establish, with funds made available for assistance under
this Act (or predecessor legislation) administered by such
agency, a working capital fund, which shall be available
without fiscal year limitation, for expenses and equipment
necessary to the maintenance and operation of a program of
providing short-term and long-term training and training-
related services of foreign nationals in the United States or
third countries, including such expenses as (1) tuition and
fees, (2) room, board, and maintenance allowances, and (3)
contracts and the cost of administering contracts entered
into in furtherance of the program.
(n) Multiyear Commitments.--A contract or agreement which
entails commitments for the expenditure of funds under this
Act may, subject to any future action of the Congress, extend
at any time for not more than 5 years.
SEC. 8203. AUTHORIZED ADMINISTRATIVE USES OF FUNDS.
(a) Personnel, Printing, Procurement of Supplies, and Other
Administrative Expenses.--Funds made available to carry out
this Act may be used for the following:
(1) Compensation, allowances, and travel of personnel,
including Foreign Service personnel, whose services are
utilized primarily for the purposes of this Act and for other
administrative and operating expense purposes (other than
compensation of personnel) without regard to such laws and
regulations governing the obligation and expenditure of funds
of the United States Government as may be necessary to
accomplish the purposes of this Act.
(2) Printing and binding without regard to the provisions
of any other law.
(3) Expenditures outside the United States for the
procurement of supplies and services and for other
administrative and operating purposes (other than
compensation of personnel) without regard to the Claims Act,
31 U.S.C. 3721 and such laws and regulations governing the
obligation and expenditure of funds of the United States
Government (other than sections 1341, 1342, and 1517 of title
31, United States Code) as may be necessary to accomplish the
purposes of this Act.
(b) Uses of Assistance Funds.--
(1) Authorized uses.--Funds described in paragraph (2)
shall be available for the following:
(A) Expenses of attendance at meetings concerned with the
purposes of this Act, including (notwithstanding section
1346(a) and 1346(c) of title 31, United States Code),
expenses in connection with meetings of persons whose
employment is authorized by section 8503.
(B) Contracting with individuals for personal services.
Such individuals shall not be regarded as employees of the
United States Government for the purpose of any law
administered by the Office of Personnel Management, except
that the head of the contracting agency may determine the
applicability to such individuals of any other law
administered by such agency concerning the employment of such
individuals.
(C) Purchase, maintenance, operation, and hire of aircraft,
except that aircraft for administrative purposes may be
purchased only as specifically provided for in an
appropriation or other Act.
(D)(i) Purchase and hire of passenger motor vehicles,
subject to clause (ii).
(ii) Passenger motor vehicles other than one for the
official use of the Administrator of the United States Agency
for International Development may be purchased for use in the
United States only as may be specifically provided in an
appropriation or other Act.
(E) Entertainment and representation.
(F) Awards.
(G) Exchange of funds without regard to loss by exchange.
(H) Expenditures (not to exceed $50,000 in any fiscal year
except as may otherwise be provided in an appropriation or
other Act) of a confidential character other than
entertainment. A certificate of the amount of such
expenditure, the nature of which it is considered inadvisable
to specify, shall be made by the President, and every such
certificate shall be deemed a sufficient voucher for the
amount therein specified.
(I) Insurance of official motor vehicles or aircraft
acquired for use in foreign countries.
(J) Expenses of--
(i) preparing and transporting to their former homes (or
with respect to foreign participants engaged in any program
under this Act to their former homes or places of burial),
and
(ii) caring for and disposing of the remains of an
individual, or the remains of a member of an individual's
family, who may die while such individual is away from home
participating in activities carried out with funds described
in paragraph (2).
(K) Purchase of uniforms.
(L) Payment of per diem in lieu of subsistence to foreign
participants engaged in any program under this Act while such
participants are away from their homes in countries other
than the United States, at rates not in excess of those
prescribed by the Standardized Government travel regulations,
notwithstanding any other provision of law.
(M) Use in accordance with authorities of the Foreign
Service Act of 1980 (22 U.S.C. 3901 et seq.) not otherwise
provided for.
(N) Ice and drinking water for use outside the Unite
States.
(O) Services of commissioned officers of the National
Oceanic and Atmospheric Administration. For the purposes of
providing such services the National Oceanic and Atmospheric
Administration may appoint not to exceed 20 commissioned
officers in addition to those otherwise authorized.
(P) Expenses in connection with--
(i) travel of personnel outside the United States,
including travel expenses of dependents (including expenses
during necessary stopovers while engaged in such travel), and
the transportation of personal effects, household goods, and
automobiles of such personnel when any part of such travel or
transportation begins in one fiscal year pursuant to travel
orders issued in that fiscal year, notwithstanding the fact
that such travel or transportation may not be completed
during the same fiscal year; and
(ii) the costs of transporting automobiles to and from a
place of storage, and the costs of storing automobiles of
such personnel, when it is in the public interest or more
economical to authorize storage.
(Q) Assistance for the implementation of programs under the
Agricultural Trade Development and Assistance Act of 1954,
the Agricultural Act of 1949, and the Food for Progress Act
of 1985.
(R) Other expenses determined by the President to be
necessary to carry out the purposes of this Act.
(2) Funds which may be used.--Paragraph (1) applies
(A) appropriations to carry out this Act,
(B) allocations or transfers to or from agency of the
United States Government, from other appropriations, for
functions directly related to the purposes of this Act, and
(C) funds made available for other purposes to the United
States Agency for International Development.
(c) Facilities.--
(1) Living quarters, offices, schools, and hospitals.--
Notwithstanding any other provision of law, funds available
for assistance under this Act may be used in any fiscal year
(in addition to funds available for such use under other
authorities in this Act)--
(A) to rent, lease, construct or otherwise acquire
essential living quarters, office space, and necessary
supporting facilities for use of personnel carrying out
activities authorized by this Act, including to maintain,
furnish, improve, and make necessary repairs to such
property, which may also include the cost of fuel, water, and
utilities for such properties;
(B) to construct or otherwise acquire outside the United
States schools (including dormitories and boarding
facilities) and hospitals for use of personnel carrying out
activities authorized by this Act, United States Government
personnel, and their dependents; and
(C) to staff, operate, and maintain such schools and
hospitals.
(2) Disposal.--Property acquired under this subsection (or
predecessor provisions of this Act) may be disposed of, and
the proceeds of such disposal shall remain available until
expended for use for the purposes specified in paragraph (1).
(d) Education of Dependents.--Funds available for
assistance under this Act may be used in any fiscal year to
provide assistance to schools established, or to be
established, outside the United States whenever it is
determined that such action would be more economical or would
best serve the interests of the United States in providing
for the education of dependents of personnel carrying out
activities authorized by this Act and dependents of United
States Government personnel, in lieu of acquisition or
construction pursuant to subsection (c) of this section.
(e) Training of Personnel.--
(1) Payment of costs.--Funds available under this Act may
be used to pay costs of training United States citizen
personnel employed or assigned pursuant to section 8502(d),
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 firm.
(2) Limitation on dual employment.--Such training shall not
be considered employment or holding of office under section
5533 of title 5, United States Code.
(3) Acceptance of certain payments.--Any payments or
contributions in connection with such training 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. Any such payments or
contributions to any employee in the nature of compensation
shall be in lieu, or in reduction, of compensation received
from the United States Government.
Subchapter B--Department of Defense Administrative Authorities
SEC. 8211. ADMINISTRATIVE EXPENSES.
Funds allocated to the Department of Defense for the
purpose of providing assistance under this Act shall be
available for the following:
(1) Administrative, extraordinary (not to exceed $300,000
in any fiscal year), and operating expenses incurred in
furnishing assistance under this Act administered through the
Department of Defense, including the purchase of passenger
motor vehicles for replacement only for use outside of the
United States.
(2) Reimbursement of actual expenses of military officers
detailed or assigned as tour directors in connection with
orientation visits of foreign military and related civilian
personnel, in accordance with the provisions of section 5702
of title 5, United States Code, applicable to civilian
officers and employees.
(3) Maintenance, repair, alteration, and furnishing of
United States-owned facilities in the District of Columbia or
elsewhere for the training of foreign military and related
civilian personnel without regard to the provisions of
section 3733 of the Revised Statutes (41 U.S.C. 12) or other
provision of law requiring a specific authorization or
specific appropriation for such public contracts.
SEC. 8212. END USE AND RETRANSFER ASSURANCES.
(a) Conditions.--Defense articles or defense services may
not be made available under this Act to a foreign country,
unless that country has agreed to the following (in addition
to such other provisions as the President may require):
(1) The country will not, without the consent of the
President--
(A) transfer title to, or possession of, any defense
articles or defense services so furnished to it to anyone not
an officer, employee, or agent of that country,
(B) use or permit the use of such articles or services for
purposes other than those for which furnished.
(2) The country will maintain the security of such articles
or services, and will provide substantially the same degree
of security protection afforded to such articles or services
by the United States Government.
(b) Ineligibility.--
(1) Termination of assistance for substantial violations.--
Assistance administered by the Department of Defense under
this Act to any country and deliveries of defense articles
and defense services provided with such assistance shall be
terminated, and new commitments to provide such assistance to
that country shall not be made, as hereinafter provided if
such country uses defense articles or defense services
described in paragraph (2) 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 pursuant to which those defense articles or defense
services were furnished--
(A) by using such articles or services for a purpose not
provided for in this Act or, if such agreement provides that
such articles or services may only be used for purposes more
limited, 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;
or
(C) by failing to maintain the security of such articles or
services.
(2) Defense articles and defense services subject to
requirements.--Paragraph (1) applies with respect to any
defense articles or defense services furnished (through
financing or otherwise) under this Act, or furnished under
any predecessor foreign assistance legislation.
(c) Exception.--No prior consent shall be required under
this subchapter and section 3 of the Arms Export Control Act
for transfer by a foreign country of defense articles sold by
the United States under that Act under the following
circumstances:
(1) such articles constitute components incorporated into a
foreign defense article;
(2) the recipient is the government of a NATO country, or
the government of Australia or Japan;
(3) the United States-origin components were not
significant military equipment, were not military defense
equipment for which notification to Congress was required by
section 36(b) of the Arms export Control Act, and are not
identified by regulation as Missile Technology Control Regime
items; and
(4) the foreign country or persons transferring the items
provide notification to the United States Government within
thirty days following such transfer.
SEC. 8213. APPROVAL OF THIRD COUNTRY TRANSFERS.
(a) In General.--In considering a request for approval of
any transfer of any weapon, weapons system, munitions,
aircraft, military vessel, or other implement of war to
another country, the President shall not give his consent
under section 8212 to the transfer unless the United States
itself would transfer the defense article under consideration
to that country.
(b) Significant Military Equipment.--In addition, the
President shall not give consent under this subchapter to the
transfer of any significant military equipment on the United
States Munitions List unless the foreign country requesting
consent to transfer agrees to demilitarize such equipment
prior to transfer, or the proposed recipient provides a
commitment in writing to the United States Government that it
will not transfer such equipment if not demilitarized to any
other foreign country or person without first obtaining the
consent of the President.
SEC. 8214. EXCHANGE TRAINING.
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 titles II and III notwithstanding
section 8201, if such attendance is pursuant to an agreement
providing for the exchange of students on a generally
reciprocal basis each fiscal year between those United States
professional military education institutions and comparable
institutions of foreign countries and international
organizations.
Chapter 3--Special Requirements and Authorities Relating to
Appropriations and Local Currencies
Subchapter A--Provisions Relating to Appropriations
SEC. 8301. REQUIREMENT FOR AUTHORIZATION OF APPROPRIATIONS.
(a) Requirement for Authorization.--Funds appropriated for
foreign assistance under this Act shall not be available for
obligation or expenditure--
(1) unless the appropriation thereof has been specifically
authorized by law; or
(2) in excess of an amount prescribed by law.
(b) Subsequent Authorizations.--To the extent that
legislation enacted after the making of an appropriation for
foreign assistance under this Act authorizes the obligation
or expenditure thereof, the limitation contained in
subsection (a) shall not apply.
(c) Relation to Other Provisions.--The provisions of this
section shall not be superseded except by a provision of law
that specifically repeals or modifies the provisions of this
section.
SEC. 8302. AUTHORITY FOR EXTENDED PERIOD OF AVAILABILITY OF
APPROPRIATIONS.
Amounts appropriated to carry out this Act are authorized--
(1) to be made available, in appropriations Acts, until
expended; and
(2) in addition to amounts otherwise available for such
purposes.
SEC. 8303. REDUCTION IN EARMARKS.
(a) Proportional Reductions.--If--
(1) the amount appropriated for a fiscal period to carry
out any provision of this Act is less than the amount
authorized to be appropriated to carry out such provision,
and
(2) the provision or provisions authorizing such
appropriations provides that a specified amount of the amount
authorized to be appropriated to carry out that provision for
that fiscal period shall be available only for a particular
country, organization, or purpose.
then the amount so specified shall be deemed to be reduced to
the amount which bears the same ratio to the specified amount
as the amount appropriated bears to the amount authorized to
be appropriated.
(b)(1) Funds may be made available notwithstanding any
provision of law described in paragraph (2) if--
(A) compliance with such provision is made impossible by
operation of law, or
(B) the President determines that the country or
organization for whom such funds would have been made
available has significantly reduced its military, political,
or economic cooperation with the United States during the
preceding 12-month period.
(2) The provisions of law to which this subsection applies
are any provisions requiring that a specified amount of funds
appropriated to carry out any provision of this Act shall be
available only for a particular country, organization, or
purpose.
SEC. 8304. OBLIGATION UPON APPORTIONMENT.
Funds appropriated to carry out this Act may be obligated
upon apportionment in accordance with title 31, section
1501(a)(5)(C), United States Code.
Subchapter B--Local Currencies
SEC. 8311. USE OF CERTAIN FOREIGN CURRENCIES.
(a) Authority To Use Foreign Currencies for Assistance
Programs.--Except as otherwise provided in this Act or other
provisions of law, foreign currencies described in subsection
(b) are authorized to be appropriated for use in providing
assistance under this Act.
(b) Foreign Currencies Which May Be Used for Assistance.--
The foreign currencies which may be used under subsection (a)
are any foreign currencies received as a result of the
furnishing of assistance under this Act (or any predecessor
legislation authorizing nonmilitary assistance) other than
assistance administered through the Department of Defense
which are in excess of--
(1) the amounts reserved under authority of section 105(d)
of the Mutual Educational and Cultural Exchange Act of 1961
or any other Act relating to educational and cultural
exchanges; and
(2) the amounts required for payment by the agencies of the
United States Government of their obligations outside the
United States, as such requirements may be established from
time to time by the President.
(c) Payment of Obligations of Government Agencies.--Foreign
currencies described in subsection (b) which are in excess of
the amounts described in paragraph (1) of that subsection may
be sold by the Secretary of the Treasury to agencies of the
United States Government for payment of their obligations
outside the United States.
(d) Use of Foreign Currencies Not Owned by the United
States Government.--With the concurrence of the relevant
inspector general, the use of foreign currencies that accrue
or are otherwise available as a result of assistance provided
under this Act (including predecessor legislation) that are
not owned by the United States Government, shall be the
responsibility of the government owning such currencies to
audit.
SEC. 8312. INTEREST ON U.S. OWNED FOREIGN CURRENCY PROCEEDS.
(a) Requirement for Payment of Interest.--In cases where
assistance is to be furnished to any recipient country under
this Act on a basis which will result in the accrual of
foreign currency proceeds to the United States, agreements
with respect to such assistance should include provisions for
the receipt of interest income on the foreign currency
proceeds deposited in authorized depositories.
(b) Waiver of Requirement.--The President may waive any
requirement for receipt of such income if the President
decides it would not be in the national interest to conclude
arrangements for the receipt of interest income pursuant to
subsection (a).
Chapter 4--Procurement and Disposition of Articles
SEC. 8401. USE OF PRIVATE ENTERPRISE.
(a) In General.--In order to encourage and facilitate
participation by private enterprise to the maximum extent
practicable in achieving any of the purposes of this Act, the
President shall--
(1) to the maximum extent practicable carry out programs of
assistance through private channels and, to the extent
practicable, in conjunction with local private or
governmental participation;
(2) utilize wherever practicable the products and services
of United States private enterprise to provide the necessary
equipment, supplies, and skills to develop and operate a
specific project or program of assistance in a developing
country or area in any case in which direct private
investment is not readily encouraged, and provide where
appropriate for the transfer of equity ownership in such
project or program to private investors at the earliest
feasible time.
(b) Technical Assistance.--In providing technical
assistance under this Act, the President shall utilize, to
the fullest extent practicable, goods and professional and
other services from private enterprise on a contract basis.
In such fields as education, health, housing, engineering,
surveying, mapping, construction or agriculture, the
facilities and resources of Federal agencies, which do not
administer programs under this Act, may be utilized when such
facilities are particularly or uniquely suitable for
technical assistance, are not competitive with private
enterprise, and can be made available without interfering
unduly with domestic programs.
(c) Assistance Provided Through the Department of
Defense.--The President shall assure that there is made
available to suppliers in the United States, and particularly
to small independent enterprises, information with respect to
purchases of defense articles and defense services made by
the Department of Defense pursuant to this Act. Such
information shall be furnished as far in advance as possible.
SEC. 8402. PROCUREMENT STANDARDS AND PROCEDURES.
(a)(1) Limitations on Procurement Outside the United
States.--Funds made available for programs under this Act may
be used by the President for procurement--
(A) only in the United States, the recipient country, or
developing countries; or
(B) in any other country but only if)
(i) such program requires articles or services of a type
that are not produced in and available for purchase in any
country specified in subparagraph (A); or
(ii) the President determines, on a case-by-case basis,
that procurement in such other country is necessary--
(I) to meet unforeseen circumstances, such as emergency
situations, where it is important to permit procurement in a
country not specified in subparagraph (A); or
(II) to promote efficiency in the use of United States
foreign assistance resources, including to avoid impairment
of foreign assistance objectives.
(2) For purposes of this subsection, the term ``developing
countries'' shall not include advanced developing countries.
(b) Bulk Commodities.--No funds made available under this
Act shall be used for the purchase in bulk of any commodities
at prices higher than the market price prevailing in the
United States at the time of purchase, adjusted for
differences in the cost of transportation to destination,
quality, and terms of payment.
(c) Procurement Method for Institutions of Higher
Education.--The President may establish separate procurement
standards and procedures for projects under this Act to limit
competition to a selection among institutions of higher
education when the projects would benefit substantially from
the resources and special capabilities of such institutions.
SEC. 8403. SHIPPING ON UNITED STATES VESSELS.
(a) Certain Laws Not Applicable.--The ocean transportation
between foreign countries of articles purchased with foreign
currencies made available or derived from funds made
available under this Act or the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1691 and
following), or any predecessor Acts, and transfers a fresh
fruit and fresh fruit products under this Act, shall not be
governed by section 901(b) of the Merchant Marine Act, 1936
(46 U.S.C. app. 1241(b)), or any other law relating to the
ocean transportation of commodities on United States flag
vessels.
(b) Shipping Differential.--For purposes of facilitating
implementation of section 901(b) of the Merchant Marine Act,
1936 (46 U.S.C. app. 1241(b)), funds made available for
commodities and services under this Act may be used to make
grants to recipients or otherwise pay all or any portion of
such differential as is determined by the Secretary of
Transportation 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.
SEC. 8404. EXCESS AND OTHER AVAILABLE PROPERTY.
(a) Policy Regarding Use of Excess and Other Available
Property.--In furnishing assistance under this Act--
(1) excess personal property, or
(2) if a substantial savings would occur, other property
already owned by an agency of the United States Government,
may be utilized wherever practicable in lieu of or
supplementary to the procurement of new items for United
States-assisted projects and programs.
(b) Authority To Use Certain Property for Assistance
Purposes.--The President is authorized to use funds made
available under this Act to acquire--
(1) property classified as domestic or foreign excess
pursuant to the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 471 and following);
(2) any property available from an agency of the United
States Government; or
(3) other property,
for use of such property as assistance in furtherance of the
purposes of this Act. Property acquired pursuant to this
section may be furnished pursuant to any provision of this
Act for which funds are authorized for the furnishing of
assistance.
(c)(1) The President is also authorized for purposes
described in subsection (b) to maintain in a separate account
funds made available under this Act, free from fiscal year
limitations (notwithstanding section 1535(d) of title 31,
United States Code) to pay costs (including personnel costs)
of acquisition and storage (including in advance of known
requirements), renovation and rehabilitation, packing,
crating, handling, transportation, and related costs of
handling and providing such property as assistance.
(2) The separate account established pursuant to this
section may be repaid--
(A) from funds made available pursuant to any provision of
this Act for which funds are authorized for the furnishing of
assistance for all costs incurred; or
(B) pursuant to section 7110 for all costs incurred.
(d) Conditions on Use of Excess Property.--
(1) Limitation.--Government-owned excess property may not
be made available for use under this Act unless approval is
given and a determination is made in accordance with
paragraph (2)--
(A) before the shipment of such property for use in a
specified country, or
(B) if the property is already in such country, before the
transfer of the property.
(2) Determination.--A shipment or transfer subject to
paragraph (1) may take place only after the President
approves the shipment or transfer and makes a written
determination--
(A) that there is a need for such property in the quantity
requested and that such property is suitable for the purpose
requested;
(B) as to the status and responsibility of the designated
end-user and his ability effectively to use and maintain such
property; and
(C) 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.
(e) This section shall not apply--
(1) in the case of excess property of the Department of
Defense that is furnished as assistance under section 8405 of
this Act; and
(2) in the case of funds made available for assistance
under this Act that is administered through the Department of
Defense.
SEC. 8405. GRANT TRANSFERS OF EXCESS DEFENSE ARTICLES.
(a) Authority.--Notwithstanding any other provision of law,
the President may transfer excess defense articles to
countries for which receipt of such articles was separately
justified in the fiscal year in which the transfer is
authorized, such excess defense articles as may be necessary
to carry out the purposes of titles II or III of this Act.
(b) Generally Applicable Provisions.--
Definition.--For purposes of this section, excess property
of the Coast Guard may be transferred on the same basis as
excess defense articles otherwise authorized to be
transferred by this section.
(2) Terms of transfers.--Excess defense articles may be
transferred under section without cost to the recipient
country or international organization.
(3) Limitations on transfers.--The President may transfer
excess defense articles under this section only if--
(A) they are drawn from existing stocks of the Department
of Defense (or the Coast Guard);
(B) funds available to the Department of Defense (or the
Coast Guard) for the procurement of defense equipment are not
expended in connection with the transfer;
(C) the transfer of the excess defense articles will not
have an adverse impact on the military readiness of the
United States; and
(D) transferring the articles under the authority of those
sections is preferable to selling them, after taking into
account the potential proceeds from, and likelihood of, such
sales, and the comparative foreign policy benefits that may
accrue to the United States as the result of either a
transfer or sale.
(4) Advance notification to congress.--The President may
not transfer excess defense articles that are significant
military equipment or an article valued (in terms of its
original acquisition cost) at $7,000,000 or more under this
section until 15 days after the President has provided notice
of the proposed transfer to the Committee on Armed Services,
the Committee on Foreign Affairs, and the Committee on
Appropriations of the House of Representatives and the
Committee on Armed Services, the Committee on Foreign
Relations, and the Committee on Appropriations of the Senate.
(5) Waiver of requirement for reimbursement of department
of defense expenses.--Section 8201 shall not apply with
respect to transfers of excess defense articles under this
section.
(6) Transportation and related costs.--Funds available to
the Department of Defense (or the Coast Guard) shall not be
expended for crating, packing, handling and transportation of
excess defense articles transferred under the authority of
this section, except under the following conditions:
(A) where it is determined that it is in the United States
national interest to do so,
(B) the recipient is an international organization or is a
developing country receiving less than $10,000,000 of
assistance described in subparagraphs (A) and (B) of section
8551(21) of this Act in the fiscal year in which the
transportation is provided,
(C) the total weight of the transfer does not exceed 25,000
pounds,
(D) such overseas transportation is accomplished on a space
available basis, and
(E) the recipient agrees to pay packing, crating, and other
handling costs incurred as a result of the transfer.
SEC. 8406. STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN
COUNTRIES.
(a) Removal From Stockpiling.--Defense articles in the
inventory of the Department of Defense which are set aside,
reserved, or in any way earmarked or intended for future use
by any foreign country may not be made available to or for
use by any foreign country unless--
(1) such transfer is authorized under this Act or the Arms
Export Control Act; and
(2) the value of such transfer is charged against funds
authorized to carry out the provisions of this Act or against
any limitations specified in such legislation, as
appropriate, for the fiscal period in which the defense
articles are transferred.
(b) Value.--
(1) Definition.--For purposes of subsection (a), `value'
means acquisition cost plus crating, packing, handling, and
transportation costs incurred in carrying out this section.
(2) Limitation.--A defense article transferred from any
stockpile which is made available to or for use by any
foreign country may not be considered an excess defense
article for the purpose of determining the value of that
defense article.
SEC. 8407. LOCATION OF STOCKPILES.
Except for stockpiles located in the Republic of Korea,
Thailand, a country which is a member of the North Atlantic
Treaty Organization, a country which is a major non-NATO
ally, or such other countries as the President may designate,
no stockpile may be located outside the boundaries of a
United States military base or a military base used primarily
by the United States.
SEC. 8408. ADDITIONS TO WAR RESERVE STOCKS.
(a) Limitation.--The value of defense articles to be added
to those 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 specified in
legislation authorizing military assistance programs for that
fiscal year.
(b) Authorization of Additions.--The value of such
additions to stockpiles in foreign countries shall not exceed
such sums as may be authorized for a fiscal year.
SEC. 8409. RETENTION AND USE OF CERTAIN ITEMS AND FUNDS.
(a) Retention and Use of Certain Articles.--
(1) Authority to retain, transfer, and use.--Any articles
procured to carry out this Act shall be retained by, or (upon
reimbursement) transferred to and for the use of, such agency
of the United States Government as the President deems
appropriate in lieu of being disposed of to a foreign country
or international organization, whenever in the judgment of
the President the best interests of the United States will be
served thereby.
(2) Laws governing disposal of government property.--Any
articles so retained may be disposed of without regard to
provisions of law relating to the disposal of property owned
by the United States Government, when necessary to prevent
spoilage or wastage of such articles or to conserve their
usefulness.
(3) Proceeds credited to appropriations.--Funds realized
from any disposal or transfer shall revert to the respective
appropriation, fund, or account used to procure such articles
or to the appropriation, fund, or account currently available
for the same general purpose.
(b) Articles Received as Payment.--Whenever articles are
transferred to the United States Government as repayment of
assistance under this Act or the former authority of the
Foreign Assistance Act, such articles may be used in
furtherance of the purposes and within the limitations of
this Act.
(c) Failed Transactions.--Funds realized as a result of any
failure of a transaction financed under this Act to conform
to the requirements of this Act, to applicable rules and
regulations of the United States Government, or to the terms
of any agreement or contract entered into under this Act,
shall revert to the respective appropriation, fund, or
account used to finance such transaction or to the
appropriation, fund, or account currently available for the
same general purpose.
(d) Disposal of Defense Articles.--Funds realized by the
United States Government from the sale, transfer, or disposal
of defense articles furnished under the former authority of
chapter 2 of part II of the Foreign Assistance Act of 1961,
and no longer needed for the purposes for which furnished,
shall be credited to the respective appropriation, fund, or
account currently available for the same general purpose.
Chapter 5--Personnel and Administrative Expenses
Subchapter A--General
SEC. 8501. STATUTORY OFFICERS IN THE UNITED STATES AGENCY FOR
INTERNATIONAL DEVELOPMENT.
(a) Appointment.--The President may appoint, by and with
the advice and consent of the Senate, 12 officers in the
United States Agency for International Development.
(b) Title.--The President may designate the title of any
officer appointed under subsection (a).
(c) Order of Succession.--The President may also fix the
order of succession among the officers appointed under
subsection (a) of this section in the event of the absence,
death, resignation, or disability of one or more of those
officers.
SEC. 8502. EMPLOYMENT OF PERSONNEL.
(a) Authority.--Any agency or officer of the United States
Government carrying out functions under this Act is
authorized to employ such personnel as the President deems
necessary to carry out the provisions and purposes of this
Act.
(b) Assistance Functions in the United States.--
(1) Appointments without regard to certain civil service
laws.--Of the personnel employed in the United States by the
United States Agency for International Development, 110 may
be appointed or removed without regard to the provisions of
title 5, United States Code, governing appointments in the
competitive service, and may be compensated without regard to
the provisions of chapter 51 or subchapter III of chapter 53
of such title, subject to paragraph (2) of this subsection.
(2) Compensation.--Of the personnel appointed under
paragraph (1), 51 may be compensated at rates higher than
those payable for GS-15 of the General Schedule under section
5332 of title 5, United States Code, but not in excess of the
highest rate payable under section 5376 of such title.
(3) Reinstatement rights.--Under such regulations as the
President may prescribe, any individual employed under
paragraph (1) may be entitled, upon removal (except for
cause) from the position to which the appointment was made,
to reinstatement to the position occupied by that individual
at the time of appointment or to a position or comparable
grade and pay.
(c) Department of Defense Functions in the United States.--
Of the personnel employed in the United States by the
Department of Defense to carry out this Act or the Arms
Export Control Act not to exceed 8 may be compensated at
rates higher than those payable for GS-15 of the General
Schedule under section 5332 of title 5 of the United States
Code, but not in excess of the highest rate payable under
section 5376 of such title. Such positions shall be in
addition to those authorized by law to be filled by
Presidential appointment, and in addition to the number
authorized by section 5108 of title 5, United States Code.
(d) Performance of Functions Outside the United States.--
(1) Authority to employ or assign.--For the purpose of
performing functions under this Act outside the United
States, the President may--
(A) employ or assign individuals, or
(B) authorize the employment or assignment of officers or
employees by agencies of the United States Government which
are not authorized to utilize the Foreign Service personnel
system.
(2) Compensation.--Individuals employed or assigned under
paragraph (1) shall receive compensation at any of the rates
provided for under section 402 or section 403 of the Foreign
Service Act of 1980, 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.
(3) Reemployment rights.--Individuals so employed or
assigned shall be entitled to the same benefits as are
provided by section 310 of that Act for individuals appointed
to the Foreign Service, except to the extent that the
President may specify otherwise in cases in which the period
of employment or assignment exceeds 30 months.
(e) Certain Funds Deemed Obligated for Certain Services.--
Funds provided for in agreements with foreign countries for
the furnishing of services under this Act with respect to
specific projects shall be deemed to be obligated for the
services for personnel employed by agencies of the United
States Government (other than the United States Agency for
International Development or the Department of Defense) as
well as personnel not employed by the United States
Government.
SEC. 8503. EXPERTS, CONSULTANTS, AND RETIRED OFFICERS.
(a) Authority To Employ.--Experts and consultants or
organizations thereof may, in accordance with section 3109 of
title 5 of the United States Code, be employed for the
performance of functions under this Act.
(b) Mandatory Retirement Age Not Applicable.--Service of an
individual as an expert or consultant under subsection (a) of
this section shall not be considered as employment or holding
of office or position bringing such individual within the
provisions of section 3323(a) of title 5 of the United States
Code.
(c) Employment of Certain Persons Without Compensation.--
Persons of outstanding experience and ability may be employed
without compensation by any agency of the United States
Government for the performance of functions under this Act in
accordance with the provisions of section 710(b) of the
Defense Production Act of 1950 (50 U.S.C. App. 2160(b)), and
regulations issued thereunder.
SEC. 8504. DETAIL OF PERSONNEL TO FOREIGN GOVERNMENTS AND
INTERNATIONAL ORGANIZATIONS.
(a) Details to Foreign Governments.--When consistent with
and in furtherance of the purposes of this Act, the head of
any agency of the United States Government is authorized to
detail any officer or employee of that agency to any office
or position with any foreign government or foreign government
agency, where acceptance of such office or position does not
involve the taking of an oath or allegiance to another
government or acceptance of compensation or other benefits
from any foreign country by such officer or employee.
(b) Details to International Organizations.--When
consistent with and in furtherance of the purposes of this
Act, the head of any agency of the United States Government
is authorized to detail to any international organization or
arrangement, any officer or employee of that agency to
service with, or as a member of, the international staff of
such organization, or to render any technical, scientific, or
professional advice or service to, or in cooperation with,
such organization.
(c) Status of Personnel Detailed.--
(1) Retention of benefits.--Any officer or employee, while
detailed under this section--
(A) shall be considered an officer or employee of the
United States Government and of the agency of the United
States Government from which detailed for the purpose of
preserving his or her allowances, privileges, rights,
seniority, and other benefits as such; and
(B) shall continue to receive compensation, allowances, and
benefits from funds appropriated to that agency or made
available to that agency under this Act, or may be detailed
on a leave without pay status.
(2) Allowance.--Any officer or employee assigned, detailed,
or appointed under this section, section 8503, section 8505,
or section 8506 may receive (under such regulations as the
President may prescribe ) representation allowances similar
to those allowed under section 905 of the Foreign Service Act
of 1980. The authorization of such allowances and other
benefits and the payment thereof out of any appropriations
available therefore shall be considered as meeting all the
requirements of section 5536 of title 5, United States Code.
(d) Terms of Detail.--Details may be made under this
section or section 408 of the Mutual Security Act of 1954 in
accordance with any of the following paragraphs:
(1) Without reimbursement to the United States Government
by the foreign government or international organization;
(2) Upon agreement by the foreign government or
international organization to reimburse the United States
Government for compensation, travel expenses, benefits, and
allowances, or any part thereof, payable to the officer or
employee concerned during the period of detail. Such
reimbursements (including foreign currencies) shall be
credited to the appropriation, fund, or account utilized for
paying such compensation, travel expenses, benefits, or
allowances, or to the appropriation, fund, or account
currently available for such purposes;
(3) Upon an advance of funds, property, or services by the
foreign government or international organization to the
United States Government accepted with the approval of the
President for specified uses in furtherance of the purposes
of this Act. Funds so advanced may be established as a
separate fund in the Treasury of the United States
Government, to be available for the specified uses, and to be
used for reimbursement of appropriations or direct
expenditure subject to the provisions of this Act, any
unexpended balance of such account to be returned to the
foreign government or international organization; or
(4) Subject to the receipt by the United States Government
of a credit to be applied against the payment by the United
States Government of its share of the expenses of the
international organization to which the officer or employee
is detailed, such credit to be based upon the compensation,
travel expenses, benefits and allowances, or any part
thereof, payable to such officer or employee during the
period of detail in accordance with subsection (c).
SEC. 8505. HEAD OF OFFICES ABROAD.
(a) Appointment.--The President may appoint a head and
deputy head of each office or staff maintained under section
8106.
(b) Compensation and Allowances.--Such head shall be
entitled to receive such compensation and allowances as are
authorized by the Foreign Service Act of 1980, not to exceed
those authorized for a chief of mission (as defined in
section 102(a)(3) of that Act), as the President deems
appropriate.
SEC. 8506. CHAIRMAN OF OECD DEVELOPMENT ASSISTANCE COMMITTEE.
(a) Appointment.--The President may--
(1) appoint any United States citizen who is not an
employee of the United States Government, or
(2) assign any United States citizens who is an employee of
the United States Government, to serve as Chairman of the
Development Assistance Committee (or any successor committee)
of the Organization for Economic Cooperation and Development,
upon election thereto by members of that Committee.
(b) Compensation and Allowances.--An individual appointed
or assigned under subsection (a) may receive such
compensation and allowances as are authorized by the Foreign
Service Act of 1980, not to exceed those authorized for a
chief of mission (as defined in section 102(a)(3) of that
Act), as the President deems appropriate. Such individual, if
appointed under subsection (a)(1), shall be deemed to be an
employee of the United States Government for purposes of
chapters 81, 83, 84, 87, and 89 of title 5, United States
Code. Such individual may also, in the President's
discretion, receive any other benefits and perquisites
available under this Act to heads of offices or staffs
maintained under section 8106.
SEC. 8507. ASSIGNMENT OF DOD PERSONNEL TO CIVIL OFFICES.
Nothwithstanding section 973(b) of title 10 United States
Code, personnel of the Department of Defense may be assigned
or detailed to any civil office to carry out this Act.
SEC. 8508. DISCRIMINATION AGAINST UNITED STATES PERSONNEL
PROVIDING ASSISTANCE.
It is the Sense of the Congress that--
(1) the assignment of officers and employees of the United
States to carry out any assistance program funded under this
Act in any foreign country, should not take into account the
race, religion, national origin, or sex of any such officer
or employee, and such assignments should be made solely on
the basis of ability and relevant experience.
(2) assistance under this Act should not 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 assistance under this Act on the basis of race,
religion, national origin, or sex.
SEC. 8509. AVAILABILITY OF FUNDS FOR OPERATING EXPENSES
GENERALLY.
(a) In General.--Funds shall be available to carry out the
provisions of this section as authorized and appropriated to
the President each fiscal year.
(b) Additional Amounts.--There are authorized to be
appropriated to the President such additional 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.
SEC. 8510. AVAILABILITY OF FUNDS FOR OPERATING EXPENSES OF
THE INSPECTOR GENERAL.
(a) In General.--Funds shall be available to carry out the
provisions of this section as authorized and appropriated to
the President each fiscal year.
(b) Additional Amounts.--There are authorized to be
appropriated to the President such additional 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 office.
SEC. 8511. AVAILABILITY OF FUNDS.
Notwithstanding any other provision of law, the United
States Agency for International Development may obligate and
expend funds in advance of appropriations in an amount
sufficient to maintain operations at posts abroad for up to
three days.
Subchapter B--Overseas Management of Assistance and Sales Programs
Administered Through the Department of Defense
SEC. 8521. AUTHORIZED FUNCTIONS.
(a) In General.--In order to carry out responsibilities for
the management of assistance and sales programs administered
through the Department of Defense under this Act and under
the Arms Export Control Act, the President may assign members
of the Armed Forces 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.
(7) Liaison functions exclusive of advisory and training
assistance.
(b) Advisory and Training Assistance.--Advisory and
training assistance conducted by members of the Armed Forces
assigned for purposes of providing defense articles or
defense services shall be kept to an absolute minimum.
Advising and training assistance in countries to which
members of the Armed Forces are assigned for such purposes
should be provided primarily by other personnel who are not
assigned for such purposes and who are detailed for limited
periods to perform specific tasks.
SEC. 8522. COSTS.
The entire costs (excluding salaries of members of the
Armed Forces other than the Coast Guard) of overseas
management of programs for providing defense articles and
defense services under this Act shall be charged to or
reimbursed from funds allocated to the Department of Defense,
pursuant to the authorities of this Act, other than any such
costs which are either--
(1) paid directly for such defense services under section
21(a) of the Arms Export Control Act, or
(2) reimbursed from charges for services collected from
foreign governments pursuant to section 21(e) and section
43(b) of that Act.
SEC. 8523. ROLE OF CHIEF OF MISSION.
Members of the Armed Forces assigned to a foreign country
under section 8521 of this Act shall serve under the
direction and supervision of the Chief of the United States
Diplomatic Mission to that country.
Subchapter C--Administrative Provisions for the Trade and Development
Agency
SEC. 8531. DIRECTOR AND PERSONNEL.
(a) Director.--There shall be at the head of the Trade and
Development Agency a Director who shall be appointed by the
President, by and with the advice and consent of the Senate.
(b) Officers and Employees.--
(1) The Director may appoint such officers and employees of
the Trade and Development Agency as the Director considers
appropriate.
(2) The officers and employees appointed under this
paragraph shall have such functions as the Director my
determine.
(3) Of the officers and employees appointed under this
paragraph, 2 may be appointed without regard to the
provisions of title 5, United States Code, governing in the
competitive service, and may be compensated without regard to
the provisions of chapter 51 or subchapter III of chapter 53
of such title.
(4) Under such regulations as the President may prescribe,
any individual appointed under subparagraph (C) may be
entitled, upon removal (except for cause) from the position
to which the appointment was made, to reinstatement to the
position occupied by that individual at the time of
appointment or to a position of comparable grade and pay.
SEC. 8532. AUDITS.
(a) In General.--The Trade and Development Agency shall be
subject to the provisions of chapter 35 of title 31, United
States Code, except as otherwise provided in this section.
(b) Independent Audit.--An independent certified public
accountant shall perform a financial and compliance audit of
the financial statements of the Trade and Development Agency
each year, in accordance with generally accepted Government
auditing standards for a financial and compliance audit,
taking into consideration any standards recommended by the
Comptroller General. The independent certified public
accountant shall report the results of such audit to the
Director of the Trade and Development Agency. The
financial statements of the Trade and Development Agency
shall be presented in accordance with generally accepted
accounting principles. These financial statements and the
report of the accountant shall be included in a report
which contains, to the extent applicable, the information
identified in section 3512 of title 31, United States
Code, and which the Trade and Development Agency shall
submit to the Congress not later than 6-1/2 months after
the end of the last fiscal year covered by the audit. The
Comptroller General may review the audit conducted by the
accountant and the report to the Congress in the manner
and at such times as the Comptroller General considers
necessary.
(c) Audit by Comptroller General.--In lieu of the financial
and compliance audit required by paragraph (2), the
Comptroller General shall, if the Comptroller General
considers it necessary or upon the request of the Congress,
audit the financial statements of the Trade and Development
Agency in the manner provided in paragraph (2).
(d) Availability of Information.--All books, accounts,
financial records, reports, files, workpapers, and property
belonging to or in use by the Trade and Development Agency
and the accountant who conducts the audit under paragraph
(2), which are necessary for purposes of this subsection,
shall be made available to the representatives of the General
Accounting Office designated by the Comptroller General.
SEC. 8533. ANNUAL REPORT.
The President shall, not later than December 31 of each
year, submit to the Committee on Foreign Affairs of the House
of Representatives and the Committee on Foreign Relations of
the Senate a report on the activities of the Trade and
Development Agency in the preceding fiscal year.
Subchapter D--Administrative Provisions for the Overseas Private
Investment Corporation
SEC. 8541. STOCK OF THE CORPORATION.
The Secretary of the Treasury shall hold the capital stock
of the Corporation.
SEC. 8542. 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.--
(1) In general.--All powers of the Corporation shall vest
in and be exercised by or under the authority of its Board of
Directors (hereafter in this subchapter referred to as `the
Board') which shall consist of 15 Directors (including the
Chair and Vice Chair), with 8 Directors constituting a quorum
for the transaction of business.
(2) Composition of the board.--
(A) Chair.--The Chair of the Board shall be the
Administrator of the United States Agency for International
Development, ex officio.
(B) Vice chair.--The Vice Chair of the Board shall be the
United States Trade Representative, ex officio, except that
the United States Trade Representative may designate the
Deputy United States Trade Representative to serve as Vice
Chairman in place of the United States Trade Representative.
(C) President of opic.--The President of the Corporation
shall serve as a Director, ex officio.
(D) Public sector directors.--(i) In addition to the
directors provided for in subparagraphs (A) through (C), five
Directors who are officers or employees of the Government of
the United States shall be designated by the President of the
United States, including an officer or employee of the
Department of Labor.
(ii) The Directors designated under this subparagraph shall
receive no additional compensation by virtue of their service
as such a Director.
(E) Private sector directors.--Eight Directors who are not
otherwise officers or employees of the Government of the
United States shall be appointed by the President of the
United States, by and with the advice and consent of the
Senate. Of these, at least--
(i) two shall be experienced in small business,
(ii) one shall be experienced in organized labor, and
(iii) one shall be experienced in cooperatives.
(F) Each director appointed under subparagraph (e).--
(i) shall be appointed for a term of not more than 3 years;
the terms of not more than three such Directors shall expire
in any 1 year;
(ii) shall serve until their successors are appointed and
qualified and may be reappointed to subsequent terms; and
(iii) shall be compensated at the daily equivalent of the
annual rate of pay in effect for level IV of the Executive
Schedule under section 5315 of title 5, United States Code,
for each day (including travel time) during which such
Director is actually engaged in the business of the
Corporation, and may be paid travel or transportation
expenses to the extent authorized for employees serving
intermittently in the Government service under section 5703
of title 5, United States Code.
(c) Appointment of the President.--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. In
making such appointment, the President shall take into
account the private business experience of the appointee. The
President of the Corporation shall be its Chief Executive
Officer and shall be responsible for the operations and
management of the Corporation, subject to bylaws and policies
established by the Board.
(d) Officers and Staff.--
(1) Executive Vice President.--The Executive Vice President
of the Corporation shall be appointed by the President of the
United States, by and with the advice and consent of the
Senate.
(2) Other officers and staff.--(A) The Corporation may
appoint such other officers and such employees (including
attorneys) and agents as the Corporation considers
appropriate.
(B) The officers, employees, and agents appointed under
this subsection shall have such functions as the Corporation
may determine.
(C) Of the officers, employees, and agents appointed under
this paragraph, 20 may be appointed, compensated or removed
without regard to civil service laws and regulations.
(D) Under such regulations as the President of the United
States may prescribe, any individual appointed under
subparagraph (C) may be entitled, upon removal (except for
cause) from the position to which the appointment was made,
to reinstatement to the position occupied by that individual
at the time of appointment or to a position of comparable
grade and pay.
SEC. 8543. 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, except for
payments to the financing account, shall be held by the
Corporation and shall be available to carry out its
purposes, including without limitation--
(1) payment of all expenses of the Corporation, including
investment promotion expenses;
(2) transfers and additions to the insurance reserve,
financing accounts and such other funds, accounts or reserves
as the Corporation may establish, at such time and in such
amounts as the Board may determine; and
(3) 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 paragraphs (1)
and (2).
SEC. 8544. GENERAL PROVISIONS RELATING TO INSURANCE AND
FINANCING PROGRAM.
(a) Agreements With Countries.--Insurance, reinsurance, and
guarantees issued under chapter 1 of title V shall not cover
investment made in connection with projects in any country or
area unless the President of the United States has agreed
with the government of such country or area to institute a
program for such insurance, reinsurance, or guarantees.
(b) Protection of Interests of the Corporation.--The
Corporation shall determine that suitable arrangements exist
for protecting the interest of the Corporation in connection
with any insurance, reinsurance, or guarantee issued under
chapter 1 of title V, including arrangements concerning
ownership, use, and disposition of the currency, credits,
assets, or investments on account of which payment under such
insurance, guarantee, or reinsurance is to be made, and any
right, title, claim, or cause of action existing in
connection therewith.
(c) Full Faith and Credit Pledged.--All guarantees issued
pursuant to predecessor guarantee authority, and all
insurance, reinsurance, and guarantees issued pursuant to
chapter 1 of title V shall constitute obligations, in
accordance with the terms of such insurance, reinsurance, or
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.
(d) Fees.--Fees may be charged for providing insurance,
reinsurance, financing, and other services under chapter 1 of
title V in amounts to be determined by the Corporation. Fees
paid for project-specific transaction costs and other
transaction costs, including but not limited to project-
related travel and expenses for legal representation,
associated with services provided to specific investors or
potential investors pursuant to section 5102, including
financing, insurance, reinsurance, missions, seminars,
conferences, and other pre-investment services, shall be
available for obligation for the purposes for which they
were collected notwithstanding any other provision of law.
Transaction costs relating to investment financing
commitments entered into pursuant to section 5102(b) shall
be considered cash flows from the Government resulting
from financing commitments and shall be paid out of the
appropriate financing account established pursuant to
section 505(b) of the Federal Credit Reform Act of 1990.
(e) Insurance, Reinsurance, and Financing Limited to 20
Years.--No insurance, reinsurance, or financing of any equity
investment under chapter 1 of title V shall extend beyond 20
years from the date on which such insurance, reinsurance, or
financing is issued.
(f) Amount of Compensation Paid on Claims.--Compensation
for any insurance, reinsurance, or financing issued under
chapter 1 of title V shall not 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 such investment to
the extent provided by such insurance, reinsurance, or
guarantee, except that the Corporation may provide that--
(1) appropriate adjustments in the insured dollar value may
be made to reflect the replacement cost of project assets;
(2) compensation for a claim of loss under insurance of an
equity may be computed on the basis of the net book value
attributable to such equity investment on the date of loss;
and
(3) compensation for loss due to business interruption may
be computed on a basis to be determined by the Corporation
which reflects amounts lost.
Notwithstanding the preceding sentence, the Corporation shall
limit the amount of direct insurance and reinsurance issued
under section 5102 or 5103 so that risk of loss as to at
least 10 percent of the total investment of the insured and
its affiliates in the project is borne by the insured and
such affiliates, except that this limitation shall not apply
to direct insurance or reinsurance of loans by banks or other
financial institutions to unrelated parties.
(g) Limitation With Respect to Foreign Credit
Institutions.--Insurance, guarantees, or reinsurance 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.
(h) Settlement and Arbitration of Claims.--Claims arising
as a result of insurance, reinsurance, or guarantee
operations under chapter 1 of title V or under predecessor
guarantee 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.
(i) Contracts Presumed To Comply With Act.--Each insurance,
reinsurance, or guarantee 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.
(j) Penalties for Fraud.--Whoever knowingly makes any false
statement or report, or willfully overvalues any land,
property, or security, for the purpose of influencing in any
way the action of the Corporation with respect to any
insurance, reinsurance, guarantee, loan, equity investment,
or other activity of the Corporation under section 5102 or
any change or extension of any such insurance, reinsurance,
guarantee, loan, equity investment, or activity, by renewal,
deferment of action or otherwise, or the acceptance, release,
or substitution of security therefor, shall be fined not more
than $1,000,000 or imprisoned not more than 30 years, or
both.
(k) Use of Local Currencies.--Direct loans or investments
made in order to preserve the value of funds received in
inconvertible foreign currency by the Corporation as a result
of activities conducted pursuant to section 5102(a) shall not
be considered in determining whether the Corporation has made
or has outstanding loans, guaranties, or investments to the
extent of any limitation on obligations, commitments, and
equity investment imposed by or pursuant to chapter 1 of
title V. The provision of section 504(b) of the Federal
Credit Reform Act of 1990 shall not apply to direct loan
obligations made with funds described in this subsection.
(l) Termination.--Provisions of this or any other Act
requiring the termination of assistance under this or any
other Act shall not be construed to require the termination
of contracts or commitments that were entered or were being
processed under chapter 1 of title V prior to the effective
date of the termination of assistance.
SEC. 8545. GENERAL PROVISIONS AND POWERS.
(a) Principal Office.--The Corporation shall have its
principal office in the Distict of Columbia and shall be
deemed, for purposes of venue in civil actions, to be a
resident of the District of Columbia.
(b) Audits.--
(1) In general.--The Corporation shall be subject to the
applicable provisions of chapter 91 of title 31, United
States Code, except as otherwise provided in this Act.
(2) Independent audit.--An independent certified public
accountant shall perform a financial and compliance audit of
the financial statements of the Corporation each year, in
accordance with generally accepted Government auditing
standards for a financial and compliance audit. The
independent certified public accountant shall report the
results of such audit to the Board. The financial statements
of the Corporation shall be presented in accordance with
generally accepted accounting principles. These financial
statements and the report of the accountant shall be included
in a report which contains, to the extent applicable, the
information identified in section 9106 of title 31, United
States Code, and which the Corporation shall submit to the
Congress not later than 6-\1/2\ months after the end of the
last fiscal year covered by the audit. The Comptroller
General may review the audit conducted by the accountant and
report to the Congress in the manner and at such times as the
Comptroller General considers necessary.
(3) Audit by comptroller general.--The Comptroller General
shall, if the Comptroller General considers it necessary or
upon the request of the Congress, audit the financial
statements of the Corporation in the manner provided in
paragraph (2).
(4) Availability of information.--All books, accounts,
financial records, reports, files, work papers, and property
belonging to or in use by the Corporation and the accountant
who conducts the audit under paragraph (2), which are
necessary for purposes of this subsection, shall be made
available to the representatives of the General Accounting
Office designated by the Comptroller General.
(c) Powers.--To carry out the purposes of chapter 1 of
title V, the Corporation is authorized--
(1) to adopt and use a corporate seal, which shall be
judicially noticed;
(2) to sue and be sued in its corporate name;
(3) 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;
(4) 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;
(5) 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 considers
appropriate;
(6) to indemnify directors, officers, employees, and agents
of the Corporation for liabilities and expenses incurred in
connection with their Corporation activities;
(7) to require bonds of offices, employees, and agents and
to pay the premiums therefor;
(8) notwithstanding any other provision of law, to
represent itself or to contract for representation in all
legal and arbitral proceedings;
(9) to enter into limited-term contracts with nationals of
the United States for personal services to carry out
activities in the United States and abroad under section
5102;
(10) to purchase, discount, rediscount, sell, and
negotiate, with or without its endorsement or guarantee, and
guarantee notes, participation certificates, and other
evidence of indebtedness (except that the Corporation shall
not issue its own securities, except participation
certificates for the purpose of carrying out section
5101(c)(3), participation certificates in connection with
transactions authorized by 5102(b), or participation
certificates as evidence of indebtedness held by the
Corporation in connection with settlement of claims under
section 8544(h));
(11) to make and carry out such contracts and agreements as
are necessary and advisable in the conduct of its business;
(12) to exercise any priority of the government of the
United States in collecting debts from the estates of
bankrupt, insolvent, or decedent parties;
(13) to determine the character of an 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;
(14) to collect or compromise any obligations assigned to
or held by the Corporation, including any legal or equitable
rights accruing to the Corporation; and
(15) to take such actions as may be necessary or
appropriate to carry out the powers of the Corporation.
(d) Inspector General.--
(1) Authority.--The Inspector General of the United States
Agency for International Development may conduct audits,
investigations, and inspections of all phases of the
Corporation's operations and activities.
(2) Relation to president of corporation.--The Inspector
General shall report to and be under the general supervision
of the President of the Corporation with respect to
activities undertaken pursuant to this subsection, except
that the President of the Corporation shall not prevent or
prohibit the Inspector General from initiating, carrying out,
or completing any such activity in accordance with the
duties, authorities, and responsibilities contained in the
Inspector General Act or 1978 and any other applicable law or
regulation.
(3) Expenses.--The Inspector General shall be reimbursed by
the Corporation for all expenses incurred by the Inspector
General in connection with the Inspector General's
responsibilities under this subsection.
(4) Inspector general act.--For purposes of the Inspector
General Act of 1978, the Corporation shall continue to be
considered a Federal entity and the President of the
Corporation shall be considered the head of the Federal
entity.
(5) Semiannual report.--The semiannual report required
under section 5 of the Inspector General Act of 1978 shall
include information relating to activities of the Inspector
General undertaken pursuant to this subsection.
(e) Exemption From State and Local Taxation.--The
Corporation (including its franchise, capital, reserves,
surplus, advances, intangible property, and income) shall be
exempt from all taxation at any time imposed by any State,
the District of Columbia, or any county, municipality, or
local taxing authority.
SEC. 8546. ANNUAL REPORT; MAINTENANCE OF INFORMATION.
(a) Annual Report.--After the end of each fiscal year, the
President shall submit to the Congress a complete and
detailed report of the Corporation's operations during such
fiscal year. Such report shall include--
(1) an assessment, based upon the development impact
profiles required by section 5105(a), of the economic and
social development impact and benefits of the projects with
respect to which such profiles are prepared, and of the
extent to which the operations of the Corporation complement
or are compatible with the development assistance programs of
the United States and other donors; and
(2) a description of any project for which the
Corporation refused to provide any insurance, reinsurance,
financing, or other financial support, on account of
violations of human rights referred to in section 8543(d)
(b) Projections of Effects on Employment.--
(1) In general.--Each annual report required by subsection
(a) shall contain projections of the effects on employment in
the United States of all projects for which, during the
fiscal year covered by the report, the Corporation initially
issued any insurance, reinsurance, or guarantee or provided
financing. Each such report shall include projections of--
(A) the amount of United States exports to be generated by
those projects, both during the start-up phase and over a
period of years;
(B) the final destination of the products to be produced as
a result of those projects; and
(C) the impact such production will have on the production
of similar products in the United States with regard to both
domestic sales and exports.
(2) Information in aggregate form.--The projections
required by this subsection shall be based on an analysis of
each of the projects described in paragraph (1). Such
projections may, however, present information and analysis in
aggregate form, but only if--
(A) those projects which are projected to have a positive
effect on employment in the United States and those projects
which are projected to have a negative effect on employment
in the United States are grouped separately; and
(B) there is set forth for each such grouping the key
characteristics of the projects within that grouping,
including the number of projects in each economic sector, the
countries in which the projects in each economic sector are
located, and the projected level of the impact of the
projects in each economic sector on employment in the United
States and on United States trade.
(c) Maintenance of Information.--The Corporation shall
maintain as part of its records--
(1) all information collected in preparing the report
required by section 240A(c) of the Foreign Assistance Act of
1961 (as in effect before the enactment of the Overseas
Private Investment Corporation Amendments Act of 1988),
whether the information was collected by the Corporation
itself or by a contractor; and
(2) a copy of the analysis of each project analyzed in
preparing the projections required by subsection (b) of this
section or the report required by section 240A(c) of the
Foreign Assistance Act of 1961 (as in effect before the
enactment of the Overseas Private Investment Corporation
Amendments Act of 1988).
(d) Protection of Certain Information.--Subsection (b) does
not require the inclusion in any information submitted
pursuant to that subsection of any information which would
not be required to be made available to the public pursuant
to section 552 of title 5, United States Code (relating to
freedom of information).
SEC. 8547. DEFINITIONS.
As used in chapter 1 of title V and this subchapter, the
following terms have the following meanings:
(1) Board.--The term ``Board'' means the Board of Directors
of the Overseas Private Investment Corporation.
(2) Corporation.--The term ``Corporation'' means the
Overseas Private Investment Corporation.
(3) Eligible investor.--(A) The term ``eligible investor''
means--
(i) a United States citizen;
(ii) a corporation, partnership, or other association,
including a nonprofit association, which is created under the
laws of the United States, any State, the District of
Columbia, or any commonwealth, territory, or possession of
the United States, and which is substantially beneficially
owned by United States citizens; and
(iii) a foreign corporation, partnership, or other
association which is wholly owned by one or more United
States citizens or corporations, partnerships, or other
associations described in clause (ii), except that the
eligibility of any such foreign corporation shall be
determined without regard to any shares held by other than
United States citizens or corporations, partnerships, or
other associations described in clause (ii) if, in the
aggregate, such shares equal less than 5 percent of the total
issued and subscribed share capital of such foreign
corporation.
(B) For purposes of subparagraph (A)--
(i) in the case of insurance or a guarantee for any loan
investment, a final determination of whether a person is an
eligible investor may be made at the time the insurance or
guarantee is issued; and
(ii) in the case of insurance or a guarantee for any other
investment, an investor must be an eligible investor at the
time a claim arises as well as the time the insurance or
guarantee is issued.
(4) Expropriation.--The term ``expropriation'' includes 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.
(5) Investment.--The term ``investment'' includes any
contribution or commitment or funds, commodities, services,
patents, processes, or techniques, in the form of--
(A) a loan or loans to an approved project,
(B) the purchase of a share of ownership in any such
project,
(C) participation in royalties, earning, or profits of any
such project, and
(D) the furnishing of commodities or services pursuant to a
lease or other contract.
(6) Predecessor guarantee authority.--The term
``predecessor guarantee authority'' means prior guarantee
authorities (other than housing guarantee authorities)
repealed by the Foreign Assistance Act of 1969, sections
202(b) and 413(b) of the Mutual Security act of 1954, and
section 111(b)(3) of the Economic Cooperation Act of 1948
(exclusive of authority relating to informational media
guarantees).
Subchapter E--Definitions and Miscellaneous Provisions
SEC. 8551. DEFINITIONS.
(a) For purposes of this Act, the following terms have the
following meanings:
(1) Agency of the United States Government.--The term
``agency of the United States Government'' includes any
agency, department, board, wholly or partly owned
corporation, instrumentality, commission, or establishment of
the United States Government.
(2) Country--The term ``country'' includes area.
(3) Developing country.--The term ``developing country''
includes advanced developing country.
(4) Function.--The term ``function'' includes any duty,
obligation, power, authority, responsibility, right,
privilege, discretion, or activity.
(5) Gross violations of internationally recognized human
rights.--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, causing the disappearance of
persons by the abduction and clandestine detention of those
persons, and other flagrant denial of the right to life,
liberty, or the security of person.
(6) Includes.--The term ``includes'' means includes but is
not limited to.
(7) Notwithstanding.--The terms ``notwithstanding any other
provision of law'' and ``notwithstanding any provision of
this or any other Act'' shall not apply to title 31, United
States Code, the Congressional Budget and Impoundment Control
Act of 1974, the Balanced Budget and Emergency Deficit
Control Act of 1985, and the Budget Enforcement Act of 1990.
(8) Officer or employee.--The term ``officer or employee''
means civilian personnel of the United States Government and
members of the Armed Forces.
(9) Nonnuclear-weapon state.--The term ``nonnuclear-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.
(10) United States.--The term ``United States'', when used
in the geographic sense, includes the Commonwealth of Puerto
Rico, the Commonwealth of the Northern Mariana Islands, Guam,
American Samoa, the Virgin Islands, and any other territory
or possession of the United States.
(11) Major illicit drug producing country.--The term
``major illicit drug producing country'' means a country
producing five metric tons or more of opium or opium
derivative during a fiscal year or producing five hundred
metric tons or more of coca or marijuana (as the case may be)
during a fiscal year.
(12) Major drug transit country.--The term ``major drug
transit country'' means a country--
(A) that is a significant direct source of illicit narcotic
or psychotropic drugs or other controlled substances
significantly affecting the United States;
(B) through which are transported such drugs or substances;
or
(C) through which significant sums of drug-related profits
or monies are laundered with the knowledge or complicity of
the government.
(13) Narcotic and psychotropic drugs and other controlled
substances.--The term ``narcotic and psychotropic drugs and
other controlled substances'' has the same meaning as is
given by any applicable international narcotics control
agreement or domestic law of the country or countries
concerned.
(14) Agriculture.--The term ``agriculture'' includes
aquaculture and fisheries.
(15) Farmers.--The term ``farmers'' includes fishermen and
other persons employed in cultivating and harvesting food
resources from salt and fresh waters.
(16) Institution of higher education.--The term
``institution of higher education'' has the same meaning that
term is given by section 1201(a) of the Higher Education Act
of 1965.
(17) Armed forces.--The term ``Armed Forces'' means the
Army, Navy, Air Force, Marine Corps, and Coast Guard of the
United States.
(18) Defense article and related terms.--The terms
``defense article'', ``significant military equipment'', and
``major defense equipment'' shall have the same meaning as in
the Arms Export Control Act. The term ``defense service''
includes any service (including education and training),
test, inspection, repair, publication, or technical or other
assistance or defense information used for the purpose of
furnishing assistance administered through the Department of
Defense under this Act.
(19) Excess defense articles.--The term ``excess defense
articles'' means the quantity of defense articles owned by
the United States Government, and not procured in
anticipation of defense assistance or sales requirements, or
pursuant to a defense assistance or sales order, which is in
excess of the Approved Acquisition Objective 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.
(20) Value.--The term ``value'' means--
(A) 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
8201(c) such actual value shall not be taken into account;
(B) with respect to a nonexcess defense article delivered
from inventory to a foreign country or international
organization under this Act, the acquisition cost to the
United States Government, adjusted as appropriate for
condition and market value;
(C) with respect to a nonexcess defense article delivered
from new procurement to a foreign country or international
organization under this Act, the contract or production costs
of such article.
(21) Assistance Administered through the Department of
Defense.--The term ``assistance administered through the
Department of Defense'' means--
(A) the financing (including the guarantee of financing) of
sales of defense articles (including excess defense articles)
and defense services (including education and training) made
or licensed pursuant to sections 21, 22, 29, and 38 of the
Arms Export Control Act and the lease of defense articles
made pursuant to chapter 6 of that Act;
(B) the provision of education or training through the
Department of Defense under this Act;
(C) the provision of excess defense articles through the
Department of Defense under section 8405 of this Act; or
(D) the provision of assistance through the Department of
Defense under sections 3103, 3204, 7111 and 7115(b) of this
Act.
SEC. 8552. ACTIVITIES UNDER OTHER LAWS NOT AFFECTED.
Unless expressly provided to the contrary, provisions of
this Act and other provisions of law applicable to foreign
assistance shall not be construed to prohibit (or, with
respect to the Export-Import Bank of the United States, apply
to) activities authorized by or conducted under the Peace
Corps Act, the United States Information and Educational
Exchange Act of 1948, the Mutual Educational and Cultural
Exchange Act of 1961, the Export-Import Bank Act of 1945, the
Agricultural Act of 1949, the Agricultural Trade Development
and Assistance Act of 1954, the Food for Progress Act of
1985, the Inter-American Foundation Act, the African
Development Foundation Act, commercial export promotion
activities of the Department of Agriculture (including the
Commodity Credit Corporation), or to programs for which funds
are made available outside Budget Function 150.
TITLE IX--TECHNICAL AND CONFORMING PROVISIONS
SEC. 9101. EFFECTIVE DATE.
Except as otherwise provided in this Act, the provisions of
this Act shall take effect on October 1, 1994.
SEC. 9102. SAVING PROVISIONS.
(a) In General.--(1) 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 repealed by this Act shall continue in full
force and effect until modified by appropriate authority.
(2) Wherever provisions of this Act establish conditions
which must be complied with before use may be made of
authority contained in, or funds made available to carry out
the provisions of, this Act, compliance with, or satisfaction
of, substantially similar conditions under provisions
repealed by this Act shall be deemed to constitute compliance
with the conditions established by this Act.
(3) Funds made available pursuant to provisions of law
repealed by this Act shall, unless otherwise authorized or
provided by law, remain available for their original purposes
in accordance with the provisions of law originally
applicable thereto, or in accordance with the provisions of
law currently applicable to those purposes.
(4) References in law to provisions repealed by this Act
may hereafter be deemed to be references to corresponding
provisions of this Act, on a case-by-case basis as may be
appropriate.
(b) Certain Presidential Appointees.--The repeal by this
Act of any provision of the Foreign Assistance Act of 1961
providing for the appointment of an individual to a position
by the President, by and with the advice and consent of the
Senate, and the reenactment by this Act of that provision in
substantively identical form does not require the
reappointment of the individual holding that position on the
effective date specified in section 9101.
(c) Section 124(c) Authority.--Section 124(c) of the
Foreign Assistance Act of 1961, as in effect before the
effective date specified in section 9101 of this Act, shall
be deemed to remain in effect on and after that date. For
purposes of this section, references in section 124(c) to
sections 101 and 102 of the Foreign Assistance Act of 1961
shall be deemed to be references to sections 1101 and 1102 of
this Act, respectively.
(d) Guarantees and Loans Under Former Authority.--
Guarantees committed or outstanding under the former
authorities of sections 108, 222, and 222A of the Foreign
Assistance Act of 1961, as in effect before the effective
date specified in section 9101 of this Act, loans
obligated under section 108 on or before such date, the
fees and interest collected in connection with such
guarantees and loans, and income on claims receivable with
respect to such guarantees and loans, shall continue to be
subject to provisions of such Act originally applicable to
those guarantees and loans and the Federal Credit Reform
Act of 1990.
SEC 9103. MISCELLANEOUS PROVISIONS.
(a) Federal Act of State Doctrine.--
(1) In general.--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 claim of title or
other right to property 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 section
620(e)(1) of the Foreign Assistance Act of 1961 as in effect
before the effective date of this section.
(2) Exceptions.--This subsection shall not be applicable--
(A) 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 to property 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
(B) in any case with respect to which the President
determines that application of the act of 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.
(b) Accounting and Valuation of Foreign Currencies.--
(1) Under the direction of the President, the Secretary of
the Treasury shall have responsibility for valuation and
central accounting with respect to foreign credits (including
currencies) owed to or owned by the United States. In order
to carry out such responsibility, the Secretary shall issue
regulations binding upon all agencies of the United States
Government.
(2) The Secretary of the Treasury shall have sole authority
to establish for all foreign currencies or credits the
exchange rates at which such currencies are to be reported by
all agencies of the Government.
(c) Valuation of Expropriated Property.--
(1) Valuation.--If the President requests such an
evaluation, the Foreign Claims Settlement Commission is
authorized to evaluate the value of the property which is the
subject of an action described in section 7201(a) (3) of this
Act and render an advisory report with respect to the value
of such property to the President.
(2) Definition of United States Person.--For purposes of
section (a)(3), the term `United States person' means a
United States citizen or a corporation, partnership, or
association at least 50 percent beneficially owned by United
States citizens.
(d) Participation in Foreign Police Actions.--
(1) Prohibtion on Effecting an Arrest.--No officer or
employee of the United States may directly effect an arrest
in any foreign country as part of any foreign police action
with respect to narcotics control efforts, notwithstanding
any other provision of law.
(2) Exceptions.--Paragraph (1) does not prohibit an officer
or employee of the United States--
(A) with the approval of the United States chief of
mission, from being present when foreign officers are
effecting an arrest or from assisting foreign officers who
are effecting an arrest.
(B) from taking direct action to protect life or safety if
exigent circumstances arise which are unanticipated and which
pose an immediate threat to United States officers or
employees, officers or employees of a foreign government, or
members of the public.
(3) Maritime Law Enforcement.--With the agreement of a
foreign country, paragraph (1) does not apply with respect to
maritime law enforcement operations in the territorial sea of
that country.
(4) Interrogations.--No officer or employee of the United
States 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.
(5) Exception for status of forces arrangements.--This
section does not apply to the activities of the United States
Armed Forces in carrying out their responsibilities under
applicable Status of Forces arrangements.
(6) Definition.--For purposes of this subsection, the term
`legal and law enforcement measures' means--
(A) the enactment and implementation of laws and
regulations or the implementation of existing laws and
regulations to provide for the progressive control,
reduction, and gradual elimination of the illicit
cultivation, production, processing, transportation, and
distribution of narcotic drugs and other controlled
substances; and
(B) the effective organization, staffing, equipping,
funding, and activation of those governmental authorities
responsible for narcotics control.
SEC. 9104. CONFORMING AND OTHER AMENDMENTS.
(a) Title 5, United States Code.--Subchapter II of chapter
53 of title 5, United States Code, is amended--
(1) in section 5314, by striking out ``Director, Institute
for Scientific and Technological Cooperation.'';
(2) in section 5315, by striking out ``Deputy Director,
Institute for Scientific and Technological Cooperation.'';
and
(3) in section 5316, by striking out ``Additional officers,
Institute for Scientific and Technological Cooperation
(2).''.
(b) Title 15, United States Code.--Section 638(e)(1) of
title 15, United States Code is amended by striking out ``for
the Agency'' through ``countries'' and inserting in lieu
thereof ``the provisions of this section shall not be
applicable to the programs administered by the United States
Agency for International Development''.
(c) Arms Export Control Act.--The Arms Export Control Act
is amended as follows:
(1) Section 2(b) is amended by striking out--
(A) ``or financing for'' in paragraph (1);
(B) ``financing,'' both other places it appears.
(2) Section 3(c) is amended--
(A) in paragraph (1), by striking out ``(1)(A) No'' and all
that follows through ``(B) No cash'' and inserting in lieu
thereof ``(1) No'';
(B) in paragraph (1), as amended by subparagraph (A), by
striking out ``under this Act, or any predecessor Act,'' and
inserting in lieu thereof ``, through sale, financing or
otherwise, under this Act or the Peace, Prosperity, and
Democracy Act of 1994 (or under any predecessor military
sales or foreign assistance legislation)'';
(C) in paragraph (3)(A), by striking out ``subparagraph
(A)'' and all that follows through ``such paragraphs,'' and
inserting in lieu thereof ``paragraph (1)''; and
(D) in paragraph (3)(B), by striking out ``subparagraph (B)
of''.
(3) Section 3 is amended--
(A) in subsection (d), by striking out ``section 505(a)(1)
or 505(a)(4) of the Foreign Assistance Act of 1961'' and
inserting in lieu thereof ``section 8212(a)(1) of the Peace,
Prosperity, and Democracy Act of 1994''; and
(B) in subsection (e), by striking out ``section 505 of the
Foreign Assistance Act of 1961'' and inserting in lieu
thereof ``section 8212(a)(1) of the Peace, Prosperity, and
Democracy Act of 1994''.
(4) Section 4 is amended by inserting after ``such friendly
countries'' ``or, if financed with assistance furnished under
the Peace, Prosperity, and Democracy Act of 1994, for such
other purposes as are provided for under that Act''.
(5) Section 5(a) is amended by striking out ``, and no
credits (including participations in credits) or guaranties
extended to or for'' and inserting in lieu thereof ``to''.
(6) Section 6 is amended--
(A) by striking out ``, no credits or guarantees may be
extended,''; and
(B) by inserting ``and no assistance administered through
the Department of Defense may be furnished under the Peace,
Prosperity, and Democracy Act of 1994'' after ``this Act''.
(7) Section 21 is amended--
(A) by amending (a)(1)(c) to read as follows, ``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
that is concurrently receiving assistance under the Peace,
Prosperity, and Democracy Act of 1994 or is separately
justified for the fiscal year in which the associated
letter of offer is issued, only those additional costs
that are incurred by the United States in furnishing such
training'';
(B) by amending subsection (c)(1) to read as follows:
``(A) Members of the Armed Forces assigned or detailed to
provide defense services under this Act may not perform
duties of a combatant nature, including any duty related to
training and advising that may engage United States Armed
Forces personnel in combat activities, outside the United
States in connection with the performance of those defense
services.
``(B) Subparagraph (A) shall not apply if the President
determines, and reports to the Congress, that its application
would not be in the national interest of the United
States.''; and
(C) in subsection (e)--
(i) by deleting subparagraph (1)(B);
(ii) by deleting ``(C)'' in subparagraph (1)(c) and
inserting in lieu there ``(D)'';
(iii) by deleting paragraph (2); and
(iv) by deleting ``(3)'' and inserting in lieu thereof
``(2)''.
(8) Section 23 is repealed.
(9) Section 24 is amended--
(A) by amending this section caption to read ``Provisions
Relating to Former Credit and Guaranty Authorities'';
(B) in subsection (a), by striking out ``The'' in the first
sentence and inserting in lieu thereof ``To the extent
necessary to carry out the provisions under the heading
``Foreign Military Sales Debt Reform'' in title III of the
Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1988 (as contained in section 101(e) of
Public Law 100-202), the'';
(C) in subsection (b) by inserting ``before the effective
date of the Peace, Prosperity, and Democracy Act of 1994''
after ``section 23''; and
(D) by striking out subsection (c) and inserting in lieu
thereof the following:
``(c) The single reserve established under this section for
the payment of claims under guarantees issued under the
authority of this section may be referred to as the `Foreign
Military Loan Liquidating Account'.
``(d) Any guarantees issued under the authority of this
section are backed by the full faith and credit of the United
States.''.
(10) Section 25(a) is amended--
(A) in paragraph (5)(A) by striking out ``military
education'' and all that follows through ``guarantees,'' and
inserting in lieu thereof ``and assistance administered
through the Department of Defense under the Peace,
Prosperity, and Democracy Act of 1994,'';
(B) in paragraph (5)(B) by striking out ``credits or
guaranties under this Act'' and inserting in lieu thereof
``assistance administered through the Department of Defense
under the Peace, Prosperity, and Democracy Act of 1994''; and
(C) in paragraph (11) by inserting before the semicolon at
the end of the paragraph the following:
``, and the status of each provision of assistance
administered through the Department of Defense for the
procurement of defense articles or defense services under the
Peace, Prosperity, and Democracy Act of 1994 with respect to
which there remains outstanding any unpaid obligation or
potential liability''.
(11) Section 25(d), as added by 112(b) of the International
Security and Development Cooperation Act of 1985, is amended
by striking out ``under this Act or under section 503(a)(3)
of the Foreign Assistance Act of 1961'' and inserting in lieu
thereof ``with assistance administered through the Department
of Defense under the Peace, Prosperity, and Democracy Act of
1994''.
(12) Section 31 is amended--
(A) by striking out ``Authorization and Aggregate Ceiling
on Foreign Military Sales Credits.'' and all that follows
through ``(d)'' and inserting in lieu thereof ``Aggregate
Costs''; and
(B) by striking out ``of chapter 2 of part II of the
Foreign Assistance Act of 1961'' and inserting in lieu
thereof ``the Peace, Prosperity, and Democracy Act of 1994''.
(13) Section 36(a) is amended--
(A) in paragraph (7), by striking out ``under chapters 2,
5, 6 or 8 of part II of the Foreign Assistance Act of 1961''
and inserting in lieu thereof ``assistance administered
through the Department of Defense under the Peace,
Prosperity, and Democracy Act of 1994''; and
(B) in paragraph (10), by striking out ``section
505(a)(1)(B) of the Foreign Assistance Act of 1961'' and
inserting in lieu thereof ``sections 8212 and 8213 of the
Peace, Prosperity, and Democracy Act of 1994''.
(14) Section 37 is amended--
(A) in the section caption by striking out ``Relating to
Foreign Military Sales Credits'';
(B) in subsection (a), by striking out ``section 23'' and
inserting in lieu thereof ``the former authority of section
23 or under the authority of the Peace, Prosperity, and
Democracy Act of 1994''; and
(C) in subsection (b), by inserting ``the former authority
of'' after ``extended pursuant to''.
(15) Section 42 is amended--
(A) in subsection (a) by striking out ``, but subject to
subsection (b) of this section,'' in the first sentence and
inserting in lieu thereof ``;'';
(B) in subsection (b), by striking out ``No credit sale
shall be extended under section 23, and no guarantee shall be
issued under section 24'' and inserting in lieu thereof ``No
assistance shall be furnished under the Peace, Prosperity,
and Democracy Act of 1994 to be administered through the
Department of Defense for the financing of sales of defense
articles or services''; and
(C) in subsection (d)(1), by striking out ``and guaranties
under sections 21, 22, 23, 24,'' and inserting in lieu
thereof ``under sections 21, 22,''.
(16) Section 47(1) is amended by deleting ``section 644(g)
of the Foreign Assistance Act of 1991'' and inserting in lieu
thereof, ``section 8551(19) of the Peace, Prosperity, and
Democracy Act of 1994''.
(d) United States Agency for International Development.--
References in any Act to the ``Agency for International
Development'' shall be deemed to be a reference to the United
States Agency for International Development.
SEC. 9105. TRANSITION RULES AND MILITARY ASSISTANCE.
(a) Desposition of Certain Previously Provided Military
Equipment.--The President may waive requirements imposed
pursuant to sections 505(a)(4) and (f) of the Foreign
Assistance Act of 1961, as in effect before the effective
date of this title, with respect to defense articles or
related training or other defense services furnished before
that date.
(b) Commitment of Prior Year Military Assistance.--If the
President at any time notifies Congress that no further sales
will be made pursuant to the Arms Export Control Act after
the date of such notification to a specified country under
circumstances then prevailing, any uncommitted funds
allocated for such country that were transferred under the
authority of section 8202(g)(6) of this Act, the former
authority of section 23 of the Arms Export Control Act, and
the former authority of section 503(a)(3) of the Foreign
Assistance Act of 1961 for the purpose of financing such
sales may be committed to finance such sales to other
eligible countries subject to advance notification to the
Committees on Appropriations and Foreign Relations of the
Senate and the Committee on Appropriations and Foreign
Affairs of the House of Representatives.
(c) Sales.--Sales under the Arms Export Control Act which
are wholly paid from funds that, prior to the effective date
of this Act, were transferred under the former authority of
section 503(a)(3) of the Foreign Assistance Act of 1961 or
were made available on a nonrepayable or grant basis under
section 23 of the Arms Export Control Act, shall be priced on
the same basis as described in section 8201(d).
SEC. 9106. REPEAL OF OBSOLETE PROVISIONS.
(a) 1992 Jobs Through Export Act.--Title III of the Jobs
Through Exports Act of 1992 is repealed.
(b) 1988 OPIC Act.--The Overseas Private Investment
Corporation Amendments Act of 1988 (as enacted by reference
by section 555 of the Foreign Operations, Export Financing,
and Related Programs Appropriations Act, 1989) is repealed.
(c) 1988 Internatinal Narcotics Control Act.--The
International Narcotics Control Act of 1988 is repealed.
(d) 1988 Foreign Operations Appropriations Act.--Section
537(h)(2) of the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1988, as included in
P.L. 100-202, is repealed.
(e) Narcotics Control Trade Act.--Section 802(e) and 804 of
the Narcotics Control Trade Act (which is title VIII of the
Trade Act of 1974) are repealed.
(f) 1987 Foreign Assistance Appropriations Act.--Section
539(g)(2) of the Foreign Assistance and Related Programs
Appropriations Act, 1987, as included in P.L. 99-591, is
repealed.
(g) 1986 Drug Act.--The International Narcotics Control Act
of 1986 (which is title II of the Anti-Drug Abuse Act of
1986) is repealed.
(h) 1986 Assistance Act.--The Special Foreign Assistance
Act of 1986 is repealed except for section 1 and section 204.
(i) 1986 Anglo-Irish Agreement Support Act.--Section 6 of
the Anglo-Irish Agreement Support Act of 1986 is repealed.
(j) 1985 Assistance Act.--The International Security and
Development Cooperation Act of 1985 is repealed except for
section 1, section 131, section 132, section 504, section
505, part B of title V (other than section 558 and section
559), section 1302, section 1303, and section 1304.
(k) 1985 Jordan Supplemental Act.--The Jordan Supplemental
Economic Assistance Authorization Act of 1985 is repealed.
(l) 1985 African Famine Act.--The African Famine Relief and
Recovery Act of 1985 is repealed.
(m) 1983 Assistance Act.--The International Security and
Development Assistance Authorization Act of 1983 is repealed.
(n) 1983 Lebanon Assistance Act.--The Lebanon Emergency
Assistance Act of 1983 is repealed.
(o) 1981 Assistance Act.--The International Security and
Development Cooperation Act of 1981 is repealed except for
section 1, section 709, and section 714.
(p) 1981 OPIC Amendments Act.--The OPIC Amendments Act of
1981 is repealed.
(q) 1980 Assistance Act.--The International Security and
Development Cooperation Act of 1980 is repealed except for
section 1, section 110, section 315, and title V.
(r) 1979 Development Assistance Act.--The International
Development Cooperation Act of 1979 is repealed.
(s) 1979 Security Assistance Act.--The International
Security Assistance Act of 1979 is repealed.
(t) 1979 Special Security Assistance Act.--The Special
International Security Assistance Act of 1979 is repealed.
(u) 1978 Development Assistance Act.--The International
Development and Food Assistance Act of 1978 is repealed,
except for section 1, title IV, and section 603(a)(2).
(v) 1978 Security Assistance Act.--The International
Security Assistance Act of 1978 is repealed.
(w) 1977 Development Assistance Act.--The International
Development and Food Assistance Act of 1977 is repealed
except for section 1, section 132(b), and section 133.
(x) 1977 Security Assistance Act.--The International
Security Assistance Act of 1977 is repealed.
(y) 1976 Security Assistance Act.--The International
Security Assistance and Arms Export Control Act is repealed
except for section 1, section 201(b), section 212(b), section
601, and section 608.
(z) 1975 Development Assistance Act.--The International
Development and Food Assistance Act of 1975 is repealed.
(aa) 1975 BIB Act.--Public Law 94-104 is repealed.
(bb) 1974 Assistance Act.--The Foreign Assistance Act of
1974 is repealed.
(cc) 1973 Emergency Assistance Act.--The Emergency Security
Assistance Act of 1973 is repealed.
(dd) 1973 Assistance Act.--The Foreign Assistance Act of
1973 is repealed.
(ee) 1973 Department of State Appropriations Authorization
Act.--Section 13 of the Department of State Appropriations
Authorization Act of 1973 is repealed.
(ff) 1971 Assistance Act.--The Foreign Assistance Act of
1971 is repealed.
(gg) 1971 Special Assistance Act.--The Special Foreign
Assistance Act of 1971 is repealed.
(hh) 1971 FMS Act.--The Act entitled ``An Act to amend the
Foreign Military Sales Act, and for other purposes'',
approved January 12, 1971 (Public Law 91-672), is repealed.
(ii) 1969 Assistance Act.--The Foreign Assistance Act of
1969 is repealed except for the first section and part IV.
(jj) 1968 Assistance Act.--The Foreign Assistance Act of
1968 is repealed.
(kk) 1964 Assistance Act.--The Foreign Assistance Act of
1964 is repealed.
(ll) Foreign Assistance Act of 1961.--The Foreign
Assistance Act of 1961, as amended, is repealed except for
the first section, section 226, chapter 11 of part I, and
part IV.
(mm) Latin American Development Act.--The Latin American
Development Act is repealed.
(nn) 1959 Mutual Security Act.--The Mutual Security Act of
1959 is repealed.
(oo) 1954 Mutual Security Act.--Section 402 and section 417
of the Mutual Security Act of 1954 are repealed.
(pp) 1979 Reorganization Plan.--Reorganization Plan No. 2
of 1979 is repealed.
(qq) Freedom Support Act.--Section 907 of the FREEDOM
Support Act is repealed.
(rr) Migration and Refugee Assistance Act.--The Migration
and Refugee Assistance Act of 1962 is repealed.
(ss) 1982-3 State Authorization Act.--Section 109 of the
Department of State Authorization Act, Fiscal Years 1982 and
1983, is repealed.
(tt) 1984-5 Department of State Authorization Act.--
Sections 1004 and 1005(a) of the Department of State
Authorization Act, Fiscal Years 1984 and 1985, are repealed.
(uu) Savings Provision.--Except as otherwise provided in
this Act, the repeal by this Act of any provision of law that
amended or repealed another provision of law does not affect
in any way that amendment or repeal.
____
SECTIONAL ANALYSIS OF THE PEACE, PROSPERITY, AND DEMOCRACY ACT OF 1994
The Peace, Prosperity, and Democracy Act of 1994 repeals
the Foreign Assistance Act of 1961 and provides a policy
framework and authorities for programs to promote the
prosperity and security of the United States by supporting
bilateral, multilateral, and people-to-people partnerships
for the advancement of market economies and democracy.
Short Title
Section 1--Short Title.
This section states that the short title of this bill is
``The Peace, Prosperity, and Democracy Act of 1994''.
Table of Contents
Section 2--Table of Contents.
This section contains the table of contents for the bill.
Statement of Policy
Section 3--Statement of Policy.
This section states the policy framework for the bill. This
framework emphasizes the importance and interrelationship of
the programs authorized, or otherwise included in the Act,
for advancing United States economic and political interests
both at home and abroad. The financial, material, and human
resources included in the bill correspond to six mutually
reinforcing objectives:
(1) Promoting sustainable development.--Programs that
encourage broad-based economic growth, protect the
environment, stabilize world population, and promote
democratic participation in development.
(2) Promoting democracy.--Global engagement in support of
human rights, democratic institution building, good
governance, and open, civil societies, especially in
countries making the transition from communism to democracy.
(3) Promoting peace.--Preventive diplomacy, maintaining and
restoring peace, regional peace processes, and cooperation
against the proliferation of weapons of mass destruction,
terrorism, narcotics trafficking, and international crime.
(4) Providing humanitarian and crisis assistance.--Quick,
flexibile assistance, including and assistance to facilitate
the provision of emergency food aid and private
contributions, and multilateral efforts to victims of natural
and man-made disasters.
(5) Promoting growth through trade and investment.--
Enhanced employment at home and abroad through programs to
expand trade and investment and foster market reform in
partnership with American business, universities, state and
local governments, and international financial institutions.
(6) Advancing diplomacy.--Diplomatic persuasion and
preventive diplomacy to advance United States security and
prosperity, to meet long-term global challenges, and to build
cooperative arrangements with allies and multilateral
organizations.
Title I--Sustainable Development
chapter 1--sustainable development authorities
Section 1101--Statement of Policy.
This section sets forth the basic policy rational for
sustainable development programs stating, in part, that
United States support for people-to-people, bilateral, and
multilateral sustainable development programs must be
targeted on broad-based economic growth that reduces hunger
and poverty, protects the environment, enhances human
capabilities, upholds democratic values, and improves the
quality of life for current generations while preserving that
opportunity for future generations.
Section 1102--Policies Concerning Sustainable Development Programs.
This section describes the basic purposes of sustainable
development programs and states that these purposes can best
be achieved through a balanced, participatory and
comprehensive cooperation program targeted on four inter-
dependent objectives: (1) encouraging broad-based economic
growth, (2) protecting the global environment, (3) supporting
democratic participation, and (4) stabilizing world
population growth.
The section further defines several underlying principles
that apply in carrying out sustainable development programs:
(1) popular participation, stating that sustainable
development depends for its success on the empowerment of
people to make political and economic decisions, the
expansion of women's opportunities is essential to
sustainable development, the necessity to consult with, and
fully engage, nongovernmental organizations, and to involve
U.S. institutions (particularly educational institutions) to
achieve broad-based sustainable development; (2) managing for
results, stating that United States sustainable development
programs cannot substitute for a developing country's own
efforts to improve the lives of its people, that such
programs are to be concentrated in countries that have a
demonstrated need for, and will make effective use of, those
programs; and (3) coordination of sustainable development
programs with other bilateral and multilateral donors.
Section 1103--Voluntary Cooperation in Development.
This section expresses the sense of Congress concerning the
importance of the participation of United States private
voluntary organizations, labor unions, cooperatives, credit
unions, and colleges and universities in the development
process. The section also authorizes the use of funds made
available under the bill for support of American schools and
hospitals abroad. Such support must satisfy sustainable
development criteria but may be located in any country
eligible to receive assistance under the bill. As under the
current Foreign Assistance Act, programs for American schools
and hospitals abroad are not subject to the statutory
limitations on assistance to countries that are otherwise
applicable to sustainable development programs.
Section 1104--Microenterprise and Other Credit Programs.
This section recognizes the importance of and authorizes
assistance for microenterprise and other credit programs in
furtherance of the achievement of sustainable development
objectives.
Section 1105--Availability of Funds.
This section authorizes the President to carry out
sustainable development programs and states that funds shall
be available to carry out this chapter in amounts as
authorized and appropriated.
chapter 2--development fund for africa
Section 1201--Sustainable Development Programs for Sub-Saharan Africa.
This section contains a statement of policy regarding sub-
Saharan Africa and the need for a steady, long-term approach
to the development problems in the region. Funds appropriated
for sustainable development programs may be made available
for sustainable development programs for sub-Saharan Africa.
Such programs may be provided notwithstanding sections
7201(a)(7) and 8402 of this bill, and any similar provision
of law.
chapter 3--role of related programs
Section 1301--Statement of Policy Regarding the Role of International
Financial Institutions.
This section contains a statement of policy regarding the
role of the international financial institutions in the
achievement of sustainable development objectives.
Section 1302--Statement of Policy Regarding the Role of the Peace
Corps.
This section contains a statement of policy regarding Peace
Corps' activities and their complementarity with sustainable
development programs authorized by this title.
Section 1303--Statement of Policy Regarding the Rule of African
Development and Inter-American Foundations.
This section contains a statement of policy regarding
African Development and Inter-American Foundation activities
and their complementarity with sustainable development
programs authorized this title.
Section 1304--Statement of Policy Regarding Role of P.L. 480 Non-
Emergency Title II and Title III Programs.
This section contains a statement of policy regarding the
role of non-emergency P.L. 480 title II and title III
programs in fostering sustainable development. By giving
priority to those countries that have demonstrated a
commitment to, among other things, promoting food security
(met through both domestic production and use of foreign
exchange earnings to import food), these programs show a
consistency of purpose with the sustainable development
programs authorized by this bill.
Title II--Building Democracy
Section 2001--Findings and Statement of Policy.
This section sets forth the findings and statement of
policy relevant to providing assistance to assist in building
democracy worldwide. Subsection (a) sets forth findings
regarding the worldwide movement toward democracy (which is
essential to achieving respect for individual human rights
and fundamental freedoms), the threats posed to democratizing
countries and democratic institutions and the need for the
international community and the United States to respond
rapidly to the new challenges associated with democratic
development.
Subsection (b) states a United States policy of assisting
countries in transition to democracy and where democratic
gains are threatened, and notes at the same time that
promoting democracy is the global community's responsibility.
chapter 1--promoting democracy
Subchapter A--General
Section 2101--Authority.
This section authorizes the President to provide assistance
for countries in transition to democracy or where democratic
progress or institutions are threatened.
Section 2102--Objectives and Types of Assistance.
This section states that programs should be designed to
facilitate the worldwide trend toward more open, just and
democratic societies and lists examples of such programs.
Subsection (b) lists the objectives for which assistance may
be provided to military or law enforcement forces under this
authority, and notes human rights as a relevant consideration
in providing assistance under this subsection.
Section 2103--Availability of Funds; Authorities.
This section states that funds shall be available to carry
out this subchapter in amounts as authorized and
appropriated. This section further states that amounts made
available under this subchapter for assistance administered
through the Department of Defense are to be separately
authorized and appropriated. Assistance provided under this
chapter may be made available notwithstanding any other
provision of law.
Subchapter B--Independent States of the Former Soviet Union
Section 2201--Statement of Policy.
This section contains a statement of policy emphasizing the
importance of the success of democratic and economic
transformation in the independent states of the former Soviet
Union and the role of the United States leadership and the
international community in supporting such reforms.
Section 2202--Provision of Assistance.
This section states that funds shall be available to carry
out this subchapter in amounts as authorized and appropriate.
It also provides that such funds may be made available under
chapter 11 of part I of the Foreign Assistance Act of 1961,
and shall be considered assistance under this bill for
purposes of the bill's administrative authorities. The
responsibilities of the Coordinator designated under section
102 of the FREEDOM Support Act would apply to any assistance
made available under this chapter.
Subchapter C--Central and Eastern Europe
Section 2301--Statement of Policy.
This section contains statements of policy which stress the
importance of supporting economic and political reform, and
respect for human rights in Central and East European
countries.
Section 2302--Availability of Funds.
This section states that funds shall be available to carry
out this subchapter in amounts as authorized and appropriated
to take actions under the Support for East European Democracy
(SEED) Act of 1989, notwithstanding any other provision of
law, and makes the bill's administrative authorities
applicable to such funds. The responsibilities of the
Coordinator designated under section 601 of the SEED Act of
1989 would apply to any assistance made available under this
chapter.
chapter 2--information and exchange
Section 2401--Policy.
This section contains statements of policy concerning the
importance of USIA's information and exchange programs to
fostering democracy around the world.
Title III--Promoting Peace
Section 3001--Statement of Policy.
This section contains a statement of policy relating to
promoting peace, which refers to the need for assistance to
address threats to peace during the Post-Cold War transition.
chapter 1--peacekeeping and related programs
Section 3101--Statement of Policy.
This section contains statements of policy concerning
peacekeeping and related programs which enumerate types of
post-Cold War global crises and threats to peace and refer to
Congressional support for appropriate bilateral and
multilateral peace operations in creating an environment of
security and stability.
Section 3102--General Authority.
This section provides the authority for the United States
and assessed and voluntary contributions for international
peacekeeping and other international activities directed to
the maintenance or restoration of international peace and
security. Subsection (b) states that funds will be made
available for each of these accounts in authorizing and
appropriations legislation, and also provides authority to
transfer funds between these accounts. Subsection (c)
authorizes such funds to be made available notwithstanding
any other provision of law. The Administration intends to
supplement these accounts in the future with a DOD account
to pay U.S. assessed contributions for UN peace operations
involving activities under Chapter VII of the UN Charter,
thereby effecting a ``shared responsibility'' approach to
U.S. participation in international peace operations. As
under current law, assessed contributions for peacekeeping
are not considered assistance for purposes of applying
limitations or restrictions on assistance under this bill
or any other act.
Section 3103--Drawdown Authorities.
This section authorizes the President to drawdown up to
$100,000,000 per fiscal year from the inventory and resources
of any United States Government agency for peacekeeping and
related programs.
CHAPTER 2--NONPROLIFERATION AND DISARMAMENT FUND
Section 3201--Statement of Policy.
This section contains statements of policy concerning the
risk posed by the proliferation of deadly weapons and the
importance of arms control and bilateral and multilateral
efforts to prevent proliferation.
Section 3202--Provision of Assistance.
This section authorizes the provision of assistance to
facilitate six nonproliferation and disarmament related
purposes.
Section 3203--Availability of Funds.
This section states that funds shall be available to carry
out this chapter in amounts as authorized and appropriated.
Section 3204--Drawdown Authorities.
This section authorizes the President to drawdown up to
$100,000,000 per fiscal year from the inventory and resources
of any United States Government agency for nonproliferation
and disarmament.
CHAPTER 3--REGIONAL PEACE, SECURITY AND DEFENSE COOPERATION
Section 3301--Statement of Policy.
This section contains statement of policy regarding
regional peace (including Near East Peace), stability and
defense cooperation.
Section 3302--Authority and Purposes.
This section authorizes the provision of assistance for
three listed purposes relating to supporting Near East peace,
meeting threats to international peace, and enabling
countries to share the burden in collective security efforts.
Section 3303--Considerations in Providing Defense Cooperation
Assistance.
This section states considerations relevant in providing
assistance under this chapter concerning the shifting of
resources away from the provision of defense articles to
economic development purposes.
Section 3304--Availability of Funds.
This section states that funds shall be available to carry
out this chapter in amounts as authorized and appropriated.
This section further states that amounts made available under
this chapter for assistance administered through the
Department of Defense are to be separately authorized and
appropriated.
CHAPTER 4--INTERNATIONAL NARCOTICS TRAFFICKING, TERRORISM AND CRIME
PREVENTION
Section 3401--Statement of Policy.
This section contains a statement of policy which cites the
threats posed by narcotics trafficking, international
terrorism and other forms of international criminal activity
and the need for United States bilateral and multilateral
assistance and international cooperation to stem all such
activity.
Section 3403--Authorities.
This section sets forth the purposes for which anti-
narcotics, anti-terrorism and anti-crime assistance may be
provided which includes enhancing anti-narcotics, anti-
terrorism, and anti-crime skills of foreign law enforcement
forces.
Section 3402--Provisions related to Anti-narcotics Programs.
This section sets forth several additional authorities and
limitations relating to anti-narcotics programs concerning
authority to provide anti-narcotics and anti-narcotics
related assistance notwithstanding certain provisions of law,
agreements with other countries, contributions by recipient
countries to counter-narcotics efforts, monitoring the use of
herbicides for aerial eradication of narcotics, limitations
on uses of aircraft and other equipment, prohibition on
assistance to drug traffickers, and coordination authority of
the Secretary of State for all United States assistance to
combat illicit narcotics production or trafficking.
Section 3404--Provisions Related to Law Enforcement Training.
This section contains additional provisions concerning law
enforcement training provided for anti-terrorism and anti-
crime programs.
Section 3405--Waiver of Certain Restrictions on Assistance.
This section provides that the prohibition on assistance
for countries in arrears on debts owed to the United States
contained in section 7201(a)(7) of the bill and any other
similar provisions of law shall not apply to assistance under
this chapter.
Section 3406--Availability of Funds.
This section states that funds shall be available to carry
out this chapter in amounts as authorized and appropriated.
This section further states that amounts made available under
this chapter for assistance administered through the
Department of Defense are to be separately authorized and
appropriated.
Title IV--Providing Humanitarian Assistance
Section 4001--Statement of Policy.
This section contains a statement of policy regarding the
importance of providing humanitarian and crisis assistance in
a post Cold War era where the need for such assistance seems
to be increasing at a significant pace.
CHAPTER 1--REFUGEE ASSISTANCE
Section 4101--Statement of Policy and Purposes.
This section authorizes the President to provide refugee
and migration assistance, and emergency refugee and migration
assistance, to promote the prevention and solution of refugee
and other migration problems. The authorities of this section
may be exercised notwithstanding any other provision of law.
Section 4102--Availability of Funds.
This section states that funds shall be available to carry
out this chapter in amounts as authorized and appropriated.
CHAPTER 2--DISASTER ASSISTANCE
Section 4201--Policy.
This section contains a statement of policy regarding the
provision of assistance under this chapter.
Section 4202--Authority to Provide Assistance.
This section authorizes the President to provide assistance
for international relief and rehabilitation assistance
relating to natural and manmade disasters, and also
authorizes the use of a portion of the funds made available
under this chapter for rapid response reconstruction and
institution building activities following natural or manmade
disasters. Assistance under this chapter may be furnished
notwithstanding any other provision of law. This section also
allows the President to obligate up to $50,000,000 in any
fiscal year of funds appropriated for any other title of this
bill to be used for the purposes and under the authorities of
this chapter.
Section 4203--Availability of Funds.
This section states that funds shall be available to carry
out this chapter in amounts as authorized and appropriated.
CHAPTER 3--EMERGENCY FOOD ASSISTANCE
Section 4301--Statement of Policy Regarding Emergency Food Assistance
Under Public Law 480, Title II.
This section contains of statement of policy regarding
emergency food assistance under Public Law 480, title II.
Title V--Promoting Growth Through Trade and Investment
Section 5001--Statement of Policy.
This section contains a statement of policy concerning
relationship between programs that promote United States
trade and investment in developing countries and the economic
growth and development of those countries.
CHAPTER 1--OVERSEAS PRIVATE INVESTMENT CORPORATION
Section 5101--Purpose and Policy.
This section establishes the Overseas Private Investment
Corporation (OPIC) and outlines general administrative
guidelines for OPIC operations. The section is similar to
section 231 of current law with the addition to the purpose
section of facilitating competitiveness of the U.S. private
sector and promoting U.S. economic growth. The guidelines
continue to require that OPIC consider the development impact
of each project, and give preferential treatment to
investments in the least developed countries. A new guideline
is added giving preference to projects involving U.S.
exports.
Section 5102--Investment Insurance, Financing, and other Programs.
This section authorizes OPIC insurance, financing,
investment encouragement and special activities. Subsection
(a) authorizes OPIC to issue investment insurance against
inconvertibility, expropriation, civil strife, and business
interruption; authorizes OPIC to share liabilities with
foreign governments and multilateral organizations, and
prohibits OPIC from issuing insurance to a single investor
for more than 10% of its maximum contingent liability. This
section is virtually identical to section 234(a) of current
law, except a requirement for OPIC to submit a report to
Congress each time it proposes to expand the type of risk
insured under ``civil strife'' or ``business interruption''
coverage has been removed. Provisions previously found in
section 234(f) authorizing the Corporation to contract with
insurance companies or financial institutions, to enter into
risk-sharing agreements, and to issue reinsurance have been
included in this subsection, in order to bring all insurance
authorities into a single subsection. These provisions are
virtually identical to section 234(f) of current law.
This section also authorizes in a single subsection (b) all
OPIC investment financing programs thereby bringing together
several existing programs. Subsection (b)(1) authorizes a
direct lending program previously found in section 234(c) of
current law. The direct lending program is improved to make
all investment projects eligible for a direct loan. The
direct loan is a streamlined financing method which minimizes
costly administrative and legal requirements often associated
with the guarantee program. (Under the credit reform concept,
budgetary differences between direct loans and loan
guarantees were eliminated.) In addition, certain
restrictions on using direct loans to finance operations for
the extraction of oil and gas and other minerals have been
removed. Subsection (b)(2) authorizes an equity finance
program. This section is similar to section 234(g) of current
law, except geographic limitations and consulting
requirements have been removed, and the program is made an
on-going finance program. Subsection (b)(3) authorizing OPIC
to issue investment guarantees is virtually identical to
section 234(b) of current law.
Subsection (c) authorizes OPIC to engage in various
investment encouragement activities, virtually identical to
section 234(d) of current law, except that certain
restrictions on the financing of studies to determine the
feasibility of extraction of oil and gas and other minerals
have been removed. Subsection (d) authorizes OPIC to
administer special assistance programs. This is virtually
identical to section 234(e) of current law.
Section 5103--Enhancing Private Political Risk Reinsurance Industry.
This section authorizes OPIC to enter into cooperative
programs with the private political risk industry and is
virtually identical to section 234A(a) of current law, except
the requirement for a statutory advisory group is eliminated
as part of a government-wide initiative to reduce such
activities.
Section 5104--Issuing Authority and Reserves.
This section provides for issuing authority and
establishment of reserves. Subsection (a) raises the maximum
contingent liability for insurance from $9 billion in current
law to $15 billion, and authorizes an OPIC finance program
level of $5 billion through the period October 1, 1994 to
September 30, 1999. This section also extends OPIC's
operating authority for five years to September 30, 1999 from
September 30, 1994.
Subsection (b) directs OPIC to maintain appropriate
reserves against insurance liabilities similar to section
235(c) of current law. Subsection (c) outlines the payments
of funds to discharge liabilities and is similar to section
235(d) of current law. Subsection (d) states that funds will
be made available in authorizing and appropriations
legislation to replenish the insurance reserve and is similar
to section 235(f) of current law. Subsection (e) authorizes
OPIC to issue obligations for purchase by the Secretary of
the Treasury to discharge its liabilities when necessary and
is virtually identical to section 235(f) of current law.
Section 5105--Guidelines and Requirements for OPIC Support.
This section provides general guidelines and requirements
for OPIC project support. Subsection (a) directs the
Corporation to prepare a development impact profile for each
project it insures, reinsures, or finances. This is virtually
identical to section 239(h) of current law. Subsection (b)
provides that OPIC give preferential treatment to projects
involving U.S. small business. This is virtually identical to
section 240 and section 231(e) of current law, except that
the requirement that up to 50 percent of annual net income be
set aside for small business activity has been deleted as
adding little to the existing requirements for preferential
treatment for small businesses and cooperatives.
Subsection (c) prohibits the Corporation from insuring,
reinsuring or financing any project deemed to pose an
environmental, health or safety hazard, or to threaten a
national park or projected area. It also provides that OPIC's
projects shall be consistent with the objective of resource
sustainable development outlined in section 7210 of this
bill, that OPIC prepare an environmental impact statement or
assessment for each project, and that OPIC notify foreign
government officials of applicable World Bank and U.S.
standards and guidelines relating to any project. This
section is virtually identical to subsections 231(n),
237(m), and 239(g) of current law.
Subsection (d) provides that the Corporation shall take
country human rights into account in operation of its
program. This section is similar to section 239(i) of current
law.
Subsection (e) restricts OPIC activity to countries taking
steps to adopt laws protecting the rights of workers, and
requiring specific worker rights contract language. This is
virtually identical to section 231A of current law.
Subsection (f) prohibits OPIC from insuring, reinsuring, or
financing an investment that would cause an investor to
reduce his workforce in the United States or that would cause
a reduction in overall U.S. employment. This section is
similar to subsection 231(k) and (l) of current law. This
provision adds a new provision which restricts OPIC's
activities as it relates to export processing zones.
Subsection (g), prohibits OPIC from involvement in any
investment subject to performance requirements. This is
identical to section (m) of current law.
Subsection (h) prohibits the payment of any claims to, and
bars from OPIC eligibility for 5 years, any investor found
guilty under the Securities Exchange Act or the Foreign
Corrupt Practices Act in connection with an OPIC-supported
investment. This language is virtually identical to section
237(l) of current law.
Subsection (i) prohibits OPIC from making any payment for
losses incurred due to fraud or misrepresentation. This is
identical to section 237(g) of current law.
Subsection (j) mandates that OPIC hold an annual public
hearing. This is identical to section 312(A)(b) of current
law.
Subsection (k) clarifies that restrictions in this or any
other Act do not include assistance to the United States
private sector provided under this title.
chapter 2--trade and development agency
Section 5201--Purposes.
This section establishes the Trade and Development Agency
as an agency of the United States, under the foreign policy
guidance of the Secretary of State, to promote United States
private sector participation in developing and middle-income
countries.
Section 5202--Authority to Provide Assistance.
This section authorizes the Trade and Development Agency to
carry out the programs specified in this section. Funds used
for the purposes of this section may be made available
notwithstanding any other provision of law.
Section 5203--Availability of Funds.
This section states that funds shall be available to carry
out this chapter in amounts as authorized and appropriated.
chapter 3--role of related programs
Section 5301--Statement of Policy Regarding Role of P.L. 480 Title I
Programs.
This section contains a statement of policy regarding the
role of P.L. 480 title I programs.
Section 5302--Statement of Policy Regarding the Role of Export-Import
Bank.
This section contains a statement of policy regarding the
role of the Export-Import Bank of the United States
Title VI--Advancing Diplomacy
Section 6001--Statement of Policy.
This section contains a statement of policy stressing that
diplomacy is a cost-effective instrument of foreign policy
and is essential to the realization of each of the five
titles of this bill, and that advancing diplomacy in these
five areas will require funds that can be used flexibly,
national consensus in support of American foreign policy
goals, modern technology and infrastructure to support
foreign and civil service professionals and greater
harmonization of our foreign affairs institutions and
instruments.
Title VII--Special Authorities, Restrictions on Assistance, and Reports
chapter 1--special authorities
Section 7101--Authority to Transfer between Accounts.
This section, based on current section 610 of the Foreign
Assistance Act, provides authority to transfer funds between
accounts, subject to notification in advance of the
Committees on Foreign Affairs and Appropriations of the House
of Representatives, and the Committees on Foreign Relations
and Appropriations of the Senate. As under the current
section 610, there would be a cap of twenty percent on the
amount that could be transferred into any account under the
authority of this section and no account could be decreased
by more than 10 percent; the existing limitations on
transferring funds from development assistance are
retained. A departure from current law is that the
percentage limitations do not apply to transfers for
peacekeeping purposes or for building democracy programs
under title II of the bill.
Section 7102--Special Waiver Authority.
This section, based on current section 614 of the Foreign
Assistance Act, provides authority to take certain actions
without regard to certain provisions of law upon an
appropriate determination by the President. The exercise of
this authority is subject to a requirement that the President
consult with, and provide a written policy justification to,
the Committees on Foreign Affairs and Appropriations of the
House of Representatives, and the Committees on Foreign
Relations and Appropriations of the Senate.
Section 7103--Unanticipated Contingencies.
This section, based on current section 451 of the Foreign
Assistance Act, provides authority to use funds under the
bill in order to furnish, for any unanticipated contingency,
assistance authorized by any provision of the bill, in
accordance with the provisions applicable to furnishing such
assistance. Such assistance may be furnished notwithstanding
any other provision of law. This provision would increase the
annual cap on the use of this authority from $50 million
under current section 451 to $100 million.
Section 7104--Assistance for Law Enforcement Agencies.
This section contains the circumstances under which
assistance in support of law enforcement functions may be
provided.
Section 7105--Termination Expenses.
This section, based on current section 617 of the Foreign
Assistance Act, provides authority to conduct an orderly
wind-up of programs following the termination of assistance
to a country. The section clarifies existing wind-up
authorities as they pertain to the expenditure of previously
appropriated funds, and with respect to guarantees.
Section 7106--Exemption of Assistance through Nongovernmental
Organizations.
This section provides that restrictions on assistance to
countries shall not be construed to restrict assistance under
the bill in support of programs of nongovernmental
organizations.
Section 7107--Exemption of Training Activities from Prohibitions.
This section provides that restrictions on assistance shall
not be construed to prohibit assistance for training
activities under the bill for certain countries described
therein.
Section 7108--Nonapplicability to Defense Assistance of Certain
Neutrality Act Provisions.
This section provides that functions authorized under the
Foreign Assistance Act may be performed without regard to
such provisions as the President may specify of the
Neutrality Act of 1939.
Section 7109--Exemption from Prohibitions for Assistance to Address
Certain Special Needs.
This section exempts certain programs (e.g., child survival
activities, population, AIDS) from prohibitions on the
provision of assistance unless the prohibition is made
specifically applicable to such programs.
Section 7110--Authority to Conduct Reimbursable Programs.
This section, very similar to section 607 of the current
Foreign Assistance Act, authorizes any agency of the United
States to provide services, and articles on a reimbursable
basis to friendly countries, international organizations and
arrangements, and nongovernmental organizations.
Section 7111--Drawdown Authority.
This section, similar to section 506 of current law,
authorizes the President to draw down articles and services
from the Department of Defense in the case of unforeseen
emergencies, or for disaster or refugee purposes, or for
programs under chapter 4 of title III of the bill.
Section 7112--Interest Accruing to Nongovernmental Organizations.
This section authorizes nongovernmental organizations to
deposit grant funds, or local currencies which may accrue to
the organization under various programs, to retain interest
earned on those funds and currencies for use for the purposes
for which assistance to that organization was provided,
including for the establishment and support of an endowment.
Section 7113--Development Education.
This section authorizes the President to support
development education programs, and is similar to the
provisions of section 316 of the International Security and
Development Cooperation Act of 1980.
Section 7114--Strengthening the Capacity of Nongovernmental
Organizations, Including Research and Educational Institutions.
This section authorizes the President to support programs
of strengthening the capacity of nongovernmental
organizations, including research and educational
institutions. This section is similar to section 122(d) of
the current Foreign Assistance Act.
Section 7115--Violations of International Humanitarian Law.
This section authorizes the President to use certain funds
made available under title III of the bill, as well as the
drawdown authority contained in that title, to support the
activities of international tribunals to investigate or
prosecute persons responsible for violations of international
humanitarian law.
Section 7116--Laws Relating to Contracts and Government Expenditures.
This section provides the President with the authority to
waive certain provisions of law governing the making,
performance, amendment, or modification of contracts and the
expenditure of funds, except for provisions contained in
section 8551(a)(7). This provision is essentially the same as
section 633(a) of the Foreign Assistance Act.
Section 7117--Transportation Charges Incurred by the Red Cross and
Nongovernmental Organizations.
This section provides the authority to use funds to pay the
transportation costs, incurred by the Red Cross and other
nongovernmental organizations, of voluntary contributions
made to those organizations. The authority is similar to
section 123(b) of the Foreign Assistance Act.
chapter 2--restrictions on assistance
Section 7201--Ineligible Countries.
This section provides that assistance may generally not be
furnished to the government of a country that is a communist
country, a country the government of which engages in a
consistent pattern of gross violations of human rights, a
country that has taken certain actions with regard to the
expropriation of the property of United States persons, a
country whose duly-elected head of government is deposed by
military coup or decree, a country whose government the
President determines repeatedly provides support for acts of
international terrorism, certain major drug-producing or
major drug-transit countries, and a country in arrears on
certain debt owed to the United States. There are exceptions
to these restrictions for cases in which the President
determines that the furnishing of assistance is important to
the national interests of the United States, to alleviate
suffering resulting from a disaster, to directly benefit the
needy, for assistance for refugees and displaced persons, and
to promote human rights and democracy.
Section 7202--Impact of Foreign Assistance Programs on Jobs in the
United States.
This section is a restatement of current law regarding the
impact of foreign assistance programs on jobs in the United
States. While this section states that the paragraph on
workers rights does not preclude assistance for the informal
sector, micro- and small-enterprise, and small-holder
agriculture, there is no intent to condone such practices
even at those levels of economic activity. Rather, it is a
recognition that the nature of those small-scale activities,
and the administrative cost of ensuring compliance with such
a standard, may make implementation of any of these
activities impossible. If it becomes known, however, that a
project is supporting significant violations of workers
rights, assistance to that project would be terminated.
Section 7203--Family Planning Activities.
This section sets forth restrictions on the use of funds
made available to carry out this bill for certain family
planning activities.
Section 7204--Competition with United States Exports.
This section describes considerations that the President
should take into account in providing assistance under the
bill with respect to certain export-related activities.
Section 7205--Nuclear Nonproliferation.
This section is essentially a restatement of the current
law restrictions involving nuclear nonproliferation. This
section also includes the existing prohibition on assistance
and military sales and transfers made by the United States
Government to Pakistan.
Section 7206--Major Illicit Drug Producing and Drug Transit Countries.
This section sets forth criteria applicable in determining
whether a country is covered by the prohibition on assistance
under section 7201(a)(6), relating to major illicit drug
producing and drug transit countries. The section further
authorizes the President to withhold fifty percent of
assistance to any such country until a determination is made
under this section.
Section 7207--Assistance for Elections.
This section provides that economic assistance used to
enhance the independence and performance of electoral
processes may not be used for the purpose of influencing the
outcome of any election in any country. This provision is
similar to the requirement contained in current section
116(e) of the Foreign Assistance Act.
Section 7208--Assignment of Personnel.
This section, which is based on current section 503(a)(2)
of the Foreign Assistance Act and section 21(c)(1) of the
Arms Export Control Act, restricts the performance of duties
of a combatant nature. The provisions of current law have
been interpreted as not prohibiting the performance of such
duties by U.S. personnel during periods in which the United
States is itself involved in combat, but there are additional
situations in which the application of this restriction would
be in the national interest of the United States, and an
appropriate waiver provision has therefore been added.
Section 7209--Assistance Limited to Economic Programs.
This section states that title I funds may not be used for
military or paramilitary purposes. This section clarifies
current limitations by specifically excluding sustainable
development training, as well as other sustainable
development activities, under title I that may involve
military personnel, from the prohibition in this section.
Section 7210--Impact of Sustainable Development Assistance on
Environment and Natural Resources.
This section, based on the current section 117 of the
Foreign Assistance Act, requires certain environmental
reviews of sustainable development programs.
chapter 3--reports and notifications to congress
Section 7301--Congressional Presentation Documents.
This section contains requirements for submission of
congressional presentation documents for most programs
contained in the bill.
Section 7302--Human Rights Policy and Report.
This section sets forth the sense of the Congress regarding
respect for human rights and fundamental freedoms throughout
the world, and reflects the importance human rights and
related concerns should play in formulating and conducting
United States assistance and military sales programs.
Subsection (d) requires the submission of annual human rights
report not later than February 28 each year.
Section 7303--International Narcotics Control Report.
This section on annual narcotics control report to be
submitted to the Congress by March 1.
Section 7304--Annual Allocation Report.
This section, based on current section 653(a) of the
Foreign Assistance Act, requires an annual report not later
than 30 days after the enactment of any law appropriating
funds to carry out any provision of this bill.
Section 7305--Notification of Program Changes.
This section contains notification of program change
requirements for most programs in the bill. The section
modifies current law only with respect to sustainable
development programs.
Section 7306--Evaluation and Monitoring of Program Performance.
This section directs that a program performance,
monitoring, and evaluation capacity be established within the
Agency for International Development.
Title VIII--General Provisions
chapter 1--exercise and coordination of functions
Section 8101--Delegations by the President.
This section generally retains the language in section
621(a) of current law. It authorizes the President to carry
out provisions of this bill through any U.S. Government
agency or officer.
Section 8102--Role of the Secretary of State.
This section generally retains the language in section
622(c) of current law concerning the role of the Secretary of
State in supervising and directing assistance under this
bill.
Section 8103--The Secretary of Defense.
This section generally retains the language in section 623
of current law concerning the responsibility of the Secretary
of Defense with respect to assistance under the bill
administered by the Department of Defense.
Section 8104--United States Agency for International Development.
This section establishes the United States Agency for
International Development as an agency of the United States
under the foreign policy guidance and subject to the
supervision and direction of the Secretary of State.
Section 8105--The Director of the Arms Control and Disarmament Agency.
This section retains language in section 511 of current law
concerning the role of the Director of the Arms Control and
Disarmament Agency in decisions to provide assistance under
this bill administered through the Department of Defense.
Section 8106--Authority to Establish Offices Abroad.
This section essentially retains provisions of sections
631(a) of current law. It authorizes the President to
establish offices and staffs abroad to carry out the purposes
of this bill.
Section 8107--Presidential Findings and Determinations.
This section is based on current law (sections 654 (a) and
(b)) and procedures concerning findings and determinations
required in foreign assistance legislation which must be
reported to Congress. This provision does not affect on
presidential findings concerning covert operations which
remain subject to the reporting requirements of section 501
of the National Security Act of 1947.
chapter 2--administrative authorities
Subchapter A--General Authorities
Section 8201--Allocation of Funds and Reimbursement Among Agencies.
This section expands slightly the provisions of section 632
of current law. The President, or, with respect to funds
appropriated to any agency, the head of such agency (as the
case may be), is allowed to allocate or transfer to the U.S.
Government agency any of the funds made available to carry
out this or any other bill to procure commodities, services,
defense articles, or defense services. This section lays out
technical provisions concerning procurement from other
agencies, reimbursement to agencies, establishment of
accounts, and charges to appropriations.
Section 8202--General Authorities.
This section provides general authorities for carrying out
this bill. These authorities follow the lines of section 635
of current law. They include authority to furnish assistance
on a grant, loan, or guaranty basis, or as a contribution to
an international organization or arrangement. They also
include provisions relating to: the terms and conditions of
assistance; contracting; receipt of gifts; health and
accident insurance for foreign employees and participants;
U.S. admission of alien participants; credit authorities;
authority to transfer or merge funds made available under
this bill with former FMF accounts; guarantees; claims
related to guarantees; indirect costs of educational
institution; and multi-year commitments. Subsection (i)
authorizes the use of funds made available under this bill
for the subsidy cost of credit activities to carry out the
bill's purposes (including a loan program to finance the
purchase of defense articles and services) subject to the
provisions of the Federal Credit Reform Act of 1990. This
section deletes the provision contained in current law which
prohibited the use of funds to take equity positions in
organizations.
Section 8203--Authorized Administrative Uses of Funds.
This section generally follows section 636 of current law.
Authorities retained, and in some instances clarified,
include those relating to: compensation of personnel and for
support costs; procurement of administrative supplies and
services; travel; housing; purchase and maintenance of motor
vehicles; construction of facilities; education of
dependents; training of personnel; and other operating
authorities. Authority relating to compensation of personnel
and for support costs is likely to be used for programs under
chapters 2 and, with regard to international narcotics
programs, 4 of title III and chapter 1 of title IV of the
bill. Dollar limitations with respect to the construction of
support facilities and schools for dependents are not
retained.
Subchapter B--Department of Defense Administrative Authorities
Section 8211--Administrative Expenses.
This section authorizes as in current law the use of funds
allocated to the Department of Defense for the purpose of
providing assistance under this bill for administrative,
extraordinary and operating expenses incurred in furnishing
assistance administered through the Department of Defense,
expense reimbursement of certain military officers, and
maintenance and furnishing of U.S.-owned facilities for
training foreign military and related civilian personnel.
Section 8212--End Use and Retransfer Assurances.
This section contains conditions in current law (section
505) under which defense articles or defense services may be
made available under this bill requiring U.S. consent to
retransfer the articles or services or use them for purposes
other than for which furnished, and maintain the security of
such articles or services. Section (b) sets forth the
requirement that assistance be terminated to a country for
unauthorized transfer or use of such articles or services, or
for failing to maintain the security of such articles or
services. Subsection (c) sets forth an exception to the
requirement for U.S. consent in certain cases.
Section 8213--Approval of Third Country Transfers.
This section sets forth the current law standards (section
505) to be applied in approving a transfer of implements of
war and significant military equipment to another country.
Section 8214--Exchange Training.
This section continues current law authority (section 544)
for the attendance of foreign military personnel at
professional military education institutions in the U.S.
under certain terms and conditions regarding reciprocity.
chapter 3--special requirements and authorities relating to
appropriations and local currencies
Subchapter A--Provisions Relating to Appropriations
Section 8301--Requirement for Authorization of Appropriations.
This section sets forth the current law requirement for the
specific authorization of funds for foreign assistance, and
provides circumstances under which this limitation shall not
apply.
Section 8302--Authority for Extended Period of Availability of
Appropriations.
This section authorizes amounts appropriated to carry out
this bill to remain available until expended.
Section 8303--Reduction in Earmarks.
This section contains two authorities regarding earmarks of
funds. Subsection (a) authorizes the proportion reduction of
earmarks in the event that the amount appropriated for the
account being earmarked is less than the amount authorized
for that account. Subsection (b) states that earmarked funds
may be made available notwithstanding the earmark if
compliance with the earmark is made impossible by operation
of law or the President determines that the country or
organization for which the funds are earmarked has
significantly reduced its military, political, or economic
cooperation with the United States.
Section 8304--Obligation Upon Apportionment.
This section provides discretionary authority for funds
appropriated to carry out this bill to be obligated upon
their apportionment.
Subchapter B--Local Currencies
Section 8311--Use of Certain Foreign Currencies.
This section amends and updates section 612 of current law.
It authorizes the use of United States owned excess foreign
currencies to provide economic assistance.
Section 8312--Interest on U.S. Owned Foreign Currency Proceeds.
This section retains a similar provision in section 612 of
current law. It states that agreement switch respect to
assistance that will result in the accrual of foreign
currency proceeds should include provisions for the receipt
of such interest income on such proceeds.
chapter 4--procurement and disposition of articles
Section 8401--Use of Private Enterprise.
This section amends provisions in current law, in sections
601(b)(5) and (8), 602(c), and 621(a) of current law. It
directs the President to encourage and facilitate
participation by private enterprise in achieving the purposes
of the bill. It encourages the use of contracts, including
cost-plus incentive fee contracts, to provide the technical
skills, goods and professional services needed in such fields
as education, health, housing, and agriculture. It also
requests that the President ensure that U.S. suppliers,
especially small independent enterprises, are kept informed
as to expected purchases of defense articles and services by
the Department of Defense pursuant to this bill.
Section 8402--Procurement Standards and Procedures.
This section largely restates section 604 of current law,
regarding the requirement to procure commodities from the
United States. With regard to OPIC activities, the
requirements of this section insofar as they might affect
downstream procurement by OPIC borrowers are superseded by
section 3106 of this bill.
Section 8403--Shipping on United States Vessels.
This section exempts certain goods acquired with foreign
currencies from U.S. flag vessel cargo preference
requirements and is identical to section 603 of current law.
Also, this section allows the use of foreign assistance funds
to pay ocean freight differentials that may exist between
United States and foreign flag carriers on shipments that are
subject to cargo preference requirements, similar to the
authority contained in section 640C of current law.
Section 8404--Excess and Other Available Property.
This section sets forth policy with respect to the use of
excess and other available property (other than excess
property of the Department of Defense). It provides authority
for the acquisition of government-owned excess property and
use as assistance in the furtherance of the purposes of this
bill. Sections 607(c) and 608 of current law are rewritten
and expanded by this provision.
Section 8405--Grant Transfers of Excess Defense Articles.
This section modifies current authorities to transfer
excess defense articles (contained in sections 516, 517, 518
and 519) to countries for which receipt of such articles was
separately justified in the fiscal year in which the transfer
is authorized as may be necessary to carry out the purposes
of titles II or III of this bill. It provides new authority
for the Department of Defense to provide transportation under
limited circumstances.
Section 8406--Stockpiling of Defense Articles for Foreign Countries.
This section contains restrictions on the transfer of
defense articles contained in dual-use stockpiles.
Section 8407--Location of Stockpiles.
This section contains provisions that govern the location
of stockpiles.
Section 8408--Additions to War Reserve Stocks.
This section contains provisions regarding the ceilings on
the value of defense articles that can be added to dual-use
stockpiles
Section 8409--Retention and Use of Certain Items and Funds.
This section authorizes the retention, transfer, use, or
disposal of any commodities or defense articles procured for
a foreign country or international organization when changing
circumstances make it inadvisable to furnish such commodities
or defense articles. This section generally follows the
provisions of section 605 of current law.
chapter 5--personnel and administrative expenses
Subchapter A--General
Section 8501--Statutory Officers in the Agency for International
Development
This section generally follows section 624 (a) and (b) of
current law. It permits the President to appoint 12 statutory
officers in the Agency for International Development, with
the advice and consent of the Senate. The President may
designate titles and fix the order of succession among the
officers appointed.
Section 8502--Employment of Personnel.
This section rewrites and generally retains many of the
provisions of section 625 of current law. It authorizes the
hiring of personnel to carry out certain functions under the
bill. It sets forth compensation assistance functions,
performance functions outside the United States, and
reemployment rights.
Section 8503--Experts, Consultants, and Retired Officers.
This section authorizes the employment of individual
experts and consultants and organizations thereof. It covers
reimbursement for expenses and employment of certain persons
without compensation.
Section 8504--Detail of Personnel to Foreign Governments and
International Organizations.
This section authorizes the detail of personnel to foreign
governments and international organizations to assist in
carrying out the purposes of this bill. This section
consolidates provisions of sections 627, 628, 629, and 630 of
current law, including the status of personnel detailed,
retention of benefits, allowances, and terms of detail. The
current prohibition on acceptance of compensation or other
benefits from foreign governments, retained in the bill, does
not include payment of travel expenses for detailees.
Section 8505--Head of Offices Abroad.
This section retains section 631(b) of current law
authorizing the President to appoint heads of offices abroad,
including provision for compensation and allowances.
Section 8506--Chairman of OECD Development Assistance Committee.
This section retains section 631(c) of current law
authorizing the President to appoint the Chairman of the
Development assistance Committee of the Organization for
Economic Cooperation and Development and provides for the
compensation and allowances the person so appointed is to
receive.
Section 8507--Assignment of DOD Personnel to Civil Offices.
This section retains section 633(c) of current law
authorizing the President to detail Department of Defense
personnel to civil offices to carry out the purposes of this
bill.
Section 8508--Discrimination Against United States Personnel Providing
Assistance.
This section is based on sections 666 and 505(g) of current
law. It states that the President should not take into
account race, religion, national origin, or sex in assigning
officers or employees to carry out any assistance programs
funded by this bill in any foreign country, and that such
assignments should be made solely on the basis of ability and
relevant experience. This section affirms U.S. policy that
assistance should not be provided to any country which
prevents any U.S. person from participating in the furnishing
of assistance on the basis of race, religion, national
origin, or sex.
Section 8509--Availability of Funds for Operating Expenses Generally.
This section states that funds shall be available to carry
out this chapter in amounts as authorized and appropriated.
Section 8510--Availability of Funds for Operating Expenses of the
Inspector General.
This section states that funds shall be available to carry
out this chapter in amounts as authorized and appropriated.
Section 8511--Availability of Funds.
This section provides authority for the Agency for
International Development to obligate and expend funds in
advance of appropriations to maintain operations abroad for
up to three days.
Subchapter B--Overseas Management of Assistance and Sales Programs
Administered Through the Department of Defense
Section 8521--Authorized Functions.
This section authorizes the President to assign members of
the Armed Forces to a foreign country to perform certain
functions. It also provides that advisory and training
assistance conducted by members of the Armed Forces under
this chapter shall be kept to an absolute minimum.
Section 8522--Costs.
This section governs costs of overseas management and sales
programs under this chapter.
Section 8523--Role of Chief of Mission.
This section provides that members of the Armed Forces
assigned to a foreign country under this chapter shall serve
under the direction and supervision of the Chief of the
United States Diplomatic Mission to that country.
Subchapter C--Administrative Provisions for the Trade and Development
Agency
Section 8531--Director and Personnel.
This section states that the head of the Trade and
Development Agency is a Director to be appointed by the
President, by and with the advice and consent of the Senate.
The section contains further personnel authorities.
Section 8532--Audits.
This section provides for an independent annual financial
and compliance audit of the financial statements the Trade
and Development Agency.
Section 8533--Annual Report.
This section contains a requirement for an annual report to
be prepared by TDA.
Subchapter D--Administrative Provisions for the Overseas Private
Investment Corporation
Section 8541--Stock of the Corporation.
This section states that the Secretary of the Treasury
shall hold OPIC's capital stock. The language updates section
232 of current law by striking the reference to OPIC's start-
up capital and initial issuance of stock.
Section 8542--Organization and Management.
This section establishes a Board of Directors and outlines
the appointment of the President and Executive Vice President
and the hiring of staff. The provisions are similar to
section 233 of current law.
Section 8543--Income and Revenues.
This section outlines the uses of OPIC's income and
revenues and is similar to section 236 of current law. To
fulfill its self-sustaining mandate, the Corporation shall
pay administrative expenses from Corporation revenue and
income.
Section 8544--General Provisions Relating to Insurance and Financing
Program.
This section provides general provisions on program
operations. Subsection (a) prohibits OPIC from supporting
projects in any country unless OPIC has signed a bilateral
agreement with respect to OPIC activity. It is virtually
identical to section 237(a) of current law.
Subsection (b) directs OPIC to ensure that the interests of
the Corporation are adequately protected. This is virtually
identical to section 237(b) of current law.
Subsection (c) pledges the full faith and credit of the
United States for OPIC insurance and guarantees. This is
virtually identical to section 237(c) of current law.
Subsection (d) permits the charging of fees for OPIC
services. This is similar to section 237(d) of current law.
Subsection (e) limits OPIC insurance, reinsurance and
financing to 20 years and is similar to section 237(e) of
current law.
Subsection (f) outlines the amount of compensation OPIC may
pay on its insurance, reinsurance or guarantees. This section
is similar to section 237(f) of current law.
Subsection (g) limits the extent of OPIC insurance,
reinsurance or guarantees of investments in foreign banks or
financial institutions. This is virtually identical to
section 237(h) of current law.
Subsection (h) authorizes the Corporation to arbitrate
claims arising from its programs and is virtually identical
to section 237(i) of current law.
Subsection (i) states that each OPIC contract shall be
presumed to be in compliance with statue. This is virtually
identical to section 237(j) of current law.
Subsection (j) provides penalties for fraud. This is
identical to section 237(n) of current law.
Subsection (k) clarifies use of OPIC's authority to protect
the value of local currency received as salvage on insurance
claims in making direct loans or investments of local
currency in the local economy. This is similar to section
237(o) of current law.
Subsection (l) clarifies termination of contracts or
commitments where assistance is terminated.
Section 8545--General Provisions and Powers.
This section provides general Corporation operating
provisions and powers. Subsection (a) establishes the
Corporation in the District of Columbia. This is virtually
identical to section 239(a) of current law.
Subsection (b) provides for an annual independent audit of
OPIC and for audits by the Comptroller General when necessary
or by Congressional request. This section is similar to
section 239(c) of current law, except that it requires annual
audits instead of once every three years.
Subsection (c) delineates OPIC's corporate powers and is
similar to section 239(d) of current law.
Subsection (d) authorizes investigations by the Inspector
General and is similar to section 239(e) of current law.
Subsection (e) provides an exemption from state and local
taxation. It is virtually identical to section 239(j) of
current law.
Section 8546--Annual Report; Maintenance of Information.
This section requires submission of a report to Congress
and maintenance of certain information. Subsection (a)
directs the President to submit an annual report to Congress
and subsection (b) mandates that each annual report contain a
projection of the aggregate U.S. employment effects of all
OPIC projects. These sections are similar to sections 240A(a)
and (b) of current law except certain reporting requirements
are modified to report in the aggregate rather than per
project.
Subsection (c) requires OPIC to maintain information on its
projects and their employment and development effects. This
section is virtually identical to section 240A(d) of current
law.
Subsection (d), protects certain information from public
disclosure. This is virtually identical to section 240A(f) of
current law.
Section 8547--Definitions.
This section defines certain terms used in this title and
is similar to section 238 of current law.
Subchapter E--Definitions and Miscellaneous Provisions
Section 8551--Definitions.
This section provides definitions of terms used in this
bill.
Section 8552--Activities Under Certain Other Laws not affected.
This section provides that unless expressly provided to the
contrary, provisions of this bill and other provisions
applicable to foreign assistance shall not be construed to
prohibit activities authorized by or conduced under the Acts
and programs specified in this section. Under this section,
legislation that prohibits assistance under ``this or any
other Act'' (or comparable formulation) would apply to
activities authorized by or conducted under the statutes
and programs specified in section 8552 only if the
legislation also specifically identified each statute or
program as subject to the prohibition.
Title IX--Technical and Conforming Provisions
Section 9101--Effective Date.
This section establishes the effective date of the bill as
October 1, 1994.
Section 9102--Savings Provisions.
This section contains savings provisions to allow
continuity of operations once the new legislation is enacted
into law.
Section 9103--Miscellaneous Provisions.
This section contains various miscellaneous provisions
related to other provisions in the bill.
Section 9104--Conforming and Other Amendments.
This section makes conforming and other amendments to other
provisions of law.
Section 9105--Transition Rules for Military Assistance.
This section contains special transition rules applicable
to military assistance programs.
Section 9106--Repeal of Obsolete Provisions.
This section repeals various obsolete provisions of law.
Except where inconsistent with the provisions of this title,
the repeal by this section of any provision of law that
amended or repealed another provision of law does not affect
in any way that amendment or repeal.
____
The Secretary of State,
Washington, DC, February 2, 1994.
Hon. Al Gore,
President of the Senate.
Dear Mr. President: On behalf of the President, I hereby
transmit the proposed Peace, Prosperity and Democracy Act of
1994, which represents new permanent charter legislation for
international cooperation and assistance programs and
activities. The bill would replace the Foreign Assistance Act
of 1961, as amended, and would also amend or repeal other
relevant statutory provisions affecting international
assistance programs. Specific authorizations for funding
levels would be provided in separate annual or biennial
authorization acts.
The proposed legislation responds to the historic changes
in the world over the past several years, and the
opportunities and challenges those changes present for the
United States. The bill is premised on the view that our
overseas programs should serve both our vital domestic
interests and our commitment to a more democratic, prosperous
and secure international community. The end of the Cold War
enables us to focus on these ends, and the bill will give us
the means to work in partnership with nations that truly care
about democratic and economic development and the peace and
security of their societies, as well as the world, in a
manner consistent with the most fundamental interests of the
United States.
To this end, the bill sets forth a comprehensive
legislative framework that substantially reduces the number
of accounts, restructures them according to six major
thematic objectives, and strengthens authorities for United
States international cooperation and assistance programs. The
programs will therefore be more accountable for achieving
measurable results, and will reflect better to the Congress
and the American people how these objectives are served by
United States international cooperation.
The first five titles of the bill contain authorities to
achieve the following objectives: Title I, Sustainable
Development; Title II, Building Democracy; Title III,
Promoting Peace; Title IV, Providing Humanitarian Assistance;
and Title V, Promoting Growth through Trade and Investment.
Title VI (Advancing Diplomacy) addresses the crucial
relationship between diplomacy and the achievement of the
goals contained in titles I-V.
Title VII contains special authorities, restrictions and
reporting requirements concerning the provision of
assistance. Title VIII contains necessary administrative
authorities and Title IX sets forth savings provisions,
repeals of previously enacted laws, and amendments to conform
existing law to the provisions of this bill.
This bill is the result of a thorough assessment of the
statutory authorities and flexibility needed to implement a
new, effective post-Cold War foreign policy. It also reflects
views expressed in bipartisan consultations with the
Congress, and the contributions of many concerned outside
groups and non-governmental organizations. I urge prompt
enactment of this bill.
The Office of Management and Budget advises that there is
no objection to the presentation of this proposed legislation
to Congress and that its enactment would be in accord with
the program of the President.
Sincerely,
Warren Christopher.
______
By Mr. MITCHELL (for himself and Mr. Chafee):
S. 1857. A bill to authorize appropriations to assist in carrying out
the North American Wetlands Conservation Act for fiscal year 1995
through fiscal year 2000, and for other purposes; to the Committee on
Environment and Public Works.
north american wetlands conservation reauthorization act of 1994
Mr. MITCHELL. Mr. President, today I join my colleague from the
Environment and Public Works Committee, Senator Chafee, in introducing
legislation to extend and improve the North American Wetlands
Conservation Act before its spending authorization expires at the end
of 1994.
I introduced the North American Wetlands Conservation Act in 1989 to
protect, enhance, and restore North American wetland ecosystems and the
migratory birds and other fish and wildlife that depend on these
habitats. More than one-third of all rare and endangered species of
plants and animals are dependent on wetland ecosystems.
The destruction of wetlands in the United States, where many
migratory bird species breed, spells disaster for these species just as
surely as the destruction of forests in Central and tropical South
America, where they winter. From the mid-1950's to the mid-1970's, 9
million acres of wetlands were drained, filled, and cleared in the
lower 48 States. Less than half of the original 200 million acres
remain, and the destruction continues today at a rate of nearly 300,000
acres per year.
The North American Wetlands Conservation Act began a long-term
commitment between the United States, Canada, and Mexico to implement
the North American Waterfowl Management Plan to halt the decline of
many species of ducks, geese, and other migratory birds. The act
provides a mechanism for transfer of United States funds to Canada and
Mexico, so that critical habitat throughout North America can be
protected.
A key component of the act is to encourage public/private
partnerships for wetlands conservation projects in the United States,
Canada, and Mexico. We cannot effectively conserve any of our natural
resources without the participation of not only the national
Government, but also with the involvement of State, provincial,
territorial and local governments, and private individuals,
conservation organizations, and businesses.
These partnerships, with groups such as The Nature Conservancy and
Ducks Unlimited, have proved very fruitful in wetlands conservation.
From 1991 through the present, the North American Wetlands Conservation
Act has stimulated over 300 partnerships and more than $160 million
from non-Federal entities to protect and promote the conservation of
almost 7 million acres of wetlands. In Maine's Cobscook Bay, a Federal
contribution of $550,000 attracted over $1.3 million from the Maine
chapter of the Nature Conservancy and other non-Federal partners for
nearly 2,000 acres of wetland protection.
Nevertheless, North American duck populations are still below the 40-
year average. Much work remains to be done to reach our goal of
restoring waterfowl numbers to the levels that existed two decades ago.
As more and more people move to coastal areas like Maine, coastal
wetlands will be increasingly threatened. We are always learning about
other values of wetlands aside from habitat for waterfowl. Wetlands are
valuable because of the roles they play in flood control and water
recharge as well.
For that reason, today Senator Chafee and I are introducing
legislation which would keep the key elements of the North American
Wetlands Conservation Act, but increase the authorization for the act
from $15 to $20 million for 1995 and 1996, and up to $40 million in the
year 2000. I urge all of my colleagues to join me in supporting this
most effective and efficient program. Mr. President, I ask unanimous
consent that my statement, Senator Chafee's statement, and the full
text of the bill be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 1857
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That
section 7(c) of the North American Wetlands Conservation Act
(16 U.S.C. 4406(c)) is amended by striking ``not to exceed
$15,000,000 for each of fiscal years 1991, 1992, 1993, and
1994'' and inserting in lieu thereof ``not to exceed
$20,000,000 for fiscal years 1995 and 1996, $30,000,000 for
fiscal years 1997 and 1998, and $40,000,000 for fiscal years
1999 and 2000.''
Mr. CHAFEE. Mr. President, today, I am pleased to introduce, along
with my distinguished colleague Senator Mitchell, a bill to reauthorize
the North American Wetlands Conservation Act--a true wetlands success
story. This is a voluntary, nonregulatory wetlands protection program
that has the support of private landowners, hunter, bird watchers, and
resource agencies all across North America.
Under this act, public and private partners in the United States,
Canada, and Mexico have protected, restored, or enhanced hundreds of
thousands of wetlands that are home to migratory waterfowl, songbirds,
endangered species, and other fish and wildlife species. The success of
this effort to bring State and Federal Government agencies together
with a wide array of private conservation groups demonstrates what can
be achieved with cooperative, creative approaches to conservation.
The North American Wetlands Conservation Act, signed by President
Bush in 1989, was a response to two facts. First, waterfowl and other
migratory bird resources do not recognize political boundaries. Second,
populations of these birds have drastically declined in this century as
a result of extensive wetlands losses in many parts of North America.
The North American Act provides Federal grants to encourage
partnerships to protect and restore wetlands and to accomplish the
goals of the North American Waterfowl Management Plan--developed to
reverse the decline of waterfowl populations.
Any grant made under the North American Act must be matched at least
one-to-one by non-Federal moneys. Since the act was first funded in
1990, over 260 proposals have been approved and received about $91
million in Federal dollars. These moneys have been matched by more than
$187 million in partner funds--a two-to-one match. These projects have
managed to improve about 5 million acres of wetlands in the United
States, Canada, and Mexico--an astounding accomplishment over only 3
years.
None of this would be possible without the dedication and work of a
large number of private conservation groups across the United States,
Canada, and Mexico. Ducks Unlimited and the Nature Conservancy have
been particularly active, as well as many other local and national
conservation groups too numerous to mention. In addition, many of the
projects have received valuable cooperation from and the participation
of North American farmers.
The wetlands conservation projects funded by the act are diverse,
creative, and tailored to meet local circumstances. A $1.8 million
grant to restore wetlands and control erosion in the floodplain of the
Minnesota River--in combination with $5 million in State funds and
private donations--is financing one of the largest wetlands restoration
and wildlife conservation projects ever undertaken in Minnesota. It
will protect and restore 8,400 acres of wetlands. In California, rice
farmers are encouraged to keep rice fields flooded for migratory
waterfowl during the winter--providing thousands of acres of
overwintering habitat. A recently approved technical assistance project
will assist the Government of Mexico in developing Wetlands Resources
Geographic Information System, to inventory and provide information
about Mexico's relatively unknown wetlands.
The bill Senator Mitchell and I are introducing today would increase
the authorization for the North American Act for $15 million to $20
million for 1995 and 1996, and up to $40 million in the year 2000. In
my view, this is one of the most cost efficient investments in fish and
wildlife conservation we can make. Under this act, private and public
partners are practicing the cooperative ecosystem conservation others
are only talking about. We should continue this partnership for
wetlands and wildlife by reauthorizing the North American Wetlands
Conservation Act.
In recognition of the great success of the North American Act, the
bill does not make any changes beyond reauthorizing the act at this
point. There will be an opportunity to explore possible improvements to
the act when the bill is considered by the Committee on Environment and
Public Works. I urge all of my colleagues to support this program and
to cosponsor this bill.
______
By Mr. BAUCUS (for himself and Mr. Danforth):
S. 1858. A bill to amend the Trade Act of 1974 to make ``Super 301''
permanent; to the Committee on Finance.
SUPER 301 LEGISLATION
Mr. BAUCUS. Mr. President, a week-and-a-half ago, I was very proud to
see President Bill Clinton stand next to Japanese Prime Minister
Hosokawa and declare trade negotiations between United States and Japan
a failure.
Now, it might seem odd I would be proud that happened, but I say so
because it was an honest statement. That is, neither side was papering
over real differences in trade matters that have occurred and are now
occurring between our two countries.
By doing so, President Clinton ended more than 20 years of hypocrisy
with Japan that emphasized diplomacy rather than results. The
President, rather, demanded real, concrete progress on trade issues,
not just more rhetoric. Again, I commend him for that.
He showed the courage that is necessary to break a pattern that five
American Presidents before him have tolerated.
THE CLINTON POLICY
But ultimately the United States-Japan trade policy will be judged by
action. The Clinton administration has taken some initial steps towards
resolving the long simmering telecommunications trade dispute with
Japan. That is good. However, it has yet to act on the broader issue of
United States-Japan trade.
It is time for the United States to demonstrate the courage to back
its convictions with action.
SUPER 301
To that end, I am today introducing legislation to establish a
strengthened version of Super 301.
Super 301 is a provision of the 1988 Trade Act. It is aimed at
identifying and focusing our trade negotiating resources on the most
protectionist foreign markets. Under Super 301, the administration must
annually identify the most closed foreign markets and initiate unfair
trade actions under section 301 to open those markets.
During 1989 and 1990, Super 301 was tremendously successful in prying
open foreign markets for American products. In Japan, it was successful
in opening markets for supercomputers, processed forest products, and
satellites. It also convinced Brazil to end its system of import
licenses.
In addition, a number of nations, including Korea and Taiwan, dropped
trade barriers to American products merely to avoid being named under
Super 301.
Super 301 was the most successful market opening tool the United
States ever had for opening closed foreign markets--particularly Japan.
Unfortunately, Super 301 was only authorized for 2 years--1989 and
1990.
THE NEW SUPER 301
The legislation I am introducing today revives Super 301 and
strengthens it in two important ways.
First, it makes Super 301 a permanent feature of U.S. trade law.
Super 301 has a close relative known as Special 301. Special 301 is
quite similar to Super 301 except that it is focused on protection of
intellectual property rather than general trade barriers.
But Special 301 is different in one other important way; it is an
annual process without an expiration date. Because it is permanent,
Special 301 has been able to exert continuing influence on other
nations to end piracy of U.S. intellectual property.
Our experience with Special 301 demonstrates that market opening
trade statutes work best if they are a regular annual part of U.S.
trade policy. We should make Super 301 permanent.
Second, this legislation increases the time period between the
release of the National Trade Estimate and the announcement of Super
301 priorities. This makes the statute more flexible by allowing more
time to negotiate with countries that might be willing to open their
markets to avoid being named under Super 301.
In 1989, former U.S. Trade Representative Carla Hills characterized
the period just prior to Super 301 announcements as one of the most
productive in trade negotiating history. Extending this period should
allow our trade negotiators to maximize the gains from Super 301.
SUPER 301 AND JAPAN
Super 301 has always been aimed largely at Japan. It establishes a
meaningful framework under which the most important trade barriers in
Japan can be identified and enforceable negotiations can begin. And if
Japan fails to agree to eliminate its trade barriers, the United States
can retaliate against Japan exports to the United States.
Super 301 is such an invaluable tool in dealing with Japan that some
had anticipated that the administration would revive it by Executive
order. But the Clinton administration has not yet taken action.
Regardless of the administrations' decision on an Executive order,
Super 301 must be established by legislation to demonstrate that it is
a permanent element of U.S. trade policy.
On a related note, Senator Danforth and others have expressed
concerns that the Uruguay round GATT agreement may compromise United
States trade laws. Those concerns must be carefully examined. U.S.
trade laws, including Super 301, section 301, countervailing duty law,
and antidumping law, are critical.
Before we proceed to approve any international trade agreement, we
should ensure that our full arsenal of trade laws--including Super
301--are safely in place.
Super 301 is the core of a strategy for opening closed foreign
markets. The President endorsed this strategy during the campaign. It
is time for the administration to implement Super 301 by Executive
order. Separately, Congress should act to revive it for use against
Japan and other closed markets regardless of the administrations
actions.
______
By Mr. KERRY (for himself, Mr. Gregg and Mr. Bumpers):
S. 1859. A bill to terminate the Department of Energy's program to
promote the use of liquid metal reactors for the disposal of high-level
radioactive waste; to the Committee on Energy and Natural Resources.
Breeder Reactor Termination Act of 1994
Mr. KERRY. Mr. President, 2 weeks ago, the administration announced
that it plans to terminate the advanced liquid metal reactor. Secretary
of Energy Hazel O'Leary explained the decision to a Washington Post
reporter by saying ``It is an investment in technology for which there
is no marketplace.'' and ``These projects * * * are totally counter to
where we want to go in our nonproliferation'' efforts.
Mr. President, I want to applaud the administration's decision in the
strongest terms. The advanced liquid metal reactor [ALMR] is an
expensive pork-barrel project that poses serious environmental and
proliferation risks.
It was almost terminated several times last year. The House of
Representatives voted overwhelmingly to terminate the breeder program
in June of last year in a bipartisan 272-146 vote on an amendment to
the energy appropriations bill. However, parochial politics rallied and
the Kerry-Gregg-Bumpers amendment to terminate the project was narrowly
defeated when the Senate considered the bill. In the House-Senate
conference, the House language was dropped from the bill. The House
voted to terminate the program again on H.R. 3400, the rescission bill.
But the provision to terminate the ALMR was not included in the
rescission bill in the Senate.
My fear, Mr. President, is that parochial interests will bring the
ALMR to life once again.
Despite assurances from Secretary O'Leary that every attempt will be
made to find alternate employment for those who are employed on the
ALMR project, pressure to continue funding for the project is building.
And even if the administration resists the pressure to fund the ALMR,
the project may be revived during the appropriations process.
This is why Senators Gregg and Bumpers and I are introducing today
the Breeder Reactor Termination Act of 1994 which would terminate the
ALMR once and for all.
The ALMR is a successor to the Clinch River Breeder Reactor, which
Congress terminated in 1983 because of cost, environmental, and nuclear
proliferation concerns. While advances in technology have been made
during that decade, the disadvantages of the breeder remain essentially
unchanged. Breeders convert uranium into plutonium, the material used
to make nuclear weapons. By promoting a fuel cycle based on plutonium,
the ALMR inevitably increases the risks of nuclear proliferation.
Now, some have claimed that this technology is not a breeder. But,
Mr. President, the Argonne National Laboratories annual report for last
year says--and I quote--``Because the IFR can be operated as a breeder
reactor, it can produce more fuel than it consumes.'' In addition, the
facility at Argonne West is called the EBR2--standing for experimental
breeder reactor.
The ALMR does exactly what the President has said we should not do--
reprocess plutonium. For this reason, the New York Times last September
called for an end to funding for the ALMR which--and I quote--
``produces electricity by converting uranium that can't be used in
warheads into plutonium, which can.''
ALMR's are not necessary to preserve the nuclear option, as
proponents of the ALMR argue. To the contrary, the nuclear power
industry has indicated that its future depends upon the success of a
new generation of advanced light water reactors. All of the nuclear
reactors licensed in the United States today are light water reactors
which run on uranium--as opposed to plutonium--which are slow
reactors--so they cannot breed--and which do not reprocess. The DOE
currently has a program to develop advanced light water reactors and
this program is funded jointly with industry. In addition, a National
Academy of Science report gave light water reactors the highest ranking
for overall performance in its evaluation.
The capital costs of producing plutonium fuel are necessarily higher
than those of uranium fuel because of the extra costs of reprocessing.
As a result, the price of uranium ore would have to increase
fifteenfold before the ALMR would be competitive with light water
reactors. The only way in which this could happen is if light water
reactors first became so widely used that they depleted the supply of
uranium. The NAS estimates that even if this happened, the ALMR would
not be cost competitive with light water reactors until 2025 at the
earliest, and possibly not until the year 2075.
Even given that scenario, it is highly questionable that ALMR
technology will ever be competitive from an economic standpoint as a
source of electricity. Even if uranium prices did dramatically increase
to make breeders competitive with advance light water reactors, that
wouldn't guarantee that breeders would be cost competitive with other
sources of electricity--such as energy efficiency improvements, natural
gas, wind, or, someday, solar.
Recognizing the lack of economic justification and the absence of
significant commercial interest in this technology for power
generation, proponents of the ALMR now promote a waste management
mission for the technology called actinide recycling--fissioning of
radioactive wastes. Now, this is the technology that many of my
colleagues find so compelling. It sounds very attractive to develop a
technology that would make something useful out of something we now
think of as waste. However, there are already attractive technologies
to dispose of radioactive wastes. These include vitrification and
storage or running the waste through a light water reactor. A number of
studies have found that fissioning of radioactive wastes is neither a
safe nor a feasible means of waste disposition from an environmental
perspective. The Department of Energy published a report in July which
stated ``The spent fuel alternative, using light water reactors, was
the most practical and economical alternative evaluated.'' Even the
American Nuclear Energy Council has stated in congressional testimony
that ``we see no benefit in considering transuranic burning as a waste
solution for current fuel.'' Actinide recycling itself generates highly
radioactive fission products along with heavy toxic metals, in effect
substituting one daunting toxic waste disposal problem for another. It
is the only technology that reprocesses the plutonium--the other
methods burn but cannot breed.
Further, Mr. President, the economics of the program remain highly
questionable despite the proclaimed shift in emphasis. The National
Academy of Sciences and independent scientists at Lawrence Livermore
National Laboratory and elsewhere have questioned the economic
viability of using this technology for waste management purposes. The
NAS said last year that the ``potential to alleviate some of the waste
disposal problem for LWR fuel through actinide recycling * * * is not
considered justification for advancing the advanced LMR.'' Scientists
at Lawrence Livermore, in fact, have estimated that using the ALMR for
waste management could quadruple the cost of high-level waste disposal.
Another claim that proponents of the ALMR have made is that the ALMR
is necessary for the disposal of military plutonium. However, many
other safer and more cost-effective alternatives for plutonium disposal
exist including running waste through a light water reactor and then
disposing of it and mixing the plutonium with spent fuel wastes,
followed by vitrification and then disposal.
The prepublication copy of a 1994 NAS study asserts that military
plutonium disposition should not be a justification for the ALMR. An
Office of Technology Assessment study released in September found that
``* * * the concept of plutonium transformation using fast reactors
appears to have some limitations. To consume plutonium in a fast
reactor requires significant design changes from the original LMR that
was intended to produce plutonium. It could also be expensive: the
required reprocessing could multiply the total volume of radioactive
waste by 10, thereby driving up costs.''
ALMR's will not be able to dispose of military plutonium in a timely
fashion. It would take another 20 years for ALMR's to be commercially
available. Then, they would have to recycle military plutonium through
their reactor cores for 100 years to transmute the plutonium into
fission products. Meanwhile, the plutonium would have to be carefully
stored and safeguarded.
Mr. President, as a result of the proliferation and environmental
concerns the ALMR raises, I have had to conclude that continuing
research into its viability is far too expensive an indulgence for a
nation groaning under the burden of $4 trillion of debt.
I realize that cutting this program will entail the loss of jobs. And
that troubles me deeply. And I certainly understand why it troubles the
Senators from Illinois and Idaho. But Mr. President, according to the
DOE's own numbers, our proposal will only speed up job loss since all
other proposals would also terminate the project over the next 5 years.
Although I would rather not speed up the rate of job loss, I am
convinced that we do not have any time to waste in terminating the ALMR
before its costs escalate as the costs of big science projects so often
do. Originally, the Clinch River breeder was supposed to cost $700
million but by the time the project was terminated, cost estimates had
risen to $8 billion.
Based on the concerns associated with the ALMR, numerous taxpayer,
environmental, and nonproliferation groups, including the National
Taxpayers Union, Citizens Against Government Waste, the Safe Energy
Communication Council, the National Resources Defense Council, the
Nuclear Control Institute, U.S. Public Interest Research Group, Public
Citizen, and the Sierra Club oppose the program in its current form.
Taking into account technological, economic, and environmental
factors as well as potential energy contribution, the Department of
Energy's own Office of Policy, Planning, and Evaluation during the Bush
administration ranked the ALMR 21st on a list of 23 electricity
initiatives.
Mr. President, last fall I joined Senator Bryan in offering an
amendment to terminate the wool and mohair subsidy, which passed. The
wool and mohair subsidy was simply a waste of money. The ALMR is a
waste of money and dangerous. It is nuclear mohair. I urge my
colleagues to follow the House's good example and vote to terminate the
program as well.
Mr. President, I ask unanimous consent that the full text of the bill
and an article from the Washington Post appear in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 1859
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 ``Breeder Reactor Termination
Act of 1994''.
SEC. 2. CONGRESSIONAL FINDINGS.
The Congress finds that--
(1) the advanced reactor program of the Department of
Energy promotes the use of liquid metal reactors for the
disposal of high-level radioactive waste through a process
referred to as ``actinide recycle'' and for other purposes;
(2) independent scientific experts believe that liquid
metal reactors would greatly increase the cost of radioactive
waste disposal and would not provide significant
environmental benefits;
(3) liquid metal reactors are not necessary to preserve the
nuclear power option, which will instead depend upon the
success of advanced light water reactors;
(4) arms control experts believe that liquid metal reactors
raise grave nuclear proliferation concerns because of the
potential for production of plutonium through breeding and
reprocessing; and
(5) the need to reduce the Federal budget deficit demands
that budget priorities be established carefully in order to
eliminate unnecessary spending.
SEC. 3. TERMINATION OF ADVANCED LIQUID METAL REACTOR PROGRAM.
(a) Termination.--
(1) In General.--Notwithstanding the provisions of sections
2121 through 2126 of the Energy Policy Act of 1992 (106 Stat.
3081; 42 U.S.C. 13491 et seq.), the Secretary of Energy shall
take such actions as are necessary to terminate, as soon as
possible, the advanced liquid metal reactor program of the
Department of Energy, including the program's promotion of
the use of liquid metal reactors for the disposal of high-
level radioactive waste.
(2) Regulatory Support.--Termination under paragraph (1)
shall include termination of Department of Energy support for
regulatory applications to the Nuclear Regulatory Commission
for design certification for advanced liquid metal reactors
or related licensed facilities.
(b) Reassignment of Personnel.--In carrying out subsection
(a), the Secretary of Energy shall, to the extent
practicable, reassign the personnel of the Department who
would be displaced by termination of the advanced liquid
metal reactor program to other activities of the Department,
such as nuclear nonproliferation and environmental cleanup at
facilities of the Department of Energy.
(c) Use of Savings To Reduce Deficit.--It is the policy of
the Congress that the savings realized from the termination
of the advanced liquid metal reactor program should be used
to reduce the Federal budget deficit.
____
[From the Washington Post, Feb. 12, 1994]
Energy Department to Scrap Research on Plutonium
(By R. Jeffrey Smith)
The Energy Department, in a setback to the Japanese
government and the U.S. nuclear industry, this week announced
the cancellation of $112 million worth of research on the use
of plutonium in nuclear reactors.
Secretary Hazel R. O'Leary said her decision to kill a
``breeder reactor'' program and a plutonium-recycling study
was an effort to discourage plutonium use by the world's
nuclear industry and limit opportunities for illicit
diversion of the material for production of nuclear arms.
The Bush administration had supported the work as a hedge
against a shortage of uranium for nuclear fuel and as a favor
to the Japanese government. Last year, the Clinton
administration continued support for the research to help
find a way to dispose of plutonium and nuclear waste.
Japan had pledged to contribute $30 million to the U.S.
research in an effort to help develop a simpler way to
extract and recycle plutonium from spent reactor fuel. Japan
is building a chain of breeder reactors, which produce
plutonium at the same time they generate nuclear power. It
also is nearing completion of a reprocessing plant for
plutonium-laden fuel.
The U.S. government dropped plans to build a breeder
reactor in the late 1970s out of concern that the extra
plutonium, a key ingredient of nuclear arms, might somehow
fall into the wrong hands. But research continued, totaling
$8.74 billion to date.
O'Leary said in an interview that the number of nuclear
reactors around the globe will expand only slightly during
the next 20 years, leaving an ample supply of natural uranium
for conventional reactors. Additional uranium will become
available from thousands of retired nuclear warheads.
``It is an investment in technology for which there is no
marketplace,'' O'Leary said. She said she was also influenced
by a National Research Council report on plutonium disposal
last month that concluded advanced reactors ``are not
competitive for this [disposal] mission because of the cost
and delay of their development, licensing, and
construction.''
O'Leary said, ``These projects * * * are totally counter to
where we want to go in our nonproliferation'' efforts.
But she said she ``labored over this for a very long
time,'' partly because of protests from lawmakers in Illinois
and Idaho, where the bulk of the research funds are spent at
Argonne National Laboratory and the Idaho National
Engineering Laboratory.
Overall, spending on nuclear energy research and
development would decline by $95 million, or 25 percent, in
fiscal 1995 under the Energy Department's budget proposal.
Some of the plutonium research funds would be reallocated
for work by scientists in Illinois and Idaho on reactor
safety and nonproliferation.
Under O'Leary's proposed budget, the department would
substantially boost its spending for research on renewable
energy resources, natural gas production and increased energy
efficiency by $340 million, or 33 percent.
O'Leary's cancellation of the plutonium programs was
praised by a coalition of environmental groups known as the
Safe Energy Communication Council.
But her decision was criticized by Carl Goldstein of the
U.S. Council for Energy Awareness, a nuclear industry trade
group.
New reactors fueled by plutonium ``are scientifically valid
and eventually they may be commercially valid,'' he said,
adding that ``there is a lot of support for these programs''
on Capitol Hill.
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