[Congressional Record Volume 143, Number 159 (Wednesday, November 12, 1997)]
[House]
[Pages H10598-H10633]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




AMENDING THE RULES OF THE HOUSE TO REPEAL EXCEPTION TO REQUIREMENT THAT 
           PUBLIC COMMITTEE PROCEEDINGS BE OPEN TO ALL MEDIA

  Mr. GOSS. Mr. Speaker, by direction of the Committee on Rules, I call 
up House Resolution 301 and ask for its immediate consideration.
  The Clerk read the resolution, as follows:

                              H. Res. 301

       Resolved, That (a) clause 3(f) of rule XI of the Rules of 
     the House of Representatives is amended by repealing 
     subdivision (2) and by redesignating subdivisions (3) through 
     (13) as subdivisions (2) through (12), respectively.
       (b) Clause 2(g)(1) of rule XI of the Rules of the House of 
     Representatives is amended by striking ``, except as provided 
     by clause 3(f)(2)''.
       (d) The first sentence of clause 3(e) of rule XI of the 
     Rules of the House of Representatives is amended by striking 
     ``, except as provided in paragraph (f)(2)''.

  The SPEAKER pro tempore. The gentleman from Florida [Mr. Goss] is 
recognized for 1 hour.
  Mr. GOSS. Mr. Speaker, for purposes of debate only, I yield the 
customary 30 minutes to the gentleman from Massachusetts [Mr. Moakley], 
pending which I yield myself such time as I may consume. During 
consideration of this resolution, all time yielded is for the purposes 
of debate only.
  Mr. Speaker, on this very important subject, to me this subject, Mr. 
Speaker, is a question of truth and do we believe that the American 
people have the right to discern the truth.
  House Resolution 301 is a straightforward rule. It is a 
straightforward rule change to repeal the exception to the requirement 
that public committee proceedings be open to all media, all types of 
media. This resolution continues the process we began in 1995 of 
opening up our committee proceedings to enhance public scrutiny and 
greater accountability. The resolution repeals clause 3(f)(2) of House 
rule XI, known inside this building as the camera rule.
  As Members recall, when we began the 104th Congress under new 
management for the first time in 40 years, we instituted an openness 
policy that said that committee meetings and hearings that are open to 
the public shall also be open to the media. This sunshine rule 
reaffirms the right of the public to have all types of media cover most 
of our proceedings, making it clear that such coverage is no longer 
treated as a privilege to be granted and taken away at the discretion 
of a committee or subcommittee.
  The only deviation from this policy has been the exception found in 
clause 3(f)(2) giving subpoenaed witnesses the absolute right to 
decide, for whatever reason, to pull the plug on certain types of media 
coverage of their testimony at an otherwise public hearing.
  Mr. Speaker, this exception to the sunshine rule is a holdover from 
another era. We heard testimony in the

[[Page H10599]]

Committee on Rules from the distinguished dean of this House, the 
gentleman from Michigan, [Mr. John Dingell], who is one of the most 
respected and probably one of the most feared committee chairmen ever 
to serve in this body. Mr. Dingell cautioned us not to repeal this 
exception for subpoenaed witnesses, and he raised the specter of the 
McCarthy hearings that took place nearly half a century ago.
  None of us is proud of that period in the history of this 
institution. Certainly, we have learned a lot. Clearly, there were 
excesses as powerful Members of Congress overstepped the bounds of 
fairness. When the House first began the process of evolving into the 
modern television age in 1970, Members, remembering the McCarthy era, 
wisely took a go-slow approach to phasing in audio and visual media 
coverage of congressional proceedings.
  But, Mr. Speaker, that was more than a quarter of a century ago. Time 
does fly. As my children and my grandchildren are constantly reminding 
me, times have changed. Like it or not, we are living in an era of high 
technology and instant global communication. Television, radio, and 
even cyberspace are commonplace in our lives and have become part of 
the daily media diet of countless Americans. Congress just has to get 
on with the program, even if we are sometimes a bit slow about 
embracing the modern technological revolution.
  My colleagues are aware that C-SPAN is a huge success among the 
American people precisely because our constituents have come to expect 
and rely upon seeing for themselves what it is we do, without the 
filter of someone else's pen or an editor deciding how to package 
certain information for public consumption; just straight stuff, no 
spin doctors; viewers draw their own conclusions.
  Mr. Speaker, I come from the Sunshine State, aptly named for more 
than just the one most obvious reason, about our wonderful climate, 
especially at this time of year. We also have in Florida sunshine rules 
for all levels of government. I have found time and again that sunshine 
is the best antidote to excess and abuse, and it is indeed the path to 
truth.
  I know there is concern about protecting reluctant witnesses from 
unfair questioning or uncivil badgering before a committee of this 
House. But rather than turning off the cameras, shutting down the 
radio, and prohibiting still photography, I submit to my colleagues 
that the better option is to let all the sunshine in, remembering that 
the print media are still there. If a witness is unfairly treated by 
any Member of this House, it will be clear to the people who witness 
that occurrence on television or on the radio.
  Furthermore, I expect that our committee chairmen will take control 
of proceedings under their charge if things get out of hand. It comes 
down to the fact that I have faith in the American people and I have 
faith in the Members who run our committees.
  It is my view that the American people are smarter than some of our 
colleagues seem to think. They can discern for themselves if they are 
seeing and hearing a witch-hunt or a show trial or some type of 
proceeding or some kind of personal grandstanding.
  My friend, the distinguished gentleman from Massachusetts [Mr. 
Moakley], vice chairman of the Committee on Rules and former chairman, 
for whom I have the utmost respect, has lamented the fact that this 
rules change does some sort of violence to the concept of the people's 
House.
  Indeed, this is the people's House, but I would argue just the 
opposite, that if this truly is the people's House and we want to share 
it with the people, why would we want to arbitrarily restrict the 
people's ability to see what goes on in our committee rooms?

                              {time}  1900

  Mr. Speaker, it is my view that the best way to rein in a bully on a 
committee dais is to expose him or her to public scrutiny. Audio and 
visual coverage of the committee event is as much a check on a runaway 
Member who wishes to bully a witness as it is a check on a witness who 
may have something to hide from full public scrutiny.
  I would like for one moment to assure my colleagues that this rules 
change does nothing, let me repeat, does nothing to the crucial and 
truly meaningful witness protections that exist in our House rules 
under rule XI, clause 2. Clause 2(g) provides clear guidance to the 
committees and subcommittees of the House about when it is appropriate 
to conduct their business in closed session with no media or outsiders 
present. These guidelines account for instances where material 
discussed pertains to national security information, for example, 
perhaps sensitive law enforcement information, information that would 
tend to defame, degrade, or incriminate any person, or information that 
would violate any law or will of this House. That is quite a broad 
spectrum. In such cases, a committee may, with a full quorum present, 
vote by majority to close the proceedings to all except Members and 
appropriate staff.
  In addition, clause 2(k)(5) of rule XI provides that whenever it is 
asserted that testimony at a hearing may tend to defame, degrade, or 
incriminate any person, such testimony will be taken in closed session 
if the committee determines by majority vote of those present, a 
requisite number being present, that the testimony may tend to defame, 
degrade, or incriminate any person.
  That sounds like a lot of parliamentary lawyerese-type talk, but the 
bottom line is that there are mechanisms to close meetings to all media 
coverage if there is justification without arbitrarily discriminating 
against certain types of media.
  I should also point out that nothing we do in our House rules in any 
way limits a witness' constitutional right, specifically the option to 
take the fifth amendment and refuse to answer questions.
  Mr. Speaker, I would like to point out that the other body does not 
have a similar rule to the one we are considering repealing today. 
There is no absolute ability for a subpoenaed witness at a proceeding 
in the other body to arbitrarily decide to shut off broadcast coverage 
of his or her testimony. Life has actually gone on quite well over 
there in the other body, I believe, without such a rule, and I think 
that should be of some comfort to those Members who believe the sky 
might fall in if we make the change proposed here today and let the 
full sunshine in.
  Mr. Speaker, I would also like to point out to Members that this 
effort was one that was undertaken by Democrat Members as well as 
Republican Members. The legislative history of committee proceedings in 
the House has examples of several distinguished Democrat then committee 
chairmen expressing their interest in seeing this exception to media 
coverage eliminated.
  In sum, this rule is a change that will further the cause of sunshine 
and accountability in the people's House. I hope my colleagues will 
support it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MOAKLEY. Mr. Speaker, I yield myself such time as I may consume, 
and I thank my very dear friend the gentleman from Florida [Mr. Goss] 
for yielding me the time.
  Mr. Speaker, in case any of my colleagues are unclear about what is 
about to happen, the House is now debating a resolution that takes away 
the fundamental right guaranteed to witnesses by the House rules. These 
rules were put in place to protect American citizens and others who are 
asked to stand before Congress and to tell the truth, and they should 
be protected at all costs.
  Furthermore, Mr. Speaker, there is no reason on Earth to rush this 
resolution, but, for some reason, the Republican leadership is doing it 
anyway. The majority leader did not announce this resolution on the 
Friday when he announced the schedule for the week. This resolution was 
not listed on the floor schedule that was distributed on Monday 
morning. The Committee on Rules held a hearing after dark on Tuesday, 
which raised serious and technical questions and never came close to 
resolving moral or political concerns. Mr. Speaker, the Committee on 
Rules still marked up the resolution; and here we are today.
  Mr. Speaker, there is no reason whatsoever the House should be acting 
so carelessly and so dangerously. But, as they say, ``There is no 
business like show business.'' And our friend, the gentleman from 
Indiana [Mr. Burton], plans hearings for Thursday and will

[[Page H10600]]

continue between sessions. And someone wants to be sure that the 
witnesses who testify before this committee are stripped of any 
protection under the rules.
  Mr. Speaker, the rule my colleagues want to repeal was adopted in 
response to the shameful abuses of this House in the McCarthy era. Some 
say it originated with a suicide note. A young cancer researcher named 
William K. Sherwood was subpoenaed to appear on camera before the 
committee. Two days before his scheduled appearance, he wrote a note 
expressing his fierce resentment at being televised and then jumped 
from the hotel window to his death. Largely in reaction to this event, 
Mr. Speaker, camera and live broadcasts were banned from the committee 
hearings from 1957 until 1970, when the Congress enacted the 
Legislative Reorganization Act.
  The 1970 act, which grew out of an extensive and lengthy hearing 
process by a special subcommittee, contained the identical language, 
word for word, that is in current rules, the same language that my 
colleagues seek to repeal.
  Senator Javits, while serving in the House, was one of the first 
Members to champion the use of TV cameras in Congress; however, even he 
knew how it might impact on the rights of witnesses. And in February 
1952 he said, ``The indiscriminate use of television and radio could 
very easily in many cases work out to invade the individual's rights.'' 
Mr. Speaker, how right he was.
  Representative Hugh Scott, chairman of a rules subcommittee in the 
Republican-controlled 1983 Congress, said in March 1955 that a code of 
fair committee procedures must ``protect a witness from distraction, 
harassment, or nervousness caused by radio, TV, and motion picture 
coverage of hearings.'' The closest we have to that warning is clause 
3(f) of rule XI. And if Members on that side of the aisle have their 
way, that soon will be gone.
  Witnesses do not have the opportunity to rebut statements made to 
them by Members of the panel. They cannot object to a question that is 
misleading or incriminating. They can be held in contempt if they 
refuse to answer any question, regardless of how inappropriate that 
question may be. They can bring a lawyer with them, Mr. Speaker, but 
that lawyer is virtually powerless to halt an unfair line of 
questioning. And to further subject these witnesses to unwanted 
television and radio coverage is a flagrant abuse of power by the 
members of the committee.
  Mr. Speaker, committees do make mistakes. Recently the gentleman from 
Indiana [Mr. Burton] subpoenaed the records of the wrong Chi Wong. And 
they did it again. They subpoenaed the records of the wrong Li Ping 
Chen. They subpoenaed the records of a Li Ping Chen Hudson, who had 
nothing to do with fundraising. And these subpoenas were for documents, 
Mr. Speaker, but these innocent citizens might just as easily have been 
called to be grilled before a rolling TV camera.
  The protection provided in clause 3(f)(2) of rule XI is all that a 
witness can use to protect him or herself from such exploitation. Now 
even that small refuge is to be taken away, leaving witnesses at the 
mercy of an often hostile panel.
  Mr. Chairman, when I was chairman of the Committee on Rules, I, too, 
heard from the frustrated chairmen who wanted to repeal this rule 
because an individual invoked their rights. They said the rule inhibits 
freedom of the press. I told them that the first amendment rights of 
the press and public's right to know are in no way diminished by the 
rule in its present form.

  The print and broadcast press are not excluded from a hearing, and 
nothing in the rule prevents any reporter from fully covering the 
hearing. But American citizens do have a right to privacy, which 
includes a right to avoid the limelight of a camera, and when Congress 
compels an individual to testify, he or she should have the absolute 
right to demand that the cameras be turned off.
  Mr. Speaker, I deeply regret that we are moving in this direction 
today. I can only implore you and the majority not to strip away this 
vital protection from those witnesses who are mandated to testify by 
order of congressional subpoena.
  Just the other day in this Chamber, we passed a measure to reform the 
Internal Revenue Service by a vote of 425 to 4. The legislation was so 
widely approved because of stories of the IRS as an overzealous tax 
collector treating American citizens with suspicion, making the average 
citizen prove his innocence, intimidating Americans.
  Let us not allow the reputation of this institution to be besmirched 
by the image of rude, arrogant, browbeating Members attacking poor, 
innocent Americans called to appear before the committee against their 
will. Please, Mr. Speaker, do not strip away this very, very small 
protection. Mark my word, Mr. Speaker, we will come to regret this day 
if we pass this rule.
  Finally, I must remind my colleagues, if they repeal this rule, only 
Members of Congress will be shielded from the cameras when their 
reputations are at stake in a congressional investigation. That is not 
right.
  Mr. Speaker, as my friend, the gentleman from Florida [Mr. Goss], 
said, this is the people's House. This is the people's House. Let us 
protect the people's rights. So I urge my colleagues to defeat this 
rule.
  Ordinary Americans should have the same protections that Members of 
Congress have.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GOSS. Mr. Speaker, might I inquire what the time counts are?
  The SPEAKER pro tempore (Mr. Snowbarger). The gentleman from Florida 
[Mr. Goss] has 22 minutes remaining. The gentleman from Massachusetts 
[Mr. Moakley] has 21 minutes remaining.
  Mr. GOSS. Mr. Speaker, I yield 3 minutes to the distinguished 
gentleman from Georgia [Mr. Barr].
  Mr. BARR of Georgia. Mr. Speaker, I pause to let the smoke screen 
clear for just a moment so we can see what is really at stake here, Mr. 
Speaker, and I suppose, just as importantly, what this proposed rule 
change is not about.
  This rule change, despite the smoke screen thrown up by its 
opponents, is not about somebody who may have committed suicide two 
generations ago, as tragic as I am sure that is. This is not, Mr. 
Speaker, about an effort to shield Members of Congress. It is not a 
question about taking anybody's rights away.
  As we let the smoke screen clear, Mr. Speaker, what we see is a very 
simple rule change that is at the heart of both common sense and the 
way that Congress operates and was envisaged to operate by our Founding 
Fathers. For one only has to look in Jefferson's Manual, Mr. Speaker, 
in the rules of this House, going back over 200 years, to see a common 
underpinning of openness in the proceedings of this great body. And it 
is only from time to time when there is perceived an overriding need to 
place limitation on that openness that that great principle envisaged 
by our Founding Fathers of openness and public access to all that we do 
should be entertained.
  The rule before us today is very simple. It simply states that no 
subpoenaed witness can hold the Congress hostage and can prevent the 
American people from knowing what it is pursuant to the people's 
business that they are testifying about. That is all it does. It does 
not take away the majority right of a majority of any committee of this 
Congress for good and sufficient reasons, including if they believe 
that the rights of a witness require privacy, that the broadcasting, 
the photographing, the recording must be turned off.
  Congress and individuals before this Congress continue to retain that 
possibility, that right. This rule simply says that a witness who comes 
forward under subpoena cannot for their own reasons hide behind the 
cloak of secrecy and not let the American people know why it is they 
are before the Congress and what they are testifying about. It takes 
away that hammer that they can hold over the openness that we otherwise 
enshrine in those proceedings.

                              {time}  1915

  It is very interesting, Mr. Speaker, that the gentleman from 
California [Mr. Lantos], a very learned and senior Member of the other 
side, took to the floor in September and October 1989 when he happened 
to be in the majority and argued, apparently very eloquently, that the 
very rule which we

[[Page H10601]]

are simply moving tonight to amend and open up does not serve the 
interests of the American people, nor, and I quote the gentleman from 
California, is the rule required as a protection to any witness, close 
quote. He says that he, quote, fully disagrees with this rule because, 
and I further quote Mr. Lantos, I believe the American people are 
entitled to open government.
  Mr. Speaker, the gentleman from California [Mr. Lantos] was right 
then and he is right now. It is openness that is at the heart of our 
business here in this Congress. We provide fully to protect the 
interests of each and every witness, subject only to the vagaries of 
members of the committee. I urge very strongly that this arcane, 
outdated, unnecessary, and arbitrary rule which closes off certain 
avenues of reporting of what is going on and not others be adopted in 
favor of openness and the public's right to know.
  Mr. MOAKLEY. Mr. Speaker, I yield myself such time as I may consume.
  The last speaker is correct. The gentleman from California [Mr. 
Lantos] did argue for this. I was chairman of the Committee on Rules 
when he came before me to ask that this rule be changed. I did not 
think it should be changed then when I was chairman, and I do not think 
it should be changed now when I am not chairman. I do not think it is a 
political matter. It really does deprive the witnesses going before 
that committee of probably the only right they have.
  Mr. Speaker, I yield 7 minutes to the gentleman from Pennsylvania 
[Mr. Kanjorski].
  Mr. KANJORSKI. Mr. Speaker, because of the nature of this rule that 
is before the House, I would request of my friends that control the 
time on the Republican side that they allow at this time my questioning 
the presence of a quorum and that we have a quorum call of the House, 
so that all the Members of the House can take part and listen to the 
debate we are having.
  Mr. SOLOMON. If the gentleman will yield, both cloakrooms have 
notified the Members, and I am sure they are watching if they are not 
here. They have been duly notified. I would be glad to notify ours 
again if the gentleman would like to do the same.
  Mr. KANJORSKI. At 7:17 when I am about to speak, let the record show 
that there are less than 20 Members of Congress on either side of the 
aisle present in the Chamber.
  Mr. Speaker, I am on the Democratic side, but I do not stand today as 
a Democrat. I stand today first and foremost as an American and 
secondly as a Member of one of the finest institutions I have ever had 
the opportunity to be a part of, the House of Representatives of the 
United States.
  I come here with a heavy heart, because I have a tradition in this 
House that goes back to 1953. I am probably the only Member of this 
House that participated in the McCarthy hearings in the Senate and many 
of the un-American activity hearings of the House of Representatives in 
that period of time. I am here because many of my friends are on both 
sides of the aisle, and I think about this issue as an institutional 
issue. We are about to close the opportunity to protect or allow for 
the protection of privacy and individual rights of private citizens, 
one of the few interferences that I can imagine and one of the few 
protections that private citizens have had for the last 50 years before 
this House.
  We know that in 1952, a request for noncoverage by television and 
radio was made and then-Speaker Sam Rayburn granted that permission. 
That was carried through the tradition of Joseph Martin as Speaker of 
this House in the 83d Congress; it was carried through into 1955 when 
another request was made and Sam Rayburn granted that request, that 
television and radio be turned off, and in every other respect a record 
and public appearance was had by that witness.
  In 1957, because of that same question, of carrying open television 
and radio of a witness, there was actually one individual from 
California, a cancer researcher, that instead of being televised, took 
his life, because as he wrote in his note, he had a fierce resentment 
of being televised and he felt that he preferred death over being 
assassinated by publicity.
  As a result of that act and the common rules of the House maintained 
by the precedents of Sam Rayburn, we folded into the reorganization 
rules of the House in 1970 a permanent right that an average American 
citizen, called upon to testify by a committee of this Congress 
involuntarily, through subpoena, would have the right to protect their 
privacy by not being displayed on tens of millions or hundreds of 
millions of television sets and heard on the airwaves the world over; 
that if they felt that their individual liberties would be impacted 
that way, they should have a right to assert a right not to be 
televised and not to be heard on radio.
  Today, the Congress is about to strip that right away, even though I 
understand that in some instances it has been used and abused. I think 
an official of the United States Government should never have the right 
to assert this. I suggested to the chairman of the Committee on Rules 
that an amendment be in order that the person would have the right to 
assert the right of privacy and not be televised, but that two-thirds 
of the members of any investigating committee could overrule that 
right, and in any instance where a Cabinet officer, an official of this 
government were called, I would have been one of those two-thirds that 
would override that right.
  But instead, by carte blanche, we are going to change the rule and 
say an individual involuntarily called to testify before this Congress, 
regardless of the significance or insignificance of their testimony, is 
going to have their privacy invaded to the extent that their picture 
and voice can travel the world over, when on the other hand, and I 
cited some of my friends on the other side, absolute hunting licenses 
for irresponsible Members of this body now and in the future, who can 
make any statement of fact in the presentation of their question and 
slander or libel that American citizen, who will have no recourse in 
law because we as Members of Congress are cloaked with absolute 
immunity in the actions on this House floor or in the committee. I 
think that unfairness is unforgivable and it is dastardly.
  I will make the point, we are coming very close in this House to 
tyranny by the majority. Mr. Speaker, the Constitution of the United 
States and the laws of this land have not been written for the 
protection of the majority. They have their protection in a system of 
government such as ours. The Constitution and laws of this land are put 
into place to protect the minority. Sometimes that minority is just one 
individual who does not want to surrender his family, himself, his 
reputation to degradation from irresponsible statements or 
irresponsible publicity.
  Before any Member on the Republican side or the Democratic side casts 
their vote, just remember that this is really an issue of individual 
rights in this country. We have life, liberty and the pursuit of 
happiness. We have already had one life taken because of this fear. The 
liberty now is at risk of a private citizen who just for any number of 
reasons, good or bad, may not want to subject his family or himself to 
the insult or the embarrassment of going public with any story. He may 
not want to be subjected or libeled in public by an irresponsible 
Member of Congress, or slandered. And we are going to do away with that 
right and give no recourse to our private citizens.
  I think it is a sad day in the Congress of the United States when we, 
with all the might and power of the subpoena and all the might and 
power that is placed in us by our fellow citizens in the Constitution, 
feel that we must arm ourselves against the lowest of low individual, 
the single individual who may want to protect his right to privacy.
  Mr. GOSS. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Colorado, Mr. Dan Schaefer.
  (By unanimous consent, Mr. Dan Schaefer of Colorado was allowed to 
speak out of order.)


          Removal of Name of Member as Cosponsor of H.R. 1173

  Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I ask unanimous consent to 
have my name removed as a cosponsor of the bill, H.R. 1173.
  The SPEAKER pro tempore (Mr. Snowbarger). Is there objection to the 
request of the gentleman from Colorado?
  There was no objection.

[[Page H10602]]

  Mr. GOSS. Mr. Speaker, I yield 3 minutes to the distinguished 
gentleman from Illinois [Mr. Hyde], the chairman of the Committee on 
the Judiciary.
  (Mr. HYDE asked and was given permission to revise and extend his 
remarks.)
  Mr. HYDE. I thank the gentleman for yielding me this time.
  Mr. Speaker, a democracy depends on an informed electorate. If the 
information about how the government is being run or what the truth is 
about controversial issues is withheld from the public, from the people 
who are the ultimate governors in this representative democracy, we 
have a flawed democracy.
  When we only permit the print media to cover hearings, to cover 
important testimony, we are depending then on the news as filtered 
through the bias, the space limitations, the concerns of the journalist 
to get the information. We deprive the public of the immediacy, the 
graphic, unvarnished, spin-free version of the truth by not letting 
them see with their own eyes. The Lucky Luciano rule is what this is, 
back in the old days when the big boys did not want their pictures on 
television, so they took pictures of their hands, as I recall, in the 
Kefauver committee.
  But it just seems to me we have here a classic conflict of rights. 
One right is the right to privacy and the other is the right of the 
people to know. And in that conflict, they both cannot prevail. In my 
judgment, the right of the people to know is absolutely indispensable.
  Yes, you can be abused. Yes, you can be slandered. You can be 
slandered in the print media, you can be slandered in conversations and 
certainly in campaigns. It seems to be the vogue. But I would hope in a 
committee made up of Democrats and Republicans, somebody would have the 
courage to defend the witness if somebody is being abusive.
  I have seen Members of Congress be abusive to people. I have also 
seen them shut up and be told they are liars and give as good as they 
get and get as good as they give. I know if the gentleman from 
Massachusetts [Mr. Moakley] were present or the gentleman from 
Pennsylvania [Mr. Kanjorski] were present in a hearing and a witness 
was being abused, they would not stand for it, and the abuser would not 
come out unscathed.
  This is not an easy question. This is a tough question. We have a 
conflict of rights, a conflict of interest. But it seems to me the 
paramount right is for the public to know, and they should not have to 
rely on the narrow availability, the judgment, the taste, the writing 
ability of print journalists. Not everybody can see those papers, not 
everybody reads the paper every day. But you put the good old C-SPAN on 
and you know what is going on. That is an advantage for democracy.
  Mr. MOAKLEY. Mr. Speaker, I yield myself such time as I may consume.
  This bill does not deprive the press in the room. Cameramen can be in 
the room, television men can be in the room. They just cannot use their 
devices. But they can reduce to writing what they hear. They can get 
pictures of the person going into the committee and coming out of the 
committee. The public's right to know is not stifled one iota here.
  Mr. Speaker, I yield 3 minutes to the gentleman from Michigan [Mr. 
Stupak].
  (Mr. STUPAK asked and was given permission to revise and extend his 
remarks.)
  Mr. STUPAK. I thank the gentleman for yielding me this time.
  Mr. Speaker, I oppose this resolution because I believe it is 
necessary to give witnesses the right to protect their reputation by 
preventing TV cameras and print photographers from a hearing. I do so 
because of a hearing that took place last week which really magnified 
the irresponsibility and the improperness of the majority's conduct 
that the gentleman from Illinois [Mr. Hyde] just spoke of in 
structuring their oversight investigations.
  The problem is not necessarily the rule but how are we going to apply 
it in our job as Members of the U.S. Congress. Every day the majority 
party wants new investigations. Every day we have more and more calls 
for investigations. What do you have when you have political people 
doing political investigations? You get more politics. We do not get to 
the truth of the matter but rather we get more and more politics. That 
is what investigation and oversight has been used for in this Congress 
with the new majority party.
  I am a former law enforcement officer. I was trained to assure that 
the accused of a crime, that their behavior was based on facts that 
could prove the guilt or innocence of an individual. Unfortunately, the 
majority's standards are much lower than that of law enforcement, 
because the majority, and especially the chairman of the Subcommittee 
on Oversight and Investigations of the Committee on Commerce, held a 
hearing, and there were leaks before we had the hearing and they 
promised with the leaks, to get the media there, that there would be a 
smoking gun that would have the fingerprints of the Vice President on 
it.

                              {time}  1930

  That was to get everybody to show up, and, lo and behold, we go up to 
the hearing, and we have a memo from the majority counsel once again 
saying we are having a hearing, that, quote, and I am going to quote 
from the memo by the majority party, there is no smoking gun which 
opens us up to partisan criticism for engaging in a witch hunt.
  And that is exactly what they did. They said in the same memo that, 
we are going to make people come and testify under oath because, quote, 
it forces key players to deny allegations of misconduct under oath, 
and, I will quote again, it generates an enormous press opportunity for 
us, end of quote.
  Mr. Speaker, 40 years ago, the same kind of tactics took place by a 
Senator from Wisconsin. He made a mockery of the congressional 
investigations and of Congress itself, just like we had last week after 
21 hours of testimony, not one scintilla, not one scant of evidence of 
any wrongdoing, but these people were drawn before the TV cameras for 
21 hours to deny their innocence.
  The rule prohibiting the filming of testimony without the witness' 
consent was adopted in response to what happened 40 years ago. It 
should continue today because the same abuses occur by the majority 
party.
  Mr. Speaker, we should not be holding hearings so that witnesses are 
forced to deny their innocence and for a press opportunity. I urge my 
colleagues to oppose this resolution and stand up for a fair 
investigatory process.
  Mr. GOSS. Mr. Speaker, I yield to the gentleman from Alabama [Mr. 
Callahan], the distinguished subcommittee chairman of the Committee on 
Appropriations.


 conference report on h.r. 2159, foreign operations, export financing, 
             and related programs appropriations act, 1998

  Mr. CALLAHAN submitted the following conference report and statement 
on the bill (H.R. 2159) making appropriations for foreign operations, 
export financing, and related programs for the fiscal year ending 
September 30, 1998, and for other purposes:

                  Conference Report (H. Rept. 105-401)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2159) ``making appropriations for foreign operations, export 
     financing, and related programs for the fiscal year ending 
     September 30, 1998, and for other purposes,'' having met, 
     after full and free conference, have agreed to recommend and 
     do recommend to their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with an 
     amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:

     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

[[Page H10603]]

     under this Act that has detonated a nuclear explosive after 
     the date of enactment of this Act.


                         subsidy appropriation

       For the cost of direct loans, loan guarantees, insurance, 
     and tied-aid grants as authorized by section 10 of the 
     Export-Import Bank Act of 1945, as amended, $683,000,000 to 
     remain available until September 30, 2001: 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: Provided further, That funds appropriated 
     by this paragraph are made available notwithstanding 
     section 2(b)(2) of the Export-Import Bank Act of 1945, in 
     connection with the purchase or lease of any product by 
     any East European country, any Baltic State, or any agency 
     or national thereof.


                        ADMINISTRATIVE EXPENSES

       For administrative expenses to carry out the direct and 
     guaranteed loan and insurance programs (to be computed on an 
     accrual basis), including hire of passenger motor vehicles 
     and services as authorized by 5 U.S.C. 3109, and not to 
     exceed $20,000 for official reception and representation 
     expenses for members of the Board of Directors, $48,614,000: 
     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, 
     $41,500,000, 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

                CHILD SURVIVAL AND DISEASE PROGRAMS FUND

       For necessary expenses to carry out the provisions of 
     chapters 1 and 10 of part I of the Foreign Assistance Act of 
     1961, for child survival, basic education, assistance to 
     combat tropical and other diseases, and related activities, 
     in addition to funds otherwise available for such purposes, 
     $650,000,000, to remain available until expended: Provided, 
     That this amount shall be made available for such activities 
     as: (1) immunization programs; (2) oral rehydration programs; 
     (3) health and nutrition programs, and related education 
     programs, which address the needs of mothers and children; 
     (4) water and sanitation programs; (5) assistance for 
     displaced and orphaned children; (6) programs for the 
     prevention, treatment, and control of, and research on, 
     tuberculosis, HIV/AIDS, polio, malaria and other diseases; 
     (7) up to $98,000,000 for basic education programs for 
     children; and (8) a contribution on a grant basis to the 
     United Nations Children's Fund (UNICEF) pursuant to section 
     301 of the Foreign Assistance Act of 1961.


                  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, $1,210,000,000, to remain available 
     until September 30, 1999: Provided, That of the amount 
     appropriated under this heading, up to $22,000,000 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 
     $14,000,000 may be made available for the African Development 
     Foundation and shall be apportioned directly to that agency: 
     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, not to exceed $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 none of the funds made 
     available under this heading may be used for any activity 
     which is in contravention to the Convention on 
     International Trade in Endangered Species of Flora and 
     Fauna (CITES).


                  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

[[Page H10604]]

     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.


                                 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.


                                 burma

       Of the funds appropriated under the headings ``Development 
     Assistance'' and ``Economic Support Fund'', 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 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 in this Act may be made 
     available for the Government of Cambodia: Provided, That the 
     restrictions under this heading shall not apply to 
     humanitarian, demining or election-related programs or 
     activities: Provided further, That such funds shall be 
     subject to the regular notification procedures of the 
     Committees on Appropriations: Provided further, That 30 days 
     after enactment of this Act, the President 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.


                   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, $190,000,000, 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; of 
     modifying concessional loans extended to least developed 
     countries, as authorized under section 411 of the 
     Agricultural Trade Development and Assistance Act of 1954, as 
     amended; and of modifying any obligation, or portion of such 
     obligation for Latin American countries to pay for purchases 
     of United States agricultural commodities guaranteed by the 
     Commodity Credit Corporation under export credit guarantee 
     programs authorized pursuant to section 5(f) of the Commodity 
     Credit Corporation Charter Act of June 29, 1948, as amended, 
     section 4(b) of the Food for Peace Act of 1966, as amended 
     (Public Law 89-808), or section 202 of the Agricultural Trade 
     Act of 1978, as amended (Public Law 95-501); $27,000,000, to 
     remain available until expended: Provided, That not to exceed 
     $1,500,000 of such funds may be used for implementation of 
     improvements in the foreign credit reporting system of the 
     United States government.


         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 percent 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, including the cost of guaranteed loans 
     designed to promote the urban and environmental policies 
     and objectives of part I of such Act, $3,000,000, to 
     remain available until September 30, 1999: Provided, That 
     these funds are available to subsidize loan principal, 100 
     percent 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.


     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: 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, $2,400,000,000, 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 funds made available under 
     this heading in previous Acts making appropriations for 
     foreign operations, export financing, and related 
     programs, notwithstanding any provision in any such 
     heading in such previous Acts, up to $116,000,000 may be 
     allocated or made available for programs and activities 
     under this heading including the Middle East Peace and 
     Stability Fund: Provided further, That in carrying out the 
     previous proviso, the President should seek to ensure to 
     the extent feasible that not more than 1 percent of the 
     amount specified in section 586 of this Act should be 
     derived from funds that would otherwise be made available 
     for any single country: Provided further, That funds 
     provided for the Middle East Peace and Stability Fund by a 
     country in the region under the authority of section 
     635(d) of the Foreign Assistance Act of 1961, and funds 
     made available for Jordan following the date of enactment 
     of this Act from previous Acts making appropriations for 
     foreign operations, export financing, and related 
     programs, shall count toward meeting the earmark contained 
     in the fourth proviso under this heading: Provided 
     further, That up to $10,000,000 of funds under this 
     heading in previous foreign operations, export financing, 
     and related programs appropriations Acts that were 
     reprogrammed for Jordan during fiscal year 1997 shall also 
     count toward such earmark: Provided further, That, in 
     order to facilitate the implementation of the fourth 
     proviso under this heading, the requirement of section 515 
     of this Act or any similar provision of law shall not 
     apply to the making available of funds appropriated for a 
     fiscal year for programs, projects, or activities that 
     were justified for another fiscal year: Provided further, 
     That for fiscal year 1998 such portions of the 
     notification required under section 653 of the Foreign 
     Assistance Act of 1961 that relate to the Middle East may 
     be submitted to the Congress as soon as practicable, but 
     no later than March 1, 1998: Provided further, That during 
     fiscal year 1998, of the local currencies generated from 
     funds made available under this heading for Guatemala by 
     this Act and prior Appropriations Acts, the United States 
     and Guatemala may jointly program the Guatemala quetzales 
     equivalent of a total of up to $10,000,000 for the purpose 
     of retiring the debt owed by universities in Guatemala to 
     the Inter-American Development Bank.


                     international fund for ireland

       For necessary expenses to carry out the provisions of 
     chapter 4 of part II of the Foreign Assistance Act of 1961, 
     $19,600,000, which shall be available for the United States 
     contribution to the International Fund for Ireland and shall 
     be made available in accordance with the provisions of the 
     Anglo-Irish Agreement Support Act of 1986 (Public Law 99-
     415): Provided, That such amount shall be expended at the 
     minimum rate necessary to make timely payment for projects 
     and activities: Provided further, That funds made available 
     under this heading shall remain available until September 30, 
     1999.


          assistance for eastern europe and the baltic states

       (a) For necessary expenses to carry out the provisions of 
     the Foreign Assistance Act of 1961

[[Page H10605]]

     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 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) None of the funds appropriated under this heading may 
     be made available for new housing construction or repair or 
     reconstruction of existing housing in Bosnia and Herzegovina 
     unless directly related to the efforts of United States 
     troops to promote peace in said country.
       (e) 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 532 of this Act shall apply.
       (f) The President is authorized to withhold funds 
     appropriated under this heading made available for economic 
     revitalization programs in Bosnia and Herzegovina, if he 
     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.
       (g) Not to exceed $200,000,000 of the funds appropriated 
     under this heading may be made available for Bosnia and 
     Herzegovina exclusive of assistance for police training.
       (h) Not to exceed $7,000,000 of the funds made available 
     for Bosnia and Herzegovina may be made available for the 
     cost, as defined in section 502 of the Congressional Budget 
     Act of 1974, of modifying direct loans and loan guarantees 
     for said country.


  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, $770,000,000, to remain available until September 
     30, 1999: Provided, That the provisions of such chapter shall 
     apply to funds appropriated by this paragraph.
       (b) None of the funds appropriated under this heading shall 
     be made available to the Government of Russia--
       (1) unless that Government is making progress in 
     implementing comprehensive economic reforms based on market 
     principles, private ownership, negotiating repayment of 
     commercial debt, respect for commercial contracts, and 
     equitable treatment of foreign private investment;
       (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; and
       (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, demining, 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) Funds appropriated under title II of this Act, 
     including funds appropriated under this heading, may be made 
     available 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) 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.
       (i) 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.
       (j)(1) Of the funds appropriated under this heading that 
     are allocated for assistance for the Government of Russia, 50 
     percent shall be withheld from obligation until the President 
     determines and certifies in writing to the Committees on 
     Appropriations that the Government of Russia has terminated 
     implementation of arrangements to provide Iran with technical 
     expertise, training, technology, or equipment necessary to 
     develop a nuclear reactor, related nuclear research 
     facilities or programs, or ballistic missile capability.
       (2) Notwithstanding paragraph (1) assistance may be 
     provided for the Government of Russia if the 
     President determines and certifies to the Committees on 
     Appropriations that making such funds available (A) is 
     vital to the national security interest of the United 
     States, and (B) that the Government of Russia is taking 
     meaningful steps to limit major supply contracts and to 
     curtail the transfer of technology and technological 
     expertise related to activities referred to in paragraph 
     (1).
       (k) Of the funds appropriated under this heading, not less 
     than $225,000,000 shall be made available for Ukraine, which 
     sum shall be provided with the understanding that Ukraine 
     will undertake significant economic reforms which are 
     additional to those which were undertaken in the previous 
     fiscal year: Provided, That 50 percent of the amount made 
     available in this subsection, exclusive of funds made 
     available for election related initiatives and nuclear 
     reactor safety activities, shall be withheld from obligation 
     and expenditure until the Secretary of State determines and 
     certifies no later than April 30, 1998, that the Government 
     of Ukraine has made significant progress toward resolving 
     complaints made by United States investors to the United 
     States embassy prior to April 30, 1997: Provided further, 
     That funds made available under this subsection, and funds 
     appropriated for Ukraine in the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 1997 as 
     contained in Public Law 104-208 shall be made available to 
     complete the preparation of safety analysis reports at each 
     nuclear reactor in Ukraine over the next three years.
       (l) Of the funds appropriated under this heading, not less 
     than $250,000,000 shall be made available for assistance for 
     the Southern Caucasus region: Provided, That of the funds 
     provided under this subsection 37 percent shall be made 
     available for Georgia and 35 percent shall be made available 
     for Armenia: Provided further, That of the funds made 
     available for the Southern Caucasus region, 28 percent should 
     be used for reconstruction and remedial activities relating 
     to the consequences of conflicts within the region, 
     especially those in the vicinity of Abkhazia and Nagorno-
     Karabakh: Provided further, That if the Secretary of State 
     after May 30, 1998, determines and reports to the relevant 
     Committees of Congress that the full amount of reconstruction 
     and remedial funds that may be made available under the 
     previous proviso cannot be effectively utilized, up to 62.5 
     percent of the amount provided under the previous proviso for 
     reconstruction and remediation may be used for other purposes 
     under this heading.
       (m) Funds provided under the previous subsection shall be 
     made available for humanitarian assistance for refugees, 
     displaced persons, and needy civilians affected by the 
     conflicts in the Southern Caucasus region, including those in 
     the vicinity of Abkhazia and Nagorno-Karabakh, 
     notwithstanding any other provision of this or any other 
     Act.
       (n) 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 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 democracy or assistance under 
     title V of the FREEDOM Support Act and section 1424 of Public 
     Law 104-201;
       (2) any assistance provided by the Trade and Development 
     Agency under section 661 of the

[[Page H10606]]

     Foreign Assistance Act of 1961 (22 U.S.C. 2421); and
       (3) any activity carried out by a member of the United 
     States and Foreign Commercial Service while acting within his 
     or her official capacity.
       (o) 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.

                           Independent Agency


                              PEACE CORPS

       For expenses necessary to carry out the provisions of the 
     Peace Corps Act (75 Stat. 612), $222,000,000, 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, $215,000,000: Provided, That 
     during fiscal year 1998, the Department of State may also use 
     the authority of section 608 of the Act, without regard to 
     its restrictions, to receive non-lethal excess property from 
     an agency of the United States Government for the purpose of 
     providing it to a foreign country under chapter 8 of part I 
     of that Act subject to the regular notification procedures of 
     the Committees on Appropriations: Provided further, That not 
     later than sixty days after the date of enactment of this 
     Act, the Secretary of State in consultation with the Director 
     of the Office of National Drug Control Policy shall submit 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 United States personnel 
     assigned to each such country; and (3) all costs and expenses 
     obligated for each program, project or activity by each 
     United States agency in each country: Provided further, That 
     of the amount made available under this heading not to exceed 
     $5,000,000 shall be allocated to operate the Western 
     Hemisphere International Law Enforcement Academy: Provided 
     further, That 10 percent of the funds appropriated under this 
     heading shall not be available for obligation until the 
     Secretary of State submits a report to the Committees on 
     Appropriations providing a financial plan for the funds 
     appropriated under this heading and under the heading 
     ``Narcotics Interdiction''.


                         Narcotics Interdiction

       For necessary expenses to carry out the provisions of 
     section 481 of the Foreign Assistance Act of 1961, 
     $15,000,000, to remain available until expended, in addition 
     to amounts otherwise available for such purposes, which shall 
     be available for assistance, including procurement, for 
     support of air drug interdiction and eradication and other 
     related purposes: Provided, That funds appropriated under 
     this heading shall be made available subject to the regular 
     notification procedures of the Committee 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.


                    REFUGEE RESETTLEMENT ASSISTANCE

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


     UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE FUND

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


    nonproliferation, anti-terrorism, demining and related programs

       For necessary expenses for nonproliferation, anti-terrorism 
     and related programs and activities, $133,000,000, 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, the 
     clearance of unexploded ordnance, and related 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 April 1, 1998; 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 thirty 
     calendar 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 
     $10,000,000 may be made available to the Korean Peninsula 
     Energy 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 by donors other than the 
     United States.

                     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, 
     $50,000,000: Provided, 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: Provided further, That funds 
     appropriated under this heading for grant financed military 
     education and training for Indonesia and Guatemala may only 
     be available for expanded international military education 
     and training and funds made available for Guatemala may only 
     be provided through the regular notification procedures of 
     the Committees on Appropriations: Provided further, That none 
     of the funds appropriated under this heading may be made 
     available to support grant financed military education and 
     training at the School of the Americas unless: (1) the 
     Secretary of Defense certifies that the instruction and 
     training provided by the School of the Americas is fully 
     consistent with training and doctrine, particularly with 
     respect to the observance of human rights, provided by the 
     Department of Defense to United States military students at 
     Department of Defense institutions whose primary purpose is 
     to train United States military personnel; (2) the Secretary 
     of Defense certifies that the Secretary of State, in 
     consultation with the Secretary of Defense, has developed and 
     issued specific guidelines governing the selection and 
     screening of candidates for instruction at the School of the 
     Americas; and (3) the Secretary of

[[Page H10607]]

     Defense submits to the Committees on Appropriations a report 
     detailing the training activities of the School of the 
     Americas and a general assessment regarding the performance 
     of its graduates during 1996.


                   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, $3,296,550,000: 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 
     shall, 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 
     $75,000,000 shall be available for assistance for Jordan: 
     Provided further, That during fiscal year 1998 the 
     President is authorized to, and shall, direct drawdowns of 
     defense articles from the stocks of the Department of 
     Defense, defense services of the Department of Defense, 
     and military education and training of an aggregate value 
     of not less than $25,000,000 under the authority of this 
     proviso for Jordan for the purposes of part II of the 
     Foreign Assistance Act of 1961, and any amount so directed 
     shall count toward meeting the earmark in the previous 
     proviso: Provided further, That section 506(c) of the 
     Foreign Assistance Act of 1961 shall apply, and section 
     632(d) of the Foreign Assistance Act of 1961 shall not 
     apply, to any such drawdown: Provided further, That of the 
     funds appropriated by this paragraph, a total of 
     $18,300,000 should be available for assistance for 
     Estonia, Latvia, and Lithuania: Provided further, That 
     none of the funds made available under this heading shall 
     be available for any non-NATO country participating in the 
     Partnership for Peace Program except through the regular 
     notification procedures of the Committees on 
     Appropriations: 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 
     $50,000,000 of the funds appropriated or otherwise made 
     available under this heading should be made available for 
     the purpose of facilitating the integration of Poland, 
     Hungary, and the Czech Republic into the North Atlantic 
     Treaty Organization.
       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, $60,000,000: Provided, That these funds are 
     available to subsidize gross obligations for the principal 
     amount of direct loans of not to exceed $657,000,000: 
     Provided further, That the rate of interest charged on such 
     loans shall be not less than the current average market yield 
     on outstanding marketable obligations of the United States of 
     comparable maturities: Provided further, That funds 
     appropriated under this 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: $105,000,000 only for Greece and 
     $150,000,000 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 and Liberia: Provided 
     further, That funds made available under this heading may be 
     used, notwithstanding any other provision of law, for 
     demining, the clearance of unexploded ordnance, and related 
     activities 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 none of the funds under this heading shall be 
     available for Guatemala: Provided further, That not more than 
     $350,000,000 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, 
     $77,500,000: 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.

               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), $47,500,000, 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, $1,034,503,100, to remain 
     available until expended, of which $234,503,100 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 procurement restrictions applicable to 
     United States firms under the terms of the Interim Trust Fund 
     have been lifted from all funds which Interim Trust Fund 
     donors proposed to set aside for review of procurement 
     restrictions at the conclusion of the February 1997 IDA 
     Deputies Meeting in Paris.


          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.


              CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND

       For the United States contribution by the Secretary of the 
     Treasury to the increase in resources of the African 
     Development Fund, $45,000,000, to remain available until 
     expended and which shall be available for contributions 
     previously due.


  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.

[[Page H10608]]

                    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 of which $250,000 shall be available 
     for contributions previously due: 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: Provided further, That of 
     the amount appropriated under this heading, not more than 
     $41,250,000 may be expended for the purchase of such capital 
     shares in fiscal year 1998.


              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 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, $192,000,000: 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 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 UNFPA: Provided further, That not 
     more than one-half of this amount may be provided to UNFPA 
     before March 1, 1998, and that no later than February 15, 
     1998, the Secretary of State shall submit a report to the 
     Committees on Appropriations indicating the amount UNFPA 
     is budgeting for the People's Republic of China in 1998: 
     Provided further, That any amount UNFPA plans to spend in 
     the People's Republic of China in 1998 shall be deducted 
     from the amount of funds provided to UNFPA after March 1, 
     1998, pursuant to the previous provisos: Provided further, 
     That with respect to any funds appropriated under this 
     heading that are made available to UNFPA, UNFPA shall be 
     required to maintain such funds in a separate account and 
     not commingle them with any other funds: Provided further, 
     That 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): Provided further, That not 
     less than $4,000,000 should be made available to the World 
     Food Program.

                      TITLE V--GENERAL PROVISIONS


             OBLIGATIONS DURING LAST MONTH OF AVAILABILITY

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


     PROHIBITION OF BILATERAL FUNDING FOR INTERNATIONAL FINANCIAL 
                              INSTITUTIONS

       Sec. 502. Notwithstanding section 614 of the Foreign 
     Assistance Act of 1961, as amended, 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: Provided, That the exercise of such authority shall 
     be subject to the regular notification procedures of the 
     Committees on Appropriations.


                  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 Liberia, 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

[[Page H10609]]

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


                          SURPLUS COMMODITIES

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


                       NOTIFICATION REQUIREMENTS

       Sec. 515. For the purposes of providing the Executive 
     Branch with the necessary administrative flexibility, none of 
     the funds made available under this Act for ``Child Survival 
     and Disease Programs Fund'', ``Development Assistance'', 
     ``International organizations and programs'', ``Trade and 
     Development Agency'', ``International narcotics control'', 
     ``Narcotics Interdiction'', ``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'', 
     ``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 percent 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 percent 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 under the 
     Treaty of Peace Between the Arab Republic of Egypt and the 
     State of Israel, done at Washington on March 26, 1979, Israel 
     incurred severe economic burdens. Furthermore, the Congress 
     recognizes that an economically and militarily secure Israel 
     serves the security interests of the United States, for a 
     secure Israel is an Israel which has the incentive and 
     confidence to continue pursuing the peace process. Therefore, 
     the Congress declares that, subject to the availability of 
     appropriations, it is the policy and the intention of the 
     United States that the funds provided in annual 
     appropriations for the Economic Support Fund 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.


                         reporting requirement

       Sec. 519. 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. 520. None of the funds appropriated in this Act shall 
     be obligated or expended for Colombia, Haiti, Liberia, 
     Pakistan, Panama, Peru, Serbia, Sudan, or the Democratic 
     Republic of Congo except as provided through the regular 
     notification procedures of the Committees on Appropriations.


              DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

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


               child survival, aids, and other activities

       Sec. 522. Up to $10,000,000 of the funds made available by 
     this Act for assistance for family

[[Page H10610]]

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


                           RECIPROCAL LEASING

       Sec. 524. 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. 525. Prior to providing excess Department of Defense 
     articles in accordance with section 516(a) of the Foreign 
     Assistance Act of 1961, the Department of Defense shall 
     notify the Committees on Appropriations to the same extent 
     and under the same conditions as are other committees 
     pursuant to subsection (c) of that section: Provided, That 
     before issuing a letter of offer to sell excess defense 
     articles under the Arms Export Control Act, the Department of 
     Defense shall notify the Committees on Appropriations in 
     accordance with the regular notification procedures of such 
     Committees: Provided further, That such Committees shall also 
     be informed of the original acquisition cost of such defense 
     articles.


                       AUTHORIZATION REQUIREMENT

       Sec. 526. Funds appropriated by this Act may be obligated 
     and expended 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. 527. (a) Notwithstanding any other provision of law, 
     funds appropriated for bilateral assistance under any heading 
     of this Act and funds appropriated under any such heading in 
     a provision of law enacted prior to enactment of this Act, 
     shall not be made available to any country which the 
     President determines--
       (1) grants sanctuary from prosecution to any individual or 
     group which has committed an act of international terrorism; 
     or
       (2) otherwise supports international terrorism.
       (b) The President may waive the application of subsection 
     (a) to a country if the President determines that national 
     security or humanitarian reasons justify such waiver. The 
     President shall publish each waiver in the Federal Register 
     and, at least fifteen days before the waiver takes effect, 
     shall notify the Committees on Appropriations of the waiver 
     (including the justification for the waiver) in accordance 
     with the regular notification procedures of the Committees on 
     Appropriations.


                 COMMERCIAL LEASING OF DEFENSE ARTICLES

       Sec. 528. Notwithstanding any other provision of law, and 
     subject to the regular notification 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. 529. 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. 530. 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. 531. 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.


                           SEPARATE ACCOUNTS

       Sec. 532. (a) Separate Accounts for Local Currencies.--(1) 
     If assistance is furnished to the government of a foreign 
     country under chapters 1 and 10 of part I or chapter 4 of 
     part II of the Foreign Assistance Act of 1961 under 
     agreements which result in the generation of local currencies 
     of that country, the Administrator of the Agency for 
     International Development shall--
       (A) require that local currencies be deposited in a 
     separate account established by that government;
       (B) enter into an agreement with that government which sets 
     forth--
       (i) the amount of the local currencies to be generated; and
       (ii) the terms and conditions under which the currencies so 
     deposited may be utilized, consistent with this section; and
       (C) establish by agreement with that government the 
     responsibilities of the Agency for International Development 
     and that government to monitor and account for deposits into 
     and disbursements from the separate account.
       (2) Uses of Local Currencies.--As may be agreed upon with 
     the foreign government, local currencies deposited in a 
     separate account pursuant to subsection (a), or an equivalent 
     amount of local currencies, shall be used only--
       (A) to carry out chapters 1 or 10 of part I or chapter 4 of 
     part II (as the case may be), for such purposes as--
       (i) project and sector assistance activities; or
       (ii) debt and deficit financing; or
       (B) for the administrative requirements of the United 
     States Government.
       (3) Programming Accountability.--The Agency for 
     International Development shall take all 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. 533. (a) No funds appropriated by this Act may be made 
     as payment to any international financial institution while 
     the United States Executive Director to such institution is 
     compensated by the institution at a rate which, together with 
     whatever compensation such Director receives from the United 
     States, is in excess of the rate provided for an 
     individual occupying a position at level IV of the 
     Executive

[[Page H10611]]

     Schedule under section 5315 of title 5, United States 
     Code, or while any alternate United States Director to 
     such institution is compensated by the institution at a 
     rate in excess of the rate provided for an individual 
     occupying a position at level V of the Executive Schedule 
     under section 5316 of title 5, United States Code.
       (b) For purposes of this section, ``international financial 
     institutions'' are: the International Bank for Reconstruction 
     and Development, the Inter-American Development Bank, the 
     Asian Development Bank, the Asian Development Fund, the 
     African Development Bank, the African Development Fund, the 
     International Monetary Fund, the North American Development 
     Bank, and the European Bank for Reconstruction and 
     Development.


         compliance with united nations sanctions against iraq

       Sec. 534. 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. 535. 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.


 EXTENSION OF AUTHORITY TO OBLIGATE FUNDS TO CLOSE THE SPECIAL DEFENSE 
                            ACQUISITION FUND

       Sec. 536. Title III of Public Law 103-306 is amended under 
     the heading ``Special Defense Acquisition Fund'' by striking 
     ``1998'' and inserting ``2000''.


AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMERICAN FOUNDATION AND THE 
                     AFRICAN DEVELOPMENT FOUNDATION

       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 
     Inter-American Foundation Act, or the African Development 
     Foundation Act. The appropriate agency shall promptly report 
     to the Committees on Appropriations whenever it is conducting 
     activities or is proposing to conduct activities in a country 
     for which assistance is prohibited.


                  IMPACT ON JOBS IN THE UNITED STATES

       Sec. 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.


                          special authorities

       Sec. 539. (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 Bosnia and 
     Herzegovina, Croatia, and Kosova, may be made available 
     notwithstanding any other provision of law.
       (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) 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.
       (d)(1) Waiver.--The President may waive the provisions of 
     section 1003 of Public Law 100-204 if the President 
     determines and certifies in writing to the Speaker of the 
     House of Representatives and the President Pro Tempore of the 
     Senate that it is important to the national security 
     interests of the United States.
       (2) Period of application of waiver.--Any waiver pursuant 
     to paragraph (1) shall be effective for no more than a period 
     of six months at a time and shall not apply beyond twelve 
     months after enactment of this Act.


        policy on terminating the arab league boycott of israel

       Sec. 540. 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 decision by the Arab League in 1997 to reinstate 
     the boycott against Israel was deeply troubling and 
     disappointing; and
       (3) the Arab League should immediately rescind its decision 
     on the boycott and its members should develop normal 
     relations with their neighbor Israel; and
       (4) the President should--
       (A) take more concrete steps to encourage vigorously Arab 
     League countries to renounce publicly the primary boycotts of 
     Israel and the secondary and tertiary boycotts of American 
     firms that have commercial relations with Israel as a 
     confidence-building measure;
       (B) take into consideration the participation of any 
     recipient country in the primary boycott of Israel and the 
     secondary and tertiary boycotts of American firms that have 
     commercial relations with Israel when determining whether to 
     sell weapons to said country;
       (C) report to Congress on the specific steps being taken by 
     the President to bring about a public renunciation of the 
     Arab primary boycott of Israel and the secondary and tertiary 
     boycotts of American firms that have commercial relations 
     with Israel and to expand the process of normalizing ties 
     between Arab League countries and 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. 541. (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. 542. (a) Assistance Through Nongovernmental 
     Organizations.--Restrictions contained in this or any other 
     Act with respect to assistance for a country shall not be 
     construed to restrict assistance in support of programs of 
     nongovernmental organizations from funds appropriated by this 
     Act to carry out the provisions of chapters 1 and 10 and 11 
     of part I, and chapter 4 of part II, of the Foreign 
     Assistance Act of 1961: Provided, That the President shall 
     take into consideration, in any case in which a restriction 
     on assistance would be applicable but for this subsection, 
     whether assistance in support of programs of nongovernmental 
     organizations is in the national interest of the United 
     States: Provided further, That before using the authority of 
     this subsection to furnish assistance in support of programs 
     of nongovernmental organizations, the President shall notify 
     the Committees on Appropriations under the regular 
     notification procedures of those committees, including a 
     description of the program to be assisted, the assistance to 
     be provided, and the reasons for furnishing such assistance: 
     Provided further, That nothing in this subsection shall be 
     construed to alter any existing statutory prohibitions 
     against abortion or involuntary sterilizations contained in 
     this or any other Act.
       (b) Public Law 480.--During fiscal year 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. 543. (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

[[Page H10612]]

     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. 544. 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. 545. No part of any appropriation contained in this 
     Act shall be used for publicity or propaganda purposes within 
     the United States not authorized before the date of enactment 
     of this Act by the Congress: Provided, That not to exceed 
     $500,000 may be made available to carry out the provisions of 
     section 316 of Public Law 96-533.


            purchase of american-made equipment and products

       Sec. 546. (a) To the maximum extent possible, assistance 
     provided under this Act should make full use of American 
     resources, including commodities, products, and services.
       (b) It is the Sense of the Congress that, to the greatest 
     extent practicable, all equipment and products purchased with 
     funds made available in this Act should be American-made.
       (c) 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 (b) 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 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 October 1, 1997.
       (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 estimated 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 percent of the total 
     unpaid fully adjudicated parking fines and penalties owed to 
     the District of Columbia by such country as of the date of 
     enactment of this Act shall be withheld from obligation for 
     such country until the Secretary of State certifies and 
     reports in writing to the appropriate congressional 
     committees that such fines and penalties are fully paid to 
     the government of the District of Columbia.
       (b) Definition.--For purposes of this section, the term 
     ``appropriate congressional committees'' means the Committee 
     on Foreign Relations and the Committee on Appropriations of 
     the Senate and the Committee on International Relations and 
     the Committee on Appropriations of the House of 
     Representatives.


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

       Sec. 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.


                     war crimes tribunals drawdown

       Sec. 553. 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. 554. 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 clearance 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: Provided, That not later than 90 
     days after the enactment of this Act, the Secretary of 
     Defense, in consultation with the Secretary of State, shall 
     submit a report to the Committees on Appropriations 
     describing potential alternative technologies or tactics and 
     a plan for the development of such alternatives to protect 
     anti-tank mines from tampering in a manner consistent with 
     the ``Convention on the Prohibition, Use, Stockpiling, 
     Production and Transfer of Anti-personnel Mines and on Their 
     Destruction''.


           restrictions concerning the palestinian authority

       Sec. 555. 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. 556. 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--

[[Page H10613]]

       (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.


                     equitable allocation of funds

       Sec. 557. Not more than 18 percent of the funds 
     appropriated by this Act to carry out the provisions of 
     sections 103 through 106 and chapter 4 of part II of the 
     Foreign Assistance Act of 1961, that are made available for 
     Latin America and the Caribbean region may be made available, 
     through bilateral and Latin America and the Caribbean 
     regional programs, to provide assistance for any country in 
     such region.


                  special debt relief for the poorest

       Sec. 558. (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;
       (3) any obligation or portion of such obligation for a 
     Latin American country, to pay for purchases of United States 
     agricultural commodities guaranteed by the Commodity Credit 
     Corporation under export credit guarantee programs authorized 
     pursuant to section 5(f) of the Commodity Credit Corporation 
     Charter Act of June 29, 1948, as amended, section 4(b) of the 
     Food for Peace Act of 1966, as amended (Public Law 89-808), 
     or section 202 of the Agricultural Trade Act of 1978, as 
     amended (Public Law 95-501).
       (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. 559. (a) Loans Eligible for Sale, Reduction, or 
     Cancellation.--
       (1) Authority to sell, reduce, or cancel certain loans.--
     Notwithstanding any other provision of law, the President 
     may, in accordance with this section, sell to any eligible 
     purchaser any concessional loan or portion thereof made 
     before January 1, 1995, pursuant to 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 percent of the price paid 
     for such debt by such eligible country, or the difference 
     between the price paid for such debt and the face value of 
     such debt, to support activities 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''.


                  international financial institutions

       Sec. 560. (a) Authorizations.--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) Consideration of Environmental Impact of International 
     Finance Corporation Loans.--Section 1307 of the International 
     Financial Institutions Act (Public Law 95-118) is amended as 
     follows:
       (1) in subsection (a)(1)(A) strike ``borrowing country'' 
     and insert in lieu thereof ``borrower'';
       (2) in subsection (a)(2)(A) strike ``country''; and
       (3) at the end of Section 1307, add a new subsection as 
     follows:
       ``(g) For purposes of this section, the term `multilateral 
     development bank' means any of the institutions named in 
     Section 1303(b) of this Act, and the International Finance 
     Corporation.''.
       (c) 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.


          sanctions against countries harboring war criminals

       Sec. 561. (a) Bilateral Assistance.--The President is 
     authorized to 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 
     should 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 for the purpose 
     of evading prosecution, where such persons--
       (1) have been indicted by the International Criminal 
     Tribunal for Rwanda, or any other international tribunal with 
     similar standing under international law; or
       (2) have been indicted for war crimes or crimes against 
     humanity committed during the period beginning March 23, 1933 
     and ending on May 8, 1945 under the direction of, or in 
     association with--
       (A) the Nazi government of Germany;
       (B) any government in any area occupied by the military 
     forces of the Nazi government of Germany;

[[Page H10614]]

       (C) any government which was established with the 
     assistance or cooperation of the Nazi government; or
       (D) any government which was an ally of the Nazi government 
     of Germany.


                   limitation on assistance for haiti

       Sec. 562. (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 substantially completed privatization of (or placed 
     under long-term private management or concession) at least 
     three major public enterprises; 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 law enforcement 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. 563. (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 1997.
       (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)).


   restrictions on voluntary contributions to united nations agencies

       Sec. 564. (a) Prohibition on Voluntary Contributions for 
     the United Nations.--None of the funds appropriated or 
     otherwise made available by this Act may be made available to 
     pay any voluntary contribution of the United States to the 
     United Nations (including the United Nations Development 
     Program) if the United Nations implements or imposes any 
     taxation on any United States persons.
       (b) Certification Required for Disbursement of Funds.--None 
     of the funds appropriated or otherwise made available under 
     this Act may be made available to pay any voluntary 
     contribution of the United States to the United Nations 
     (including the United Nations Development Program) unless the 
     President certifies to the Congress 15 days in advance of 
     such payment that the United Nations is not engaged in any 
     effort to implement or impose any taxation on United States 
     persons in order to raise revenue for the United Nations or 
     any of its specialized agencies.
       (c) Definitions.--As used in this section the term ``United 
     States person'' refers to--
       (1) a natural person who is a citizen or national of the 
     United States; or
       (2) a corporation, partnership, or other legal entity 
     organized under the United States or any State, territory, 
     possession, or district of the United States.


                          assistance to turkey

       Sec. 565. (a) Not more than $40,000,000 of the funds 
     appropriated in this Act under the heading ``Economic Support 
     Fund'' may be made available for Turkey.
       (b) Of the funds made available under the heading 
     ``Economic Support Fund'' for Turkey, not less than fifty 
     percent of these funds shall be made available for the 
     purpose of supporting private nongovernmental organizations 
     engaged in strengthening democratic institutions in Turkey, 
     providing economic assistance for individuals and communities 
     affected by civil unrest, and supporting and promoting 
     peaceful solutions and economic development which will 
     contribute to the settlement of regional problems in Turkey.


         limitation on assistance to the palestinian authority

       Sec. 566. (a) Prohibition of Funds.--None of the funds 
     appropriated by this Act to carry out the provisions of 
     chapter 4 of part II of the Foreign Assistance Act of 1961 
     may be obligated or expended with respect to providing funds 
     to the Palestinian Authority.
       (b) Waiver.--The prohibition included in subsection (a) 
     shall not apply if the President certifies in writing to the 
     Speaker of the House of Representatives and the President pro 
     tempore of the Senate that waiving such prohibition is 
     important to the national security interests of the United 
     States.
       (c) Period of Application of Waiver.--Any waiver pursuant 
     to subsection (b) shall be effective for no more than a 
     period of six months at a time and shall not apply beyond 
     twelve months after enactment of this Act.


         limitation on assistance to the government of croatia

       Sec. 567. None of the funds appropriated or otherwise made 
     available by title II of this Act may be made available to 
     the Government of Croatia to relocate the remains of Croatian 
     Ustashe soldiers, at the site of the World War II 
     concentration camp at Jasenovac, Croatia.


                           burma labor report

       Sec. 568. Not later than one hundred twenty days after 
     enactment of this Act, the Secretary of Labor in consultation 
     with the Secretary of State shall provide to the Committees 
     on Appropriations a report addressing labor practices in 
     Burma.


                                 HAITI

       Sec. 569. 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.


              LIMITATION ON ASSISTANCE TO SECURITY FORCES

       Sec. 570. 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 that 
     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 effective measures to bring the responsible members of 
     the security forces unit to justice: Provided, That nothing 
     in this section shall be construed to withhold funds made 
     available by this Act from any unit of the security forces of 
     a foreign country not credibly alleged to be involved in 
     gross violations of human rights: Provided further, That in 
     the event that funds are withheld from any unit pursuant to 
     this section, the Secretary of State shall promptly inform 
     the foreign government of the basis for such action and 
     shall, to the maximum extent practicable, assist the foreign 
     government in taking effective measures to bring the 
     responsible members of the security forces to justice so 
     funds to the unit may be resumed.


      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 
     the United States expects that the items will not be used in 
     East Timor: Provided, That nothing in this section shall be 
     construed to limit Indonesia's inherent right to legitimate 
     national self-defense as recognized under the United Nations 
     Charter and international law.


                        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 ASSISTANCE 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 financing and related programs, 
     may be provided for any country, entity or canton described 
     in subsection (d).
       (b) Multilateral Assistance.--
       (1) Prohibition.--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 or entity described in subsection (d).
       (2) Notification.--Not less than 15 days before any vote in 
     an international financial institution regarding the 
     extension of financial or technical assistance or grants to 
     any country or entity described in subsection (d), the 
     Secretary of the Treasury, in consultation with the Secretary 
     of State, shall provide to the Committee on Appropriations 
     and the Committee on Foreign Relations of the Senate and the 
     Committee on Appropriations and the Committee on Banking and 
     Financial Services of the House of Representatives a written 
     justification for the proposed assistance, including an 
     explanation of the U.S. position regarding any such vote, as 
     well as a description of the location of the proposed 
     assistance by municipality, its purpose, and its intended 
     beneficiaries.
       (3) Definition.--The term ``international financial 
     institution'' includes the International Monetary Fund, the 
     International Bank for Reconstruction and Development, the 
     International Development Association, the International 
     Finance Corporation, the Multilateral Investment Guaranty 
     Agency, and the European Bank for Reconstruction and 
     Development.
       (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;
       (C) assistance for cross border physical infrastructure 
     projects involving activities in both a sanctioned country, 
     entity, or canton and a nonsanctioned contiguous country, 
     entity, or canton, if the project is primarily located in and

[[Page H10615]]

     primarily benefits the nonsanctioned country, entity, or 
     canton and if the portion of the project located in the 
     sanctioned country, entity, or canton is necessary only to 
     complete the project;
       (D) small-scale assistance projects or activities requested 
     by U.S. armed forces that promote good relations between such 
     forces and the officials and citizens of the areas in the 
     U.S. SFOR sector of Bosnia;
       (E) implementation of the Brcko Arbitral Decision;
       (F) lending by the international financial institutions to 
     a country or entity to support common monetary and fiscal 
     policies at the national level as contemplated by the Dayton 
     Agreement; or
       (G) direct lending to a non-sanctioned entity, or lending 
     passed on by the national government to a non-sanctioned 
     entity.
       (2) Further limitations.--Notwithstanding paragraph (1)--
       (A) no assistance may be made available by this Act, or any 
     prior Act making appropriations for foreign operations, 
     export financing and related programs, in any country, 
     entity, or canton described in subsection (d), for a program, 
     project, or activity in which a publicly indicted war 
     criminal is known to have any financial or material interest; 
     and
       (B) no assistance (other than emergency foods or medical 
     assistance or demining assistance) may be made available by 
     this Act, or any prior Act making appropriations for foreign 
     operations, export financing and related programs for any 
     program, project, or activity in a community within any 
     country, entity or canton described in subsection (d) if 
     competent authorities within that community are not complying 
     with the provisions of Article IX and Annex 4, Article II, 
     paragraph 8 of the Dayton Agreement relating to war crimes 
     and the Tribunal.
       (d) Sanctioned Country, Entity, or Canton.--A sanctioned 
     country, entity, or canton described in this section is one 
     whose competent authorities have failed, as determined by the 
     Secretary of State, to take necessary and significant steps 
     to apprehend and transfer to the Tribunal all persons who 
     have been publicly indicted by the Tribunal.
       (e) Waiver.--
       (1) In general.--The Secretary of State may waive the 
     application of subsection (a) or subsection (b) with respect 
     to specified bilateral programs or international financial 
     institution projects or programs in a sanctioned country, 
     entity, or canton upon providing a written determination to 
     the Committee on Appropriations and the Committee on Foreign 
     Relations of the Senate and the Committee on Appropriations 
     and the Committee on International Relations of the House of 
     Representatives that such assistance directly supports the 
     implementation of the Dayton Agreement and its Annexes, 
     which include the obligation to apprehend and transfer 
     indicted war criminals to the Tribunal.
       (2) Report.--Not later than 15 days after the date of any 
     written determination under paragraph (e)(1), the Secretary 
     of State shall submit a report to the Committee on 
     Appropriations and the Committee on Foreign Relations of the 
     Senate and the Committee on Appropriations and the Committee 
     on International Relations of the House of Representatives 
     regarding the status of efforts to secure the voluntary 
     surrender or apprehension and transfer of persons indicted by 
     the Tribunal, in accordance with the Dayton Agreement, and 
     outlining obstacles to achieving this goal.
       (3) Assistance programs and projects affected.--Any waiver 
     made pursuant to this subsection shall be effective only with 
     respect to a specified bilateral program or multilateral 
     assistance project or program identified in the determination 
     of the Secretary of State to Congress.
       (f) Termination of Sanctions.--The sanctions imposed 
     pursuant to subsections (a) and (b) with respect to a country 
     or entity shall cease to apply only if the Secretary of State 
     determines and certifies to Congress that the authorities of 
     that country, entity, or canton have apprehended and 
     transferred to the Tribunal all persons who have been 
     publicly indicted by the Tribunal.
       (g) Definitions.--As used in this section--
       (1) Country.--The term ``country'' means Bosnia-
     Herzegovina, Croatia, and Serbia-Montenegro (Federal Republic 
     of Yugoslavia).
       (2) Entity.--The term ``entity'' refers to the Federation 
     of Bosnia and Herzegovina and the Republika Srpska.
       (3) Canton.--The term ``canton'' means the administrative 
     units in Bosnia and Herzegovina.
       (4) 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.
       (5) Tribunal.--The term ``Tribunal'' means the 
     International Criminal Tribunal for the Former Yugoslavia.
       (h) Role of Human Rights Organizations and Government 
     Agencies.--In carrying out this subsection, the Secretary of 
     State, the Administrator of the Agency for International 
     Development, and the executive directors of the international 
     financial institutions shall consult with representatives 
     of human rights organizations and all government agencies 
     with relevant information to help prevent publicly 
     indicted war criminals from benefitting from any financial 
     or technical assistance or grants provided to any country 
     or entity described in subsection (d).


              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''.


ADDITIONAL REQUIREMENTS RELATING TO STOCKPILING OF DEFENSE ARTICLES FOR 
                           FOREIGN COUNTRIES

       Sec. 575. (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. 576. 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 is less than the cost to 
     the United States Government of providing such services from 
     existing agency assets.''.


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

       Sec. 577. (a) None of the funds appropriated under this Act 
     may be made available for the Government of the Russian 
     Federation unless within 30 days of the date this section 
     becomes effective the President determines and certifies in 
     writing to the Committees on Appropriations and the Committee 
     on Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives that 
     the Government of the Russian Federation has implemented no 
     statute, executive order, regulation or similar government 
     action that would discriminate, or would have as its 
     principal effect discrimination, against religious groups or 
     religious communities in the Russian Federation in violation 
     of accepted international agreements on human rights and 
     religious freedoms to which the Russian Federation is a 
     party.
       (b) This section shall become effective one hundred fifty 
     days after the enactment of this Act.


 u.s. policy regarding support for countries of the South Caucasus and 
                              Central Asia

       Sec. 578. (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 Asia 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) General.--The policy of the United States in the 
     countries of the South Caucasus and Central Asia should be--

[[Page H10616]]

       (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;
       (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.


                                PAKISTAN

       Sec. 579. (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) 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.


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

       Sec. 580. 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 November 15, 1997.


           AUTHORITY TO ISSUE INSURANCE AND EXTEND FINANCING

       Sec. 581. (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 ``September 30, 1997'' and inserting ``September 30, 
     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. 582. (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.
       (c) Waiver.--Funds may be provided for a country without 
     regard to subsection (a) if the President determines that to 
     do so is in the national security interest of the United 
     States.


                         War Crimes Prosecution

       Sec. 583. 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 ``grave breach of the 
     Geneva Conventions'' and inserting ``war crime'';
       (2) in subsection (b), by striking ``breach'' each place it 
     appears and inserting ``war crime''; and
       (3) so that subsection (c) reads as follows:
       ``(c) Definition.--As used in this section the term `war 
     crime' means any conduct--
       ``(1) defined as a grave breach in any of the international 
     conventions signed at Geneva 12 August 1949, or any protocol 
     to such convention to which the United States is a party;
       ``(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 18 October 1907;
       ``(3) which constitutes a violation of common Article 3 of 
     the international conventions signed at Geneva 12 August 
     1949, or any protocol to such convention to which the United 
     States is a party and which deals with non-international 
     armed conflict; 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.''.


   INTERNATIONAL MILITARY EDUCATION AND TRAINING PROGRAMS FOR LATIN 
                                AMERICA

       Sec. 584. (a) Expanded IMET.--The Secretary of Defense, in 
     consultation with the Secretary of State, should make every 
     effort to ensure that approximately 30 percent of the funds 
     appropriated in this Act for ``International Military 
     Education and Training'' for the cost of Latin American 
     participants in IMET programs will be disbursed for the 
     purpose of supporting enrollment of such participants in 
     expanded IMET courses.
       (b) Civilian Participation.--The Secretary of State, in 
     consultation with the Secretary of Defense, should identify 
     sufficient numbers of qualified, non-military personnel from 
     countries in Latin America so that approximately 25 percent 
     of the total number of individuals from Latin American 
     countries attending United States supported IMET programs and 
     the Center for Hemispheric Defense Studies at the National 
     Defense University are civilians.
       (c) Report.--Not later than twelve months after the date of 
     enactment of this Act, the Secretary of Defense, in 
     consultation with the Secretary of State, shall report in 
     writing to the appropriate committees of the 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 three fiscal 
     years.


       AID TO THE GOVERNMENT OF the Democratic Republic of CONGO

       Sec. 585. None of the funds appropriated or otherwise made 
     available by this Act may be provided to the central 
     Government of the Democratic Republic of Congo until such 
     time as the President reports in writing to the Congress 
     that the central Government of the Democratic Republic of 
     Congo is cooperating fully with investigators from the 
     United Nations in accounting for human rights violations 
     committed in the Democratic Republic of Congo or adjacent 
     countries.


                     ASSISTANCE FOR THE MIDDLE EAST

       Sec. 586. Of the funds appropriated by this Act under the 
     headings ``Economic Support Fund'', ``Foreign Military 
     Financing'', ``International Military Education and 
     Training'', ``Peacekeeping Operations'', for refugees 
     resettling in Israel under the heading ``Migration and 
     Refugee Assistance'', and for assistance for Israel to carry 
     out provisions of chapter 8 of part II of the Foreign 
     Assistance Act of 1961 under the heading ``Nonproliferation, 
     Anti-Terrorism, Demining, and Related Programs'', not more 
     than a total of $5,402,850,000 may be made available for 
     Israel, Egypt, Jordan, Lebanon, the West Bank and Gaza, the 
     Israel-Lebanon Monitoring Group, the Multinational Force and 
     Observers, the Middle East Regional Democracy Fund, Middle 
     East Regional Cooperation, and Middle East Multilateral 
     Working Groups: Provided, That any funds that were 
     appropriated under such headings in prior fiscal years and 
     that were at the time of enactment of this Act obligated or 
     allocated for other recipients may not during fiscal year 
     1998 be made available for activities that, if funded under 
     this Act, would be required to count against this ceiling: 
     Provided further, That funds may be made available 
     notwithstanding the requirements of this section if the 
     President determines and certifies to the Committees on 
     Appropriations that it is important to the national security 
     interest of the United States to do so and any such 
     additional funds shall only be provided through the regular 
     notification procedures of the Committees on Appropriations.


                              agriculture

       Sec. 587. The first proviso of subsection (k) under the 
     heading ``Assistance for the New Independent States of the 
     Former Soviet Union'' in the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 1997, as 
     contained in Public Law 104-208, is amended by striking ``not 
     less than'' and inserting in lieu thereof ``up to''.


                      ENTERPRISE FUND RESTRICTIONS

       Sec. 588. 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 nor for arrangements approved by the grantor and 
     notified in writing to the Committees on Appropriations.''.


                                Cambodia

       Sec. 589. The Secretary of the Treasury should 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.


                 export financing transfer authorities

       Sec. 590. Not to exceed 5 percent 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

[[Page H10617]]

     be used, but no such appropriation, except as otherwise 
     specifically provided, shall be increased by more than 25 
     percent by any such transfer: Provided, That the exercise 
     of such authority shall be subject to the regular 
     notification procedures of the Committees on 
     Appropriations.


                      development credit authority

       Sec. 591. 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 $7,500,000, 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 up to 
     $500,000 of the funds appropriated by this Act under the 
     heading ``Operating Expenses of the Agency for International 
     Development'' may be made available for administrative 
     expenses to carry out such programs: 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.


                 authorization for population planning

       Sec. 592. (a) Not to exceed $385,000,000 of the funds 
     appropriated in title II of this Act may be available for 
     population planning activities or other population 
     assistance.
       (b) Such funds may be apportioned only on a monthly basis, 
     and such monthly apportionments may not exceed 8.34 percent 
     of the total available for such activities.
       This Act may be cited as the ``Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 1998''.
       And the Senate agree to the same.
     Sonny Callahan,
     John Edward Porter,
     Ron Packard,
     Joe Knollenberg,
     Mike Forbes,
     Jack Kingston,
     R.P. Frelinghuysen,
     Bob Livingston,
     Nancy Pelosi,
     Sidney R. Yates,
     Nita M. Lowey,
     Esteban E. Torres,
     David Obey,
                                Managers on the Part of the House.
     Mitch McConnell,
     Arlen Specter,
     Judd Gregg,
     Richard Shelby,
     R.F. Bennett,
     Ben Nighthorse Campbell,
     Ted Stevens,
     Thad Cochran,
     Patrick J. Leahy,
     Daniel K. Inouye,
     Frank R. Lautenberg,
     Tom Harkin,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 2159) making 
     appropriations for foreign operations, export financing, and 
     related programs for the fiscal year ending September 30, 
     1998, submit the following joint statement to the House and 
     Senate in explanation of the effect of the action agreed upon 
     by the managers and recommended in the accompanying 
     conference report:

               TITLE I--EXPORT AND INVESTMENT ASSISTANCE

     Export-Import Bank of the United States Subsidy Appropriation

       The conference agreement appropriates $683,000,000 for the 
     subsidy appropriation of the Export-Import Bank instead of 
     $632,000,000 as proposed by the House and $700,000,000 as 
     proposed by the Senate. The appropriations are available for 
     four years, and the level provided anticipates significant 
     participation by the Eximbank in the Partnership for Freedom.
       The conferees note that the Administration requested 
     authority to transfer funds from ``Assistance for the New 
     Independent States of the Former Soviet Union'' to this 
     account, and that the Senate had provided transfer authority 
     of up to $22,000,000 for that purpose. The conference 
     agreement, instead, provides significant funding above the 
     request for Eximbank, without reserving any specific amount 
     for the New Independent States. The conferees expect that 
     Eximbank will coordinate its activity in the region with the 
     Special Advisor to the President and the Secretary of State 
     on Assistance to the New Independent States.
       Authority is provided as proposed by the Senate for up to 
     $50,000,000 to be used for tied aid grants, and funds 
     designated in this or prior Acts for tied aid grants may be 
     used for other purposes, subject to notification.
       A one year extension of the Export-Import Bank's basic 
     authority is included in title V.

    Export-Import Bank of the United States Administrative Expenses

       The conference agreement appropriates $48,614,000 for 
     administrative expenses of the Export-Import Bank as proposed 
     by the House instead of $46,614,000 as proposed by the 
     Senate.

        Overseas Private Investment Corporation Program Account

       The conference agreement appropriates $60,000,000 for 
     program expenses of the Overseas Private Investment 
     Corporation (OPIC) as proposed by the Senate. The House bill 
     contained no provision on this matter.
       The conference agreement also extends the authorization for 
     OPIC for two years, in section 581, and allows the agency to 
     combine its existing statutory ceilings on financing and 
     insurance within an overall credit ceiling of $29,000,000,000 
     as proposed by the Senate.
       The managers are concerned about the viability of projects 
     supported by OPIC in Gaza, and direct OPIC to move 
     expeditiously and report to the Committees no later than 
     December 15, 1997 on its efforts to resolve claims and 
     defaulted investments that the Executive branch encouraged to 
     locate in Gaza.

                      Trade and Development Agency

       The conference agreement appropriates $41,500,000 for the 
     Trade and Development Agency instead of $43,000,000 as 
     proposed by the Senate and $40,000,000 as proposed by the 
     House.

                TITLE II--BILATERAL ECONOMIC ASSISTANCE

                  Agency for International Development


                Child Survival and Disease Programs Fund

       The conference agreement appropriates $650,000,000 as 
     proposed by the House. The Senate bill contained no provision 
     on this matter. The managers agree with the House report 
     language regarding the use of the funds appropriated under 
     this heading, including $100,000,000 for a grant to UNICEF 
     and $25,000,000 for polio eradication. The grant for UNICEF 
     does not preclude AID from providing additional funding for 
     specific UNICEF projects as may be applicable.
       The managers also concur with House and Senate report 
     language on infectious diseases. An increase of $50,000,000 
     is to be made available from funds under this heading to 
     strengthen global surveillance and control of infectious 
     diseases as proposed by the House instead of an increase of 
     $30,000,000 as proposed by the Senate in bill language under 
     ``Development Assistance''.
       The total amount available for infectious diseases in 
     fiscal year 1998 should be $207,000,000, consisting of 
     $121,000,000 for HIV/AIDS, $50,000,000 for this new 
     initiative, and the balance from funds to combat infectious 
     diseases derived from sources other than funding for Child 
     Survival activities.
       In implementing programs, projects, and activities to 
     combat infectious diseases, the conferees agree with the 
     Senate report language and expect AID to consult closely with 
     the Appropriations Committees, the National Institute of 
     Allergy and Infectious Diseases of the National Institutes of 
     Health (NIH), the Centers for Disease Control and Prevention 
     (CDC), and other relevant agencies involved in international 
     health issues, including the World Health Organization (WHO).
       The funding increase should be used for programs, projects, 
     and activities for the prevention and control of such 
     infectious diseases as tuberculosis, malaria, yellow fever, 
     acute respiratory infections, and diseases that are resistant 
     to antimicrobial drugs.
       The conferees strongly encourage support for the Global 
     Tuberculosis Initiative, which is to be coordinated by the 
     World Health Organization (WHO) with support and input from 
     the U.S. Centers for Disease Control and the Agency for 
     International Development. Funds should be used in support of 
     the initiative to provide assistance in Eastern Europe and 
     Russia and other WHO identified ``hot zones''--Mexico, 
     Vietnam, the Philippines and Central America--for 
     implementation of the Directly Observed Treatment Strategy 
     (DOTS); as bridge funds to purchase fixed-dose combination 
     anti-TB drugs; to strengthen monitoring and surveillance of 
     tuberculosis and drug-resistant tuberculosis; to provide 
     technical support to limit drug-resistant tuberculosis hot 
     zones; and to enhance information dissemination, 
     education, and research programs. In addition, the 
     conferees support the plan for a regional tuberculosis 
     control initiative proposed by the Gorgas Memorial 
     Institute and recommend that $2,000,000 be made available 
     for this activity in Latin America and Southeast Asia. 
     Finally, the conferees urge AID to consult closely with 
     any nongovernmental organizations (NGO's) with 
     demonstrated expertise and long-standing experience in 
     international tuberculosis control as funds in the area of 
     TB control are obligated.
       The conferees intend that a total of $121,000,000 shall be 
     made available for both bilateral and multilateral HIV/AIDS 
     prevention and control programs. The conferees recommend that 
     funding through nongovernmental and private voluntary 
     organizations operating at the community level be maximized, 
     and that U.S. funding for UNAIDS be

[[Page H10618]]

     maintained. The conferees expect that the United States will 
     continue to build upon its leadership role in combating this 
     pandemic.
       The conferees recommend that $98,000,000 be provided for 
     basic education programs. The conferees support the use of 
     basic education funds to address the educational needs of 
     children who are in or have been subjected to situations of 
     hazardous and exploitative labor.
       The conferees support the Senate report language regarding 
     the International Foundation for Education and Self-Help 
     (IFESH).

                         Development Assistance


                     (including transfer of funds)

       The conference agreement appropriates $1,210,000,000 for 
     ``Development Assistance'' instead of $1,167,000,000 as 
     proposed by the House and $1,358,093,020 as proposed by the 
     Senate.
       The conference agreement includes language from the Senate 
     amendment which inserts authority to obligate funds pursuant 
     to title V of the International Security and Development 
     Cooperation Act of 1980 (African Development Foundation), and 
     section 401 of the Foreign Assistance Act of 1969 (Inter-
     American Foundation) under this heading. The conference 
     agreement provides authority apportioning directly up to 
     $22,000,000 for the Inter-American Foundation and up to 
     $14,000,000 for the African Development Foundation. The 
     Senate provided allocations for these two foundations at 
     levels of $20,000,000 and $11,500,000, respectively. The 
     House bill had provided separate appropriations accounts for 
     the foundations, together with authority to provide grants to 
     the foundations under ``Development Assistance''.
       The conferees support the House report language regarding 
     the funding levels for Latin America and the Caribbean and 
     for sub-Saharan Africa. The conferees also note that sub-
     Saharan Africa is undergoing major transitions that require 
     creative and non-traditional approaches to dealing with 
     fundamental development issues.
       Institution-building and capacity-building are the most 
     pressing problems that need to be addressed by AID programs 
     in Africa. Therefore the conferees are concerned that large 
     non-project assistance programs (NPA), such as the one 
     currently being funded for Malawi (which has received nearly 
     $700,000,000 in AID resources since 1962), could perpetuate 
     aid dependencies. The conferees request that AID undertake a 
     thorough review of such assistance programs to determine 
     whether or not current AID strategies are consistent with 
     building self-reliance, and to report to the Committees on 
     Appropriations on the results of such review by March 1, 
     1998. In addition, the conferees request that AID include a 
     summary of proposed NPA by country in the fiscal year 1999 
     budget request, including an indication for the reason such 
     assistance is being proposed in lieu of assistance to build 
     institutions and country-capacity and whether past NPA has 
     resulted in higher economic growth and a decrease in 
     development dependence.
       The conferees concur with the House report language 
     encouraging AID to utilize funds made available for 
     nongovernmental organizations in southern and eastern Sudan 
     outside government control to include capacity building 
     activities in addition to traditional disaster relief 
     programs.
       The conferees agree with language in the House report that 
     expresses concern over the decline in recent years of 
     budgetary resources that have been made available for 
     international agriculture development assistance. The decline 
     of this important segment of U.S. assistance, together with 
     the corresponding decline in the number of international 
     agriculture experts at AID and the State Department, should 
     be reversed. The conferees also strongly support funding for 
     collaborative research support programs (CRSP's).
       The conference agreement also includes language allowing 
     not to exceed $2,500,000 to be transferred to ``International 
     Organizations and Programs'' for a contribution to the 
     International Fund for Agricultural Development (IFAD). The 
     Senate amendment contained similar language. The House bill 
     contained no provision on this matter. The conferees note 
     that IFAD has many years of experience in working with 
     smallholder farmers, and in microenterprise development, to 
     alleviate poverty and hunger among the rural poor. Many of 
     AID's goals and program initiatives are similar to those of 
     IFAD. The conferees encourage AID to examine how it could 
     work more closely with IFAD.
       The conferees direct that not less than $500,000 shall be 
     made available for support of the United States 
     Telecommunications Training Institute, in accordance with 
     information received from the Agency for International 
     Development. This organization provides valuable 
     communications and broadcast training to professionals around 
     the world. The Senate amendment included bill language 
     mandating that such funds be made available for this purpose. 
     The House bill did not address this matter.
       The conference agreement does not contain Senate language 
     requiring that not less than $15,000,000 shall be available 
     only for the American Schools and Hospitals Abroad (ASHA) 
     program. However, the managers direct the Agency for 
     International Development to fully uphold its commitment to 
     the Appropriations Committees to obligate at least 
     $15,000,000 for the American Schools and Hospitals Abroad 
     program in fiscal year 1998.
       The conference agreement recommends $14,000,000 for AID's 
     Office of Women in Development, and the managers encourage 
     AID to undertake the institutional changes needed to expand 
     support for women in development and to provide appropriate 
     support for the Girls' and Womens' Education Initiative.
       The conferees note the contribution of the Leahy War 
     Victims Fund in assisting war victims in over a dozen 
     countries since its inception in 1989. Recently, world 
     attention has focused increasingly on the problem of 
     landmines, and the need for additional funds for the care and 
     rehabilitation, including social and economic reintegration, 
     of landmine victims. Accordingly, the conferees recommend 
     that up to $7,500,000 be made available for such activities.
       The conference agreement also includes Senate language to 
     allow not to exceed $25,000 for oversight of assistance 
     programs for displaced and orphaned children and victims of 
     war.
       The conference agreement also deletes Senate language 
     requiring that not less than 65 percent of the funds made 
     available for family planning assistance shall be made 
     available directly to the agency's central Office of 
     Population. However, the managers strongly support AID's 
     central population office, which plays a vital role in AID's 
     efforts to stabilize global population growth rates.
       The managers agree with the Senate report language on 
     microenterprise regarding poverty lending programs, including 
     the allocation of $135,000,000 for such purposes.
       The managers strongly support the fertilizer-related 
     research and development being conducted by the International 
     Fertilizer Development Center (IFDC) and direct the 
     Administrator of AID to make at least $3,000,000 available 
     for the core grant to IFDC.
       The conference agreement prohibits funds from being made 
     available for any activity in contravention to the Convention 
     on International Trade in Endangered Species of Flora and 
     Fauna (CITES).
       The conferees recognize the importance of commercial law 
     reform in the Caribbean as an essential part of future 
     business development and increased trade between the United 
     States and the region, and strongly support the business 
     facilitation activities undertaken by the Caribbean Law 
     Institute.
       The conferees endorse the House report language on proposed 
     cooperation between AID and the National Aeronautics and 
     Space Administration, including the establishment of a 
     collaboration with NASA's Global Hydrology and Climate 
     Center.
       The conferees recognize that the volunteers of the 
     International Executive Service Corps (IESC) promote the 
     long-term interests of the United States by creating new 
     businesses, increasing employment, and raising living 
     standards. Therefore the conferees strongly urge AID to 
     provide IESC with grant funds at a level comparable with 
     fiscal year 1997 to ensure the continued availability of 
     their services worldwide, and an additional amount to enable 
     the organization to renew activities in Latin America and the 
     Caribbean.
       The conferees support the scholarship programs known as the 
     Cooperative Association States for Scholarships (CASS) and 
     expect AID to continue funding for this program at the same 
     level provided in fiscal year 1997.
       The conferees also support the continuation of AID's 
     programs in Yemen, which are helping that country make the 
     transition to democracy.

                   Population, Development Assistance

       The conference agreement deletes Senate language proposing 
     a separate appropriations account of $435,000,000 for 
     development assistance population activities. The funding for 
     such activities is provided as part of the ``Development 
     Assistance'' account in the conference agreement.

                  Private and Voluntary Organizations

       The conference agreement includes language from the Senate 
     amendment providing that funds appropriated under title II of 
     this Act should be made available to private and voluntary 
     organizations (PVO's) at a level which is at least equivalent 
     to the level provided in fiscal year 1995. The House bill 
     included similar language.

                                 Cyprus

       The conference agreement includes Senate language providing 
     that not less than $15,000,000 of the funds appropriated 
     under ``Development Assistance'' and ``Economic Support 
     Fund'' be made available for Cyprus, to be used only for 
     scholarships, administrative support, bicommunal projects, 
     and measures aimed at reunification of the island. The House 
     bill contained no provision on this matter.

                                 Burma

       The conference agreement includes a total of $5,000,000 
     from ``Development Assistance'' and ``Economic Support Fund'' 
     to support democracy and humanitarian programs in Burma. Such 
     funds may be made available notwithstanding any other 
     provision of law and are subject to notification. The Senate 
     amendment specified the uses for the funds and the funding 
     source was limited to ``Development Assistance''. The House 
     bill contained no provision on this matter.
       The conferees have provided assistance to support 
     activities designed to restore democracy in Burma and to 
     provide humanitarian programs for Burmese exiles and 
     refugees. The assistance has been provided to underscore U.S. 
     support for Aung San Suu Kyi and her supporters.
       The conferees note strong concern about the severe 
     restrictions imposed on Aung San

[[Page H10619]]

     Suu Kyi. Although not under formal arrest, she is unable to 
     move about freely and visitors must be approved by the State 
     Law and Order Restoration Council. As a result, family, 
     friends, associates, journalists and advocates for restoring 
     her to office have been denied access. In addition, she has 
     drawn public attention to the continuation of a campaign of 
     violence, intimidation and terror being waged against her 
     party members with the goal of destroying the democratic 
     opposition.
       The conferees expect that not less than $3,000,000 of the 
     funds made available for Burma be provided to support 
     democracy activities and $2,000,000 be provided to support 
     humanitarian initiatives along Burma's borders. The conferees 
     oppose any expenditure of funds in Burma.

                   Guatemala Clarification Commission

       The conference agreement does not include language from the 
     Senate amendment providing that not less than $1,000,000 
     shall be made available to support the Guatemala 
     Clarification Commission. The House bill did not address this 
     matter.
       The conferees support the provision of sufficient funds to 
     enable the commission to complete its work, and urge the 
     Department of State to closely monitor the commission's 
     resource needs and to seek additional support from other 
     donors.


                                cambodia

       The conference agreement includes language prohibiting 
     funds for the Government of Cambodia, except for support for 
     demining, humanitarian assistance, and elections. In 
     addition, the conference agreement includes a provision 
     similar to that in the Senate amendment requiring a report 
     from the President on the results of the investigation of the 
     Federal Bureau of Investigation into the bombing attack in 
     Phnom Penh of March 20, 1997.
       The House bill had two provisions on this matter; one would 
     have prohibited funding directly to the Government of 
     Cambodia, and one would have prohibited funding to the 
     Government and funding through international financial 
     institutions for Cambodia. The Senate amendment included a 
     prohibition on funding for activities and programs in 
     Cambodia except under certain conditions, and also made 
     United States support for loans through international 
     financial institutions dependent on similar conditions.
       Political violence in Cambodia reached a crisis point in 
     July when forces loyal to Second Prime Minister Hun Sen 
     seized control and ousted First Prime Minister Ranariddh from 
     both the coalition government and the country. Subsequent to 
     this takeover, Hun Sen forces engaged in a systematic 
     campaign of summary executions, torture and kidnappings, much 
     of which has been verified and documented in an August 21, 
     1997, United Nations Center for Human Rights report.
       In response to these events, the Secretary of State 
     announced a temporary suspension and review of U.S. 
     assistance programs. The conferees believe that, in effect, 
     Hun Sen gained power by a coup which would normally require 
     the termination of U.S. assistance under section 508 of this 
     Act.
       To assure no assistance is provided to Hun Sen or his 
     supporters, the conferees have prohibited most bilateral aid 
     for the Government of Cambodia. The Secretary of the Treasury 
     should instruct U.S. Executive Directors to international 
     financial institutions to use the voice and vote of the 
     United States in opposition to loans to Cambodia.
       In restricting bilateral aid, the conferees have exempted 
     demining, elections and humanitarian programs which directly 
     benefit Cambodia's citizens. The conferees hope that Hun 
     Sen's opponents will be allowed to return to Cambodia and 
     safely participate in open, fair elections. The conferees 
     expect the Committees on Appropriations to be notified prior 
     to the initiation or renewal of any program in Cambodia.

                   International Disaster Assistance

       The conference agreement appropriates $190,000,000 for 
     ``International Disaster Assistance'' as proposed by the 
     House instead of $195,000,000 as proposed by the Senate.
       The conferees support the House report language on 
     activities in Kosova and assistance for internally displaced 
     persons in Northern Iraq.

                           Debt Restructuring

       The conference agreement appropriates $27,000,000 as 
     proposed by the House instead of $34,000,000 as proposed by 
     the Senate.
       The agreement includes language to allow modification of 
     concessional loans made under section 411 of the Agricultural 
     Trade Development and Assistance Act of 1954, the Commodity 
     Credit Corporation Charter Act, the Food for Peace Act of 
     1966, or the Agricultural Trade Act of 1978, to Latin 
     American countries which have completed Paris Club debt 
     agreements. Debt relief for Jordan was completed in fiscal 
     year 1997, and therefore language affecting Jordan in the 
     House bill and Senate amendment has been deleted.
       The conference agreement on legislative language follows 
     the House in not retaining the proposed requirement for 
     notifications for the obligations of funds from this account. 
     In lieu of the House report language request for quarterly 
     reports on obligations made from this account, the conferees 
     request the following actions for debt restructuring activity 
     in this account:
       1. on the basis of final appropriations action, an annual 
     notification should be provided at the beginning of the 
     fiscal year listing expected poorest country debt reduction 
     and buyback/swap activities for the upcoming fiscal year;
       2. the Committees on Appropriations should be informed 
     should action subsequently be anticipated for additional 
     countries, or involve deeper relief;
       3. signed bilateral agreements to implement bilateral 
     agreements should be submitted to the Committees on 
     Appropriations prior to the entry into force of such 
     agreements; and
       4. a final report should be provided at the end of the 
     fiscal year listing Paris Club ad referendum agreements, 
     signature and/or entry into force of bilateral debt reduction 
     agreements, obligation of funds for poorest country debt 
     reduction, and buyback/swap agreements concluded during the 
     fiscal year.
       The conference agreement also provides up to $1,500,000 for 
     the Department of Treasury to improve the foreign credit 
     reporting system of the U.S. Government.

             Urban and Environmental Credit Program Account

       The conference agreement incorporates House language 
     allowing for funds under this heading to be used for the cost 
     of guaranteed loans designed to promote the urban and 
     environmental policies and objectives of part I of the 
     Foreign Assistance Act. The Senate amendment did not contain 
     such language.

     Operating Expenses of the Agency for International Development

       The conference agreement appropriates $473,000,000 as 
     proposed by the Senate instead of $468,750,000 as proposed by 
     the House.
       The conferees are very concerned about the lack of progress 
     in the implementation of the New Management System (NMS) and 
     request that AID regularly report to the Committees on 
     Appropriations on the status of this program.

                         Economic Support Fund

       The conference agreement appropriates $2,400,000,000 
     instead of $2,541,150,000 as proposed by the Senate and 
     $2,375,000,000 as proposed by the House.


                            the middle east

       The conference agreement inserts language proposed by the 
     Senate which earmarks $1,200,000,000 for Israel, $815,000,000 
     for Egypt and $150,000,000 for Jordan. The conference 
     agreement also provides that aid to Egypt is provided with 
     the understanding that Egypt will undertake significant 
     economic reforms and that in providing aid to Egypt and 
     Israel the President shall ensure the level of aid does not 
     cause an adverse impact on the total level of non-military 
     exports from the United States to each country.
       The conference agreement inserts language proposed by the 
     House which provides that of the funds made available in 
     previous Acts making appropriations for foreign operations, 
     export financing, and related programs, notwithstanding any 
     provision of any similar heading in such previous Acts, up to 
     $116,000,000 may be made available to support Economic 
     Support Fund programs and activities, including the Middle 
     East Peace and Stability Fund. The language also provides 
     that the President should seek to ensure to the extent 
     feasible that not more than 1 percent ($54,000,000) of the 
     amount specified in section 586 shall be derived from any 
     single country. The conference agreement further provides 
     that any funds provided to the Middle East Peace and 
     Stability Fund by a country in the region pursuant to the 
     general authorities of section 635(d) of the Foreign 
     Assistance Act of 1961, as well as funds made available for 
     Jordan from previous Act, shall count toward meeting the 
     earmark for Jordan. In addition, the conference agreement 
     stipulates that up to $10,000,000 in fiscal year 1997 funds 
     reprogrammed for Jordan shall also count toward the Jordan 
     earmark in fiscal year 1998. The conference agreement also 
     includes language modifying certain notification requirements 
     in order to facilitate the implementation of the authorities 
     provided under this heading and the requirements of section 
     586, ``Assistance for the Middle East.''


                                 haiti

       The conference agreement strikes language proposed by the 
     Senate earmarking not less than $500,000 for the Special 
     Investigative Unit (SIU) of the Haiti National Police and 
     providing that up to $250,000 may be made available to assist 
     orphanages in Haiti. The managers expect not less than 
     $500,000 be made available to the SIU and concur with the 
     Senate that a professional SIU, fully supported by its 
     Government, is essential to the rule of law in Haiti and that 
     programs to assist Haitian children in orphanages should be 
     continued under the current dire economic conditions in 
     Haiti. No later than 45 days after enactment of this Act, the 
     Secretary of State is requested to report to the Committees 
     on the proposed fiscal year allocation for these programs in 
     Haiti.


                    palestinian-israeli cooperation

       The conferees recommend that $500,000 be made available to 
     support the Palestinian-Israeli Cooperation Program to 
     promote better understanding and mutual respect between 
     Israelis and Palestinians at a time when the Middle East 
     Peace process is threatened by violence and terrorist acts.


                                  iraq

       The conferees note that the people of Iraq continue to 
     suffer under the repressive rule of Saddam Hussein, despite 
     efforts of the international community to provide 
     humanitarian assistance to the truly needy in Iraq.

[[Page H10620]]

     In particular, the conferees are concerned that 
     humanitarian assistance provided by private religious and 
     charitable groups may not be reaching intended 
     beneficiaries in Iraq. The conferees direct the Department 
     of State to work with these groups to coordinate 
     monitoring activities and to apply international pressure 
     to make certain that innocent victims in Iraq are not 
     denied humanitarian assistance provided by private 
     charitable organizations.


                 timber trade in thailand and cambodia

       The conferees remain very concerned by reports that despite 
     efforts by the Administration and Thai officials to deter the 
     export of timber from Cambodia through Thailand, this illegal 
     trade continues and may be increasing due to recent political 
     turmoil in Cambodia. Reports implicate Cambodian political 
     and military officials, as well as Thai border guards in this 
     profitable trade. Although the conferees have not repeated 
     past conditions on assistance to Thailand, the conferees 
     expect the Administration to use its influence with both the 
     Thai and Cambodian authorities to produce concrete results in 
     stemming this illegal trade.


                               guatemala

       Authority is provided to use local currency generated by 
     AID programs, in Guatemala to prepay the debts owed by 
     several universities to multilateral development banks. Full 
     repayment of the debt was made for many years, until 
     devaluation of the local currency made prompt repayment in 
     hard currency extremely difficult. The affected institutions 
     have made major contributions to the peace and reconciliation 
     process in Guatemala, and the authority is provided in 
     recognition of that fact. Similar authority was provided for 
     El Salvador in 1992.


                south pacific regional fisheries treaty

       The conferees note that the South Pacific Regional 
     Fisheries Treaty requires the United States to contribute 
     $14,000,000 annually to the South Pacific Island states and 
     expect that this treaty obligation will be met.

                     international fund for ireland

       The conference agreement appropriates $19,600,000 for the 
     ``International Fund for Ireland'' as proposed by the House. 
     The Senate amendment did not contain a provision on this 
     matter.

          Assistance for Eastern Europe and the Baltic States

       The conference agreement appropriates $485,000,000 as 
     proposed by the Senate instead of $470,000,000 as proposed by 
     the House.
       The conference agreement includes House language deleted by 
     the Senate that prohibits funds from being used for new 
     housing construction or repair or reconstruction of existing 
     housing in Bosnia and Herzegovina unless directly related to 
     efforts of United States troops to promote peace in said 
     country. The agreement also includes language, similar to 
     that contained in both the House bill and the Senate 
     amendment, that authorizes the President to withhold funds 
     made available for economic revitalization for Bosnia and 
     Herzegovina if he determines and certifies to the Committees 
     on Appropriations that the Federation of Bosnia and 
     Herzegovina is not in compliance with the Dayton agreement 
     regarding the removal of foreign forces, and that 
     intelligence cooperation on training, investigations, and 
     related activities between Iranian and Bosnian officials has 
     not been terminated.
       The conference agreement retains language from the House 
     limiting the assistance for Bosnia and Herzegovina to 
     $200,000,000. However, this limitation excludes funds for 
     police training and related expenses. The conference 
     agreement includes up to $15,000,000 for this purpose. The 
     conferees endorse the House report language encouraging the 
     State Department to seek funds from other nations for police 
     training activities in Bosnia, and expect that any proposal 
     to provide more than $15,000,000 for police training and 
     related expenses will be subject to notification.
       The conference agreement also includes House language not 
     in the Senate amendment to allow for up to $7,000,000 for 
     modifying direct loans and loan guarantees for Bosnia and 
     Herzegovina.
       The conferees recognize that realtors in the United States 
     have had success in working with the Eastern Europe Real 
     Property Foundation. Building and privatizing real estate 
     markets is still a priority in building a free and democratic 
     economy. The conferees recommend funding at up to $2,000,000 
     over the next two years to continue to develop professional 
     associations with ethics and laws that will lead to a private 
     real estate market throughout Central Europe.
       The conferees recommend that AID and the Department of 
     State make best efforts to provide funding at the fiscal year 
     1996 level for the Russian, Eurasian, and East European 
     Research and Training Program (title VIII), both in this 
     account and in ``Assistance for the New Independent States 
     of the Former Soviet Union''.

  Assistance for the New Independent States of the Former Soviet Union

       The conference agreement appropriates $770,000,000 instead 
     of $625,000,000 as proposed by the House and $800,000,000 as 
     proposed by the Senate. The conferees did not include Senate 
     language that allowed for the transfer of up to $22,000,000 
     to the Export-Import Bank and up to $8,000,000 to the Micro 
     and Small Enterprise Program of AID.


                              russia-iran

       The conference agreement provides that fifty percent of the 
     funds allocated for the Government of Russia shall be 
     withheld from obligation until the President determines and 
     certifies in writing to the Committees on Appropriations that 
     the Government of Russia has terminated implementation of 
     arrangements to provide Iran with certain goods and services 
     related to nuclear and ballistic missile programs in Iran. 
     The managers also include a provision allowing the President 
     to waive the provisions of the paragraph if he finds that 
     continuing assistance to the Government of Russia is vital to 
     the national security interests of the United States and that 
     the Government of Russia is taking meaningful steps to limit 
     major supply contracts and curtail the transfer of 
     technology. The Senate had no similar waiver provision.


                           gazprom financing

       The manages understand that the Chairman of the Export 
     Import Bank signed a memorandum of understanding with Gazprom 
     in 1994 providing up to $750 million in guarantees of 
     commercial loans for the purchase of American equipment and 
     services to improve the efficiency and productivity of 
     Russian oil and gas fields. Since implementation, the Bank 
     has approved or has under consideration $338 million in 
     financing.
       In 1996, the Iran Libya Sanctions Act went into effect 
     requiring the President to impose sanctions against companies 
     which invest more than $20 million in the development of 
     Iran's energy sector. The managers are concerned by reports 
     that Gazprom has agreed to participate in a $2 billion 
     project to develop Iranian energy fields. The managers 
     strongly oppose the use of Bank financing to directly or 
     indirectly support the development of Iranian gas and oil 
     fields and urge the Board of the Bank to suspend all Gazprom 
     transactions for a period of review to assure no funds are 
     used for these purposes.


                                ukraine

       The conference agreement earmarks $225,000,000 for Ukraine 
     with the understanding that Ukraine will undertake 
     significant economic reforms which are additional to those 
     which were undertaken in previous years.
       The conferees take note of important developments which 
     have enhanced stability in Ukraine including the introduction 
     of a new currency, passage of a Constitution and completion 
     of a new NATO-Ukraine security agreement. The conferees take 
     note of President Kuchma's recent initiatives to combat 
     corruption, privatize state owned, enterprises and replace 
     senior officials opposed to serious reforms. While welcome, 
     these efforts must be expanded and measured by immediate, 
     concrete progress on legal, political and economic reforms. 
     Reforms, especially in the agriculture sector, are essential 
     if U.S. and multilateral assistance is to achieve meaningful 
     results. Without them, it will be difficult for Ukraine to 
     prosper and secure its political independence.
       To encourage results, the conferees have withheld 50 
     percent of the funding for Ukraine until the Secretary of 
     State is able to certify that specific cases involving U.S. 
     companies have been resolved. The conferees have taken this 
     action with the view that the private sector is key to 
     Ukraine's economic growth. Resolution of these cases, as well 
     as similar complaints by Ukrainian firms, and improvements in 
     the legal system are necessary if Ukraine is to restore 
     private sector confidence and attract investment capital.
       With parliamentary elections scheduled in March 1998, the 
     managers strongly support expanded political party training 
     and election-related activities to encourage informed 
     participation and an open, fair process. The conferees remain 
     concerned that the current Rada has opposed many of President 
     Kuchma's reform initiatives. The conferees note that the 
     outcome of the elections could have a significant impact on 
     the future assistance program as well as private sector 
     investment.
       The managers expect that not less than $25,000,000 of the 
     funds allocated to Ukraine be transferred to the Department 
     of Energy's International Nuclear Safety Program for 
     simulators, training, and safety analysis at nuclear reactors 
     in Ukraine. The managers direct the Department of Energy's 
     INSP office to consult with the Senate and House committees 
     prior to any allocation of funds. The conference agreement 
     also includes language modifying prior year language on 
     nuclear safety analyses to extend the time available for such 
     activities in Ukraine.
       The conference has deleted House language terminating 
     assistance to the Government of Ukraine if the President 
     determines and reports to the Committees that the Government 
     of Ukraine is engaged in military cooperation with the 
     Government of Libya. There was no similar Senate provision, 
     and the conferees have been assured by the State Department 
     that there is no cooperation with Libya at the present time. 
     The managers caution Ukraine to move immediately to halt any 
     and all transfers of weapons to terrorist states.


                         commercial law reform

       The Senate version of the bill included $25,000,000 for 
     commercial law reform in Ukraine. The House bill did not 
     include such a provision.
       The conferees express strong support for commercial law 
     reform in Ukraine. The conferees strongly urge AID to set 
     aside funds

[[Page H10621]]

     for comprehensive legal restructuring in Ukraine necessary to 
     support a decentralized market-oriented economic system, 
     including the enactment of all necessary substantive 
     commercial law procedures, the implementation of reforms 
     necessary to establish an independent judiciary and bar, the 
     education of judges, attorneys, law students, and related 
     public education.


                        southern caucasus region

       The conference agreement provides for a new Southern 
     Caucasus Region funding category that is not contained in the 
     House bill or Senate amendment. The managers seek to make the 
     maximum use of American assistance as an incentive for the 
     regional parties to cooperate with the Minsk Group and other 
     international mediators seeking to bring peace to the South 
     Caucasus. The managers are convinced that the ready 
     availability of international reconstruction aid, including 
     the potential U.S. initial contribution provided in this 
     conference agreement, will encourage leaders to make peace. 
     The managers intend that emphasis be placed on restoring 
     transportation, telecommunications, an other infrastructure 
     that promote regional economic integration.
       The managers include in the $250,000,000 made available for 
     the Southern Caucasus specific funding for three areas of 
     United States national interest in the region:
       (1) up to $70,000,000 to aid the refugees and internally 
     displaced persons affected by the conflicts in the Caucasus, 
     and if feasible, provide the United States share of an 
     international effort to reconstruct the regions most affected 
     by the conflict once interim settlements are agreed to. The 
     managers direct the Coordinator to move forthwith to provide 
     assistance of $12,500,000 for victims of the Nagorno-Karabakh 
     conflict and $5,000,000 for victims of the Abkhazia conflict;
       (2) the amount of $87,500,000 for Armenia (not including, 
     under the previous category, aid for Armenians residing 
     outside the boundaries of Armenia), a country in the center 
     of a volatile region that cannot prosper without renewed 
     trade and communications with its sometimes hostile 
     neighbors; and
       (3) the amount of $92,500,000 for Georgia (not including, 
     under the previous category, aid for Georgians displaced from 
     Abkhazia) a key country providing regional leadership for 
     conflict resolution and economic reform. Training and 
     infrastructure support for customs and border control by 
     Georgian officials should be a high priority for use of these 
     funds.
       In order to facilitate United States leadership in the 
     Minsk Group process, the managers have included in the 
     conference agreement language renewing Congressional concern 
     about blockades of Armenia, but have exempted humanitarian 
     aid to refugees and displaced persons throughout the Southern 
     Caucasus from restrictions imposed by the FREEDOM Support 
     Act. This should facilitate American assistance to residents 
     of Nagorno-Karabakh as well as persons displaced from 
     neighboring regions of Azerbaijan.
       The bill again contains language which restates section 907 
     of the FREEDOM Support Act (P.L. 102-511). The managers 
     recognize that restrictions contained in section 907 are 
     applicable to assistance to the Government of Azerbaijan.
       The conference agreement does not exempt reconstruction aid 
     from the restrictions imposed by the FREEDOM Support Act. The 
     managers assume that in the event that an interim settlement 
     is reached with regard to Nagorno-Karabakh, any blockades 
     will be lifted and the President will be in a position to 
     make the determination necessary to lift such restrictions.
       In addition to provisions included in prior year 
     Appropriations Acts, the conference agreement allows for 
     limited support for United States commercial entities, as 
     proposed by the Senate, by clarifying that the Foreign 
     Commercial Service and the Trade and Development Agency can 
     function in Azerbaijan. Both House and Senate provisions 
     relating to the Export-Import Bank were deleted from the 
     conference agreement.
       It is the intent of the conferees that in the case of any 
     assistance funded or otherwise provided pursuant to this Act, 
     the direct beneficiaries of which are required by law to be 
     United States entities (e.g., in which guaranties or 
     insurance are provided to U.S. entities), such assistance 
     shall not be considered assistance to a foreign country or 
     government, and therefore is not covered by restrictions on 
     such assistance.
       In order to provide flexibility for the Executive branch, 
     the conference agreement includes a provision allowing the 
     Secretary of State to use up to $43,750,000 from the Southern 
     Caucasus funding category for other areas of the former 
     Soviet Union, if she reports to Congress that the full amount 
     cannot be effectively utilized. The managers anticipate that 
     this provision would be used only if an interim settlement 
     proposed by the Minsk Group is not agreed to by May 30, 1998.


                                armenia

       Because of concern about the impact of the continuing 
     physical isolation of Armenia from several of its neighbors 
     and the uneven performance of her economy, the conferees 
     direct that the Agency for International Development and 
     other United States Government agencies provide no less 
     than $82,500,000 for technical and humanitarian assistance 
     requested by the Government of Armenia and qualified non-
     governmental organizations in Armenia. This level of 
     assistance is provided with the understanding that Armenia 
     will undertake significant economic reforms which are 
     additional to those which were undertaken in previous 
     years.
       As Armenian Prime Minister Kocharian recently stated, 
     ``further economic growth largely depends on foreign 
     investment and from that point of view, the role of the 
     Armenian diaspora can scarcely be overestimated.'' Without a 
     favorable investment climate, no amount of American 
     Government assistance will bring prosperity to Armenia or its 
     neighbors.


                                georgia

       Because of the constructive role undertaken by Georgia in 
     attempting to resolve regional conflicts and its economic and 
     democratic progress, the conferees direct that the Agency for 
     International Development and other United States Government 
     agencies provide no less than $87,500,000 for technical, 
     security, and humanitarian assistance requested by the 
     Government of Georgia and qualified non-governmental 
     organizations in Georgia.


   lack of priority for health, population, and environment programs

       The conferees are distressed that the NIS assistance 
     program has made Health, Population, and Environment projects 
     a low priority. Virtually all of the New Independent States 
     have severe health and environmental problems. Unfortunately, 
     the positive changes in the areas of democratization and 
     privatization in these republics has been accompanied by a 
     steady deterioration in the quality of health care. Health 
     indicators in virtually all republics reflect this trend. Few 
     if any environmental guidelines or laws exist in the NIS 
     republics, and there is little capacity to implement them 
     even where there do exist. A low percentage of women in the 
     NIS have access to family planning services. Dramatic 
     reductions in abortion rates have been achieved in areas 
     where U.S. resources have been made available for such 
     services.
       The conferees have agreed to provide a $145,000,000 or 23 
     percent increase in the funds for the NIS program for fiscal 
     year 1998. The magnitude of the problems mentioned above 
     should not prevent the Coordinator from devoting additional 
     resources to them, particularly in light of the large 
     increase in the NIS account. The conferees expect the 
     priorities reflected in the fiscal year 1998 NIS program, 
     including the Partnership for Freedom, to be revisited and 
     that significant additional resources will be devoted to the 
     Health, Population, and Environmental programs.


                            russian far east

       The Russian Far East is widely recognized as vital to the 
     overall development of the Russian Federation's economy. Its 
     rich natural resource base and proximity to robust Pacific 
     rim economies have attracted the attention of many 
     international companies, but the investment climate remains 
     difficult because of governance issues in the region.
       The Russian Far East presents a unique set of investment 
     opportunities which have been overlooked in past United 
     States economic cooperation initiatives in Russia. As the 
     Partnership for Freedom program will designate selected 
     regions in the Russian Federation as especially attractive 
     for American investment, the managers direct the Coordinator 
     to designate at least one such region in the Russian Far 
     East. The conferees also urge the Board of the United States 
     Russia Investment Fund (TUSRIF) to develop a lending 
     mechanism to increase investment in small- to medium-sized 
     business projects in the Russian Far East.


       rural and agricultural regions of Russia and central asia

       The failure of a market economy to develop in rural and 
     agricultural regions of the Russian Federation, Ukraine, and 
     Central Asia is noted with concern by the conferees. The 
     Coordinator is encouraged to take the lagging pace of reform 
     in rural Russia into account as he selects regions of 
     concentration for United States technical cooperation. To 
     this end, consideration should be given to forging links 
     between American institutions and Russian agricultural 
     universities and institutes, as well as strengthening and 
     replicating ongoing collaborative efforts between academic 
     and commercial enterprises. Also, the Administrator of AIDS 
     is requested to provide in writing no later than December 15, 
     1997, the Agency's strategic objectives (including a 
     financial plan) with region to economic growth in rural areas 
     of the Central Asian republics, including public health and 
     environmental indicators and the role of American-Israel 
     cooperative research and development in the region.


              nis coordinator personnel presence in region

       The conferees are concerned about the lack of personnel in 
     the New Independent States coordinating United States 
     assistance programs. The Office of the Coordinator of NIS 
     assistance has no full time personnel in Moscow and only one 
     full time position in the Southern Caucasus. As the office 
     charged with developing and coordinating all U.S. 
     assistance programs in the New Independent States, it is 
     imperative that adequate personnel resources be made 
     available in the region. The conferees expect this 
     situation to be addressed promptly.


      health issues resulting from the chornobyl nuclear accident

       The conferees urge AID to supplement the generosity tens of 
     thousands of Americans

[[Page H10622]]

     have directed to the victims of the Chornobyl nuclear 
     tragedy. Active consideration should be given to providing 
     ways to decontaminate fresh milk in Ukraine and Belarus in 
     order to increase its acceptability to children and mothers. 
     The conferees request that the Coordinator work with relevant 
     federal agencies to determine the viability of installing and 
     operating effective and affordable technology to 
     decontaminate milk supplies in the contaminated region. 
     Emphasis should be placed on the development of privately-
     owned dairies and milk processing plants. This priority 
     supersedes any non-conforming ``strategic objectives'' of 
     USAID.


                          crime and corruption

       The conferees agree with the House report language 
     characterizing officially tolerated corruption as the biggest 
     impediment to private investment and economic growth in the 
     former Soviet Union. The report requested by the House from 
     the Secretary of State and the Coordinator should be provided 
     to both Committees no later than 90 days following enactment 
     of this Act.


                            enterprise funds

       The conference agreement does not reserve any funds for the 
     Trans-Caucasus Enterprise Fund as proposed by the Senate. The 
     House bill did not address this matter.
       The conference agreement includes a Senate provision that 
     none of the funds provided under this heading or in prior 
     appropriations Acts may be made available to invest in a 
     joint public-private management entity established by the 
     Defense Enterprise Fund.
       During fiscal year 1997, the Defense Enterprise Fund (DEF) 
     received a final installment of $15,000,000 of a $71,000,000 
     commitment from the United States Government. Release of 
     these resources was conditioned upon an understanding by the 
     DEF senior management that the funds would be directly 
     invested in defense conversion projects and related 
     activities. The managers expect that during fiscal year 1998, 
     none of the government funds provided to the DEF will be used 
     for any other purposes. The conference language is not 
     intended to limit or prevent the managers of the Fund from 
     raising private capital or receiving contributions from 
     multilateral financial institutions to invest in the Fund's 
     projects or activities.
       The conferees direct the Coordinator for United States 
     Assistance to the New Independent States, in consultation 
     with the implementing agency, to submit a report to the 
     Committees on Appropriations no later than 60 days after the 
     date of enactment of this Act on the rate of obligation and 
     risk and anticipated returns associated with commitments made 
     to the United States-Russia Investment Fund (TUSRIF). The 
     report shall include a recommendation on the continued 
     relevance and advisability of the initial planned life of 
     project funding commitment for TUSRIF.


        civil society and continued development of a free press

       The conferees endorse the House report language on civil 
     society and continued development of a free press. In 
     addition, the Coordinator is encouraged to continue support 
     for the long-term development of an independent print media 
     in Russia and Ukraine, utilizing organizations with 
     demonstrated experience in working with print media in 
     countries of the region.


     endorsement of other priorities in the partnership for freedom

       The managers endorse the House report language on the 
     important role of American business centers and centers for 
     business skills development in the Partnership for Freedom 
     initiative. The conferees also support the Senate report 
     language with regard to expansion of support for sustainable 
     programs at Russian agricultural institutions.


                                mongolia

       The conference agreement deletes the Senate earmark of 
     $12,000,000 for Mongolia, but retains authority for funds 
     provided under this heading to be used in Mongolia.
       Positive economic and political developments in Mongolia 
     make clear that a robust program of assistance especially in 
     the areas of judicial, tax, banking, commercial and related 
     legal code reforms could have a major impact securing free 
     market democracy. The managers believe the current conditions 
     in Mongolia offer a unique opportunity to carry out 
     significant, permanent reforms in a short period with minimal 
     resources and yet a lasting impact. Therefore, the managers 
     direct that not less than $12,000,000 be made available from 
     development assistance funds and resources made available 
     under the New Independent States heading.
       In addition, the managers are concerned about continued 
     reports that AID intends to close its mission in Ulan Bator 
     at the end of fiscal year 1998. The managers oppose closure 
     of the mission at this time and request consultation in 
     advance of any such decision. While Mongolia represents a 
     unique opportunity to provide short term support and quickly 
     graduate a nation from U.S. aid programs, a closure in 1998 
     would compromise prospects for successfully completing 
     reforms.
       The managers strongly encourage the Coordinator and the 
     Administrator to coordinate completion of programs to 
     modernize the Mongolian energy sector. The managers recognize 
     that the Mongolian Government is committed to infrastructure 
     development and environmental protection, the latter adding 
     value to the economy because of the potential for ecotourism. 
     Institutions such as the Academy of Natural Sciences can help 
     Mongolian scientists through cooperative research programs 
     that promote environmentally sensitive economic development 
     in Mongolia.


     distribution of contracts to small and disadvantaged business

       In fiscal year 1996 because of concern that small and 
     disadvantaged businesses were not receiving a fair share of 
     contracts from AID, particularly in the NIS programs, the 
     Conference report contained language directing AID to take 
     immediate measures to ensure that all contractors be given a 
     fair chance to perform and receive contracts. While the 
     initial actions taken by AID were encouraging, recent actions 
     have brought AID commitment to this directive into doubt. The 
     conferees expect AID to adhere to the earlier directive with 
     respect to allowing small and disadvantaged contractors the 
     opportunity to compete fairly for AID contracts.

                           Independent Agency

                              Peace Corps

       The conference agreement appropriates $222,000,000 as 
     propose by the House instead of $206,000,000 as proposed by 
     the Senate.

                          Department of State

                    International Narcotics Control

       The conference agreement appropriates $215,000,000 for 
     ``International Narcotics Control''. The House bill proposed 
     $230,000,000 for this account, while the Senate amendment 
     contained an appropriation of $216,200,000.
       In addition, the conference agreement includes $15,000,000 
     in a new account, ``Narcotics Interdiction'', in order to 
     provide the Bureau of International Narcotics and Law 
     Enforcement Affairs (INL) with the flexibility and funds to 
     procure Black Hawk helicopters for the Colombian National 
     Police. The bureau is directed to use the funds in this 
     account, together with base funds from ``International 
     Narcotics Control'', to procure three Black Hawk utility 
     helicopters, including maintenance and training, for the 
     National Police solely for conternarcotics purposes, at a 
     cost of $36,000,000. In addition, $14,000,000 should be made 
     available to provide upgrades for UH-IH Huey helicopters for 
     the Colombian National Police solely for counternarcotics 
     purposes.
       The managers are extremely concerned about reports that 
     Colombian heroin is flooding the U.S. market. According to 
     the Drug Enforcement Administration, 60 percent of all heroin 
     recently seized on American streets is of Colombian origin. 
     The new appropriations account, together with base funds in 
     ``International Narcotics Control'', is intended to address 
     the equipment shortfall of the Colombian National Policy.
       The conferees are also concerned that helicopters for drug 
     interdiction were removed from Guatemala several years ago. 
     The transit of drugs through Guatemala has re-emerged as a 
     serious problem, and the managers would support the proposed 
     redeployment of helicopters from Bolivia to that country.
       The conference agreement includes language from the House 
     bill, deleted by the Senate amendment, that allows the Bureau 
     to use section 608 of the Foreign Assistance Act, without 
     regard to its restrictions, to receive non-lethal excess 
     property from an agency of the U.S. government for use in a 
     foreign country, subject to notification.
       The conference agreement does not contain Senate language 
     providing not less than $10,000,000 for law enforcement 
     training and education and not less than $22,000,000 for 
     anti-crime programs. However, the conferees expect that not 
     less than the 1997 levels for each such activity ($9,000,000 
     and $20,000,000, respectively) will be provided in fiscal 
     year 1998.
       The conference agreement includes language requiring a 
     report from the Secretary of State, in consultation with the 
     Office of National Drug Control Policy, 60 days after 
     enactment on overseas counter-narcotics activities. The 
     Senate amendment would have prohibited funding for counter-
     narcotics activities until such report was submitted. The 
     House bill did not address this matter.
       The conferences agreement includes language from the Senate 
     amendment providing not to exceed $5,000,000 for the 
     operations of a Western Hemisphere International Law 
     Enforcement Academy; however, the reference to the 
     Organization of American States is deleted. Although the 
     House bill did not address this matter, the conferees endorse 
     the House report language regarding the regional training 
     center.
       The conference agreement includes language withholding from 
     obligation 10 percent of the funds appropriated under 
     ``International Narcotics Control'' and ``Narcotics 
     Interdiction'' until the Secretary of State submits a 
     financial plan for the use of all funds made available in 
     these accounts.
       The conferees support the development of plant pathogens 
     capable of destroying illicit drug crops and expect the 
     Department to fund research on such biocontrol agents, such 
     as the program at Montana State University.
       The conferees support the intent of the Senate report 
     language on international crime and the need for the 
     Secretary of State to reestablish a task force on 
     international crime.
       The conferees are very concerned that many people in 
     Ecuador are being denied due process in its judicial system. 
     Many of them, including several United States citizens,

[[Page H10623]]

     have been held for months or years without regard to rights 
     accorded them under Ecuadoran and international law. The 
     conferees strongly urge the Department of State to actively 
     encourage Ecuadoran law enforcement and judicial officials 
     they cooperate with under the International Narcotics Control 
     programs to fulfill their responsibilities in a manner 
     consistent with requirements of law and treaty obligations.

                    Migration and Refugee Assistance

       The conference agreement includes Senate language, not in 
     the House bill, that provides not less than $80,000,000 for 
     refugees from the former Soviet Union and Eastern Europe and 
     other refugees resettling in Israel.
       The conferees remain strongly committed to assisting the 
     Government of Israel to resettle refugees in Israel from the 
     former Soviet Union, Eastern Europe, and elsewhere. Since 
     1989, Israel has absorbed more than 700,000 refugees from 
     countries of distress. The funds provided in the conference 
     agreement assist in the transportation and initial absorption 
     costs for more than 100,000 refugees per year. While there 
     has been a modest decrease in the number of refugees coming 
     to Israel this year, the conferees note that the historically 
     unprecedented numbers still arriving and in need continue to 
     strain the resources of the Government of Israel. Should the 
     current decline in the number of refugees arriving in Israel 
     continue, the conferees expect this program to be funded at 
     $70,000,000 in fiscal year 1999 and $60,000,000 in fiscal 
     year 2000.
       The conferees believe the United States should play a 
     leadership role in helping to establish a fund through the 
     United Nations High Commissioner for Refugees for vulnerable 
     refuge children, particularly those separated from their 
     parents. The conferees recommend that approximately 
     $5,000,000 in fiscal year 1998 funds be made available for 
     this purpose.
       The conferees also support the House report language on 
     assisting Tibetan refugees.

                    Refugee Resettlement Assistance

       The conference agreement appropriates $5,000,000 for 
     ``Refugee Resettlement Assistance'' as proposed by the House. 
     The Senate amendment contained no provision on this matter.

    Nonproliferation, Anti-Terrorism, Demining and Related Programs

       The conference agreement appropriates $133,000,000 for 
     ``Nonproliferation, Anti-Terrorism, Demining and Related 
     Programs'' instead of $129,000,000 as proposed by the Senate 
     and $118,000,000 as proposed by the House.


                          demining activities

       The conference agreement recommends $20,000,000 be utilized 
     to support global demining activities. The conferees strongly 
     support programs to locate and remove landmines and other 
     unexploded ordnance, including mine awareness and education, 
     mapping and marking, and training of deminers. In addition, 
     the conferees urge the Department of State, in consultation 
     with the humanitarian demining training program at the 
     Department of Defense, to explore opportunities for the 
     United States to provide technical advice and assistance to 
     Russia and other new independent states in the clearance of 
     landmines, including the southern Caucasus region.


            korean peninsula energy development organization

       The conference agreement provides that not to exceed 
     $30,000,000 may be made available to the Korean Peninsula 
     Energy Development Organization (KEDO) only for 
     administrative expenses and heavy fuel oil costs associated 
     with the Agreed Framework as proposed by the Senate, instead 
     of $25,000,000 as proposed by the House. The conference 
     agreement also stipulates that the President must certify 
     that canning activities associated with the Agreed Framework 
     are scheduled to be completed by April 1, 1998. The 
     conference agreement provides that an additional $10,000,000 
     may be made available to KEDO if the Secretary of State 
     certifies that additional funds have been provided by foreign 
     donors to KEDO sufficient to cover all outstanding debts owed 
     by KEDO for heavy fuel oil. The managers also agree that none 
     of the funds in this bill that are made available for KEDO in 
     fiscal year 1997 may be used to contribute to the light-water 
     nuclear reactors being provided to North Korea under the 
     terms of the Agreed Framework.


                      nonproliferation activities

       The conference agreement recommends $15,000,000 for the 
     Nonproliferation and Disarmament Fund. The conferees strongly 
     support the core nonproliferation activities of the NDF. The 
     NDF is designed to provide the Secretary of State with a 
     flexible funding source to respond to urgent, unanticipated 
     nonproliferation activities of immediate concern to the 
     United States. Longer term programmatic activities, such as 
     export controls, should be funded separately outside of the 
     NDF account and therefore subject to the normal conditions 
     for legislative oversight and review. For this reason the 
     conference agreement recommends that $3,000,000 in NADR 
     account funds be used to support export control related 
     activities.
       The conferees also note that there may be numerous 
     nonproliferation programs which could logically be included 
     in the NADR account in order to facilitate the continued 
     rationalization of government-wide nonproliferation programs 
     and activities. The conferees stress that the Committees on 
     Appropriations are prepared to work with the Administration 
     in this ongoing rationalization process as the Administration 
     prepares its fiscal year 1999 request.

                     TITLE III--MILITARY ASSISTANCE

             International Military Education and Training

       The conference agreement appropriates $50,000,000 as 
     proposed by the House instead of $47,000,000 as proposed by 
     the Senate.


                         school of the americas

       The conference agreement retains language proposed by the 
     House which makes the obligation of funds under this heading 
     to support IMET training at the School of the Americas 
     contingent upon certification by the Secretary of Defense 
     that the instruction and training provided by the School of 
     the Americas is fully consistent with training and doctrine, 
     particularly with respect to the observance of human rights, 
     provided by the Department of Defense to United States 
     military students at Department of Defense institutions whose 
     primary purpose is to train United States military personnel; 
     second, the Secretary of State, in consultation with the 
     Secretary of Defense, has developed and issued specific 
     guidelines governing the selection and screening of 
     candidates for instruction at the School of the Americas; and 
     third, the Department of Defense has submitted to the 
     Committees on Appropriations a report detailing the training 
     activities of the school of the Americas and a general 
     assessment regarding the performance of its graduates during 
     1996.


                        guatemala and indonesia

       The conference agreement includes language proposed by the 
     House which limits Indonesia and Guatemala to expanded IMET 
     only and, in the case of Guatemala, the conferees expect the 
     administration to obligate funds subject to the regular 
     notification procedures of the Committees on Appropriations. 
     The conferees agree that expanded IMET for Guatemala shall be 
     used to support the peace settlement and that qualified non-
     military personnel should be well represented in such courses 
     to the extent practical.


                     civilian participation in imet

       The conference agreement also includes language proposed by 
     the Senate which allows IMET participation by civilian 
     personnel who are not members of a government if their 
     participation would contribute to improved civil-military 
     relations, civilian control of the military, or respect for 
     human rights.


                                mongolia

       The conferees commend the Department of Defense for the 
     Department's implementation of the fiscal year 1997 IMET 
     program in mongolia in a manner consistent with the 
     objectives outlined in the Statement of Managers or Public 
     law 104-208. The conferees urge continued support for its 
     important program in Mongolia, particularly in the expanded 
     IMET area.


           foreign military financing program (grant program)

       The conference agreement appropriates $3,296,550,000 
     instead of $3,308,950,000 as proposed by the Senate and 
     $3,259,250,000 as proposed by the House.


                            the middle east

       The conference agreement inserts earmarks for Israel, Egypt 
     and Jordan which provide that not less than $1,800,000,000 
     shall be available for grants only or Israel, not less than 
     $1,300,000,000 shall be available for grants only for Egypt, 
     and not less than $75,000,000 shall be available for 
     assistance for Jordan. The conference agreement also directs 
     the President to draw down not less than $25,000,000 in 
     defense equipment and services for Jordan, the aggregate 
     value of which shall count against the earmark for Jordan.


                 poland, hungary and the czech republic

       The conference agreement provides that not less than 
     $50,000,000 in funds made available for FMF grants and FMF 
     loans should be made available for Poland, Hungary, and the 
     Czech Republic to facilitate the integration of these nations 
     into NATO.


                           the baltic nations

       The conference agreement provides that $18,300,000 should 
     be made available to Estonia, Latvia and Lithuania. These 
     funds are provided to enhance programs aimed at improving the 
     military capabilities of these nations and to strengthen 
     their interoperability and standardization with NATO, 
     including the development of a regional airspace control 
     system. Given progress in economic reform and meeting 
     military guidelines for prospective NATO members, the 
     conferees believe the Baltic nations will make an important 
     contribution to enhancing stability and peace in Europe and 
     are strong candidates for NATO membership.
       The conference agreement retains House language which 
     provides that the obligation of funds for any non-NATO 
     country participating in the Partnership for Peace shall be 
     subject to notification.


                            fmf loan program

       The conference agreement also appropriates $60,000,000 as 
     proposed by the House for the subsidy cost of direct loans 
     instead of $74,000,000 as proposed by the Senate. The 
     conference agreement provides that these funds are available 
     to support not to exceed $657,000,000 in direct loans as 
     proposed by the

[[Page H10624]]

     House instead of $759,500,000 as proposed by the Senate.
       The conference agreement deletes a Senate earmark of 
     $8,000,000 for loans to Estonia, Latvia, and Lithuania. 
     Increased assistance for these countries is provided under 
     the grant FMF program.
       The conference agreement retains the House levels of 
     $105,000,000 and $150,000,000 as ceilings on FMF loans to 
     Greece and Turkey respectively instead of $122,500,000 and 
     $175,000,000 as proposed by the Senate.


                      fmf administrative expenses

       The conference agreement includes House language which 
     provides that not more than $350,000,000 of the 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, instead of 
     $355,000,000 as proposed by the Senate.


                           fmf loan criteria

       The conference managers are extremely concerned that the 
     Administration has apparently abandoned its long-standing 
     credit criteria for determining eligibility for the FMF loan 
     program. The conferees note that previous year funds were 
     made available to support the FMF loan program based upon a 
     clear understanding, provided by the Administration at the 
     time the funds were being requested, of its loan criteria and 
     its intended application. The conferees note that the current 
     application of the FMF loan program is not consistent with 
     these presentations. The conferees direct the Secretary of 
     State, in consultation with the Secretary of Defense, 
     Secretary of the Treasury, the Director of the Office of 
     Management of Budget, and in coordination with the Director 
     of the Congressional Budget Office, to review the current FMF 
     loan policy and its application to current and proposed 
     program participants and to report to the Committees on 
     Appropriations, within 180 days of enactment of this Act, on 
     these issues, to include a statement specifically detailing 
     Administration FMF loan policy and credit risk criteria. The 
     conferees also direct the Secretary of Defense to report to 
     the Committees on Appropriations on a quarterly basis, 
     beginning January 1, 1998, on the current credit risk ratings 
     for potential and current FMF loan program participants.

                        Peacekeeping Operations

       The conference agreement provides $77,500,000 for 
     peacekeeping operations as proposed by the House instead of 
     $75,000,000 as proposed by the Senate.


                    multilateral force and observers

       The conferees note that the current Director General of the 
     Sinai Multilateral Force and Observers is concluding his last 
     term in office. The conferees expect a report from the 
     Secretary of State, prior to the release of the U.S. share of 
     the Observer Force funding, on the status of efforts to 
     replace the Director General.


                   african crisis response initiative

       The conferees note that funds provided to support the 
     African Crisis Response Initiative should be utilized to 
     foster the growth of democracy and the protection of human 
     rights in Africa and should not be directed to undemocratic 
     governments with a history of human rights abuses by their 
     militaries. The conferees agree with the Department of State 
     that ``it is important that countries selected to receive 
     additional training and equipment have military 
     establishments that accept the supremacy of democratic 
     civilian government.'' The conferees expect the 
     Administration to consult closely with the Committees on 
     Appropriations, prior to obligating such funds, to ensure 
     this minimum standard is met.


                                morocco

       The conferees congratulate both Morocco and the POLISARIO 
     for reaching an agreement to allow a free, fair and 
     transparent referendum on the future of the people of the 
     Western Sahara, and recognize the efforts of United Nations 
     Personal Envoy James Baker in reaching this agreement. The 
     conferees expect full implementation of the terms of the 
     agreement and encourage the Department of State to play an 
     active role in ensuring full implementation. The conferees 
     also urge both parties to engage in the exchange of all 
     prisoners of war, political prisoners and political 
     detainees.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

                  International Financial Institutions


     contribution to the international bank for reconstruction and 
                development global environment facility

       The conference agreement appropriates $47,500,000 instead 
     of $60,000,000 as proposed by the Senate and $35,000,000 as 
     proposed by the House.


       contribution to the international development association

       The conference agreement appropriates $1,034,503,100 
     instead of $1,034,500,000 as proposed by the Senate and 
     $606,000,000 as proposed by the House.
       The agreement prohibits obligation of IDA funds until the 
     Secretary of the Treasury certifies that procurement 
     restrictions on American firms under the Interim Trust Fund 
     have been lifted. Both the House and Senate bills included 
     similar language on this matter.


contribution to the enterprise for the americas multilateral investment 
                                  fund

       The conference agreement appropriates $30,000,000 for the 
     Multilateral Investment Fund, all of which was previously 
     due. The House bill contained no funds for this program.


               contribution to the asian development fund

       The conference agreement appropriates $150,000,000 for the 
     Asian Development Fund as proposed by the Senate instead of 
     $100,000,000 as proposed by the House. Of this amount, 
     $50,000,000 was previously due.


              contribution to the african development fund

       The conference agreement includes $45,000,000 for the 
     African Development Fund, instead of $50,000,000 as proposed 
     by the House (including Section 579 of the House bill). The 
     Senate amendment did not include any funds for this 
     institution. The entire amount provided was previously due.

                    North American Development Bank

       The House bill and the Senate amendment included 
     $56,500,000 for the North American Development Bank, and the 
     conference agreement includes language providing that 
     $250,000 of these funds are for contributions previously due. 
     In addition, language is included that limits to $41,250,000 
     the amount of funds that may be expended in fiscal year 1998 
     for purchase of capital shares in the bank. This action is 
     being done solely for budgetary reasons and does not reflect 
     any lack of support for the North American Development Bank.


  loans to the international monetary fund; new arrangements to borrow

       The conference agreement does not appropriate funds for the 
     proposed New Arrangements to Borrow. The Senate proposed 
     $3,521,000,000, denominated as the dollar equivalent of IMF 
     Special Drawing Rights. The House bill did not include any 
     appropriation for this purpose. The managers defer this item 
     without prejudice.


        authorizations for international financial institutions

       The statutory authority required by the Secretary of the 
     Treasury to activate several of the appropriations provided 
     for international financial institutions is found in section 
     560 of the conference agreement.

                International Organizations and Programs

       The conference agreement appropriates $192,000,000 instead 
     of $194,000,000 as proposed by the House and $277,000,000 as 
     proposed by the Senate. The conference agreement does not 
     include funding for the United Nations Children's Fund 
     (UNICEF) in this account, as proposed by the Senate. Funding 
     of $100,000,000 for UNICEF is contained in ``Child Survival 
     and Disease Programs Fund'' under title II.
       The conference agreement includes House language on the 
     United Nations Population Fund (UNFPA) that limits funding to 
     UNFPA to one-half of the funding ceiling of $25,000,000 prior 
     to March 1, 1998, and requires that no later than February 
     15, 1998, the Secretary of State shall submit a report to the 
     Committees on Appropriations indicating the amount UNFPA is 
     budgeting for the People's Republic of China in 1998. In 
     addition, the language requires that any amount UNFPA plans 
     to spend in the People's Republic of China in 1998 will be 
     deducted from the amount of funds provided to UNFPA after 
     March 1, 1998. Finally, with respect to any funds made 
     available to UNFPA, the language requires UNFPA to 
     maintain such funds in a separate account and not to 
     commingle them with any other funds.
       The conference agreement does not contain Senate language 
     providing $5,000,000 for the World Food Program, but does 
     include language indicating that $4,000,000 should be made 
     available for this purpose. The House bill contained no 
     provision on this matter.
       The conference agreement deletes House language prohibiting 
     the use of funds for the United Nations development group or 
     any similar organization. The House bill provision, as well 
     as House and Senate report language, reflect concern about 
     proposals formerly under consideration at the United Nations 
     that would have merged and consolidated UNICEF with other 
     United Nations development organizations, thereby threatening 
     UNICEF's unique mission for the children of the world and its 
     ability to raise private sector funding. Since the reform 
     plan announced by the Secretary-General on July 16, 1997, 
     appears to preserve the special mandate of UNICEF for 
     children, the conference agreement does not contain this 
     funding prohibition. However, the managers intend to monitor 
     closely the impact upon UNICEF of the implementation of the 
     United Nations reform plan. The managers expect that the 
     independence of UNICEF will be continued and that its ability 
     to work for the survival, protection, and development of 
     vulnerable children will remain uncompromised. The managers 
     expect this to be a top priority of the Department of State 
     as well, and expect to receive regular consultations as the 
     reform plan proceeds.
       The conferees support the Administration's request level 
     for the United Nations Development Program (UNDP), but expect 
     that not less than $98,000,000 should be made available for 
     UNDP in fiscal year 1998. The conferees also support the work 
     of the United Nations Voluntary Fund for Victims of Torture 
     and expect that the Administration will make every effort to 
     support this organization at the highest level possible.

[[Page H10625]]

                      TITLE V--GENERAL PROVISIONS

     Sec. 501. Obligations during last month of availability
       The conference agreement contains House language providing 
     that not more than 15 percent of any appropriation item made 
     available by this Act shall be obligated during the last 
     month of availability, except for funds under the headings 
     ``International Disaster Assistance'' and ``United States 
     Emergency Refugee and Migration Assistance Fund''. The Senate 
     amendment contained no provision on this matter.
     Sec. 502. Prohibition of bilateral funding for international 
         financial institutions
       The conference agreement includes language proposed by the 
     House which prohibits funds in title II being used to carry 
     out the provisions of section 209(d) of the Foreign 
     Assistance Act, notwithstanding section 614 of said Act. The 
     Senate amendment contained no provision on this matter.
     Sec. 509. Transfers between accounts
       The conference agreement includes House language providing 
     that the exercise of the authority under this section shall 
     be subject to the regular notification procedures of the 
     Committees on Appropriations, except for transfers 
     specifically referred to in this Act. The Senate amendment 
     did not include the requirement for notification.
     Sec. 512. Limitation on assistance to countries in default
       The conference agreement includes a waiver for Liberia from 
     the requirements of section 620(q) of the Foreign Assistance 
     Act as proposed by the House. The Senate addressed this 
     matter in section 561 of the Senate amendment.
     Sec. 513. Commerce and trade
       The conference agreement restores House language at the end 
     of subsection (a) that provides authority to the Board of the 
     Export-Import Bank to waive the prohibition on the use of 
     funds to establish or expand production of commodities that 
     could adversely affect United States producers. The Senate 
     amendment did not contain this provision.
     Sec. 515. Notification requirements
       The conference agreement makes ``Child Survival and Disease 
     Programs Fund'', as proposed by the House, subject to the 
     notification requirements of this section. The Senate 
     amendment had deleted the reference to this account.
     Sec. 519. Reporting requirement
       The conference agreement amends permanent law as proposed 
     by the Senate to provide that the reports required by section 
     25(a)(1) of the Arms Export Control Act shall be submitted to 
     the Committees on Appropriations. The House bill required 
     such reports, but did not amend permanent law.
     Sec. 520. Special notification requirements
       The conference agreement adds ``Panama'' as proposed by the 
     House to the list of countries subject to the special 
     notification requirements of this section. It also deletes 
     ``Russia'' from this list, as proposed by the Senate. The 
     Senate provisions adding ``Guatemala'' and ``Dominican 
     Republic'' are not included in the conference agreement.
     Sec. 522. Child survival, AIDS and other activities
       The conference agreement includes Senate language limiting 
     to $10,000,000 the funds that may be made available to 
     reimburse specified organizations for certain activities in 
     support of family planing activities, child survival 
     activities, and activities relating to research on, and the 
     treatment and control of, HIV/AIDS, as well as Senate 
     language including basic education activities under the 
     authority of the section. the House bill had similar 
     language, but the limitation was $8,000,000 and did not 
     include basic education activities.
     Sec. 526. Authorization requirement
       The conference agreement includes Senate language waiving 
     the authorization requirements of section 10 of Public Law 
     91-672 and section 15 of the State Department Basic 
     Authorities act for the funds appropriated in this Act. The 
     House bill made these funds subject to these authorization 
     requirements.
     Sec. 536. Extension of authority to obligate funds to close 
         the special defense acquisition fund
       The conference agreement includes language proposed by the 
     House which amends title III of Public Law 103-306 to extend 
     through fiscal year 2000 the authority to obligate funds to 
     close the Special Defense Acquisition Fund. The Senate 
     amendment contained no provision on this matter.
     Sec. 537. Authorities for the Peace Corps, the Inter-American 
         Foundation and the African Development Foundation
       The conference agreement restores House language providing 
     authority for the Inter-American Foundation and the African 
     Development Foundation to operate in foreign countries 
     notwithstanding other provisions of this or other Acts. The 
     Senate amendment deleted the language providing such 
     authority.
     Sec. 539. Special authorities
       The conference agreement deletes ``Cambodia'' from the 
     provisions that exempt assistance to that country from any 
     other provision of law as proposed by the Senate, but 
     restores House language exempting humanitarian assistance for 
     the peoples of Bosnia and Herzegovina and Croatia from any 
     other provision of law.
       The conference agreement also deletes Senate language 
     allowing for the use of up to $40,000,000 under the authority 
     (relating to unanticipated contingencies) of section 451 of 
     the Foreign Assistance Act. The House bill does not address 
     the matter. The permanent statutory limit is $25,000,000.
       The conference agreement includes language in a new 
     subsection (d) which enables the President to waive section 
     1003 of Public Law 100-204, relating to prohibitions 
     regarding the Palestinian Liberation Organization, if the 
     President determines that it is important to the national 
     security interests of the United States.
     Sec. 540. Policy on terminating the Arab League boycott of 
         Israel
       The conference agreement includes language proposed by the 
     House which deals with the decision in 1997 by the Arab 
     League to reinstate the boycott of Israel and encourages the 
     President to take certain specific steps in response to this 
     decision.
     Sec. 542. Eligibility for assistance
       The conference agreement includes House language regarding 
     exemptions from restrictions on certain assistance if carried 
     out by nongovernmental organizations. The Senate amendment 
     included similar language, but did not include ``Assistance 
     for Eastern Europe and Baltic States'' under the terms of the 
     provision. This section allows development assistance to be 
     provided for nongovernmental organizations in cases where 
     such assistance would otherwise be barred because of a 
     statutory prohibition on assistance to a country. Under this 
     authority, assistance provided through nongovernmental 
     organizations may only marginally benefit the government of a 
     country otherwise prohibited from receiving assistance 
     through, for example, the necessary use of government 
     facilities by nongovernmental organizations providing 
     assistance to the people of that country. Except in such 
     limited circumstances, the fact that assistance may be 
     provided through nongovernmental organizations does not mean 
     that the assistance can be provided to the government. 
     Rather, the provision was first enacted in recognition that a 
     government's actions should not automatically bar assistance 
     to the people of a country through nongovernmental channels. 
     It is with this intention that the conferees have expanded 
     the scope of the current authority to include the former 
     Soviet Union and Eastern Europe.
     Sec. 545. Prohibition on publicity or propaganda
       The conference agreement includes House language limiting 
     to $500,000 the amount that may be made available to carry 
     out the provisions of section 316 of Public Law 96-533 
     relating to hunger and development education. The Senate bill 
     did not include a limitation.
     Sec. 546. Purchase of American-made equipment and products
       The conference agreement combines this section with section 
     558, as proposed by the Senate. The language require, to the 
     greatest extent practicable, that any entity receiving 
     assistance under this Act should receive notice that it is 
     the Sense of the Congress that all equipment and products 
     funded by this Act should be American-made.
     Sec. 550. Prohibitions on assistance to foreign governments 
         that export lethal military equipment to countries 
         supporting international terrorism
       The conference agreement provides that the prohibition on 
     assistance called for in subsection (a) applies with respect 
     to a contract entered into after October 1, 1997 instead of 
     ``April 24, 1996'' as proposed by the House and ``after the 
     date of enactment of this Act'' as proposed by the Senate.
     Sec. 553. War crimes tribunals drawdown
       The conference agreement changes the designation of the 
     section title to include the word ``drawdown'' as proposed by 
     the Senate.
     Sec. 557. Equitable allocation of funds
       The conference agreement inserts House language providing 
     that not more than 18 percent of the funds appropriated to 
     carry out the provisions of sections 103 through 106 and 
     chapter 4 of part II of the Foreign Assistance Act that are 
     made available for Latin America and the Caribbean region may 
     be made available, through bilateral and regional programs, 
     to provide assistance to any one country in such region. The 
     Senate bill did not include this provision.
     Sec. 560. Authorization requirement for international 
         financial institutions
       The conference agreement includes language from title IV of 
     the Senate amendment authorizing appropriations over several 
     years of $1,600,000,000 for the International Development 
     Association (IDA), $285,772,500 for paid-in capital of the 
     European Bank for Reconstruction and Development, 
     $400,000,000 for the Asian Development Bank, and $76,832,001 
     for paid-in capital of the Inter-American Development Bank. 
     The House bill authorized $606,000,000 for the IDA.
       The conference agreement also amends current law to require 
     the International Finance Corporation to comply with 
     environmental standards that apply to other multilateral 
     institutions. It also includes a provision (from Senate 
     section 568) relating to procurement opportunities available 
     to United States suppliers and community participation in the 
     planning and implementation of multilateral bank projects.
       The multilateral lending banks are encouraged to undertake 
     an assessment of the

[[Page H10626]]

     transparency and integrity of procurements they finance, 
     including a finding on the utility of using independent third 
     party procurement monitoring services. Such services may help 
     U.S. companies compete for MDB procurement awards.
     Sec. 561. Sanctions against countries harboring war criminals
       The conference agreement inserts House language on this 
     matter, except that there is no reference to the 
     International Criminal Tribunal for the former Yugoslavia. 
     Under subsection (a), the language authorizes the President 
     to withhold funds for countries harboring war criminals as 
     described in this section. Under subsection (b), the language 
     states the President should instruct the United States 
     executive directors of the international financial 
     institutions to work in opposition to, and vote against, 
     assistance to countries described in this section. The Senate 
     amendment would have required that assistance be withheld, 
     and would have limited the application of the provision to 
     war criminals indicted by the International Criminal Tribunal 
     for Rwanda.
     Sec. 562. Limitation on assistance to Haiti
       The conference agreement inserts a substitute provision 
     limiting assistance to the Government of Haiti (updating what 
     is known as the Dole Amendment). The conference substitute is 
     similar to the Senate provision, but requires that the 
     privatization of at least three major state enterprises be 
     substantially completed as proposed by the House.
     Sec. 563. Requirement for disclosure of foreign aid in report 
         of Secretary of State
       The conference agreement continues and updates prior year 
     language requiring that the annual report on the voting 
     record of foreign countries at the United Nations include a 
     side-by-side comparison showing the amount of U.S. assistance 
     provided to each country in fiscal year 1997. The Senate bill 
     was identical except that it referenced the fiscal year 1996.
     Sec. 564. Restrictions on voluntary contributions to United 
         Nations agencies
       The conference agreement includes House language 
     prohibiting payment of any voluntary contribution to the 
     United Nations (including the United Nations Development 
     Program) if the U.N. implements any taxation on any United 
     States national or corporation. The Senate amendment did not 
     address this matter.
     Sec. 565. Assistance to Turkey
       The conference agreement inserts language which limits 
     ``Economic Support Funds'' to Turkey to $40,000,000; provides 
     that not less than 50 percent of such funds shall be made 
     available for the purposes of supporting private 
     nongovernmental organizations engaged in strengthening 
     democratic institutions in Turkey, providing economic 
     assistance for individuals and communities affected by civil 
     unrest, and supporting and promoting peaceful solutions and 
     economic development which will contribute to the settlement 
     of regional problems in Turkey. The conferees agree that the 
     cash transfer and direct project assistance components of 
     Turkey's assistance are not severable and if, for whatever 
     reason, the directed assistance were not provided and 
     spent in the manner provided in subsection (b), the 
     Government of Turkey would not receive the direct 
     government-to-government assistance. Furthermore, the 
     conferees also agree that the Agency for International 
     Development will be responsible for administering the 
     project elements of subsection (b) utilizing NGO's, PVO's 
     and other instrumentalities consistent with the purposes 
     outlined in subsection (b) and in consultation with the 
     Committees on Appropriations.
       The conferees also expect that the implementation of 
     subsection (b) will be carried out in consultation with the 
     Government of Turkey, which should include the participation 
     of nongovernmental organizations where necessary and 
     appropriate. The conferees note that it is neither the intent 
     of the conference, nor is it the effect of this provision, to 
     impinge upon Turkey's national sovereignty.
       The Senate amendment did not contain a provision on this 
     matter.
     Sec. 566. Limitation on assistance to the Palestinian 
         Authority
       The conference agreement includes language which provides 
     that none of the funds appropriated by this Act to carry out 
     the provisions of chapter 4 of part II (Economic Support 
     Fund) of the Foreign Assistance Act of 1961 may be obligated 
     or expended with respect to providing funds to the 
     Palestinian Authority. The conference agreement allows the 
     President to waive this prohibition if it is determined that 
     it is ``important to the national security interests of the 
     United States.'' The waiver is effective for a period of not 
     more than six months at a time and shall not apply beyond 
     twelve months after enactment of this Act.
       Both the House bill and the Senate amendment included 
     similar provisions banning funds for the Palestinian 
     Authority and the P.L.O. but each would have allowed for the 
     provision of funds based upon a detailed but different 
     Presidential certification. Both House and Senate bills 
     include identical language (Sections 552) which bans 
     assistance to the P.L.O.
     Sec. 567. Limitation on assistance to the Government of 
         Croatia
       The conference agreement includes language proposed by the 
     House that bars use of funds made available to the Government 
     of Croatia in title II to relocate the remains of Croatian 
     Ustashe soldiers to the site of the World War II 
     concentration camp at Jasenovac, Croatia. The Senate bill did 
     not address this matter.
     Sec. 568. Burma labor report
       The conference agreement includes language requiring a 
     report from the Secretary of Labor, in consultation with the 
     Secretary of State, on labor practices in Burma. The Senate 
     amendment included the requirement for a report from the 
     Secretary of Labor, as well as details regarding contents 
     of the report. The House bill did not address this matter.
       The conferees request the report address allegations and 
     details on child labor practices, workers' rights, the forced 
     relocation of laborers, and the use of forced labor to 
     support the tourism industry and the construction of the 
     Yadonna gas pipeline. To assure an understanding of its 
     accuracy, the conferees also expect an evaluation of the 
     cooperation and access afforded in Burma to the officials 
     engaged in the preparation of the report.
     Sec. 569. Haiti
       The conference agreement includes Senate language making 
     the Government of Haiti eligible to purchase defense articles 
     and services under the Arms Export Control Act for the 
     Haitian National Police and Coast Guard, subject to 
     notification. The House bill contained no provision on this 
     matter.
     Sec. 570. Limitation on assistance to security forces
       The conference agreement includes language, similar to that 
     in the Senate amendment, which prohibits funds in this Act 
     from being provided to any unit of the security forces of a 
     foreign country if the Secretary of State has credible 
     evidence that 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 effective measures to bring responsible 
     members of the security forces to justice. The language also 
     provides that nothing in this section shall be construed to 
     withhold funds from any unit credibly alleged to be involved 
     in gross violations of human rights. In addition, if funds 
     are withheld pursuant to this section, the Secretary is 
     directed to inform promptly the foreign government of the 
     basis for such action and shall, to the maximum extent 
     practicable, assist the foreign government in taking 
     effective measures to bring the responsible members of the 
     security forces to justice so funds to the unit may resume.
       The conferees are aware that there may be instances when 
     providing information to a foreign government would 
     compromise sources and methods, or endanger witnesses. The 
     phrase ``to the maximum extent practicable'' ensures, among 
     other things, that sources, methods and the safety of 
     witnesses are fully protected. By ``taking effective measures 
     to bring responsible members of the security forces unit to 
     justice'', the conferees intend that the government carry out 
     a credible investigation and that the individuals involved 
     face appropriate disciplinary action or impartial prosecution 
     in accordance with local law.
       The House bill contained no provision on this matter.
     Sec. 571. Limitations on transfer of military equipment to 
         East Timor
       The conference agreement includes language which requires 
     that any agreement for sale, transfer, or licensing of any 
     lethal equipment or helicopters for Indonesia entered into by 
     the United States shall state that the United States expects 
     that such items will not be used in East Timor. The 
     conference agreement also provides that nothing in this 
     section shall be construed to limit Indonesia's inherent 
     right to legitimate national self-defense as recognized under 
     the United Nations Charter and international law.
       The conferees recognize Indonesia's important contribution 
     to regional security and its inherent right of self-defense 
     under the United Nations Charter. The conferees note, 
     however, that U.S. military equipment has been used by 
     Indonesian troops in East Timor. The conferees are concerned 
     that U.S. military equipment not be used in a manner 
     inconsistent with international law, particularly with 
     respect to the observance of human rights and therefore have 
     included bill language which makes clear that such items 
     should not be used in East Timor.
       The House bill did not contain a provision on this matter.
     Sec. 572. Transparency of budgets
       The conference agreement includes Senate language amending 
     section 576(a)(1) and (a)(2) of Public Law 104-208 to require 
     that countries 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 in order to receive U.S. support for 
     multilateral assistance through international financial 
     institutions, and to condition U.S. support for such 
     assistance on the requirement that information be provided to 
     the international financial institution on such audit process 
     if requested by such institution. The House bill contained no 
     provision on this matter.

[[Page H10627]]

     Sec. 573. Restrictions on funding to countries providing 
         sanctuary to indicted war criminals
       The conference agreement includes language prohibiting 
     bilateral assistance and the support of the United States for 
     certain multilateral assistance, for countries and entities 
     not in compliance with the war crimes provisions of the 
     Dayton peace accords for the former Yugoslavia. The Senate 
     bill contained language which prohibited most support for 
     such countries and entities until measurable progress was 
     made with respect to the arrest and transfer to The Hague of 
     indicted war criminals. The House addressed the issue of war 
     crimes in the former Yugoslavia in section 565 of the House 
     bill, which would have authorized the President to withhold 
     assistance to countries that granted sanctuary to war 
     criminals.
       The conferees expect that the provision of United States 
     assistance to Croatia and Bosnia through international 
     financial institutions will be coordinated with U.S. foreign 
     policy objectives. With respect to the exemption in the 
     section for bilaterally and multilaterally funded cross-
     border infrastructure projects, the conferees intend that the 
     exemption should apply only to projects which are 
     predominantly located in and predominantly benefit a 
     nonsanctioned entity and include a small portion that extends 
     into a contiguous sanctioned entity for the purpose of 
     completing the project. The conferees note that Republicka 
     Srpska has failed to arrest and transfer any of the 53 
     publicly indicted war criminals believed to be in its 
     territory.
     Sec. 574. Extension of certain adjudication provisions
       The conference agreement includes Senate language that 
     extends for an additional year (until October 1, 1998) the 
     provisions of section 599D and 599E of Public Law 101-167; 
     these provisions establish categories of aliens for purposes 
     of refugee determinations, and provide for the adjustment of 
     immigrant status for certain Soviet and Indochinese aliens. 
     The House bill did not contain a provision on this matter.
       The managers expect that this matter will be addressed in 
     the future by the committees of jurisdiction, and do not 
     anticipate making another extension in an appropriations act.
     Sec. 575. Additional requirements relating to stockpiling of 
         defense articles for foreign countries
       The conference agreement includes language proposed by the 
     Senate which in subsection (a) amends section 514(b)(2)(A) of 
     the Foreign Assistance Act by authorizing additions to 
     defense stockpiles for foreign countries of $60,000,000 for 
     fiscal year 1998. Subsection (b) amends section 514(b)(2)(B) 
     of the same act to authorize, for fiscal year 1998, not more 
     than $40,000,000 for stockpiles in the Republic of Korea and 
     not more than $20,000,000 for stockpiles in Thailand. The 
     House bill did not contain a provision on this matter.
     Sec. 576. Delivery of drawdown by commercial transportation 
         services
       The conference agreement includes Senate language which 
     amends section 506 of the Foreign Assistance Act of 1961, as 
     follows: (1) requires a report to Congress detailing all 
     defense articles, defense services, and military education 
     and training delivered to a recipient country or 
     international organization upon delivery of such articles or 
     upon completion of such services, including whether any 
     savings were realized by utilizing commercial transport 
     services; and (2) authorizes, as part of any drawdown of 
     defense or other articles or commodities, that such drawdown 
     may include the supply of commercial transportation and 
     related services that are acquired by contract for the 
     purposes of the drawdown in question if the cost to acquire 
     such commercial transportation and related services is less 
     than the cost to the United States Government of providing 
     such services from agency assets. The House bill did not 
     contain a provision on this matter.
     Sec. 577. To prohibit foreign assistance to the Government of 
         Russia should it implement laws which would discriminate 
         against minority religious faiths in the Russian 
         Federation
       The conference agreement inserts a new provision instead of 
     language proposed by the Senate. The House did not address 
     this matter.
       The conference substitute is effective 150 days after 
     enactment. Upon its effective date, the President is allowed 
     30 days to certify the Congress that the Government of the 
     Russian Federation has not implemented any measure that 
     discriminates against religion in violation of international 
     agreements that include Russia. In the absence of such 
     certification, funds appropriated under the Act may not be 
     obligated for the Government of the Russian Federation.
       The managers note continued Congressional concern over the 
     issue of religious freedom in the Russian Federation. Despite 
     the personal intervention of the Vice President and many 
     members of Congress, President Yeltsin signed into a law a 
     measure which could threaten religious freedom in Russia.
       The conferees consider implementation of the new law on 
     religion by national, regional, and local entities in Russia 
     to be the determining factor regarding religious freedom. The 
     operative phase in this section should be interpreted by the 
     Administration as giving it discretion to determine if the 
     Russian government's actions are discriminatory.
       The conferees acknowledge the advances that the Russian 
     Federation has made in the areas of human rights and 
     democratic political reforms. Congress has saluted its past 
     willingness to allow freedom of speech, assembly, and 
     religion. The managers remain optimistic that religious 
     diversity and freedom of religious expression can survive in 
     the Russian Federation.
     Sec. 578. U.S. policy regarding support for countries of the 
         South Caucasus and Central Asia
       The conference agreement includes Senate language 
     supporting the development of strong political and economic 
     ties between countries of the Southern Caucausus and Central 
     Asia regions and the West; the language also addresses United 
     States policy with regard to the independence of Southern 
     Caucasus and Central Asia republics and resolutions of 
     regional conflicts.
     Sec. 579 Pakistan
       The conference agreement includes language proposed by the 
     Senate to amend section 239(f) of the Foreign Assistance Act 
     of 1961 to exempt the Overseas Private Investment Corporation 
     from provisions in the Foreign Assistance Act prohibiting 
     OPIC activity in Pakistan and expressing the sense of the 
     Congress that the Director of the Trade and Development 
     Agency should ``use funds made available'' to promote United 
     States exports to Pakistan. The conference agreement deletes 
     language proposed by the Senate to amend section 638(b) of 
     the Foreign Assistance Act of 1961 to exempt Pakistan from 
     prohibitions on certain training activities. The House bill 
     did not address this matter.
     Sec. 580. Requirements for the reporting to Congress of the 
         costs to the Federal Government associated with the 
         proposed agreement to reduce greenhouse gas emissions
       The conference agreement includes Senate language, except 
     for a date change, requiring the President to report on 
     federal expenditures for climate and global change programs 
     and activities. The report is required by November 15, 1997, 
     rather than October 15, 1997, as in the Senate amendment. The 
     House did not address the matter. The managers are concerned 
     about the Administration's failure to comply with a similar 
     information request in the fiscal year 1997 Foreign 
     Operations Export Financing and Related Programs 
     Appropriations Act.
     Sec. 581. Authority to issue insurance and extend financing
       The conference agreement includes Senate language extending 
     the operations of the Overseas Private Investment Corporation 
     for two additional years within an overall credit ceiling of 
     $29,000,000,000. It does not include a Senate provision 
     extending the operations of the Export-Import Bank.
     Sec. 582. Withholding assistance to countries violating 
         United Nations sanctions against Libya
       The conference agreement language is similar to that in the 
     Senate amendment requiring the President to withhold 5 
     percent of the funds (other than humanitarian and development 
     assistance) allocated to any country that is violating 
     sanctions against Libya. The language also includes a 
     provision to allow the President to waive this section if he 
     determines that to do so is in the national security of the 
     United States.
       If the President exercises his waiver authority under this 
     section, the determination is to be provided in writing to 
     the Committees on Appropriations.
     Sec. 583. War crimes prosecution
       The conference agreement includes language similar to that 
     in the Senate amendment that amends the War Crimes Act of 
     1996. The language is identical to the language of H.R. 1348, 
     which passed the House of Representatives on July 29, 1997. 
     This provision defines war crimes for the purposes of the War 
     Crimes Act. The House bill did not address this matter.
     Sec. 584. International military education and training 
         programs for Latin America
       The conference agreement includes language similar to that 
     proposed by the Senate which provides that the Secretary of 
     Defense, in consultation with the Secretary of State, should 
     make every effort to ensure that approximately 30 percent of 
     IMET funds for Latin America will be used to support 
     enrollment in expanded IMET courses. In addition the 
     conference agreement provides that the Secretary of State, in 
     consultation with the Secretary of Defense, should identify 
     sufficient numbers of qualified, nonmilitary personnel from 
     countries in Latin America so that approximately 25 percent 
     of the total of individuals from Latin American countries 
     attending United States supported IMET programs and the 
     Center for Hemispheric Defense Studies at the National 
     Defense University are civilians. Not later than twelve 
     months after the date of enactment of this Act, the Secretary 
     of Defense, in consultation with the Secretary of State, 
     shall report in writing to the appropriate committees of the 
     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 three fiscal 
     years.

[[Page H10628]]

       The House bill did not contain a provision on this matter.
     Sec. 585. Aid to the Government of the Democratic Republic of 
         Congo
       The conference agreement modifies Senate language regarding 
     assistance to the Democratic Republic of Congo. It would 
     prohibit assistance to the central government of the 
     Democratic Republic of Congo until the President reports that 
     said government is cooperating fully with investigators from 
     the United Nations in accounting for human rights violations 
     committed in the Democratic Republic of Congo or adjacent 
     countries. The House bill did not contain a provision on this 
     matter.
     Sec. 586. Assistance for the Middle East
       The conference agreement inserts language which provides 
     that of the funds appropriated by this Act under the headings 
     ``Economic Support Fund'', ``Foreign Military Financing'', 
     ``International Military Education and Training'', 
     ``Peacekeeping Operations'', for refugees resettling in 
     Israel under the heading ``Migration and Refugee 
     Assistance'', and for assistance for Israel to carry out 
     provisions of chapter 8 of part II of the Foreign Assistance 
     Act of 1961 under the heading ``Nonproliferation, Anti-
     Terrorism, Demining, and Related Programs'', not more than a 
     total of $5,402,850,000 may be made available for Israel, 
     Egypt, Jordan, Lebanon, the West Bank and Gaza, the Israel-
     Lebanon Monitoring Group, the Multinational Force and 
     Observers, the Middle East Regional Democracy Fund, Middle 
     East Regional Cooperation, and Middle East Multilateral 
     Working Groups, unless the President determines and certifies 
     to the Committees on Appropriations that it is important to 
     the national security interest of the United States to exceed 
     $5,402,850,000 and any such additional funds shall only be 
     provided through the regular notification procedures of the 
     Committees on Appropriations. The conference agreement also 
     includes language which would prevent the use of prior year 
     funds in the accounts listed in this section but allocated 
     for recipients outside of the Middle East region to fund 
     programs covered by the limitation on funds for Middle East 
     countries and activities required by this section. The 
     conferees included this provision in order to make certain 
     that prior year funds for other regions such as Africa and 
     Latin America would not be used to support Middle East 
     related activities.
     Sec. 587. Agriculture
       The conference agreement modifies subsection (k) under the 
     heading ``Assistance for the New Independent States of the 
     Former Soviet Union'' in the Foreign Operations, Export 
     Financing and Related Programs Act, 1997, by striking ``not 
     less that'' and inserting ``up to'' with regard to 
     $35,000,000 made available for agricultural projects, 
     including those undertaken through the Food Systems 
     Restructuring Program.
     Sec. 588. Enterprise fund restrictions
       The conference agreement includes a modification to Senate 
     language limiting payments to enterprise fund personnel. the 
     conferees agree to limit certain forms of future compensation 
     unless notified in advance by the Committee on 
     Appropriations.
     Sec. 589 Cambodia
       The conference agreement includes language stating the 
     Secretary of the Treasury should instruct the United States 
     Executive Directors of international financial institutions 
     to use the voice and vote of the United States to oppose 
     loans to the Government of Cambodia. The language is similar 
     to that included in the House bill and the Senate amendment.
     Sec. 591. Development credit authority
       The conference agreement provides $7,500,000 for a new 
     enhanced credit authority and $500,000 to be derived from AID 
     operating expenses. The managers intend for the credit 
     facility to fund a program in the Russian Far East providing 
     market rate loans and guarantees to finance non-sovereign and 
     sovereign development projects. These projects shall 
     concentrate on development of the energy sector, 
     telecommunications and infrastructure requirements, 
     especially improvements to ports. The managers believe U.S. 
     expertise, technology and services have the potential to make 
     a significant contribution to the development of the region's 
     vast natural resources while generating income, jobs and 
     economic growth. The managers believe this credit facility 
     should complement resources and activities provided by U.S. 
     trade promotion agencies to the private sector.
       No later than 60 days after the date of enactment of this 
     Act, the managers request a report from the Coordinator of 
     Assistance for the New Independent State clarifying a 
     development strategy for the Russian Far East including an 
     evaluation of the current and potential contribution of each 
     agency funded by this Act.
     Sec. 592. Authorization for population planning
       The conference agreement includes House language limiting 
     to $385,000,000 the funds available under title II of this 
     Act for population planning activities or other population 
     assistance. The Senate included a separate appropriations 
     account for these activities at a level of $435,000,000. The 
     conference agreement also includes language providing for 
     monthly apportionments for this funding at a level of not to 
     exceed 8.34 percent.

                          Cash Flow Financing

       The conference agreement strikes language proposed by the 
     House requiring that FMF procurements in excess of 
     $100,000,000 which are approved for cash flow financing shall 
     be subject to notification. A similar notification 
     requirement is included in permanent law (Public Law 104-
     164). The Senate bill contained no provision on this matter.

    Restrictions on the Termination of Sanctions Against Serbia and 
                               Montenegro

       The conference agreement does not include language from the 
     Senate amendment prohibiting the lifting of sanctions, 
     prohibitions, or requirements of section 1511 of Public Law 
     103-160 regarding Serbia or Montenegro unless certain 
     specified conditions are met. The House bill contained no 
     provision on this matter.

                       Use of American Resources

       The conference agreement deletes House language regarding 
     the use of American resources. However, this provision has 
     been merged in its entirely with section 546 of the 
     conference agreement.

                               Guatemala

       The conference agreement strikes both the House and Senate 
     language and includes under the heading ``International 
     Military Education and Training'' language limiting Guatemala 
     to expanded IMET only.

                              North Korea

       The conference agreement deletes language proposed by the 
     House which requires the Secretary of State, in consultation 
     with the Secretary of Defense, to submit semiannual reports 
     to the Committees on Appropriations on the status of the 
     North Korean military. This report is already required in 
     permanent law. The Senate bill did not contain a similar 
     provision.

   Sense of the Congress Relating to International Adoption Laws and 
                         Practices of Paraguay

       The conference agreement deletes a Sense of the Congress 
     resolution dealing with the plight of Americans seeking to 
     adopt children in Paraguay. The managers have been informed 
     by the Department of State that the Secretary has become 
     personally involved in this matter, and that a new adoption 
     law is expected to be passed in Paraguay at any time. The 
     Senate amendment did not contain a provision on this matter.

 Withholding of Assistance to Agency Supporting Nuclear Power Plant in 
                                  Cuba

       The conference agreement strikes language proposed by the 
     House which would prohibit funds under the heading 
     ``Nonproliferation, Antiterrorism, Demining, and Related 
     Programs'' that are made available for the International 
     Atomic Energy Agency from being made available for programs 
     and projects in Cuba. The Senate bill had no similar 
     provision. The conferees remain convinced that the Juragua 
     nuclear facility in Cuba is extremely unsafe and should not 
     be completed. The conferees therefore direct the Secretary of 
     State, prior to the obligation of funds for the IAEA, to 
     certify to the Committees on Appropriations that none of the 
     funds provided will be used to facilitate the activation of 
     the Juragua nuclear plant in Cuba.

         Limitation on Procurement Outside of the United States

       The conference agreement deletes House language restricting 
     the use of United States funds in foreign countries to buy 
     products or services, including defense articles or defense 
     services, from certain other foreign nations. The Senate bill 
     did not include a similar provision.

                    Authorization for NATO Expansion

       The conference agreement strikes a provision proposed by 
     the House which provides that no funds in this Act may be 
     used to pay for NATO expansion not authorized by law. The 
     conferees note that the authorization of funds to support the 
     future enlargement of NATO's is within the purview of 
     responsibilities of the relevant authorization committees of 
     the House and Senate. The Senate did not include a similar 
     provision.

                           Transfer Amendment

       The conference agreement deletes House language that 
     reduced amounts otherwise available for the Economic Support 
     Fund by $25,000,000 and increased the amount available for 
     the African Development Fund by the same amount.

Sense of Congress Regarding Costs of the Partnership for Peace Program 
                           and NATO Expansion

       The conference agreement strikes the House language on this 
     matter, however, the conferees strongly support the intent of 
     the language which states that all member nations of NATO 
     should contribute their proportionate share to pay for costs 
     of the Partnership for Peace program and any future costs 
     attributable to NATO expansion. The conferees direct the 
     Secretary of State, in consultation with the Secretary of 
     Defense, to report to the appropriate committees of the 
     Congress within 90 days of enactment of this Act on the 
     efforts being undertaken by the United States to ensure that 
     the United States does not bear an unfair or disproportionate 
     share of the financial burden of NATO enlargement. The Senate 
     amendment did not address this matter.

              International Financial Institution Policies

       The Senate provision relating to procurement opportunities 
     available to United

[[Page H10629]]

     States suppliers and community participation in the planning 
     and implementation of multilateral bank projects is 
     incorporated in section 560 of the conference agreement.

         Excess Defense Articles for Certain European Countries

       The conference agreement deletes Senate language amending 
     section 105 of Public Law 104-164 to extend the authorities 
     of such section to fiscal years 1998 and 1999. The House bill 
     did not contain a provision on this matter.

      Sense of the Senate Regarding Estonia, Latvia, and Lithuania

       The conference agreement does not include Sense of the 
     Senate language regarding Estonia, Latvia, and Lithuania, 
     proposed by the Senate but not addressed in the House bill. 
     The conferees strongly support increased security relations 
     between NATO and the Baltic nations and the conference 
     agreement includes a fifty percent increase over the level 
     requested by the administration in grant Foreign Military 
     Financing assistance for Latvia, Lithuania and Estonia.

            Promotion of Religious Freedom and Human Rights

       The conference agreement does not include language proposed 
     by the Senate, but not addressed in the House bill, regarding 
     an annual report on religious persecution and establishing a 
     Prisoner Information Registry. In addition, the Senate 
     language contained a provision expressing the Sense of the 
     Congress that a Commission on Security and Cooperation in 
     Asia should be established.
       The managers agree to defer to Leadership initiatives to 
     move freestanding legislation on the major issue of religious 
     freedom.

   United States Intelligence Activities Related to Monitoring Human 
                Rights Abuses and Religious Persecution

       The conference agreement deletes Senate language requiring 
     the President to undertake additional reporting to the 
     Intelligence Committees. The managers defer to the committees 
     of jurisdiction in this matter.

Sense of the Senate on the European Commission's Handling of the Boeing 
                      and McDonnell Douglas Merger

       The conference agreement deletes Senate language expressing 
     the Sense of the Senate regarding European objections to a 
     merger of two major American firms. The House bill did not 
     contain a provision on this matter.

   Use of Funds for the United States-Asia Environmental Partnership

       The conference agreement deletes Senate language 
     authorizing, notwithstanding any other provision of law, 
     funds to be made available for activities in the People's 
     Republic of China through the United States-Asia 
     Environmental Partnership program. The House bill did not 
     address this matter.

                    Liberation Tigers of Tamil Eelam

       The conference agreement deletes Senate language expressing 
     the Sense of the Senate that the State Department should list 
     the Liberation Tigers of Tamil Eelam as a terrorist 
     organization. The House bill did not address this matter.

Limitation on International Military Education and Training Assistance 
                                for Peru

       The conference agreement deletes language proposed by the 
     Senate prohibiting IMET funds for Peru unless the President 
     certifies that the Government of Peru is taking all necessary 
     steps to ensure that United States citizens held in prisons 
     in Peru are accorded timely, open and fair legal proceedings 
     in civilian courts. The House bill did not contain a similar 
     provision.
       The conferees direct the Secretary of State, the Secretary 
     of the Treasury, and the Administrator of the Agency for 
     International Development to use the diplomatic and financial 
     resources and influence available to them to encourage the 
     Government of Peru to take all necessary steps to ensure that 
     United States citizens held in prisons in Peru are treated 
     humanely and accorded timely, open and fair legal proceedings 
     in civilian courts. The conferees request that, no later than 
     March 1, 1998, the Secretary of State submit a report to the 
     Committees on Appropriations describing the Administration's 
     efforts to achieve these ends and the response of the 
     Government of Peru.


                   conference total--with comparisons

       The total new budget (obligational) authority for the 
     fiscal year 1998 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 1997 amount, the 1998 
     budget estimates, and the House and Senate bills for 1998 
     follow:

New budget (obligational) authority, fiscal year 1997...$12,311,119,710
Budget estimates of new (obligational) authority, fiscal 16,888,168,980
House bill, fiscal year 1998.............................12,311,414,980
Senate bill, fiscal year 1998............................16,859,708,000
Conference agreement, fiscal year 1998...................13,190,968,080
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 1997....+879,848,370
  Budget estimates of new (obligational) authority, fisca-3,697,200,900
  House bill, fiscal year 1998.............................+879,553,100
  Senate bill, fiscal year 1998..........................-3,668,739,920

     Sonny Callahan,
     John Edward Porter,
     Ron Packard,
     Joe Knollenberg,
     Mike Forbes,
     Jack Kingston,
     R.P. Frelinghuysen,
     Bob Livingston,
     Nancy Pelosi,
     Sidney R. Yates,
     Nita M. Lowey,
     Esteban E. Torres,
     David Obey,
                                Managers on the Part of the House.
     Mitch McConnell,
     Arlen Specter,
     Judd Gregg,
     Richard Shelby,
     R.F. Bennett,
     Ben Nighthorse Campbell,
     Ted Stevens,
     Thad Cochran,
     Patrick J. Leahy,
     Daniel K. Inouye,
     Frank R. Lautenberg,
     Tom Harkin,
                               Managers on the Part of the Senate.
  Mr. MOAKLEY. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman 
from New Jersey [Mr. Pallone].
  Mr. PALLONE. Mr. Speaker, I have been very surprised to hear my 
colleague from Florida, Mr. Goss, and my colleague from Illinois, Mr. 
Hyde, both of whom I have a great deal of respect for, decry this rule 
that has been in effect for so many years as too traditional. I think 
my colleague from Florida said times have changed, and the gentleman 
from Illinois talked about traditions having to change.
  Mr. Speaker, I think that this is a tradition that should not change 
because it is based on protections that were put into place, in effect, 
in reaction to the McCarthy era of the House Un-American Activities 
Committee, specifically the Hollywood 10 hearing.
  Mr. Speaker, we know, those of us who have seen clips or videos from 
that day, know that witnesses were filmed, blacklisted, their lives 
were destroyed. Why would we want to go back to that? Why do we not 
learn the lessons of the past and not repeat the mistakes that were 
made in the past?
  Now I heard the gentleman from Florida [Mr. Goss] say that we should 
not have to worry about possible abuse because if there was abuse, 
people would understand, they would react and say, well, that witness 
is being abused and is that not terrible that that is happening? Well, 
my colleagues know how TV is. People turn TV on and off. They might 
watch the individual being scrutinized or being harassed and not watch 
the reaction.
  So the suggestion that somehow someone is going to be watching this 
process for half an hour or an hour and 2 hours and see both sides, 
that is not the way things often happen. People sometimes flick on the 
TV for a minute or two, and that person is defamed.
  Then I heard the gentleman from Illinois [Mr. Hyde] say, well, this 
is a classic conflict of rights, the right of the public to know. Well, 
I think that there was an understanding when this rule was put into 
place that there was a conflict of rights and that this was the 
compromise. As was said previously, there is no reason. The cameras can 
come into the room, the cameraperson can come into the room, the 
broadcast media can be there, the print media can be there, they just 
cannot film the person while they are testifying. That was the 
compromise.
  Mr. Speaker, I just am concerned that the type of protections that 
were talked about by my Republican colleagues are not going to exist. 
The gentleman from Illinois [Mr. Hyde] said, well, someone will defend 
the witness; the gentleman from Pennsylvania [Mr. Kanjorski] or the 
gentleman from Massachusetts [Mr. Moakley] or others will get up there 
and defend the witness.
  We have no guarantee of that. We have no guarantee that the public is 
going to really understand or that they are going to watch the whole 
proceedings or that someone is going to step forward and defend the 
witness. That person is out there, they are out there on their own, and 
they should have the right to be able to turn off the camera, because 
it does happen on occasion that people are abused, and we do not want 
to go back to the mistakes of the past.
  Mr. MOAKLEY. Mr. Speaker, I yield 2 minutes to the gentleman from 
Pennsylvania [Mr. Klink].
  Mr. KLINK. Mr. Speaker, I thank the gentleman from Massachusetts for 
yielding this time to me.

[[Page H10630]]

  I am in a very unusual position on this debate, Mr. Speaker, because 
for 24 years of my life I worked as a radio and television newscaster, 
and I had to stand up to authorities that did not want cameras to come 
in and show the light. But I want to tell you, in 5 years in the House 
of Representatives, I have seen an abuse by stories that are leaked out 
to the news media.
  Mr. Speaker, last week I think was a prime example in the Committee 
on Commerce, the Subcommittee on Oversight and Investigations, when we 
had, leading up to a hearing on a company called Molten Metals that was 
associated with two former staffers of the Vice President, news leaks 
to all the newspapers telling us how, really, they thought these people 
were guilty. Then we saw a memo from the majority saying in fact they 
had no evidence, there was no smoking gun, but that this hearing or 
these hearings provided a wonderful opportunity to get news media, to 
bring the news media in and make people look like they are guilty, to 
make these people deny the allegations being brought before them.
  That is not the way this House is supposed to run. That is not the 
way a democracy is supposed to run. We should be able to have hearings; 
we should be able to get to the bottom of these matters; we should have 
television as we have here. But when a witness must be subpoenaed, they 
should have the right to not be on television. They should have the 
right to be able to speak just for the printed record. We should not 
have a repeat of the kind of assassination in the news media that led 
to that individual back in 1957 feeling so outside the system that he 
had to take his own life.
  We have seen recently, and whether it is the Republicans or whether 
it is the Democrats, we should not put up with an abuse of this system. 
A person being subpoenaed before the House of Representatives should be 
able to say whether or not they want to appear on television before the 
entire world, whether they want to be on trial before the entire world 
or whether they want to speak for the legislative record.
  Mr. GOSS. Mr. Speaker, I yield such time as he may consume to the 
distinguished gentleman from New York [Mr. Solomon], the chairman of 
the Committee on Rules.
  Mr. SOLOMON. Mr. Speaker, I will be brief.
  As my colleagues know, the rule we are proposing to repeal allows a 
subpoenaed witness to arbitrarily, for no reason at all, to demand that 
TV cameras and radios be turned off, still photography cease, and 
radios again be turned off while the witness is testifying before a 
committee.
  Now, as my colleagues know, I can recall when I was in the minority 
on the Foreign Affairs Committee, and the committee called Colonel 
Oliver North before us, and we had some majority members who got up and 
they derided and demeaned Ollie North.
  And do my colleagues know what happened? I stood up as a minority 
member, and I told those Members that they were rude, they were crude, 
they were arrogant, and they could not carry Ollie North's water. Do my 
colleagues know what happened? They ended up looking bad on television 
back home before their constituents, and they shut up.
  And any Member has that right. We used to do the same thing with a 
very arrogant subcommittee chairman who used to deride and demean 
members of the Reagan administration. Do my colleagues know what? We 
did the same thing to him. Do my colleagues know what happened after a 
little while? He became respectful. When he called witnesses, he 
treated them with a little respect.
  That is all we have to do, stand up for the rights of these people.
  Now by repealing this rule that lets subpoenaed witnesses arbitrarily 
force out TV and radio so that the American people cannot see them, my 
colleagues know they have a right to see those people. Mr. Speaker, if 
Members vote to repeal this antisunshine rule, we will then have rules 
identical to the Senate.
  Now think about this. For the last 60 years, the Senate will have, or 
we will have the exact same rules as the Senate. I have never once 
watched anyone derided, defamed, or demeaned over in the Senate. Our 
rules would then end up exactly the same.
  Members should know that if they come over here and they vote no on 
this rule, they are turning off the TV coverage to their constituents. 
If they vote yes, they are voting to leave that TV on so that they 
could see what we are doing down here.
  Mr. Speaker, I am going to advise my colleagues to get over here and 
vote yes on this.
  Mr. Speaker, I thank the gentleman from Sanibel, Florida for yielding 
to me to support a measure which will provide for more sunshine in 
committee proceedings, and will enhance public interest and education 
in Congress.
  In several high-profile congressional investigations in recent years 
certain witnesses, subpoenaed to appear before House committees, have 
invoked a little-known House rule which denied all media the ability to 
fully report on those proceedings.
  This House rule allows a subpoenaed witness to arbitrarily demand 
that TV cameras be turned off, still photography cease, and radio 
coverage end as well, while the witness is testifying before the 
committee.
  The assertion of this right before several committees since the late 
1980's have given many Members--on both sides of the aisle--firsthand 
experience with the rule.
  Several Members who are very active in their committee work have 
found the rule frustrating and have approached me on the House floor to 
discuss it.
  Congressional hearings serve an important educational role in our 
system of government. Opponents of this rule change will rightly point 
out that federal courts are not televised.
  Congressional investigative hearings serve a completely different 
constitutional purpose--oversight of the nation's laws, educating the 
public about the activities of their government, and ultimately, a 
legislative function.
  Before we can properly make new laws, we must fully understand the 
functioning of current laws.
  Mr. Speaker, the sweeping changes in electronic communications, and 
the vast number and scope of news media outlets available to cover 
government events, has also led Members to wonder if this rule may be 
archaic.
  The Chairman of the Executive Committee of the Radio-Television 
Correspondents' Galleries, Mr. Vic Ratner, wrote to the Rules Committee 
for the second year in a row requesting that the Committee repeal this 
House rule.
  This rule, the Radio-TV Correspondents' rightly argue, unfairly 
discriminates against the electronic media.
  The print press, when this rule is invoked, are allowed to use the 
tools of their trade--pad and pen--while cameras and mikes are switched 
off.
  The Rules Committee found the practical concerns of Members and the 
arguments of the Radio-TV Correspondents' be well-founded.
  By repealing this rule, House committees, in their infinite wisdom, 
can consider whether to close a meeting and expel all press and public, 
if an assertion is made that testimony may tend to defame, degrade, or 
incriminate any person.
  Witnesses enjoy several important protections, which require 
committee votes, under current House rules. (clauses 2 (g) and (k) of 
rule 11). These rules will remain in effect, if we proceed to repeal 
this arbitrary no-cameras rule.
  House Members may be so accustomed to TV coverage of the House floor 
and its committees that they may forget that for many years the 
practice of the House was to not allow television broadcast of 
committee proceedings.
  It was not until 1970 that the House permitted committees the ability 
to adopt rules allowing TV broadcast coverage, if a committee voted to 
do so.
  In 1995, as part of the historic Republican opening day reform 
package, we revised this rule to allow more sunshine to illuminate 
committee proceedings for the public.
  Under the new House rule, any meeting or hearing must be open to all 
media coverage if the session is open to the public, which in fact most 
hearings and meetings are.
  I consider House Resolution 301 a natural follow-through to those 
sunshine reforms adopted at the beginning of the 104th Congress.
  I believe the House can, from time to time, adapt itself to new 
technology and at the same time assist in the education of the public 
about Congress.
  We should keep in mind that an informed citizenry is critical to the 
success of our Republic.
  With that, Mr. Speaker, I yield back the balance of my time.
  Mr. MOAKLEY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I still say the people's right of privacy is probably a 
little more important than the people's right

[[Page H10631]]

to know, and individuals where people are mandated to come before a 
committee without any protection, they cannot rebut the committee. As 
chairman or as Member, they cannot cross-examine them. A person is just 
helpless, and a hostile Congressman could really make an upstanding 
citizen look like a criminal.
  Mr. Speaker, I yield 2 minutes to the gentleman from Rhode Island 
[Mr. Weygand].
  (Mr. WEYGAND asked and was given permission to revise and extend his 
remarks.)
  Mr. WEYGAND. Mr. Speaker, I thank the gentleman for yielding me such 
time.
  Mr. Speaker, I come before my colleagues in opposition to this rule, 
and I will give them just a few very quick examples of why we should 
not be passing that.
  I listened very intently to what the gentleman from New York [Mr. 
Solomon] said. He is very right in terms of allowing the people back 
home to see what we do. Very important, because if we misbehave, they 
can see that.
  But last week before the Committee on Banking and Financial Services, 
we had a very important witness. She came in and testified with regard 
to drug cartel money and how it is laundered through Colombian banks, 
United States businesses and United States banks, and we as members of 
the Committee on Banking and Financial Services were very, very 
attentive to her situation and what she was saying. She provided us 
with very important information.
  But the fact of the matter is, she also was part of that laundering 
of drug money. She came before us even though there were threats on her 
life. She came before us because she wanted to provide this information 
to us.
  In order to protect this witness who came without subpoena before the 
Committee on Banking and Financial Services, she was screened off from 
the press, although they could hear her testimony, no TV cameras, no 
photographs, and her voice was disguised.
  Now, if she were to be subpoenaed before our committee, she would not 
have the right to say no TV cameras, no photographs. Only we, as 
Members of Congress, or the chairman could say that.

                              {time}  1945

  That is wrong, because clearly this witness was providing valuable 
information to us as Members of Congress, and we would have been 
putting her life in danger. This rule would remove that. This is wrong.
  For those people who think we, in fact, have to have cameras all the 
time, I would say to them this is not the land of Shirley Temple or the 
Wizard of Oz. This is not Hollywood, this is the U.S. Congress. Respect 
people's rights. Get the information and testimony you need, and do 
not, do not, take away the personal rights, and particularly in a case 
like this, potentially their life.
  Mr. GOSS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I would make a few points. I have listened very closely 
to the debate here and up in the Committee on Rules, and there has been 
a good deal of Member interest. We have talked about this in our 
conference and with a lot of Members who have asked questions about 
this. I think that we are getting to the point where we are beginning 
to understand here that the truth is what matters; the truth of what 
actually happens is what is important.
  I guess I could find some instances where people have been savaged in 
print and saved by TV. I do not know how many instances there are, but 
I suspect that Ollie North might think that he was such a person, and 
probably many other people would think that.
  It is very hard to explain away nervousness for people who speak 
before cameras. Some people are more accustomed to it than others. Some 
people take it more naturally than others. But the fact is nervousness 
as you are speaking tends to evoke sympathy. People viewing would say, 
gee, if there is a problem there, it is understood. If it is so 
egregious, there is a way for the committee to deal with that.
  I think you can go on with the statement about mistakes show up on 
TV, and they do show up. Congress occasionally makes mistakes, and when 
they show up on TV, it is useful for people to see we make mistakes, 
learn from them, and go on to the next thing, rather than hide the 
mistakes and sweep them under the rug, which I think the American 
people are truly tired of. I think when a panel beats up on a witness, 
and I can think of a few cases where that happens, there is generally 
sympathy in this country for the witness, and less than sympathy for 
the panel.
  So I think as you go through this and take a look at all of the 
examples that have been suggested to us, we are talking about a problem 
that does not really exist. We are not changing the Constitution, we 
are not changing the laws of the land, and we are not going into some 
new horizon. We are doing what the other body does.
  I note that all of the media support this resolution, all of the 
media, the print media, the broadcast media, the TV media. Everybody 
wants to be sure that the media can operate as the watchdog that we 
expect the media to be, without the spin doctors, without the filters, 
the raw truth of what actually is happening there.
  I have great faith that the people in our country, the people who 
elect us, the people who hire us and fire us in the people's House, are 
smart enough and capable enough to discern what is right and what is 
not right. I think they understand grandstanding. I think they 
understand a charade when they see it. I think they understand spin 
when they see it. I think it is important to see it, and that is why we 
are moving the legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MOAKLEY. Mr. Speaker, I yield the balance of my time to the 
gentleman from Michigan [Mr. Dingell], a gentleman who has conducted 
more hearings than anybody in this House and has been more successful 
in his hearings probably than anybody else in the House.
  The SPEAKER pro tempore (Mr. Snowbarger). The gentleman from Michigan 
is recognized for 3\1/2\ minutes.
  (Mr. DINGELL asked and was given permission to revise and extend his 
remarks.)
  Mr. DINGELL. Mr. Speaker, I thank my good friend for yielding me 
time.
  Mr. Speaker, as my good friend and colleague, the ranking minority 
member of the Committee on Rules, has observed, I have conducted 
probably more hearings of an investigative character than anybody in 
this body. Never have I been inhibited, nor has our committee ever been 
inhibited, by the presence of the rule before us. We were always able 
to get the facts out, and the media, regardless of whether they were 
print or electronic, were always able to get the story back to the 
American people about what was going on and what the witness said.
  The whole verbatim testimony can be made available through any of the 
media. The only thing is that we preserve some small shred of dignity 
to the individual who appears before a congressional committee to say, 
I do not want to be photographed here by cameras from the stills or 
movies or other kinds of electronic cameras, and to be protected in 
that right. He can be photographed going in; he can be photographed 
going out. All the media is present in the room and can take down his 
testimony verbatim and publish it the following day or that same day. 
They can put it on the 5, 6, 10 or 11 o'clock news. The witnesses who 
appear before him and after him can be photographed in full.
  I do not think that this is too much to ask, because what it is 
really about here is decency. Never, as I mentioned, have we been 
thwarted in getting the full facts.
  This rule that is now in place was put in place at the suggestion of 
a Republican Member in the House, the future leader in the Senate, Hugh 
Scott, when the Republicans last controlled this body.
  It was because of the unseemly spectacle of Congressional 
investigations, where Members of Congress abused and bullied and 
harassed witnesses, and when irresponsible charges were made about the 
loyalty of decent and law-abiding citizens, and when the reputations of 
ordinary Americans were destroyed.
  We are not talking about, I remind you, about getting the full facts. 
The

[[Page H10632]]

full facts will come out. The media will have full access to the facts 
and full participation in the process. The only thing is some small 
shred of decency will be afforded to the individuals. Hearsay testimony 
is permitted in investigations. Members of Congress can say or do 
anything in the course of a hearing, regardless of how false, 
slanderous, defamatory or outrageous it might happen to be.
  It should be noted that the whole matter finally came to an end when 
the counsel for the Army appeared before a Senate committee, Mr. Joseph 
Welch, and he had to say it. Senator McCarthy had made one more 
outrageous accusation, at this time about a member of Welch's law firm, 
and Welch looked the Senator in the eye and he simply said, ``Have you 
no decency, sir?''
  I think that that is really the question. It is not about rights of 
the public to know. The public will know. The public will have the 
story reported to them in full, in extraordinary detail. The public 
will understand. The individual will have some small shred of decency 
afforded to him. The witnesses before him and after him will be heard. 
The public can make an intelligent choice.
  Never, never, never in all the 14 years that I have run investigative 
committees have we in any way been inhibited from getting the story to 
the American people. They can know, they should know, and they will 
know, under the current rules. This is unnecessary.
  Mr. Speaker, we are here tonight debating a change of the House Rules 
because the Rules Committee and members of the Government Reform and 
Oversight Committee want to repeal a rule protecting the right of a 
witness subpoenaed to appear before Congress. The current rule allows a 
subpoenaed witness to request that cameras and broadcast microphones be 
turned off. All members of the press, both broadcast and print, may 
remain at the hearing and report on the hearing, much like they would 
report on a trial that has no TV cameras present. The hasty repeal of a 
rule that dates back to 1970, and has its genesis in the post-McCarthy 
era, is wrong.
  I have probably conducted more investigative hearings than any 
current Member of Congress, and I can state categorically that this 
rule is rarely invoked and has never thwarted a full investigation into 
the truth, nor a full reporting of the facts.
  I know of no reason why this rule is being rushed to the floor. 
Television media are not disadvantaged by this rule. Reporters may stay 
in the room and report exactly what occurred in the hearing. They may 
report the testimony verbatim, just as print journalists may. Yes, we 
do give the right to turn off the camera to the witness who is forced 
against his or her will to be here, but there is a good reason.
  The rule protecting a witness from unwanted cameras was first 
proposed by then-Representative and future Senate Republican Leader 
Hugh Scott in 1954 when Republicans last controlled the House. At that 
time, the unseemly spectacle of Senator Joseph McCarthy calling in 
dozens of American citizens, some famous and some not, before a 
national television audience to defend their reputations was fresh in 
the public's mind. Three years later, in 1957, a young researcher 
called before the House Un-American Activities Committee committed 
suicide, because, as he wrote in his suicide note, he had a ``fierce 
resentment of being televised.''
  On one occasion at a hearing I conducted, a witness, Michael Milken, 
requested that the cameras be turned off. I immediately honored the 
request. He was represented by the late Edward Bennett Williams, my 
former law professor, and a man I deeply respected. He had explained 
the reasoning behind this witness right in his 1962 book, One Man's 
Freedom: ``The average person is extremely nervous when he appears 
before any court or committee. It is unfair to ask him to appear before 
the entire country as well.''

  We do not need a return to the McCarthy excesses of the 1950's, nor a 
repeat of the tragedy of 1957. Along with all Americans I want openness 
in government, but the American people are also sensitive to the 
possible consequences of an unrestrained media force on individuals who 
do not want this attention.
  A witness who is forced to appear before a committee of Congress has 
very few rights. He may not confront his accusers through cross-
examination. Objections to questions may be easily overruled by the 
chairman. Hearsay testimony is permitted. Under the Speech and Debate 
clause of the Constitution, Members of Congress may say anything during 
the course of a hearing, even if it is false, slanderous, or 
defamatory.
  The purpose of the rule that is being repealed is to show that the 
Congress does, in fact, respect the individual. It shows that whether 
or not the Constitution provides a right to some form of privacy, that 
the Congress respects the right of an individual not to be improperly 
harassed.
  There was a time in our not too distant past when certain Congressmen 
and Senators forgot about the importance of showing respect to the 
individual. We should not forget those terrible McCarthy hearings, 
which brought such disrespect upon the Congress. The American people 
intuitively knew what was taking place was wrong, but it took the 
eloquent words of the counsel to the Senate committee, Joseph Welch to 
say it. When Senator McCarthy had made yet one more accusation, this 
time about a member of Welch's law firm, Welch look the Senator in the 
eye, and simply said, ``Have you no decency, sir at long last?''
  That is what this rule is about--simple decency. It is a recognition 
that whether the Congress has nearly limitless power to investigate, 
simple rules of decency must apply. Maybe the individual is afraid of 
cameras; maybe the individual has a disability; maybe the individual 
has a religious objection to cameras. It matters not what the reason 
is. The existing rule is a statement that this House will conduct 
itself with a respect of the individual. It is the one rule that a 
single individual may invoke. No majority of the committee can override 
this rule.
  In the end, the benefits of the rule will go not just to the 
individual, but to the Congress itself, because if we are not seen as 
fair, as respectful, and decent, we only hurt the respect for this 
institution.
  The Congress has already voted that the investigative phase of 
allegations of misconduct by Members before the Committee on Standards 
of Official Conduct will be conducted without the cameras running. 
Should not every American have the same right as a Member of Congress?
  Vote no on this dangerous return to our past.
  Mr. GOSS. Mr. Speaker, I yield 2 minutes to the gentleman from Texas 
[Mr. Barton].
  Mr. BARTON of Texas. I thank the gentleman from Florida for yielding 
me time.
  Mr. Speaker, I am the chairman of the Subcommittee on Oversight and 
Investigations of the Committee on Commerce. We have not issued a 
subpoena in the 3 years that we have been in the majority on that 
subcommittee. I would like to just make a couple of points.
  Number one, whether we have this rule change or not, the Congress 
gives the power to ultimately decide whether to televise or not 
televise to the television networks. They have the right under the 
first amendment to choose to televise or not to televise. We are not 
changing that.
  Number two, any witnesses that are not subpoenaed do not have the 
right to revoke television coverage. If they choose to appear 
voluntarily before our committee, and the networks choose to televise 
that particular hearing, then it is televised.
  Number three, if we grant this rule change, the committee still has 
the authority to vote to prohibit cameras if there is a sensitivity 
involved in the issue that the majority of that committee on a 
bipartisan basis feels that it should not be televised.
  So I would hope that we would vote this rule change. We should not 
give a witness the right to prevent the American people from knowing 
what it is that a witness is or is not going to say when it is a 
national issue and an issue of pressing public policy.
  Again, I would reiterate the Subcommittee on Oversight and 
Investigations of the Committee on Commerce has yet to issue a subpoena 
to any witness in the 3 years we have been in the majority. We ask our 
witnesses to appear voluntarily, and I would say 95 percent of the time 
the witnesses do appear.
  So I hope we vote for the rule change and let the American people 
know what it is that is going on before the committees of Congress.
  Mr. GOSS. Mr. Speaker, I yield the balance of my time to the 
gentleman from Georgia [Mr. Gingrich], the Speaker of the House.
  The SPEAKER pro tempore (Mr. Calvert). The gentleman from Georgia is 
recognized for 8 minutes.
  Mr. GINGRICH. Mr. Speaker, I do appreciate very much the gentleman 
from Florida yielding me this time. I will not use it all.
  I wanted to rise on this topic because I think it is a very, very 
important question for the House, and one that every Member of the 
House should weigh in their own conscience.

[[Page H10633]]

  I came to the U.S. House as a freshman in 1978, in the election of 
1978. I was sworn in in January of 1979, and the House was dark. Only 
in April of that year was television permitted in the House, and at the 
time there were many cries that it would permanently ruin the process. 
The Senate at that time refused to be televised.
  Over a period of years, several things happened. We live in an 
electronic age. We live in an age where people use the Internet, they 
use television, they use radio, they surf the Net, they surf channels. 
And in that electronic age, Senators began to realize that, all of a 
sudden, the coverage which had historically been dominated by the 
Senate was shifting to the House because it was a more immediate, a 
more real, a more vivid institution.
  I think today if someone were to come to the floor and say, let's 
repeal televising the House, let's close down C-SPAN, let's make it 
impossible to take televised debate off the floor of the House, people 
would look at them in wonderment. They would say, how could you think 
of that? Because the modern news is in large part an electronic news. 
It is a process of immediacy that is quite unusual.
  Now we come to the question of committees. What is the purpose of 
holding a committee hearing? It is to learn the truth, to listen to 
opinions, to inform the Members and to inform the public.
  We live in an age where murder trials are televised; we live in an 
age where television is virtually ubiquitous; we live in an age where 
people are pretty aware of and sensitive to the process of television. 
And what is the proposed change here? What is this dramatic, bold new 
breakthrough? It is to adopt the rules which are already in force in 
the Senate. That is right, exactly the same protections that already 
exist in the Senate.
  Now, I have yet to hear any Senator suggest that the Senate should 
quit televising hearings. I have not heard a single Democrat or 
Republican suggest that there is anything wrong with any hearing on any 
topic, as long as it does not involve national security.
  If it involves defamation of a person, if it involves something which 
could affect their livelihood, the committee in the House or the 
committee in the Senate has the right to close the hearing for good 
reason. If it involves national security, the committee has the right 
to exclude the media for good reason.
  But the normal, standard set in the Senate is that a hearing is a 
hearing, and that this is the people's Congress, and, therefore, the 
people have a right to access; and in the modern era the most effective 
method of access is electronics, which means radio and television.
  Now, what about the witnesses' rights? They are not changed at all. 
The witness arrives, accompanied by an attorney. The witness has all of 
the legal protections given them. The witness has every right to refuse 
to testify. The witness has every right to seek protection of the fifth 
amendment. The witness has every right to clarify. None of those 
protections for the witness are changed.
  Our friends would suggest that there is somehow a magic difference 
between the same witness with the same attorney in the same hearing 
answering the same question, having it recorded by a newspaper in print 
and having it broadcast by radio or television.

                              {time}  2000

  But I think that is to miss the entire revolution of our generation.
  What is making the world different is the ability to have an 
electronic relationship that is real and vivid. At a time when the O.J. 
Simpson trial was available to every citizen; at a time when city 
councils are open to camera in Smyrna, Georgia; for example, every 
Monday night is city council night in Smyrna, and every citizen in 
Smyrna can watch, unless they are discussing a personnel decision that 
is sensitive. But to suggest that we should now retain a 1957 rule, at 
a time, by the way, when there was no television in the House; in Sam 
Rayburn's day, they did not have televised House proceedings. But now, 
in the modern era, I think it is wrong.
  I would just pose this before any of my friends in the Democratic 
Party vote ``no.'' I do not believe one can find a single Democratic 
Senator who would seek to go back and bar cameras and microphones from 
a Senate hearing. I do not believe one can find a single Member who has 
served in the Senate who would seek to go back and bar television and 
radio from a hearing. If, in the last 40 years, it has done no damage 
to witnesses in the Senate, what is it we are afraid of that it would 
do in the House?
  The time has come to open the committees, just as when I was a 
freshman we opened up the House Chamber. Just as C-SPAN was good for 
the House Chamber, I believe the same coverage in the committees will 
be good, and I urge every Member to vote for this change, to bring the 
full light of complete news media coverage into the hearings of the 
United States House.
  Mr. GOSS. Mr. Speaker, I move the previous question on the 
resolution.
  The previous question was ordered.
  The SPEAKER pro tempore (Mr. Calvert). The question is on the 
resolution.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. MOAKLEY. Mr. Speaker, on that I demand the yeas and yeas.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I, further 
proceedings on this question are postponed.

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