[Congressional Record Volume 143, Number 102 (Thursday, July 17, 1997)]
[Senate]
[Pages S7623-S7650]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                        APPROPRIATIONS ACT, 1998

  The PRESIDENT pro tempore. The clerk will report the pending bill.
  The assistant legislative clerk read as follows:

       A bill (S. 955) making appropriations for foreign 
     operations, export financing and related programs for the 
     fiscal year ending September 30, 1998, and for other 
     purposes.

  The Senate resumed consideration of the bill.
  Pending:

       Bingaman amendment No. 896, to provide for Cuban-American 
     family humanitarian support and compassionate travel.
       Hutchinson amendment No. 890, to express the sense of the 
     Senate that most-favored-nation trade status for China should 
     be revoked.

  The PRESIDENT pro tempore. The able Senator from New Mexico is 
recognized.


                           Amendment No. 896

  Mr. BINGAMAN. Mr. President, I appreciate very much the chance to 
speak again about my amendment. Let me take just a few minutes to 
describe what this amendment does and then reserve a couple of the 5 
minutes that is allotted for my side for any rebuttal I need to make.
  This amendment is very modest. It tries to do three things. It is 
aimed at assisting the Cuban-American families that reside in our 
country, some of whom are citizens--some individuals are citizens, some 
are residents. It tries to assist in three respects.
  First of all, it says with regard to family support payments, that 
residents of the United States shall not be prohibited from sending to 
their parents, their siblings, their spouses, or their children who 
currently reside in Cuba, small amounts of money, not to exceed $200 
per month, to be used for the purchase of basic necessities, including 
food, clothing, household supplies, rent, medicines, and medical care.
  Mr. President, I think this is self-explanatory. We had a policy 
until the shootdown of the plane some 2 years ago, nearly, at this 
point--we had a policy of permitting, I believe, $100 per month to be 
remitted by Cuban-Americans living in this country to their families in 
Cuba for these types of purposes. That is no longer permitted at any 
level. This amendment would say up to $200 per month could be sent by

[[Page S7624]]

a person in this country to a family member in Cuba.
  Second, compassionate travel--that is the second item in this 
amendment. It says essentially that U.S. citizens and permanent 
residents here can travel without limitation for periods not to exceed 
30 days for each trip to attend either a medical emergency or a funeral 
of that person's parent, sibling, spouse, or child. As I understand it, 
the present law in this country is that you can go to Cuba for a very 
short time once a year, if you are a resident of this country, for this 
kind of purpose. It doesn't take a great deal of ingenuity to conjure 
up a situation where you would have a person's parent getting sick, 
having a medical emergency that required that person to return early in 
the year, and then have a funeral later that year which would require a 
return again to Cuba. This amendment says that you could do both of 
those trips. Neither could be more than 30 days in duration. It is a 
very limited provision. It is only applicable to people who have 
spouses, parents, siblings, and children in Cuba.
  And the third item here, which I think is not just aimed at the 
Cuban-American community, it says that the United States Government 
shall not be prohibited from participating in humanitarian relief 
efforts of multilateral organizations of which the United States is a 
member, where such humanitarian relief efforts are made in the 
aftermath of a natural disaster in Cuba.
  All we are saying here is that if there is a hurricane, if there is 
some natural catastrophe in Cuba, and multilateral organizations that 
we are a member of decide to take some action to assist the Cuban 
people, then we can participate along with the other members of that 
multilateral organization.
  As I indicated when I started, this is a very, very modest amendment. 
It is trying to deal with some very specific problems I see in our 
current law, and I would very much appreciate it if our colleagues 
could agree to this amendment. I understand it is objectionable, and I 
will, at this point, yield the floor and reserve the remainder of my 
time to allow the opponents of the amendment to explain why this is 
going to undermine our great democracy.
  I yield the floor.
  The PRESIDING OFFICER (Mr. Brownback). Who yields time in opposition 
to the amendment?
  The Senator from New Jersey.
  Mr. TORRICELLI. Mr. President, I yield myself 3 minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. TORRICELLI. Mr. President, on February 24, 1996, under the 
directions of Fidel Castro, the Cuban Air Force encountered and 
destroyed a civilian aircraft in the Florida straits. Murdered on that 
day were four innocent civilians, including Americans. At almost the 
same time, 100 brave Cuban citizens demonstrating in the streets of 
Havana were arrested for demanding democratic reforms, and they remain 
in jail.
  In response to these actions, President Clinton, with the strong 
bipartisan support of this country, on that day made several changes in 
American policy. First, we suspended the very remittances that would be 
expanded by the Bingaman amendment today, and canceled flights that 
were encouraging tourism and travel in Cuba. It was a modest response 
to an egregious act. We were united then; I do not know what would 
divide us now.
  Since the murders on that day, there has been no change in Cuban 
policy. Although the price of progress in American relations has always 
been clear--a single opposition newspaper, the scheduling of a free 
election, the allowing of any dissent, the opening of Cuba's jails to 
anyone; not all of these things, not even in their entirety, but any 
one of these things, to any extent, would have brought about a change 
in our policy.

  I know people are impatient for democratic reform in Cuba and an 
ending of the embargo. It has been 5 years since we strengthened 
American law. I know patience is not always our greatest national 
attribute. But now--in the face of Fidel Castro, 5 years after 
embarking on this policy, only 18 months after the murder of these 
citizens, with no Cuban response, no concession and no change--to 
simply abandon our policy, I believe, would undermine a foreign policy 
objective of the United States for a free Cuba.
  Mr. President, does the Senator from Florida--we have consumed 3 
minutes, I believe, Mr. President?
  The PRESIDING OFFICER. Two minutes remain.
  Mr. TORRICELLI. Does the Senator from Florida request the 2 minutes?
  Mr. GRAHAM. Yes.
  The PRESIDING OFFICER. The Senator from Florida.
  Mr. GRAHAM. Mr. President, I thank my colleague, Senator Torricelli.
  I rise today to oppose the amendment offered by our colleague from 
New Mexico. The policy of the United States toward Cuba is too serious, 
it is too delicate, it has too many ramifications to be settled in 
debate which this morning will provide 5 minutes per side to discuss 
the nuances of what is entailed in this seemingly humanitarian and 
benign amendment. If there is to be a change in policy, it should be 
the result of studied consideration of all of the implications of 
specific proposals, not extracting three items from a complex set of 
relationships that involve not only Cuba but also many other nations in 
the world.
  Second, there is no need for this amendment. One of the principal 
parts of this amendment is related to humanitarian aid, particularly 
after a natural disaster--a very appealing concept for Americans. It is 
so appealing that, in fact, the United States is already the largest 
donor of humanitarian assistance to Cuba. In the last 4 years, the U.S. 
Government has licensed more than $150 million of humanitarian 
assistance to Cuba, more than the total of all other nations combined. 
So the United States has not stood by in times of humanitarian need for 
the people of Cuba.
  With reference to travel to Cuba, American citizens already can 
travel to Cuba once a year with virtually no restraints in order to 
attend to a humanitarian family need. This would open the gates beyond 
that to allow unlimited visits to Cuba.
  The PRESIDING OFFICER. The time of the Senator has expired.
  Mr. GRAHAM. Mr. President, I urge the Senate defer the debate on what 
should be our policy in the future toward Cuba to another day, when we 
can give it the attention that it requires, and defeat this amendment.
  Mr. BINGAMAN. Mr. President, how much time remains?
  The PRESIDING OFFICER. The Senator from New Mexico controls 50 
seconds.
  Mr. BINGAMAN. Let me conclude by saying I am not trying to change 
United States policy toward Cuba. I am not trying to provide assistance 
to Fidel Castro. I am not trying to send a signal that Fidel Castro is 
a favorite statesman of this country. I do think it is appropriate for 
us to separate out the concerns of Cuban-American citizens and 
residents from this geopolitical issue, and say these modest efforts to 
assist Cuban-American citizens and residents to help their families and 
to visit their families are not something that a great nation like ours 
should resist.
  Clearly, the humanitarian assistance my colleague from Florida cites 
that we have done is in the private sector. There is no public sector 
assistance at this time.
  Mr. President, I urge the adoption of my amendment.
  While I have the floor, I ask unanimous consent to add Senator Bob 
Kerrey from Nebraska as a cosponsor of my amendment.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BINGAMAN. I also ask for the yeas and nays on my amendment.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The yeas and nays were ordered.
  The PRESIDING OFFICER. By previous agreement, the vote will take 
place at a later time.
  The PRESIDING OFFICER. All time has expired on the amendment.


                           Amendment No. 890

  The PRESIDING OFFICER. The question recurs on the amendment of the 
Senator from Arkansas. The Senator from Arkansas is recognized for up 
to 5 minutes.
  Mr. HUTCHINSON. Mr. President, I yield myself 2 minutes.
  It has been years since this body voted on the most-favored-nation 
status for China. It has been 8 years since

[[Page S7625]]

the Tiananmen Square massacre, and it has been 4 years since this 
Nation embarked on a policy of so-called constructive engagement which 
delinked our China trade policy from human rights concerns.
  During these years, years since we last voted on MFN, years since the 
Tiananmen Square massacre, and the 4 years since we embarked upon 
constructive engagement, this is what has happened in these years:
  The struggling democracy movement in China has been thoroughly and 
completely squashed.
  Those students at Tiananmen Square, which we watched on television 
all over this Nation, are all either imprisoned or executed.
  All voices of freedom in China have since been silenced--all of 
them--according to the 1996 State Department Report on China. All 
voices of dissidents have been silenced.
  Chinese workers have been systematically exploited.
  Weapons of mass destruction have been exported around the world so 
that the export of those weapons from China now poses the greatest 
military risk in the world today.
  And people of faith in China have been persecuted and driven 
underground.

  In addition, during these years, all political dissent has been 
effectively oppressed, and now there is mounting evidence that, in 
fact, during these years when we were year after year granting most-
favored-nation status, they were attempting to influence the American 
political process. There is mounting evidence that that was the case.
  So I believe this vote is a vote of conscience. I believe it is a 
vote that we must have in this body. The abuses of the Chinese 
Government beg to be protested.
  So when people ask me why this vote? I say because it is so egregious 
what is going on that we must vote, we must raise our voice, we must 
let the people of China know that there are people standing up for them 
in the United States.
  The PRESIDING OFFICER. The Senator has used his 2 minutes.
  Mr. HUTCHINSON. I reserve my 3 minutes.
  The PRESIDING OFFICER. Who seeks to speak in opposition to the 
amendment?
  Ms. COLLINS addressed the Chair.
  The PRESIDING OFFICER. The Senator from Maine. How much time does the 
Senator seek?
  Ms. COLLINS. Mr. President, I seek 90 seconds, please.
  The PRESIDING OFFICER. The Senator is recognized.
  Ms. COLLINS. Mr. President, I rise in support of Senator Hutchinson's 
sense-of-the-Senate resolution. I want to make clear that my support of 
this nonbinding resolution signifies my grave concerns about most-
favored-nation status for China rather than a final decision about this 
important policy question.
  Last month, the House of Representatives debated a resolution of 
disapproval that would have denied most-favored-nation status for China 
as proposed by President Clinton. The House rejected this measure, 
thereby supporting the Clinton administration's proposal to extend MFN 
status for China for another year.
  Given this action by the House, the U.S. Senate will not have a 
formal debate and vote this year on the President's recommendation. 
Nevertheless, I recognize that this issue raises some very serious 
issues that need more debate and consideration than the very brief 
debate that the Senate has given this issue today.
  Like many of my colleagues in the Senate, I am very troubled by the 
actions of the Chinese Government in Beijing. It has a very poor record 
on human rights issues. It has repeatedly violated trade agreements.
  The PRESIDING OFFICER. The Senator has spoken for 90 seconds. Does 
she seek additional time?
  Ms. COLLINS. I ask unanimous consent that I be permitted to proceed 
for 1 additional minute.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Ms. COLLINS. It has a very poor record on human rights issues. It has 
repeatedly violated trade agreements. It engages in unacceptable 
weapons proliferation activities. It denies the religious freedom of 
its citizens. It maintains an antidemocratic posture toward Taiwan and 
Tibet. And, finally, our Senate investigation into campaign finance 
abuses has revealed a plan by China to funnel illegal political 
contributions into American campaigns.
  Given all of the ramifications, I believe that at an appropriate time 
and place, the Senate should engage in a full-fledged debate that gives 
these matters the attention that they truly deserve.
  In conclusion, I am withholding final judgment on the question of 
most-favored-nation status for China, but in the meantime, I am 
expressing my very serious concerns and reservations by supporting the 
nonbinding sense-of-the-Senate resolution offered by the Senator from 
Arkansas.
  I yield the floor.
  Mr. HUTCHINSON addressed the Chair.
  The PRESIDING OFFICER. The Senator from Arkansas.
  Mr. HUTCHINSON. Might I inquire as to how much time my side has 
remaining?
  The PRESIDING OFFICER. One minute 10 seconds. All time remains in 
opposition.
  Mr. HUTCHINSON. It is my understanding Senator Ashcroft from Missouri 
is on the way to the floor to speak in favor of my amendment. I reserve 
the final 1 minute and yield the floor to the opponents of the 
amendment.
  The PRESIDING OFFICER. Who seeks recognition to speak in opposition 
to the amendment?
  Mr. BINGAMAN. Mr. President, I ask permission to speak for up to 2 
minutes in opposition to the amendment.
  The PRESIDING OFFICER. Without objection, it is so ordered. The 
Senator is recognized.
  Mr. BINGAMAN. Mr. President, let me just say this whole issue of 
most-favored-nation status is not what the name implies. We have normal 
trading relations with well over 100 countries in the world, and as to 
each of those countries, we have so-called most-favored-nation trading 
status with them.
  What we need to maintain with China is a normalized trading situation 
which then allows us to deal with the specific problems that the 
proponents of this resolution have identified. I agree that there are 
major problems in the trade imbalance that we have with China, that 
there are human rights abuses in China that are of concern, that there 
is missile proliferation that is of concern, and clearly the issue that 
is being raised about possible involvement by the Chinese Government in 
our elections is of concern. But those are specific issues that should 
be dealt with by a rifle-shot approach. We should not try to cut off 
our trade activities with a very large economy, such as China, and 
hamper the economic opportunities of our own private sector and the job 
creation that comes from that in this country through this kind of 
device.
  So I very much oppose the notion that we should deny most-favored-
nation status to China. I think we should get that issue behind us and 
get on to dealing with the more specific issues that do require 
attention in regard to our relations with China. I hope in future years 
we can do that. It seems like we are caught in a time war. We get to 
where we have an annual debate about most-favored-nation status and 
that is all we seem to be able to have when it comes to talking about 
China, and that is, unfortunately, what is happening again this year.
  The PRESIDING OFFICER. Who yields time in opposition to the 
amendment?
  Mr. McCONNELL addressed the Chair.
  The PRESIDING OFFICER. The Senator from Kentucky.
  Mr. McCONNELL. Mr. President, with regard to the amendment of my good 
friend from Arkansas, Senator Hutchinson, I, along with a number of 
other Senators, were in Hong Kong 10 days ago to watch the turnover of 
Hong Kong to the Chinese. I mention Hong Kong because Hong Kong is 
really the best indicator of what China is likely to become in the 
coming years.
  Some people suggest that the People's Republic of China will ruin 
Hong Kong. Others suggest that Hong Kong will be the engine that 
changes China. I think clearly the latter is most likely to be the 
case. Even though the amendment of the Senator from Arkansas

[[Page S7626]]

deals with MFN for China and not MFN for Hong Kong, I think it is 
worthy of note that no one in Hong Kong, no one, not the democracy 
activists, the businessmen, no one, you can't find anybody in Hong Kong 
who thinks terminating MFN for China is a good idea.
  I cite, for example, Martin Lee, the person who most of us are 
familiar with who is the prodemocracy activist in Hong Kong and the one 
the Chinese tend to fear the most and the one who says the greatest 
number of things that tend to irritate the regime in Beijing. Martin 
Lee is not in favor of terminating MFN for China, because he believes 
that the economic engine that is roaring in mainland China is pulling 
it inevitably in the direction of democracy and human rights.

  So, Mr. President, I hope that the Hutchinson amendment will not be 
approved. I think it sends the wrong signal.
  Having said that, let me say that nobody that I know is entirely 
happy with the internal government in the People's Republic of China. I 
might say the same thing about some of the countries that are still 
receiving foreign assistance from us. We are not entirely happy with 
what is going on in Russia these days. I, for one, am not happy with a 
number of things that have happened in Egypt recently, and these are 
countries that are foreign aid recipients of the United States.
  We are not talking about foreign aid for China; we are talking about 
MFN for China. It seems to me it makes no sense, in terms of our 
growing relationship with China, to send this kind of message by 
terminating the trade status which benefits American business and 
benefits reformers in China who, in my judgment, will ultimately bring 
about the kind of changes in China that we would all like to see.
  Mr. President, how much time remains? We are set for three votes at 
10 o'clock, are we not?
  The PRESIDING OFFICER. The Senator controls 2 minutes remaining in 
opposition. We are set for two rollcall votes at 10 o'clock.
  Who seeks time? Two minutes remain for those who desire to speak in 
opposition; 1 minute remains for those who seek to speak in support of 
the amendment. Who yields time?
  Mr. GRASSLEY. Mr. President, I rise to voice my opposition to the 
sense-of-the-Senate offered by the Senator from Arkansas. I support the 
President's decision to extend most-favored-nation status, or normal 
trading relations, to China.
  The problems with China on trade, security, and human rights are well 
documented. And I won't take the time to repeat them here. But I'll 
just say that we are all concerned with China's poor record of 
promoting democracy, free enterprise and human rights. I'm especially 
concerned with the persecution of Christians in China.
  But I think the question comes down to what is the best way to 
influence policy within China. Is it more effective to have a policy of 
isolationism, where we have virtually no trading relationship with 
China? This is what would happen if normal trading relations is 
revoked.
  Or is it more effective to build a closer relationship with China 
through our trade policy? Trade serves to promote free enterprise and 
raise the standard of living of the Chinese people. It allows us to 
export our principles of liberty and democracy. I believe that the 
United States, and the Chinese people, are clearly better off by 
strengthening our relationship through trade.
  Integrating China into the world community has already paid 
dividends. Recognizing that China still has many problems, most people 
would agree that significant progress has been made just in the last 10 
to 20 years. I believe our economic and diplomatic relations with China 
have helped push this progress along.
  This is not to say that we shouldn't be tough with China. Retaliatory 
measures can be very effective in encouraging further reforms in China. 
But retaliation should be targeted and specific.
  I recall that last year at this time, USTR announced $2 billion in 
sanctions against China for breaching its commitment on intellectual 
property rights. Now I'm told by the administration that China has 
taken significant strides in cracking down on the pirating of 
intellectual property. Firm sanctions targeted at specific behavior can 
force change in China.
  Revoking our normal trading relations is a blunt, ineffective tool. 
It would also hurt American workers, businesses, and consumers. Our $12 
billion in annual exports to China would be put at risk, jeopardizing 
over 200,000 American jobs. And the increase in tariffs on China's 
exports into this county amounts to a stiff tax on American consumers.
  The costs of revoking normal trading relations with China--to 
American workers and consumers and in terms of our inability to 
effectuate change in China--clearly outweigh any perceived benefits. I 
find it hard to believe that Beijing will suddenly promote democracy 
and human rights because the United States ends its trading 
relationship with China.
  Engagement is the right policy for encouraging change in China.
  Some opponents of MFN are concerned, not with these other important 
issues, but with the trading relationship itself. They point to the 
United States' expanding trade deficit with China, which last year 
amounted to just under $40 billion.
  The current negotiations with China on its accession to the World 
Trade Organization is an opportunity to address the trade imbalance. We 
must get meaningful market access concessions from the Chinese before 
they are allowed into the WTO. American products deserve the same 
access to the Chinese market as their products enjoy in the United 
States.
  The stakes are very high. In the agriculture sector, these 
negotiations will determine whether China becomes our largest export 
market or our biggest competitor. We cannot afford to make the same 
mistakes made when Japan entered the GATT in 1945. The United States is 
still shut out of the market in many respects. We need a tough, fair 
agreement with China.
  It's time to move forward in our trading relationship with China. 
Let's get beyond this annual debate over trading status and focus on 
how we can best improve access to China's market for American workers 
and businesses, while improving the lives of the Chinese people by 
promoting human rights and serving as an example of democracy.
  Mr. GORTON. Mr. President, my colleague from Arkansas, Mr. 
Hutchinson, has offered a sense-of-the-Senate amendment today regarding 
the President's decision to extend most-favored-nation trading status 
to the People's Republic of China for another year. Mr. Hutchinson 
believes the President's decision was wrong and would like to see MFN 
for China withdrawn. While I share my colleagues concerns about MFN for 
China, I will not support his amendment today.
  As many of my colleagues know, I have grave reservations about the 
United States' policy of engagement with China. The President's 
decision to continue to provide China free and open access to the 
United States market and the House vote to approve that decision were, 
in my opinion, wrong. But, that is water under the bridge. Instead of 
arguing against a decision that has already been made, we should be 
looking forward to the MFN debate next year.
  My State of Washington is on the cutting edge of trade with China. We 
do more business with China than virtually any other State in the 
Nation and rely on that business for thousands of well-paying jobs. 
Despite our successes, the Chinese continue to impose protectionist 
trade barriers against Washington State products and play politics with 
our exports. My State is not alone in this dilemma.
  I firmly believe that the administration's policy of engagement is 
failing businesses throughout the United States. The United States 
trade deficit with China has now grown to $40 billion and is increasing 
every day. This is unacceptable, Mr. President. I challenge my 
colleagues to take a closer look at our policy of engagement with China 
and urge them to join me in fighting for a tougher trade policy next 
year. If we condition MFN on significant trade concessions from China 
next year, I am convinced that China will back down.
  Unless we stand firm against Chinese protectionism and condition MFN 
and access to the United States market on trade concessions from China, 
we will never reap the potential benefits of truly free trade with the 
world's largest emerging economy.

[[Page S7627]]

  So, Mr. President, I will vote against this amendment today, but look 
forward to working closely with my colleagues next year to change the 
way the United States does business with China.
  Mr. ABRAHAM. Mr. President, I rise to express my opposition to the 
sense of the Senate resolution opposing most favored nation [MFN] 
status to the People's Republic of China.
  Mr. President, I hope everyone in this Chamber recognizes that 
terrible things continue to go on inside China. Religious persecution, 
political repression, and coercive family planning are only the most 
visible Chinese Government policies that violate universal standards of 
human decency.
  In response to these serious problems, some of my colleagues have 
called for an end to China's most-favored-nation trading status with 
the United States.
  But I believe that that is the wrong approach. I support a 1-year 
extension of MFN for China. Why? First, because it is the best policy 
for American consumers. Those consumers will have a wider choice of 
affordable goods with MFN than without it. To revoke MFN would be to 
increase tariffs on goods purchased by the American people. It would 
amount to a tax hike, and I am not in favor of tax hikes, particularly 
those imposed on the basis of another government's behavior.
  Second, I am convinced that revoking MFN would target the wrong 
parties for punishment. We should keep in mind that it is not the 
people of China with whom we have a quarrel; it is their Government. 
Trade and United States investment in China have a positive effect in 
providing more opportunities for average Chinese citizens. According to 
Heritage Foundation China expert Stephen J. Yates, in China, 
``employees at U.S. firms earn higher wages and are free to choose 
where to live, what to eat, and how to educate and care for their 
children. This real and measurable expansion of freedom does not 
require waiting for middle-class civil society to emerge in China; it 
is taking place now and should be encouraged.''
  Third, I am convinced that terminating MFN would be damaging to the 
people of Hong Kong, recently returned to Chinese rule.
  All of us in Congress are concerned that China may violate the 1984 
Sino-British Joint Declaration and squash freedom, both economic and 
political. However, in formulating United States policy with regard to 
Hong Kong, we must remember that repealing MFN for China will hit Hong 
Kong hard. Former Hong Kong Governor Chris Patten has said that 
rescinding MFN would devastate Hong Kong's economy.
  Mr. President, I have another important reason for supporting a 1-
year extension of MFN: American jobs. Using the Commerce Department's 
rules of thumb, United States exports to China account for roughly 
200,000 American jobs. Should we stop doing business with China, I have 
no doubt but that other nations will step in to take our place, and to 
take jobs now occupied by Americans both here and in China.
  Thus, by revoking MFN, we would not significantly punish the Chinese 
Government, but we would visit hardship on our own workers.
  This is not to say that I believe we must stand idly by while human 
rights abuses continue in the People's Republic of China. But, rather 
than eliminate jobs and stifle growth through increased tariffs, in my 
view it would be better to take actions showing our displeasure 
directly with the Chinese Government.

  That is why I have introduced S. 810, the China Sanctions and Human 
Rights Advancement Act.''
  This legislation would show our disapproval of Chinese Government 
actions, while at the same time encouraging worthwhile economic and 
cultural exchanges; exchanges that can lead to positive change in 
China.
  It would:
  Prohibit issuance of United States visas to Chinese Government 
officials who implement and enforce Chinese laws and directives that 
persecute religious groups.
  Prohibit direct and indirect United States-taxpayer financed foreign 
aid for China.
  Require the United States Government to publish a list of Chinese 
companies backed by the People's Liberation Army and operating in the 
United States. This would allow informed consumers and other purchasers 
to choose whether they wish to do business with such companies.
  Prohibit Polytechnologies Inc., known as POLY, and NORINCO, the China 
North Industries Group--two Chinese companies whose officials have been 
indicted for attempting to smuggle arms into the United States--from 
exporting to the United States, or maintaining a physical presence here 
for 1 year.

  In my judgment, the combination of these sanctions and a 1-year 
extension of MFN offers the best approach to change the behavior of the 
Chinese Government. These measures will direct punishment where it 
belongs, with the Chinese Government, not the Chinese people.
  I understand my colleague from Arkansas' frustration with current 
Chinese Government policies. I commend his desire to effect those 
policies in a positive way. But it is my firm belief that we serve the 
cause of liberty best when we serve it most consistently. By 
maintaining free trade, while showing our disapproval of tyrannical 
practices, we stay true to our principles. We make it possible for 
liberty to spread while maintaining our own economic freedom intact.
  I urge my colleagues to vote against the sense of the Senate 
resolution, to support a 1-year extension of MFN, and also to join me 
in pursuing more positive ways by which to influence Chinese Government 
policy.
  Mr. KEMPTHORNE. Mr. President, I oppose the amendment offered by 
Senator Hutchinson. The sense-of-the-Senate resolution now before the 
Senate, even if it passed, will not end China's most-favored-trading 
status with the United States. The House of Representatives has voted 
to retain MFN status for China. Our current trading status with China 
will continue and based on all of the evidence I have seen, I believe 
this is the correct policy.
  We must not mistake the decision to maintain normal trading status 
with China with acceptance or approval of China's abysmal policies 
regarding respect for human rights, religious freedom, nuclear 
proliferation, or respect for intellectual property rights.
  I believe that by staying engaged in China, which the extension of 
MFN provides, is the best way to promote respect for human right, free 
enterprise, and democracy in the most populous country in the world. 
American businesses in China are advocates of human rights on a daily 
basis. By staying engaged in China, we can hear the cries for freedom 
of the Chinese people. If we as Americans cut ourselves off from China, 
who will hear these pleas for reform and progress and who else will be 
able to press China to respect human rights?
  It is important to note that leading advocates of reform in China, 
such as Martin Lee in Hong Kong, are strong advocates for the extension 
of MFN to China. We must continue to bombard the Chinese with 
capitalism. But if we isolate China, as has been suggested, and cut off 
ties to the free world, that's when you condemn the persecuted and 
their cries are not heard. Tiananmen Square was a prodemocracy movement 
by young Chinese because of their exposure to free enterprise and 
capitalism. Exposure to democracy, not isolation from it, will allow 
change to come from within.
  I have seen first hand the value of talking with Chinese leaders 
about human rights. Last year I traveled to China and I raised the 
issue of human rights violations with many of the officials I spoke 
with, including President Jiang Zemin. Pursuing trade with China is 
important so we can expose the Chinese people to the free enterprise 
system, capitalism, and other important concepts of our free and 
democratic society. Just like I did with my meetings with Chinese 
leaders, each sale, each meeting, each phone call is an opportunity to 
make our case for respecting human rights. Engaging the Chinese, not 
isolating them, is a faster way to achieve the reforms we all want.
  I understand that many well-meaning groups oppose the extension of 
MFN to China because of China policies which suppress religious 
freedoms. Many Idahoans have raised this issue with me but I would like 
to quote the words of Rev. Nelson E. Graham, the

[[Page S7628]]

son of Dr. Billy Graham, regarding his work in China, ``In the years we 
have been traveling to China, we have seen a definite improvement in 
the area of religious freedom for China's Protestant believers, and I 
believe it is a mistake to focus on the negatives and not reinforce the 
positive strides China has made in this area.''
  I also know many folks are concerned about the findings coming out of 
the hearings by the Governmental Affairs Committee regarding China's 
efforts to influence elections in the United States. The timing of this 
vote coincides with hearings by the Senate Government Affairs Committee 
where both Democrats and Republicans conclude that China has 
participated in efforts to directly and indirectly influence elections 
in the United States.
  This is of enormous concern to me because of its threat to free and 
fair elections in our country without foreign influence. This should be 
thoroughly investigated by Congress and by Federal law enforcement 
agencies. Americans who may have assisted in espionage by China should 
be prosecuted to the fullest extent of the law. If the hearings and 
investigations prove the Government of China did in fact attempt to 
influence elections, this issue must be immediately and directly 
confronted by diplomatic and international sanctions so that 
perpetrators are brought to justice and that it never, ever happens 
again.
  But a vote on MFN for China is not a vote on the issue of Chinese 
espionage. A vote on MFN for China is a vote about what is best for the 
interests of the United States and its citizens.
  Regarding the benefits of extending MFN to China, Governor Batt of 
Idaho states, ``There are valid concerns about China's human rights 
record; however, I think that to severely curtail trade with the U.S. 
would move us backward on this issue, not forward.'' Likewise, a recent 
editorial in the Idaho Statesman endorsing the extension of MFN for 
China states, ``The surest, long-term policy for ensuring a better life 
for people here and abroad is to promote free markets and friendly 
trading policies.''
  I believe we must do what is best for ourselves and what is most 
likely to promote progress toward freedom and democracy for the people 
of China and I therefore support the extension of most-favored-nation 
trading status for China.
  Mr. DURBIN. Mr. President, I rise in opposition to the amendment. I 
have serious concerns about our current trade relations with China. 
Last year, our merchandise trade deficit with China grew to $39.5 
billion, which is an increase of more than 213 percent over the past 5 
years. This year, our trade deficit with China is expected to reach $50 
billion.
  It is clear that, in many cases, goods from the United States are 
locked out of China's markets, while goods from China are allowed to 
enter United States markets at nondiscriminatory tariff rates. Last 
year, the United States imported $51.5 billion in goods from China, 
while China imported only $12 billion in goods from the United States. 
More than one-third of China's exports are sold to the United States, 
while only 2 percent of total United States exports are sold to China.
  The piracy of intellectual property rights in China cost the United 
States economy $2.3 billion last year. It is estimated that as much as 
97 percent of the entertainment software sold in China is counterfeit, 
and pirated goods produced in China have been found in Asia, the Middle 
East, Europe, and North and South America.
  At the same time, the Government of China continues to sell weapons 
of mass destruction, and abuse the human rights of its citizens. China 
has sold missiles, missile technology, and chemical and biological 
weapons to countries such as Iran, Libya, Syria, and Iraq. These 
weapons threaten U.S. military personnel overseas, and our allies and 
friends around the world. And the State Department report on human 
rights in China describes widespread human rights abuses which violate 
internationally accepted standards. The report states that all public 
dissent against the Communist party and the Government of China has 
been silenced by intimidation, exile, prison terms, and other forms of 
detention.
  The legislation which the Senate is considering today is not the 
appropriate vehicle for this amendment. The Trade Act of 1974 already 
provides a thorough mechanism for the consideration of MFN renewal for 
nonmarket economies such as China. This amendment is being offered 
without consideration by any committee of the Senate, and with limited 
opportunity for debate on the Senate floor.
  In addition, this amendment would have no legal effect. The decision 
to renew MFN for China has already been made for this year. The 
President renewed MFN for China in May, and the House of 
Representatives rejected a joint resolution of disapproval. This 
amendment would have no impact on that decision.
  Mr. President, the Government of China should not expect the United 
States to continue to provide nondiscriminatory tariff rates to goods 
from China, if China continues to restrict the access of United States 
products to markets in China. If the renewal of MFN for China is 
considered by the Senate next year under the Trade Act, I may be 
compelled to continue to oppose MFN for China unless there is a 
substantial improvement in China's trade practices, proliferation 
policies, and respect for human rights.
  Mr. McCONNELL. I suggest the absence of a quorum, with the time to be 
equally charged to both sides.
  Mr. HUTCHINSON addressed the Chair.
  The PRESIDING OFFICER. The Senator from Arkansas.
  Mr. HUTCHINSON. Mr. President, it is my understanding that Senator 
Ashcroft is on his way to speak in favor of the amendment.
  Mr. McCONNELL. I withdraw my request.
  The PRESIDING OFFICER. Who yields time?
  Mr. HUTCHINSON. Mr. President, it is my understanding I have 1 minute 
10 seconds. I yield the remaining time to the distinguished Senator 
from Missouri.
  The PRESIDING OFFICER. The Senator from Missouri is recognized for 
the remaining time.
  Mr. ASHCROFT. Mr. President, I thank you very much, and I thank the 
Senator from Arkansas, not only for his courtesy in this matter, but 
for his leadership in this matter.
  It is apparent, the House of Representatives having voted in favor of 
most-favored-nation status for China, that anything we do by expressing 
ourselves in the Senate won't have a real impact in terms of denying 
that standing to China. But it is essential that we register the 
displeasure and dissatisfaction of this body with the conduct of China 
in three basic categories that I believe are an appropriate standard by 
which we would measure our relationship with a variety of nations.
  The first of those categories is gross trade inequities that China 
and the United States have. Some have said that most-favored-nation 
status is just general trading status. As it applies to China, it is 
most-favored status. We have a wide variety of other countries whose 
trading relationships with the United States are nearly on a parallel 
basis of balance. Not so with China.
  Second is that the military buildup in China threatens peace and 
stability, not only in the Pacific rim but around the world.
  And the third is that human rights abuses in China should be 
something we mention very clearly and we should express with deep 
conviction.
  The PRESIDING OFFICER. The Senator's time has expired.
  Mr. ASHCROFT. I thank the Chair.
  The PRESIDING OFFICER. Is there anybody who wishes to speak in 
opposition?
  Mr. McCONNELL. Mr. President, I ask unanimous consent that there be 2 
minutes of debate equally divided prior to each vote in the series 
following the first vote, which I gather will be momentarily.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Does anybody desire to speak in opposition to the amendment?
  Mr. BINGAMAN addressed the Chair.
  The PRESIDING OFFICER. The Senator from New Mexico.
  Mr. BINGAMAN. Mr. President, let me say one more word about the 
amendment with regard to most-favored-nation status for China.
  My own strong impression is that with regard to Russia and most of 
the other major nations we deal with, we

[[Page S7629]]

have a series of concerns that we deal with on a concern-by-concern 
basis, a case-by-case basis. And that is exactly what we should do.
  In the case of China, unfortunately, our debate has gotten to where 
it is sort of all or nothing, we are either going to have most-favored-
nation status or we are not. And that is a very blunt instrument with 
which to try to deal with a very important and complex relationship. I 
believe it would be a great mistake for us to deny most-favored-nation 
status to China.
  I hope very much the amendment is rejected.
  The PRESIDING OFFICER (Mr. Smith of Oregon). All time has expired.


                       Vote On Amendment No. 896

  The PRESIDING OFFICER. The question is on agreeing to amendment No. 
896 offered by the Senator from New Mexico, Senator Bingaman. The yeas 
and nays have been ordered. The clerk will call the roll.
  The assistant legislative clerk called the roll.
  Mr. NICKLES. I announce that the Senator from Montana [Mr. Burns] is 
necessarily absent.
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 38, nays 61, as follows:

                      [Rollcall Vote No. 183 Leg.]

                                YEAS--38

     Akaka
     Baucus
     Biden
     Bingaman
     Bond
     Boxer
     Breaux
     Bumpers
     Byrd
     Chafee
     Cleland
     Conrad
     Daschle
     Dodd
     Dorgan
     Durbin
     Feingold
     Feinstein
     Harkin
     Inouye
     Jeffords
     Johnson
     Kennedy
     Kerrey
     Kerry
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lugar
     Moseley-Braun
     Moynihan
     Murray
     Reed
     Roberts
     Sarbanes
     Wellstone
     Wyden

                                NAYS--61

     Abraham
     Allard
     Ashcroft
     Bennett
     Brownback
     Bryan
     Campbell
     Coats
     Cochran
     Collins
     Coverdell
     Craig
     D'Amato
     DeWine
     Domenici
     Enzi
     Faircloth
     Ford
     Frist
     Glenn
     Gorton
     Graham
     Gramm
     Grams
     Grassley
     Gregg
     Hagel
     Hatch
     Helms
     Hollings
     Hutchinson
     Hutchison
     Inhofe
     Kempthorne
     Kohl
     Kyl
     Lieberman
     Lott
     Mack
     McCain
     McConnell
     Mikulski
     Murkowski
     Nickles
     Reid
     Robb
     Rockefeller
     Roth
     Santorum
     Sessions
     Shelby
     Smith (NH)
     Smith (OR)
     Snowe
     Specter
     Stevens
     Thomas
     Thompson
     Thurmond
     Torricelli
     Warner

                             NOT VOTING--1

       
     Burns
       
  The amendment (No. 896) was rejected.
  Mr. McCONNELL. Mr. President, I move to reconsider the vote.
  Mr. LEAHY. I move to reconsider the vote.
  The motion to lay on the table was agreed to.
  Mr. McCONNELL. I ask unanimous consent that the next two votes be 
limited to 10 minutes in length each.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. McCONNELL. I ask unanimous consent at 11:30 the Senate proceed to 
consideration of Calendar 112, S. 1023, the Treasury, Postal 
appropriations bill.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                           Amendment No. 890

  The PRESIDING OFFICER. There are 2 minutes of debate equally divided 
on the amendment of the Senator from Arkansas.
  The Senator from Arkansas.
  Mr. HUTCHINSON. I ask unanimous consent Senator Feingold be added as 
a cosponsor to my bill
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. HUTCHINSON. Mr. President, Members can see the beautiful tie I am 
wearing today. It was manufactured in Little Rock, AR. It is a family 
business. The owner of the family business that manufactured this tie 
told me that the greatest threat to his economic viability is the 
unfair trade practices of Communist China.
  I ask you to vote for this sense-of-the-Senate resolution. Suffering 
is not a term of economics. You cannot add it up, you cannot deduct it, 
you cannot redeem it in dollars.
  Arguments for MFN always come down to dollars and cents. But to the 
average Chinese person, you can't build a wall, you can't separate the 
economics from the human rights violations that are going on. A product 
of slave labor is inexorably tied and linked to the shackled hands that 
made it.
  I ask my colleagues, think about the enslaved, think about the 
oppressed, think about the imprisoned today, think about that voice of 
freedom that has been silenced, think about that voice of freedom in 
prison today, and speak for that one who cannot speak for himself. 
Please vote for this amendment.
  Mr. MURKOWSKI. Mr. President, I urge my colleagues to vote against 
the pending sense-of-the-Senate resolu- tion that China's most-favored-
nation trading status should be revoked. This is the worst of all 
possible alternatives. Mr. President, you will recall that Teddy 
Roosevelt said speak softly and carry a big stick, well this resolution 
is just the opposite--it is speaking loudly, and carrying no stick. The 
traditional resolution of disapproval for MFN has already been defeated 
in the House of Representatives. So this vote has no force. In my view, 
that is the worst possible way to send a message to China.
  Much has been written that this year the debate over MFN is 
different, that the issues have changed, but I do not think the 
fundamental choice has changed: Do we choose engagement--striving to 
bring China into the international community on terms we support--or 
isolation--allowing China to enter the international arena on terms 
beyond our control. I think the answer is obvious.
  MFN should be renewed unconditionally not because it is a reward to 
the Government of China, but because revocation of MFN hurts the very 
people we want to help. We have many grave concerns with China ranging 
from the treatment of dissidents and Christians to weapons 
proliferation. But severing economic ties is not the right tool to 
address these issues. Revoking MFN only succeeds in hurting Americans, 
hurting reformers, and hurting the people of Hong Kong and Taiwan.
  But what I have to say about linking MFN to Hong Kong's future is far 
less important than what the people of Hong Kong themselves have told 
lawmakers. Martin Lee, Hong Kong's leading democrat described revoking 
MFN as punishing Hong Kong. Miss Denise Yue, Hong Kong's Secretary for 
Trade and Industry, best described the threat of MFN revocation as 
double jeopardy, ``[K]nowing that if China takes away their freedoms, 
the United States will respond by taking away their jobs . . .'' 
Similarly, Hong Kong's Chief Executive designee Tung Chee Hwa has 
stressed that unconditional renewal of MFN is in the best interests of 
Hong Kong.
  So I think we should listen very carefully to what those who live and 
work in Hong Kong have said, rather than pretending we know better.
  This also applies to the Chinese on the other side of the strait--the 
people of Taiwan. This year, as in past years, the Government of Taiwan 
is quietly supporting the renewal of normal trading ties. One has only 
to look at investment in Southern China to understand that cutting 
economic ties between the United States and the People's Republic of 
China will have a significant and negative economic impact on Taiwan. 
Taiwan companies and individuals have invested more than $30 billion in 
over 30,000 enterprises.
  My colleagues should also take note that the board of the United 
States-Republic of China (Taiwan) Business Council, a collection of 
American companies doing business in Taiwan, unanimously adopted a 
resolution supporting renewal of MFN. The council noted that ``renewing 
MFN for China is good for the United States in its business with China, 
with Taiwan, and with Hong Kong.''
  Supporters of Taiwan, and I put myself firmly in that category, 
should also look at the history of the United States relationship with 
Taiwan, before rejecting the claim that economic liberalization leads 
to political liberalization.
  This United States commitment to the people of Taiwan was 
indispensable to the development of the economic and democratic miracle 
that is Taiwan today. This was not always the case. Martial law lasted 
from 1950 to 1987. During that period, individual rights and freedoms 
were stifled and political opposition was silenced. Yet, today, once 
imprisoned opposition leaders such as Peng Ming-min have been released. 
In fact, Peng was the DPP's

[[Page S7630]]

Presidential candidate in last year's March election.
  During this less than free and open period, the United States stood 
by Taiwan, maintained normal trading relations, and gave the Republic 
of China economic aid. Most historians agree that United States aid and 
investment served to enhance market-oriented economic reforms that 
contributed to rising living standards and expanded economic freedoms, 
and injected a liberalizing influence into Taiwanese society. But the 
transition to an open, democratic society took 50 years on an island of 
20 million, and was the first democracy in 5,000 years of Chinese 
history.
  Of course, Taiwan's success also depended on a leadership decision to 
reform the political structure. We certainly cannot predict what 
direction the People's Republic of China leadership will take the 1.2 
billion mainland Chinese, but we can follow the formula that has worked 
before.
  Hong Kong's and Taiwan's freedom and power as a model for China's 
future evolution rests on continued economic vibrancy. U.S. policy 
should strive to maintain confidence, not destroy it.
  I hope that next year we can have a more constructive debate over 
whether this annual exercise should be scrapped in favor of a deal to 
grant permanent MFN status for China if they make the necessary 
commercial concessions to enter the World Trade Organization.
  The yearly exercise of public handwringing over MFN renewal has 
proven a liability to a coherent China policy. MFN was never intended 
to serve as a weapon of punishment for every problem we have with 
nonmarket economies. Its original purpose of guaranteeing freedom of 
emigration from the former Soviet Union has been grossly distorted, and 
I would say without achieving any positive results. But there is a time 
for everything, and unfortunately now is not the time to push permanent 
MFN.
  Integrating China into the international community poses great risks 
and equally great opportunities. If we continue down the road of 
inconsistency and fail to deal honestly with the Chinese, in concert 
with our allies, and based on a clear understanding of the United 
States national interest, we will have failed the sacred trust of the 
Nation.
  The United States-China relationship is pivotal to the continued 
security and prosperity of Asia and America. We must ground that 
relationship in the solid foundation of the U.S. national interest--
ensuring stability and security in Asia to limit the potential for 
conflict and tension and to provide fertile soil for democracy and 
economic prosperity. We must also work together with our Asian allies 
to design and raise its frame; their future is as much at stake as our 
own.
  Mr. McCONNELL. Mr. President, let me say that no one in Hong Kong is 
in favor of terminating MFN to China--not the democrats, not the 
reformers, no one. I don't think there is any chance that China will 
change without continued economic engagement.
  Therefore, Mr. President, I hope that the Hutchinson amendment will 
not be approved.
  Mr. SARBANES. Will the Senator yield for a question?
  The PRESIDING OFFICER. Does the Senator from Kentucky yield time?
  Mr. McCONNELL. I yield for a question.
  Mr. SARBANES. My understanding is that amendment does not terminate 
MFN.
  Mr. McCONNELL. It is a sense-of-the-Senate amendment.
  Mr. SARBANES. It's virtual reality. I might vote for an amendment on 
substance, but this doesn't do that; is that correct?
  Mr. McCONNELL. That is correct, I say to the Senator from Maryland.
  Mr. BAUCUS. Mr. President, I rise in opposition to the Hutchinson 
amendment, which is a sense-of-the-Senate resolution stating that we 
should revoke China's most-favored-nation status.
  MFN status should not be a political issue. It is nothing more than 
the normal trade status we give virtually all our trade partners. But 
if we are to consider MFN a political issue, a look at the facts shows 
that MFN for China is legally right; it is morally right; and it is 
right for our American national interest.
  Why? First, and most simply, renewal of MFN status is right under our 
law.
  The Jackson-Vanik law has governed renewal of MFN status for non-
market economies since 1974. It conditions MFN on two things--the 
existence of a bilateral commercial agreement and freedom of 
emigration. And under the law, the President's choice is clear. We have 
a bilateral trade agreement signed with China in 1980. And China allows 
free emigration. Therefore, as a legal matter, the President was right 
to renew MFN and we should back him up.
  Second, renewing MFN status is morally right.
  At times people in Washington are tempted to see a vote to revoke MFN 
as something which might promote human rights in China. That is a fine 
sentiment. Senator Hutchinson's remarks indicate that human rights is 
the central reason he wants to revoke MFN status. But while those who 
advocate revoking MFN status to promote human rights are well-
intentioned, if we actually went ahead and revoked MFN status we would 
see the opposite of what they intend.
  To revoke MFN status, very simply, is to raise tariffs from Uruguay 
round to Smoot-Hawley levels. To take one example, that means raising 
tariffs on toys and stuffed animals from zero to 70 percent overnight. 
That hits one of China's major exports to the United States, at about 
$6 billion worth last year. And who makes them? On the whole, young 
Chinese working people trying to improve their lives.
  What will happen if we revoke MFN status? The result should be 
obvious. Millions of innocent Chinese workers in toy factories and 
other walks of life would lose their jobs. The Chinese Government would 
certainly be hurt, but the lives of these workers would be ruined.
  So, far from improving human rights, revoking China's MFN status 
would cause immense human suffering. And as the Senator said, we would 
be sending the Chinese people a message with his resolution. But it 
would not be a message of support--it would be a threat to put them out 
of work.
  And of course, that would discredit our human rights efforts with the 
Chinese public. No rational person can expect anyone in China to thank 
us for harming their economy and inflicting misery on them, their 
families, or their fellow citizens.
  By contrast, if human rights is our motivation, MFN is an 
irreplaceable part of any effective policy. As the Democracy Wall 
activist Wang Xizhe--until recently a political prisoner--says:

       * * * the goal of exerting effective, long-term influence 
     over China can only be achieved by maintaining the broadest 
     possible contacts with China, on the foundation of MFN, thus 
     causing China to enter further into the global family and to 
     accept globally practiced standards of behavior.

  A long-term policy may emotionally be hard to accept. There are real 
human rights problems in China. About 3,000 political prisoners remain 
in jail.
  Strict limits on freedom of assembly. Very severe policies in Tibet. 
The Senator from Arkansas is right to be concerned about these issues. 
We would like to solve them all in a day. But the fact is, that won't 
happen. This resolution will not help us solve these problems. Only by 
staying involved, through trade and human exchange as well as 
diplomacy, can we hope to make a difference.
  Finally, we are Americans first and we are responsible to the 
American public on our policy decisions. And renewing MFN status is 
right for our own national interest.
  And let me give perhaps the most important example. I visited Seoul, 
South Korea, and Pyongyang, North Korea, during the last Memorial Day 
recess. And I can say from firsthand experience that we have a very 
complex, very dangerous situation at hand in the Korean Peninsula.

  North Korea is a politically isolated government, with very severe 
food and economic problems, and a large and well-armed military 
machine. We just considered an amendment addressing the most recent 
provocation by North Korea. We have a commitment to joint defense of 
South Korea, and 37,000 men and women permanently on the line just a 
few miles south of the DMZ.
  I spoke with their Supreme Commander, General Tilelli. I met with

[[Page S7631]]

some of the enlisted men. I got a threat briefing from a young Army 
major from Wolf Point, MT.
  If you go there, you know how seriously these men and women take the 
responsibility we have given them. You see it in their faces. It is a 
very dangerous place. And we here in the Senate owe it to them to 
pursue a very serious, responsible policy that can keep the peace, and 
ensure a swift victory if, God forbid, there is any conflict.
  Chinese cooperation is absolutely essential to that. China is the 
largest country, with the most powerful army, in the region. It is 
probably the only country that can help make sure the North Korean 
Government understands the realities on the peninsula. It has played a 
critically important role in restraining North Korean military 
aggression and in preventing nuclear proliferation. And deliberately 
antagonizing the Chinese Government and armed services by continually 
threatening to revoke MFN will not help at all.
  You can go on from there to many other issues. Take trade. We need a 
more fair, more reciprocal, better trade relationship with China. We 
have an opportunity to do that this year by bringing China into the 
World Trade Organization on a commercially acceptable basis. Cutting 
off MFN status would put us on the opposite track--it would balance 
trade at close to zero, cutting off jobs and prosperity here as well as 
in China.
  And as we look into the next century, we must work to slow global 
warming, ocean pollution, and loss of biodiversity. To take just one 
statistic, in the next 20 years, world greenhouse emissions will grow 
from 6 to 9 trillion tons a year. Fully 1 trillion of the additional 3 
trillion tons will come from China.
  We have a chance now to moderate that trend. And a political crisis 
caused by revoking MFN would make that mutually beneficial effort very 
difficult.
  Our own common sense should tell us China is a key player on all 
these issues. Wantonly picking a fight with the world's largest country 
by revoking MFN status, when only six countries in the world lack MFN 
status and we give 151 countries and territories tariff rates better 
than MFN, would be foolish.
  And our allies tell us the same thing. During my trip last May, I met 
top national security officials in the South Korean Government. I spoke 
with senior officers of the Japanese Self-Defense Forces. And I met 
with Chinese dissidents and democratic political leaders in Hong Kong.
  These are our friends. Our strategic allies. People we work with 
every day. People who wish us well. Not a single one of them supported 
revoking MFN status. Not a single one.
  The right course to take is very clear. We should reject the 
Hutchinson amendment.
  Thank you, Mr. President.
  The PRESIDING OFFICER. All time has expired on the amendment.
  The question is on agreeing to the amendment of the Senator from 
Arkansas.
  The yeas and nays have been ordered.
  The clerk will call the roll.
  The legislative clerk called the roll.
  Mr. NICKLES. I announce that the Senator from Montana [Mr. Burns] is 
necessarily absent.
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 22, nays 77, as follows:

                      [Rollcall Vote No. 184 Leg.]

                                YEAS--22

     Ashcroft
     Campbell
     Coats
     Collins
     D'Amato
     DeWine
     Faircloth
     Feingold
     Helms
     Hollings
     Hutchinson
     Inhofe
     Kyl
     Leahy
     Levin
     Mack
     Sessions
     Smith (NH)
     Snowe
     Thompson
     Torricelli
     Wellstone

                                NAYS--77

     Abraham
     Akaka
     Allard
     Baucus
     Bennett
     Biden
     Bingaman
     Bond
     Boxer
     Breaux
     Brownback
     Bryan
     Bumpers
     Byrd
     Chafee
     Cleland
     Cochran
     Conrad
     Coverdell
     Craig
     Daschle
     Dodd
     Domenici
     Dorgan
     Durbin
     Enzi
     Feinstein
     Ford
     Frist
     Glenn
     Gorton
     Graham
     Gramm
     Grams
     Grassley
     Gregg
     Hagel
     Harkin
     Hatch
     Hutchison
     Inouye
     Jeffords
     Johnson
     Kempthorne
     Kennedy
     Kerrey
     Kerry
     Kohl
     Landrieu
     Lautenberg
     Lieberman
     Lott
     Lugar
     McCain
     McConnell
     Mikulski
     Moseley-Braun
     Moynihan
     Murkowski
     Murray
     Nickles
     Reed
     Reid
     Robb
     Roberts
     Rockefeller
     Roth
     Santorum
     Sarbanes
     Shelby
     Smith (OR)
     Specter
     Stevens
     Thomas
     Thurmond
     Warner
     Wyden

                             NOT VOTING--1

       
     Burns
       
  So the amendment (No. 890) was rejected.


                          Indonesia Provisions

  Mr. FEINGOLD. Mr. President, as someone gravely concerned with the 
human rights situation in East Timor, I am pleased to see strong 
language regarding military sales to Indonesia included in the foreign 
operations appropriations. I would like to commend the managers of the 
bill, the Senator from Kentucky [Mr. McConnell] and the Senator from 
Vermont [Mr. Leahy], for including this provision.
  The bill states that any agreement to sell, license for export, or 
transfer lethal military equipment or helicopters to Indonesia must 
include a statement that these items will not be used in East Timor.
  I am pleased with this language because it is important to remind 
Indonesia that Congress is still very concerned about the situation in 
East Timor. The May 29 Indonesian elections spurred new violence in 
East Timor. In the weeks surrounding the voting, fighting between 
Indonesian troops and East Timorese rebels resulted in dozens of 
casualties on both sides. These deaths were only the latest in the 
troubled region, which has been occupied by Indonesia since 1975. Human 
rights monitors estimate that as many as 200,000 East Timorese have 
died since the occupation.
  Mr. President, as we all know, the Indonesian Government announced 
last month that it was no longer interested in participating in IMET or 
purchasing F-16 fighters. Congress should not relax our scrutiny of 
Indonesia's human rights practices and policies in East Timor just 
because these high-profile deals have been canceled.
  Human rights organizations have expressed concerns that helicopters 
may be used against civilians in East Timor. Thus it is important to 
ensure that any such hardware provided by the United States is not used 
for internal repression. Certainly the answer to the East Timor problem 
does not lie in further arming the Indonesian military and police 
forces. Thus I am also pleased that the administration has reaffirmed 
its existing policy of precluding the sale to Indonesia of small arms, 
riot control equipment, and armored personnel carriers.
  The bill's provision strengthens this policy, reflecting Congress' 
continued concerns.


                                 LIBYA

  Ms. MIKULSKI. Mr. President, I am proud to cosponsor the Lautenberg 
amendment to cut foreign aid to any country that violates U.N. 
sanctions against Libya. You cannot seek to undermine important 
policies of the United States and expect to receive economic 
assistance.
  The international community imposed sanctions on Libya because of 
their failure to extradite their intelligence agents who were indicted 
for the bombing of Pan Am 103 over Lockerbie, Scotland. This one act of 
terrorism cost the lives of 270 people.
  Libya provides sanctuary to their murderers. Yet Egypt--which 
receives billions of dollars of United States aid--has allowed Libyan 
airlines to land on their soil. They also attempted to weaken U.N. 
sanctions and even to build a free trade zone with Libya.
  The families of those murdered on Pan Am 103 need no reminder of why 
we have sanctions on Libya. They live with this tragedy every day of 
their lives. Seven people from Maryland died in this tragedy. They were 
Michael Bernstein, Jay Kingham, Karen Noonan, Ann Lindsey Otenasek, 
Lousie Rogers, Miriam Wolf, and Jordy Williams.
  They were so young. They were college students, a young Army 
lieutenant, a businessman and a lawyer. They were sons, daughters, and 
fathers. We swore that we would never forget them. We would improve 
airline safety, we would fight terrorism--and most importantly, we 
would seek justice.
  One of the victims, Michael Bernstein, was a renowned Nazi hunter

[[Page S7632]]

working for the Justice Department. Throughout his life, he sought 
justice for the victims of the Holocaust. How tragic that his family 
has not yet had justice.
  His wife continues to seek justice. I ask unanimous consent that 
Stephenie Bernstein's letter to the Egyptian Ambassador be printed in 
the Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                                                 Bethesda, MD,

                                                    July 16, 1997.
     Ambassador Ahmed Maher El-Sayed,
     Embassy of Egypt,
     Washington, DC.
       Dear Mr. Ambassador: During the last few years I have 
     expressed my views to you, both in writing and in a meeting 
     with you at the embassy, about Egypt's position on the 
     Lockerbie bombing. I am writing now to express my concern to 
     you about the disturbing events which took place last week at 
     the United Nations Security Council during the discussions on 
     renewing the sanctions imposed on Libya for its refusal to 
     turn over the suspects wanted in the bombing. As you may 
     remember, my husband, Michael S. Bernstein, was one of the 
     270 people murdered.
       To learn that Egypt, an ally of the United States, 
     requested measures leading to removal of the sanctions 
     against Libya is appalling. The request made by Egypt to 
     convene a special meeting of the Security Council to consider 
     outlandish proposals such as trying the suspects in a neutral 
     country, trying them before Scottish judges in The Hague, or 
     establishing a special court to try the cases is not the 
     behavior of a country which is a friend of the United States, 
     189 of whose citizens were murdered in the Lockerbie 
     disaster.
       The suspects wanted in this heinous crime of mass murder 
     have been indicted by the United States and Scotland. The 
     only acceptable locations for their trial are in the 
     countries which brought the indictments against them. Over 
     the years your country, a leader in the Arab world, has 
     repeatedly promoted what Ambassador Nabil Elaraby called last 
     week ``alternative venues'' for a trial. He referred to the 
     suffering of ``the innocent people of Libya, the innocent 
     people of neighboring countries.'' Pointedly, the Ambassador 
     ignored the continuous suffering of those whose loved ones 
     were so brutally murdered. The way to end the inconvenience 
     posed by the sanctions for Libya and its neighbors is for the 
     suspects to be turned over for trial in either the United 
     States or Scotland.
       Egypt's misguided efforts last week and in the years after 
     the murders have unfortunately undermined the quest for 
     justice, and given hope to the Libyans and others who sponsor 
     terrorism that their murderous acts will go unpunished. When 
     Libya's U.N. ambassador can say, as he did during last week's 
     debate that ``we can from now on behave as if these sanctions 
     were not there,'' he has been given hope by Egypt that 
     something short of full compliance with basic principles of 
     law and decency will extricate his country from the troubles 
     which its leader has brought upon his people.
       I am appalled that my government continues to give billions 
     of dollars to a country which has so openly sought to 
     undermine international law. Please be assured that other 
     family members of those murdered in the Lockerbie bombing and 
     I will work tirelessly to see that U.S. aid to Egypt does not 
     continue at the present level.
       On August 18, 1994, you wrote me that Egypt's position on 
     the Lockerbie bombing is based on ``The total respect and 
     adherence to the U.N. resolutions concerning Libya.'' The 
     actions taken by Egypt last week demonstrated a complete lack 
     of regard for the U.N. resolutions, for the family members of 
     those murdered, and lastly for the United States.
           Sincerely,
                                           Stephanie L. Bernstein.

  Ms. MIKULSKI. Mr. President, the Senate chose to reinstate the 
earmark for aid to Egypt. They cannot assume that we will continue to 
do this unless they become partners in the fight against terrorism.


             China MFN Renewal and Proliferation Violations

  Mr. BIDEN. Mr. President, I want to explain why I voted against the 
amendment offered by the Senator from Arkansas, [Mr. Hutchinson] 
calling for a revocation of China's most-favored-nation trading status. 
Revoking China's nondiscriminatory trading status is not a silver 
bullet we can fire to address our many legitimate concerns with China. 
MFN is ill-suited to carry single-handedly the burdens of our complex 
and multifaceted relationship.
  Yet, simply extending China's most-favored-nation status does little 
to advance our interests with China. Moreover, it does nothing to 
address those areas where China's conduct is inconsistent with 
international norms or in violation of their bilateral commitments.
  In short Mr. President, engagement with China is not a policy, it is 
just a means to an end. It is the content of the engagement that 
matters.
  In the area of nonproliferation, for all of our engagement, China's 
conduct clearly remains unacceptable.
  Just last May, the State Department belatedly imposed sanctions on 
two key Chinese chemical firms--Nanjing Chemical Industries Group and 
Jiangsu Yongli Chemical Engineering and Technology Import Export 
Corp.--that knowingly and materially contributed to Iran's chemical 
weapons program.
  If this case were the lone exception, it would still be troubling. 
Unfortunately, it appears to be the norm.
  China has knowingly aided the development of weapons of mass 
destruction, and the means to deliver them, in irresponsible states or 
in countries located in unstable regions of the world. China has 
provided nuclear technology, cruise missiles, and ballistic missile 
technology to Iran. China has also exported M-11 missiles--which can be 
equipped with nuclear warheads--and missile production know-how to 
Pakistan.
  These exports appear to be part of a deliberate government policy 
that traces its roots to the ancient Chinese strategy of balancing one 
barbarian off against another, and we may be one of the barbarians 
Beijing has in mind.
  A critical objective of our relationship with China must be to 
convince Beijing not only to sign up to international nonproliferation 
regimes, but to follow through on its commitments.
  In general, we should: stick to incentives and penalties we are 
prepared to deliver; act multilaterally, where possible, to avoid 
having our initiatives undercut; and replace our once-a-year debate on 
MFN with a sustained, high-level commitment to improving our overall 
relationship.
  I hope that diplomatic pressure, international suasion, and targeted 
sanctions will change Beijing's attitude toward nonproliferation. 
Chinese compliance with international regimes appears to improve when 
they are convinced that officials at the highest levels of the U.S. 
Government are scrutinizing their behavior.
  But my patience is not limitless.
  My vote today should not be interpreted as an expression of my 
satisfaction with China's behavior or the administration's policy of 
engagement. Moreover, it should not be viewed as an indication of how I 
might vote when MFN comes up for renewal next year.
  If China fails to clean up its act, it may leave me no choice but to 
vote to revoke MFN. Sending a strong message--knowing full well that it 
won't miraculously bring about positive changes in China--may prove 
preferable to doing nothing while China makes the world a more 
dangerous place.
  The PRESIDING OFFICER. The Senator from Kentucky.
  Mr. McCONNELL. Mr. President, I ask unanimous consent that Senators 
McCain and Murray be added as cosponsors to amendment No. 892.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. McCONNELL. I also ask unanimous consent that Senator Brownback be 
added as a cosponsor to Senator Smith's amendment numbered 889.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. McCONNELL. Also I believe we do not have the yeas and nays on 
final passage.
  The PRESIDING OFFICER. The yeas and nays have not been ordered.


                     Amendment No. 915, as Modified

  Mr. LEAHY. Mr. President, I ask consent to modify amendment 915. I 
send the corrections to the desk.
  The PRESIDING OFFICER. The amendment is so modified.
  The amendment (No. 915), as modified, is as follows:

       On page 43, line 3 after the word ``(IAEA),'' insert the 
     following new section:

     SEC.  . AUTHORIZATION REQUIREMENT FOR INTERNATIONAL FINANCIAL 
                   INSTITUTIONS.

       (a) The Secretary of the Treasury may, to fulfill 
     commitments of the United States, (1) effect the United 
     States participation in the first general capital increase of 
     the European Bank for Rconstruction and Development, 
     subscribe to and make payment for 100,000 additional shares 
     of the capital stock of the Bank on behalf of the United 
     States; and (2) contribute on behalf of the United States to 
     the eleventh replenishment of the resources of the 
     International Development Association, to the sixth 
     replenishment of the resources of the Asian Development Fund, 
     a special fund of the Asian Development Bank. The following 
     amounts are authorized to be appropriated without fiscal

[[Page S7633]]

     year limitation for payment by the Secretary of the Treasury: 
     (1) $285,772,500 for paid-in capital, and $984,327,500 for 
     callable capital of the European Bank for Reconstruction and 
     Development; (2) $1,600,000,000 for the International 
     Development Association; (3) $400,000,000 for the Asian 
     Development Fund; and (4) $76,832,001 for paid-in capital, 
     and $4,511,156,729 for callable capital of the Inter-American 
     Development Bank in connection with the eighth general 
     increase in the resources of that Bank. Each such 
     subscription or contribution shall be subject to obtaining 
     the necessary appropriations.
       (b) The authorizations under this section are subject to 
     the Senate Foreign Relations Committee reporting out an 
     authorizations bill.
       Strike subsection (b) of amendment #915, and insert in lieu 
     thereof the following:
       On page 38, line 17, strike ``$950,000,000'' and insert in 
     lieu thereof ``$1,034,500,000''.
       On page 38, line 18, strike ``$150,000,000'' and insert in 
     lieu thereof ``$234,500,000''.
       On page 40, line 14, strike ``$140,000,000'' and insert in 
     lieu thereof ``$150,000,000''.
       On page 40, line 14, strike ``$40,000,000'' and insert in 
     lieu thereof ``$50,000,000''.

                   Africa Crisis Response Initiative

  Mr. FEINGOLD. Mr. President, I would like to ask the Senator from 
Kentucky about committee report language directing that no peacekeeping 
funds be made available for the Africa crisis response initiative 
[ACRI]. I understand the House version of this bill and the 
accompanying report contain no such restrictions.
  I understand further that the Committee on Appropriations has raised 
several concerns about this initiative which are currently being 
resolved by the administration.
  Therefore, I wonder if the distinguished chairman of the Subcommittee 
on Foreign Operations will be looking to support the House mark in the 
peacekeeping account and to revise the report language in conference to 
reflect this change, along with continuing concerns.
  Mr. McCONNELL. The Senator from Wisconsin is correct. I have had some 
strong reservations about the potential duplication of this initiative 
with respect to other military assistance programs of the United States 
and of other countries, as well as about the role of the United Nations 
in the initiative. Both the Departments of Defense and of State have 
been cooperative in addressing these potential problems.
  Mr. FEINGOLD. I thank the Senator from Kentucky for his cooperation 
on this matter. I want to take a few moments to express my views on the 
ACRI.
  Mr. President, I was disappointed to read in the report on this bill 
that the Committee on Appropriations directed ``that no funds be made 
available for the Africa Crisis Response Force,'' an earlier title of 
what the administration now refers to as the Africa Crisis Response 
Initiative [ACRI]. This language would prohibit the administration's 
flexibility to use up to $15 million of the peacekeeping account for 
this initiative.
  The ACRI, in my view, is an inventive proposal on the part of the 
administration. It seeks to expand the capacity of qualified African 
militaries to respond to peacekeeping needs in Africa by merging the 
resources of the United States and several of our European partners to 
provide peacekeeping training. The ACRI would help create effective, 
rapidly deployable peacekeeping units that would be able to operate 
together. Such an initiative could ultimately reduce the burden on U.S. 
resources in the event of a major humanitarian or other crisis in the 
region.
  Let me elaborate on what we are talking about. The Africa Crisis 
Response Initiative would provide training to selected African 
militaries to raise their capabilities to a common peacekeeping 
standard derived from United States, British, Nordic, and United 
Nations doctrine. In most cases, this will involve intensive training 
over a 2-month period in any single country, and will include important 
train-the-trainer activities so that additional instruction may take 
place after the international representatives have departed.
  Troops will be trained in tasks common to peacekeeping operations and 
on how to utilize common communications equipment. Equally as 
important, they will also receive instruction in civil-military 
relations and respect for human rights. U.S. trainers intend to use 
nongovernmental and private voluntary organizations in the training 
where possible. Any equipment that is provided to the participating 
countries would be nonlethal in nature and could include items to 
support mine detection, water purification, or night vision.
  Already several African countries have told United States officials 
they would like to participate in the ACRI, including Ethiopia, Uganda, 
Ghana, Mali, Senegal, and Malawi. Senegal and Uganda will begin 
training at the end of this month. It is also important that the 
Secretaries General of the United Nations and the Organization for 
African Unity have indicated their support. I should also note that 
this proposal is strongly supported by the U.S. Joint Staff and by our 
military command in Europe--the United States European Command [EUCOM].
  The ACRI proposal appeals to me because it provides a mechanism 
through which the United States can both contribute to the resolution 
of crises in the region, while at the same time, help ensure that the 
United States will not bear the total burden of doing so. By having 
ready, trained troops on the ground in Africa, the ACRI would decrease 
the time it takes to respond to local crises. But most importantly, if 
the proposal is implemented as intended, it would decrease the amount 
of outside support the Africans would require and preclude the need to 
send American combat troops to the region when there is a crisis. The 
ACRI is a means to provide appropriate African governments with a 
capacity they have said they want--the capability to respond to 
regional crises.
  This is a concept that I have been pondering for several years. A 
1994 trip to Liberia later heightened my interest. At the time, many 
observers were convinced that the only way to solve the crisis in 
Liberia, a country wracked with civil war since 1989, was to deploy a 
large force of American soldiers to stop the fighting and then maintain 
the peace.
  Like many other Americans, I opposed the deployment of American 
troops for this purpose. But I became intrigued with an alternative 
that had been employed in Liberia since 1990--an all African 
peacekeeping force. This force, the West African peacekeeping force 
known by its French acronym ECOMOG, has not--by any definition--been a 
perfect mission, and has certainly had its share of problems. But after 
many fits and starts, ECOMOG troops have succeeded in establishing 
security in the country such that Liberians will have the opportunity 
to safely go to the polls this weekend to participate in an important 
national election. The United States has made important contributions 
to this effort in the form of airlift and other logistical support to 
ECOMOG.
  While I do not want to put too much reliance in the ECOMOG experience 
itself, since its record has been mixed, I think we can draw at least 
two important lessons. First, African governments do want to contribute 
to maintaining peace in neighboring countries. Second, the United 
States can support those efforts by sharing our strengths in areas such 
as technical assistance, logistics, and communications, for example. 
Our European partners would make similar contributions.
  That is what this proposal is all about. It is a cooperative effort 
to which all participants contribute.
  Despite my enthusiasm for this initiative, Mr. President, I would 
also caution the administration on the tough choices it may soon have 
to make with respect to which countries can and should be invited to 
participate in the ACRI. When the administration first explored this 
proposal, it presented its preliminary ideas to 10 governments. These 
countries were understood to have excellent relations with the United 
States, as well as relatively disciplined militaries and democratic 
governments. It is my view that such qualities should represent the 
minimum standards for the United States to engage in the high-level 
military contact envisioned by the ACRI proposal.
  As beneficial as the ACRI will be for the United States, it is also 
beneficial for the African countries involved. Congress will look 
harshly at any decisions that might be made to work with a government 
that has come to power through military action or that abuses

[[Page S7634]]

the rights of its citizens. I have concerns in particular about the 
possibility of including the Government of Nigeria in this initiative. 
While I recognize the strength of Nigeria's military and the important 
contribution it has made to the peacekeeping effort in Liberia, the 
Government's continued disdain for the needs of its people and 
continued human rights abuses I believe should preclude it from 
participation in the ACRI.
  Mr. President, in the long term, the administration anticipates that 
the trained and ready forces that have benefited from the ACRI will be 
able to respond quickly to crises in the region with African troops led 
by Africans. Although I can foresee that the international community 
might still be called upon to provide logistics assistance in certain 
cases, I believe strongly that technical assistance of that nature is 
an appropriate response for the United States.
  With the rising number of conflicts in the post-cold-war era, 
American troops are being called on more than ever to participate in 
peacekeeping operations that just are not tenable. The ACRI provides a 
creative way to respond to these demands while decreasing the need to 
deploy our own men and women.
  Mr. President, I hope the conferees will agree on funding and 
language that will allow the administration to continue to pursue this 
creative approach to crisis intervention in Africa. The ACRI 
strengthens regional abilities to respond in a rapid and effective 
manner, rather than calling for direct United States or European 
intervention.


            INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT

  Mr. DORGAN. Mr. President, I rise to ask whether the distinguished 
ranking member, Senator Leahy, would be willing to engage in a colloquy 
with me about the International Fund for Agricultural Development, or 
IFAD.
  Mr. LEAHY. Mr. President, I would be happy to engage in a colloquy 
with the Senator about the good work that IFAD does.
  Mr. DORGAN. Mr. President, I thank the ranking member.
  As my colleague knows, IFAD is a specialized agency of the United 
Nations that has the mission of fighting hunger and poverty throughout 
the world. Since 1977 IFAD has helped rural poor to increase their 
nutrition, their food production and their income. It has reached about 
160 million people through 429 different projects, mostly in Africa and 
Asia, the regions where most of the world's poor live. In its lending 
work, IFAD has an overhead of less than 10 percent, and it has achieved 
loan repayments of 97 percent in countries as diverse as Bangladesh, 
Benin, and Dominica.
  More importantly, IFAD has been an innovator in providing microcredit 
to vulnerable groups that are often difficult to reach, such as small 
farmers, the landless poor and rural women.
  Mr. President, that is why I was interested to read language related 
to IFAD in the report of the House Appropriations Committee on the 
House's version of the foreign operations bill. I was pleased to read, 
on page 18 of the House report, that the House Appropriations Committee 
``requests that AID [the Agency for International Development] examine 
the possibility of using the International Fund for Agricultural 
Development as an implementing agency in providing microenterprise 
assistance.''
  This is in the context of the House's $10 million increase over the 
administration's request for the AID microenterprise account. As my 
colleague knows, the Senate Appropriations Committee has increased the 
same account by $15 million.
  Mr. President, I wonder whether my distinguished colleague could tell 
me whether he would support the House position in conference, that the 
Agency for International Development should consider using IFAD as one 
of the implementing agencies in providing microenterprise assistance.
  Mr. LEAHY. Mr. President, I concur with the Senator from North Dakota 
on this matter. The International Fund for Agricultural Development has 
supplied nearly 300 microfinance projects with almost $1 billion of 
funding. I am particularly pleased that 40 percent of these projects 
have been in sub-Saharan Africa, where the need for this type of 
assistance is greatest.
  It seems to me that the Agency for International Development should 
certainly consider using IFAD's capabilities. I therefore will likely 
support the House position on this matter and urge the conferees to 
include appropriate language in the statement of managers accompanying 
the conference report.
  Mr. DORGAN. I greatly appreciate the support of the Senator from 
Vermont in this matter. I look forward to working with him to ensure 
that the conference report provides appropriate guidance to the Agency 
for International Development with respect to IFAD. I thank the 
distinguished ranking member for his assistance, and I yield the floor.
  The PRESIDING OFFICER. The question is on third reading of the bill.
  The bill was ordered to be engrossed for a third reading, and was 
read the third time.
  Mr. McCONNELL. Mr. President, I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The yeas and nays were ordered.
  The PRESIDING OFFICER. Do Senators yield back their time prior to the 
vote?
  Mr. McCONNELL. I yield any time.
  Mr. LEAHY. I yield any time.
  The PRESIDING OFFICER. The question is, Shall the bill, as amended, 
pass? On this question, the yeas and nays have been ordered, and the 
clerk will call the roll.
  The bill clerk called the roll.
  Mr. NICKLES. I announce that the Senator from Montana [Mr. Burns] is 
necessarily absent.
  I further announce that, if present and voting, the Senator from 
Montana [Mr. Burns] would vote ``yea.''
  The PRESIDING OFFICER (Mr. Santorum). Are there any other Senators in 
the Chamber who desire to vote?
  The result was announced--yeas 91, nays 8, as follows:

                      [Rollcall Vote No. 185 Leg.]

                                YEAS--91

     Abraham
     Akaka
     Allard
     Baucus
     Bennett
     Biden
     Bingaman
     Bond
     Boxer
     Breaux
     Brownback
     Bryan
     Bumpers
     Campbell
     Chafee
     Cleland
     Coats
     Cochran
     Collins
     Conrad
     Coverdell
     D'Amato
     Daschle
     DeWine
     Dodd
     Domenici
     Dorgan
     Durbin
     Enzi
     Feingold
     Feinstein
     Ford
     Frist
     Glenn
     Gorton
     Graham
     Gramm
     Grams
     Grassley
     Gregg
     Hagel
     Harkin
     Hatch
     Hutchinson
     Hutchison
     Inhofe
     Inouye
     Jeffords
     Johnson
     Kennedy
     Kerrey
     Kerry
     Kohl
     Kyl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lott
     Lugar
     Mack
     McCain
     McConnell
     Mikulski
     Moseley-Braun
     Moynihan
     Murkowski
     Murray
     Nickles
     Reed
     Reid
     Robb
     Roberts
     Rockefeller
     Roth
     Santorum
     Sarbanes
     Sessions
     Shelby
     Smith (OR)
     Snowe
     Specter
     Stevens
     Thomas
     Thompson
     Thurmond
     Torricelli
     Warner
     Wellstone
     Wyden

                                NAYS--8

     Ashcroft
     Byrd
     Craig
     Faircloth
     Helms
     Hollings
     Kempthorne
     Smith (NH)

                             NOT VOTING--1

       
     Burns
       
  The bill (S. 955), as amended, was passed, as follows:

                                 S. 955

       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, 1998, 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-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.

[[Page S7635]]

                         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, $700,000,000 to 
     remain available until September 30, 1999: 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 2013 for the disbursement of direct loans, 
     loan guarantees, insurance and tied-aid grants obligated in 
     fiscal years 1998 and 1999: Provided further, That up to 
     $50,000,000 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 Act or any prior Act appropriating funds 
     for foreign operations, export financing, or related programs 
     for tied-aid credits or grants may be used for any other 
     purpose except through the regular notification procedures of 
     the Committees on Appropriations.


                        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, $46,614,000: 
     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, 1998.


                overseas private investment corporation

                           noncredit account

       The Overseas Private Investment Corporation is authorized 
     to make, without regard to fiscal year limitations, as 
     provided by 31 U.S.C. 9104, such expenditures and commitments 
     within the limits of funds available to it and in accordance 
     with law as may be necessary: Provided, That the amount 
     available for administrative expenses to carry out the credit 
     and insurance programs (including an amount for official 
     reception and representation expenses which shall not exceed 
     $35,000) shall not exceed $32,000,000: 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, $60,000,000, 
     as authorized by section 234 of the Foreign Assistance Act of 
     1961 to be derived by transfer from the Overseas Private 
     Investment Corporation noncredit account: Provided, That such 
     costs, including the cost of modifying such loans, shall be 
     as defined in section 502 of the Congressional Budget Act of 
     1974: Provided further, That such sums shall be available for 
     direct loan obligations and loan guaranty commitments 
     incurred or made during fiscal years 1998 and 1999: Provided 
     further, That such sums shall remain available through fiscal 
     year 2006 for the disbursement of direct and guaranteed loans 
     obligated in fiscal year 1998, and through fiscal year 2007 
     for the disbursement of direct and guaranteed loans obligated 
     in fiscal year 1999: Provided further, That in addition, such 
     sums as may be necessary for administrative expenses to carry 
     out the credit program may be derived from amounts available 
     for administrative expenses to carry out the credit and 
     insurance programs in the Overseas Private Investment 
     Corporation Noncredit Account and merged with said account.

                  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, 
     $43,000,000, to remain available until September 30, 1999: 
     Provided, That the Trade and Development Agency may receive 
     reimbursements from corporations and other entities for the 
     costs of grants for feasibility studies and other project 
     planning services, to be deposited as an offsetting 
     collection to this account and to be available for obligation 
     until September 30, 1999, 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.

                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, 1998, 
     unless otherwise specified herein, as follows:


                  agency for international development

                         development assistance

                     (including transfer of funds)

       For necessary expenses to carry out the provisions of 
     sections 103 through 106 and chapter 10 of part I of the 
     Foreign Assistance Act of 1961, title V of the International 
     Security and Development Cooperation Act of 1980 (Public Law 
     96-533) and the provisions of section 401 of the Foreign 
     Assistance Act of 1969, $1,358,093,020, to remain available 
     until September 30, 1999: Provided, That of the amount 
     appropriated under this heading, up to $18,000,000 may be 
     made available for the Inter-American Foundation and shall be 
     apportioned directly to that Agency: Provided further, That 
     of the amount appropriated under this heading, up to 
     $10,500,000 may be made available for the African Development 
     Foundation and shall be apportioned directly to that agency: 
     Provided further, That of the funds appropriated under title 
     II of this Act that are administered by the Agency for 
     International Development and made available for family 
     planning assistance, not less than 65 per centum shall be 
     made available directly to the agency's central Office of 
     Population and shall be programmed by that office for family 
     planning activities: Provided further, That of the funds made 
     available under this heading, not less than $30,000,000, 
     above the amount of funds made available to combat infectious 
     diseases in the fiscal year 1997, shall be made available to 
     strengthen global surveillance and control of infectious 
     diseases: Provided further, That such funds shall be subject 
     to the regular notification procedures of the Committees on 
     Appropriations: Provided further, That none of the funds made 
     available in this Act nor any unobligated balances from prior 
     appropriations may be made available to any organization or 
     program which, as determined by the President of the United 
     States, supports or participates in the management of a 
     program of coercive abortion or involuntary sterilization: 
     Provided further, That none of the funds made available under 
     this heading may be used to pay for the performance of 
     abortion as a method of family planning or to motivate or 
     coerce any person to practice abortions; and that in order to 
     reduce reliance on abortion in developing nations, funds 
     shall be available only to voluntary family planning projects 
     which offer, either directly or through referral to, or 
     information about access to, a broad range of family planning 
     methods and services: Provided further, That in awarding 
     grants for natural family planning under section 104 of the 
     Foreign Assistance Act of 1961 no applicant shall be 
     discriminated against because of such applicant's religious 
     or conscientious commitment to offer only natural family 
     planning; and, additionally, all such applicants shall comply 
     with the requirements of the previous proviso: Provided 
     further, That for purposes of this or any other Act 
     authorizing or appropriating funds for foreign operations, 
     export financing, and related programs, the term 
     ``motivate'', as it relates to family planning assistance, 
     shall not be construed to prohibit the provision, consistent 
     with local law, of information or counseling about all 
     pregnancy options: Provided further, That nothing in this 
     paragraph shall be construed to alter any existing statutory 
     prohibitions against abortion under section 104 of the 
     Foreign Assistance Act of 1961: Provided further, That, 
     notwithstanding section 109 of the Foreign Assistance Act of 
     1961, of the funds appropriated under this heading in this 
     Act, and of the unobligated balances of funds previously 
     appropriated under this heading, $2,500,000 shall 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 of the 
     funds appropriated under this heading that are made available 
     for assistance programs for displaced and orphaned children 
     and victims of war, not to exceed $25,000, in addition to 
     funds otherwise available for such purposes, may be used to 
     monitor and provide oversight of such programs: Provided 
     further, That of the funds appropriated under this heading, 
     not less than $15,000,000 shall be available for the American 
     Schools and Hospitals Abroad Program: Provided further, That 
     not less than $500,000 of the funds appropriated under this 
     heading shall be made available only for support of the 
     United States Telecommunications Training Institute: Provided 
     further, That of the funds made available under this heading 
     for Haiti, up to $250,000 may be made available to support a 
     program to assist Haitian children in orphanages.


                   POPULATION, DEVELOPMENT ASSISTANCE

       For necessary expenses to carry out the provisions of 
     section 104(b) of the Foreign Assistance Act of 1961, 
     $435,000,000, to remain available until September 30, 1999.


                                 cyprus

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

[[Page S7636]]

                                 burma

       Of the funds appropriated under the heading ``Development 
     Assistance'', not less than $5,000,000 shall be made 
     available to support activities in Burma, along the Burma-
     Thailand border, and for activities of Burmese student groups 
     and other organizations located outside Burma: Provided, That 
     $3,000,000 of these funds shall be made available for the 
     purposes of fostering democracy, including not less than 
     $200,000 to be made available for newspapers, media, and 
     publications promoting democracy for Burma: Provided further, 
     That $2,000,000 of these funds shall be made available to 
     support the provision of medical supplies and services and 
     other humanitarian assistance to Burmese located in Burma or 
     displaced Burmese along the borders: Provided further, That 
     funds made available for Burma related activities under this 
     heading may be made available notwithstanding any other 
     provision of law: Provided further, That provision of such 
     funds shall be made available subject to the regular 
     notification procedures of the Committees on Appropriations.


                                CAMBODIA

       None of the funds appropriated by this Act may be made 
     available for activities or programs in Cambodia until the 
     Secretary of State determines and reports to the Committees 
     on Appropriations that the Government of Cambodia has (1) not 
     been established in office by the use of force or a coup 
     d'etat; (2) discontinued all political violence and 
     intimidation of journalists and members of opposition 
     parties; (3) established an independent election commission; 
     (4) protected the rights of voters, candidates, and election 
     observers and participants by establishing laws and 
     procedures guaranteeing freedom of speech and assembly; (5) 
     eliminated corruption and collaboration with narcotics 
     smugglers; and (6) been elected in a free and fair democratic 
     election: Provided, That restrictions on funds made available 
     under this heading shall not apply to humanitarian programs 
     or other activities administered by nongovernmental 
     organizations: Provided further, That 30 days after enactment 
     of this Act, the Secretary of State, in consultation with the 
     Director of the Federal Bureau of Investigation, shall report 
     to the Committees on Appropriations on the results of the FBI 
     investigation into the bombing attack in Phnom Penh on March 
     30, 1997.


                   guatemala clarification commission

       Of the funds made available under the headings 
     ``Development Assistance''and ``Economic Support Fund'', not 
     less than $1,000,000 shall be made available to support the 
     Guatemala Clarification Commission.


                   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, $195,000,000, to remain available until expended.


                           debt restructuring

       For the cost, as defined in section 502 of the 
     Congressional Budget Act of 1974, of modifying direct loans 
     and loan guarantees, as the President may determine, for 
     which funds have been appropriated or otherwise made 
     available for programs within the International Affairs 
     Budget Function 150, including the cost of selling, reducing, 
     or canceling amounts, through debt buybacks and swaps, owed 
     to the United States as a result of concessional loans 
     made to eligible Latin American and Caribbean countries, 
     pursuant to part IV of the Foreign Assistance Act of 1961, 
     and of modifying concessional loans authorized under title 
     I of the Agricultural Trade Development and Assistance Act 
     of 1954, as amended, as authorized under subsection (a) 
     under the heading ``Debt Reduction for Jordan'' in title 
     VI of Public Law 103-306 and (b) direct loans extended to 
     least developed countries, as authorized under section 411 
     of the Agriculture Trade and Assistance Act of 1954 as 
     amended; $34,000,000, to remain available until expended: 
     Provided, That none of the funds appropriated under this 
     heading shall be obligated except as provided through the 
     regular notification procedures of the Committees on 
     Appropriations.


         micro and small enterprise development program account

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


             urban and environmental credit program account

       For the cost, as defined in section 502 of the 
     Congressional Budget Act of 1974, of guaranteed loans 
     authorized by sections 221 and 222 of the Foreign Assistance 
     Act of 1961, $3,000,000, to remain available until September 
     30, 1999: Provided, That these funds are available to 
     subsidize loan principal, 100 per centum of which shall be 
     guaranteed, pursuant to the authority of such sections. In 
     addition, for administrative expenses to carry out guaranteed 
     loan programs, $6,000,000, all of which may be transferred to 
     and merged with the appropriation for Operating Expenses of 
     the Agency for International Development: Provided further, 
     That commitments to guarantee loans under this heading may be 
     entered into notwithstanding the second and third sentences 
     of section 222(a) and, with regard to programs for Central 
     and Eastern Europe and programs for the benefit of South 
     Africans disadvantaged by apartheid, section 223(j) of the 
     Foreign Assistance Act of 1961.


                  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 at least 
     equivalent to the level provided in fiscal year 1995. Such 
     private and voluntary organizations shall include those which 
     operate on a not-for-profit basis, receive contributions from 
     private sources, receive voluntary support from the public 
     and are deemed to be among the most cost-effective and 
     successful providers of development assistance.


     payment to the foreign service retirement and disability fund

       For payment to the ``Foreign Service Retirement and 
     Disability Fund'', as authorized by the Foreign Service Act 
     of 1980, $44,208,000.


     operating expenses of the agency for international development

       For necessary expenses to carry out the provisions of 
     section 667, $473,000,000, to remain available until 
     September 30, 1999: Provided, That none of the funds 
     appropriated by this Act for programs administered by the 
     Agency for International Development may be used to finance 
     printing costs of any report or study (except feasibility, 
     design, or evaluation reports or studies) in excess of 
     $25,000 without the approval of the Administrator of the 
     Agency or the Administrator's designee.


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

       For necessary expenses to carry out the provisions of 
     section 667, $29,047,000, to remain available until September 
     30, 1999, 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

       For necessary expenses to carry out the provisions of 
     chapter 4 of part II, $2,541,150,000, to remain available 
     until September 30, 1999: Provided, That of the funds 
     appropriated under this heading, not less than $1,200,000,000 
     shall be available only for Israel, which sum shall be 
     available on a grant basis as a cash transfer and shall be 
     disbursed within thirty days of enactment of this Act or by 
     October 31, 1997, whichever is later: Provided further, That 
     not less than $815,000,000 shall be available only for Egypt, 
     which sum shall be provided on a grant basis, and of which 
     sum cash transfer assistance may be provided, with the 
     understanding that Egypt will undertake significant economic 
     reforms which are additional to those which were undertaken 
     in previous fiscal years: Provided further, That in 
     exercising the authority to provide cash transfer assistance 
     for Israel, the President shall ensure that the level of such 
     assistance does not cause an adverse impact on the total 
     level of nonmilitary exports from the United States to such 
     country: Provided further, That of the funds appropriated 
     under this heading, not less than $150,000,000 shall be made 
     available for Jordan: Provided further, That of the amount 
     appropriated under this heading, not less than $500,000 shall 
     be available only for the Special Investigative Unit (SIU) of 
     the Haitian National Police.


          assistance for eastern europe and the baltic states

       (a) For necessary expenses to carry out the provisions of 
     the Foreign Assistance Act of 1961 and the Support for East 
     European Democracy (SEED) Act of 1989, $485,000,000, to 
     remain available until September 30, 1999, 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

[[Page S7637]]

     have been made available for an Enterprise Fund may be 
     deposited by such Fund in interest-bearing accounts prior to 
     the Fund's disbursement of such funds for program purposes. 
     The Fund may retain for such program purposes any interest 
     earned on such deposits without returning such interest to 
     the Treasury of the United States and without further 
     appropriation by the Congress. Funds made available for 
     Enterprise Funds shall be expended at the minimum rate 
     necessary to make timely payment for projects and activities.
       (c) Funds appropriated under this heading shall be 
     considered to be economic assistance under the Foreign 
     Assistance Act of 1961 for purposes of making available the 
     administrative authorities contained in that Act for the use 
     of economic assistance.
       (d) With regard to funds appropriated or otherwise made 
     available under this heading for the economic revitalization 
     program in Bosnia and Herzegovina, and local currencies 
     generated by such funds (including the conversion of funds 
     appropriated under this heading into currency used by Bosnia 
     and Herzegovina as local currency and local currency returned 
     or repaid under such program)--
       (1) the Administrator of the Agency for International 
     Development shall provide written approval for grants and 
     loans prior to the obligation and expenditure of funds for 
     such purposes, and prior to the use of funds that have been 
     returned or repaid to any lending facility or grantee; and
       (2) the provisions of section 533 of this Act shall apply.
       (e) Funds appropriated under this heading may not be made 
     available for economic revitalization programs in Bosnia and 
     Herzegovina, if the President determines and certifies to the 
     Committees on Appropriations that the Federation of Bosnia 
     and Herzegovina has not complied with article III of annex 1-
     A of the General Framework Agreement for Peace in Bosnia and 
     Herzegovina concerning the withdrawal of foreign forces, and 
     that intelligence cooperation on training, investigations, 
     and related activities between Iranian officials and Bosnian 
     officials has not been terminated.


  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, $800,000,000, to remain available until September 
     30, 1999: Provided, That the provisions of such chapter shall 
     apply to funds appropriated by this paragraph: Provided 
     further, That up to $22,000,000 made available under this 
     heading may be transferred to the Export Import Bank of the 
     United States, and up to $8,000,000 of the funds made 
     available under this heading may be transferred to the Micro 
     and Small Enterprise Development Program, to be used for the 
     cost of direct loans and loan guarantees for the furtherance 
     of programs under this heading: Provided further, That such 
     costs, including the cost of modifying such loans, shall be 
     as defined in section 502 of the Congressional Budget Act of 
     1974.
       (b) None of the funds appropriated under this heading shall 
     be made available to a Government of the New Independent 
     States of the former Soviet Union--
       (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.
       (3) Funds may be furnished without regard to this 
     subsection if the President determines that to do so is in 
     the national interest.
       (c) None of the funds appropriated under this heading shall 
     be made available to any government of the New Independent 
     States of the former Soviet Union if that government directs 
     any action in violation of the territorial integrity or 
     national sovereignty of any other new independent state, such 
     as those violations included in the Helsinki Final Act: 
     Provided, That such funds may be made available without 
     regard to the restriction in this subsection if the President 
     determines that to do so is in the national security interest 
     of the United States: Provided further, That the restriction 
     of this subsection shall not apply to the use of such funds 
     for the provision of assistance for purposes of humanitarian 
     and refugee relief.
       (d) None of the funds appropriated under this heading for 
     the New Independent States of the former Soviet Union shall 
     be made available for any state to enhance its military 
     capability: Provided, That this restriction does not apply to 
     demilitarization or nonproliferation programs.
       (e) Funds appropriated under this heading shall be subject 
     to the regular notification procedures of the Committees on 
     Appropriations.
       (f) Funds made available in this Act for assistance to the 
     New Independent States of the former Soviet Union shall be 
     subject to the provisions of section 117 (relating to 
     environment and natural resources) of the Foreign Assistance 
     Act of 1961.
       (g) Of the funds appropriated under title II of this Act, 
     including funds appropriated under this heading, not less 
     than $12,000,000 shall be available only for assistance for 
     Mongolia: Provided, That funds made available for assistance 
     for Mongolia may be made available in accordance with the 
     purposes and utilizing the authorities provided in chapter 11 
     of part I of the Foreign Assistance Act of 1961.
       (h) 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: Provided, That grantees and contractors 
     should, to the maximum extent possible, place in key staff 
     positions specialists with prior on the ground expertise in 
     the region of activity and fluency in one of the local 
     languages.
       (i) In issuing new task orders, entering into contracts, or 
     making grants, with funds appropriated under this heading or 
     in prior appropriations Acts, for projects or activities that 
     have as one of their primary purposes the fostering of 
     private sector development, the Coordinator for United States 
     Assistance to the New Independent States and the implementing 
     agency shall encourage the participation of and give 
     significant weight to contractors and grantees who propose 
     investing a significant amount of their own resources 
     (including volunteer services and in-kind contributions) in 
     such projects and activities.
       (j) Of the funds appropriated under this heading, not less 
     than $225,000,000 shall be made available for Ukraine: 
     Provided, That of the funds made available for Ukraine under 
     this subsection, not less than $25,000,000 shall be available 
     only for comprehensive legal restructuring necessary to 
     support a decentralized market-oriented economic system, 
     including the enactment of all necessary substantive 
     commercial law and procedures, the implementation of reforms 
     necessary to establish an independent judiciary and bar, the 
     education of judges, attorneys, and law students in the 
     comprehensive commercial law reforms, and public education 
     designed to promote understanding of commercial law necessary 
     to Ukraine's economic independence: Provided further, That of 
     this amount not less than $8,000,000 shall be made available 
     to support law enforcement institutions and training, not 
     less than $25,000,000 shall be made available for nuclear 
     reactor safety programs, and not less than $5,000,000 shall 
     be made available for political party and related 
     institutional development: Provided further, That 50 per 
     centum of the amount made available for Ukraine by this 
     subsection, exclusive of funds made available in the previous 
     proviso, shall be withheld from obligation and expenditure 
     until the Secretary of State determines and certifies that 
     the Government of Ukraine has taken meaningful steps: (1) to 
     enforce the April 10, 1997 Anti-Corruption Presidential 
     decree; (2) to privatize state owned agricultural storage, 
     distribution, equipment and supply monopolies; and (3) to 
     resolve cases involving U.S. business complaints and 
     establish a permanent legal mechanism for commercial dispute 
     resolution: Provided further, That the Secretary shall submit 
     such determination and certification prior to March 31, 1998.
       (k) Of the funds appropriated under this heading, not less 
     than $100,000,000 shall be made available for Georgia, of 
     which not less than $10,000,000 shall be made available to 
     support energy development and privatization initiatives: 
     Provided, That not less than $15,000,000 shall be made 
     available for development of border security 
     telecommunications infrastructure: Provided further, That not 
     less than $7,000,000 shall be available for judicial reform 
     and law enforcement training: Provided further, That not less 
     than $5,000,000 shall be made available to support training 
     for border and customs control: Provided further, That not 
     less than $3,000,000 shall be made available to support 
     political party and related institutional development: 
     Provided further, That not less than $5,000,000 shall be 
     available for Supsa urban and commercial development: 
     Provided further, That up to $7,000,000 may be made available 
     for business and education exchanges and related activities.
       (l) Of the funds made available under this heading, not 
     less than $95,000,000 shall be made available for Armenia.
       (m) Funds appropriated under this heading or in prior 
     appropriations Acts that are or have been made available for 
     an Enterprise Fund may be deposited by such Fund in interest-
     bearing accounts prior to the disbursement of such funds by 
     the Fund for program purposes. The Fund may retain for such 
     program 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.
       (n) None of the funds appropriated under this heading may 
     be made available for Russia unless the President determines 
     and certifies in writing to the Committees on Appropriations 
     that the Government of Russia

[[Page S7638]]

     has terminated implementation of arrangements to provide Iran 
     with technical expertise, training, technology, or equipment 
     necessary to develop a nuclear reactor or ballistic missiles 
     or related nuclear research facilities or programs.
       (o) Of the funds appropriated under this heading, not less 
     than $10,000,000 shall be made available for a United States 
     contribution to the Trans-Caucasus Enterprise Fund: Provided, 
     That to further the development of the private sector in the 
     Trans-Caucasus, such amount may be invested in a Trans-
     Caucasus Enterprise Fund or invested in other funds 
     established by public or private organizations, or 
     transferred to the Overseas Private Investment Corporation to 
     be available, subject to the requirements of the Federal 
     Credit Reform Act, to subsidize the costs of direct and 
     guaranteed loans.
       (p) Funds made available under this Act or any other Act 
     may not be provided for assistance to the Government of 
     Azerbaijan until the President determines, and so reports to 
     the Congress, that the Government of Azerbaijan is taking 
     demonstrable steps to cease all blockades and other offensive 
     uses of force against Armenia and Nagorno-Karabakh: Provided, 
     That the restriction of this subsection and section 907 of 
     the FREEDOM Support Act shall not apply to--
       (1) activities to support electoral and political reforms 
     or assistance under title V of the FREEDOM Support Act and 
     section 1424 of the ``National Defense Authorization Act for 
     Fiscal Year 1997'';
       (2) any insurance, reinsurance, guarantee, or other 
     assistance provided by the Overseas Private Investment 
     Corporation under title IV of chapter 2 of part I of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2191 et seq.);
       (3) any assistance provided by the Trade and Development 
     Agency under section 661 of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2421);
       (4) any financing provided under the Export-Import Bank Act 
     of 1945 (12 U.S.C. 635 et seq.); or
       (5) any activity carried out by a member of the Foreign 
     Commercial Service while acting within his or her official 
     capacity.
       (q) None of the funds appropriated under this heading or in 
     prior appropriations legislation may be made available to 
     establish a joint public-private entity or organization 
     engaged in the management of activities or projects supported 
     by the Defense Enterprise Fund.
       (r) 60 days after the date of enactment of this Act, the 
     Administrator of AID shall report to the Committees on 
     Appropriations on the rate of obligation and risk and 
     anticipated returns associated with commitments made by the 
     United States-Russia Investment Fund. The report shall 
     include a recommendation on the continued relevance and 
     advisability of the initial planned life of project 
     commitment.

                           Independent Agency


                              peace corps

       For expenses necessary to carry out the provisions of the 
     Peace Corps Act (75 Stat. 612), $206,000,000, 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, 1999.

                          Department of State


                    international narcotics control

       For necessary expenses to carry out section 481 of the 
     Foreign Assistance Act of 1961, $216,200,000: Provided, That 
     of these funds not less than $10,000,000 shall be made 
     available for Law Enforcement Training and Demand Reduction: 
     Provided further, That not less than $22,000,000 shall be 
     made available for anti-crime programs: Provided further, 
     That none of the funds appropriated under this heading that 
     are made available for counter-narcotics activities may be 
     obligated or expended until the Secretary of State submits a 
     report to the Committees on Appropriations containing: (1) a 
     list of all countries in which the United States carries out 
     international counter-narcotics activities; (2) the number, 
     mission and agency affiliation of U.S. personnel assigned to 
     each such country; and (3) all costs and expenses obligated 
     for each program, project or activity by each U.S. agency in 
     each country: Provided further, That of this amount not to 
     exceed $5,000,000 shall be allocated to operate the Western 
     Hemisphere International Law Enforcement Academy under the 
     auspices of the Organization of American States with full 
     oversight by the Department of State: Provided further, That 
     funds appropriated under this heading shall be provided 
     subject to the regular notification procedures of the 
     Committees on Appropriations.


                    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; 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, $650,000,000: 
     Provided, That not more than $12,000,000 shall be available 
     for administrative expenses: 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.


     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.


    nonproliferation, anti-terrorism, demining and related programs

       For necessary expenses for nonproliferation, anti-terrorism 
     and related programs and activities, $129,000,000, to carry 
     out the provisions of chapter 8 of part II of the Foreign 
     Assistance Act of 1961 for anti-terrorism assistance, section 
     504 of the FREEDOM Support Act for the Nonproliferation and 
     Disarmament Fund, section 23 of the Arms Export Control Act 
     or the Foreign Assistance Act of 1961 for demining 
     activities, notwithstanding any other provision of law, 
     including activities implemented through nongovernmental and 
     international organizations, section 301 of the Foreign 
     Assistance Act of 1961 for a voluntary contribution to the 
     International Atomic Energy Agency (IAEA) and a voluntary 
     contribution to the Korean Peninsula Energy Development 
     Organization (KEDO): Provided, That of this amount not to 
     exceed $15,000,000, to remain available until expended, may 
     be made available for the Nonproliferation and Disarmament 
     Fund, notwithstanding any other provision of law, to promote 
     bilateral and multilateral activities relating to 
     nonproliferation and disarmament: Provided further, That such 
     funds may also be used for such countries other than the New 
     Independent States of the former Soviet Union and 
     international organizations when it is in the national 
     security interest of the United States to do so: Provided 
     further, That such funds shall be subject to the regular 
     notification procedures of the Committees on Appropriations: 
     Provided further, That funds appropriated under this heading 
     may be made available for the International Atomic Energy 
     Agency only if the Secretary of State determines (and so 
     reports to the Congress) that Israel is not being denied its 
     right to participate in the activities of that Agency: 
     Provided further, That not to exceed $30,000,000 may be made 
     available to the Korean Peninsula Energy Development 
     Organization (KEDO) only for the administrative expenses and 
     heavy fuel oil costs associated with the Agreed Framework: 
     Provided further, That such funds may be obligated to KEDO 
     only if, thirty days prior to such obligation of funds, the 
     President certifies and so reports to Congress that: (1)(A) 
     the parties to the Agreed Framework are taking steps to 
     assure that progress is made on the implementation of the 
     January 1, 1992, Joint Declaration on the Denuclearization of 
     the Korean Peninsula and the implementation of the North-
     South dialogue, and (B) North Korea is complying with the 
     other provisions of the Agreed Framework between North Korea 
     and the United States and with the Confidential Minute; (2) 
     North Korea is cooperating fully in the canning and safe 
     storage of all spent fuel from its graphite-moderated nuclear 
     reactors and that such canning and safe storage is scheduled 
     to be completed by the end of fiscal year 1997; and (3) North 
     Korea has not significantly diverted assistance provided by 
     the United States for purposes for which it was not intended: 
     Provided further, That the President may waive the 
     certification requirements of the preceding proviso if the 
     President determines that it is vital to the national 
     security interests of the United States: Provided further, 
     That no funds may be obligated for KEDO until 30 days after 
     submission to Congress of the waiver permitted under the 
     preceding proviso: Provided further, That the obligation of 
     any funds for KEDO shall be subject to the regular 
     notification procedures of the Committees on Appropriations: 
     Provided further, That the Secretary of State shall submit to 
     the appropriate congressional committees an annual report (to 
     be submitted with the annual presentation for appropriations) 
     providing a full and detailed accounting of the fiscal year 
     request for the United States contribution to KEDO, the 
     expected operating budget of the Korean Peninsula Energy 
     Development Organization, to include unpaid debt, proposed 
     annual costs associated with heavy fuel oil purchases, and 
     the amount of funds pledged by other donor nations and 
     organizations to support KEDO activities on a per country 
     basis, and other related activities: Provided further, That 
     of the funds made available under this heading, up to 
     $14,000,000 may be made available to the Korean Peninsula 
     Economic Development Organization (KEDO), in addition to 
     funds otherwise made available under this heading for KEDO, 
     if the Secretary of State certifies and reports to the 
     Committees on Appropriations that, except for the funds made 
     available under this proviso, funds sufficient to cover all 
     outstanding debts owed by KEDO for heavy fuel oil have been 
     provided to KEDO: Provided further, That the additional 
     $14,000,000 made

[[Page S7639]]

     available to KEDO under this heading may not be obligated or 
     expended until the Secretary of State certifies and reports 
     to Congress that North Korea has not violated the Military 
     Armistice Agreement of 1953 during the preceding nine months.

                     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, 
     $47,000,000: Provided, That none of the funds appropriated 
     under this heading shall be available for Guatemala: Provided 
     further, That the civilian personnel for whom military 
     education and training may be provided under this heading may 
     include civilians who are not members of a government whose 
     participation would contribute to improved civil-military 
     relations, civilian control of the military, or respect for 
     human rights.


                   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, $3,308,950,000: Provided, That of the funds 
     appropriated under this heading, not less than $1,800,000,000 
     shall be available for grants only for Israel, and not less 
     than $1,300,000,000 shall be made available for grants only 
     for Egypt: Provided further, That the funds appropriated by 
     this paragraph for Israel shall be disbursed within thirty 
     days of enactment of this Act or by October 31, 1997, 
     whichever is later: Provided further, That to the extent that 
     the Government of Israel requests that funds be used for such 
     purposes, grants made available for Israel by this paragraph 
     may, as agreed by Israel and the United States, be available 
     for advanced weapons systems, of which not less than 
     $475,000,000 shall be available for the procurement in Israel 
     of defense articles and defense services, including research 
     and development: Provided further, That of the funds 
     appropriated by this paragraph, not less than $100,000,000 
     shall be available for assistance for Jordan: Provided 
     further, That of the funds appropriated by this paragraph, a 
     total of $12,000,000 shall be available for assistance for 
     Estonia, Latvia, and Lithuania: Provided further, That funds 
     appropriated by this paragraph shall be nonrepayable 
     notwithstanding any requirement in section 23 of the Arms 
     Export Control Act: Provided further, That funds made 
     available under this paragraph shall be obligated upon 
     apportionment in accordance with paragraph (5)(C) of title 
     31, United States Code, section 1501(a): Provided further, 
     That $60,000,000 of the funds appropriated or otherwise made 
     available under this heading shall be made available for the 
     purpose of facilitating the integration of Poland, Hungary, 
     and the Czech Republic into the North Atlantic Treaty 
     Organization: Provided further, That, to carry out funding 
     the previous proviso, all or part of the $60,000,000 may be 
     derived by transfer, notwithstanding any other provision of 
     law, from titles I, II, III, and IV of this Act.
       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, $74,000,000: Provided, That these funds are 
     available to subsidize gross obligations for the principal 
     amount of direct loans of not to exceed $759,500,000: 
     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 of the funds 
     appropriated under this paragraph, a total of $8,000,000 
     shall be available for assistance to Estonia, Latvia, and 
     Lithuania: Provided further, That funds appropriated under 
     this paragraph shall be made available for Greece and Turkey 
     only on a loan basis, and the principal amount of direct 
     loans for each country shall not exceed the following: 
     $122,500,000 only for Greece and $175,000,000 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 none of the funds appropriated under this 
     heading shall be available for Sudan, Liberia, and Guatemala: 
     Provided further, That funds made available under this 
     heading may be used, notwithstanding any other provision of 
     law, for activities related to the clearance of landmines and 
     unexploded ordnance, and may include activities implemented 
     through nongovernmental and international organizations: 
     Provided further, That only those countries for which 
     assistance was justified for the ``Foreign Military Sales 
     Financing Program'' in the fiscal year 1989 congressional 
     presentation for security assistance programs may utilize 
     funds made available under this heading for procurement of 
     defense articles, defense services or design and construction 
     services that are not sold by the United States Government 
     under the Arms Export Control Act: Provided further, That, 
     subject to the regular notification procedures of the 
     Committees on Appropriations, funds made available under this 
     heading for the cost of direct loans may also be used to 
     supplement the funds available under this heading for grants, 
     and funds made available under this heading for grants may 
     also be used to supplement the funds available under this 
     heading for the cost of direct loans: Provided further, That 
     funds appropriated under this heading shall be expended at 
     the minimum rate necessary to make timely payment for defense 
     articles and services: Provided further, That not more than 
     $23,250,000 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 1998 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, 
     $75,000,000: Provided, That none of the funds appropriated 
     under this heading shall be obligated or expended except as 
     provided through the regular notification procedures of the 
     Committees on Appropriations: Provided further, That none of 
     the funds made available under this heading for the 
     Multilateral Force and Observers until the Secretary of State 
     submits a report to the Committees on Appropriations on the 
     status of efforts to retain a new Director General of that 
     organization.

               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 contribution to the Global Environment Facility 
     (GEF), $60,000,000, to remain available until September 30, 
     1999.


       contribution to the international development association

       For payment to the International Development Association by 
     the Secretary of the Treasury, $1,034,500,000, to remain 
     available until expended, of which $234,500,000 shall be 
     available to pay for the tenth replenishment: Provided, That 
     none of the funds may be obligated or made available until 
     the Secretary of the Treasury certifies to the Committees on 
     Appropriations that all procurement restrictions imposed by 
     the Interim Trust Fund have been lifted and that the balance 
     available for open competition in such Fund approximates 
     $1,000,000,000.


          contribution to the inter-american development bank

       For payment to the Inter-American Development Bank by the 
     Secretary of the Treasury, for the United States share of the 
     paid-in share portion of the increase in capital stock, 
     $25,610,667, and for the United States share of the increase 
     in the resources of the Fund for Special Operations, 
     $20,835,000, to remain available until expended.


              limitation on callable capital subscriptions

       The United States Governor of the Inter-American 
     Development Bank may subscribe without fiscal year limitation 
     to the callable capital portion of the United States share of 
     such capital stock in an amount not to exceed $1,503,718,910.


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, $30,000,000 to remain 
     available until expended, which shall be available for 
     contributions previously due.


               contribution to the asian development bank

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


              limitation on callable capital subscriptions

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


               contribution to the asian development fund

       For the United States contribution by the Secretary of the 
     Treasury to the increases in resources of the Asian 
     Development Fund, as authorized by the Asian Development Bank 
     Act, as amended (Public Law 89-369), $150,000,000, of which 
     $50,000,000 shall be available for contributions previously 
     due, to remain available until expended.

[[Page S7640]]

  contribution to the european bank for reconstruction and development

       For payment to the European Bank for Reconstruction and 
     Development by the Secretary of the Treasury, $35,778,717, 
     for the United States share of the paid-in portion of the 
     increase in capital stock, to remain available until 
     expended.


              limitation on callable capital subscriptions

       The United States Governor of the European Bank for 
     Reconstruction and Development may subscribe without fiscal 
     year limitation to the callable capital portion of the United 
     States share of such capital stock in an amount not to exceed 
     $123,237,803.

                    North American Development Bank

       For payment to the North American Development Bank by the 
     Secretary of the Treasury, for the United States share of the 
     paid-in portion of the capital stock, $56,500,000, to remain 
     available until expended: Provided, That none of the funds 
     appropriated under this heading that are made available for 
     the Community Adjustment and Investment Program shall be used 
     for purposes other than those set out in the binational 
     agreement establishing the Bank.


              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.


                    INTERNATIONAL MONETARY PROGRAMS

                  LOANS TO INTERNATIONAL MONETARY FUND

       For loans to the International Monetary Fund under the New 
     Arrangements to Borrow, the dollar equivalent of 
     2,462,000,000 Special Drawing Rights, to remain available 
     until expended; in addition, up to the dollar equivalent of 
     4,250,000,000 Special Drawing Rights previously appropriated 
     by the Act of November 30, 1983 (Public Law 98-181), and the 
     Act of October 23, 1962 (Public Law 87-872), for the General 
     Arrangements to Borrow, may also be used for the New 
     Arrangements to Borrow. Notwithstanding any other provision 
     of law, none of the funds appropriated under this heading may 
     be made available until the relevant Committees of Congress 
     have reviewed the new arrangements for borrowing by the 
     International Monetary Fund provided for under this heading 
     and authorizing legislation for such borrowing has been 
     enacted.

                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, $277,000,000: 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 not less than $5,000,000 
     shall be made available to the World Food Program: Provided 
     further, That none of the funds appropriated under this 
     heading that are made available to the United Nations 
     Population Fund (UNFPA) shall be made available for 
     activities in the People's Republic of China: Provided 
     further, That not more than $25,000,000 of the funds 
     appropriated under this heading may be made available to the 
     UNFPA: Provided further, That with respect to any funds 
     appropriated under this heading that are made available to 
     UNFPA, UNFPA shall be required to maintain such funds in a 
     separate account and not commingle them with any other funds: 
     Provided further, That none of the funds appropriated under 
     this heading may be made available to the Korean Peninsula 
     Energy Development Organization (KEDO) or the International 
     Atomic Energy Agency (IAEA).


   authorization requirement for international financial institutions

       (a) The Secretary of the Treasury may, to fulfill 
     commitments of the United States: (1) effect the United 
     States participation in the first general capital increase of 
     the European Bank for Reconstruction and Development, 
     subscribe to and make payment for 100,000 additional shares 
     of the capital stock of the Bank on behalf of the United 
     States; and (2) contribute on behalf of the United States to 
     the eleventh replenishment of the resources of the 
     International Development Association, to the sixth 
     replenishment of the resources of the Asian Development Fund, 
     a special fund of the Asian Development Bank. The following 
     amounts are authorized to be appropriated without fiscal year 
     limitation for payment by the Secretary of the Treasury: (1) 
     $285,772,500 for paid-in capital, and $984,327,500 for 
     callable capital of the European Bank for Reconstruction and 
     Development; (2) $1,600,000,000 for the International 
     Development Association; (3) $400,000,000 for the Asian 
     Development Fund; and (4) $76,832,001 for paid-in capital, 
     and $4,511,156,729 for callable capital of the Inter-American 
     Development Bank in connection with the eighth general 
     increase in the resources of that Bank. Each such 
     subscription or contribution shall be subject to obtaining 
     the necessary appropriations.
       (b) The authorizations under this section are subject to 
     the Senate Foreign Relations Committee reporting out an 
     authorization bill.

                      TITLE V--GENERAL PROVISIONS


                      ENTERPRISE FUND RESTRICTIONS

       Sec. 501. Section 201(l) of the Support for East European 
     Democracy Act (22 U.S.C. 5421(l)) is amended to read as 
     follows:
       ``(l) Limitation on Payments to Enterprise Fund 
     Personnel.--
       ``(1) No part of the funds of an Enterprise Fund shall 
     inure to the benefit of any board member, officer, or 
     employee of such Enterprise Fund, except as salary or 
     reasonable compensation for services subject to paragraph 
     (2).
       ``(2) An Enterprise Fund shall not pay compensation for 
     services to--
       ``(A) any board member of the Enterprise Fund, except for 
     services as a board member; or
       ``(B) any firm, association, or entity in which a board 
     member of the Enterprise Fund serves as partner, director, 
     officer, or employee.
       ``(3) Nothing in paragraph (2) shall preclude payment for 
     services performed before the date of enactment of this 
     subsection.''.


     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 shall be for 
     entertainment expenses of the Agency for International 
     Development during the current fiscal year.


               limitation on representational allowances

       Sec. 505. Of the funds appropriated or made available 
     pursuant to this Act, not to exceed $95,000 shall be 
     available for representation allowances for the Agency for 
     International Development during the current fiscal year: 
     Provided, That appropriate steps shall be taken to assure 
     that, to the maximum extent possible, United States-owned 
     foreign currencies are utilized in lieu of dollars: Provided 
     further, That of the funds made available by this Act for 
     general costs of administering military assistance and sales 
     under the heading ``Foreign Military Financing Program'', not 
     to exceed $2,000 shall be available for entertainment 
     expenses and not to exceed $50,000 shall be available for 
     representation allowances: Provided further, That of the 
     funds made available by this Act under the heading 
     ``International Military Education and Training'', not to 
     exceed $50,000 shall be available for entertainment 
     allowances: Provided further, That of the funds made 
     available by this Act for the Inter-American Foundation, not 
     to exceed $2,000 shall be available for entertainment and 
     representation allowances: Provided further, That of the 
     funds made available by this Act for the Peace Corps, not to 
     exceed a total of $4,000 shall be available for entertainment 
     expenses: Provided further, That of the funds made available 
     by this Act under the heading ``Trade and Development 
     Agency'', not to exceed $2,000 shall be available for 
     representation and entertainment allowances.


                 prohibition on financing nuclear goods

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


        Prohibition Against Direct Funding for Certain Countries

       Sec. 507. None of the funds appropriated or otherwise made 
     available pursuant to this Act shall be obligated or expended 
     to finance directly any assistance or reparations to Cuba, 
     Iraq, Libya, North Korea, Iran, Sudan, or Syria: 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.

[[Page S7641]]

                  Deobligation/Reobligation Authority

       Sec. 510. (a) Amounts certified pursuant to section 1311 of 
     the Supplemental Appropriations Act, 1955, as having been 
     obligated against appropriations heretofore made under the 
     authority of the Foreign Assistance Act of 1961 for the same 
     general purpose as any of the headings under title II of this 
     Act are, if deobligated, hereby continued available for the 
     same period as the respective appropriations under such 
     headings or until September 30, 1998, 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 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 1998.


                         Availability of Funds

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


            limitation on assistance to countries in default

       Sec. 512. No part of any appropriation contained in this 
     Act shall be used to furnish assistance to any country which 
     is in default during a period in excess of one calendar year 
     in payment to the United States of principal or interest on 
     any loan made to such country by the United States pursuant 
     to a program for which funds are appropriated under this Act: 
     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.
       (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 purpose of providing the Executive Branch 
     with the necessary administrative flexibility, none of the 
     funds made available under this Act for ``Development 
     Assistance'', ``Debt restructuring'', ``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, anti-terrorism, demining and related 
     programs'', ``Foreign Military Financing Program'', 
     ``International military education and training'', ``Inter-
     American Foundation'', ``African Development Foundation'', 
     ``Peace Corps'', ``Migration and refugee assistance'', shall 
     be available for obligation for activities, programs, 
     projects, type of materiel assistance, countries, or other 
     operations not justified or in excess of the amount justified 
     to the Appropriations Committees for obligation under any of 
     these specific headings unless the Appropriations Committees 
     of both Houses of Congress are previously notified 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 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 other Act, including 
     any prior Act requiring notification in accordance with the 
     regular notification procedures of the Committees on 
     Appropriations, may be waived if failure to do so would pose 
     a substantial risk to human health or welfare: 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, 1999.


              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, Israel has 
     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

[[Page S7642]]

     funds provided in annual appropriations for the Economic 
     Support Fund which are allocated to Israel shall not be less 
     than the annual debt repayment (interest and principal) from 
     Israel to the United States Government in recognition that 
     such a principle serves United States interests in the 
     region.


   prohibition on funding for abortions and involuntary sterilization

       Sec. 518. None of the funds made available to carry out 
     part I of the Foreign Assistance Act of 1961, as amended, may 
     be used to pay for the performance of abortions as a method 
     of family planning or to motivate or coerce any person to 
     practice abortions. None of the funds made available to carry 
     out part I of the Foreign Assistance Act of 1961, as amended, 
     may be used to pay for the performance of involuntary 
     sterilization as a method of family planning or to coerce or 
     provide any financial incentive to any person to undergo 
     sterilizations. None of the funds made available to carry out 
     part I of the Foreign Assistance Act of 1961, as amended, may 
     be used to pay for any biomedical research which relates in 
     whole or in part, to methods of, or the performance of, 
     abortions or involuntary sterilization as a means of family 
     planning. None of the funds made available to carry out part 
     I of the Foreign Assistance Act of 1961, as amended, may be 
     obligated or expended for any country or organization if the 
     President certifies that the use of these funds by any such 
     country or organization would violate any of the above 
     provisions related to abortions and involuntary 
     sterilizations: Provided, That none of the funds made 
     available under this Act may be used to lobby for or against 
     abortion.


        limitations on FUNDING FOR INTERNATIONAL FAMILY PLANNING

       Sec. 519. 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.


                         reporting requirement

       Sec. 520. Section 25 of the Arms Export Control Act is 
     amended--
       (1) in subsection (a), by striking ``Congress'' and 
     inserting in lieu thereof ``appropriate congressional 
     committees'';
       (2) in subsection (b), by striking ``the Committee on 
     Foreign Relations of the Senate or the Committee on Foreign 
     Affairs of the House of Representatives'' and inserting in 
     lieu thereof ``any of the congressional committees described 
     in subsection (e)''; and
       (3) by adding the following subsection:
       ``(e) As used in this section, the term `appropriate 
     congressional committees' means the Committee on Foreign 
     Relations and the Committee on Appropriations of the Senate 
     and the Committee on International Relations and the 
     Committee on Appropriations of the House of 
     Representatives.''.


                   special notification requirements

       Sec. 521. None of the funds appropriated in this Act shall 
     be obligated or expended for Colombia, Guatemala (except that 
     this provision shall not apply to development assistance for 
     Guatemala), Dominican Republic, Haiti, Liberia, Pakistan, 
     Peru, Serbia, Sudan, or the Democratic Republic of Congo 
     except as provided through the regular notification 
     procedures of the Committee on Appropriations.


              definition of program, project, and activity

       Sec. 522. 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.


               child survival, aids, and other activities

       Sec. 523. Up to $10,000,000 of the funds made available by 
     this Act for assistance for family planning, health, child 
     survival, basic education and AIDS, may be used to reimburse 
     United States Government agencies, agencies of State 
     governments, institutions of higher learning, and private and 
     voluntary organizations for the full cost of individuals 
     (including for the personal services of such individuals) 
     detailed or assigned to, or contracted by, as the case may 
     be, the Agency for International Development for the purpose 
     of carrying out family planning activities, child survival, 
     and basic education activities, and activities relating to 
     research on, and the treatment and control of acquired immune 
     deficiency syndrome in developing countries: Provided, That 
     funds appropriated by this Act that are made available for 
     child survival activities or activities relating to research 
     on, and the treatment and control of, acquired immune 
     deficiency syndrome may be made available notwithstanding any 
     provision of law that restricts assistance to foreign 
     countries: Provided further, That funds appropriated by this 
     Act that are made available for family planning activities 
     may be made available notwithstanding section 512 of this Act 
     and section 620(q) of the Foreign Assistance Act of 1961.


       prohibition against indirect funding to certain countries

       Sec. 524. None of the funds appropriated or otherwise made 
     available pursuant to this Act shall be obligated to finance 
     indirectly any assistance or reparations to Cuba, Iraq, 
     Libya, Iran, Syria, North Korea, or the People's Republic of 
     China, unless the President of the United States certifies 
     that the withholding of these funds is contrary to the 
     national interest of the United States.


                           reciprocal leasing

       Sec. 525. Section 61(a) of the Arms Export Control Act is 
     amended by striking out ``1997'' and inserting in lieu 
     thereof ``1998''.


                NOTIFICATION ON EXCESS DEFENSE EQUIPMENT

       Sec. 526. 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. 527. Funds appropriated by this Act may be obligated 
     and expended notwithstanding section 10 of Public Law 91-672 
     and section 15 of the State Department Basic Authorities Act 
     of 1956.


       PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST COUNTRIES

       Sec. 528. (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. 529. Notwithstanding any other provision of law, and 
     subject to the regular notification procedures of the 
     Committees on Appropriations, the authority of section 23(a) 
     of the Arms Export Control Act may be used to provide 
     financing to Israel, Egypt and NATO and major non-NATO allies 
     for the procurement by leasing (including leasing with an 
     option to purchase) of defense articles from United States 
     commercial suppliers, not including Major Defense Equipment 
     (other than helicopters and other types of aircraft having 
     possible civilian application), if the President determines 
     that there are compelling foreign policy or national security 
     reasons for those defense articles being provided by 
     commercial lease rather than by government-to-government sale 
     under such Act.


                         COMPETITIVE INSURANCE

       Sec. 530. 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. 531. 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. 532. In order to enhance the continued participation 
     of nongovernmental organizations in economic assistance 
     activities under the Foreign Assistance Act of 1961, 
     including endowments, debt-for-development and debt-for-
     nature exchanges, a nongovernmental organization which is a 
     grantee or contractor of the Agency for International 
     Development may place in interest bearing accounts funds made 
     available under this Act or prior Acts or local currencies 
     which accrue to that organization as a result of economic 
     assistance provided under title II of this Act and any 
     interest earned on such investment shall be used for the 
     purpose for which the assistance was provided to that 
     organization.

[[Page S7643]]

                           SEPARATE ACCOUNTS

       Sec. 533. (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 necessary steps to 
     ensure that the equivalent of the local currencies disbursed 
     pursuant to subsection (a)(2)(A) from the separate account 
     established pursuant to subsection (a)(1) are used for the 
     purposes agreed upon pursuant to subsection (a)(2).
       (4) Termination of Assistance Programs.--Upon termination 
     of assistance to a country under 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.
       (6) Reporting Requirement.--The Administrator of the Agency 
     for International Development shall report on an annual basis 
     as part of the justification documents submitted to the 
     Committees on Appropriations on the use of local currencies 
     for the administrative requirements of the United States 
     Government as authorized in subsection (a)(2)(B), and such 
     report shall include the amount of local currency (and United 
     States dollar equivalent) used and/or to be used for such 
     purpose in each applicable country.
       (b) Separate Accounts for Cash Transfers.--(1) If 
     assistance is made available to the government of a foreign 
     country, under 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. 534. (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. 535. None of the funds appropriated or otherwise made 
     available pursuant to this Act to carry out the Foreign 
     Assistance Act of 1961 (including title IV of chapter 2 of 
     part I, relating to the Overseas Private Investment 
     Corporation) or the Arms Export Control Act may be used to 
     provide assistance to any country that is not in compliance 
     with the United Nations Security Council sanctions against 
     Iraq unless the President determines and so certifies to the 
     Congress that--
       (1) such assistance is in the national interest of the 
     United States;
       (2) such assistance will directly benefit the needy people 
     in that country; or
       (3) the assistance to be provided will be humanitarian 
     assistance for foreign nationals who have fled Iraq and 
     Kuwait.


           competitive pricing for sales of defense articles

       Sec. 536. Direct costs associated with meeting a foreign 
     customer's additional or unique requirements will continue to 
     be allowable under contracts under section 22(d) of the Arms 
     Export Control Act. Loadings applicable to such direct costs 
     shall be permitted at the same rates applicable to 
     procurement of like items purchased by the Department of 
     Defense for its own use.


                    authorities for the peace corps

       Sec. 537. 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 
     agency shall promptly report to the Committees on 
     Appropriations whenever it is conducting activities or is 
     proposing to conduct activities in a country for which 
     assistance is prohibited.


                  impact on jobs in the united states

       Sec. 538. 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.


    restrictions on the termination of sanctions against serbia and 
                               montenegro

       Sec. 539. (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

[[Page S7644]]

       (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) Waiver Authority.--The President may waive the 
     application in whole or in part, of subsection (a) if the 
     President certifies to the Congress that the President has 
     determined that the waiver is necessary to meet emergency 
     humanitarian needs or to achieve a negotiated settlement of 
     the conflict in Bosnia and Herzegovina that is acceptable to 
     the parties.


                          special authorities

       Sec. 540. (a) Funds appropriated in title II of this Act 
     that are made available for Afghanistan, Lebanon, and for 
     victims of war, displaced children, displaced Burmese, 
     humanitarian assistance for Romania, and humanitarian 
     assistance for the peoples of 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.
       (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 1998, 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. 541. 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 county;
       (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.


                       anti-narcotics activities

       Sec. 542. (a) Of the funds appropriated or otherwise made 
     available by this Act for ``Economic Support Fund'', 
     assistance may be provided to strengthen the administration 
     of justice in countries in Latin America and the Caribbean 
     and in other regions consistent with the provisions of 
     section 534(b) of the Foreign Assistance Act of 1961, except 
     that programs to enhance protection of participants in 
     judicial cases may be conducted notwithstanding section 660 
     of that Act.
       (b) Funds made available pursuant to this section may be 
     made available notwithstanding section 534(c) and the second 
     and third sentences of section 534(e) of the Foreign 
     Assistance Act of 1961. Funds made available pursuant to 
     subsection (a) for Bolivia, Colombia and Peru may be made 
     available notwithstanding section 534(c) and the second 
     sentence of section 534(e) of the Foreign Assistance Act of 
     1961.


                       eligibility for assistance

       Sec. 543. (a) Assistance Through Nongovernmental 
     Organizations.--Restrictions contained in this or any other 
     Act with respect to assistance for a country shall not be 
     construed to restrict assistance in support of programs of 
     nongovernmental organizations from funds appropriated by this 
     Act to carry out the provisions of chapters 1, 10, and 11 of 
     part I and chapter 4 of part II of the Foreign Assistance Act 
     of 1961, and from funds appropriated under the heading 
     ``Assistance for Eastern Europe and the Baltic States'': 
     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 1998, restrictions 
     contained in this or any other Act with respect to assistance 
     for a country shall not be construed to restrict assistance 
     under the Agricultural Trade Development and Assistance Act 
     of 1954: Provided, That none of the funds appropriated to 
     carry out title I of such Act and made available pursuant to 
     this subsection may be obligated or expended except as 
     provided through the regular notification procedures of the 
     Committees on Appropriations.
       (c) Exception.--This section shall not apply--
       (1) with respect to section 620A of the Foreign Assistance 
     Act or any comparable provision of law prohibiting assistance 
     to countries that support international terrorism; or
       (2) with respect to section 116 of the Foreign Assistance 
     Act of 1961 or any comparable provision of law prohibiting 
     assistance to countries that violate internationally 
     recognized human rights.


                                earmarks

       Sec. 544. (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.


                 prohibition on publicity or propaganda

       Sec. 546. 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.


           prohibition of payments to united nations members

       Sec. 547. None of the funds appropriated or made available 
     pursuant to this Act for carrying out the Foreign Assistance 
     Act of 1961, may be used to pay in whole or in part any 
     assessments, arrearages, or dues of any member of the United 
     Nations.


                          consulting services

       Sec. 548. The expenditure of any appropriation under this 
     Act for any consulting service through procurement contract, 
     pursuant to section 3109 of title 5, United States Code, 
     shall be limited to those contracts where such expenditures 
     are a matter of public record and available for public 
     inspection, except where otherwise provided under existing 
     law, or under existing Executive order pursuant to existing 
     law.


             private voluntary organizations--documentation

       Sec. 549. None of the funds appropriated or made available 
     pursuant to this Act shall be available to a private 
     voluntary organization which fails to provide upon timely 
     request any document, file, or record necessary to the 
     auditing requirements of the Agency for International 
     Development.


  Prohibition on Assistance to Foreign Governments that Export Lethal 
   Military Equipment to Countries Supporting International Terrorism

       Sec. 550. (a) None of the funds appropriated or otherwise 
     made available by this Act may

[[Page S7645]]

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


    Limitation on Assistance for the PLO for the West Bank and Gaza

       Sec. 552. None of the funds appropriated by this Act may be 
     obligated for assistance for the Palestine Liberation 
     Organization for the West Bank and Gaza unless the President 
     has exercised the authority under section 604(a) of the 
     Middle East Peace Facilitation Act of 1995 (title VI of 
     Public Law 104-107) or any other legislation to suspend or 
     make inapplicable section 307 of the Foreign Assistance Act 
     of 1961 and that suspension is still in effect: Provided, 
     That if the President fails to make the certification under 
     section 604(b)(2) of the Middle East Peace Facilitation Act 
     of 1995 or to suspend the prohibition under other 
     legislation, funds appropriated by this Act may not be 
     obligated for assistance for the Palestine Liberation 
     Organization for the West Bank and Gaza.


                 Export Financing Transfer Authorities

       Sec. 553. Not to exceed 5 per centum of any appropriation 
     other than for administrative expenses made available for 
     fiscal year 1998 for programs under title I of this Act may 
     be transferred between such appropriations for use for any of 
     the purposes, programs and activities for which the funds in 
     such receiving account may be used, but no such 
     appropriation, except as otherwise specifically provided, 
     shall be increased by more than 25 per centum 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 drawdown

       Sec. 554. If the President determines that doing so will 
     contribute to a just resolution of charges regarding genocide 
     or other violations of international humanitarian law, the 
     President may direct a drawdown pursuant to section 552(c) of 
     the Foreign Assistance Act of 1961, as amended, of up to 
     $25,000,000 of commodities and services for the United 
     Nations War Crimes Tribunal established with regard to the 
     former Yugoslavia by the United Nations Security Council or 
     such other tribunals or commissions as the Council may 
     establish to deal with such violations, without regard to the 
     ceiling limitation contained in paragraph (2) thereof: 
     Provided, That the determination required under this section 
     shall be in lieu of any determinations otherwise required 
     under section 552(c): Provided further, That sixty days after 
     the date of enactment of this Act, and every one hundred 
     eighty days thereafter, the Secretary of State shall submit a 
     report to the Committees on Appropriations describing the 
     steps the United States Government is taking to collect 
     information regarding allegations of genocide or other 
     violations of international law in the former Yugoslavia and 
     to furnish that information to the United Nations War Crimes 
     Tribunal for the former Yugoslavia.


                               landmines

       Sec. 555. Notwithstanding any other provision of law, 
     demining equipment available to the Agency for International 
     Development and the Department of State and used in support 
     of the clearing of landmines and unexploded ordnance for 
     humanitarian purposes may be disposed of on a grant basis in 
     foreign countries, subject to such terms and conditions as 
     the President may prescribe.


           restrictions concerning the palestinian authority

       Sec. 556. None of the funds appropriated by this Act may be 
     obligated or expended to create in any part of Jerusalem a 
     new office of any department or agency of the United States 
     Government for the purpose of conducting official United 
     States Government business with the Palestinian Authority 
     over Gaza and Jericho or any successor Palestinian governing 
     entity provided for in the Israel-PLO Declaration of 
     Principles: Provided, That this restriction shall not apply 
     to the acquisition of additional space for the existing 
     Consulate General in Jerusalem: Provided further, That 
     meetings between officers and employees of the United States 
     and officials of the Palestinian Authority, or any successor 
     Palestinian governing entity provided for in the Israel-PLO 
     Declaration of Principles, for the purpose of conducting 
     official United States Government business with such 
     authority should continue to take place in locations other 
     than Jerusalem. As has been true in the past, officers and 
     employees of the United States Government may continue to 
     meet in Jerusalem on other subjects with Palestinians 
     (including those who now occupy positions in the Palestinian 
     Authority), have social contacts, and have incidental 
     discussions.


               prohibition of payment of certain expenses

       Sec. 557. 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.


            purchase of american-made equipment and products

       Sec. 558. (a) To the greatest extent practicable, 
     assistance provided or used for purchases should use American 
     equipment, services, commodities, and products.
       (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.


                  special debt relief for the poorest

       Sec. 559. (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.


             authority to engage in debt buybacks or sales

       Sec. 560. (a) Loans Eligible for Sale, Reduction, or 
     Cancellation.--
       (1) Authority to sell, reduce, or cancel certain loans.--
     Notwithstanding any other provision of law, the President 
     may, in accordance with this section, sell to any eligible 
     purchaser any concessional loan or portion thereof made 
     before January 1, 1995,

[[Page S7646]]

     pursuant to the Foreign Assistance Act of 1961, to the 
     government of any eligible country as defined in section 
     702(6) of that Act or on receipt of payment from an eligible 
     purchaser, reduce or cancel such loan or portion thereof, 
     only for the purpose of facilitating--
       (A) debt-for-equity swaps, debt-for-development swaps, or 
     debt-for-nature swaps; or
       (B) a debt buyback by an eligible country of its own 
     qualified debt, only if the eligible country uses an 
     additional amount of the local currency of the eligible 
     country, equal to not less than 40 per centum of the price 
     paid for such debt by such eligible country, or the 
     difference between the price paid for such debt and the face 
     value of such debt, to support activities that link 
     conservation and sustainable use of natural resources with 
     local community development, and child survival and other 
     child development, in a manner consistent with sections 707 
     through 710 of the Foreign Assistance Act of 1961, if the 
     sale, reduction, or cancellation would not contravene any 
     term or condition of any prior agreement relating to such 
     loan.
       (2) Terms and conditions.--Notwithstanding any other 
     provision of law, the President shall, in accordance with 
     this section, establish the terms and conditions under which 
     loans may be sold, reduced, or canceled pursuant to this 
     section.
       (3) Administration.--The Facility, as defined in section 
     702(8) of the Foreign Assistance Act of 1961, shall notify 
     the administrator of the agency primarily responsible for 
     administering part I of the Foreign Assistance Act of 1961 of 
     purchasers that the President has determined to be eligible, 
     and shall direct such agency to carry out the sale, 
     reduction, or cancellation of a loan pursuant to this 
     section. Such agency shall make an adjustment in its accounts 
     to reflect the sale, reduction, or cancellation.
       (4) Limitation.--The authorities of this subsection shall 
     be available only to the extent that appropriations for the 
     cost of the modification, as defined in section 502 of the 
     Congressional Budget Act of 1974, are made in advance.
       (b) Deposit of Proceeds.--The proceeds from the sale, 
     reduction, or cancellation of any loan sold, reduced, or 
     canceled pursuant to this section shall be deposited in the 
     United States Government account or accounts established for 
     the repayment of such loan.
       (c) Eligible Purchasers.--A loan may be sold pursuant to 
     subsection (a)(1)(A) only to a purchaser who presents plans 
     satisfactory to the President for using the loan for the 
     purpose of engaging in debt-for-equity swaps, debt-for-
     development swaps, or debt-for-nature swaps.
       (d) Debtor Consultations.--Before the sale to any eligible 
     purchaser, or any reduction or cancellation pursuant to this 
     section, of any loan made to an eligible country, the 
     President should consult with the country concerning the 
     amount of loans to be sold, reduced, or canceled and their 
     uses for debt-for-equity swaps, debt-for-development swaps, 
     or debt-for-nature swaps.
       (e) Availability of Funds.--The authority provided by 
     subsection (a) may be used only with regard to funds 
     appropriated by this Act under the heading ``Debt 
     restructuring''.


                                liberia

       Sec. 561. Funds appropriated by this Act may be made 
     available for assistance for Liberia notwithstanding section 
     620(q) of the Foreign Assistance Act of 1961 and section 512 
     of this Act.


                               guatemala

       Sec. 562. (a) Funds provided in this Act may be made 
     available for the Guatemalan military forces, and the 
     restrictions on Guatemala under the headings ``International 
     Military Education and Training'' and ``Foreign Military 
     Financing Program'' shall not apply, only if the President 
     determines and certifies to the Congress that the Guatemalan 
     military is cooperating fully with efforts to resolve human 
     rights abuses which elements of the Guatemalan military 
     forces are alleged to have committed, ordered or attempted to 
     thwart the investigation of, and with efforts to implement a 
     peace settlement.
       (b) The prohibition contained in subsection (a) shall not 
     apply to funds made available to implement a ceasefire or 
     peace agreement.
       (c) Any funds made available pursuant to subsections (a) 
     and (b) for international military education and training may 
     only be for expanded international military education and 
     training.


          sanctions against countries harboring war criminals

       Sec. 563. (a) Bilateral Assistance.--The President shall 
     withhold funds appropriated by this Act under the Foreign 
     Assistance Act of 1961 or the Arms Export Control Act for any 
     country described in subsection (c).
       (b) Multilateral Assistance.--The Secretary of the Treasury 
     shall instruct the United States executive directors of the 
     international financial institutions to work in opposition 
     to, and vote against, any extension by such institutions of 
     financing or financial or technical assistance to any country 
     described in subsection (c).
       (c) Sanctioned Countries.--A country described in this 
     subsection is a country the government of which knowingly 
     grants sanctuary to persons in its territory, or territory 
     within its control, for the purpose of evading prosecution, 
     where such persons have been indicted by the International 
     Criminal Tribunal for Rwanda.


                   limitation on assistance for haiti

       Sec. 564. (a) Limitation.--None of the funds appropriated 
     or otherwise made available by this Act may be provided to 
     the Government of Haiti unless the President reports to 
     Congress that the Government of Haiti--
       (1) is conducting thorough investigations of extrajudicial 
     and political killings;
       (2) is cooperating with United States authorities in the 
     investigations of political and extrajudicial killings;
       (3) has made demonstrable progress in privatizing major 
     governmental parastatals, including demonstrable progress 
     toward the material and legal transfer of ownership of such 
     parastatals; and
       (4) has taken action to remove from the Haitian National 
     Police, national palace and residential guard, ministerial 
     guard, and any other public security entity of Haiti those 
     individuals who are credibly alleged to have engaged in or 
     conspired to conceal gross violations of internationally 
     recognized human rights.
       (b) Exceptions.--The limitation in subsection (a) does not 
     apply to the provision of humanitarian, electoral, counter 
     narcotics, or development assistance.
       (c) Waiver.--The President may waive the requirements of 
     this section on a semiannual basis if the President 
     determines and certifies to the appropriate committees of 
     Congress that such waiver is in the national interest of the 
     United States.
       (d) Parastatals Defined.--As used in this section, the term 
     ``parastatal'' means a government-owned enterprise.


  REQUIREMENT FOR DISCLOSURE OF FOREIGN AID IN REPORT OF SECRETARY OF 
                                 STATE

       Sec. 565. (a) Foreign Aid Reporting Requirement.--In 
     addition to the voting practices of a foreign country, the 
     report required to be submitted to Congress under section 
     406(a) of the Foreign Relations Authorization Act fiscal 
     years 1990 and 1991 (22 U.S.C. 2414a), shall include a side-
     by-side comparison of individual countries' overall support 
     for the United States at the United Nations and the amount of 
     United States assistance provided to such country in fiscal 
     year 1996.
       (b) United States Assistance.--For purposes of this 
     section, the term ``United States assistance'' has the 
     meaning given the term in section 481(e)(4) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2291(e)(4)).


                           burma labor report

       Sec. 566. Not later than one hundred twenty days after 
     enactment of this Act, the Secretary of Labor shall provide 
     to the Committees on Appropriations a report addressing labor 
     practices in Burma: Provided, That the report shall provide 
     comprehensive details on child labor practices, worker's 
     rights, force relocation of laborers, forced labor performed 
     to support the tourism industry, and forced labor performed 
     in conjunction with, and in support of, the Yadonna gas 
     pipeline: Provided further, That the report should discuss 
     whether the State Law and Order Restoration Council (SLORC) 
     is in compliance with international labor standards: Provided 
     further, That the report should provide considerable detail 
     regarding the U.S. government's efforts to address the issue 
     of forced labor in Burma.


                                 HAITI

       Sec. 567. The Government of Haiti shall be eligible to 
     purchase defense articles and services under the Arms Export 
     Control Act (22 U.S.C. 2751 et seq.), for the civilian-led 
     Haitian National Police and Coast Guard: Provided, That the 
     authority provided by this section shall be subject to the 
     regular notification procedures of the Committees on 
     Appropriations.


              International Financial Institution Policies

       Sec. 568. The Secretary of the Treasury shall instruct the 
     United States Executive Directors of the International Bank 
     for Reconstruction and Development and the International 
     Development Association to use the voice and vote of the 
     United States to strongly encourage their respective 
     institutions to--
       (1) provide timely public information on procurement 
     opportunities available to United States suppliers, with a 
     special emphasis on small business; and
       (2) systematically consult with local communities on the 
     potential impact of loans as part of the normal lending 
     process, and expand the participation of affected peoples and 
     nongovernmental organizations in decisions on the selection, 
     design and implementation of policies and projects.


              Limitation on Assistance to Security Forces

       Sec. 569. None of the funds made available by this Act may 
     be provided to any unit of the security forces of a foreign 
     country if the Secretary of State has credible evidence to 
     believe such unit has committed gross violations of human 
     rights, unless the Secretary determines and reports to the 
     Committees on Appropriations that the government of such 
     country is taking steps to bring the responsible members of 
     the security forces unit to justice.


                                Cambodia

       Sec. 570. The Secretary of the Treasury shall instruct the 
     United States Executive Directors of the international 
     financial institutions to use the voice and vote of the 
     United States to oppose loans to the Government of Cambodia, 
     except loans to support basic human needs, unless the 
     Government of Cambodia has: (1) not been established in 
     office by the use of force or a coup d'etat; (2)

[[Page S7647]]

     discontinued all political violence and intimidation of 
     journalists and members of opposition parties; (3) 
     established an independent election commission; (4) protected 
     the rights of voters, candidates, and election observers and 
     participants by establishing laws and procedures guaranteeing 
     freedom of speech and assembly; (5) eliminated corruption and 
     collaboration with narcotics smugglers; and (6) been elected 
     in a free and fair election.


      limitations on transfer of military equipment to east timor

       Sec. 571. In any agreement for the sale, transfer, or 
     licensing of any lethal equipment or helicopter for Indonesia 
     entered into by the United States pursuant to the authority 
     of this Act or any other Act, the agreement shall state that 
     such items will not be used in East Timor.


                        Transparency of Budgets

       Sec. 572. Section 576(a)(1) of the Foreign Operations, 
     Export Financing, and Related Programs Appropriations Act, 
     1997, as contained in Public Law 104-208, is amended to read 
     as follows:
       ``(1) does not have in place a functioning system for 
     reporting to civilian authorities audits of receipts and 
     expenditures that fund activities of the armed forces and 
     security forces;''.
       Section 576(a)(2) of the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 1997, as 
     contained in Public Law 104-208, is amended to read as 
     follows:
       ``(2) has not provided to the institution information about 
     the audit process requested by the institution.''.


 Restrictions on Funding to Countries Providing Sanctuary to Indicted 
                             War Criminals

       Sec. 573. (a) Bilateral Assistance.--None of the funds made 
     available by this or any prior Act making appropriations for 
     foreign operations, export promotion and related programs, 
     may be provided for any country described in subsection (d).
       (b) Multilateral Assistance.--The Secretary of the Treasury 
     shall instruct the United States executive directors of the 
     international financial institutions to work in opposition 
     to, and vote against, any extension by such institutions of 
     any financial or technical assistance or grants of any kind 
     to any country described in subsection (d).
       (c) Exceptions.--
       (1) In general.--Subject to paragraph (2), subsections (a) 
     and (b) shall not apply to the provision of--
       (A) humanitarian assistance;
       (B) democratization assistance; or
       (C) assistance for physical infrastructure projects 
     involving activities in both a sanctioned country and a 
     nonsanctioned contiguous country, if the nonsanctioned 
     country is the primary beneficiary.
       (2) Further limitations.--Notwithstanding paragraph (1)--
       (A) no assistance may be made available by this Act, or any 
     other Act making appropriations for foreign operations, 
     export promotion and related programs, for a program, 
     project, or activity in any country described in subsection 
     (d) in which an indicted war criminal has any financial or 
     material interest or through any organization in which the 
     indicted individual is affiliated; and
       (B) no assistance (other than emergency foods or medical 
     assistance or demining assistance) may be made available by 
     this Act, or any other Act making appropriations for foreign 
     operations, export promotion and related programs to any 
     program, project, or activity in any area of any country 
     described in subsection (d) in which local authorities are 
     not complying with the provisions of Article IX and Annex 4, 
     Article II of the Dayton Agreement relating to war crimes and 
     the Tribunal, or with the provisions of Annex 7 of the Dayton 
     Agreement relating to the rights of refugees and displaced 
     persons to return to their homes of origin.
       (d) Sanctioned Countries.--A country described in this 
     section is a country the authorities of which fail to 
     apprehend and transfer to the Tribunal all persons in 
     territory that is under their effective control who have been 
     indicted by the Tribunal.
       (e) Waiver.--
       (1) Authority.--The President may waive the application of 
     subsection (a) or subsection (b) with respect to a country if 
     the President determines and certifies to the appropriate 
     committees of Congress within six months after the date of 
     enactment of this Act that a majority of the indicted persons 
     who are within territory that is under the effective control 
     of the country have been arrested and transferred to the 
     Tribunal.
       (2) Period of effectiveness.--Any waiver made pursuant to 
     this subsection shall be effective for a period of six 
     months.
       (f) Termination of Sanctions.--The sanctions imposed 
     pursuant to subsection (a) or subsection (b) with respect to 
     a country shall cease to apply only if the President 
     determines and certifies to Congress that the authorities of 
     that country have apprehended and transferred to the Tribunal 
     all persons in territory that is under their effective 
     control who have been indicted by the Tribunal.
       (g) Definitions.--As used in this section--
       (1) Country.--The term ``country'' shall not include Bosnia 
     and Herzegovina, and the provisions of this Act shall be 
     applied separately to its constituent entities of Republika 
     Srpska and the Federation of Bosnia and Herzegovina.
       (2) Dayton agreement.--The term ``Dayton Agreement'' means 
     the General Framework Agreement for Peace in Bosnia and 
     Herzegovina, together with annexes relating thereto, done at 
     Dayton, November 10 through 16, 1995.
       (3) Democratization assistance.--The term ``democratization 
     assistance'' includes electoral assistance and assistance 
     used in establishing the institutions of a democratic and 
     civil society.
       (4) Humanitarian assistance.--The term ``humanitarian 
     assistance'' includes assistance for food, demining, 
     refugees, housing, education, health care, and other social 
     services.
       (5) Tribunal.--The term ``Tribunal'' means the 
     International Criminal Tribunal for the Former Yugoslavia.


              EXTENSION OF CERTAIN ADJUDICATION PROVISIONS

       Sec. 574. The Foreign Operations, Export Financing, and 
     Related Programs Appropriations Act, 1990 (Public Law 101-
     167) is amended--
       (1) in section 599D (8 U.S.C. 1157 note)--
       (A) in subsection (b)(3), by striking ``and 1997'' and 
     inserting ``1997, and 1998''; and
       (B) in subsection (e), by striking ``October 1, 1997'' each 
     place it appears and inserting ``October 1, 1998''; and
       (2) in section 599E (8 U.S.C. 1255 note) in subsection 
     (b)(2), by striking ``September 30, 1997'' and inserting 
     ``September 30, 1998''.


                      DEVELOPMENT CREDIT AUTHORITY

       Sec. 575. For the cost, as defined in section 502 of the 
     Congressional Budget Act of 1974, of direct loans and loan 
     guarantees in support of the development objectives of the 
     Foreign Assistance Act of 1961 (FAA), up to $10,000,000, 
     which amount may be derived by transfer from funds 
     appropriated by this Act to carry out part I of the Foreign 
     Assistance Act of 1961 and funds appropriated by this Act 
     under the heading ``Assistance for Eastern Europe and the 
     Baltic States'', to remain available until expended: 
     Provided, That of this amount, up to $1,500,000 for 
     administrative expenses to carry out such programs may be 
     transferred to and merged with ``Operating Expenses of the 
     Agency for International Development'': Provided further, 
     That the provisions of section 107A(d) (relating to general 
     provisions applicable to development credit authority) of the 
     Foreign Assistance Act of 1961, as added by section 306 of 
     H.R. 1486 as reported by the House Committee on International 
     Relations on May 9, 1997, shall be applicable to direct loans 
     and loan guarantees provided under this paragraph: Provided 
     further, That direct loans or loan guarantees under this 
     paragraph may not be provided until the Director of the 
     Office of Management and Budget has certified to the 
     Committees on Appropriations that the Agency for 
     International Development has established a credit management 
     system capable of effectively managing the credit programs 
     funded under this heading, including that such system (1) can 
     provide accurate and timely provision of loan and loan 
     guarantee data, (2) contains information control systems for 
     loan and loan guarantee data, (3) is adequately staffed, and 
     (4) contains appropriate review and monitoring procedures.


         EXCESS DEFENSE ARTICLES FOR CERTAIN EUROPEAN COUNTRIES

       Sec. 576. Section 105 of Public Law 104-164 (110 Stat. 
     1427) is amended by striking ``1996 and 1997'' and inserting 
     ``1998 and 1999''.


ADDITIONAL REQUIREMENTS RELATING TO STOCKPILING OF DEFENSE ARTICLES FOR 
                           FOREIGN COUNTRIES

       Sec. 577. (a) Value of Additions to Stockpiles.--Section 
     514(b)(2)(A) of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2321h(b)(2)(A)) is amended by inserting before the period at 
     the end the following: ``and $60,000,000 for fiscal year 
     1998''.
       (b) Requirements Relating to the Republic of Korea and 
     Thailand.--Section 514(b)(2)(B) of such Act (22 U.S.C. 
     2321h(b)(2)(B)) is amended by adding at the end the 
     following: ``Of the amount specified in subparagraph (A) for 
     fiscal year 1998, not more than $40,000,000 may be made 
     available for stockpiles in the Republic of Korea and not 
     more than $20,000,000 may be made available for stockpiles in 
     Thailand.''.


       DELIVERY OF DRAWDOWN BY COMMERCIAL TRANSPORTATION SERVICES

       Sec. 578. Section 506 of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2318) is amended--
       (1) in subsection (b)(2), by striking the period and 
     inserting the following: ``, including providing the Congress 
     with a report detailing all defense articles, defense 
     services, and military education and training delivered to 
     the recipient country or international organization upon 
     delivery of such articles or upon completion of such services 
     or education and training. Such report shall also include 
     whether any savings were realized by utilizing commercial 
     transport services rather than acquiring those services from 
     United States Government transport assets.'';
       (2) by redesignating subsection (c) as subsection (d); and
       (3) by inserting after subsection (b) the following:
       ``(c) For the purposes of any provision of law that 
     authorizes the drawdown of defense or other articles or 
     commodities, or defense or other services from an agency of 
     the United States Government, such drawdown may include the 
     supply of commercial transportation and related services that 
     are acquired by contract for the purposes of the drawdown in 
     question if the cost to acquire such commercial 
     transportation and related services

[[Page S7648]]

     is less than the cost to the United States Government of 
     providing such services from existing agency assets.''.


     SENSE OF THE SENATE REGARDING ESTONIA, LATVIA, AND LITHUANIA.

       Sec. 579. It is the sense of the Senate that Estonia, 
     Latvia, and Lithuania--
       (1) are to be commended for their progress toward political 
     and economic reform and meeting the guidelines for 
     prospective NATO members;
       (2) would make an outstanding contribution to furthering 
     the goals of NATO and enhancing stability, freedom, and peace 
     in Europe should they become NATO members; and
       (3) upon complete satisfaction of all relevant criteria 
     should be invited to become full NATO members at the earliest 
     possible date.


 To Prohibit Foreign Assistance to the Government of Russia should it 
 enact laws which would discriminate against minority religious faiths 
                       in the Russian Federation

       Sec. 580. (a) None of the funds appropriated under this Act 
     may be made available for the Government of Russian 
     Federation unless the President determines and certifies in 
     writing to the Committee on Appropriations and the Committee 
     on Foreign Relations of the Senate that the Government of the 
     Russian Federation has enacted no statute or promulgated no 
     executive order that would discriminate, or would have as its 
     principal effect discrimination, against religious minorities 
     in the Russian Federation in violation of accepted 
     international agreements on human rights and religious 
     freedoms to which the Russian Federation is a signatory, 
     including the European Convention and the 1989 Vienna 
     Concluding Document of the Conference on Security and 
     Cooperation in Europe.
       (b) This section shall become effective one day after the 
     enactment of this Act.


   Sense of the Senate regarding support for countries of the South 
                       Caucasus and Central Asia

       Sec. 581. (a) Findings.--Congress makes the following 
     findings:
       (1) The ancient Silk Road, once the economic lifeline of 
     Central Asia and the South Caucasus, traversed much of the 
     territory now within the countries of Armenia, Azerbaijan, 
     Georgia, Kazakstan, Kyrgyzstan, Tajikistan, Turkmenistan, and 
     Uzbekistan.
       (2) Economic interdependence spurred mutual cooperation 
     among the peoples along the Silk Road and restoration of the 
     historic relationships and economic ties between those 
     peoples is an important element of ensuring their sovereignty 
     as well as the success of democratic and market reforms.
       (3) The development of strong political and economic ties 
     between countries of the South Caucasus and Central Asia and 
     the West will foster stability in the region.
       (4) The development of open market economies and open 
     democratic systems in the countries of the South Caucasus and 
     Central Asis will provide positive incentives for 
     international private investment, increased trade, and other 
     forms of commercial interactions with the rest of the world.
       (5) The Caspian Sea Basin, overlapping the territory of the 
     countries of the South Caucasus and Central Asia, contains 
     proven oil and gas reserves that may exceed 
     $4,000,000,000,000 in value.
       (6) The region of the South Caucasus and Central Asia will 
     produce oil and gas in sufficient quantities to reduce the 
     dependence of the United States on energy from the volatile 
     Persian Gulf region.
       (7) United States foreign policy and international 
     assistance should be narrowly targeted to support the 
     economic and political independence of the countries of the 
     South Caucasus and Central Asia.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the policy of the United States in the countries of the 
     South Caucasus and Central Asia should be--
       (1) to promote sovereignty and independence with democratic 
     government;
       (2) to assist actively in the resolution of regional 
     conflicts;
       (3) to promote friendly relations and economic cooperation; 
     and
       (4) to help promote market-oriented principles and 
     practices;
       (5) to assist in the development of infrastructure 
     necessary for communications, transportation, and energy and 
     trade on an East-West axis in order to build strong 
     international relations and commerce between those countries 
     and the stable, democratic, and market-oriented countries of 
     the Euro-Atlantic Community; and
       (6) to support United States business interests and 
     investments in the region.
       (c) Definition.--In this section, the term ``countries of 
     the South Caucasus and Central Asia'' means Armenia, 
     Azerbaijan, Georgia, Kazakstan, Kyrgystan, Tajikistan, 
     Turkmenistan, and Uzbekistan.


            PROMOTION OF RELIGIOUS FREEDOM AND HUMAN RIGHTS

       Sec. 582. (a) Reports.--Not later than March 30, 1998, and 
     each subsequent year thereafter, the Secretary of State shall 
     submit to the International Relations Committee of the House 
     of Representatives and the Foreign Relations Committee of the 
     Senate an annual report on religious persecution on a 
     country-by-country basis. Reports shall include a list of 
     individuals who have been materially involved in the 
     commission of acts of persecution that are motivated by a 
     person's religion.
       (b) Prisoner Information Registry.--The Secretary of State 
     shall establish a Prisoner Information Registry which shall 
     provide information on all political prisoners, prisoners of 
     conscience, and prisoners of faith on a country-by-country 
     basis. Such information shall include the charges, judicial 
     processes, administrative actions, use of forced labor, 
     incidences of torture, length of imprisonment, physical and 
     health conditions, and other matters related to the 
     incarceration of such prisoners. The Secretary of State is 
     authorized to make funds available to nongovernmental 
     organizations presently engaged in monitoring activities 
     regarding such prisoners to assist in the creation and 
     maintenance of the registry.
       (c) Sense of Congress Concerning Establishment of a 
     Commission on Security and Cooperation in Asia.--It is the 
     sense of the Congress that Congress, the President, and the 
     Secretary of State should work with the governments of the 
     People's Republic of China and other countries to establish a 
     Commission on Security and Cooperation in Asia which would be 
     modeled after the Commission on Security and Cooperation in 
     Europe.


   UNITED STATES INTELLIGENCE ACTIVITIES RELATED TO MONITORING HUMAN 
                RIGHTS ABUSES AND RELIGIOUS PERSECUTION

       Sec. 583. (a) In General.--The President shall devote 
     additional personnel and resources to gathering intelligence 
     information regarding human rights abuses and acts of 
     religious persecution.
       (b) Report.--Not later than March 30, 1998, the President 
     shall submit to the Permanent Select Committee on 
     Intelligence of the House of Representatives and the Select 
     Committee on Intelligence of the Senate a report on the 
     number of personnel and resources that are being devoted to 
     gathering intelligence information regarding human rights 
     abuses and acts of religious persecution.


                         WILDLIFE CONSERVATION

       Sec. 584. Of the funds appropriated by this Act, not more 
     than $2,900,000 may be made available for the Communal Areas 
     Management Programme for Indigenous Resources (CAMPFIRE) in 
     Zimbabwe: Provided, That none of the funds appropriated by 
     this Act may be used to directly finance the trophy hunting 
     of elephants or other endangered species as defined in the 
     Convention on International Trade in Endangered Species of 
     Flora and Fauna (CITES) or the Endangered Species Act: 
     Provided further, That the funds appropriated by this Act 
     that are provided under the CAMPFIRE program may not be used 
     for activities with the express intent to lobby or otherwise 
     influence international conventions or treaties, or United 
     States Government decision makers: Provided further, That 
     funds appropriated by this Act that are made available for 
     the CAMPFIRE program may be used only in Zimbabwe for the 
     purpose of maximizing benefits to rural people while 
     strengthening natural resources management institutions: 
     Provided further, That not later than March 1, 1998, the 
     Administrator of the Agency for International Development 
     shall submit a report to the appropriate congressional 
     committees describing the steps taken to implement the 
     CAMPFIRE program, the impact of the program on the people and 
     wildlife of CAMPFIRE districts, alternatives to trophy 
     hunting as a means of generating income for CAMPFIRE 
     districts, and a description of how funds made available for 
     CAMPFIRE in fiscal year 1998 are to be used.


                DEMOCRACY-BUILDING ACTIVITY IN PAKISTAN

       Sec. 585. (a) OPIC.--Section 239(f) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2199(f)) is amended by 
     inserting ``, or Pakistan'' after ``China''.
       (b) Training Activity.--Section 638(b) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2398(b)) is amended--
       (1) by inserting ``or any activity to promote the 
     development of democratic institutions'' after ``activity''; 
     and
       (2) by inserting ``, Pakistan,'' after ``Brazil''.
       (c) Trade and Development.--It is the sense of Congress 
     that the Director of the Trade and Development Agency should 
     use funds made available to carry out the provisions of 
     section 661 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2421) to promote United States exports to Pakistan.


SENSE OF THE SENATE ON THE EUROPEAN COMMISSION'S HANDLING OF THE BOEING 
                      AND MCDONNELL DOUGLAS MERGER

       Sec. 586. (a) Findings.--(1) The Boeing Company and 
     McDonnell Douglas have announced their merger; and
       (2) the Department of Defense has approved that merger as 
     consistent with the national security of the United States; 
     and
       (3) the Federal Trade Commission has found that merger not 
     to violate the anti-trust laws of the United States; and
       (4) the European Commission has consistently criticized and 
     threatened the merger before, during and after its 
     consideration of the facts; and
       (5) the sole true reason for the European Commission's 
     criticism and imminent disapproval of the merger is to gain 
     an unfair competitive advantage for Airbus, a government 
     owned aircraft manufacturer.
       (b) Sense of Senate.--Now therefore, it is the sense of the 
     Senate that--
       (1) any such disapproval on the part of the European 
     Commission would constitute an unwarranted and unprecedented 
     interference

[[Page S7649]]

     in a United States business transaction that would threaten 
     thousands of American aerospace jobs; and
       (2) the Senate suggests that the President take such 
     actions as he deems appropriate to protect United States 
     interests in connection therewith.


      restriction on assistance made to the palestinian authority

       Sec. 587. None of the funds appropriated or otherwise made 
     available by this Act may be obligated or expended with 
     respect to providing funds to the Palestinian Authority, 
     unless the President certifies to Congress that--
       (1) the Palestinian Authority is using its maximum efforts 
     to combat terrorism, and, in accordance with the Oslo 
     Accords, has ceased the use of violence, threat of violence, 
     or incitement to violence as a tool of the Palestinian 
     Authority's policy toward Israel;
       (2) after a full investigation by the Department of 
     Justice, the Executive branch of Government concludes that 
     Chairman Arafat had no prior knowledge of the World Trade 
     Center bombing; and
       (3) after a full inquiry by the Department of State, the 
     Executive branch of Government concludes that Chairman Arafat 
     did not authorize and did not fail to use his authority to 
     prevent the Tel Aviv cafe bombing of March 21, 1997.


   Use of Funds for the United States-Asia Environmental Partnership

       Sec. 588. Notwithstanding any other provision of law that 
     restricts assistance to foreign countries, funds appropriated 
     by this or any other Act making appropriations pursuant to 
     part I of the Foreign Assistance Act of 1961 that are made 
     available for the United States-Asia Environmental 
     Partnership may be made available for activities for the 
     People's Republic of China.


Requirements for the Reporting to Congress of the Costs to the Federal 
Government Associated with the Proposed Agreement to Reduce Greenhouse 
                             Gas Emissions

       Sec. 589. The President shall provide to the Congress a 
     detailed account of all Federal agency obligations and 
     expenditures for climate change programs and activities, 
     domestic and international, for fiscal year 1997, planned 
     obligations for such activities in fiscal year 1998, and any 
     plan for programs thereafter in the context of negotiations 
     to amend the Framework Convention on Climate Change (FCCC) to 
     be provided to the appropriate congressional committees no 
     later than October 15, 1997.


           AUTHORITY TO ISSUE INSURANCE AND EXTEND FINANCING

       Sec. 590. (a) In General.--Section 235(a) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2195(a)) is amended--
       (1) by striking paragraphs (1) and (2)(A) and inserting the 
     following:
       ``(1) Insurance and financing.--(A) The maximum contingent 
     liability outstanding at any one time pursuant to insurance 
     issued under section 234(a), and the amount of financing 
     issued under sections 234 (b) and (c), shall not exceed in 
     the aggregate $29,000,000,000.'';
       (2) by redesignating paragraph (3) as paragraph (2); and
       (3) by amending paragraph (2) (as so redesignated) by 
     striking ``1997'' and inserting ``1999''.
       (b) Conforming Amendment.--Paragraph (2) of section 235(a) 
     of that Act (22 U.S.C. 2195(a)), as redesignated by 
     subsection (a), is further amended by striking ``(a) and 
     (b)'' and inserting ``(a), (b), and (c)''.


withholding assistance to countries violating united nations sanctions 
                             against libya

       Sec. 591. (a) Withholding of Assistance.--Except as 
     provided in subsection (b), whenever the President determines 
     and certifies to Congress that the government of any country 
     is violating any sanction against Libya imposed pursuant to 
     United Nations Security Council Resolution 731, 748, or 883, 
     then not less than 5 percent of the funds allocated for the 
     country under section 653(a) of the Foreign Assistance Act of 
     1961 out of appropriations in this Act shall be withheld from 
     obligation and expenditure for that country.
       (b) Exception.--The requirement to withhold funds under 
     subsection (a) shall not apply to funds appropriated in this 
     Act for allocation under section 653(a) of the Foreign 
     Assistance Act of 1961 for development assistance or for 
     humanitarian assistance.


                         War Crimes Prosecution

       Sec. 592. Section 2401 of title 18, United States Code 
     (Public Law 104-192; the War Crimes Act of 1996) is amended 
     as follows--
       (1) in subsection (a), by striking ``commits a grave breach 
     of the Geneva Conventions'' and inserting in lieu thereof 
     ``commits a war crime'';
       (2) in subsection (b)--
       (A) by striking ``the person committing such breach or the 
     victim of such breach'' and inserting in lieu thereof ``the 
     person committing such crime or the victim of such crime''; 
     and
       (B) by inserting before the period at the end of the 
     subsection ``or that the person committing such crime is 
     later found in the United States after such crime is 
     committed'';
       (3) in subsection (c)--
       (A) by striking ``the term `grave breach of the Geneva 
     Conventions' means conduct defined as'' and inserting in lieu 
     thereof ``the term `war crime' means conduct (1) defined 
     as''; and
       (B) by inserting the following before the period at the 
     end--
       ``; (2) prohibited by Articles 23, 25, 27, or 28 of the 
     Annex to the Hague Convention IV, Respecting the Laws and 
     Customs of War on Land, signed on October, 1907; (3) which 
     constitutes a violation of common Article 3 of the 
     international conventions signed at Geneva on August 1949; or 
     (4) of a person who, in relation to an armed conflict and 
     contrary to the provisions of the Protocol on Prohibitions or 
     Restrictions on the Use of Mines, Booby-traps and Other 
     Devices as amended at Geneva on 3 May 1996 (Protocol II as 
     amended on 3 May 1996), when the United States is a party to 
     such Protocol, willfully kills or causes serious injury to 
     civilians'';
       (4) by adding a new subsection (d) to read as follows:
       ``(d) Notification.--No prosecution of any crime prohibited 
     in this section shall be undertaken by the United States 
     except upon the written notification to the Congress by the 
     Attorney General or his designee that in his judgment a 
     prosecution by the United States is in the national interest 
     and necessary to secure substantial justice.''.


     REFORM AND REVIEW OF UNITED STATES SPONSORED TRAINING PROGRAMS

       Sec. 593. (a) Findings.--Congress makes the following 
     findings:
       (1) United States training of members of Latin American 
     military and security forces that occurred primarily at the 
     Army School of the Americas between 1982 and 1991 has been 
     severely criticized for promoting practices that have 
     contributed to the violation of human rights and have 
     otherwise been inconsistent with the appropriate role of the 
     Armed Forces in a democratic society.
       (2) Numerous members of Latin American military and 
     security forces who have participated in United States 
     sponsored training programs, have subsequently been 
     identified as having masterminded, participated in, or sought 
     to cover up some of the most heinous human rights abuses in 
     the region.
       (3) United States interests in Latin America would be 
     better served if Latin American military personnel were 
     exposed to training programs designed to promote--
       (A) proper management of scarce national defense resources,
       (B) improvements in national systems of justice in 
     accordance with internationally recognized principles of 
     human rights, and
       (C) greater respect and understanding of the principle of 
     civilian control of the military.
       (4) In 1989, Congress mandated that the Department of 
     Defense institute new training programs (commonly referred to 
     as expanded IMET) with funds made available for international 
     military and education programs in order to promote the 
     interests described in paragraph (3). Congress also expanded 
     the definition of eligibility for such training to include 
     non-defense government personnel from countries in Latin 
     America.
       (5) Despite congressionally mandated emphasis on expanded 
     IMET training programs, only 4 of the more than 50 courses 
     offered annually at the United States Army School of the 
     Americas qualify as expanded IMET.
       (b) Limitation on Use of Funds.--Notwithstanding any other 
     provision of law, none of the funds appropriated in this Act 
     under the heading relating to international military 
     education and training may be made available for training 
     members of any Latin American military or security force 
     until--
       (1) the Secretary of Defense has advised the Secretary of 
     State in writing that 30 percent of IMET funds appropriated 
     for fiscal year 1998 for the cost of Latin American 
     participants in IMET programs will be disbursed only for the 
     purpose of supporting enrollment of such participants in 
     expanded IMET courses; and
       (2) the Secretary of State has identified sufficient 
     numbers of qualified, non-military personnel from countries 
     in Latin America to participate in IMET programs during 
     fiscal year 1998 in consultation with the Secretary of 
     Defense, and has instructed United States embassies in the 
     hemisphere to approve their participation in such programs so 
     that not less than 25 percent of the individuals from Latin 
     American countries attending United States supported IMET 
     programs are civilians.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of State shall report in 
     writing to the appropriate committees of Congress on the 
     progress made to improve military training of Latin American 
     participants in the areas of human rights and civilian 
     control of the military. The Secretary shall include in the 
     report plans for implementing additional expanded IMET 
     programs for Latin America during the next 3 fiscal years.


                    LIBERATION TIGERS OF TAMIL EELAM

       Sec. 594. Sense of Senate.--It is the sense of the Senate 
     that the Department of State should list the Liberation 
     Tigers of Tamil Eelam as a terrorist organization.


LIMITATION ON INTERNATIONAL MILITARY EDUCATION AND TRAINING ASSISTANCE 
                                FOR PERU

       Sec. 595. None of the funds appropriated or otherwise made 
     available by this Act may be provided to the Government of 
     Peru for international military education and training under 
     chapter 5 of part II of the Foreign Assistance Act of 1961, 
     unless the President certifies to Congress that the 
     Government of Peru is taking all necessary steps to ensure

[[Page S7650]]

     that United States citizens held in prisons in Peru are 
     accorded timely, open, and fair legal proceedings in civilian 
     courts.


 LIMIT AID TO THE GOVERNMENT OF CONGO UNTIL PRESIDENTIAL CERTIFICATION

       Sec. 596. None of the funds appropriated or otherwise made 
     available by this Act may be provided to the Government of 
     Congo until such time as the President reports in writing to 
     the Congress that the Government of Congo is cooperating 
     fully with investigators from the United Nations or any other 
     international relief organizations in accounting for human 
     rights violations or atrocities committed in Congo or 
     adjacent countries.
       Titles I through V of this Act may be cited as the 
     ``Foreign Operations, Export Financing, and Related Programs 
     Appropriations Act, 1998''.
  The PRESIDING OFFICER. The Senator from Kentucky.
  Mr. McCONNELL. Mr. President, I see the chairman of the 
Appropriations Committee in the Chamber. I just want to make the point 
that I think we must have achieved some kind of record here in light 
of, in 3 days, having passed four bills. I congratulate him on his 
leadership, which has pushed us in that direction very skillfully.
  Mr. STEVENS. Mr. President, if the Senator will yield, I congratulate 
the two managers of this bill, Senator McConnell and Senator Leahy, for 
accomplishing almost the impossible-- to have the foreign assistance 
bill passed in this manner.
  We had a meeting at the beginning of this year when I became chairman 
and talked about trying to have a program of crisis avoidance, and this 
is a good example of it. These two Senators have worked with all 
Members who had amendments and tried to accommodate them, at least 
dealt with most of them, and the result is on the floor being able to 
pass this bill, and it is a great bill. What was the final vote?
  Mr. McCONNELL. It was 91 to 8.
  Mr. STEVENS. I can remember the days when this bill was filibustered 
for days and days and days. It is really a tribute to the two managers 
for having accomplished this, and I congratulate them very much.
  Mr. LEAHY. Mr. President, if the Senator from Alaska will yield, I 
say for my colleagues one of the joys of the Appropriations Committee 
is that there are a lot of senior Members on both sides of the aisle 
who are used to working with each other to build the kind of personal 
relationships that are necessary. I cherish my own friendship with the 
Senator from Alaska and the Senator from Kentucky. We have worked 
together on a lot of different pieces of legislation, not just this one 
but a lot of others, and I think we understand there are certain things 
that can be done and certain things that cannot be done, and we go for 
the possible.
  I note that this is a record, and I commend the Senator from Kentucky 
for getting it through so rapidly. But it is a case, again, I would say 
to the chairman of the Appropriations Committee, who sat down with us 
and tried to give us leeway, a realistic schedule, of the ability to 
work out many things even before they got to the floor.
  I have been both a manager and the ranking member of a lot of pieces 
of legislation. What has been happening with the appropriations bills 
is a model of the way it should be done--move them, move them quickly. 
People have an issue; vote on it and move on to the next thing. The 
Senate is better served. The country is better served.
  I commend my two colleagues for their help.
  Mr. McCONNELL. Mr. President, I, too, thank my good friend, Pat 
Leahy, for his marvelous cooperation and also extend my thanks to Steve 
Cortese, director of the full committee, who has been a joy to work 
with, and Tim Rieser of Senator Leahy's staff and, of course, long-time 
foreign policy adviser, now staff director of the subcommittee, Robin 
Cleveland, and Billy Piper and Will Smith, who have done yeoman service 
and outstanding work on this. I thank them.
  I yield the floor.
  Mr. LEAHY. Mr. President, I also want to compliment Robin Cleveland 
and Will Smith of the committee staff and Billy Piper of Senator 
McConnell's staff, and, of course, as he has already mentioned, Tim 
Rieser of my staff, who has done so much on this, Emily East from the 
appropriations staff; Lesley Carson, who is a Javits scholar with the 
appropriations subcommittee; Dick D'Amato, a long-time member of the 
appropriations staff, and John Rosenwasser from the Budget Committee. 
There is an awful lot that goes on among staff to make this possible. 
We do not have the expertise of the staff. We cannot move a bill this 
quickly no matter how hard we Senators may try, and I commend the staff 
on both sides of the aisle in this case.
  The PRESIDING OFFICER. The Senator from Connecticut.

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