[Congressional Record Volume 140, Number 89 (Tuesday, July 12, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 12, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                               AMENDMENTS

  Under clause 6 of rule XXIII, proposed amendments were submitted as 
follows:

                               H.R. 3937

           By Ms. CANTWELL:
     --Page 229, strike line 6 and all that follows through page 
     230, line 14, and insert the following:
       (c) Foreign Availability Determination for Certain Computer 
     Systems.--
       (1) Foreign availability determination.--(A) Not later than 
     30 days after the date of the enactment of this Act, the 
     Secretary shall initiate an assessment of the foreign 
     availability of all computer hardware, software, and 
     technology for information security (including encryption), 
     except that which is specifically designed or modified for 
     military use (including command, control, and intelligence 
     applications).
       (B) In conducting the foreign availability assessment under 
     subparagraph (A), the Secretary shall consult with 
     appropriate export advisory committees appointed under 
     section 104(f) and other interested departments and agencies.
       (C) The Secretary shall, not later than 120 days after the 
     date of the enactment of this Act, issue his or her 
     determination of foreign availability under subparagraph (A), 
     publish that determination in the Federal Register, and 
     transmit that determination to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Foreign Affairs of the House of Representatives.
       (2) Exports of generally available software.--If the 
     Secretary determines under paragraph (1) that foreign 
     availability of computer hardware, software, or technology 
     for information security (including encryption) exists in 
     fact, the Secretary may--
       (A) remove or modify (in light of such foreign 
     availability) any export control in effect on some or all of 
     the items for which there is such foreign availability; or
       (B) for a period of not more than 180 days, seek the 
     agreement of the appropriate countries to eliminate in fact 
     the source of the foreign availability, except that if such 
     efforts fail to achieve such agreement, then the Secretary 
     shall remove or modify any export control in effect on some 
     or all of the items with respect to which there is such 
     foreign availability so as to eliminate any competitive 
     disadvantage resulting from such foreign availability.
       (3) Effect of other provisions.--The provisions of this 
     subsection apply notwithstanding any provision of section 
     105(i).
     --Page 229, strike line 6 and all that follows through page 
     230, line 14, and insert the following:
       (c) Foreign Availability Determination for Certain Computer 
     Systems.--
       (1) Foreign availability determination.--Not later than 30 
     days after the date of the enactment of this Act, the 
     Secretary shall initiate an assessment of the foreign 
     availability of all computer hardware, software, and 
     technology for information security (including encryption), 
     whether or not subject to control under this title, except 
     that which is specifically designed or modified for military 
     use (including command, control, and intelligence 
     applications). Such assessment shall be done in accordance 
     with section 105(i).
       (2) Issuance of determination.--The Secretary shall, not 
     later than 120 days after the date of the enactment of this 
     Act, issue his or her determination of foreign availability 
     under paragraph (1), publish that determination in the 
     Federal Register, and transmit that determination to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Foreign Affairs of the House of 
     Representatives.

     --Page 229, strike line 6 and all that follows through page 
     230, line 14, and insert the following:
       (c) Computers and Related Equipment.--
       (1) General rule.--Subject to paragraphs (2) and (3), the 
     Secretary shall have exclusive authority to control exports 
     of all computer hardware, software, and technology for 
     information security (including encryption), except that 
     which is specifically designed or modified for military use, 
     including command, control, and intelligence applications.
       (2) Items not requiring licenses.--No validated license may 
     be required, except pursuant to the Trading With The Enemy 
     Act or the International Emergency Economic Powers Act (but 
     only to the extent that the authority of such Act is not 
     exercised to extend controls imposed under this title), for 
     the export of--
       (A) any software, including software with encryption 
     capabilities, that is--
       (i) generally available, as is, and is designed for 
     installation by the purchaser; or
       (ii) in the public domain or publicly available because it 
     is generally accessible to the interested public in any form; 
     or
       (B) any computing device solely because it incorporates or 
     employs in any form software (including software with 
     encryption capabilities) exempted from any requirement for a 
     validated license under subparagraph (A).
       (3) Software with encryption capabilities.--The Secretary 
     shall authorize the export of software with encryption 
     capabilities for civil end uses (determined on the basis of 
     the criteria described in section 105(c)(2)) in any country 
     to which exports of software of similar capability are 
     permitted for use by financial institutions not controlled in 
     fact by United States persons, unless there is substantial 
     evidence that such software will be--
       (A) diverted to a military end use or an end use supporting 
     international terrorism;
       (B) modified for an end use described in subparagraph (A); 
     or
       (C) reexported without authorization by the United States 
     that is required.
       (4) Definitions.--As used in this subsection--
       (A) the term ``generally available'' means, in the case of 
     software (including software with encryption capabilities), 
     software that is offered for sale, license, or transfer to 
     any person without restriction through any commercial means, 
     including, but not limited to, over-the-counter retail sales, 
     mail order transactions, phone order transactions, electronic 
     distribution, or sale on approval;
       (B) the term ``as is'' means, in the case of software 
     (including software with encryption capabilities), a software 
     program that is not designed, developed, or tailored by the 
     software company for specific purchasers, except that such 
     purchasers may supply certain installation parameters needed 
     by the software program to function properly with the 
     purchaser's computer system and may customize the software 
     program by choosing among options contained in the software 
     program;
       (C) the term ``is designed for installation by the 
     purchaser'' means, in the case of software (including 
     software with encryption capabilities) that--
       (i) the software company intends for the purchaser 
     (including any licensee or transferee), who may not be the 
     actual user of the software program, to install the software 
     program on a computing device and has supplied the necessary 
     instructions to do so, except that the company may also 
     provide telephone help line services for software 
     installation, electronic transmission, or basic operations; 
     and
       (ii) the software program is designed for installation by 
     the purchaser without further substantial support by the 
     supplier;
       (D) the term ``computing device'' means a device which 
     incorporates one or more microprocessor-based central 
     processing units that can accept, store, process or provide 
     output of data; and
       (E) the term ``computer hardware'', when used in 
     conjunction with information security, includes, but is not 
     limited to, computer systems, equipment, application-specific 
     assemblies, modules, and integrated circuits.
           By Mr. DORNAN:
     --Add the following at the end:

               TITLE III--COMMERCIAL COOPERATION PROJECTS

     SEC. 301. STATEMENT OF PRINCIPLES IN COMMERCIAL COOPERATION 
                   PROJECTS.

       (a) Purpose.--It is the purpose of this title to create 
     principles governing the conduct of commercial cooperation 
     projects of United States nationals in the Socialist Republic 
     of Vietnam.
       (b) Principles.--It is the sense of the Congress that any 
     United States national conducting a commercial cooperation 
     project in the Socialist Republic of Vietnam should adhere to 
     the following principles:
       (1) Seek to ensure that political or religious views, sex, 
     ethnic or national background, involvement in political 
     activities or nonviolent demonstrations, or association with 
     suspected or known dissidents will not prohibit hiring, lead 
     to harassment, demotion, or dismissal, or in any way affect 
     the status or terms of employment in the commercial 
     cooperation project. The United States national should not 
     discriminate in terms or conditions of employment in the 
     commercial cooperation project against former members of the 
     armed forces of the Republic of Vietnam (South Vietnam), 
     former government officials of the Republic of Vietnam, 
     former employees of the United States Government in the 
     Republic of Vietnam, former employees of United States 
     Government officials in the Republic of Vietnam, former 
     employees of United States enterprises in the Republic of 
     Vietnam, and repatriated asylum-seekers (so-called ``boat 
     people'').
       (2) Ensure that methods of production used in the 
     commercial cooperation project do not pose an unnecessary 
     physical danger to workers and neighboring populations and 
     property and that the commercial cooperation project does not 
     unnecessarily risk harm to the surrounding environment.
       (3) Strive to use business enterprises that are not 
     controlled by the Socialist Republic of Vietnam or its 
     authorized agents and departments as potential partners in 
     the commercial cooperation project.
       (4) Prohibit any military presence on the premises of the 
     commercial cooperation project.
       (5) Undertake to promote freedom of association and 
     assembly among the employees of the United States national, 
     including the right of employees to form collective 
     bargaining units. The United States national should protest 
     any infringement by the Government of the Socialist Republic 
     of Vietnam of these freedoms to the appropriate authorities 
     of that government and to the International Labor 
     Organization.
       (6) Prohibit any compulsory political indoctrination 
     programs from taking place on the premises of the operations 
     of the commercial cooperation project.
       (7) Promote freedom of expression, including the freedom to 
     seek, receive, and impart information and ideas of all kinds, 
     regardless of frontiers, either orally, in writing or in 
     print, in the form of art, or through any media. To this end, 
     the United States national should raise with appropriate 
     authorities of the Government of the Socialist Republic of 
     Vietnam concerns about restrictions on importation of foreign 
     publications.
       (8) Undertake to promote a full accounting of all Americans 
     missing in action from the Vietnam conflict.
       (c) Promotion of Principles by Other Nations.--The 
     Secretary of State shall forward a copy of the principles 
     described in subsection (b) to the member nations of the 
     Organization for Economic Cooperation and Development and 
     encourage them to promote principles similar to these 
     principles.

     SEC. 302. REGISTRATION REQUIREMENT.

       (a) In General.--Each United States national conducting a 
     commercial cooperation project in the Socialist Republic of 
     Vietnam shall register with the Secretary of State and 
     indicate whether the United States national agrees to 
     implement the principles described in section 301(b). No fee 
     shall be required for registration under this subsection.
       (b) Effective Date.--The registration requirement of 
     subsection (a) shall take effect 6 months after the date of 
     the enactment of this Act.

     SEC. 303. REPORTING REQUIREMENTS.

       (a) Report.--Each United States national conducting a 
     commercial cooperation project in the Socialist Republic of 
     Vietnam shall report to the Department of State describing 
     the United States national's adherence to the principles 
     described in section 301(b). Such national shall submit a 
     completed reporting form furnished by the Department of 
     State. The first report shall be submitted not later than 1 
     year after the date on which the national registers under 
     section 302 and not later than the end of each 1-year period 
     occurring thereafter.
       (b) Review of Report.--The Secretary of State shall review 
     each report submitted under subsection (a) and determine 
     whether the United States national submitting the report is 
     adhering to the principles described in section 301(b). The 
     Secretary may request additional information from the United 
     States national and other sources to verify the information 
     submitted.
       (c) Annual Report.--The Secretary of State shall submit a 
     report to the Congress and to the Secretariat of the 
     Organization for Economic Cooperation and Development, 
     describing the level of adherence to the principles described 
     in section 301(b) by United States nationals subject to the 
     reporting requirement of subsection (a). This report shall be 
     submitted not later than 2 years after the date of the 
     enactment of this Act and not later than the end of each 1-
     year period occurring thereafter.

     SEC. 304. EXPORT MARKETING SUPPORT.

       (a) Support.--Departments and agencies of the United States 
     may only intercede with a foreign government or foreign 
     national regarding export marketing activity in the Socialist 
     Republic of Vietnam on behalf of a United States national 
     subject to the reporting requirements of section 303(a) if 
     that United States national adheres to the principles.
       (b) Type of Contact.--The term ``intercede with a foreign 
     government or foreign national'' includes any contact by an 
     officer or employee of the United States with officials of 
     any foreign government or foreign national involving or 
     contemplating any effort to assist in selling a good, 
     service, or technology in the Socialist Republic of Vietnam. 
     Such term does not include multilateral or bilateral 
     government-to-government trade negotiations intended to 
     resolve trade issues which may affect United States nationals 
     who do not adhere to the principles.
       (c) Effective Date.--Subsection (a) shall take effect 2 
     years after the date of the enactment of this Act.

     SEC. 305. DEFINITIONS.

       For purposes of this title--
       (1) the terms ``adhere to the principles'', ``adhering to 
     the principles'' and ``adherence to the principles'' mean--
       (A) agreeing to implement the principles described in 
     section 301(b);
       (B) implementing those principles by taking good faith 
     measures with respect to each such principle; and
       (C) reporting accurately to the Department of State on the 
     measures taken to implement those principles;
       (2) the term ``commercial cooperation project'' refers to a 
     for-profit activity the business operations of which employ 
     more than 25 individuals or have assets greater than $25,000; 
     and
       (3) the term ``United States national'' means--
       (A) a citizen or national of the United States or a 
     permanent resident of the United States; and
       (B) a corporation, partnership, and other business 
     association organized under the laws of the United States, 
     any State or territory thereof, the District of Columbia, the 
     Commonwealth of Puerto Rico, or the Commonwealth of the 
     Northern Mariana Islands.
           By Ms. ESHOO:
     --In section 114, add the following at the end:
       (s) Treatment of Semiconductors.--Any semiconductor device 
     shall not be subject to any export controls under the title 
     that are more restrictive or burdensome than any export 
     control that is imposed on computers systems or 
     telecommunications systems.
           By Mr. RICHARDSON:
     --Page 237, add the following after line 25:
       (j) Standard for Controls on Computers.--
       (1) Negotiations with cocom members.--The Secretary of 
     State, in consultation with the Secretary and other 
     appropriate agencies, shall conduct negotiations with 
     representatives of the members of COCOM in order to reach 
     agreement that export controls shall not be imposed on a 
     digital computer, or any of its component parts or 
     subsystems, on any performance measuring basis other than the 
     processing speed of the digital computer as measured by its 
     composite theoretical performance.
       (2) Implementation of standard.--In the event that the 
     agreement described in paragraph (1) is not reached with the 
     representatives of the members of COCOM within the 12-month 
     period beginning on the date of the enactment of this Act, 
     then no license may be required under this title or any other 
     provision of law for the export of a digital computer, or any 
     of its component parts or subsystems, on any performance 
     measuring basis other than the processing speed of the 
     digital computer as measured by its composite theoretical 
     performance, unless the President--
       (A) determines that using the composite theoretical 
     performance of a digital computer as the sole measurement of 
     performance for purposes of export controls would create a 
     significant risk to the national security interests of the 
     United States; and
       (B) reports that determination in writing to the Congress.
       (3) Exceptions.--The provisions of this subsection shall 
     not apply to--
       (A) exports to any country the government of which the 
     Secretary of State determines under section 106(i) has 
     repeatedly provided support for acts of international 
     terrorism;
       (B) exports to any country against which the United States 
     has imposed an embargo described in section 106(f)(1); or
       (C) exports of any commodity or technology which is 
     controlled under conditions of extreme vigilance, pursuant to 
     the agreement of the members of COCOM.
       (4) Definitions.--For the purposes of this subsection, the 
     terms ``digital computer'' and ``composite theoretical 
     performance'' have the meanings given those terms in 
     supplement No. 3 to section 799.1 of title 15, Code of 
     Federal Regulations, as in effect on June 1, 1994.

                               H.R. 4299

           By Mr. CONYERS:
     --In section 601, amend subsections (a) and (b) to read as 
     follows:
       (a) DIA.--
       (1) Purposes.--The purposes of this subsection are to--
       (A) create an objective and effective office, appropriately 
     accountable to the Congress, to initiate and conduct 
     independently inspections, investigations, and audits 
     relating to programs and operations of the Defense 
     Intelligence Agency;
       (B) provide leadership and recommend policies designed to 
     promote economy, efficiency, and effectiveness in the 
     administration of such programs and operations, and detect 
     fraud and abuse in such programs and operations;
       (C) provide a means for keeping the Director of the Defense 
     Intelligence Agency fully and currently informed about 
     problems and deficiencies relating to the administration of 
     such programs and operations, and the necessity for and the 
     progress of corrective actions; and
       (D) in the manner prescribed by the amendments made by this 
     subsection, ensure that the Senate Select Committee on 
     Intelligence and the House Permanent Select Committee on 
     Intelligence are kept similarly informed of significant 
     problems and deficiencies as well as the necessity for and 
     the progress of corrective actions.
       (2) Establishment of office of inspector general.--The 
     first section 8G of the Inspector General Act of 1978 (5 
     U.S.C. App.) is amended--
       (A) in subsection (a)(2) by inserting after ``the United 
     States International Trade Commission,'' the following: ``the 
     Defense Intelligence Agency,''; and
       (B) by adding at the end the following:
       ``(i)(1) The Inspector General of the Defense Intelligence 
     Agency shall be appointed by the Director of the Defense 
     Intelligence Agency (in this subsection referred to as the 
     `Director') without regard to political affiliation and on 
     the basis of integrity, compliance with the security 
     standards of the Defense Intelligence Agency, and prior 
     experience in the field of foreign intelligence and in a 
     Federal office of Inspector General.
       ``(2)(A) Notwithstanding the second sentence of section 
     8G(d), the Director may prohibit the Inspector General of the 
     Defense Intelligence Agency from initiating, carrying out, or 
     completing any audit, inspection, or investigation if the 
     Director determines that such prohibition is necessary to 
     protect vital national security interests of the United 
     States.
       ``(B) If the Director exercises any power under 
     subparagraph (A), the Director shall submit an appropriately 
     classified statement of the reasons for the exercise of such 
     power within 7 days to the intelligence committees. The 
     Director shall advise the Inspector General at the time such 
     report is submitted, and, to the extent consistent with the 
     protection of intelligence sources and methods, provide the 
     Inspector General with a copy of any such report. In such 
     cases, the Inspector General may submit such comments to the 
     intelligence committees that the Director considers 
     appropriate.
       ``(3) The Inspector General of the Defense Intelligence 
     Agency shall take due regard for the protection of 
     intelligence sources and methods in the preparation of all 
     reports issued by the Office of Inspector General of the 
     Defense Intelligence Agency, and, to the extent 
     consistent with the purpose and objective of such reports, 
     take such measures as may be appropriate to minimize the 
     disclosure of intelligence sources and methods described 
     in such reports.
       ``(4)(A) The Inspector General of the Defense Intelligence 
     Agency shall, not later than January 31 and July 31 of each 
     year, prepare and submit to the Director a classified 
     semiannual report summarizing the activities of the Office of 
     Inspector General of the Defense Intelligence Agency during 
     the immediately preceding 6-month period ending December 31 
     (of the preceding year) and June 30, respectively. Within 30 
     days after receipt of such reports, the Director shall 
     transmit such reports to the intelligence committees with any 
     comments the Director may deem appropriate. Such reports 
     shall, at a minimum, include a list of the title or subject 
     of each inspection, investigation, or audit conducted during 
     the reporting period and--
       ``(i) a description of significant problems, abuses, and 
     deficiencies relating to the administration of programs and 
     operations of the Defense Intelligence Agency identified by 
     the Office during the reporting period;
       ``(ii) a description of the recommendations for corrective 
     action made by the Office during the reporting period with 
     respect to significant problems, abuses, or deficiencies 
     identified in clause (i);
       ``(iii) a statement of whether corrective action has been 
     completed on each significant recommendation described in 
     previous semiannual reports, and, in a case where corrective 
     action has been completed, a description of such corrective 
     action;
       ``(iv) a certification that the Inspector General has had 
     full and direct access to all information relevant to the 
     performance of the functions of the Inspector General;
       ``(v) a description of all cases occurring during the 
     reporting period where the Inspector General could not obtain 
     documentary evidence relevant to any inspection, audit, or 
     investigation due to the lack of authority to subpoena such 
     information; and
       ``(vi) such recommendations as the Inspector General may 
     wish to make concerning legislation to promote economy and 
     efficiency in the administration of programs and operations 
     undertaken by the Defense Intelligence Agency, and to detect 
     and eliminate fraud and abuse in such programs and 
     operations.
       ``(B) The Inspector General of the Defense Intelligence 
     Agency shall report immediately to the Director whenever the 
     Inspector General becomes aware of particularly serious or 
     flagrant problems, abuses, or deficiencies relating to the 
     administration of programs or operations. The Director shall 
     transmit such report to the intelligence committees within 7 
     calendar days, together with any comments the Director 
     considers appropriate.
       ``(C) In the event that--
       ``(i) the Inspector General of the Defense Intelligence 
     Agency is unable to resolve any differences with the Director 
     affecting the execution of the Inspector General's duties or 
     responsibilities; or
       ``(ii) the Inspector General, after exhausting all possible 
     alternatives, is unable to obtain significant documentary 
     information in the course of an investigation, inspection, or 
     audit,

     the Inspector General shall immediately report such matter to 
     the intelligence committees.
       ``(D) Section 5 shall not apply to the Inspector General 
     and the Office of Inspector General of the Defense 
     Intelligence Agency.
       ``(5) Subject to applicable law and the policies of the 
     Director, the Inspector General of the Defense Intelligence 
     Agency shall select, appoint, and employ such officers and 
     employees as may be necessary to carry out the functions of 
     the Inspector General. In making such selections, the 
     Inspector General shall ensure that such officers and 
     employees have the requisite training and experience to 
     enable the Inspector General to carry out the duties of the 
     Inspector General effectively. In this regard, the Inspector 
     General shall create within the organization of the Inspector 
     General a career cadre of sufficient size to provide 
     appropriate continuity and objectivity needed for the 
     effective performance of the duties of the Inspector General.
       ``(6) Beginning with fiscal year 1996, there shall be 
     included in the National Foreign Intelligence Program budget 
     a separate account for the Office of Inspector General of the 
     Defense Intelligence Agency.
       ``(7) In this subsection, the term `intelligence 
     committees' means the Permanent Select Committee on 
     Intelligence of the House of Representatives and the Select 
     Committee on Intelligence of the Senate.''.
       (3) Implementation.--The Director of the Defense 
     Intelligence Agency shall, by not later than 60 days after 
     the date of the enactment of this Act and in accordance with 
     the amendments made by this subsection--
       (A) establish the Office of Inspector General of the 
     Defense Intelligence Agency;
       (B) appoint the Inspector General of the Defense 
     Intelligence Agency; and
       (C) transfer to that Office the office of the Defense 
     Intelligence Agency on the day before the date of the 
     enactment of this Act known as the ``Office of Inspector 
     General''.
       (4) Transfer of resources of existing office.--The 
     personnel, assets, liabilities, contracts, property, records, 
     and unexpended balances of appropriations, authorizations, 
     allocations, and other funds employed, held, used, arising 
     from, or available to the office in the Defense Intelligence 
     Agency on the day before the date of the enactment of this 
     Act known as ``Office of Inspector General'' are hereby 
     transferred to the Office of Inspector General of the Defense 
     Intelligence Agency established under the amendments made by 
     this subsection.
       (5) Termination of existing office.--The office in the 
     Defense Intelligence Agency on the day before the date of the 
     enactment of this Act known as ``Office of Inspector 
     General'' is terminated effective on the date of the 
     establishment of the Office of Inspector General of the 
     Defense Intelligence Agency pursuant to the amendments made 
     by this subsection.
       (6) Conforming amendment.--The first section 8G of the 
     Inspector General Act of 1978 (5 U.S.C. App.) is amended in 
     subsection (c) by striking ``subsection (f)'' and inserting 
     ``subsections (f) and (i)''.
       (7) Reports to intelligence committees.--
       (A) Reporting requirement.--Subchapter I of chapter 21 of 
     title 10, United States Code, is amended by adding at the end 
     the following:

     ``Sec. 427. Reports on activities of the Office of Inspector 
       General of the Defense Intelligence Agency

       ``(a) Reporting Requirement.--The Director of the Defense 
     Intelligence Agency shall submit to the intelligence 
     committees any report or findings and recommendations of an 
     inspection, investigation, or audit conducted by the Office 
     of Inspector General of the Defense Intelligence Agency which 
     has been requested by the Chairman or Ranking Minority Member 
     of either of the intelligence committees.
       ``(b) Intelligence Committees Defined.--In this section, 
     the term `intelligence committees' means the Permanent Select 
     Committee on Intelligence of the House of Representatives and 
     the Select Committee on Intelligence of the Senate.''.
       (B) Clerical amendment.--The analysis at the beginning of 
     subchapter I of chapter 23 of title 10, United States Code, 
     is amended by adding at the end the following:

``427. Reports on activities of the Office of Inspector General of the 
              Defense Intelligence Agency.''.

       (b) NSA.--
       (1) Purposes.--The purposes of this subsection are to--
       (A) create an objective and effective office, appropriately 
     accountable to Congress, to initiate and conduct 
     independently inspections, investigations, and audits 
     relating to programs and operations of the National Security 
     Agency;
       (B) provide leadership and recommend policies designed to 
     promote economy, efficiency, and effectiveness in the 
     administration of such programs and operations, and detect 
     fraud and abuse in such programs and operations;
       (C) provide a means for keeping the Director of the 
     National Security Agency fully and currently informed about 
     problems and deficiencies relating to the administration of 
     such programs and operations, and the necessity for and the 
     progress of corrective actions; and
       (D) in the manner prescribed by the amendments made by this 
     subsection, ensure that the Senate Select Committee on 
     Intelligence and the House Permanent Select Committee on 
     Intelligence are kept similarly informed of significant 
     problems and deficiencies as well as the necessity for and 
     the progress of corrective actions.
       (2) Establishment of office of inspector general.--The 
     first section 8G of that Act is amended--
       (A) in subsection (a)(2), as amended by subsection (a)(2) 
     of this section, by inserting after ``the Defense 
     Intelligence Agency,'' the following: ``the National Security 
     Agency,''; and
       (B) by adding after subsection (i), as added by subsection 
     (a)(2) of this section, the following:
       ``(j)(1) The Inspector General of the National Security 
     Agency shall be appointed by the Director of the National 
     Security Agency (in this subsection referred to as the 
     `Director') without regard to political affiliation and on 
     the basis of integrity, compliance with the security 
     standards of the National Security Agency, and prior 
     experience in the field of foreign intelligence and in a 
     Federal office of Inspector General.
       ``(2)(A) Notwithstanding the second sentence of section 
     8G(d), the Director may prohibit the Inspector General of the 
     National Security Agency from initiating, carrying out, or 
     completing any audit, inspection, or investigation if the 
     Director determines that such prohibition is necessary to 
     protect vital national security interests of the United 
     States.
       ``(B) If the Director exercises any power under 
     subparagraph (A), the Director shall submit an appropriately 
     classified statement of the reasons for the exercise of such 
     power within 7 days to the intelligence committees. The 
     Director shall advise the Inspector General at the time such 
     report is submitted, and, to the extent consistent with the 
     protection of intelligence sources and methods, provide the 
     Inspector General with a copy of any such report. In such 
     cases, the Inspector General may submit such comments to the 
     intelligence committees that the Director considers 
     appropriate.
       ``(3) The Inspector General of the National Security Agency 
     shall take due regard for the protection of intelligence 
     sources and methods in the preparation of all reports issued 
     by the Office of Inspector General of the National Security 
     Agency, and, to the extent consistent with the purpose and 
     objective of such reports, take such measures as may be 
     appropriate to minimize the disclosure of intelligence 
     sources and methods described in such reports.
       ``(4)(A) The Inspector General of the National Security 
     Agency shall, not later than January 31 and July 31 of each 
     year, prepare and submit to the Director a classified 
     semiannual report summarizing the activities of the Office of 
     Inspector General of the National Security Agency during the 
     immediately preceding 6-month period ending December 31 (of 
     the preceding year) and June 30, respectively. Within 30 days 
     after receipt of such reports, the Director shall transmit 
     such reports to the intelligence committees with any comments 
     the Director may deem appropriate. Such reports shall, at a 
     minimum, include a list of the title or subject of each 
     inspection, investigation, or audit conducted during the 
     reporting period and--
       ``(i) a description of significant problems, abuses, and 
     deficiencies relating to the administration of programs and 
     operations of the National Security Agency identified by the 
     Office during the reporting period;
       ``(ii) a description of the recommendations for corrective 
     action made by the Office during the reporting period with 
     respect to significant problems, abuses, or deficiencies 
     identified in clause (i);
       ``(iii) a statement of whether corrective action has been 
     completed on each significant recommendation described in 
     previous semiannual reports, and, in a case where corrective 
     action has been completed, a description of such corrective 
     action;
       ``(iv) a certification that the Inspector General has had 
     full and direct access to all information relevant to the 
     performance of the functions of the Inspector General;
       ``(v) a description of all cases occurring during the 
     reporting period where the Inspector General could not obtain 
     documentary evidence relevant to any inspection, audit, or 
     investigation due to the lack of authority to subpoena such 
     information; and
       ``(vi) such recommendations as the Inspector General may 
     wish to make concerning legislation to promote economy and 
     efficiency in the administration of programs and operations 
     undertaken by the National Security Agency, and to detect and 
     eliminate fraud and abuse in such programs and operations.
       ``(B) The Inspector General of the National Security Agency 
     shall report immediately to the Director whenever the 
     Inspector General becomes aware of particularly serious or 
     flagrant problems, abuses, or deficiencies relating to the 
     administration of programs or operations. The Director 
     shall transmit such report to the intelligence committees 
     within 7 calendar days, together with any comments the 
     Director considers appropriate.
       ``(C) In the event that--
       ``(i) the Inspector General of the National Security Agency 
     is unable to resolve any differences with the Director 
     affecting the execution of the Inspector General's duties or 
     responsibilities; or
       ``(ii) the Inspector General, after exhausting all possible 
     alternatives, is unable to obtain significant documentary 
     information in the course of an investigation, inspection, or 
     audit,

     the Inspector General shall immediately report such matter to 
     the intelligence committees.
       ``(D) Section 5 shall not apply to the Inspector General 
     and the Office of Inspector General of the National Security 
     Agency.
       ``(5) Subject to applicable law and the policies of the 
     Director, the Inspector General of the National Security 
     Agency shall select, appoint, and employ such officers and 
     employees as may be necessary to carry out the functions of 
     the Inspector General. In making such selections, the 
     Inspector General shall ensure that such officers and 
     employees have the requisite training and experience to 
     enable the Inspector General to carry out the duties of the 
     Inspector General effectively. In this regard, the Inspector 
     General shall create within the organization of the Inspector 
     General a career cadre of sufficient size to provide 
     appropriate continuity and objectivity needed for the 
     effective performance of the duties of the Inspector General.
       ``(6) Beginning with fiscal year 1996, there shall be 
     included in the National Foreign Intelligence Program budget 
     a separate account for the Office of Inspector General of the 
     National Security Agency.
       ``(7) In this subsection, the term `intelligence 
     committees' means the Permanent Select Committee on 
     Intelligence of the House of Representatives and the Select 
     Committee on Intelligence of the Senate.''.
       (3) Implementation.--The Director of the National Security 
     Agency shall, by not later than 60 days after the date of the 
     enactment of this Act and in accordance with the amendments 
     made by this subsection--
       (A) establish the Office of Inspector General of the 
     National Security Agency;
       (B) appoint the Inspector General of the National Security 
     Agency; and
       (C) transfer to that Office the office of the National 
     Security Agency on the day before the date of the enactment 
     of this Act known as the ``Office of Inspector General''.
       (4) Transfer of resources of existing office.--The 
     personnel, assets, liabilities, contracts, property, records, 
     and unexpended balances of appropriations, authorizations, 
     allocations, and other funds employed, held, used, arising 
     from, or available to the office in the National Security 
     Agency on the day before the date of the enactment of this 
     Act known as ``Office of Inspector General'' are hereby 
     transferred to the Office of Inspector General of the 
     National Security Agency established under the amendments 
     made by this subsection.
       (5) Termination of existing office.--The office in the 
     National Security Agency on the day before the date of the 
     enactment of this Act known as ``Office of Inspector 
     General'' is terminated effective on the date of the 
     establishment of the Office of Inspector General of the 
     National Security Agency pursuant to the amendments made by 
     this subsection.
       (6) Conforming amendments.--The first section 8G of the 
     Inspector General Act of 1978 (5 U.S.C. App.) is amended in 
     subsection (c), as amended by subsection (a)(6) of this 
     section, by striking ``subsections (f) and (i)'' and 
     inserting ``subsections (f), (i), and (j)''.
       (7) Reports to intelligence committees.--The National 
     Security Agency Act of 1959 (50 U.S.C. 402 note) is amended 
     by adding at the end the following:
       ``Sec. 19. (a) The Director of the National Security Agency 
     shall submit to the intelligence committees any report or 
     findings and recommendations of an inspection, investigation, 
     or audit conducted by the Office of Inspector General of the 
     National Security Agency which has been requested by the 
     Chairman or Ranking Minority Member of either of the 
     intelligence committees.
       ``(b) In this section, the term `intelligence committees' 
     means the Permanent Select Committee on Intelligence of the 
     House of Representatives and the Select Committee on 
     Intelligence of the Senate.''.
       (8) Relationship of inspector general of department to 
     those of dia and nsa.--Section 8 of the Inspector General Act 
     of 1978 (5 U.S.C. App.) is amended by adding at the end the 
     following:
       ``(h)(1) The Inspector General of the Department of Defense 
     shall not have any authority to conduct any activity with 
     respect to any matter that the Secretary of Defense 
     determines relates solely to the Defense Intelligence Agency 
     or the National Security Agency.
       ``(2) Upon request of the Inspector General of the Defense 
     Intelligence Agency or the National Security Agency, the 
     Inspector General of the Department of Defense may provide to 
     the Inspector General making the request such resources 
     (including personnel) as are appropriate to enable that 
     Inspector General to carry out activities authorized by this 
     Act.''.
           By Mr. FRANK of Massachusetts:
     --Page 4, after line 23, add the following:

     SEC. 104. REDUCTION IN COUNTERNARCOTIC AND DRUG INTERDICTION 
                   FUNDS.

       The amounts authorized to be appropriated under section 101 
     for counternarcotic activities and drug interdiction, as 
     specified in the classified Schedule of Authorizations 
     prepared to accompany the bill H.R. 4299 of the One Hundred 
     Third Congress, are hereby reduced by $100,000,000.
           By Mr. GLICKMAN:
     --At the end of title III (page 5, after line 23), add the 
     following:

     SEC. 303. DISCLOSURE OF CLASSIFIED INFORMATION BY MEMBERS OF 
                   CONGRESS AND EXECUTIVE BRANCH OFFICERS AND 
                   EMPLOYEES.

       During the fiscal year 1995, no element of the United 
     States Government for which funds are authorized in this Act 
     may provide any classified information concerning or derived 
     from the intelligence or intelligence-related activities of 
     such element to a Member of Congress or to an officer or 
     employee of the executive branch of the United States 
     Government unless and until a copy of the following oath of 
     secrecy has been signed by that Member, or officer or 
     employee, as the case may be, and has been published, in an 
     appropriate manner, in the Congressional Record:
       ``I do solemnly swear that I will not willfully directly or 
     indirectly disclose to any unauthorized person any classified 
     information received from any department of the Government 
     funded in the Intelligence Authorization Act for Fiscal Year 
     1995 in the course of my duties as a Member of Congress 
     (except pursuant to the rules and procedures of the 
     appropriate house of the Congress), or as an officer or 
     employee in the executive branch of the Government, as the 
     case may be.''.
       As used in this section, the term ``Member of Congress'' 
     means a Member of the Senate or a Representative in, or a 
     Delegate or Resident Commissioner to, the House of 
     Representatives.
       At the end of title I (page 4, after line 23), add the 
     following:

     SEC. 104. PUBLIC DISCLOSURE OF INTELLIGENCE BUDGET.

       (a) Amounts Expended and Amounts Requested.--(1) The 
     National Security Act of 1947 (50 U.S.C. 401 et seq.) is 
     amended by adding at the end of title I the following new 
     section:


     ``annual report of amounts expended and amounts requested for 
            intelligence and intelligence-related activities

       ``Sec. 109. At the time of submission of the budget of the 
     United States Government for a fiscal year under section 
     1105(a) of title 31, United States Code, the Director of 
     Central Intelligence shall submit to the Congress a separate, 
     unclassified statement of the aggregate amount of 
     expenditures for the fiscal year ending on September 30 of 
     the previous calendar year, and the aggregate amount of funds 
     requested to be appropriated for the fiscal year for which 
     the budget is submitted, for intelligence and intelligence-
     related activities of the Government.''.
       (2) The table of contents at the beginning of the National 
     Security Act of 1947 is amended by inserting after the item 
     relating to section 108 the following new item:

``Sec. 109. Annual report of amounts expended and amounts requested for 
              intelligence and intelligence-related activities.''.

       (b) Congressional Authorization of Intelligence 
     Activities.--Section 504 of the National Security Act of 1947 
     (50 U.S.C. 414) is amended--
       (1) by redesignating subsection (e) as subsection (f); and
       (2) by inserting after subsection (d) the following:
       ``(e) A bill or joint resolution, and any amendment 
     thereto, which authorizes the appropriation of funds for a 
     fiscal year for all intelligence and intelligence-related 
     activities of the United States may set forth in an 
     unclassified statement the aggregate amount of funds 
     authorized to be appropriated in that bill or resolution for 
     such fiscal year for intelligence and intelligence-related 
     activities of the United States.''.
       (c) Effective Date.--(1) The amendment made by subsection 
     (a) shall take effect with respect to the budget submitted 
     for fiscal year 1996.
       (2) The amendment made by subsection (b) shall take effect 
     with respect to bills, resolutions, and amendments, 
     authorizing the appropriation of funds for all intelligence 
     and intelligence-related activities of the United States for 
     fiscal year 1996.
           By Mr. SANDERS:
     --Page 4, after line 23, insert the following:

     SEC. 104. LIMITATION ON AMOUNTS AUTHORIZED TO BE 
                   APPROPRIATED.

       (a) Limitation.--Except as provided in subsection (b), 
     notwithstanding the total amount of the individual 
     authorizations of appropriations contained in this Act, 
     including the amounts specified in the classified Schedule of 
     Authorizations prepared to accompany the bill H.R. 4299 of 
     the One Hundred and Third Congress, there is authorized to be 
     appropriated for fiscal year 1995 to carry out this Act not 
     more than 90 percent of the total amount authorized to be 
     appropriated by the Intelligence Authorization Act for Fiscal 
     year 1994.
       (b) Exception.--Subsection (a) does not apply to amounts 
     authorized to be appropriated for the Central Intelligence 
     Agency Retirement and Disability Fund.
           By Mr. TRAFICANT:
     --Page 5, after line 23, insert the following new section:

     SEC. 303. PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.

       (a) Sense of Congress.--It is the sense of the Congress 
     that, to the greatest extent practicable, all equipment and 
     products purchased with funds made available in this Act 
     should be American-made.
       (b) Notice Requirement.--In providing financial assistance 
     to, or entering into any contract with, any entity using 
     funds made available in this Act, the head of each agency of 
     the Federal or District of Columbia government, to the 
     greatest extent practicable, shall provide to such entity a 
     notice describing the statement made in subsection (a) by the 
     Congress.