[Congressional Record Volume 141, Number 147 (Wednesday, September 20, 1995)]
[Senate]
[Pages S13885-S13903]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                        APPROPRIATIONS ACT, 1996

  The PRESIDING OFFICER. The clerk will report H.R. 1868.
  The assistant legislative clerk read as follows.

       A bill (H.R. 1868) making appropriations for foreign 
     operations, export financing, and related programs for the 
     fiscal year ending September 30, 1996, and for other 
     purposes.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill 
which had been reported from the Committee on Appropriations, with 
amendments, as follows:
  (The parts of the bill intended to be stricken are shown in boldface 
brackets and the parts of the bill intended to be inserted are shown in 
italic.)

                               H.R. 1868

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, That the 
     following sums are appropriated, out of any money in the 
     Treasury not otherwise appropriated,          for the fiscal 
     year ending September 30, 1996, and for other purposes, 
     namely:

               TITLE I--EXPORT AND INVESTMENT ASSISTANCE


                EXPORT-IMPORT BANK OF THE UNITED STATES

       The Export-Import Bank of the United States is authorized 
     to make such expenditures within the limits of funds and 
     borrowing authority available to such corporation, and in 
     accordance with law, and to make such contracts and 
     commitments without regard to fiscal year limitations, as 
     provided by section 104 of the Government Corporation Control 
     Act, as may be necessary in carrying out the program for the 
     current fiscal year for such corporation: Provided, That none 
     of the funds available during the current fiscal year may be 
     used to make expenditures, contracts, or commitments for the 
     export of nuclear equipment, fuel, or technology to any 
     country other than a nuclear-

[[Page S 13886]]
     weapon State as defined in Article IX of the Treaty on the Non-
     Proliferation of Nuclear Weapons eligible to receive economic 
     or military assistance under this Act that has detonated a 
     nuclear explosive after the date of enactment of this Act.

                         subsidy appropriation

       For the cost of direct loans, loan guarantees, insurance, 
     and tied-aid grants as authorized by section 10 of the 
     Export-Import Bank Act of 1945, as amended, [$786,551,000] 
     $795,000,000 to remain available until September 30, 1997: 
     Provided, That such costs, including the cost of modifying 
     such loans, shall be as defined in section 502 of the 
     Congressional Budget Act of 1974: Provided further, That such 
     sums shall remain available until 2010 for the disbursement 
     of direct loans, loan guarantees, insurance and tied-aid 
     grants obligated in fiscal years 1996 and 1997: Provided 
     further, That up to $100,000,000 of funds appropriated by 
     this paragraph shall remain available until expended and may 
     be used for tied-aid grant purposes: Provided further, That 
     none of the funds appropriated by this paragraph may be used 
     for tied-aid credits or grants except through the regular 
     notification procedures of the Committees on Appropriations: 
     Provided further, That funds appropriated by this paragraph 
     are made available notwithstanding section 2(b)(2) of the 
     Export-Import Bank Act of 1945, in connection with the 
     purchase or lease of any product by any East European 
     country, any Baltic State, or any agency or national thereof.


                        ADMINISTRATIVE EXPENSES

       For administrative expenses to carry out the direct and 
     guaranteed loan and insurance programs (to be computed on an 
     accrual basis), including hire of passenger motor vehicles 
     and services as authorized by 5 U.S.C. 3109, and not to 
     exceed $20,000 for official reception and representation 
     expenses for members of the Board of Directors, [$45,228,000] 
     $46,000,000: Provided, That necessary expenses (including 
     special services performed on a contract or fee basis, but 
     not including other personal services) in connection with the 
     collection of moneys owed the Export-Import Bank, 
     repossession or sale of pledged collateral or other assets 
     acquired by the Export-Import Bank in satisfaction of moneys 
     owed the Export-Import Bank, or the investigation or 
     appraisal of any property, or the evaluation of the legal or 
     technical aspects of any transaction for which an application 
     for a loan, guarantee or insurance commitment has been made, 
     shall be considered nonadministrative expenses for the 
     purposes of this heading: Provided further, That, 
     notwithstanding subsection (b) of section 117 of the Export 
     Enhancement Act of 1992, subsection (a) thereof shall remain 
     in effect until October 1, 1996.


                overseas private investment corporation

                           noncredit account

       The Overseas Private Investment Corporation is authorized 
     to make, without regard to fiscal year limitations, as 
     provided by 31 U.S.C. 9104, such expenditures and commitments 
     within the limits of funds available to it and in accordance 
     with law as may be necessary: Provided, That the amount 
     available for administrative expenses to carry out the credit 
     and insurance programs (including an amount for official 
     reception and representation expenses which shall not exceed 
     [$35,000] $20,000) shall not exceed [$26,500,000] 
     $26,000,000: Provided further, That project-specific 
     transaction costs, including direct and indirect costs 
     incurred in claims settlements, and other direct costs 
     associated with services provided to specific investors or 
     potential investors pursuant to section 234 of the Foreign 
     Assistance Act of 1961, shall not be considered 
     administrative expenses for the purposes of this heading.


                            program account

       For the cost of direct and guaranteed loans, [$69,500,000] 
     $79,000,000, as authorized by section 234 of the Foreign 
     Assistance Act of 1961, to be derived by transfer from the 
     Overseas Private Investment Corporation Noncredit account: 
     Provided, That such costs, including the cost of modifying 
     such loans, shall be as defined in section 502 of the 
     Congressional Budget Act of 1974: Provided further, That such 
     sums shall be available for direct loan obligations and loan 
     guaranty commitments incurred or made during fiscal years 
     1996 and 1997: Provided further, That such sums shall remain 
     available through fiscal year 2003 for the disbursement of 
     direct and guaranteed loans obligated in fiscal year 1996, 
     and through fiscal year 2004 for the disbursement of direct 
     and guaranteed loans obligated in fiscal year 1997. In 
     addition, such sums as may be necessary for administrative 
     expenses to carry out the credit program may be derived from 
     amounts available for administrative expenses to carry out 
     the credit and insurance programs in the Overseas Private 
     Investment Corporation Noncredit Account and merged with said 
     account.

                  Funds Appropriated to the President


                      trade and development agency

       For necessary expenses to carry out the provisions of 
     section 661 of the Foreign Assistance Act of 1961, 
     $40,000,000: Provided, That the Trade and Development Agency 
     may receive reimbursements from corporations and other 
     entities for the costs of grants for feasibility studies and 
     other project planning services, to be deposited as an 
     offsetting collection to this account and to be available for 
     obligation until September 30, 1997, for necessary expenses 
     under this paragraph: Provided further, That such 
     reimbursements shall not cover, or be allocated against, 
     direct or indirect administrative costs of the agency.
                 [International Financial Institutions


         [contribution to the international finance corporation

       [For payment to the International Finance Corporation by 
     the Secretary of the Treasury, $67,550,000, for the United 
     States share of the increase in subscriptions to capital 
     stock, to remain available until expended: Provided, That of 
     the amount appropriated under this heading not more than 
     $5,269,000 may be expended for the purchase of such stock in 
     fiscal year 1996.


     [contribution to the enterprise for the americas multilateral 
                            investment fund

       [For payment to the Enterprise for the Americas 
     Multilateral Investment Fund by the Secretary of the 
     Treasury, for the United States contribution to the Fund to 
     be administered by the Inter-American Development Bank, 
     $70,000,000 to remain available until expended.]
                TITLE II--BILATERAL ECONOMIC ASSISTANCE


                  funds appropriated to the president

       For expenses necessary to enable the President to carry out 
     the provisions of the Foreign Assistance Act of 1961, and for 
     other purposes, to remain available until September 30, 1996, 
     unless otherwise specified herein, as follows:
                 [Agency for International Development


                  [children and disease programs fund

       [For necessary expenses to carry out the provisions of part 
     I and chapter 4 of part II of the Foreign Assistance Act of 
     1961, for child survival, assistance to combat tropical and 
     other diseases, and related assistance activities, 
     $592,660,000, to remain available until September 30, 1997: 
     Provided, That this amount shall be made available for such 
     activities as (1) immunization programs, (2) oral rehydration 
     programs, (3) health and nutrition programs, and related 
     education programs, which address the needs of mothers and 
     children, (4) water and sanitation programs, (5) assistance 
     for displaced and orphaned children, (6) programs for the 
     prevention, treatment, and control of, and research on, HIV/
     AIDS, polio, malaria and other diseases, (7) basic education 
     programs, and (8) a contribution on a grant basis to the 
     United Nations Children's Fund (UNICEF): Provided further, 
     That funds appropriated under this heading shall be in 
     addition to amounts otherwise available for such purposes.
                      [development assistance fund
                          economic assistance
                    [(including transfers of funds)
       [For necessary expenses to carry out the provisions of 
     sections 103 through 106, of the Foreign Assistance Act of 
     1961, $655,000,000] For necessary expenses to carry out the 
     provisions of sections 103 through 106, chapter 10 of part I, 
     and chapter 4 of part II of the Foreign Assistance Act of 
     1961, and the provisions of title V of the International 
     Security and Development Cooperation Act of 1980 (Public Law 
     96-533) and provisions of section 401 of the Foreign 
     Assistance Act of 1969, $2,117,099,331, to remain available 
     until September 30, 1997: Provided, That funds made available 
     under this heading for each of (1) sections 103 through 106, 
     (2) section 104(b), (3) chapter 10 of part I, (4) chapter 4 
     of part II (exclusive of assistance for Israel and Egypt) of 
     the Foreign Assistance Act of 1961, (5) title V of Public Law 
     96-533, (6) section 401 of the Foreign Assistance Act of 
     1969, and (7) for ``Debt Restructuring'', shall be the same 
     proportion to the total amount appropriated under this 
     heading as the proportion of funds appropriated to carry out 
     each of such provisions was to the total amount appropriated 
     for them in title II of Public Law 103-306, exclusive of 
     assistance to Israel and Egypt: Provided further, That the 
     use of any authority to waive the requirements of the 
     previous proviso shall be subject to the regular notification 
     requirements of the Committees on Appropriations: Provided 
     further, That of the funds appropriated or otherwise 
     available by this Act for population planning assistance 
     administered by the Agency for International Development, not 
     less than $350,000,000 shall be made available for the 
     central Office of Population of the Agency for International 
     Development in fiscal year 1996, which sum shall be made 
     available to that office: Provided further, That none of the 
     funds made available in this Act nor any unobligated balances 
     from prior appropriations may be made available to any 
     organization or program which, as determined by the President 
     of the United States, supports or participates in the 
     management of a program of coercive abortion or involuntary 
     sterilization: Provided further, That none of the funds made 
     available under this heading may be used to pay for the 
     performance of abortion as a method of family planning or to 
     motivate or coerce any person to practice abortions; and that 
     in order to reduce reliance on abortion in developing 
     nations, funds shall be available only to voluntary family 
     planning projects which offer, either directly or through 
     referral to, or information about access to, a broad range of 
     family planning methods and services: Provided further, That 
     in awarding grants for natural family planning under section 
     104 of the Foreign Assistance Act of 1961 no applicant shall 
     be discriminated against because of such applicant's 
     religious or conscientious commitment to offer only natural 
     family planning; and, additionally, all such applicants shall 
     comply with the requirements of the previous proviso: 
     Provided further, That for purposes of this or any other Act 
     authorizing or appropriating funds for foreign operations, 
     export 

[[Page S 13887]]
     financing, and related programs, the term ``motivate'', as it relates 
     to family planning assistance, shall not be construed to 
     prohibit the provision, consistent with local law, of 
     information or counseling about all pregnancy options 
     including abortion: Provided further, That nothing in this 
     paragraph shall be construed to alter any existing statutory 
     prohibitions against abortion under section 104 of the 
     Foreign Assistance Act of 1961: Provided further, That, 
     notwithstanding section 109 of the Foreign Assistance Act of 
     1961, of the funds appropriated under this heading [and under 
     the heading ``Development Fund for Africa'',] not to exceed a 
     total of $15,000,000 may be transferred to ``International 
     Organizations and Programs'' for a contribution to the 
     International Fund for Agricultural Development (IFAD), and 
     that any such transfer of funds shall be subject to the 
     regular notification procedures of the Committees on 
     Appropriations: Provided further, That none of the funds made 
     available under this heading may be transferred to the 
     Government of Zaire.
                      [development fund for africa

       [For necessary expenses to carry out the provisions of 
     chapter 10 of part I of the Foreign Assistance Act of 1961, 
     $528,000,000, to remain available until September 30, 1997: 
     Provided, That none of the funds appropriated by this Act to 
     carry out chapters 1 and 10 of part I of the Foreign 
     Assistance Act of 1961 shall be transferred to the Government 
     of Zaire: Provided further, That funds appropriated under 
     this heading which are made available for activities 
     supported by the Southern Africa Development Community shall 
     be made available notwithstanding section 512 of this Act and 
     section 620(q) of the Foreign Assistance Act of 1961.]
                                 cyprus

       Of the funds appropriated under the heading ``Economic 
     Assistance'', not less than $15,000,000 shall be made 
     available for Cyprus to be used only for scholarships, 
     bicommunal projects, and measures aimed at reunification of 
     the island and designed to reduce tensions and promote peace 
     and cooperation between the two communities on Cyprus.


                                 burma

       Of the funds appropriated under the heading ``Economic 
     Assistance'', not less than $2,000,000 shall be made 
     available to strengthen democracy and support humanitarian 
     activities in Burma: Provided, That of this amount, not less 
     than $200,000 shall be used to support newspapers, 
     publications and media activities promoting democracy inside 
     Burma: Provided further, That funds made available under this 
     heading may be made available to organizations and Burmese 
     student groups to expand indigenous participation in the 
     political process, transportation, communications, 
     publications, administration, and medical supplies and 
     humanitarian services: Provided further, That funds made 
     available under this heading may be made available to support 
     activities in Burma, along the Burma-Thailand border, and to 
     support activities designated by this Act outside Burma: 
     Provided further, That funds made available under this 
     heading may be made available notwithstanding any other 
     provision of law: Provided further, That provision of such 
     funds shall be made available subject to the regular 
     notification procedures of the Appropriations Committees.
                  private and voluntary organizations

       None of the funds appropriated or otherwise made available 
     by this Act for development assistance may be made available 
     to any United States private and voluntary organization, 
     except any cooperative development organization, which 
     obtains less than 20 per centum of its total annual funding 
     for international activities from sources other than the 
     United States Government: Provided, That the requirements of 
     the provisions of section 123(g) of the Foreign Assistance 
     Act of 1961 and the provisions on private and voluntary 
     organizations in title II of the ``Foreign Assistance and 
     Related Programs Appropriations Act, 1985'' (as enacted in 
     Public Law 98-473) shall be superseded by the provisions of 
     this section, except that the authority contained in the last 
     sentence of section 123(g) may be exercised by the 
     Administrator with regard to the requirements of this 
     paragraph.
       [Funds appropriated or otherwise made available under title 
     II of this Act should be made available to private and 
     voluntary organizations at a level which is equivalent to the 
     level provided in fiscal year 1995. Such private and 
     voluntary organizations shall include those which operate on 
     a not-for-profit basis, receive contributions from private 
     sources, receive voluntary support from the public and are 
     deemed to be among the most cost-effective and successful 
     providers of development assistance.
                   [INTERNATIONAL DISASTER ASSISTANCE
       [For necessary expenses for international disaster relief, 
     rehabilitation, and reconstruction assistance pursuant to 
     section 491 of the Foreign Assistance Act of 1961, as 
     amended, $200,000,000 to remain available until expended.]
                           debt restructuring

       [For] Of the funds made available under the heading 
     ``Economic Assistance'', for the cost, as defined in section 
     502 of the Congressional Budget Act of 1974, of modifying 
     direct loans and loan guarantees, as the President may 
     determine, for which funds have been appropriated or 
     otherwise made available for programs within the 
     International Affairs Budget Function 150, including the cost 
     of selling, reducing, or canceling amounts, through debt 
     buybacks and swaps, [owed to the United States as a result of 
     concessional loans made to eligible Latin American and 
     Caribbean countries, pursuant to part IV of the Foreign 
     Assistance Act of 1961, $7,000,000] $15,000,000, to remain 
     available until expended.


         micro and small enterprise development program account

       [For] Of the funds made available under the heading 
     ``Economic Assistance'', for the subsidy cost of direct loans 
     and loan guarantees, $1,500,000, as authorized by section 108 
     of the Foreign Assistance Act of 1961, as amended: Provided, 
     That such costs shall be as defined in section 502 of the 
     Congressional Budget Act of 1974: Provided further, That 
     guarantees of loans made under this heading in support of 
     microenterprise activities may guarantee up to 70 percent of 
     the prinicpal amount of any such loans notwithstanding 
     section 108 of the Foreign Assistance Act of 1961. In 
     addition, for administrative expenses to carry out programs 
     under this heading, $500,000, all of which may be transferred 
     to and merged with the appropriation for Operating Expenses 
     of the Agency for International Development: Provided 
     further, That funds made available under this heading shall 
     remain available until September 30, 1997.


                    HOUSING GUARANTY PROGRAM ACCOUNT
       [For administrative expenses to carry out guaranteed loan 
     programs, $7,000,000, all of which may be transferred to and 
     merged with the appropriation for Operating Expenses of the 
     Agency for International Development.]
       Of the funds made available under the heading ``Economic 
     Assistance'', for the subsidy cost, as defined in section 
     13201 of the Budget Enforcement Act of 1990, of guaranteed 
     loans authorized by sections 221 and 222 of the Foreign 
     Assistance Act of 1961, $8,000,000: Provided, That these 
     funds are available to subsidize loan principal, 100 percent 
     of which shall be guaranteed, pursuant to the authority of 
     such sections: Provided further, That the President shall 
     enter into commitments to guarantee such loans in the full 
     amount provided under this heading, subject to the 
     availability of qualified applicants for such guarantees: 
     Provided further, That for administrative expenses to carry 
     out guaranteed loan programs, $7,000,000, all of which may be 
     transferred to and merged with the appropriation for 
     Operating Expenses of the Agency for International 
     Development: Provided further, That commitments to guarantee 
     loans under this heading may be entered into notwithstanding 
     the second and third sentences of section 222(a) and, with 
     regard to programs for Eastern Europe and programs for the 
     benefit of South Africans disadvantaged by apartheid, section 
     223(j) of the Foreign Assistance Act of 1961: Provided 
     further, That none of the funds appropriated under this 
     heading shall be obligated except through the regular 
     notification procedures of the Committees on Appropriations.
                   international disaster assistance

       For necessary expenses for international disaster relief, 
     rehabilitation, and reconstruction assistance pursuant to 
     section 491 of the Foreign Assistance Act of 1961, as 
     amended, $175,000,000 to remain available until expended.
     PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND DISABILITY FUND

       For payment to the ``Foreign Service Retirement and 
     Disability Fund'', as authorized by the Foreign Service Act 
     of 1980, $43,914,000.


     OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT

       For necessary expenses to carry out the provisions of 
     section 667, [$465,750,000] $490,000,000[: Provided, That of 
     this amount not more than $1,475,000 may be made available to 
     pay for printing costs: Provided further, That none of the 
     funds appropriated by this Act for programs administered by 
     the Agency for International Development may be used to 
     finance printing costs of any report or study (except 
     feasibility, design, or evaluation reports or studies) in 
     excess of $25,000 without the approval of the Administrator 
     of that Agency or the Administrator's designee].


 operating expenses of the agency for international development office 
                          of inspector general

       For necessary expenses to carry out the provisions of 
     section 667, [$35,200,000] $30,200,000, which sum shall be 
     available for the Office of the Inspector General of the 
     Agency for International Development.

                  Other Bilateral Economic Assistance
                         economic support fund
                            middle east fund
       For necessary expenses to carry out the provisions of 
     chapter 4 of part II, [$2,300,000,000] $2,015,000,000, to 
     remain available until September 30, 1997[: Provided, That 
     any funds appropriated under this heading that are made 
     available for Israel shall be made available on a grant basis 
     as a cash transfer and shall be disbursed within thirty days 
     of enactment of this Act or by October 31, 1995, whichever is 
     later]: Provided, That of the funds appropriated under this 
     heading, not less than $1,200,000,000 shall be available only 
     for Israel, which sum shall be available on a grant basis as 
     a cash transfer and shall be disbursed within thirty days of 
     enactment of this Act or by October 31, 1995, whichever is 
     later: Provided further, That not less than $815,000,000 
     shall be available only for Egypt, which sum shall be 
     provided on a grant basis, and of which sum cash transfer 
     assistance may be provided, 

[[Page S 13888]]
     with the understanding that Egypt will undertake significant economic 
     reforms which are additional to those which were undertaken 
     in previous fiscal years, and of which not less than 
     $200,000,000 shall be provided as Commodity Import Program 
     assistance: Provided further, That in exercising the 
     authority to provide cash transfer assistance for Israel and 
     Egypt, the President shall ensure that the level of such 
     assistance does not cause an adverse impact on the total 
     level of nonmilitary exports from the United States to each 
     such country: Provided further, That it is the sense of the 
     Congress that the recommended levels of assistance for Egypt 
     and Israel are based in great measure upon their continued 
     participation in the Camp David Accords and upon the 
     Egyptian-Israeli peace treaty[: Provided further, That none 
     of the funds appropriated under this heading shall be made 
     available for Zaire].
                    [international fund for ireland

       [For necessary expenses to carry out the provisions of part 
     I of the Foreign Assistance Act of 1961, up to $19,600,000, 
     which shall be available for the United States contribution 
     to the International Fund for Ireland and shall be made 
     available in accordance with the provisions of the Anglo-
     Irish Agreement Support Act of 1986 (Public Law 99-415): 
     Provided, That such amount shall be expended at the minimum 
     rate necessary to make timely payment for projects and 
     activities: Provided further, That funds made available under 
     this heading shall remain available until September 30, 
     1997.]
          assistance for eastern europe and the baltic states

       (a) For necessary expenses to carry out the provisions of 
     the Foreign Assistance Act of 1961 and the Support for East 
     European Democracy (SEED) Act of 1989, [$324,000,000] 
     $335,000,000, to remain available until September 30, 1997, 
     which shall be available, notwithstanding any other provision 
     of law, for economic assistance and for related programs for 
     Eastern Europe and the Baltic States.
       (b) Funds appropriated under this heading or in prior 
     appropriations Acts that are or have been made available for 
     an Enterprise Fund may be deposited by such Fund in interest-
     bearing accounts prior to the Fund's disbursement of such 
     funds for program purposes. The Fund may retain for such 
     program purposes any interest earned on such deposits without 
     returning such interest to the Treasury of the United States 
     and without further appropriation by the Congress. Funds made 
     available for Enterprise Funds shall be expended at the 
     minimum rate necessary to make timely payment for projects 
     and activities.
       (c) Funds appropriated under this heading shall be 
     considered to be economic assistance under the Foreign 
     Assistance Act of 1961 for purposes of making available the 
     administrative authorities contained in that Act for the use 
     of economic assistance.


  assistance for the new independent states of the former soviet union

       (a) For necessary expenses to carry out the provisions of 
     chapter 11 of part I of the Foreign Assistance Act of 1961 
     and the FREEDOM Support Act, for assistance for the new 
     independent states of the former Soviet Union and for related 
     programs, [$580,000,000] $705,000,000, to remain available 
     until September 30, 1997: Provided, That the provisions of 
     498B(j) of the Foreign Assistance Act of 1961 shall apply to 
     funds appropriated by this paragraph.
       (b) None of the funds appropriated under this heading shall 
     be transferred to the Government of Russia--
       (1) unless that Government is making progress in 
     implementing comprehensive economic reforms based on market 
     principles, private ownership, negotiating repayment of 
     commercial debt, respect for commercial contracts, and 
     equitable treatment of foreign private investment; and
       (2) if that Government applies or transfers United States 
     assistance to any entity for the purpose of expropriating or 
     seizing ownership or control of assets, investments, or 
     ventures.
       (c) Funds may be furnished without regard to subsection (b) 
     if the President determines that to do so is in the national 
     interest.
       (d) None of the funds appropriated under this heading shall 
     be made available to any government of the new independent 
     states of the former Soviet Union if that government directs 
     any action in violation of the territorial integrity or 
     national sovereignty of any other new independent state[, 
     such as those violations included in Principle Six of the 
     Helsinki Final Act: Provided, That such funds may be made 
     available without regard to the restriction in this 
     subsection if the President determines that to do so is in 
     the national security interest of the United States: Provided 
     further,]: Provided, That the restriction of this subsection 
     shall not apply to the use of such funds for the provision of 
     assistance for purposes of humanitarian, disaster and refugee 
     relief.
       (e) None of the funds appropriated under this heading for 
     the new independent states of the former Soviet Union shall 
     be made available for any state to enhance its military 
     capability: Provided, That this restriction does not apply to 
     demilitarization, defense conversion or non-proliferation 
     programs.
       (f) Funds appropriated under this heading shall be subject 
     to the regular notification procedures of the Committees on 
     Appropriations.
       (g) Funds made available in this Act for assistance to the 
     new independent states of the former Soviet Union shall be 
     subject to the provisions of section 117 (relating to 
     environment and natural resources) of the Foreign Assistance 
     Act of 1961.
       (h) Funds appropriated under this heading may be made 
     available for assistance for Mongolia.
       (i) Funds made available in this Act for assistance to the 
     new independent states of the former Soviet Union shall be 
     provided to the maximum extent feasible through the private 
     sector, including small- and medium-size businesses, 
     entrepreneurs, and others with indigenous private enterprises 
     in the region, intermediary development organizations 
     committed to private enterprise, and private voluntary 
     organizations [previously functioning in the new independent 
     states].
       [(j) The ratio of private sector investment (including 
     volunteer contributions in cash or time) to United States 
     government assistance in projects referred to in subsection 
     (i) shall be no less than a ratio of 1 to 1.]
       (k) Of the funds appropriated under this heading, not less 
     than $15,000,000 should be available only for a family 
     planning program for the new independent states of the former 
     Soviet Union comparable to the family planning program 
     currently administered by the Agency for International 
     Development in the Central Asian Republics and focusing on 
     population assistance which provides an alternative to 
     abortion.
       (l) Notwithstanding any other provision of law or this Act, 
     of the funds appropriated under this heading, not less than 
     $85,000,000 shall be made available for programs and 
     activities for Armenia, of which $35,000,000 shall be 
     available for food, $40,000,000 shall be available for fuel, 
     and $10,000,000 shall be available for medical supplies and 
     services.
       (m) Of the funds made available by this or any other Act, 
     not less than $30,000,000 shall be made available for 
     programs and activities for Georgia.
       (n) Of the funds appropriated under this heading, not less 
     than $225,000,000 shall be made available for Ukraine: 
     Provided, That of these funds made available, not less than 
     $3,000,000 shall be made available to assist in establishing 
     a commodities exchange board: Provided further, That not less 
     than $5,000,000 shall be made available to support 
     improvements in the delivery of social services: Provided 
     further, That not less than $20,000,000 shall be available to 
     support the development of small and medium enterprises: 
     Provided further, That not less than $2,000,000 shall be 
     provided to support strengthening in independent broadcast 
     and print media: Provided further, That not less than 
     $5,000,000 shall be available for a pilot project to screen, 
     diagnose, and treat Chernobyl victims suffering from breast 
     cancer: Provided further, That not less than $5,000,000 shall 
     be available to support a joint United States-Ukraine 
     geographic survey to determine levels of contamination caused 
     by the Chernobyl reactor: Provided further, That not less 
     than $2,000,000 shall be available to conduct an assessment 
     of the energy distribution grid with recommendations on 
     improvements necessary to provide comprehensive industrial, 
     commercial and residential access to power: Provided further, 
     That not less than $5,000,000 shall be made available for a 
     pilot project to establish a management and market economics 
     training partnership between a Ukrainian university and a 
     United States university with demonstrated experience in 
     Eastern Europe or the New Independent States and an ability 
     to plan and direct a multi-faceted program including business 
     management, manufacturing management, market economics, and 
     public administration training.
       (o) Of the funds made available for Ukraine, under this Act 
     or any other Act, not less than $50,000,000 shall be made 
     available to improve nuclear energy self-sufficiency and 
     improve safety at nuclear reactors: Provided, That of this 
     amount, not less than $30,000,000 shall be made available to 
     provide technical assistance, training and equipment to 
     develop institutions and procedures to license, purchase, 
     transfer and use nuclear fuel assemblies consistent with 
     International Atomic Energy Agency standards: Provided 
     further, That of this amount, not less than $20,000,000 shall 
     be provided for the purchase, installation and training for 
     safety parameter display systems or safety control systems at 
     all nuclear operational nuclear reactors, but on a priority 
     basis at the Chernobyl facility.
       (p) Notwithstanding any other provision of law or of this 
     Act, of the funds made available under this heading, within 
     30 days of enactment of this Act, not less than $4,500,000 
     shall be transferred to the Federal Bureau of Investigation 
     to establish Legal Attache offices and related programs in 
     Ukraine, Kazakhstan, and Estonia: Provided, That these funds 
     shall support both in country and regional law enforcement 
     liaison and investigation activities.
       (q) Notwithstanding any other provision of law or of this 
     Act, of the funds made available under this heading, within 
     30 days of enactment of this Act not less than $12,600,000 
     shall be transferred to the Federal Bureau of Investigation 
     for international training and cooperation in Central Europe 
     and the New Independent States: Provided, That these funds 
     may support training conducted at the International Law 
     Enforcement Academy in Hungary, in country training sessions 
     in Central Europe, the Baltics, and the New Independent 
     States, and efforts to establish national law enforcement 
     institutes.
       (r) Of the funds made available under this heading, not 
     less than $20,000,000 shall be available for hospital 
     partnership programs.
       (s) Of the funds made available under this heading, not 
     less than $45,000,000 shall be provided to the Western NIS 
     Enterprise Fund.
       (t) No funds may be made available under this heading, 
     until the Department of State Office of the Coordinator for 
     United States Assistance to the New Independent States 
     submits a report to 

[[Page S 13889]]
     the Committees on Appropriations providing a country by country 
     development strategy including the type of activities planned 
     to carry out the strategy requirements.
       (u) No funds may be made available under this heading for 
     Russia unless the President determines and certifies in 
     writing to the Committees on Appropriations that the 
     Government of Russia has terminated all planning and 
     implementation of arrangements to provide Iran with technical 
     expertise, training, technology or equipment necessary to 
     develop a nuclear reactor or related nuclear research 
     facilities or programs.
       (v) Funds appropriated under this heading or in prior 
     appropriations Acts that are or have been made available for 
     an Enterprise Fund may be deposited by such Fund in interest-
     bearing accounts prior to the Funds disbursement of such 
     funds. The Fund may retain for program purposes any interest 
     earned on such deposits without returning such interest to 
     the Treasury of the United States and without further 
     appropriation by Congress.
       (w) Of the funds made available under this heading, not 
     less than $15,000,000 shall be made available to support 
     establishing a Trans-Caucasus Enterprise Fund.
                         [Independent Agencies


                    [african development foundation

       [For necessary expenses to carry out the provisions of 
     title V of the International Security and Development 
     Cooperation Act of 1980, Public Law 96-533, and to make such 
     contracts and commitments without regard to fiscal year 
     limitations, as provided by 31 U.S.C. 9104, $11,500,000.


                       [INTER-AMERICAN FOUNDATION

       [For expenses necessary to carry out the functions of the 
     Inter-American Foundation in accordance with the provisions 
     of section 401 of the Foreign Assistance Act of 1969, and to 
     make such contracts and commitments without regard to fiscal 
     year limitations, as provided by section 9104, title 31, 
     United States Code, $20,000,000.]
                              PEACE CORPS

       For expenses necessary to carry out the provisions of the 
     Peace Corps Act (75 Stat. 612), [$210,000,000] $200,000,000, 
     including the purchase of not to exceed five passenger motor 
     vehicles for administrative purposes for use outside of the 
     United States: Provided, That none of the funds appropriated 
     under this heading shall be used to pay for abortions: 
     Provided further, That funds appropriated under this heading 
     shall remain available until September 30, 1997.

                          Department of State


                    INTERNATIONAL NARCOTICS CONTROL

       For necessary expenses to carry out the provisions of 
     section 481 of the Foreign Assistance Act of 1961, 
     [$113,000,000] $150,000,000: Provided, That during fiscal 
     year 1996, the Department of State may also use the authority 
     of section 608 of the Foreign Assistance Act of 1961, without 
     regard to its restrictions, to receive non-lethal excess 
     property from an agency of the United States Government for 
     the purpose of providing it to a foreign country under 
     chapter 8 of part I of that Act subject to the regular 
     notification procedures of the Committees on Appropriations: 
     Provided further, That of the funds appropriated under this 
     heading, not less than $1,800,000 shall be available to 
     establish and maintain a Federal Bureau of Investigation 
     Legal Attache office in Cairo, Egypt: Provided further, That 
     not less than $5,000,000 shall be made available to the 
     Federal Bureau of Investigation and the Secret Service to 
     establish and maintain offices in the Triborder area of 
     Argentina, Brazil and Paraguay.


                    MIGRATION AND REFUGEE ASSISTANCE

       For expenses, not otherwise provided for, necessary to 
     enable the Secretary of State to provide, as authorized by 
     law, a contribution to the International Committee of the Red 
     Cross, assistance to refugees, including contributions to the 
     International Organization for Migration and the United 
     Nations High Commissioner for Refugees, and other activities 
     to meet refugee and migration needs; salaries and expenses of 
     personnel and dependents as authorized by the Foreign Service 
     Act of 1980; salaries and expenses of personnel assigned to 
     the bureau charged with carrying out the Migrations and 
     Refugee Assistance Act; allowances as authorized by sections 
     5921 through 5925 of title 5, United States Code, purchase 
     and hire of passenger motor vehicles; and services as 
     authorized by section 3109 of title 5, United States Code, 
     $671,000,000: Provided, That not more than $12,000,000 shall 
     be available for administrative expenses[: Provided, That, 
     one of the funds appropriated under this heading shall be 
     available for salaries and expenses of personnel assigned to 
     the bureau charged with carrying out the Migration and 
     Refugee Assistance Act[: Provided further, That not less than 
     $80,000,000 shall be made available for refugees from the 
     former Soviet Union and Eastern Europe and other refugees 
     resettling in Israel.
                    [refugee resettlement assistance

       [For necessary expenses for the targeted assistance program 
     authorized by title IV of the Immigration and Nationality Act 
     and section 501 of the Refugee Education Assistance Act of 
     1980 and administered by the Office of Refugee Resettlement 
     of the Department of Health and Human Services, in addition 
     to amounts otherwise available for such purposes, 
     $5,000,000.]
     united states emergency refugee and migration assistance fund

       For necessary expenses to carry out the provisions of 
     section 2(c)  of  the  Migration  and  Refugee  Assistance  
     Act  of  1962,  as amended (22 U.S.C. 260(c)), $50,000,000, 
     to remain available until expended: Provided, That the funds 
     made available under this heading are appropriated 
     notwithstanding the provisions contained in section 2(c)(2) 
     of the Migration and Refugee Assistance Act of 1962 which 
     would limit the amount of funds which could be appropriated 
     for this purpose.


                       anti-terrorism assistance

       For necessary expenses to carry out the provisions of 
     chapter 8 of part II of the Foreign Assistance Act of 1961, 
     [$17,000,000] $15,000,000.


                 nonproliferation and disarmament fund

       For necessary expenses for a ``Nonproliferation and 
     Disarmament Fund'', $20,000,000, to remain available until 
     expended, to promote bilateral and multilateral activities: 
     Provided, That such funds may be used pursuant to the 
     authorities contained in section 504 of the FREEDOM Support 
     Act: Provided further, That such funds may also be used for 
     such countries other than the new independent states of the 
     former Soviet Union and international organizations when it 
     is in the national security interest of the United States to 
     do so: Provided further, That funds appropriated under this 
     heading may be made available notwithstanding any other 
     provision of law: Provided further, That funds appropriated 
     under this heading shall be subject to the regular 
     notification procedures of the Committees on Appropriations.

                     TITLE III--MILITARY ASSISTANCE

                  Funds Appropriated to the President


             international military education and training

       For necessary expenses to carry out the provisions of 
     section 541 of the Foreign Assistance Act of 1961, 
     [$39,000,000] $19,000,000: Provided, That up to $100,000 of 
     the funds appropriated under this heading may be made 
     available for grant financed military education and training 
     for any high income country on the condition that that 
     country agrees to fund from its own resources the 
     transportation cost and living allowances of its students: 
     Provided further, That the civilian personnel for whom 
     military education and training may be provided under this 
     heading may also include members of national legislatures who 
     are responsible for the oversight and management of the 
     military, and may also include individuals who are not 
     members of a government: Provided further, That none of the 
     funds appropriated under this heading shall be available for 
     Zaire and Guatemala[: Provided further, That funds 
     appropriated under this heading for grant financed military 
     education and training for Indonesia and Guatemala may only 
     be available for expanded military education and training].


                   foreign military financing program

       For expenses necessary for grants to enable the President 
     to carry out the provisions of section 23 of the Arms Export 
     Control Act, [$3,211,279,000] $3,207,500,000: [Provided, That 
     funds appropriated by this paragraph that are made available 
     for Israel and Egypt shall be made available only as grants: 
     Provided further, That the funds appropriated by this 
     paragraph that are made available for Israel shall be 
     disbursed within thirty days of enactment of this Act or by 
     October 31, 1995, whichever is later: Provided further, That 
     to the extent that the Government of Israel requests that 
     funds be used for such purposes, grants made available for 
     Israel by this paragraph shall, as agreed by Israel and the 
     United States, be available for advanced weapons systems, of 
     which not to exceed $475,000,000 shall be available for the 
     procurement in Israel of defense articles and defense 
     services, including research and development: Provided 
     further, That funds made available under this paragraph shall 
     be nonrepayable notwithstanding any requirement in section 23 
     of the Arms Export Control Act:] Provided, That of the funds 
     appropriated by this paragraph not less than $1,800,000,000 
     shall be available for grants only for Israel, and not less 
     than $1,300,000,000 shall be available for grants only for 
     Egypt: Provided further, That the funds appropriated by this 
     paragraph for Israel shall be disbursed within thirty days of 
     enactment of this Act or by October 31, 1995, whichever is 
     later: Provided further, That to the extent that the 
     Government of Israel requests that funds be used for such 
     purposes, grants made available for Israel by this paragraph 
     shall, as agreed by Israel and the United States, be 
     available for advanced fighter aircraft programs or for other 
     advanced weapons systems, as follows: (1) up to $150,000,000 
     shall be available for research and development in the United 
     States; and (2) not less than $475,000,000 shall be available 
     for the procurement in Israel of defense articles and defense 
     services, including research and development: Provided 
     further, That funds made available under this paragraph shall 
     be nonrepayable notwithstanding any requirement in section 23 
     of the Arms Export Control Act: Provided further, That, for 
     the purpose only of providing support for the Warsaw 
     Initiative Program, of the funds appropriated by this Act 
     under the headings ``Assistance for Eastern Europe and the 
     Baltic States'' and ``Assistance for the New Independent 
     States of the Former Soviet Union'', up to a total of 
     $20,000,000 may be transferred, notwithstanding any other 
     provision of law, to the funds appropriated under this 
     paragraph: Provided further, That none of the funds made 
     available under this heading shall be available for any non-
     NATO country participating in the Partnership for Peace 

[[Page S 13890]]
     Program except through the regular notification procedures of the 
     Committees on Appropriations.
       For the cost, as defined in section 502 of the 
     Congressional Budget Act of 1974, of direct loans authorized 
     by section 23 of the Arms Export Control Act as follows: cost 
     of direct loans, $64,400,000: Provided, That these funds are 
     available to subsidize gross obligations for the principal 
     amount of direct loans of not to exceed $544,000,000: 
     Provided further, That the rate of interest charged on such 
     loans shall be not less than the current average market yield 
     on outstanding marketable obligations of the United States of 
     comparable maturities: Provided further, That funds 
     appropriated under this heading shall be made available for 
     Greece and Turkey only on a loan basis, and the principal 
     amount of direct loans for each country shall not exceed the 
     following: $224,000,000 only for Greece and [shall not 
     exceed] $320,000,000 only for Turkey.
       None of the funds made available under this heading shall 
     be available to finance the procurement of defense articles, 
     defense services, or design and construction services that 
     are not sold by the United States Government under the Arms 
     Export Control Act unless the foreign country proposing to 
     make such procurements has first signed an agreement with the 
     United States Government specifying the conditions under 
     which such procurements may be financed with such funds: 
     Provided, That all country and funding level increases in 
     allocations shall be submitted through the regular 
     notification procedures of section 515 of this Act: Provided 
     further, That funds made available under this heading shall 
     be obligated upon apportionment in accordance with paragraph 
     (5)(C) of title 31, United States Code, section 1501(a): 
     Provided further, That none of the funds appropriated under 
     this heading shall be available for Zaire, Sudan, Peru, 
     Liberia, and Guatemala: Provided further, That none of the 
     funds appropriated or otherwise made available for use under 
     this heading may be made available for Colombia or Bolivia 
     until the Secretary of State certifies that such funds will 
     be used by such country primarily for counternarcotics 
     activities: Provided further, That funds made available under 
     this heading may be used, notwithstanding any other provision 
     of law, for demining activities, and may include activities 
     implemented through nongovernmental and international 
     organizations: Provided further, That not more than 
     $100,000,000 of the funds made available under this heading 
     shall be available for use in financing the procurement of 
     defense articles, defense services, or design and 
     construction services that are not sold by the United States 
     Government under the Arms Export Control Act to countries 
     other than Israel and Egypt: Provided further, That only 
     those countries for which assistance was justified for the 
     ``Foreign Military Sales Financing Program'' in the fiscal 
     year 1989 congressional presentation for security assistance 
     programs may utilize funds made available under this heading 
     for procurement of defense articles, defense services or 
     design and construction services that are not sold by the 
     United States Government under the Arms Export Control Act: 
     Provided further, That, subject to the regular notification 
     procedures of the Committees on Appropriations, funds made 
     available under this heading for the cost of direct loans may 
     also be used to supplement the funds available under this 
     heading for grants, and funds made available under this 
     heading for grants may also be used to supplement the funds 
     available under this heading for the cost of direct loans: 
     Provided further, That funds appropriated under this heading 
     shall be expended at the minimum rate necessary to make 
     timely payment for defense articles and services: Provided 
     further, That the Department of Defense shall conduct during 
     the current fiscal year nonreimbursable audits of private 
     firms whose contracts are made directly with foreign 
     governments and are financed with funds made available under 
     this heading (as well as subcontractors thereunder) as 
     requested by the Defense Security Assistance Agency: Provided 
     further, That not more than [$24,000,000] $22,500,000 of the 
     funds appropriated under this heading may be obligated for 
     necessary expenses, including the purchase of passenger motor 
     vehicles for replacement only for use outside of the United 
     States, for the general costs of administering military 
     assistance and sales: Provided further, That not more than 
     $355,000,000 of funds realized pursuant to section 
     21(e)(1)(A) of the Arms Export Control Act may be obligated 
     for expenses incurred by the Department of Defense during 
     fiscal year 1996 pursuant to section 43(b) of the Arms Export 
     Control Act, except that this limitation may be exceeded only 
     through the regular notification procedures of the Committees 
     on Appropriations.
                        peacekeeping operations

       For necessary expenses to carry out the provisions of 
     section 551 of the Foreign Assistance Act of 1961, 
     [$68,300,000] $72,033,000: Provided, That none of the funds 
     appropriated under this paragraph shall be obligated or 
     expended except as provided through the regular notification 
     procedures of the Committees on Appropriations.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE


                  funds appropriated to the president

                  International Financial Institutions


     contribution to the International bank for reconstruction and 
                              development

       For payment to the International Bank for Reconstruction 
     and Development by the Secretary of the Treasury, for the 
     United States share of the paid-in share portion of the 
     increases in capital stock for the General Capital Increase, 
     [$23,009,000] $28,189,963, to remain available until 
     expended.
       For payment to the International Bank for Reconstruction 
     and Development by the Secretary of the Treasury, for the 
     United States contribution to the Global Environment Facility 
     (GEF), [$30,000,000] $50,000,000, to remain available until 
     September 30, 1997.
              limitation on callable capital subscriptions

       The United States Governor of the International Bank for 
     Reconstruction and Development may subscribe without fiscal 
     year limitation to the callable capital portion of the United 
     States share of increases in capital stock in an amount not 
     to exceed [$743,900,000] $911,475,013.
       contribution to the international development association

       For payment to the International Development Association by 
     the Secretary of the Treasury, [$575,000,000] $775,000,000, 
     for the United States contribution to the tenth 
     replenishment, to remain available until expended.
         contribution to the international finance corporation

       For payment to the International Finance Corporation by the 
     Secretary of the Treasury, $67,550,000, for the United States 
     share of the increase in subscriptions to capital stock, to 
     remain available until expended: Provided, That of the amount 
     appropriated under this heading not more than $5,269,000 may 
     be expended for the purchase of such stock in fiscal year 
     1996.
          contribution to the inter-american development bank

       For payment to the Inter-American Development Bank by the 
     Secretary  of  the Treasury, for the United States share of 
     the paid-in share portion of the increase in capital stock, 
     [$25,950,000] $25,952,110, and for the United States share of 
     the increase in the resources of the Fund for Special 
     Operations, $20,000,000, to remain available until expended.


              limitation on callable capital subscriptions

       The United States Governor of the Inter-American 
     Development Bank may subscribe without fiscal year limitation 
     to the callable capital portion of the United States share of 
     such capital stock in an amount not to exceed 
     [$1,523,000,000] $1,523,767,142.
contribution to the enterprise for the americas multilateral investment 
                                  fund

       For payment to the Enterprise for the Americas Multilateral 
     Investment Fund by the Secretary of the Treasury, for the 
     United States contribution to the Fund to be administered by 
     the Inter-American Development Bank, $70,000,000 to remain 
     available until expended.
               contribution to the asian development bank

       For payment to the Asian Development Bank by the Secretary 
     of the Treasury for the United States share of the paid-in 
     portion of the increase in capital stock, [$13,200,000] 
     $13,221,596, to remain available until expended.


              limitation on callable capital subscriptions

       The United States Governor of the Asian Development Bank 
     may subscribe without fiscal year limitation to the callable 
     capital portion of the United States share of such capital 
     stock in an amount not to exceed [$647,000,000] $647,858,204.


               contribution to the asian development fund

       For the United States contribution by the Secretary of the 
     Treasury to the increases in resources of the Asian 
     Development Fund,  as  authorized  by  the  Asian  
     Development  Bank  Act,  as amended (Public Law 89-369), 
     [$100,000,000] $110,000,000, to remain available until 
     expended.


  contribution to the european bank for reconstruction and development

       For payment to the European Bank for Reconstruction and 
     Development by the Secretary of the Treasury, [$69,180,000] 
     $70,000,000, for the United States share of the paid-in share 
     portion of the initial capital subscription, to remain 
     available until expended: Provided, That of the amount 
     appropriated under this heading not more than $54,600,000 may 
     be expended for the purchase of such stock in fiscal year 
     1996.
              limitation on callable capital subscriptions

       The United States Governor of the European Bank for 
     Reconstruction and Development may subscribe without fiscal 
     year limitation to the callable capital portion of the United 
     States share of such capital stock in an amount not to exceed 
     [$161,400,000] $163,333,333.
                    [North American Development Bank

       [For payment to the North American Development Bank by the 
     Secretary of the Treasury, for the United States share of the 
     paid-in portion of the capital stock, $56,250,000, to remain 
     available until expended.


             [limitation on callable capital subscriptions

       [The United States Governor of the North American 
     Development Bank may subscribe without fiscal year limitation 
     to the callable capital portion of the United States share of 
     the capital stock of the North American Development Bank in 
     an amount not to exceed $318,750,000.]

[[Page S 13891]]



                international organizations and programs

       For necessary expenses to carry out the provisions of 
     section 301 of the Foreign Assistance Act of 1961, and of 
     section 2 of the United Nations Environment Program 
     Participation Act of 1973, [$155,000,000] $260,000,000: 
     Provided, That none of the funds appropriated under this 
     heading shall be made available for the United Nations Fund 
     for Science and Technology: Provided further, That funds 
     appropriated under this heading may be made available for the 
     International Atomic Energy Agency only if the Secretary of 
     State determines (and so reports to the Congress) that Israel 
     is not being denied its right to participate in the 
     activities of that Agency: Provided further, That any 
     reduction in the amounts made available under this heading 
     for each of the United Nations Development Program, the 
     United Nations Children's Fund, the United Nations 
     Environment Program, and the International Atomic Energy 
     Agency, from the amounts made available under this heading 
     for such organizations for fiscal year 1995, shall not exceed 
     the percentage by which the total amount appropriated under 
     this heading is reduced from the total amount appropriated 
     under this heading for fiscal year 1995: Provided further, 
     That none of the funds appropriated under this heading that 
     are made available to the United Nations Population Fund 
     (UNFPA) shall be made available for activities in the 
     People's Republic of China: Provided further, That not more 
     than [$25,000,000] $35,000,000 of the funds appropriated 
     under this heading may be made available to the UNFPA: 
     Provided further, That not more than one-half of this amount 
     may be provided to UNFPA before March 1, 1996, and that no 
     later than February 15, 1996, the Secretary of State shall 
     submit a report to the Committees on Appropriations 
     indicating the amount UNFPA is budgeting for the People's 
     Republic of China in 1996: Provided further, That any amount 
     UNFPA plans to spend in the People's Republic of China in 
     1996 above $7,000,000, shall be deducted from the amount of 
     funds provided to UNFPA after March 1, 1996 pursuant to the 
     previous provisos: Provided further, That with respect to any 
     funds appropriated under this heading that are made available 
     to UNFPA, UNFPA shall be required to maintain such funds in a 
     separate account and not commingle them with any other 
     funds[: Provided further, That up to $13,000,000 may be made 
     available to the Korean Peninsula Energy Development 
     Organization (KEDO) for administrative expenses and heavy 
     fuel oil costs associated with the Framework Agreement: 
     Provided further, That additional funds may be made available 
     to KEDO subject to the regular notification procedures of the 
     Committees on Appropriations].

                      TITLE V--GENERAL PROVISIONS


             obligations during last month of availability

       Sec. 501. Except for the appropriations entitled 
     ``International Disaster Assistance'', and ``United States 
     Emergency Refugee and Migration Assistance Fund'', not more 
     than 15 per centum of any appropriation item made available 
     by this Act shall be obligated during the last month of 
     availability.


     prohibition of bilateral funding for international financial 
                              institutions

       Sec. 502. None of the funds contained in title II of this 
     Act may be used to carry out the provisions of section 209(d) 
     of the Foreign Assistance Act of 1961.


                    limitation on residence expenses

       Sec. 503. Of the funds appropriated or made available 
     pursuant to this Act, not to exceed $126,500 shall be for 
     official residence expenses of the Agency for International 
     Development during the current fiscal year: Provided, That 
     appropriate steps shall be taken to assure that, to the 
     maximum extent possible, United States-owned foreign 
     currencies are utilized in lieu of dollars.


                         limitation on expenses

       Sec. 504. Of the funds appropriated or made available 
     pursuant to this Act, [not to exceed $5,000] no funds shall 
     be for entertainment expenses of the Agency for International 
     Development during the current fiscal year.


               limitation on representational allowances

       Sec. 505. Of the funds appropriated or made available 
     pursuant to this Act, not to exceed $95,000 shall be 
     available for representation allowances for the Agency for 
     International Development during the current fiscal year: 
     Provided, That appropriate steps shall be taken to assure 
     that, to the maximum extent possible, United States-owned 
     foreign currencies are utilized in lieu of dollars: Provided 
     further, That of the funds made available by this Act for 
     general costs of administering military assistance and sales 
     under the heading ``Foreign Military Financing Program'', 
     [not to exceed $2,000] no funds shall be available for 
     entertainment expenses and not to exceed $50,000 shall be 
     available for representation allowances: Provided further, 
     That of the funds made available by this Act under the 
     heading ``International Military Education and Training'', 
     not to exceed $50,000 shall be available for entertainment 
     allowances: Provided further, That of the funds made 
     available by this Act for the Inter-American Foundation, no 
     funds shall be available for entertainment and not to exceed 
     $2,000 shall be available for [entertainment and] 
     representation allowances: Provided further, That of the 
     funds made available by this Act for the Peace Corps, [not to 
     exceed a total of $4,000] no funds shall be available for 
     entertainment expenses: Provided further, That of the funds 
     made available by this Act under the heading ``Trade and 
     Development Agency'', no funds shall be available for 
     entertainment and not to exceed $2,000 shall be available for 
     representation [and entertainment] allowances.


                 prohibition on financing nuclear goods

       Sec. 506. None of the funds appropriated or made available 
     (other than funds for ``International Organizations and 
     Programs'') pursuant to this Act, for carrying out the 
     Foreign Assistance Act of 1961, may be used, except for 
     purposes of nuclear safety, to finance the export of nuclear 
     equipment, fuel, or technology.


        prohibition against direct funding for certain countries

       Sec. 507. None of the funds appropriated or otherwise made 
     available pursuant to this Act shall be obligated or expended 
     to finance directly any assistance or reparations to Cuba, 
     Iraq, Libya, North Korea, Iran, Serbia, Sudan, or Syria: 
     Provided, That for purposes of this section, the prohibition 
     on obligations or expenditures shall include direct loans, 
     credits, insurance and guarantees of the Export-Import Bank 
     or its agents.


                             military coups

       Sec. 508. None of the funds appropriated or otherwise made 
     available pursuant to this Act shall be obligated or expended 
     to finance directly any assistance to any country whose duly 
     elected Head of Government is deposed by military coup or 
     decree: Provided, That assistance may be resumed to such 
     country if the President determines and reports to the 
     Committees on Appropriations that subsequent to the 
     termination of assistance a democratically elected government 
     has taken office.


                       TRANSFERS BETWEEN ACCOUNTS

       Sec. 509. None of the funds made available by this Act may 
     be obligated under an appropriation account to which they 
     were not appropriated, except for transfers specifically 
     provided for in this Act, unless the President, prior to the 
     exercise of any authority contained in the Foreign Assistance 
     Act of 1961 to transfer funds, consults with and provides a 
     written policy justification to the Committees on 
     Appropriations of the House of Representatives and the 
     Senate: Provided, That the exercise of such authority shall 
     be subject to the regular notification procedures of the 
     Committees on Appropriations, except for transfers 
     specifically referred to in this Act.


                  DEOBLIGATION/REOBLIGATION AUTHORITY

       Sec. 510. (a) Amounts certified pursuant to section 1311 of 
     the Supplemental Appropriations Act, 1955, as having been 
     obligated against appropriations heretofore made under the 
     authority of the Foreign Assistance Act of 1961 for the same 
     general purpose as any of the headings under title II of this 
     Act are, if deobligated, hereby continued available for the 
     same period as the respective appropriations under such 
     headings or until September 30, 1996, whichever is later, and 
     for the same general purpose, and for countries within the 
     same region as originally obligated: Provided, That the 
     Appropriations Committees of both Houses of the Congress are 
     notified fifteen days in advance of the deobligation and 
     reobligation of such funds in accordance with regular 
     notification procedures of the Committees on Appropriations.
       (b) Obligated balances of funds appropriated to carry out 
     section 23 of the Arms Export Control Act as of the end of 
     the fiscal year immediately preceding the current fiscal year 
     are, if deobligated, hereby continued available during the 
     current fiscal year for the same purpose under any authority 
     applicable to such appropriations under this Act: Provided, 
     That the authority of this subsection may not be used in 
     fiscal year 1996.
                         AVAILABILITY OF FUNDS

       Sec. 511. No part of any appropriation contained in this 
     Act shall remain available for obligation after the 
     expiration of the current fiscal year unless expressly so 
     provided in this Act: Provided, That funds appropriated for 
     the purposes of chapters 1, 8 and 11 of part I, section 667, 
     and chapter 4 of part II of the Foreign Assistance Act of 
     1961, as amended, and funds provided under the heading 
     ``Assistance for Eastern Europe and the Baltic States'', 
     shall remain available until expended if such funds are 
     initially obligated before the expiration of their respective 
     periods of availability contained in this Act: Provided 
     further, That, notwithstanding any other provision of this 
     Act, any funds made available for the purposes of chapter 1 
     of part I and chapter 4 of part II of the Foreign Assistance 
     Act of 1961 which are allocated or obligated for cash 
     disbursements in order to address balance of payments or 
     economic policy reform objectives, shall remain available 
     until expended: Provided further, That the report required by 
     section 653(a) of the Foreign Assistance Act of 1961 shall 
     designate for each country, to the extent known at the time 
     of submission of such report, those funds allocated for cash 
     disbursement for balance of payment and economic policy 
     reform purposes.


            LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT

       Sec. 512. No part of any appropriation contained in this 
     Act shall be used to furnish assistance to any country which 
     is in default during a period in excess of one calendar year 
     in payment to the United States of 

[[Page S 13892]]
     principal or interest on any loan made to such country by the United 
     States pursuant to a program for which funds are appropriated 
     under this Act: Provided, That this section and section 
     620(q) of the Foreign Assistance Act of 1961 shall not apply 
     to funds made available in this Act or during the current 
     fiscal year for Nicaragua, and for any narcotics-related 
     assistance for Colombia, Bolivia, and Peru authorized by the 
     Foreign Assistance Act of 1961 or the Arms Export Control 
     Act.


                           COMMERCE AND TRADE

       Sec. 513. (a) None of the funds appropriated or made 
     available pursuant to this Act for direct assistance and none 
     of the funds otherwise made available pursuant to this Act to 
     the Export-Import Bank and the Overseas Private Investment 
     Corporation shall be obligated or expended to finance any 
     loan, any assistance or any other financial commitments for 
     establishing or expanding production of any commodity for 
     export by any country other than the United States, if the 
     commodity is likely to be in surplus on world markets at the 
     time the resulting productive capacity is expected to become 
     operative and if the assistance will cause substantial injury 
     to United States producers of the same, similar, or competing 
     commodity: Provided, That such prohibition shall not apply to 
     the Export-Import Bank if in the judgment of its Board of 
     Directors the benefits to industry and employment in the 
     United States are likely to outweigh the injury to United 
     States producers of the same, similar, or competing 
     commodity, and the Chairman of the Board so notifies the 
     Committees on Appropriations.
       (b) None of the funds appropriated by this or any other Act 
     to carry out chapter 1 of part I of the Foreign Assistance 
     Act of 1961 shall be available for any testing or breeding 
     feasibility study, variety improvement or introduction, 
     consultancy, publication, conference, or training in 
     connection with the growth or production in a foreign country 
     of an agricultural commodity for export which would compete 
     with a similar commodity grown or produced in the United 
     States: Provided, That this subsection shall not prohibit--
       (1) activities designed to increase food security in 
     developing countries where such activities will not have a 
     significant impact in the export of agricultural commodities 
     of the United States; or
       (2) research activities intended primarily to benefit 
     American producers.
                          SURPLUS COMMODITIES

       Sec. 514. The Secretary of the Treasury shall instruct the 
     United States Executive Directors of the International Bank 
     for Reconstruction and Development, the International 
     Development Association, the International Finance 
     Corporation, the Inter-American Development Bank, the 
     International Monetary Fund, the Asian Development Bank, the 
     Inter-American Investment Corporation, the North American 
     Development Bank, the European Bank for Reconstruction and 
     Development, the African Development Bank, and the African 
     Development Fund to use the voice and vote of the United 
     States to oppose any assistance by these institutions, using 
     funds appropriated or made available pursuant to this Act, 
     for the production or extraction of any commodity or mineral 
     for export, if it is in surplus on world markets and if the 
     assistance will cause substantial injury to United States 
     producers of the same, similar, or competing commodity.


                       notification requirements

       Sec. 515. For the purposes of providing the Executive 
     Branch with the necessary administrative flexibility, none of 
     the funds made available under this Act for [``Child Survival 
     and Disease Programs Fund'', ``Development Assistance Fund'', 
     ``Development Fund for Africa'',] ``Economic Assistance'', 
     ``International organizations and programs'', ``Trade and 
     Development Agency'', ``International narcotics control'', 
     ``Assistance for Eastern Europe and the Baltic States'', 
     ``Assistance for the New Independent States of the Former 
     Soviet Union'', [``Economic Support Fund'',] ``Peacekeeping 
     operations'', ``Operating expenses of the Agency for 
     International Development'', ``Operating expenses of the 
     Agency for International Development Office of Inspector 
     General'', ``Nonproliferation and Disarmament Fund'', ``Anti-
     terrorism assistance'', ``Foreign Military Financing 
     Program'', ``International military education and training'', 
     [``Inter-American Foundation'', ``African Development 
     Foundation'',] ``Peace Corps'', ``Middle East Fund'' or 
     ``Migration and refugee assistance'', [or ``United States 
     Emergency Refugee and Migration Assistance Fund'',] shall be 
     available for obligation for activities, programs, projects, 
     type of materiel assistance, countries, or other operations 
     not justified or in excess of the amount justified to the 
     Appropriations Committees for obligation under any of these 
     specific headings unless the Appropriations Committees of 
     both Houses of Congress are previously notified fifteen days 
     in advance: Provided, That the President shall not enter into 
     any commitment of funds appropriated for the purposes of 
     section 23 of the Arms Export Control Act for the provision 
     of major defense equipment, other than conventional 
     ammunition, or other major defense items defined to be 
     aircraft, ships, missiles, or combat vehicles, not previously 
     justified to Congress or 20 per centum in excess of the 
     quantities justified to Congress unless the Committees on 
     Appropriations are notified fifteen days in advance of such 
     commitment: Provided further, That this section shall not 
     apply to any reprogramming for an activity, program, or 
     project under chapter 1 of part I of the Foreign Assistance 
     Act of 1961 of less than [20] 10 per centum of the amount 
     previously justified to the Congress for obligation for such 
     activity, program, or project for the current fiscal year: 
     Provided further, That the requirements of this section or 
     any similar provision of this Act or any prior Act requiring 
     notification in accordance with the regular notification 
     procedures of the Committees on Appropriations may be waived 
     if failure to do so would pose a substantial risk to human 
     health or welfare: Provided further, That in case of any such 
     waiver, notification to the Congress, or the appropriate 
     congressional committees, shall be provided as early as 
     practicable, but in no event later than three days after 
     taking the action to which such notification requirement was 
     applicable, in the context of the circumstances necessitating 
     such waiver: Provided further, That any notification provided 
     pursuant to such a waiver shall contain an explanation of the 
     emergency circumstances.
       Drawdowns made pursuant to section 506(a)(2) of the Foreign 
     Assistance Act of 1961 shall be subject to the regular 
     notification procedures of the Committees on Appropriations.


limitation on availability of funds for international organizations and 
                                programs

       Sec. 516. Notwithstanding any other provision of law or of 
     this Act, none of the funds provided for ``International 
     Organizations and Programs'' shall be available for the 
     United States proportionate share, in accordance with section 
     307(c) of the Foreign Assistance Act of 1961, for any 
     programs identified in section 307, or for Libya, Iran, or, 
     at the discretion of the President, Communist countries 
     listed in section 620(f) of the Foreign Assistance Act of 
     1961, as amended: Provided, That, subject to the regular 
     notification procedures of the Committees on Appropriations, 
     funds appropriated under this Act or any previously enacted 
     Act making appropriations for foreign operations, export 
     financing, and related programs, which are returned or not 
     made available for organizations and programs because of the 
     implementation of this section or any similar provision of 
     law, shall remain available for obligation through September 
     30, 1997.
             economic [support fund] assistance for israel

       Sec. 517. The Congress finds that progress on the peace 
     process in the Middle East is vitally important to United 
     States security interests in the region. The Congress 
     recognizes that, in fulfilling its obligations under the 
     Treaty of Peace Between the Arab Republic of Egypt and the 
     State of Israel, done at Washington on March 26, 1979, Israel 
     incurred severe economic burdens. Furthermore, the Congress 
     recognizes that an economically and militarily secure Israel 
     serves the security interests of the United States, for a 
     secure Israel is an Israel which has the incentive and 
     confidence to continue pursuing the peace process. Therefore, 
     the Congress declares that, subject to the availability of 
     appropriations, it is the policy and the intention of the 
     United States that the funds provided in annual 
     appropriations for [the Economic Support Fund] economic 
     assistance which are allocated to Israel shall not be less 
     than the annual debt repayment (interest and principal) from 
     Israel to the United States Government in recognition that 
     such a principle serves United States interests in the 
     region.
    prohibition [concerning abortions] on funding for abortions and 
                       involuntary sterilization

       Sec. 518. None of the funds made available to carry out 
     part I of the Foreign Assistance Act of 1961, as amended, may 
     be used to pay for the performance of abortions as a method 
     of family planning or to motivate or coerce any person to 
     practice abortions. None of the funds made available to carry 
     out part I of the Foreign Assistance Act of 1961, as amended, 
     may be used to pay for the performance of involuntary 
     sterilization as a method of family planning or to coerce or 
     provide any financial incentive to any person to undergo 
     sterilizations. None of the funds made available to carry out 
     part I of the Foreign Assistance Act of 1961, as amended, may 
     be used to pay for any biomedical research which relates in 
     whole or in part, to methods of, or the performance of, 
     abortions or involuntary sterilization as a means of family 
     planning. None of the funds made available to carry out part 
     I of the Foreign Assistance Act of 1961, as amended, may be 
     obligated or expended for any country or organization if the 
     President certifies that the use of these funds by any such 
     country or organization would violate any of the above 
     provisions related to abortions and involuntary 
     sterilizations: Provided, That in determining eligibility for 
     assistance from funds appropriated to carry out section 104 
     of the Foreign Assistance Act of 1961, nongovernmental and 
     multilateral organizations shall not be subjected to 
     requirements more restrictive than the requirements 
     applicable to foreign governments for such assistance: 
     Provided further, That none of the funds made available under 
     this Act may be used to lobby for or against abortion.
                         reporting requirement

       Sec. 519. The President shall submit to the Committees on 
     Appropriations the reports 

[[Page S 13893]]
     required by section 25(a)(1) of the Arms Export Control Act.


                   special notification requirements

       Sec. 520. None of the funds appropriated in this Act shall 
     be obligated or expended for Colombia, Dominican Republic, 
     Guatemala, Haiti, [Indonesia,] Liberia, Nicaragua, Pakistan, 
     Peru, [Russia,] Sudan, or Zaire except as provided through 
     the regular notification procedures of the Committees on 
     Appropriations: Provided, That this section shall not apply 
     to funds appropriated by this Act to carry out the provisions 
     of chapter 1 of part I of the Foreign Assistance Act of 1961 
     that are made available for [Indonesia and] Nicaragua.
              DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

       Sec. 521. For the purpose of this Act, ``program, project, 
     and activity'' shall be defined at the Appropriations Act 
     account level and shall include all Appropriations and 
     Authorizations Acts earmarks, ceilings, and limitations with 
     the exception that for the following accounts: Economic 
     Support Fund and Foreign Military Financing Program, 
     ``program, project, and activity'' shall also be considered 
     to include country, regional, and central program level 
     funding within each such account; for the development 
     assistance accounts of the Agency for International 
     Development ``program, project, and activity'' shall also be 
     considered to include central program level funding, either 
     as (1) justified to the Congress, or (2) allocated by the 
     executive branch in accordance with a report, to be provided 
     to the Committees on Appropriations within thirty days of 
     enactment of this Act, as required by section 653(a) of the 
     Foreign Assistance Act of 1961.

          family planning, child survival and aids activities

       Sec. 522. Up to $8,000,000 of the funds made available by 
     this Act for assistance for family planning, health, child 
     survival, and AIDS, may be used to reimburse United States 
     Government agencies, agencies of State governments, 
     institutions of higher learning, and private and voluntary 
     organizations for the full cost of individuals (including for 
     the personal services of such individuals) detailed or 
     assigned to, or contracted by, as the case may be, the Agency 
     for International Development for the purpose of carrying out 
     family planning activities, child survival activities and 
     activities relating to research on, and the treatment and 
     control of, acquired immune deficiency syndrome in developing 
     countries: Provided, That funds appropriated by this Act that 
     are made available for child survival activities or 
     activities relating to research on, and the treatment and 
     control of, acquired immune deficiency syndrome may be made 
     available notwithstanding any provision of law that restricts 
     assistance to foreign countries: Provided further, That funds 
     appropriated by this Act that are made available for family 
     planning activities may be made available notwithstanding 
     section 512 of this Act and section 620(q) of the Foreign 
     Assistance Act of 1961.


       prohibition against indirect funding to certain countries

       Sec. 523. None of the funds appropriated or otherwise made 
     available pursuant to this Act shall be obligated to finance 
     indirectly any assistance or reparations to Cuba, Iraq, 
     Libya, Iran, Syria, North Korea, or the People's Republic of 
     China, unless the President of the United States certifies 
     that the withholding of these funds is contrary to the 
     national security interest of the United States.


                           RECIPROCAL LEASING

       Sec. 524. Section 61(a) of the Arms Export Control Act is 
     amended by striking out ``1995'' and inserting in lieu 
     thereof ``1996''.


                NOTIFICATION ON EXCESS DEFENSE EQUIPMENT

       Sec. 525. Prior to providing excess Department of Defense 
     articles in accordance with section 516(a) of the Foreign 
     Assistance Act of 1961, the Department of Defense shall 
     notify the Committees on Appropriations to the same extent 
     and under the same conditions as are other committees 
     pursuant to subsection (c) of that section: Provided, That 
     before issuing a letter of offer to sell excess defense 
     articles under the Arms Export Control Act, the Department of 
     Defense shall notify the Committees on Appropriations in 
     accordance with the regular notification procedures of such 
     Committees: Provided further, That such Committees shall also 
     be informed of the original acquisition cost of such defense 
     articles.


                       authorization requirement

       Sec. 526. Funds appropriated by this Act may be obligated 
     and expended [subject to] notwithstanding section 10 of 
     Public Law 91-672 and section 15 of the State Department 
     Basic Authorities Act of 1956.
   opposition to assistance to terrorist countries by international 
                         financial institutions

       Sec. 527. (a) Instructions for United States Executive 
     Directors.--The Secretary of the Treasury shall instruct the 
     United States Executive Director of each international 
     financial institution designated in subsection (b), and the 
     Administrator of the Agency for International Development 
     shall instruct the United States Executive Director of the 
     International Fund for Agriculture Development, to use the 
     voice and vote of the United States to oppose any loan or 
     other use of the funds of the respective institution to or 
     for a country for which the Secretary of State has made a 
     determination under section 6(j) of the Export Administration 
     Act of 1979.
       (b) Definition.--For purposes of this section, the term 
     ``international financial institution'' includes--
       (1) the International Bank for Reconstruction and 
     Development, the International Development Association, and 
     the International Monetary Fund; and
       (2) wherever applicable, the Inter-American Development 
     Bank, the Asian Development Bank, the African Development 
     Bank, the African Development Fund, and the European Bank for 
     Reconstruction and Development.
       Prohibition on Bilateral Assistance to Terrorist Countries

       Sec. 527A. (a) Notwithstanding any other provision of law, 
     funds appropriated for bilateral assistance under any heading 
     of this Act and funds appropriated under any such heading in 
     a provision of law enacted prior to enactment of this Act, 
     shall not be made available to any country which the 
     President determines--
       (1) grants sanctuary from prosecution to any individual or 
     group which has committed an act of international terrorism, 
     or
       (2) otherwise supports international terrorism.
       (b) The President may waive the application of subsection 
     (a) to a country if the President determines that national 
     security or humanitarian reasons justify such waiver. The 
     President shall publish each waiver in the Federal Register 
     and, at least fifteen days before the waiver takes effect, 
     shall notify the Committees on Appropriations of the waiver 
     (including the justification for the waiver) in accordance 
     with the regular notification procedures of the Committees on 
     Appropriations.
                 commercial leasing of defense articles

       Sec. 528. Notwithstanding any other provision of law, and 
     subject to the regular notification requirements of the 
     Committees on Appropriations, the authority of section 23(a) 
     of the Arms Export Control Act may be used to provide 
     financing to [Israel and] Israel, Egypt and NATO and major 
     non-NATO allies for the procurement by leasing (including 
     leasing with an option to purchase) of defense articles from 
     United States commercial suppliers, not including Major 
     Defense Equipment (other than helicopters and other types of 
     aircraft having possible civilian application), if the 
     President determines that there are compelling foreign policy 
     or national security reasons for those defense articles being 
     provided by commercial lease rather than by government-to-
     government sale under such Act.
                         competitive insurance

       Sec. 528A. All Agency for International Development 
     contracts and solicitations, and subcontracts entered into 
     under such contracts, shall include a clause requiring that 
     United States insurance companies have a fair opportunity to 
     bid for insurance when such insurance is necessary or 
     appropriate.
                  [stingers in the persian gulf region

       [Sec. 529. Except as provided in section 581 of the Foreign 
     Operations, Export Financing, and Related Programs 
     Appropriations Act, 1990, the United States may not sell or 
     otherwise make available any Stingers to any country 
     bordering the Persian Gulf under the Arms Export Control Act 
     or chapter 2 of part II of the Foreign Assistance Act of 
     1961.]
                          debt-for-development

       Sec. 530. In order to enhance the continued participation 
     of nongovernmental organizations in economic assistance 
     activities under the Foreign Assistance Act of 1961, 
     including endowments, debt-for-development and debt-for-
     nature exchanges, a nongovernmental organization which is a 
     grantee or contractor of the Agency for International 
     Development may place in interest bearing accounts funds made 
     available under this Act or prior Acts or local currencies 
     which accrue to that organization as a result of economic 
     assistance provided under title II of this Act and any 
     interest earned on such investment may be used for the 
     purpose for which the assistance was provided to that 
     organization.
                        [location of stockpiles

       [Sec. 531. Section 514(b)(2) of the Foreign Assistance Act 
     of 1961 is amended by striking out ``a total of $200,000,000 
     for stockpiles in Israel for fiscal years 1994 and 1995, up 
     to $40,000,000 may be made available for stockpiles in the 
     Republic of Korea, and up to $10,000,000 may be made 
     available for stockpiles in Thailand for fiscal year 1995.'' 
     and inserting in lieu thereof ``$200,000,000 for stockpiles 
     in Israel, $40,000,000 for stockpiles in the Republic of 
     Korea and $10,000,000 for stockpiles in Thailand for fiscal 
     year 1996''.]
           competitive pricing for sales of defense articles

       Sec. 531A. (a) Costing Basis.--Section 22 of the Arms 
     Export Control Act (22 U.S.C. 2762) is amended by adding at 
     the end the following:
       ``(d) Competitive Pricing.--Procurement contracts made in 
     implementation of sales under this section for defense 
     articles and defense services wholly paid for funds made 
     available on a nonrepayable basis shall be priced on the same 
     costing basis with regard to profit, overhead, independent 
     research and development, bid and proposal, and other costing 
     elements, as is applicable to procurements of like items 
     purchased by the Department of Defense for its own use.''
       (b) Effective Date and Implementing Regulations.--Section 
     22(d) of the Arms Export Control Act, as added by subsection 
     (a)--
       (1) shall take effect on the 60th day following the date of 
     the enactment of this Act;

[[Page S 13894]]

       (2) shall be applicable only to contracts made in 
     implementation of sales made after such effective date; and
       (3) shall be implemented by revised procurement 
     regulations, which shall be issued prior to such effective 
     date.


                     stockpiles of defense articles

       Sec. 531B. (a) Limitation on Value of Additions.--Section 
     514(b)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2321h(b)(1)) is amended by inserting ``or in the 
     implementation of agreements with Israel'' after ``North 
     Atlantic Treaty Organization''.
       (b) Additions in Fiscal Years 1996 and 1997.--Section 
     514(b)(2) of such Act (22 U.S.C. 2321h(b)(2)) is amended to 
     read as follows:
       ``(2)(A) The value of such additions to stockpiles of 
     defense articles in foreign countries shall not exceed 
     $50,000,000 for each of the fiscal years 1996 and 1997.
       ``(B) Of the amount specified in subparagraph (A) for each 
     of the fiscal years 1996 and 1997, not more than $40,000,000 
     may be made available for stockpiles in the Republic of Korea 
     and not more than $10,000,000 may be made available for 
     stockpiles in Thailand.''.
       (c) Location of Stockpiles of Defense Authorities.--Section 
     514(c) of such Act (22 U.S.C. 2321h(c)) is amended to read as 
     follows:
       ``(c) Location of Stockpiles of Defense Articles.--
       ``(1) Limitation.--Except as provided in paragraph (2), no 
     stockpile of defense articles may be located outside the 
     boundaries of a United States military base or a military 
     base used primarily by the United States.
       ``(2) Exceptions.--Paragraph (1) shall not apply with 
     respect to stockpiles of defense articles located in the 
     Republic of Korea, Thailand, any country that is a member of 
     the North Atlantic Treaty Organization, any country that is a 
     major non-NATO ally, or any other country the President may 
     designate. At least 15 days before designating a country 
     pursuant to the last clause of the preceding sentence, the 
     President shall notify the congressional committees specified 
     in section 634A(a) in accordance with the procedures 
     applicable to reprogramming notifications under that 
     section.''.
                           separate accounts

       Sec. 532. (a) Separate Accounts for Local Currencies.--(1) 
     If assistance is furnished to the government of a foreign 
     country under chapters 1 and 10 of part I or chapter 4 of 
     part II of the Foreign Assistance Act of 1961 under 
     agreements which result in the generation of local currencies 
     of that country, the Administrator of the Agency for 
     International Development shall--
       (A) require that local currencies be deposited in a 
     separate account established by that government;
       (B) enter into an agreement with that government which sets 
     forth--
       (i) the amount of the local currencies to be generated, and
       (ii) the terms and conditions under which the currencies so 
     deposited may be utilized, consistent with this section; and
       (C) establish by agreement with that government the 
     responsibilities of the Agency for International Development 
     and that government to monitor and account for deposits into 
     and disbursements from the separate account.
       (2) Uses of Local Currencies.--As may be agreed upon with 
     the foreign government, local currencies deposited in a 
     separate account pursuant to subsection (a), or an equivalent 
     amount of local currencies, shall be used only--
       (A) to carry out chapters 1 or 10 of part I or chapter 4 of 
     part II (as the case may be), for such purposes as--
       (i) project and sector assistance activities, or
       (ii) debt and deficit financing; or
       (B) for the administrative requirements of the United 
     States Government.
       (3) Programming Accountability.--The Agency for 
     International Development shall take all appropriate steps to 
     ensure that the equivalent of the local currencies disbursed 
     pursuant to subsection (a)(2)(A) from the separate account 
     established pursuant to subsection (a)(1) are used for the 
     purposes agreed upon pursuant to subsection (a)(2).
       (4) Termination of Assistance Programs.--Upon termination 
     of assistance to a country under chapters 1 or 10 of part I 
     or chapter 4 of part II (as the case may be), any 
     unencumbered balances of funds which remain in a separate 
     account established pursuant to subsection (a) shall be 
     disposed of for such purposes as may be agreed to by the 
     government of that country and the United States Government.
       (5) Conforming Amendments.--The provisions of this 
     subsection shall supersede the tenth and eleventh provisos 
     contained under the heading ``Sub-Saharan Africa, Development 
     Assistance'' as included in the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 1989 and 
     sections 531(d) and 609 of the Foreign Assistance Act of 
     1961.
       (b) Separate Accounts for Cash Transfers.--(1) If 
     assistance is made available to the government of a foreign 
     country, under chapters 1 or 10 of part I or chapter 4 of 
     part II of the Foreign Assistance Act of 1961, as cash 
     transfer assistance or as nonproject sector assistance, that 
     country shall be required to maintain such funds in a 
     separate account and not commingle them with any other funds.
       (2) Applicability of Other Provisions of Law.--Such funds 
     may be obligated and expended notwithstanding provisions of 
     law which are inconsistent with the nature of this assistance 
     including provisions which are referenced in the Joint 
     Explanatory Statement of the Committee of Conference 
     accompanying House Joint Resolution 648 (H. Report No. 98-
     1159).
       (3) Notification.--At least fifteen days prior to 
     obligating any such cash transfer or nonproject sector 
     assistance, the President shall submit a notification through 
     the regular notification procedures of the Committees on 
     Appropriations, which shall include a detailed description of 
     how the funds proposed to be made available will be used, 
     with a discussion of the United States interests that will be 
     served by the assistance (including, as appropriate, a 
     description of the economic policy reforms that will be 
     promoted by such assistance).
       (4) Exemption.--Nonproject sector assistance funds may be 
     exempt from the requirements of subsection (b)(1) only 
     through the notification procedures of the Committees on 
     Appropriations.


  compensation for united states executive directors to international 
                         financial institutions

       Sec. 533. (a) No funds appropriated by this Act may be made 
     as payment to any international financial institution while 
     the United States Executive Director to such institution is 
     compensated by the institution at a rate which, together with 
     whatever compensation such Director receives from the United 
     States, is in excess of the rate provided for an individual 
     occupying a position at level IV of the Executive Schedule 
     under section 5315 of title 5, United States Code, or while 
     any alternate United States Director to such institution is 
     compensated by the institution at a rate in excess of the 
     rate provided for an individual occupying a position at level 
     V of the Executive Schedule under section 5316 of title 5, 
     United States Code.
       (b) For purposes of this section, ``international financial 
     institutions'' are: the International Bank for Reconstruction 
     and Development, the Inter-American Development Bank, the 
     Asian Development Bank, the Asian Development Fund, the 
     African Development Bank, the African Development Fund, the 
     International Monetary Fund, the North American Development 
     Bank, and the European Bank for Reconstruction and 
     Development.


         compliance with united nations sanctions against iraq

       Sec. 534. [(a) Denial of Assistance.--] None of the funds 
     appropriated or otherwise made available pursuant to this Act 
     to carry out the Foreign Assistance Act of 1961 (including 
     title IV of chapter 2 of part I, relating to the Overseas 
     Private Investment Corporation) or the Arms Export Control 
     Act may be used to provide assistance to any country that is 
     not in compliance with the United Nations Security Council 
     sanctions against Iraq, Serbia or Montenegro unless the 
     President determines and so certifies to the Congress that--
       (1) such assistance is in the national interest of the 
     United States;
       (2) such assistance will directly benefit the needy people 
     in that country; or
       (3) the assistance to be provided will be humanitarian 
     assistance for foreign nationals who have fled Iraq and 
     Kuwait.
       [(b) Import Sanctions.--If the President considers that the 
     taking of such action would promote the effectiveness of the 
     economic sanctions of the United Nations and the United 
     States imposed with respect to Iraq, Serbia, or Montenegro, 
     as the case may be and is consistent with the national 
     interest, the President may prohibit, for such a period of 
     time as he considers appropriate, the importation into the 
     United States of any or all products of any foreign country 
     that has not prohibited--
       [(1) the importation of products of Iraq, Serbia, or 
     Montenegro into its customs territory, and
       [(2) the export of its products to Iraq, Serbia, or 
     Montenegro, as the case may be.]
                       pow/mia military drawdown

       Sec. 535. (a) Notwithstanding any other provision of law, 
     the President may direct the drawdown, without reimbursement 
     by the recipient, of defense articles from the stocks of the 
     Department of Defense, defense services of the Department of 
     Defense, and military education and training, of an aggregate 
     value not to exceed $15,000,000 in fiscal year 1996, as may 
     be necessary to carry out subsection (b).
       (b) Such defense articles, services and training may be 
     provided to Vietnam, Cambodia and Laos, under subsection (a) 
     as the President determines are necessary to support efforts 
     to locate and repatriate members of the United States Armed 
     Forces and civilians employed directly or indirectly by the 
     United States Government who remain unaccounted for from the 
     Vietnam War, and to ensure the safety of United States 
     Government personnel engaged in such cooperative efforts and 
     to support United States Department of Defense-sponsored 
     humanitarian projects associated with the POW/MIA efforts. 
     Any aircraft shall be provided under this section only to 
     Laos and only on a lease or loan basis, but may be provided 
     at no cost notwithstanding section 61 of the Arms Export 
     Control Act and may be maintained with defense articles, 
     services and training provided under this section.
       (c) The President shall, within sixty days of the end of 
     any fiscal year in which the authority of subsection (a) is 
     exercised, submit a report to the Congress which identifies 
     the articles, services, and training drawn down under this 
     section.
       (d) There are authorized to be appropriated to the 
     President such sums as may be necessary to 

[[Page S 13895]]
     reimburse the applicable appropriation, fund, or account for defense 
     articles, defense services, and military education and 
     training provided under this section.
                 mediterranean excess defense articles

       Sec. 536. During fiscal year 1996, the provisions of 
     section 573(e) of the Foreign Operations, Export Financing, 
     and Related Programs Appropriations Act, 1990, shall be 
     applicable, for the period specified therein, to excess 
     defense articles made available under sections 516 and 519 of 
     the Foreign Assistance Act of 1961.
                     priority delivery of equipment

       Sec. 536A. Notwithstanding any other provision of law, the 
     delivery of excess defense articles that are to be 
     transferred on a grant basis under section 516 of the Foreign 
     Assistance Act to NATO allies and to major non-NATO allies on 
     the southern and southeastern flank of NATO shall be given 
     priority to the maximum extent feasible over the delivery of 
     such excess defense articles to other countries.
                          cash flow financing

       Sec. 537. For each country that has been approved for cash 
     flow financing (as defined in section 25(d) of the Arms 
     Export Control Act, as added by section 112(b) of Public Law 
     99-83) under the Foreign Military Financing Program, any 
     Letter of Offer and Acceptance or other purchase agreement, 
     or any amendment thereto, for a procurement in excess of 
     $100,000,000 that is to be financed in whole or in part with 
     funds made available under this Act shall be submitted 
     through the regular notification procedures to the Committees 
     on Appropriations.


authorities for the peace corps, the inter-american foundation and the 
                     african development foundation

       Sec. 538. Unless expressly provided to the contrary, 
     provisions of this or any other Act, including provisions 
     contained in prior Acts authorizing or making appropriations 
     for foreign operations, export financing, and related 
     programs, shall not be construed to prohibit activities 
     authorized by or conducted under the Peace Corps Act, the 
     Inter-American Foundation Act, or the African Development 
     Foundation Act. The appropriate agency shall promptly report 
     to the Committees on Appropriations whenever it is conducting 
     activities or is proposing to conduct activities in a country 
     for which assistance is prohibited.


                  impact on jobs in the United States

       Sec. 539. None of the funds appropriated by this Act may be 
     obligated or expended to provide--
       (a) any financial incentive to a business enterprise 
     currently located in the United States for the purpose of 
     inducing such an enterprise to relocate outside the United 
     States if such incentive or inducement is likely to reduce 
     the number of employees of such business enterprise in the 
     United States because United States production is being 
     replaced by such enterprise outside the United States;
       (b) 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
       (c) assistance for any project or activity that contributes 
     to the violation of internationally recognized workers 
     rights, as defined in section 502(a)(4) of the Trade Act of 
     1974, of workers in the recipient country, including any 
     designated zone or area in that country: Provided, That in 
     recognition that the application of this subsection should be 
     commensurate with the level of development of the recipient 
     country and sector, the provisions of this subsection shall 
     not preclude assistance for the informal sector in such 
     country, micro and small-scale enterprise, and smallholder 
     agriculture.


                 authority to assist bosnia-hercegovina

       Sec. 540. (a) Congress finds as follows:
       (1) The United Nations has imposed an embargo on the 
     transfer of arms to any country on the territory of the 
     former Yugoslavia.
       (2) The federated states of Serbia and Montenegro have a 
     large supply of military equipment and ammunition and the 
     Serbian forces fighting the government of Bosnia-Hercegovina 
     have more than one thousand battle tanks, armored vehicles, 
     and artillery pieces.
       (3) Because the United Nations arms embargo is serving to 
     sustain the military advantage of the aggressor, the United 
     Nations should exempt the government of Bosnia-Hercegovina 
     from its embargo.
       (b) Pursuant to a lifting of the United Nations arms 
     embargo, or to a unilateral lifting of the arms embargo by 
     the President of the United States, against Bosnia-
     Hercegovina, the President is authorized to transfer, subject 
     to prior notification of the Committees on Appropriations, to 
     the government of that nation, without reimbursement, defense 
     articles from the stocks of the Department of Defense and 
     defense services of the Department of Defense of an aggregate 
     value not to exceed $50,000,000 in fiscal year 1996: 
     Provided, That the President certifies in a timely fashion to 
     the Congress that the transfer of such articles would assist 
     that nation in self-defense and thereby promote the security 
     and stability of the region.
       (c) Within 60 days of any transfer under the authority 
     provided in subsection (b), and every 60 days thereafter, the 
     President shall report in writing to the Speaker of the House 
     of Representatives and the President pro tempore of the 
     Senate concerning the articles transferred and the 
     disposition thereof.
       (d) There are authorized to be appropriated to the 
     President such sums as may be necessary to reimburse the 
     applicable appropriation, fund, or account for defense 
     articles provided under this section.
    RESTRICTIONS ON THE TERMINATION OF SANCTIONS AGAINST SERBIA AND 
                               MONTENEGRO

       Sec. 540A. (a) Restrictions.--Notwithstanding any other 
     provision of law, no sanction, prohibition, or requirement 
     described in section 1511 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160), 
     with respect to Serbia or Montenegro, may cease to be 
     effective, unless--
       (1) the President first submits to the Congress a 
     certification described in subsection (b); and
       (2) the requirements of section 1511 of that Act are met.
       (b) Certification.--A certification described in this 
     subsection is a certification that--
       (1) there is substantial progress toward--
       (A) the realization of a separate identity for Kosova and 
     the right of the people of Kosova to govern themselves; or
       (B) the creation of an international protectorate for 
     Kosova;
       (2) there is substantial improvement in the human rights 
     situation in Kosova;
       (3) international human rights observers are allowed to 
     return to Kosova; and
       (4) the elected government of Kosova is permitted to meet 
     and carry out its legitimate mandate as elected 
     representatives of the people of Kosova.
       (c) Expanded Authority.--Section 660(b) of the Foreign 
     Assistance Act of 1961 is amended--
       (1) in paragraph (3), by striking ``or'';
       (2) in paragraph (4), by striking the period at the end 
     thereof and inserting ``; or''; and
       (3) adding the following new paragraph:
     ``(5) with respect to assistance, including training, 
     relating to sanctions monitoring and enforcement.''.
                          special authorities

       Sec. 541. (a) Funds appropriated in title II of this Act 
     that are made available for [Haiti,] Afghanistan, Lebanon, 
     and Cambodia, and for victims of war, displaced children, 
     [displaced Burmese,] humanitarian assistance for Romania, and 
     humanitarian assistance for the peoples of Bosnia-
     Hercegovina, Croatia, and Kosova, may be made available 
     notwithstanding any other provision of law: Provided, That 
     any such funds that are made available for Cambodia shall be 
     subject to the provisions of section 531(e) of the Foreign 
     Assistance Act of 1961 and section 906 of the International 
     Security and Development Cooperation Act of 1985: Provided 
     further, That the President shall terminate assistance to any 
     country or organization that he determines is cooperating, 
     [tactically or strategically, with the Khmer Rouge in their 
     military operations] tactically or strategically, with the 
     Khmer Rouge in their military operations, or which is 
     cooperating commercially with the Khmer Rouge.
       (b) Funds appropriated by this Act to carry out the 
     provisions of sections 103 through 106 of the Foreign 
     Assistance Act of 1961 may be used, notwithstanding any other 
     provision of law, for the purpose of supporting tropical 
     forestry and energy programs aimed at reducing emissions of 
     greenhouse gases, and for the purpose of supporting 
     biodiversity conservation activities: Provided, That such 
     assistance shall be subject to sections 116, 502B, and 620A 
     of the Foreign Assistance Act of 1961.
       (c) During fiscal year 1996, the President may use up to 
     $40,000,000 under the authority of section 451 of the Foreign 
     Assistance Act of 1961, notwithstanding the funding ceiling 
     contained in subsection (a) of that section.
       (d) The Agency for International Development may employ 
     personal services contractors, notwithstanding any other 
     provision of law, for the purpose of administering programs 
     for the West Bank and Gaza.


        policy on terminating the arab league boycott of israel

       Sec. 542. It is the sense of the Congress that--
       (1) the Arab League countries should immediately and 
     publicly renounce the primary boycott of Israel and the 
     secondary and tertiary boycott of American firms that have 
     commercial ties with Israel; and
       (2) the President should--
       (A) take more concrete steps to encourage vigorously Arab 
     League countries to renounce publicly the primary boycotts of 
     Israel and the secondary and tertiary boycotts of American 
     firms that have commercial relations with Israel as a 
     confidence-building measure;
       (B) take into consideration the participation of any 
     recipient country in the primary boycott of Israel and the 
     secondary and tertiary boycotts of American firms that have 
     commercial relations with Israel when determining whether to 
     sell weapons to said country;
       (C) report to Congress on the specific steps being taken by 
     the President to bring about a public renunciation of the 
     Arab primary boycott of Israel and the secondary and tertiary 
     boycotts of American firms that have commercial relations 
     with Israel; and
       (D) encourage the allies and trading partners of the United 
     States to enact laws prohibiting businesses from complying 
     with the boycott and penalizing businesses that do comply.
     
[[Page S 13896]]



                       ANTI-NARCOTICS ACTIVITIES

       Sec. 543. (a) Of the funds appropriated [or otherwise made 
     available by this Act for ``Economic Support Fund'',] under 
     the heading ``Economic Assistance'', assistance may be 
     provided to strengthen the administration of justice in 
     countries in Latin America and the Caribbean in accordance 
     with the provisions of section 534 of the Foreign Assistance 
     Act of 1961, except that programs to enhance protection of 
     participants in judicial cases may be conducted 
     notwithstanding section 660 of that Act.
       (b) Funds made available pursuant to this section may be 
     made available notwithstanding the third sentence of section 
     534(e) of the Foreign Assistance Act of 1961. Funds made 
     available pursuant to subsection (a) for Bolivia, Colombia 
     and Peru may be made available notwithstanding section 534(c) 
     and the second sentence of section 534(e) of the Foreign 
     Assistance Act of 1961.
                       ELIGIBILITY FOR ASSISTANCE

       Sec. 544. (a) Assistance Through Nongovernmental 
     Organizations.--Restrictions contained in this or any other 
     Act with respect to assistance for a country shall not be 
     construed to restrict assistance in support of programs of 
     nongovernmental organizations from funds appropriated by this 
     Act to carry out the provisions of chapters 1 and 10 of part 
     I of the Foreign Assistance Act of 1961: Provided, That the 
     President shall take into consideration, in any case in which 
     a restriction on assistance would be applicable but for this 
     subsection, whether assistance in support of programs of 
     nongovernmental organizations is in the national interest of 
     the United States: Provided further, That before using the 
     authority of this subsection to furnish assistance in support 
     of programs of nongovernmental organizations, the President 
     shall notify the Committees on Appropriations under the 
     regular notification procedures of those committees, 
     including a description of the program to be assisted, the 
     assistance to be provided, and the reasons for furnishing 
     such assistance: Provided further, That nothing in this 
     subsection shall be construed to alter any existing statutory 
     prohibitions against abortion or involuntary sterilizations 
     contained in this or any other Act.
       (b) Public Law 480.--During fiscal year 1996, restrictions 
     contained in this or any other Act with respect to assistance 
     for a country shall not be construed to restrict assistance 
     under titles I and II of the Agricultural Trade Development 
     and Assistance Act of 1954: Provided, That none of the funds 
     appropriated to carry out title I of such Act and made 
     available pursuant to this subsection may be obligated or 
     expended except as provided through the regular notification 
     procedures of the Committees on Appropriations.
       (c) Exception.--This section shall not apply--
       (1) with respect to section 620A of the Foreign Assistance 
     Act or any comparable provision of law prohibiting assistance 
     to countries that support international terrorism; or
       (2) with respect to section 116 of the Foreign Assistance 
     Act of 1961 or any comparable provision of law prohibiting 
     assistance to countries that violate internationally 
     recognized human rights.
                                earmarks

       Sec. 544A. (a) Funds appropriated by this Act which are 
     earmarked may be reprogrammed for other programs within the 
     same account notwithstanding the earmark if compliance with 
     the earmark is made impossible by operation of any provision 
     of this or any other Act or, with respect to a country with 
     which the United States has an agreement providing the United 
     States with base rights or base access in that country, if 
     the President determines that the recipient for which funds 
     are earmarked has significantly reduced its military or 
     economic cooperation with the United States since enactment 
     of the Foreign Operations, Export Financing, and Related 
     Programs Appropriations Act, 1991; however, before exercising 
     the authority of this subsection with regard to a base rights 
     or base access country which has significantly reduced its 
     military or economic cooperation with the United States, the 
     President shall consult with, and shall provide a written 
     policy justification to the Committees on Appropriations: 
     Provided, That any such reprogramming shall be subject to the 
     regular notification procedures of the Committees on 
     Appropriations: Provided further, That assistance that is 
     reprogrammed pursuant to this subsection shall be made 
     available under the same terms and conditions as originally 
     provided.
       (b) In addition to the authority contained in subsection 
     (a), the original period of availability of funds 
     appropriated by this Act and administered by the Agency for 
     International Development that are earmarked for particular 
     programs or activities by this or any other Act shall be 
     extended for an additional fiscal year if the Administrator 
     of such agency determines and reports promptly to the 
     Committees on Appropriations that the termination of 
     assistance to a country or a significant change in 
     circumstances makes it unlikely that such earmarked funds can 
     be obligated during the original period of availability: 
     Provided, That such earmarked funds that are continued 
     available for an additional fiscal year shall be obligated 
     only for the purpose of such earmark.
                         ceilings and earmarks

       Sec. 545. Ceilings and earmarks contained in this Act shall 
     not be applicable to funds or authorities appropriated or 
     otherwise made available by any subsequent Act unless such 
     Act specifically so directs.


                        EXCESS DEFENSE ARTICLES

       Sec. 546. (a) The authority of section 519 of the Foreign 
     Assistance Act of 1961, as amended, may be used in fiscal 
     year 1996 to provide nonlethal excess defense articles to 
     countries for which United States foreign assistance has been 
     requested and for which receipt of such articles was 
     separately justified for the fiscal year, without regard to 
     the restrictions in subsection (a) of section 519.
       (b) The authority of section 516 of the Foreign Assistance 
     Act of 1961, as amended, may be used in fiscal year 1996 to 
     provide defense articles to Jordan[, except that the 
     provision of such defense articles shall be subject to 
     section 534 of this Act].


                 prohibition on publicity or propaganda

       Sec. 547. No part of any appropriation contained in this 
     Act shall be used for publicity or propaganda purposes within 
     the United States not authorized before the date of enactment 
     of this Act by the Congress[: Provided, That none of the 
     funds appropriated by this Act may be made available to carry 
     out the provisions of section 316 of Public Law 96-533].
                       use of american resources

       Sec. 548. To the maximum extent possible, assistance 
     provided under this Act should make full use of American 
     resources, including commodities, products, and services.
           prohibition of payments to united nations members

       Sec. 549. None of the funds appropriated or made available 
     pursuant to this Act for carrying out the Foreign Assistance 
     Act of 1961, may be used to pay in whole or in part any 
     assessments, arrearages, or dues of any member of the United 
     Nations.


                          consulting services

       Sec. 550. The expenditure of any appropriation under this 
     Act for any consulting service through procurement contract, 
     pursuant to section 3109 of title 5, United States Code, 
     shall be limited to those contracts where such expenditures 
     are a matter of public record and available for public 
     inspection, except where otherwise provided under existing 
     law, or under existing Executive order pursuant to existing 
     law.


             private voluntary organizations--documentation

       Sec. 551. None of the funds appropriated or made available 
     pursuant to this Act shall be available to a private 
     voluntary organization which fails to provide upon timely 
     request any document, file, or record necessary to the 
     auditing requirements of the Agency for International 
     Development.
  PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS THAT EXPORT LETHAL 
   MILITARY EQUIPMENT TO COUNTRIES SUPPORTING INTERNATIONAL TERRORISM

       Sec. 552. (a) None of the funds appropriated or otherwise 
     made available by this Act may be available to any foreign 
     government which provides lethal military equipment to a 
     country the government of which the Secretary of State has 
     determined is a terrorist government for purposes of section 
     40(d) of the Arms Export Control Act. The prohibition under 
     this section with respect to a foreign government shall 
     terminate 12 months after that government ceases to provide 
     such military equipment. This section applies with respect to 
     lethal military equipment provided under a contract entered 
     into after the date of enactment of this Act.
       (b) Assistance restricted by subsection (a) or any other 
     similar provision of law, may be furnished if the President 
     determines that furnishing such assistance is important to 
     the national interests of the United States.
       (c) Whenever the waiver of subsection (b) is exercised, the 
     President shall submit to the appropriate congressional 
     committees a report with respect to the furnishing of such 
     assistance. Any such report shall include a detailed 
     explanation of the assistance to be provided, including the 
     estimated dollar amount of such assistance, and an 
     explanation of how the assistance furthers United States 
     national interests.


 withholding of assistance for parking fines owed by foreign countries

       Sec. 553. (a) In General.--Of the funds made available for 
     a foreign country under part I of the Foreign Assistance Act 
     of 1961, an amount equivalent to 110 percent of the total 
     unpaid fully adjudicated parking fines and penalties owed to 
     the District of Columbia by such country as of the date of 
     enactment of this Act shall be withheld from obligation for 
     such country until the Secretary of State certifies and 
     reports in writing to the appropriate congressional 
     committees that such fines and penalties are fully paid to 
     the government of the District of Columbia.
       (b) Definition.--For purposes of this section, the term 
     ``appropriate congressional committees'' means the Committee 
     on Foreign Relations and the Committee on Appropriations of 
     the Senate and the Committee on International Relations and 
     the Committee on Appropriations of the House of 
     Representatives.


    limitation on assistance for the plo for the west bank and gaza

       Sec. 554. None of the funds appropriated by this Act may be 
     obligated for assistance for the Palestine Liberation 
     Organization for the West Bank and Gaza unless the President 
     has exercised the authority under section 583(a) of the 
     Middle East Peace Facilitation Act of 1994 (part E of title V 
     of Public Law 103-236) or any other legislation to suspend 

[[Page S 13897]]
     or make inapplicable section 307 of the Foreign Assistance Act of 1961 
     and that suspension is still in effect: Provided, That if the 
     President fails to make the certification under section 
     583(b)(2) of the Middle East Peace Facilitation Act or to 
     suspend the prohibition under other legislation, funds 
     appropriated by this Act may not be obligated for assistance 
     for the Palestine Liberation Organization for the West Bank 
     and Gaza.
                 export financing transfer authorities

       Sec. 555. Not to exceed 5 percent of any appropriation 
     other than for administrative expenses made available for 
     fiscal year 1996 for programs under title [I] IV of this Act 
     may be transferred between such appropriations for use for 
     any of the purposes, programs and activities for which the 
     funds in such receiving account may be used, but no such 
     appropriation, except as otherwise specifically provided, 
     shall be increased by more than 25 percent by any such 
     transfer: Provided, That the exercise of such authority shall 
     be subject to the regular notification procedures of the 
     Committees on Appropriations.
                          war crimes tribunals

       Sec. 556. If the President determines that doing so will 
     contribute to a just resolution of charges regarding genocide 
     or other violations of international humanitarian law, the 
     authority of section 552(c) of the Foreign Assistance Act of 
     1961, as amended, may be used to provide up to $25,000,000 of 
     commodities and services to the United Nations War Crimes 
     Tribunal established with regard to the former Yugoslavia by 
     the United Nations Security Council or such other tribunals 
     or commissions as the Council may establish to deal with such 
     violations, without regard to the ceiling limitation 
     contained in paragraph (2) thereof: Provided, That the 
     determination required under this section shall be in lieu of 
     any determinations otherwise required under section 552(c):  
     Provided further, That 60 days after the date of enactment of 
     this Act, and every 180 days thereafter, the Secretary of 
     State shall submit a report to the Committees on 
     Appropriations describing the steps the United States 
     Government is taking to collect information regarding 
     allegations of genocide or other violations of international 
     law in the former Yugoslavia and to furnish that information 
     to the United Nations War Crimes Tribunal for the former 
     Yugoslavia.
                   nonlethal excess defense articles

       Sec. 557. Notwithstanding section 519(f) of the Foreign 
     Assistance Act of 1961, during fiscal year 1996, funds 
     available to the Department of Defense may be expended for 
     crating, packing, handling and transportation of nonlethal 
     excess defense articles transferred under the authority of 
     section 519 to countries eligible to participate in the 
     Partnership for Peace and to receive assistance under Public 
     Law 101-179.


                               landmines

       Sec. 558. Notwithstanding any other provision of law, 
     demining equipment available to any department or agency and 
     used in support of the clearing of landmines for humanitarian 
     purposes may be disposed of on a grant basis in foreign 
     countries, subject to such terms and conditions as the 
     President may prescribe: Provided, That section 1365(c) of 
     the National Defense Authorization Act for Fiscal Year 1993 
     (Public Law 102-484; 22 U.S.C., 2778 note) is amended by 
     striking out ``During the four-year period beginning on 
     October 23, 1992'' and inserting in lieu thereof ``During the 
     five-year period beginning on October 23, 1993''.
   [report on the salaries and benefits of the imf and the world bank

       [Sec. 559. The Comptroller General shall submit a report to 
     the Committees on Appropriations not later than November 1, 
     1995, on the following--
       [(1) a review of the existing salaries and benefits of 
     employees of the International Monetary Fund and the 
     International Bank for Reconstruction and Development; and
       [(2) a review of all benefits paid to dependents of Fund 
     and Bank employees.

     Such report shall include a comparison of the salaries and 
     benefits paid to employees and dependents of the Fund and the 
     Bank with salaries and benefits paid to employees holding 
     comparable positions in the public and private sectors in 
     member countries and in the international sector.]
           restrictions concerning the Palestinian authority

       Sec. 560. None of the funds appropriated by this Act may be 
     obligated or expended to create in any part of Jerusalem a 
     new office of any department or agency of the United States 
     Government for the purpose of conducting official United 
     States Government business with the Palestinian Authority 
     over Gaza and Jericho or any successor Palestinian governing 
     entity provided for in the Israel-PLO Declaration of 
     Principles: Provided, That this [subsection] restriction 
     shall not apply to the acquisition of additional space for 
     the existing Consulate General in Jerusalem: Provided 
     further, That meetings between officers and employees of the 
     United States and officials of the Palestinian Authority, or 
     any successor Palestinian governing entity provided for in 
     the Israel-PLO Declaration of Principles, for the purpose of 
     conducting official United States Government business with 
     such authority should continue to take place in locations 
     other than Jerusalem. As has been true in the past, officers 
     and employees of the United States Government may continue to 
     meet in Jerusalem on other subjects with Palestinians 
     (including those who now occupy positions in the Palestinian 
     Authority), have social contacts, and have incidental 
     discussions.


               prohibition of payment of certain expenses

       Sec. 561. None of the funds appropriated or otherwise made 
     available by this Act under the heading ``international 
     military education and training'' or ``foreign military 
     financing program'' for Informational Program activities may 
     be obligated or expended to pay for--
       (1) alcoholic beverages;
       (2) food (other than food provided at a military 
     installation) not provided in conjunction with Informational 
     Program trips where students do not stay at a military 
     installation; or
       (3) entertainment expenses for activities that are 
     substantially of a recreational character, including entrance 
     fees at sporting events and amusement parks.
 [limitation on assistance to countries that restrict the transport or 
           delivery of united states humanitarian assistance

       [Sec. 562. (a) In General.--None of the funds made 
     available in this Act may be used for assistance in support 
     of any country when it is made known to the President that 
     the government of such country prohibits or otherwise 
     restricts, directly or indirectly, the transport or delivery 
     of United States humanitarian assistance.
       [(b) Exception.--Subsection (a) shall not apply to 
     assistance in support of any country when it is made known to 
     the President that the assistance is in the national security 
     interest of the United States.]
                     non-overtime differential pay

       Sec. 562. Title 5 of the United States Code is amended by 
     inserting the following:
       (1) in section 5541(2)(xiv) after a ``Foreign Service 
     officer'' ``, except for a Foreign Service Officer who is a 
     criminal investigator for the Agency for International 
     Development, Office of Inspector General''.
                   [references to authorization acts

       [Sec. 563. The funds appropriated under the heading, 
     ``Child Survival and Disease Programs Fund'' are provided 
     pursuant to the Foreign Assistance Act, as amended: under 
     sections 103 through 106 (Development Assistance Fund), in 
     the amount of $214,000,000; under part I, chapter 10 
     (Development Fund for Africa), in the amount of $131,000,000; 
     under the provisions of section 498(6) (Assistance for the 
     New Independent States of the Former Soviet Union), in the 
     amount of $15,000,000; under the provisions of part I, 
     chapter 1, section 104(c) of the Foreign Assistance Act and 
     the Support for East European Democracy (SEED) Act of 1989, 
     in the amount of $1,000,000; under provisions of chapter 4, 
     part II (Economic Support Fund), in the amount of 
     $23,000,000; under the provisions of section 301, in the 
     amount of $100,000,000 as a contribution on a grant basis to 
     the United Nation's Children's Fund (UNICEF): Provided, That 
     funds derived from funds authorized under chapter 4, part II, 
     shall be made available for projects meeting criteria set 
     forth in part I section 104(c): Provided further, That funds 
     appropriated under the heading ``Child Survival and Disease 
     Programs Fund'' shall be in addition to amounts otherwise 
     available for such purposes.
                  [prohibition on funding for abortion

       [Sec. 564. (a) In General.--
       [(1) Notwithstanding any other provision of this Act or 
     other law, none of the funds appropriated by this Act for 
     population assistance activities may be made available for 
     any private, nongovernmental, or multilateral organization 
     until the organization certifies that it does not now, and 
     will not during the period for which the funds are made 
     available, directly or through a subcontractor or sub-
     grantee, perform abortions in any foreign country, except 
     where the life of the mother would be endangered if the fetus 
     were carried to term or in cases of forcible rape or incest.
       [(2) Paragraph (1) may not be construed to apply to the 
     treatment of injuries or illnesses caused by legal or illegal 
     abortions or to assistance provided directly to the 
     government of a country.
       [(b) Lobbying Activities.--
       [(1) Notwithstanding any other provision of this Act or 
     other law, none of the funds appropriated by this Act for 
     population assistance activities may be made available for 
     any private, nongovernmental, or multilateral organization 
     until the organization certifies that it does not now, and 
     will not during the period for which the funds are made 
     available, violate the laws of any foreign country concerning 
     the circumstances under which abortion is permitted, 
     regulated, or prohibited, or engage in any activity or effort 
     to alter the laws or governmental policies of any foreign 
     country concerning the circumstances under which abortion is 
     permitted, regulated, or prohibited.
       [(2) Paragraph (1) shall not apply to activities in 
     opposition to coercive abortion or involuntary sterilization.
       [(c) Coercive Population Control Methods.--Notwithstanding 
     any other provision of this Act or other law, none of the 
     funds appropriated by this Act may be made available for the 
     United Nations Population Fund (UNFPA), unless the President 
     certifies to the appropriate congressional committees that 
     (1) the United Nations Population Fund has terminated all 
     activities in the People's Republic of China; or (2) during 
     the 12 months preceding such certification, there have been 
     no abortions as the result of coercion associated with the 
     family planning 

[[Page S 13898]]
     policies of the national government or other governmental entities 
     within the People's Republic of China. As used in this 
     section the term ``coercion'' includes physical duress or 
     abuse, destruction or confiscation of property, loss of means 
     of livelihood, or severe psychological pressure.]
withholding of assistance to countries supporting nuclear plant in cuba

       Sec. 565. (a) Withholding.--The President shall withhold 
     from assistance made available with funds appropriated or 
     made available pursuant to this Act an amount equal to the 
     sum of assistance and credits, if any, provided on or after 
     the date of the enactment of this Act by that country, or any 
     entity in that country, in support of the completion of the 
     Cuban nuclear facility at Juragua, near Cienfuegos, Cuba.
       (b) Exceptions.--The requirement of subsection (a) to 
     withhold assistance shall not apply with respect to--
       (1) assistance to meet urgent humanitarian needs, including 
     disaster and refugee relief;
       (2) democratic political reform and rule of law activities;
       (3) the creation of private sector and nongovernmental 
     organizations that are independent of government control;
       (4) the development of a free market economic system; and
       (5) assistance for the purposes described in the 
     Cooperative Threat Reduction Act of 1993 (title XII of Public 
     Law 103-160).
       (c) Definition.--As used in subsection (a), the term 
     ``assistance'' means assistance under the Foreign Assistance 
     Act of 1961, credits, sales and guarantees of extensions of 
     credit under the Arms Export Control Act, assistance under 
     titles I and III of the Agricultural Trade Development and 
     Assistance Act of 1954, assistance under the FREEDOM Support 
     Act of 1992, and any other program of assistance or credits 
     provided by the United States to other countries under other 
     provisions of law, except that the term ``assistance'' does 
     not include humanitarian assistance, including disaster 
     relief assistance.
                     [limitation on funds for haiti

       [Sec. 566. Effective March 1, 1996, none of the funds 
     appropriated in this Act may be made available to the 
     Government of Haiti when it is made known to the President 
     that such Government is controlled by a regime holding power 
     through means other than the democratic elections scheduled 
     for calendar year 1995 and held in substantial compliance 
     with the requirements of the 1987 Constitution of Haiti.


           [purchase of american-made equipment and products

       [Sec. 567. 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 Federal 
     agency, to the greatest extent practicable, shall provide to 
     such entity a notice describing the statement made in 
     subsection (a) by the Congress.


                  [limitation on assistance to turkey

       [Sec. 568. Not more than $21,000,000 of the funds 
     appropriated in this Act under the heading ``Economic Support 
     Fund'' may be made available to the Government of Turkey.
        [limitation of funds for north american development bank

       [Sec. 569. No funds appropriated in this Act, under the 
     heading ``North American Development Bank'' may be obligated 
     or expended unless it is made known to the Federal entity or 
     official to which funds are appropriated under this Act that 
     the Government of Mexico has contributed a share of the paid-
     in portion of the capital stock for fiscal year 1996 
     equivalent to that appropriated by the United States.]
                     limitation on funds for burma

       Sec. 570. None of the funds made available in this Act may 
     be used for International Narcotics Control or Crop 
     Substitution Assistance for the Government of Burma.
                         asian development bank

       Sec. 570A. The Secretary of the Treasury may, to fulfill 
     commitments of the United States, subscribe to and make 
     payment for shares of the Asian Development Bank in 
     connection with the fourth general capital increase of the 
     Bank. The amount authorized to be appropriated for paid-in 
     shares of the Bank is limited to $66,614,647; the amount 
     authorized to be appropriated for payment for callable shares 
     of the Bank is limited to $3,264,178,021. The amount to be 
     paid in respect of each subscription is authorized to be 
     appropriated without fiscal year limitation. Any subscription 
     by the United States to the capital stock of the Bank shall 
     be effective only to such extent or in such amounts as are 
     provided in advance in appropriations Acts.


                  special debt relief for the poorest

       Sec. 570B. (a) Authority to Reduce Debt.--The President may 
     reduce amounts owed to the United States (or any agency of 
     the United States) by an eligible country as a result of--
       (1) guarantees issued under sections 221 and 222 of the 
     Foreign Assistance Act of 1961; or
       (2) credits extended or guarantees issued under the Arms 
     Export Control Act.
       (b) Limitations.--
       (1) The authority provided by subsection (a) may be 
     exercised only to implement multilateral official debt relief 
     and referendum agreements, commonly referred to as ``Paris 
     Club Agreed Minutes''.
       (2) The authority provided by subsection (a) may be 
     exercised only in such amounts or to such extent as is 
     provided in advance by appropriations Acts.
       (3) The authority provided by subsection (a) may be 
     exercised only with respect to countries with heavy debt 
     burdens that are eligible to borrow from the International 
     Development Association, but not from the International Bank 
     for Reconstruction and Development, commonly referred to as 
     ``IDA-only'' countries.
       (c) Conditions.--The authority provided by subsection (a) 
     may be exercised only with respect to a country whose 
     government--
       (1) does not have an excessive level of military 
     expenditures;
       (2) has not repeatedly provided support for acts of 
     international terrorism;
       (3) is not failing to cooperate on international narcotics 
     control matters;
       (4) (including its military or other security forces) does 
     not engage in a consistent pattern of gross violations of 
     internationally recognized human rights; and
       (5) is not ineligible for assistance because of the 
     application of section 527 of the Foreign Relations 
     Authorization Act, fiscal years 1994 and 1995.
       (d) Availability of Funds.--The authority provided by 
     subsection (a) may be used only with regard to funds 
     appropriated by this Act under the heading ``Debt 
     Restructuring''.
       (e) Certain Prohibitions Inapplicable.--A reduction of debt 
     pursuant to subsection (a) shall not be considered assistance 
     for purposes of any provision of law limiting assistance to a 
     country. The authority provided by subsection (a) may be 
     exercised notwithstanding section 620(r) of the Foreign 
     Assistance Act of 1961.
                    [limitation on funds for russia

       [Sec. 571. Of the funds appropriated in this Act under the 
     heading ``Assistance for the New Independent States of the 
     Former Soviet Union'', not more than $195,000,000 may be made 
     available for Russia.


                  [limitation on assistance to mexico

       [Sec. 572. In General.--None of the funds appropriated or 
     otherwise made available by this Act may be obligated or 
     expended for the Government of Mexico, except if it is made 
     known to the Federal entity or official to which funds are 
     appropriated under this Act that--
       [(1) the Government of Mexico is taking actions to reduce 
     the amount of illegal drugs entering the United States from 
     Mexico, as determined by the Director of the Office of 
     National Drug Control Policy; and
       [(2) the Government of Mexico--
       [(A) is taking effective actions to apply vigorously all 
     law enforcement resources to investigate, track, capture, 
     incarcerate, and prosecute illegal drug kingpins and their 
     accomplices, individuals responsible for, or otherwise 
     involved in, corruption, and individuals involved in money-
     laundering; and
       [(B) is pursuing international anti-drug trafficking 
     initiatives.


                   [human rights progress in ethiopia

       [Sec.  573. The Department of State should closely monitor 
     and take into account human rights progress in Ethiopia as it 
     obligates fiscal year 1996 funds for Ethiopia appropriated in 
     this Act.


                     [basic education for children

       [Sec.  574. Not more than $108,000,000 under the Agency for 
     International Development Children and Disease Programs Fund 
     may be used for basic education for children.]
            korean peninsula energy development Organization

       Sec. 575. No funds may be made available under this Act to 
     the Korean Peninsula Energy Development Organization (KEDO) 
     unless the President determines and certifies in writing to 
     the Committees on Appropriations that--
       (a) in accordance with Provision I of the Framework 
     Agreement, KEDO has concluded a supply contract with the 
     Democratic People's Republic of Korea (DPRK) designating a 
     Republic of Korea company, corporation or entity the prime 
     contractor to carry out construction of the light water 
     reactors provided for in the Framework Agreement; and
       (b) the DPRK has complied with the obligations of Provision 
     III of the Framework Agreement regarding North-South dialogue 
     including within three months after the enactment of this 
     Act: (1) eliminating North-South barriers to trade and 
     investment; (2) removing North-South restrictions on travel, 
     telecommunications services and financial transactions; and 
     (3) implementing the December 13, 1991, Nonaggression Pact 
     and the January 1, 1992, Joint Declaration for a Non-Nuclear 
     Korean Peninsula.
                     drawdown authority for jordan

       Sec. 576. During fiscal year 1996, the President may 
     direct, for the purposes of part II of the Foreign Assistance 
     Act of 1961, the drawdown for Jordan of defense articles from 
     the stocks of the Department of Defense, defense services of 
     the Department of Defense, and military education and 
     training of up to an aggregate of $100,000,000: Provided, 
     That--
       (a) within six months of the last drawdown under subsection 
     (a), the President shall submit a report to the Committee on 
     Appropriations identifying the articles, services, training 
     or education provided;
       (b) section 506(c) of the Foreign Assistance Act of 1961 
     shall apply to the drawdown authority in this section; and
       (c) section 632(d) of the Foreign Assistance Act of 1961 
     shall not apply with respect to drawdowns under this section.
          TITLE VI--MIDDLE EAST PEACE FACILITATION ACT OF 1995


                              short title

       Sec. 601. This title may be cited as the ``Middle East 
     Peace Facilitation Act of 1995''.
     
[[Page S 13899]]



                                findings

       Sec. 602. The Congress finds that--
       (1) the Palestine Liberation Organization (hereafter the 
     ``P.L.O.'') has recognized the State of Israel's right to 
     exist in peace and security; accepted United Nations Security 
     Council Resolutions 242 and 338; committed itself to the 
     peace process and peaceful coexistence with Israel, free from 
     violence and all other acts which endanger peace and 
     stability; and assumed responsibility over all P.L.O. 
     elements and personnel in order to assure their compliance, 
     prevent violations, and discipline violators;
       (2) Israel has recognized the P.L.O. as the representative 
     of the Palestinian people;
       (3) Israel and the P.L.O. signed a Declaration of 
     Principles on Interim Self-Government Arrangements (hereafter 
     the ``Declaration of Principles'') on September 13, 1993 at 
     the White House;
       (4) Israel and the P.L.O. signed an Agreement on the Gaza 
     Strip and the Jericho Area (hereafter the ``Gaza-Jericho 
     Agreement'') on May 4, 1994 which established a Palestinian 
     Authority for the Gaza and Jericho areas;
       (5) Israel and the P.L.O. signed an Agreement on 
     Preparatory Transfer of Powers and Responsibilities 
     (hereafter the ``Early Empowerment Agreement'') on August 29, 
     1994 which provided for the transfer to the Palestinian 
     Authority of certain powers and responsibilities in the West 
     Bank outside of the Jericho Area;
       (6) under the terms of the Declaration of Principles, the 
     Gaza-Jericho Agreement and the Early Empowerment Agreement, 
     the powers and responsibilities of the Palestinian Authority 
     are to be assumed by an elected Palestinian Council with 
     jurisdiction in the West Bank and Gaza Strip in accordance 
     with the Interim Agreement to be concluded between Israel and 
     the P.L.O.;
       (7) permanent status negotiations relating to the West Bank 
     and Gaza Strip are scheduled to begin by May 1996;
       (8) the Congress has, since the conclusion of the 
     Declaration of Principles and the P.L.O.'s renunciation of 
     terrorism, provided authorities to the President to suspend 
     certain statutory restrictions relating to the P.L.O., 
     subject to Presidential certifications that the P.L.O. has 
     continued to abide by commitments made in and in connection 
     with or resulting from the good faith implementation of, the 
     Declaration of Principles;
       (9) the P.L.O. commitments relevant to Presidential 
     certifications have included commitments to renounce and 
     condemn terrorism, to submit to the Palestinian National 
     Council for formal approval the necessary changes to those 
     articles of the Palestinian Covenant which call for Israel's 
     destruction, and to prevent acts of terrorism and hostilities 
     against Israel; and
       (10) the President, in exercising the aforementioned 
     authorities, has certified to the Congress on four occasions 
     that the P.L.O. was abiding by its relevant commitments.


                           sense of congress

       Sec. 603. It is the sense of the Congress that although the 
     P.L.O. has recently shown improvement in its efforts to 
     fulfill its commitments, it must do far more to demonstrate 
     an irrevocable denunciation of terrorism and ensure a 
     peaceful settlement of the Middle East dispute, and in 
     particular it must--
       (1) submit to the Palestine National Council for formal 
     approval the necessary changes to those articles of the 
     Palestinian National Covenant which call for Israel's 
     destruction;
       (2) make greater efforts to pre-empt acts of terror, to 
     discipline violators and to contribute to stemming the 
     violence that has resulted in the deaths of 123 Israeli 
     citizens since the signing of the Declaration of Principles;
       (3) prohibit participation in its activities and in the 
     Palestinian Authority and its successors by any groups or 
     individuals which continue to promote and commit acts of 
     terrorism;
       (4) cease all anti-Israel rhetoric, which potentially 
     undermines the peace process;
       (5) confiscate all unlicensed weapons and restrict the 
     issuance of licenses to those with legitimate need;
       (6) transfer and cooperate in transfer proceedings relating 
     to any person accused by Israel to acts of terrorism; and
       (7) respect civil liberties, human rights and democratic 
     norms.


                authority to suspend certain provisions

       Sec. 604. (a) In General.--Subject to subsection (b), 
     beginning on the date of enactment of this Act and for 
     eighteen months thereafter, the President may suspend for a 
     period of not more than 6 months at a time any provision of 
     law specified in subsection (d). Any such suspension shall 
     cease to be effective after 6 months, or at such earlier date 
     as the President may specify.
       (b) Conditions.--
       (1) Consultations.--Prior to each exercise of the authority 
     provided in subsection (a) or certification pursuant to 
     subsection (c), the President shall consult with the relevant 
     congressional committees. The President may not exercise that 
     authority or make such certification until 30 days after a 
     written policy justification is submitted to the relevant 
     congressional committees.
       (2) Presidential certification.--The President may exercise 
     the authority provided in subsection (a) only if the 
     President certifies to the relevant congressional committees 
     each time he exercises such authority that--
       (A) it is in the national interest of the United States to 
     exercise such authority;
       (B) the P.L.O. continues to comply with all the commitments 
     described in paragraph (4); and
       (C) funds provided pursuant to the exercise of this 
     authority and the authorities under section 583(a) of Public 
     Law 103-236 and section 3(a) of Public Law 103-125 have been 
     used for the purposes for which they were intended.
       (3) Requirement for continuing p.l.o. compliance.--
       (A) The President shall ensure that P.L.O. performance is 
     continuously monitored and if the President at any time 
     determines that the P.L.O. has not continued to comply with 
     all the commitments described in paragraph (4), he shall so 
     notify the relevant congressional committees and any 
     suspension under subsection (a) of a provision of law 
     specified in subsection (d) shall cease to be effective.
       (B) Beginning six months after the date of enactment of 
     this Act, if the President on the basis of the continuous 
     monitoring of the P.L.O.'s performance determines that the 
     P.L.O. is not complying with the requirements described in 
     subsection (c), he shall so notify the relevant congressional 
     committees and no assistance shall be provided pursuant to 
     the exercise by the President of the authority provided by 
     subsection (a) until such time as the President makes the 
     certification provided for in subsection (c).
       (4) P.L.O. commitments described.--The commitments referred 
     to in paragraphs (2) and (3)(A) are the commitments made by 
     the P.L.O.--
       (A) in its letter of September 9, 1993, to the Prime 
     Minister of Israel; in its letter of September 9, 1993, to 
     the Foreign Minister of Norway to--
       (i) recognize the right of the State of Israel to exist in 
     peace and security;
       (ii) accept United Nations Security Council Resolutions 242 
     and 338;
       (iii) renounce the use of terrorism and other acts of 
     violence;
       (iv) assume responsibility over all P.L.O. elements and 
     personnel in order to assure their compliance, prevent 
     violations and discipline violators;
       (v) call upon the Palestinian people in the West Bank and 
     Gaza Strip to take part in the steps leading to the 
     normalization of life, rejecting violence and terrorism, and 
     contributing to peace and stability; and
       (vi) submit to the Palestine National Council for formal 
     approval the necessary changes to the Palestnian National 
     Covenant eliminating calls for Israel's destruction, and
       (B) in, and resulting from, the good faith implementation 
     of the Declaration of Principles, including good faith 
     implementation of subsequent agreements with Israel, with 
     particular attention to the objective of preventing 
     terrorism, as reflected in the provisions of the Gaza-Jericho 
     Agreement concerning--
       (i) prevention of acts of terrorism and legal measures 
     against terrorists;
       (ii) abstention from and prevention of incitement, 
     including hostile propaganda;
       (iii) operation of armed forces other than the Palestinian 
     Police;
       (iv) possession, manufacture, sale, acquisition or 
     importation of weapons;
       (v) employment of police who have been convicted of serious 
     crimes or have been found to be actively involved in 
     terrorist activities subsequent to their employment;
       (vi) transfers to Israel of individuals suspected of, 
     charged with, or convicted of an offense that falls within 
     Israeli criminal jurisdiction;
       (vii) cooperation with the government of Israel in criminal 
     matters, including cooperation in the conduct of 
     investigations; and
       (viii) exercise of powers and responsibilities under the 
     agreement with due regard to internationally accepted norms 
     and principles of human rights and the rule of law.
       (5) Policy justification.--As part of the President's 
     written policy justification to be submitted to the relevant 
     Congressional Committees pursuant to paragraph (1), the 
     President will report on--
       (A) the manner in which the P.L.O. has complied with the 
     commitments specified in paragraph (4), including responses 
     to individual acts of terrorism and violence, actions to 
     discipline perpetrators of terror and violence, and actions 
     to preempt acts of terror and violence;
       (B) the extent to which the P.L.O. has fulfilled the 
     requirements specified in subsection (c);
       (C) actions that the P.L.O. has taken with regard to the 
     Arab League boycott of Israel;
       (D) the status and activities of the P.L.O. office in the 
     United States; and
       (E) the status of U.S. and international assistance efforts 
     in the areas subject to jurisdiction of the Palestinian 
     Authority or its successors.
       (c) Requirement for Continued Provision of Assistance.--Six 
     months after the enactment of this Act, no assistance shall 
     be provided pursuant to the exercise by the President of the 
     authority provided by subsection (a), unless and until the 
     President determines and so certifies to the Congress that--
       (1) if the Palestinian Council has been elected and assumed 
     its responsibilities, it has, within a reasonable time, 
     effectively disavowed the articles of the Palestine National 
     Covenant which call for Israel's destruction, unless the 
     necessary changes to the Covenant have already been submitted 
     to the Palestine National Council for formal approval;
       (2) the P.L.O. has exercised its authority resolutely to 
     establish the necessary enforcement institutions; including 
     laws, police, and a judicial system, for apprehending, 
     prosecuting, convicting, and imprisoning terrorists;
       (3) the P.L.O. has limited participation in the Palestinian 
     Authority and its successors to individuals and groups in 
     accordance with the terms that may be agreed with Israel;
       (4) the P.L.O. has not provided any financial or material 
     assistance or training to any group, whether or not 
     affiliated with the P.L.O., to carry out actions inconsistent 
     with the Declaration of Principles, particularly acts of 
     terrorism against Israel;
       (5) the P.L.O. has cooperated in good faith with Israeli 
     authorities in the preemption of acts 

[[Page S 13900]]
     of terrorism and in the apprehension and trial of perpetrators of 
     terrorist acts in Israel, territories controlled by Israel 
     and all areas subject to jurisdiction of the Palestinian 
     Authority and its successors; and
       (6) the P.L.O. has exercised its authority resolutely to 
     enact and implement laws requiring the disarming of civilians 
     not specifically licensed to possess or carry weapons.
       (d) Provisions That May Be Suspended.--The provisions that 
     may be suspended under the authority of subsection (a) are 
     the following:
       (1) Section 307 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2227) as it applies with respect to the P.L.O. or 
     entities associated with it.
       (2) Section 114 of the Department of State Authorization 
     Act, fiscal years 1984 and 1985 (22 U.S.C. 287e note) as it 
     applies with respect to the P.L.O. or entities associated 
     with it.
       (3) Section 1003 of the Foreign Relations Authorization 
     Act, fiscal years 1988 and 1989 (22 U.S.C. 5202).
       (4) Section 37 of the Bretton Woods Agreement Act (22 
     U.S.C. 286W) as it applies on the granting to the P.L.O. of 
     observer status or other official status at any meeting 
     sponsored by or associated with the International Monetary 
     Fund. As used in this paragraph, the term ``other official 
     status'' does not include membership in the International 
     Monetary Fund.
       (e) Relevant Congressional Committees Defined.--As used in 
     this title, the term ``relevant congressional committees'' 
     means--
       (1) the Committee on International Relations, the Committee 
     on Banking and Financial Services, and the Committee on 
     Appropriations of the House of Representatives; and
       (2) the Committee on Foreign Relations and the Committee on 
     Appropriations of the Senate.
       This Act may be cited as the ``Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 1996''.

  Mr. McCONNELL. Madam President, let me just say at the outset of our 
discussion on the foreign operations bill this year, it appears at 
least to this point, based on information we have prior to taking up 
the bill, that this may be the least contentious foreign operations 
bill we have had in recent years. Obviously, that could change as the 
floor debate unfolds, but I think there is certainly clear potential to 
finish up this bill either late tonight or tomorrow in accordance with 
what the Republican leader hopes which, of course, would give us a 
greater chance of being out of here for a week the week after next.
  In 1964, Henry Kissinger commented:

       To rely on the efficacy of diplomacy may lead to disaster 
     but to rely on power with insufficient means is suicide.

  Madam President, today we take up consideration of the appropriations 
bill for foreign operations, export financing, and related programs, a 
bill that provides the means to maintain our role as the sole remaining 
superpower. Despite Dr. Kissinger's caution, it is also the bill 
everyone loves to hate.
  Foreign operations, like every other subcommittee, has struggled to 
apportion the substantial reductions in discretionary spending imposed 
by the budget resolution process. Obviously, this is not an easy task, 
and foreign assistance should obviously not be spared the 
responsibility of making a contribution to balancing the budget.
  However, unlike other appropriations bills, foreign assistance has 
steadily declined over the past decade, at a time when both new threats 
and opportunities have emerged. To address these needs has been a 
challenge for, unlike other accounts, the administration of foreign 
assistance is the exclusive responsibility of the Federal Government. 
This is not something that can be handed off to the States through a 
block grant. In fact, I think it could safely be said that this is the 
diplomacy account, the nonmilitary way to engage with other countries 
around the world, and that is uniquely a responsibility of the Federal 
Government.
  The bill unanimously reported by the Appropriations Committee 
reflects a $2 billion reduction and is more than 16 percent below the 
President's request. The administration asked for $14.7 billion and the 
bill provides $12.3 billion. That is $2.3 billion out of roughly a $1.5 
trillion budget. We have tried to balance the distribution of the 
reduction as fairly and evenly as we possibly could while protecting 
and promoting priorities I think most of us share.
  It is clear foreign aid must be better connected to American 
interests or we will lose all public support and risk complete 
elimination of resources. Accordingly, we have emphasized those 
programs which directly serve our economic, security, political, and 
humanitarian interests. These range from continuing to support the 
peaceful transition to free market democracies in Central Europe and 
the NIS to expanding our international effort to combat crime and 
narcotics trafficking.
  Madam President, let me briefly summarize each of the titles of the 
bill to give everyone a sense of how aid can serve our interests.
  Title I funds export promotion activities. These programs have a 
direct--I repeat direct--impact on creating jobs and expanding export 
opportunities. They enjoy bipartisan support as well as the endorsement 
of a wide range of commercial and manufacturing interests including 
labor unions, Fortune 500 companies, and small businesses.
  It is no wonder since estimates provided from the private sector as 
well as the administration suggest that 300,000 jobs and 40 percent of 
our economic growth are linked to export activities.
  The committee has provided $795 million to the Export-Import Bank, 
slightly over the House and last year's level, but well below the needs 
as reflected in the request.
  We have fully funded the OPIC request. Credit reforms laws require 
the bill to indicate the amount of basic subsidy which funds OPIC 
activities. However, it is worth pointing out that while we subsidize 
OPIC, the corporation is completely self-sufficient. While we provide 
$79 million in subsidy, OPIC is expected to generate over $200 million 
this year which is returned to the Treasury.
  The third agency involved in export promotion is the Trade 
Development Agency which is funded at the House level of $40 million, a 
sizable cut from the request of $67 million. TDA's principal 
responsibility is conducting feasibility studies and while important, 
there is not as immediate and direct an impact on jobs and exports as 
with the sister agencies.
  One of the most important initiatives the subcommittee included in 
the treatment of economic assistance is the construction of title II. 
We have consolidated a number of development and economic accounts into 
a $2.1 billion account with very few earmarks. Traditional earmarks for 
the following programs have been eliminated: the Economic Support Fund, 
development assistance, the Development Fund for Africa, child 
survival, basic education, the Africa Development Foundation, the 
Inter-American Foundation, and the Ireland Fund.
  I am not suggesting that these activities will not be funded. All the 
necessary statutory authorities to conduct these programs are 
preserved. But, the bill gives the President the flexibility to make 
the decision on the levels and the administration of programs.
  My preference would have been to simply provide a sum for the 
President to allocate in accordance with emerging priorities. However, 
the ranking member, along with other members, expressed the concern 
that one account might bear the entire burden of the overall reduction.
  To accommodate this concern, we have included language that requires 
a proportional distribution of the reduction. This means that accounts 
such as development assistance and the Development Fund for Africa will 
be smaller than last year, but they will each have approximately the 
same share of overall resources available this year as they have in the 
past.
  Since this is not an absolute mathematical formula, some flexibility 
is maintained. And, so far, we have avoided the detailed 
micromanagement of specific activities which must be carried out within 
the broader accounts. We have avoided the inclination of past years to 
direct funding levels for community colleges, museums and other special 
interest projects.
  Obviously, the Senate can decide to divide up the economic assistance 
account affording no flexibility at all to the President. I am not 
opposed to considering earmarks or recommendations on spending 
priorities, but I would urge each Member to carefully consider the 
impact of beginning to further carve up this small pie.
  In addition to this broad category of economic aid, we have funded 
programs in the Middle East, Central Europe, and the NIS--regions I 
think most view as central to our security interests. We have fully 
funded the Camp David countries and included, once again, an earmark 
for resettling refugees in Israel.
  The bill provides $335 million to support programs in Central Europe 
and $705 million for the New Independent States. Within the NIS account 
I have 

[[Page S 13901]]
earmarked the following: $17.1 million for the FBI for law enforcement 
training and investigations.
 With 5,000 organized criminal enterprises expanding their activities 
into nuclear smuggling and areas of operations to our shores, our 
security interests compel an active role for the FBI in the region.

  Thirty million dollars is earmarked for Georgia, where democracy is 
truly under siege.
  Eighty-five million dollars is earmarked for Armenia to mitigate the 
severity of the economic consequences of the war and the blockade. 
Armenia has carried out important political and economic reforms in the 
past year but continues to need assistance to complete the transition.
  Another country that I have had a longstanding interest in, going 
back to the dissolution of the Soviet Union: $225 million is earmarked 
for Ukraine with subearmarks to address the urgent priorities of 
strengthening the private sector and developing energy self-
sufficiency. Although the administration has come around to the view 
that Ukraine has a uniquely important role to play in regional 
stability, levels of aid and the kinds of activities AID have been 
willing to undertake lag far behind requirements.
  The sum of $15 million is set aside for a Trans-caucasus Enterprise 
Fund, which will complete congressional plans to have each region 
benefit from this innovative aid approach.
  The NIS section also preserves the option of transferring resources 
to the Peace Corps to sustain their very successful efforts. Overall, 
the Peace Corps is spared the 16 percent reduction imposed on other 
programs and is cut roughly 8.5 percent to $200 million.
  I might say that the occupant of the chair is, of course, a former 
director of the Peace Corps and has been an aggressive advocate for the 
Peace Corps and its programs. He has certainly made his views known to 
me as I worked to put together the chairman's mark.
  Although this is a popular program I cannot understand why we need 
149 volunteers in the Dominican Republic. In Africa, we saw an 18 
percent increase from 1994 to 1995, bringing the number of volunteers 
up to 2,442. Unfortunately, the days of expanding programs are over.
  Title II also funds our international efforts to combat crime, 
terrorism and narcotics trafficking. As I mentioned earlier, I think 
these are issues which every American understands has a direct impact 
on our Nation's interests. In restoring public confidence that our aid 
serves our interests, the committee has increased support for these 
activities.
  Finally title II provides $490 million in operating expenses for AID. 
Each committee which has reported legislation on AID has recommended 
different levels of support. My recommendation is based on a recent GAO 
study which indicated the House authorization and appropriations levels 
would not be adequate to cover the cost associated with RIF's, closing 
missions and other measures to streamline AID's programs.
  According to the GAO, $490 million will require significant actions 
on AID's
 part to eliminate program duplication, close overseas missions, cut 
personnel and otherwise accelerate streamlining and consolidation. But, 
let me be clear. This level will not compel consolidation.

  Although I have supported the two attempts to pass legislation to 
carry out consolidation of AID and the State Department, the 
Administration has indicated it will veto any legislation which forces 
the reorganization of the executive branch without its consent. Given 
this unresolved situation, it did not seem appropriate for the Foreign 
Operations Subcommittee to move ahead of the authorization committee 
and include in a spending bill reorganization or activities not 
directed by law in legislation.
  The rest of the news about the bill is bleak. Title III, security 
assistance is below the House level and the request. I think this is 
unfortunate, but a direct function of the budget reality.
  Title III does provide authority to transfer funds from the European 
and NIS accounts to support the Warsaw Initiative. I think there is 
strong bipartisan support for accelerating the integration of former 
Warsaw Pact members into NATO through joint exercises and training and 
improving military interoperability. The transfer authority provided 
should relieve some of the pressure on the security assistance account.
  Finally, title IV, the multilateral programs, are the hardest hit of 
all accounts. With three exceptions, the World Bank, International 
Finance Corporation, and the Inter-American Development Bank, we have 
not been able to fund existing commitments. Just one example tells the 
story. The request for IDA is $1.3 billion of which we only funded $775 
million.
  International organizations and programs were also drastically 
reduced from the request of $425 million to $260 million. Frankly, this 
is an account which has as many strong supporters as it does vocal 
detractors. There are some clear examples of international agencies 
which have effectively served international interests, such as the 
International Atomic Energy Agency. But, there are just as many with 
sloppy management, guilty of waste, fraud, and abuses. The committee 
has not earmarked levels of support for programs within IO and P with 
the view that contributions will offer the administration the 
opportunity to leverage management reforms. No agency is exempt from 
the urgency of reform and I include one of our collective favorites, 
UNICEF, in that category.
  Let me now turn to Senator Leahy for his comments. I would like to 
point out that the report takes note of the ranking member's dedicated 
service to victims of landmines by establishing the Patrick J. Leahy 
War Victims Fund. This was a program established several years ago to 
aid the recovery and rehabilitation of the thousands of people injured 
by antipersonnel mines. Senator Leahy deserves special recognition for 
his effort in this area which the committee acknowledged by renaming 
the program in his honor.
  Let me also say it has been a pleasure to work with my colleague from 
Vermont. Before I turn to him, let me mention one other item.
  I think, Mr. President, Members of the Senate would be interested 
that earlier today the Central and East European Coalition held a press 
conference urging quick passage of this legislation. This coalition, 
comprising 18 grassroots organizations representing 22 million 
Americans, strongly support this legislation.
  I want to emphasize that because I think it is frequently thought by 
many that nobody in America gives a hoot about foreign assistance. In 
fact, there are many Americans who came from somewhere else, or their 
ancestors did, who care deeply about this part of the Federal budget.
  The Central and Eastern European Coalition represents 18 of those 
groups. They are very active in promoting better relations, 
strengthened relations between the United States and the various 
countries from which they come.
  Mr. President, before turning the floor over to Senator Leahy for his 
opening comments, I ask unanimous consent that the statements of the 
coalition be printed in the Record at this point and I yield the floor.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

     Coalition Urges Greater U.S. Focus on Central and East Europe

  (Statement by Eugene Iwanciw, Washington Office Director; Ukrainian 
                           Association, Inc.)

       The Central and East European Coalition (CEEC), comprising 
     18 national grassroots organizations representing 22 million 
     Americans who trace their heritage to that part of the world, 
     applauds Chairman Mitch McConnell (R-KY) for his leadership 
     in drafting a foreign assistance bill which provides much 
     needed support for the countries of Central and East Europe. 
     We are particularly pleased that the Senator and the 
     Committee have focused additional attention on the non-
     Russian nations of the former Soviet Union, particularly 
     Ukraine and Armenia.
       The Coalition strongly believes that the long-term national 
     security and budget interests of the United States require a 
     strong commitment to the transition of Central and East 
     European countries to fully democratic and free market 
     nations. That commitment requires an active U.S. engagement 
     in that part of the world.
       The Central and East European Coalition believes that 
     peace, stability, and democracy throughout Europe serve the 
     national security interests of the United States. In this 
     century, the United States was called upon to fight two world 
     wars and a 45-year cold war--conflicts which emanated from 
     the heart of Europe--in the furtherance of those vital 
     geopolitical interests. The institutionalization of democracy 
     and market 

[[Page S 13902]]
     economies in Central and East Europe is the best means of guaranteeing 
     that there will be no further European conflicts which will 
     entangle the United States. We believe that with the collapse 
     of communism and the Soviet Union, the objectives of peace, 
     stability, and democracy in Europe are achievable. For those 
     objectives to be achieved, however, requires the continued 
     engagement, support, and assistance of the United States and 
     the West.
       Since the signing of the Camp David Accords, the United 
     States has wisely supported the peace process in the Middle 
     East. That long-term commitment is now paying dividends with 
     increased stability throughout that region of the world. 
     Similarly, the strengthening of democracy and market 
     economies in the countries of Central and East Europe will 
     require a long-term commitment by the United States. Forty-
     five to seventy-five years of communist oppression and 
     tyranny cannot be eradicated overnight.
       Continued United States engagement in Central and East 
     Europe must take various forms. The most visible is our 
     foreign assistance. While we had hoped that the 
     Administration's overall funding levels would be accepted by 
     the Congress, we were particularly distressed by the severe 
     cuts that
      House of Representatives made in the programs for Central 
     and East Europe, particularly in the Freedom Support Act 
     (FSA). We commend the Senate Subcommittee on Foreign 
     Operations, under Chairman McConnell's leadership, for 
     restoring many of those cuts and we urge the Senate to 
     adopt the levels of funding for FSA and SEED contained in 
     the bill as reported from the Appropriations Committee. We 
     especially applaud the attention which Senator McConnell 
     and the Committee have given to the non-Russian nations 
     considered part of the New Independent States (NIS). For 
     the past three years, the bulk of assistance to the NIS 
     went to Russia. This bill provides U.S. policy with the 
     balance it should have in our dealings with the nations of 
     Central and East Europe.
       Secondly, our engagement demands involvement in the 
     security issues of the region. We believe that the general 
     stability and security of the region can best be accomplished 
     through the expansion of NATO to include all the nations of 
     the region who desire to join the alliance and meet the 
     criteria for membership. For that reason, we strongly support 
     the funding for the Warsaw Initiative and the NATO 
     Participation amendment which Senator Hank Brown (R-CO) will 
     offer during floor consideration of the Foreign Assistance 
     Appropriations Act.
       Thirdly, we believe that the U.S. assistance should focus 
     on those countries which have demonstrated progress in the 
     establishment of democratic institutions and market reforms 
     as well as respect for basic human rights. That criteria must 
     also include a commitment not to hinder international 
     humanitarian relief efforts. For that reason, we endorse the 
     Humanitarian Corridor Act which Senate Majority Leader Robert 
     Dole (R-KS) will offer as an amendment to the Appropriations 
     Act during Senate floor consideration. This amendment would 
     suspend assistance to any country which hinders U.S. 
     humanitarian relief efforts to a third country.
       Fourthly, as U.S. assistance to this important part of the 
     world is unfortunately reduced, it is vital that the U.S. 
     Agency for International Development (USAID) maximize the 
     impact of every dollar of assistance. For far too long we 
     have heard about waste, inefficiencies, and fraud in these 
     programs. It is time to take the Beltway Bandits off the 
     public dole and to work through organizations with both an 
     understanding of the region and a demonstrated, long-term 
     commitment to the establishment of democratic and free market 
     institutions in the countries of Central and East Europe. In 
     the six years since the Berlin Wall came down, USAID has been 
     unable to institute these reforms so we call upon the 
     Congress to take the initiative in reforming the delivery of 
     U.S. foreign assistance.
       Finally, an aspect of our engagement in Central and East 
     Europe involves the flow of information and ideas to the 
     peoples of Central and East Europe. For five decades, the 
     United States has provided the peoples of this region with 
     timely and accurate information through the Voice of America 
     (VOA) and Radio Free Europe/Radio Liberty (RFE/RL). These 
     programs are as vital today as they were during the communist 
     period. Democracy is still in its infancy in most, if not 
     all, of the nations of Central and East Europe. Few, if any, 
     of these countries have a firmly-established independent 
     media, particularly electronic media. Today, VOA and RFE/RL 
     are playing critical roles in the establishment of democracy 
     throughout the region. Last year the Congress enacted 
     legislation which brings better coordination to the work of 
     the two broadcasting services. This has resulted in 
     substantial savings in the FY 1996 budget. It would, however, 
     be a major mistake to reduce the budget of the broadcasting 
     services below the levels currently in the Commerce, Justice, 
     State, and Judiciary Appropriations Act and the Coalition 
     strongly opposes any such effort.
       The United States spent hundreds of billions of dollars to 
     win the Cold War. It would be tragic were the United States 
     to lose the peace through short-sighted policies and 
     illusionary budgetary savings. An investment in democracy 
     building today will pay dividends through long-term security 
     and reduced military expenditures for the United States.
       In conclusion, the Central and East European Coalition 
     urges the Senate to approve the Foreign Assistance 
     Appropriations Act with the Committee approved spending 
     levels for FSA and SEED, to adopt the NATO Participation and 
     Humanitarian Corridors amendments, to oppose any efforts to 
     reduce funding for VOA and RFE/RL in the Commerce-Justice 
     Appropriations Act, and to begin reforming USAID to insure 
     that our foreign assistance is used effectively and 
     efficiently. We especially urge the House conferees to accept 
     these provisions during the House-Senate conference on the 
     bills.
                                                                    ____

                Coalition Urges Rapid Expansion of NATO

 (Statement by Frank Koszorus, Jr., Member of the Executive Committee; 
                     Hungarian American Coalition)

       The Central and East European Coalition applauds the 
     leadership of Senator Hank Brown (R-Col.) who, along with 
     strong bipartisan support, will offer the NATO Participation 
     amendment to the Foreign Assistance Appropriations Act. 
     Senator Brown's Amendment will establish a process to 
     facilitate the expansion of NATO in a manner that will 
     advance vital U.S. geopolitical interests in Europe and 
     preserve its leadership role in the world.
       The Coalition is concerned with the glacial pace of NATO's 
     expansion. The collapse of the Soviet Union has left a 
     dangerous security vacuum in Central and Eastern Europe. That 
     region must be rapidly reintegrated with the West to provide 
     it with a sense of security and to shore up the new 
     democracies. Rapid expansion of NATO to include countries 
     which are committed to the concepts of democracy, market 
     economies, civilian control of the military and human and 
     minority rights would serve this objective as well as the 
     foreign policy interests of the United States by ensuring 
     Europe's overall stability.
       The United States cannot afford to turn its attention away 
     from the Central and Eastern European countries. Success in 
     their transition to pluralism and democracy will validate the 
     many sacrifices we made to win the Cold War. Failure will 
     ensure a new world order far less congenial to our interests.
       The adverse consequences of our withdrawal from Europe at 
     critical times in the past fill history books. Had we reacted 
     firmly to the turmoil threatening peace in Europe prior to 
     the First and Second World Wars, many American lives and 
     resources would have been spared. Similarly, the Cold War 
     would have been far less expensive and dangerous had we not 
     pulled back from the heart of Europe and had we resisted 
     domestic pressure to ``bring the boys home'' before the 
     European political order had been settled. As George F. 
     Kennan wrote in 1950, ``history does not forgive us our 
     national mistakes because they are explicable in terms of 
     domestic policies.''
       Today, we must not permit Central and East Europe to 
     languish in a security vacuum. Russian interests are not 
     threatened by the expansion of a defensive alliance. 
     Moreover, stability and economic growth on the Western 
     borders of Russia can only benefit Moscow.
       Russia should not be isolated and mechanisms, such as a 
     treaty between NATO and Russia, would dispel any lingering 
     concerns Moscow may entertain about an enlarged NATO. Russia, 
     however, should under no circumstances be permitted to veto 
     NATO's enlargement. Western appeasement and indecisiveness 
     will encourage Russian nationalists to assert expansionist 
     tendencies and cause the U.S. and the West to lose 
     credibility. Russia itself is in a fluid state with voices of 
     nascent imperialism being heard with greater frequency. 
     Yeltsin's harsh outburst in Budapest last year and his even 
     more disquieting threats following NATO's bombing missions in 
     Bosnia, vividly demonstrate the perils of procrastination.
       Continued Western hesitation in expanding NATO would redraw 
     the lines imposed by Stalin and signal Russian imperialists 
     that they, in fact, enjoy a ``sphere of influence'' in 
     Central and Eastern Europe. This ill-advised policy would be 
     contrary to U.S. geopolitical interests in a stable, secure, 
     unified, and democratic Europe.
       Having won the Cold War, the United States should not 
     prematurely retreat from the challenges posed by Central and 
     Eastern Europe, if only to avoid being drawn back into 
     exacerbated controversies. Expansion of NATO to include 
     countries which desire to join the alliance and meet the 
     criteria of NATO membership is an inexpensive yet vital 
     insurance policy for the United States.
       Senator Brown's amendment is a welcome first step in this 
     direction. It must be followed by concrete steps, eligibility 
     lists, criteria, and unambiguous timetables in 1996. As we 
     approach the 21st Century, we simply cannot afford to 
     squander a historic opportunity to safeguard peace and 
     democracy.
                                                                    ____

  Coalition Urges Senate Passage of the Humanitarian Aid Corridor Act

   (Statement by Timothy Jemal, Director of Congressional Relations, 
                     Armenian Assembly of America)

       First, we want to compliment Chairman McConnell for his 
     leadership in drafting a bill that gives prominent support to 
     the states of Central and Eastern Europe. We are particularly 
     pleased that Senator McConnell and the committee are 
     strengthening U.S. support for the non-Russian New 
     Independent States (NIS), in spite of an overall reduction in 
     funding. This redirection in resources 

[[Page S 13903]]
     will make a tangible and permanent contribution to the bold reforms 
     taking place in such countries as Armenia and Ukraine. In 
     spite of this overall shift, U.S. aid to the states of 
     Central and Eastern Europe continues to be reduced, requiring 
     maximum efficiency in the use of U.S. foreign assistance. It 
     is this objective that is embraced in legislation supported 
     by our Coalition and rapidly moving towards enactment.
       Senate Majority Leader Bob Dole (R-KS), Senator Paul Simon 
     (D-IL), along with a bipartisan group of Senators including 
     Chairman McConnell, will offer the humanitarian Aid Corridor 
     Act (S. 230) on the Senate floor as a amendment to the 
     Foreign Operations Appropriations bill (H.R. 1868). The 18 
     member organizations of the Central and East European 
     Coalition strongly urge the Senate to take quick, decisive 
     action--in support of the Dole/Simon amendment. This 
     legislation espouses the fundamental principle that the 
     United States should not provide assistance to any country 
     which deliberately prevents the transport of American 
     humanitarian assistance through its borders. The U.S. cannot 
     expect to meet the need for budget austerity and achieve 
     important foreign policy goals without the cooperation of our 
     allies.
       The relevant committees in the Senate and the House have 
     fully debated the bill and expressed clear, bipartisan 
     support. On May 12, the House International Relations 
     Committee approved the Corridor Act by a 27-7 vote. On June 
     7, the same bill was again approved by the Senate Foreign 
     Relations Committee in a convincing 14-4 vote. To illustrate 
     the genuine bipartisan nature of the bill, it was California 
     Senator Dianne Feinstein who successfully offered Senator 
     Dole's bill as an amendment before the Foreign Relations 
     Committee. In addition, the Democrats on the Foreign 
     Relations Committee voted unanimously for the Corridor Act. 
     For the third time, the provision was approved by the House 
     Foreign Operations Subcommittee on June 8, and retained in 
     H.R. 1868 when it passed the House by a 333-89 vote.
       Currently, the countries of Central and Eastern Europe are 
     undergoing radical political and economic reforms to 
     institutionalize democracy and free markets. The success of 
     these reform programs will bring peace, security and 
     stability to the region. The Coalition will continue to work 
     toward securing the integration of our ancestral homelands 
     into the western political, economic and defense structures. 
     We oppose any obstacle or impediment to furthering this 
     integration process and especially deplore the use of 
     inhumane methods to prevent any nation of Central and Eastern 
     Europe from having access to U.S. humanitarian aid. It simply 
     does not make sense that the United States should provide aid 
     to one nation which in turn denies U.S. humanitarian 
     assistance to another state. We are firmly united in our view 
     that U.S. assistance should be delivered in the most humane, 
     cost-effective, fiscally responsible manner. This cannot be 
     achieved when borders are closed to thwart U.S. assistance to 
     people in need.
       Senator Dole's amendment does not single out or exempt any 
     country. All recipients of U.S. assistance will be held to 
     the same standard, including such countries as Turkey, which 
     has imposed an illegal and immoral blockade on Armenia since 
     April of 1993. This blockade has resulted in slowing delivery 
     of U.S. aid shipments while skyrocketing the transportation 
     costs. Most importantly, the blockade has often precluded the 
     safe delivery of vitally needed U.S. humanitarian assistance.
       The Coalition believes that it is unconscionable for any 
     recipient of U.S. aid to use the denial of food, medicines 
     and other essential humanitarian needs as a political weapon. 
     The United States should demand that its allies maintain a 
     simple, humane policy that allows U.S. assistance to flow 
     through open corridors. As taxpayers, we are rightfully 
     indignant that the U.S. government would provide hundreds of 
     millions of dollars to a country denying aid to suffering 
     people. There is no more cruel and cynical policy than a 
     government directive to block humanitarian assistance to the 
     most vulnerable people for political or strategic ends. That 
     any recipient of U.S. aid would do so is unacceptable to this 
     Coalition.
       We applaud Senators Dole and Simon for their leadership on 
     this issue. The amendment is truly bipartisan, and a 
     necessary element in strengthening American credibility 
     abroad.
                                                                    ____

                  Coalition Urges Reform of U.S.A.I.D.

 (Statement by Avo E. Ora, Director of Public Relations, Joint Baltic 
                      American National Committee)

       Today, the Central and East European Coalition is united 
     not only in our support for increasing foreign aid funding, 
     we are also united in our demands for the effective use of 
     these resources. Increased funding will not advance our 
     national security interests nor Central and East European 
     development if the funds continue to be wasted on short-term, 
     less-than-efficient programs.
       The end of the Cold War provided the US with the 
     opportunity to reshape Europe as the Marshall plan reshaped 
     war-ravaged Europe in 1947. America's present policy goals 
     are similar to the goals outlined under the plan--we seek to 
     facilitate and secure democratic and economic gains in post-
     Soviet nations, resulting in a stable and secure Europe.
       Unfortunately, the US Agency for International Development 
     did not seize this opportunity and conducted business as 
     usual. Grants have generally shifted from Central America to 
     Central Europe but continued to be implemented by generic 
     developmental, fee-for-service contractors who generally lack 
     interest, knowledge and long-term commitment to the region. 
     Although some long-term, goal-specific USAID programs were 
     successfully implemented, they were more an exception than 
     the norm. The result is a characterization of US assistance 
     as wasteful by Congress, the targeted states, and most 
     damaging of all, by the American people.
       How can we increase the sustainable development and 
     effectiveness of foreign aid? The answer lies in our 
     recommendations for the use of Region Specific Organizations 
     in aid implementation and a more open and accountable grant 
     procedure. These suggestions evolved from our efforts to 
     guarantee the efficient and wise use of US taxypayer dollars.
       Our first recommendation is the use of organizations that 
     have historic ties and long-term commitments to the countries 
     of Central Europe and the New Independent States. These 
     Region Specific Organizations, including many in our ethnic 
     communities, have high standards of professionalism, an 
     intimate knowledge of the political, economic and social 
     conditions in a given country, and language capabilities 
     which others lack.
       Our second recommendation calls for the public disclosure 
     of specific tasks, goals, and funding levels of USAID 
     contracts, insuring an open and fair process for awarding 
     contracts and grants, and simplifying the contracting process 
     to facilitate smaller Region Specific organizations. 
     Recently, USAID's lack of planning and commitment became 
     apparent when USAID attempted to unilaterally reduce funding 
     for Armenia in fiscal year 1996. In addition, USAID failed to 
     submit a strategy paper for public comment. We strongly 
     recommend that USAID country strategy papers be subject to 
     comment by the NGO and PVO community.
       The Coalition contrasts the wasteful, region-wide spending 
     practices of USAID, with the country specific contracting 
     processes of the National Endowment for Democracy and the US 
     Information Agency which result in much greater, quicker and 
     more effective assistance to these countries. Moreover, these 
     smaller agencies which have had and will continue to have a 
     long-term commitment to democracy and free market reform in 
     the region, have contracting processes which are ``user 
     friendly'' to RSO's, such as those represented by the 
     coalition.
       Aid for Central Europe and the New Independent States were 
     designed to be temporary. This finite time frame for 
     assistance only increases our desire for effective programs. 
     Estonia is already slated for USAID ``graduation'' in 1996--
     other nations are on the chopping bloc for 1997. While we 
     agree that US assistance should promote self-sufficiency and 
     not dependency, this goal is not being pursued by government 
     programs before or after ``graduation''. Estonia, for 
     example, called for ``trade, not aid'' but now finds itself 
     locked out of scientific and technical exchanges that would 
     facilitate economic development.
       The United States has long-term strategic interests and 
     needs in the region of Central and East Europe. Thus, it is 
     vitally important that all US assistance programs be designed 
     and implemented in such a fashion as to further those 
     strategic interests and needs. We echo the calls to reform 
     foreign aid made by Chairman McConnell and his Committee. 
     After three years of the Administration's failure to address 
     these problems, the Coalition calls on Congress to take the 
     lead in a top-to-bottom reform of USAID.

  The PRESIDING OFFICER. The Chair recognizes the Senator from Vermont.
  Mr. LEAHY. I yield to the Senator from Arkansas who wishes to make a 
unanimous-consent request.
  The PRESIDING OFFICER. The Chair recognizes the Senator from 
Arkansas.

                          ____________________