[Congressional Record Volume 149, Number 54 (Thursday, April 3, 2003)]
[Senate]
[Pages S4843-S4856]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR:
  S. 790. A bill to authorize appropriations for the Department of 
State for fiscal years 2004 and 2005, to authorize appropriations under 
the Arms Export Control Act and the Foreign Assistance Act of 1961 for 
security assistance for fiscal years 2004 and 2005, and for other 
purposes; to the Committee on Foreign Relations.
  Mr. LUGAR. Mr. President, by request, I introduce for appropriate 
reference a bill entitled the Foreign Relations Authorization Act, 
Fiscal Years 2004 and 2005.
  This proposed legislation has been requested by the Department of 
State and I am introducing it in order that there may be a specific 
bill to which Members of the Senate and the public may direct their 
attention and comments.
  I reserve my right to support or oppose this bill, as well as to make 
any suggested amendments to it, when the matter is considered by the 
Committee on Foreign Relations.
  I ask unanimous consent that the bill be printed in the Record, 
together with a section-by-section analysis of the bill and the letter 
from the Assistant Secretary of State for Legislative Affairs dated 
April 2, 2003.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Foreign Relations 
     Authorization Act, Fiscal Years 2004 and 2005.''

     SEC. 2. ORGANIZATION OF ACT INTO TITLES; TABLE OF CONTENTS.

       (a) Titles.--This Act is organized into eight Titles as 
     follows:
TITLE I--AUTHORIZATION OF APPROPRIATIONS
TITLE II--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES
TITLE III--ORGANIZATION AND PERSONNEL OF THE DEPARTMENT OF STATE
TITLE IV--INTERNATIONAL ORGANIZATIONS
TITLE V--SUPPORTING THE WAR ON TERRORISM
TITLE VI--SECURITY ASSISTANCE
TITLE VII--INTERNATIONAL PARENTAL CHILD ABDUCTION PREVENTION ACT OF 
              2003
TITLE VIII--MISCELLANEOUS PROVISIONS

            Subtitle A--Streamlining Reporting Requirements

                       Subtitle B--Other Matters

       (b) The table of contents for this Act is as follows:
Sec. 1. Short Title
Sec. 2. Organization of Act into Titles; Table of Contents

                TITLE I--AUTHORIZATION OF APPROPRIATIONS

Sec. 101. Administration of Foreign Affairs
Sec. 102. International Organizations and Conferences
Sec. 103. International Commissions
Sec. 104. Migration and Refugee Assistance
Sec. 105. Centers and Foundations

        TITLE II--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES

Sec. 201. Reimbursement Rate for Airlift Services Provided to the 
              Department of State
Sec. 202. Grant Authority to Promote Biotechnology
Sec. 203. Immediate Response Facilities
Sec. 204. Mine Action Programs Grant Authority
Sec. 205. The U.S. Diplomacy Center
Sec. 206. Public Affairs Grant Authority

    TITLE III--ORGANIZATION AND PERSONNEL OF THE DEPARTMENT OF STATE

Sec. 301. Cost of Living Allowances
Sec. 302. Waiver of Annuity Limitations on Re-Employed Foreign Service 
              Annuitants
Sec. 303. Fellowship of Hope Program
Sec. 304. Claims for Lost Pay
Sec. 305. Suspension or Enforced Leave
Sec. 306. Home Leave
Sec. 307. Ombudsman for the Department of State
Sec. 308. Repeal of Recertification Requirement for Senior Foreign 
              Service

                 TITLE IV--INTERNATIONAL ORGANIZATIONS

Sec. 401. Raising the Cap on Peacekeeping Contributions

                TITLE V--SUPPORTING THE WAR ON TERRORISM

Sec. 501. Designation of Foreign Terrorist Organizations

                     TITLE VI--SECURITY ASSISTANCE

Sec. 601. Restrictions on Economic Support Funds for Lebanon
Sec. 602. Thresholds for Congressional Notification of FMS and 
              Commercial Arms Transfers
Sec. 603. Bilateral Agreement Requirements Relating to Licensing of 
              Defense Exports
Sec. 604. Authorization of Appropriations--Foreign Military Financing, 
              International Military Education and Training, and 
              Nonproliferation, Anti-Terrorism, Demining, and Related 
              Programs
Sec. 605. Cooperative Threat Reduction Permanent Waiver
Sec. 606. Congressional Notification for Comprehensive Defense Export 
              Authorizations
Sec. 607. Expansion of Authorities for Loan of Material, Supplies, and 
              Equipment for Research and Development Purposes
Sec. 608. Establish Dollar Threshold for Congressional Notification of 
              Excess Defense Articles that are Significant Military 
              Equipment
Sec. 609. Waiver of Net Proceeds Resulting from Disposal of U.S. 
              Defense Articles Provided to a Foreign Country on a Grant 
              Basis
Sec. 610. Transfer of Certain Obsolete or Surplus Defense Articles in 
              the War Reserve Stockpiles for Allies to Israel
Sec. 611. Additions to U.S. War Reserve Stockpiles for Allies
Sec. 612. Provision of Cataloging Data and Services
Sec. 613. Provision to Exercise Waivers with Respect to Pakistan

  TITLE VII--INTERNATIONAL PARENTAL CHILD ABDUCTION PREVENTION ACT OF 
                                  2003

Sec. 701. Short Title
Sec. 702. Inadmissibility of Aliens Supporting International Child 
              Abductors and Relatives of Such Abductors

                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Reports on Benchmarks for Bosnia
Sec. 802. Report Concerning the German Foundation ``Remembrance, 
              Responsibility, and the Future''
Sec. 803. Report on Progress in Cyprus
Sec. 804. Reports on Activities in Colombia
Sec. 805. Report on Extradition of Narcotics Traffickers
Sec. 806. Report on Terrorist Activity in Which United States Citizens 
              Were Killed and Related Matters
Sec. 807. Report and Waiver Regarding Embassy in Jerusalem
Sec. 808. Report on Progress toward Regional Nonproliferation
Sec. 809. Report on Annual Estimate and Justification for Sales Program
Sec. 810. Report on Foreign Military Training
Sec. 811. Report on Human Rights Violations by IMET Participants
Sec. 812. Report on Development of the European Security and Defense 
              Identity (ESDI) Within the NATO Alliance
Sec. 813. Report on Transfers of Military Sensitive Technology to 
              Countries and Entities of Concern
Sec. 814. Nuclear Reprocessing Transfer Waiver
Sec. 815. Complex Foreign Contingencies

                TITLE I--AUTHORIZATION OF APPROPRIATIONS

     SEC. 101. ADMINISTRATION OF FOREIGN AFFAIRS.

       The following amounts are authorized to be appropriated for 
     the Department of State under ``Administration of Foreign 
     Affairs'' to carry out the authorities, functions, duties, 
     and responsibilities in the conduct of foreign affairs of the 
     United States and for other purposes authorized by law:

[[Page S4844]]

       (1) Diplomatic and consular programs.--For ``Diplomatic and 
     Consular Programs'' of the Department of State $4,163,544,000 
     for the fiscal year 2004, and such sums as may be necessary 
     for the fiscal year 2005.
       (A) Worldwide security upgrades.--Of the amounts authorized 
     to be appropriated by subparagraph (1), $646,701,000 for the 
     fiscal year 2004, and such sums as may be necessary for the 
     fiscal year 2005 are authorized to be appropriated only for 
     worldwide security upgrades.
       (2) Capital investment fund.--For ``Capital Investment 
     Fund'' of the Department of State, $157,000,000 for the 
     fiscal year 2004, and such sums as may be necessary for the 
     fiscal year 2005.
       (3) Embassy security, construction and maintenance.--For 
     ``Embassy Security, Construction and Maintenance,'' 
     $1,514,400,000 for the fiscal year 2004, and such sums as may 
     be necessary for fiscal year 2005.
       (4) Educational and cultural exchange programs.--For 
     ``Educational and Cultural Exchange Programs,'' $345,346,000 
     for the fiscal year 2004, and such sums as may be necessary 
     for fiscal year 2005.
       (5) Representation allowances.--For ``Representation 
     Allowances,'' $9,000,000 for the fiscal year 2004, and such 
     sums as may be necessary for fiscal year 2005.
       (6) Protection of foreign missions and officials.--For 
     ``Protection of Foreign Missions and Officials,'' $10,000,000 
     for the fiscal year 2004 and such sums as may be necessary 
     for the fiscal year 2005.
       (7) Emergencies in the diplomatic and consular service.--
     For ``Emergencies in the Diplomatic and Consular Service,'' 
     $1,000,000 for the fiscal year 2004, and such sums as may be 
     necessary for the fiscal year 2005.
       (8) Repatriation loans.--For ``Repatriation Loans,'' 
     $1,219,000 for the fiscal year 2004, and such sums as may be 
     necessary for the fiscal year 2005.
       (9) Payment to the american institute in taiwan.--For 
     ``Payment to the American Institute in Taiwan,'' $19,773,000 
     for the fiscal year 2004, and such sums as may be necessary 
     for fiscal year 2005.
       (10) Office of the inspector general.--For ``Office of the 
     Inspector General,'' $31,703,000 for the fiscal year 2004, 
     and such sums as may be necessary for the fiscal year 2005.

     SEC. 102. INTERNATIONAL ORGANIZATIONS AND CONFERENCES.

       (a) Assessed Contributions To International 
     Organizations.--There are authorized to be appropriated for 
     ``Contributions to International Organizations,'' 
     $1,010,463,000 for the fiscal year 2004 and such sums as may 
     be necessary for the fiscal year 2005, for the Department of 
     State to carry out the authorities, functions, duties, and 
     responsibilities in the conduct of the foreign affairs of the 
     United States with respect to international organizations and 
     to carry out other authorities in law consistent with such 
     purposes.
       (b) Contributions For International Peacekeeping 
     Activities.--There are authorized to be appropriated for 
     ``Contributions for International Peacekeeping Activities,'' 
     $550,200,000 for the fiscal year 2004, and such sums as may 
     be necessary for the fiscal year 2005, for the Department of 
     State to carry out the authorities, functions, duties, and 
     responsibilities of the United States with respect to 
     international peacekeeping activities and to carry out other 
     authorities in law consistent with such purposes. Funds 
     appropriated pursuant to this paragraph are authorized to be 
     available until expended.
       (c) Foreign Currency Exchange Rates.--In addition to 
     amounts authorized to be appropriated by subsection 
     (a), there are authorized to be appropriated such sums as 
     may be necessary for each of the fiscal years 2004 and 
     2005 to offset adverse fluctuations in foreign currency 
     exchange rates. Amounts appropriated under this subsection 
     shall be available for obligation and expenditure only to 
     the extent that the Director of the Office of Management 
     and Budget determines and certifies to Congress that such 
     amounts are necessary due to such fluctuations.

     SEC. 103. INTERNATIONAL COMMISSIONS.

       The following amounts are authorized to be appropriated 
     under ``International Commissions'' for the Department of 
     State to carry out the authorities, functions, duties, and 
     responsibilities in the conduct of the foreign affairs of the 
     United States and for other purposes authorized by law:
       (a) International Boundary and Water Commission, United 
     States and Mexico.--For ``International Boundary and Water 
     Commission, United States and Mexico''--
       (1) for ``Salaries and Expenses,'' $31,562,000 for the 
     fiscal year 2004, and such sums as may be necessary for the 
     fiscal year 2005; and
       (2) for ``Construction,'' $8,901,000 for the fiscal year 
     2004, and such sums as may be necessary for the fiscal year 
     2005;
       (b) International Boundary Commission, United States and 
     Canada.--For ``International Boundary Commission, United 
     States and Canada,'' $1,261,000 for the fiscal year 2004 and 
     such sums as may be necessary for the fiscal year 2005.
       (c) International Joint Commission.--For ``International 
     Joint Commission,'' $7,810,000 for the fiscal year 2004 and 
     such sums as may be necessary for the fiscal year 2005.
       (d) International Fisheries Commissions.--For 
     ``International Fisheries Commissions,'' $20,043,000 for the 
     fiscal year 2004 and such sums as may be necessary for the 
     fiscal year 2005.

     SEC. 104. MIGRATION AND REFUGEE ASSISTANCE.

       There are authorized to be appropriated for ``Migration and 
     Refugee Assistance'' for authorized activities $760,197,000 
     for the fiscal year 2004 and such sums as may be necessary 
     for the fiscal year 2005.

     SEC. 105. CENTERS AND FOUNDATIONS.

       (a) Asia Foundation.--There are authorized to be 
     appropriated for ``The Asia Foundation'' for authorized 
     activities, $9,250,000 for the fiscal year 2004 and such sums 
     as may be necessary for the fiscal year 2005.
       (b) National Endowment for Democracy.--There are authorized 
     to be appropriated for the ``National Endowment for 
     Democracy'' for authorized activities, $36,000,000 for the 
     fiscal year 2004 and such sums as may be necessary for the 
     fiscal year 2005.
       (c) Center for Cultural and Technical Interchange Between 
     East and West.--There are authorized to be appropriated for 
     the ``Center for Cultural and Technical Interchange Between 
     East and West'' for authorized activities, $14,280,000 for 
     the fiscal year 2004 and such sums as may be necessary for 
     the fiscal year 2005.

        TITLE II--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES

     SEC. 201. REIMBURSEMENT RATE FOR AIRLIFT SERVICES PROVIDED TO 
                   THE DEPARTMENT OF STATE.

       Section 2642(a) of Title 10 (10 U.S.C. 2642(a)) is amended 
     by inserting ``or the Department of State'' after ``Central 
     Intelligence Agency''.

     SEC. 202. GRANT AUTHORITY TO PROMOTE BIOTECHNOLOGY.

     The Secretary of State is authorized to support, by grants, 
     cooperative agreements or contract, outreach and public 
     diplomacy activities regarding the benefits of agricultural 
     biotechnology, science-based regulatory systems, and the 
     application of the technology for trade and development. 
     Except as otherwise specifically authorized, the total amount 
     of grants made in any one fiscal year pursuant to this 
     authority shall not exceed $500,000.

     SEC. 203. IMMEDIATE RESPONSE FACILITIES.

       (a) Section 604(b) of the Secure Embassy Construction and 
     Counterterrorism Act of 1999 (P.L. 106-113, 22 U.S.C. 4865 
     note) is amended by:
       (1) redesignating subsection (b)(1) as ``(b)(1)(A)'' and by 
     redesignating subsection (b)(2) as ``(b)(1)(B)''; and
       (2) by deleting the period after the words ``set forth in 
     section 606'' at the end of subsection (b), and adding the 
     following: ``; or
       ``(2) providing facilities to support immediate response 
     efforts in times of emergency.''
       (b) The Foreign Service Buildings Act of 1926 (P.L. 69-186, 
     22 U.S.C. 292 et seq.) is amended by adding the following new 
     section at the end:
       ``Sec. 13. Of the amounts appropriated to carry out the 
     Foreign Service Buildings Act of 1926 and the Secure Embassy 
     Construction and Counterterrorism Act 10 of 1999, not to 
     exceed $15,000,000 in any fiscal year may be made available 
     to provide immediate response diplomatic facilities through a 
     reprogramming of funds, notwithstanding any advance 
     congressional notification requirements contained in any 
     other law. In the case of any such reprogramming that would 
     otherwise be subject to a requirement of advance 
     congressional notification, notification to 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 
     shall be provided as soon as practicable, but not later than 
     3 days after the obligation or expenditure of such funds and 
     shall contain an explanation of the circumstances requiring 
     the deployment of immediate response facilities.''

     SEC. 204. MINE ACTION PROGRAMS GRANT AUTHORITY.

       The Secretary of State is authorized to support public-
     private partnerships for mine action programs by grant, 
     cooperative agreement, or contract. Except as otherwise 
     specifically authorized, the total amount of grants made in 
     any one fiscal year pursuant to this authority shall not 
     exceed $450,000.

     SEC. 205. THE U.S. DIPLOMACY CENTER.

       Title I of the State Department Basic Authorities Act of 
     1956 (22 U.S.C. 2651a et. seq.) is amended by adding the 
     following new section:

     ``SEC. 59. THE U.S. DIPLOMACY CENTER.

       ``(a) Activities.--
       ``(1) The Secretary of State is authorized to provide--by 
     contract, grant or otherwise--for appropriate museum visitor 
     and educational outreach services, including but not limited 
     to, organizing conference activities, museum shop, and food 
     services, in the public exhibit and related space utilized by 
     the U.S. Diplomacy Center (``USDC'') program.
       ``(2) The Secretary of State may pay all reasonable 
     expenses of conference activities conducted by the USDC, 
     including refreshments and travel of participants.
       ``(3) Any revenues generated under the authority of 
     paragraph (1) for visitor services may be retained and 
     credited to any appropriate Department of State appropriation 
     to recover the costs of operating the USDC.
       ``(b) Disposition of USDC Artifacts and Materials.--
       ``(1) All historic documents, artifacts or other articles 
     permanently acquired by the Department of State and 
     determined by the Secretary of State to be suitable for 
     display in the USDC shall be considered to be the

[[Page S4845]]

     property of the Secretary in his or her official capacity and 
     shall be subject to disposition solely in accordance with 
     this subsection.
       ``(2) Sale or Trade--Whenever the Secretary of State or 
     his/her designee determines that--
       ``(A) any item covered by paragraph (1) no longer serves to 
     further the purposes of the USDC as established in the 
     Collections Management Policy, or
       ``(B) in order to maintain the standards of the collections 
     of the USDC, a better use of that article would be its sale 
     or exchange,

     ``the Secretary may sell the item at fair market value, 
     trade, or transfer it, without regard to the requirements of 
     the Federal Property and Administrative Services Act of 1949. 
     The proceeds of any such sale may be used solely for the 
     advancement of the USDC's mission; in no event shall proceeds 
     be used for anything other than acquisition or direct care of 
     collections.
       ``(3) Loans--The Secretary of State may also lend items 
     covered by paragraph (1), when not needed for use or display 
     in the USDC, to the Smithsonian Institution or a similar 
     institution for repair, study, or exhibition.''
       (c) Except as may be identified subject to reprogramming 
     procedures, the Bureau of Public Affairs may not expend more 
     than $950,000 for fiscal year 2004, and such sums as may be 
     necessary for fiscal year 2005, for the U.S. Diplomacy 
     Center.

     SEC. 206. PUBLIC AFFAIRS GRANT AUTHORITY.

       To the extent that the Secretary of State is otherwise 
     authorized by law to provide for public affairs activities, 
     the Secretary may do so by grant, cooperative agreement, or 
     contract.

    TITLE III--ORGANIZATION AND PERSONNEL OF THE DEPARTMENT OF STATE

     SEC. 301. COST OF LIVING ALLOWANCES.

       Section 5924 of Title 5, United States Code, is amended as 
     follows:
       (a) by revising section (4)(A) to read as follows:
       ``(A) An allowance not to exceed the cost of obtaining such 
     kindergarten, elementary and secondary educational services 
     as are ordinarily provided without charge by the public 
     schools in the United States (including activities required 
     for successful completion of a grade or course and such 
     educational services as are provided by the States under the 
     Individuals with Disabilities Education Act), plus in those 
     cases when adequate schools are not available at the post of 
     the employee, board and room, and periodic transportation 
     between that post and the school chosen by the employee, not 
     to exceed the total cost to the Government of the dependent 
     attending an adequate school in the nearest United States 
     locality where an adequate school is available, without 
     regard to section 3324(a) and (b) of title 31. When travel 
     from school to post is infeasible, travel may be allowed 
     between the school attended and the home of a designated 
     relative or family friend or to join a parent at any 
     location, with the allowable travel expense not to exceed the 
     cost of travel between the school and post. The amount of the 
     allowance granted shall be determined on the basis of the 
     educational facility used.''
       (b) by revising section (4)(B) to read as follows:
       ``(B) The travel expenses of dependents of an employee to 
     and from a secondary, post-secondary or post-baccalaureate 
     educational institution, not to exceed one annual trip each 
     way for each dependent. An allowance payment under 
     subparagraph (A) of this paragraph (4) may not be made for a 
     dependent during the 12 months following his arrival at the 
     selected educational institution under authority contained in 
     this subparagraph (B).'', and
       (c) by inserting a new section 4(C) as follows:
       ``(C) Allowances provided pursuant to subparagraphs (A) and 
     (B) above may include, at the election of the employee and in 
     lieu of transportation thereof, payment or reimbursement of 
     the costs incurred to store the baggage at or in the vicinity 
     of the school during the dependent's annual trip between the 
     school and the employee's duty station, provided that such 
     payment or reimbursement may not exceed the cost that the 
     Government would incur to transport the baggage with the 
     dependent in connection with the annual trip.''

     SEC. 302. WAIVER OF ANNUITY LIMITATIONS ON RE-EMPLOYED 
                   FOREIGN SERVICE ANNUITANTS.

       (a) Section 824(g) of the Foreign Service Act of 1980 (22 
     U.S.C. 4064(g)) is amended to read as follows:
       ``(g) The Secretary may waive the application of paragraphs 
     (a) through (d) of this section, on a case by case basis, for 
     an annuitant re-employed on a temporary basis--
       (i) if, and for so long as, the authority is necessary due 
     to an emergency involving a direct threat to life or property 
     or other unusual circumstances; or
       (ii) in positions for which there is exceptional difficulty 
     in recruiting or retaining a qualified employee.''
       (b) Effective October 1, 2005, section 824(g), as amended 
     by this section, is further amended to read as follows:
       ``(g) The Secretary may waive the application of paragraphs 
     (a) through (d) of this section, on a case by case basis, for 
     an annuitant re-employed on a temporary basis, but only if, 
     and for so long as, the authority is necessary due to an 
     emergency involving a direct threat to life or property or 
     other unusual circumstances.''

     SEC. 303. FELLOWSHIP OF HOPE PROGRAM.

       The Secretary of State is authorized to establish the 
     Fellowship of Hope program under which employees of the 
     governments of designated countries may be assigned to an 
     office of profit or trust in the Department of State and 
     continue to receive salary and other benefits from those 
     governments, in exchange for assignments of a member of the 
     Foreign Service to the governments of the designated foreign 
     countries. The Secretary of State shall administer this 
     program in a manner consistent with the national security and 
     foreign policy interests of the United States, in 
     consultation with the Attorney General and the Director of 
     Central Intelligence.

     SEC. 304. CLAIMS FOR LOST PAY.

       Section 2 of the State Department Basic Authorities Act (22 
     U.S.C. 2669) is amended by adding a new subsection (o) as 
     follows:
       ``(o) make administrative corrections or adjustments to an 
     employee's pay, allowances, or differentials, resulting from 
     mistakes or retroactive personnel actions, as well as provide 
     back pay and other categories of payments under the Back Pay 
     Act as part of the settlement or compromise of administrative 
     claims or grievances filed against the Department.''

     SEC. 305. SUSPENSION OR ENFORCED LEAVE.

       (a) Notwithstanding any other provision of law, and pending 
     final resolution of the matter, the Secretary may suspend a 
     member of the Foreign Service without pay, or place the 
     member on enforced leave without pay,
       (1) where there is an investigation regarding the 
     revocation of an employee's security clearance or a 
     suspension of an employee's security clearance; or
       (2) where there is reasonable cause to believe a member has 
     committed a crime for which a sentence of imprisonment may be 
     imposed and there is a nexus to the efficiency of the 
     Service; or
       (3) for such other cause as will promote the efficiency of 
     the service;
       (b) Any member suspended or placed on enforced leave 
     pursuant to subsection (a) shall be entitled to--
       (1) at least 30 days advance written notice of the specific 
     reasons for such suspension, unless there is reasonable cause 
     to believe the employee has committed a crime for which a 
     sentence of imprisonment may be imposed;
       (2) a reasonable time, not less than seven days, to answer 
     orally and in writing;
       (3) be represented by an attorney or other representative; 
     and
       (4) a final written decision.
       (c) Any member suspended or placed on enforced leave 
     pursuant to this section shall be entitled to grieve such 
     action in accordance with procedures applicable to grievances 
     under chapter 11 of this Act. The review by the Foreign 
     Service Grievance Board with respect to such a grievance 
     shall be limited:

         (1) in the case of an action pursuant to subparagraph

       (a)(1) only to a determination whether the procedures set 
     forth in subsection (b) were followed, and
       (2) in the case of an action pursuant to subparagraph 
     (a)(2), only to a determination of whether the reasonable 
     cause requirements have been fulfilled and whether there is a 
     nexus between the conduct and the efficiency of the Service; 
     and
       (3) in the case of a suspension pursuant to subparagraph 
     (a)(3), only to a determination whether the action promotes 
     the efficiency of the service.
       (4) In no case regarding an appeal pursuant to this section 
     may the Foreign Service Grievance Board order prescriptive 
     relief.

     SEC. 306. HOME LEAVE.

       (a) Section 901(6) of the Foreign Service Act (22 U.S.C. 
     4081(6)) is amended by striking ``unbroken by home leave'' 
     wherever that phrase occurs.
       (b) Section 903(a) of the Foreign Service Act (22 U.S.C. 
     4083) is amended by striking ``18 months'' and inserting ``12 
     months.''

     SEC. 307. OMBUDSMAN FOR THE DEPARTMENT OF STATE.

       (a) There is established in the Office of the Secretary of 
     State the position of Ombudsman. The Ombudsman shall report 
     directly to the Secretary of State.
       (b) At the discretion of the Secretary of State, the 
     Ombudsman shall participate in meetings regarding the 
     management of the Department in order to assure that all 
     employees may contribute to the achievement of the 
     Department's responsibilities and to promote the career 
     interests of all employees.
       (c) Conforming Amendment.--Subsection (c) of section 172 of 
     the Foreign Relations Authorization Act, Fiscal Years 1988 
     and 1989 (as codified in 22 U.S.C. 2664a(c)) is deleted, and 
     subsection (d) renumbered accordingly.

     SEC. 308. REPEAL OF RECERTIFICATION REQUIREMENT FOR SENIOR 
                   FOREIGN SERVICE.

       Section 305(d) of the Foreign Service Act of 1980 (22 
     U.S.C. 3945(d)) is hereby repealed.

                 TITLE IV--INTERNATIONAL ORGANIZATIONS

     SEC. 401. RAISING THE CAP ON PEACEKEEPING CONTRIBUTIONS.

       (a) In General.--Section 404 of the Foreign Relations 
     Authorization Act, Fiscal Years 1994 and 1995 (Public Law 
     103-236) is amended by amending subparagraph (B), added by 
     Section 402 of P.L. 107-228 (FY 2003 Foreign Relations 
     Authorization Act), to amend subparagraph (iv) as follows and 
     add subparagraph (v) at the end:

[[Page S4846]]

       ``(iv) For assessments made during calendar year 2004, 27.1 
     percent.
       ``(v) For assessments made during calendar year 2005, 27.1 
     percent.''

                TITLE V--SUPPORTING THE WAR ON TERRORISM

     SEC. 501. DESIGNATION OF FOREIGN TERRORIST ORGANIZATIONS.

       Section 219 of the Immigration and Nationality Act (8 
     U.S.C. 1189) is amended as follows:
       (a) Duration of Designation.--
       (1) In subparagraph 219(a)(4)(A), by striking the words 
     ``Subject to paragraphs (5) and (6), a'' and adding ``A'' and 
     by striking the words ``for a period of 2 years beginning on 
     the effective date of the designation under paragraph 
     (2)(B)'' and adding ``until revoked under paragraphs (5) or 
     (6) or set aside pursuant to subparagraph (c)'' in lieu 
     thereof;
       (2) by revising subparagraph 219(a)(4)(B) to read as 
     follows:
       ``(B) Review of designation upon petition.--
       ``(i) In general.--The Secretary shall review the 
     designation of a foreign terrorist organization under the 
     procedures set forth in (ii)-(iii) if the designated 
     organization files a petition for revocation within the 
     petition period. If the organization has not previously filed 
     a petition for revocation under this subparagraph, the 
     petition period begins once two years have elapsed from the 
     date of designation. If the designated organization has 
     previously filed a petition under this subparagraph, then the 
     petition period begins once two years have elapsed from the 
     date of its last petition.
       ``(ii) Procedures.--Any foreign terrorist organization that 
     submits a petition under this subparagraph must provide 
     evidence in that petition that the relevant circumstances 
     described in paragraph (1) no longer exist with respect to 
     the organization.
       ``(iii) The Secretary shall complete his or her review of 
     any petition from a designated organization that is filed 
     within the petition 20 period and shall make a determination 
     concerning revocation of the designation within 180 days 
     after receiving the petition. The Secretary may consider 
     classified information in making a determination in response 
     to a petition. Classified information shall not be subject to 
     disclosure for such time as it remains classified, except 
     that such information may be disclosed to a court ex parte 
     and in camera for purposes of judicial review under 
     subsection (c). A determination under this clause shall be 
     published in the Federal Register, and any revocation under 
     this subparagraph shall be made under the procedures set 
     forth in paragraph (6).
       (3) by adding a new subparagraph 219(a)(4)(C) to read as 
     follows:
       ``(C) Other review of designation.--
       ``(i) In general.--The Secretary shall review the 
     designation of each foreign terrorist organization at least 
     once every four years in order to determine whether it should 
     be revoked pursuant to paragraph (6) . If such review does 
     not take place pursuant to subparagraph (4)(B) in response to 
     a petition for revocation that is filed during the petition 
     period, then it shall be conducted pursuant to procedures to 
     be developed by the Secretary, and neither the results of 
     such review nor the applicable procedures shall be reviewable 
     in any court.
       ``(ii) The Secretary shall publish the results of any 
     review conducted pursuant to this subparagraph in the Federal 
     Register.
       (4) in subparagraph 219(a)(6)(A), by deleting the words 
     ``or a redesignation made under paragraph (4)(B)'' and by 
     adding ``at any time, and shall revoke a designation upon 
     completion of a review conducted pursuant to subparagraphs 
     (4)(B) or (4)(C)'';
       (5) in subparagraph 219(a)(6)(A)(i), by deleting the words 
     ``or a redesignation'';
       (6) in subparagraph 219(a)(7), by deleting ``, or the 
     revocation of a redesignation under paragraph (6),'';
       (7) in subparagraph 219(a)(8), by deleting ``, or if a 
     redesignation under this subsection has become effective 
     under subsection (b)(4)(B),'' and by deleting ``or 
     redesignation.'';
       (b) Aliases.--By inserting a new subsection (b) as follows 
     and relettering the following subsections accordingly:
       ``(b) Amendments to a Designation.
       ``(1) In general.--The Secretary is authorized to amend a 
     designation under the provisions of this subsection if the 
     Secretary finds that the organization has changed its name, 
     adopted a new alias, dissolved and then reconstituted itself 
     under a different name or names, or merged-with another 
     organization.
       ``(2) Procedure.--Such amendments shall be effective upon 
     publication in the Federal Register and the provisions of 
     subparagraphs (a)(2)(B) and (a) (2)(C) shall apply. The 
     procedures and rules set forth in paragraphs (a)(4), (5), 
     (6), (7), and (8) shall also apply to amended designations.
       ``(3) Any such amendment shall be reported to the 
     appropriate Congressional committees within 30 days of 
     publication pursuant to subparagraph (a)(2)(A)(i).
       ``(4) The administrative record may be amended to include 
     such new or additional names and any additional relevant 
     information to support the amendment.
       ``(5) The Secretary may consider classified information in 
     making an amendment under this subsection. Classified 
     information shall not be subject to disclosure for such time 
     as it remains classified, except that such information may be 
     disclosed to a court ex parte and in camera for purposes of 
     judicial review under subsection (c).''; and
       (c) Technical Amendments.--
       (i) In subparagraph 219(a)(3)(B), by changing ``subsection 
     (b)'' to ``subsection (c)''.
       (ii) In subsection 219(c)(1), as amended by this section, 
     by striking the phrase after ``publication'' and before ``in 
     the United States Court of Appeals'' and inserting ``in the 
     Federal Register of a designation, an amended designation, or 
     a determination in response to a petition for revocation, the 
     designated organization may seek judicial review in the 
     United States'' in lieu thereof.
       (iii) In subsection 219(c)(2), (3), and (4), as amended by 
     this section, by adding ``, amendment, or determination'' 
     after ``designation'' wherever it occurs.
       (d) Savings Provision.--The term ``designation'' includes 
     all previous redesignations made pursuant to subparagraph 
     219(a)(4) prior to the effective date of this Act, and such 
     redesignations shall continue to be effective until revoked 
     as provided in paragraphs (a)(5) or (a)(6).

                     TITLE VI--SECURITY ASSISTANCE

     SEC. 601. RESTRICTIONS ON ECONOMIC SUPPORT FUNDS FOR LEBANON.

       Section 1224 of the Foreign Relations Authorization Act, 
     Fiscal Year 2003'' is amended by inserting after ``lapses.'': 
     ``c. Exception.--Subsection (a) shall not apply to such 
     assistance otherwise subject to the restriction set forth 
     therein that is made available to address the water needs of 
     Southern Lebanon.''

     SEC. 602. THRESHOLDS FOR CONGRESSIONAL NOTIFICATION OF FMS 
                   AND COMMERCIAL ARMS TRANSFERS.

       The Arms Export Control Act is amended--
       (a) in section 36(b)--
       (1) in paragraph (1)--
       (A) by striking ``Subject to paragraph 6, in'', and 
     inserting in lieu thereof ``(1) In'';
       (B) by striking ``$14,000,000'' and inserting in lieu 
     thereof ``$100,000,000'';
       (C) by striking ``$50,000,000'' and inserting in lieu 
     thereof ``$200,000,000''; and
       (D) by striking ``$200,000,000'' and inserting in lieu 
     thereof ``$500,000,000''; and
       (E) by inserting ``and in any case in which the President 
     concludes doing so would be appropriate,'' before ``before 
     such letter of offer is issued'';
       (2) in paragraph (5)(C)--
       (A) by striking ``Subject to paragraph (6), if'' and 
     inserting in lieu thereof ``If'';
       (B) by striking ``$14,000,000'' and inserting in lieu 
     thereof ``$100,000,000'';
       (C) by striking ``$50,000,000'' and inserting in lieu 
     thereof ``$200,000,000''; and
       (D) by striking ``$200,000,000'' and inserting in lieu 
     thereof ``$500,000,000'';
       (E) by inserting ``and in any case in which the President 
     concludes doing so would be appropriate,'' before ``then the 
     President shall submit''; and
       (3) by striking paragraph (6);
       (b) in section 36(c)--
       (1) in paragraph (1)
       (A) by striking ``Subject to paragraph (5), in'', and by 
     inserting in lieu thereof ``In'';
       (B) by striking ``$14,000,000'' and inserting in lieu 
     thereof ``$100,000,000'';
       (C) by striking ``$50,000,000'' and inserting in lieu 
     thereof ``$200,000,000'';
       (D) by inserting ``and in any case in which the President 
     concludes doing so would be appropriate,'' before ``before 
     issuing such license''; and,
       (2) in paragraph 2 by striking ``(A) and (B)'' and 
     inserting in lieu thereof ``(A), (B) and (C)'';
       (3) by striking paragraph (5);
       (c) in section 3(d)--
       (1) in paragraphs (1) and (3)(A) by striking ``Subject to 
     paragraph (5), the'' and inserting in lieu thereof ``The'';
       (2) in paragraphs (1) and (3)(A) by striking 
     ``$14,000,000'' and inserting in lieu thereof 
     ``$100,000,000''; and,
       (3) in paragraphs (1) and (3)(A) by striking 
     ``$50,000,000'' and inserting in lieu thereof 
     ``$200,000,000''; and
       (4) by striking paragraph (5).

     SEC. 603. BILATERAL AGREEMENT REQUIREMENTS RELATING TO 
                   LICENSING OF DEFENSE EXPORTS.

       The Arms Export Control Act is amended in section 38(j) as 
     follows
       (a) by adding a new paragraph (5):
       ``(5) Waiver.--Any of the requirements for a bilateral 
     agreement set forth in paragraph (2) may be waived if the 
     President determines that to do so is important to the 
     national interests, in particular the foreign policy, of the 
     United States, and, prior to exercising this authority, 
     provides notification to the appropriate congressional 
     committees of his intent to exercise this authority, the 
     justification for, and the extent of the exercise of this 
     authority. The certification requirement of paragraph 3(A) 
     may be met where the President has exercised this 
     authority.''
       (b) by adding a new paragraph (4)(C):
       ``(C) United states origin defense items.--The term `United 
     States origin defense items' means those defense items that 
     would be exempt from United States defense export licensing 
     requirements under an anticipated country exemption extended 
     in accordance with the authority of this subsection.''

     SEC. 604. AUTHORIZATION OF APPROPRIATIONS.

       (a) Grants Under Arms Export Control Act.--There is 
     authorized to be appropriated to the President for grant 
     assistance under section 23 of the Arms Export Control Act 
     (22 U.S.C. 2763) and for the subsidy cost, as defined in 
     section 502(5) of the Federal Credit Reform Act of 1990, of 
     direct loans under such section $4,414,000,000 for fiscal 
     year 2004

[[Page S4847]]

     and such sums as may be necessary for FY 2005.
       (b) International Military Education and Training.--There 
     is authorized to be appropriated to the President $91,700,000 
     for fiscal year 2004 and such sums as may be necessary for 
     fiscal year 2005 to carry out chapter 5 of part II of the 
     Foreign Assistance Act of 1961, as amended (22 U.S.C. 2347, 
     et seq.).
       (c) Nonproliferation, Anti-Terrorism, Demining, and Related 
     Programs.--There is authorized to be appropriated under 
     ``Nonproliferation, Anti-Terrorism, Demining, and Related 
     Programs'' $385,200,000 for fiscal year 2004 and such sums as 
     may be necessary for fiscal year 2005.

     SEC. 605. COOPERATIVE THREAT REDUCTION PERMANENT WAIVER.

       (a) Authority To Waive Restrictions and Eligibility 
     Requirements.--if the President submits the certification and 
     report described in subsection (b) with respect to an 
     independent state of the former Soviet Union for a fiscal 
     year--
       (1) the restrictions in subsection (d) of section 1203 of 
     the Cooperative Threat Reduction Act of 1993 (22 U.S.C. 5952) 
     shall cease to apply, and funds may be obligated and expended 
     under that section for assistance, to that state during that 
     fiscal year; and
       (2) funds may be obligated and expended during that fiscal 
     year under section 502 of the FREEDOM Support Act (22 U.S.C. 
     5852) for assistance or other programs and activities for 
     that state even if that state has not met one or more of the 
     requirements for eligibility under paragraphs (1) through (4) 
     of that section.
       (b) Certification and Report.--
       (1) The certification and report referred to in subsection 
     (a) are a written certification submitted by the President to 
     Congress that the waiver of the restrictions and requirements 
     described in paragraphs (1) and (2) of that subsection during 
     such fiscal year is important to the national security 
     interests of the United States, together with a report 
     containing the following:
       (A) A description of the activity or activities that 
     prevent the President from certifying that the state is 
     committed to the matters set forth in the provisions of law 
     specified in paragraphs (1) and (2) of subsection (a) in 
     such fiscal year.
       (B) An explanation of why the waiver is important to the 
     national security interests of the United States.
       (C) A description of the strategy, plan, or policy of the 
     President for promoting the commitment of the state to, and 
     compliance by the state with, such matters, notwithstanding 
     the waiver.
       (2) The matter included in the report under paragraph (1) 
     shall be submitted in unclassified form, but may include a 
     classified annex.

     SEC. 606. CONGRESSIONAL NOTIFICATION FOR COMPREHENSIVE 
                   DEFENSE EXPORT AUTHORIZATIONS.

       Section 36(d)(1) of the Arms Export Control Act (P.L. 90-
     629) is amended to add the following new sentences at the end 
     after ``subsection.'':
       ``Notwithstanding section 27(g) of this Act, the provisions 
     of this subsection shall also apply in the case of an 
     approval under section 38 of this Act of a comprehensive 
     export authorization provided for in section 126.14 of the 
     International Traffic in Arms Regulations where the estimated 
     total value of the transfers anticipated at the time of 
     application meets the value thresholds of subsection (c)(1). 
     The provisions shall also apply to amendments to such 
     comprehensive authorizations that involve the addition to the 
     authorization of a new country entering into a related 
     cooperative agreement with the United States Government or 
     memorandum of understanding with the Department of Defense to 
     participate in cooperative activities referred to in such 
     authorizations.''

     SEC. 607. EXPANSION OF AUTHORITIES FOR LOAN OF MATERIAL, 
                   SUPPLIES, AND EQUIPMENT FOR RESEARCH AND 
                   DEVELOPMENT PURPOSES.

       Section 65 of the Arms Export Control Act (22 U.S.C. 2796d) 
     is amended--
       (a) in paragraph (1) of subsection (a)--
       (1) by striking ``Except as provided in subsection (c), the 
     Secretary of Defense, with the concurrence of the Secretary 
     of State, may loan to a country that is a NATO or major non-
     NATO ally'' and inserting ``Except as provided in subsection 
     (c), the Secretary of Defense may loan to--
       ``(i) a NATO organization or a country that is a NATO ally:
       ``(ii) a major non-NATO ally; or
       ``(iii) a friendly foreign country''; and
       (2) by striking ``The Secretary may accept as a loan or a 
     gift from a country that is a NATO or major non-NATO ally'' 
     and inserting ``The Secretary may accept as a loan or a gift 
     from--
       ``(i) a NATO organization or a country that is a NATO ally;
       ``(ii) a major non-NATO ally; or
       ``(iii) a friendly foreign country''; and
       (b) by amending subsection (d) to add after ``United 
     States)'' the following:
       ``and the term 'friendly foreign country' means any country 
     not a member of the North Atlantic Treaty Organization 
     designated as a friendly foreign country for purposes of 
     section 27(j)(2) of this Act''.

     SEC. 608. ESTABLISH DOLLAR THRESHOLD FOR CONGRESSIONAL 
                   NOTIFICATION OF EXCESS DEFENSE ARTICLES THAT 
                   ARE SIGNIFICANT MILITARY EQUIPMENT.

       Section 516(f)(1) of the Foreign Assistance Act of 1961, as 
     amended, (22 U.S.C. 2321j) is amended by striking the clause 
     ``excess defense articles that are significant military 
     equipment (as defined in section 47(9) of the Arms Export 
     Control Act) or''.

     SEC. 609. WAIVER OF NET PROCEEDS RESULTING FROM THE DISPOSAL 
                   OF U.S. DEFENSE ARTICLES PROVIDED TO A FOREIGN 
                   COUNTRY ON A GRANT BASIS.

       Section 505(f) of the Foreign Assistance Act of 1961, as 
     amended, (22 U.S.C. 2314(f)) is amended:
       (1) by striking in the second sentence ``In the case of 
     items which were delivered prior to 1985, the'' and inserting 
     in lieu thereof ``The''; and,
       (2) by adding after the second sentence the following:
       ``A waiver is not required for a country to retain such net 
     proceeds if the net proceeds are five per cent or less of the 
     original acquisition value of the items.''.

     SEC. 610. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS DEFENSE 
                   ARTICLES IN THE WAR RESERVE STOCKPILES FOR 
                   ALLIES TO ISRAEL.

       (a) Authority.--(1) Notwithstanding Section 514 of the 
     Foreign Assistance Act of 1961, as amended, (22 U.S.C. 
     2321h), the President may transfer to Israel, in return for 
     concessions to be negotiated by the Secretary of Defense, any 
     or all of the items described in paragraph (2).
       (2) The items referred to in paragraph (1) are munitions 
     such as armor, artillery, automatic weapons ammunition, 
     missiles, and other munitions that--
       (A) are obsolete or surplus items;
       (B) are in the inventory of the Department of Defense;
       (C) are intended for use as reserve stocks for Israel; and
       (D) as of the date of enactment of this Act, are located in 
     a stockpile in Israel.
       (b) Concessions.--The value of concessions negotiated 
     pursuant to subsection (a) shall be at least equal to the 
     fair market value of the items transferred. The concessions 
     may include cash compensation, services, waiver of charges 
     otherwise payable by the United States, and other items of 
     value.
       (c) Advance Notification of Transfer.--Not less than 30 
     days before making a transfer under the authority of this 
     section, the President shall transmit to the Committee on 
     Foreign Relations and Armed Services Committee of the Senate 
     and the Committee on International Relations and the Armed 
     Services Committee of the House of Representatives a 
     notification of the proposed transfer. The notification shall 
     identify the items to be transferred and the concessions to 
     be received.
       (d) Expiration of Authority.--No transfer may be made under 
     the authority of this section five years after the date of 
     enactment of this Act.

     SEC. 611. ADDITIONS TO U.S. WAR RESERVE STOCKPILES FOR 
                   ALLIES.

       Section 514(b)(2) of the Foreign Assistance Act of 1961 as 
     amended, (22 U.S.C. 2321h(b)) is amended--
       (1) in subparagraph (A) by striking ``$50,000,000'' and 
     ``2001'', and inserting in lieu thereof ``$100,000,000'' and 
     ``2004'', respectively; and,
       (2) in subparagraph (B) by striking $50,000,000'' and 
     ``Republic of Korea'' and inserting in lieu thereof 
     ``$100,000,000'' and ``Israel'', respectively.

     SEC. 612. PROVISION OF CATALOGING DATA AND SERVICES.

       Section 21(h)(2) of the Arms Export Control Act (22 U.S.C. 
     2761(h)(2)) is amended by striking ``or to any member 
     government of that Organization if that Organization or 
     member government'' and inserting ``, to any member of that 
     Organization, or to the government of any other country if 
     that Organization, member government, or other government''.

     SEC. 613. PROVISION TO EXERCISE WAIVERS WITH RESPECT TO 
                   PAKISTAN

       Public Law 107-57, an Act to Authorize the President to 
     Exercise Waivers of Foreign Assistance Restrictions with 
     Respect to Pakistan, is amended--
       (1) in section 1(a), by striking ``2002'', wherever 
     appearing (including in the caption), and inserting in lieu 
     thereof ``2004'';
       (2) in section 1(b), by striking ``2003'', wherever 
     appearing (including in the caption), and inserting in lieu 
     thereof ``2005'';
       (3) in section 2, by striking ``prior to January 1, 
     2001,'';
       (4) in section 3(2), by striking ``Foreign Operations, 
     Export Financing, and Related Programs Appropriations Acts, 
     2002, as is'' and inserting in lieu thereof ``annual foreign 
     operations, export financing, and related programs 
     appropriations Acts for fiscal years 2002, 2003, 2004, and 
     2005, as are''; and
       (5) in section 6, by striking ``2003'' and inserting in 
     lieu thereof ``2005''.

  TITLE VII--INTERNATIONAL PARENTAL CHILD ABDUCTION PREVENTION ACT OF 
                                  2003

       To amend the Immigration and Nationality Act to render 
     inadmissible to the United States certain relatives of 
     international child abductors, and for other purposes.

     SEC. 701. SHORT TITLE.

       This Act shall be cited as the ``International Parental 
     Child Abduction Prevention Act of 2003.''

     SEC. 702. INADMISSIBILITY OF ALIENS SUPPORTING INTERNATIONAL 
                   CHILD ABDUCTORS AND RELATIVES OF SUCH 
                   ABDUCTORS.

       (a) In General.--Section 212(a)(10)(C)(ii) of the 
     Immigration and Nationality Act (8 U.S.C. 1182(a)(10)(C) 
     (ii)) is amended--

[[Page S4848]]

       (1) in subclause (I), by striking the comma at the end and 
     inserting in its place a semicolon;
       (2) in subclause (II), by striking the comma before ``or'' 
     at the end and inserting in its place a semicolon;
       (3) by amending subclause (III) to read as follows:
       ``(III) is a spouse (other than a spouse who is the parent 
     of the abducted child), son or daughter (other than the 
     abducted child), grandson or granddaughter (other than the 
     abducted child), parent, grandparent, sibling, cousin, uncle, 
     aunt, nephew, or niece of an alien described in clause (i), 
     or is a spouse of the abducted child described in clause (i), 
     if such person has been designated by the Secretary of State, 
     in the Secretary of State's sole and unreviewable 
     discretion,'';
       (4) by separating the final general clause from subclause 
     (III) as amended by subsection (a) (3) of this section; and
       (5) by amending the final general clause to read as 
     follows:
       ``is inadmissible until the child described in clause (i) 
     is surrendered to the person granted custody by the order 
     described in that clause, and such person and child are 
     permitted to return to the United States or such person's 
     place of residence, or until the abducted child is 21 years 
     of age.''
       (b) Authority To Cancel Certain Designations; 
     Identification of Aliens Supporting Abductors and Relatives 
     of Abductors; Entry of Abductors and Other Inadmissible 
     Aliens in Visa Lookout System; Definitions.--Section 
     212(a)(10)(C) of the Immigration and Nationality Act (8 
     U.S.C. 1182(a)(10)(C)) is amended by adding at the end the 
     following:
       ``(iv) Authority to cancel certain designations.--The 
     Secretary of State may, in his sole and unreviewable 
     discretion and at any time, cancel a designation made 
     pursuant to Section 212(a)(10)(C)(ii)(III) .
       ``(v) Identification of aliens supporting abductors and 
     relatives of abductors.--In all instances in which the 
     Secretary of State knows that an alien has committed an act 
     described in clause (i), the Secretary of State shall take 
     appropriate action to identify the individuals who are 
     potentially inadmissible under clause (ii).
       ``(vi) Entry of abductors and other inadmissible persons in 
     visa lookout system.--In all instances in which the Secretary 
     of State knows that an alien has committed an act described 
     in clause (i), the Secretary of State shall take appropriate 
     action to cause the entry into the visa lookout system of the 
     name or names of, and identifying information about, such 
     individual and of any persons identified pursuant to clause 
     (v) as potentially inadmissible under clause (ii).
       ``(vii) Definitions.--For purposes of this subparagraph--
       ``(I) the term `child' means a person under twenty-one 
     years of age regardless of marital status;'' and
       ``(II) the term `sibling' includes step-siblings and half-
     siblings.''
       (c) Annual Report.--The Secretary of State shall submit to 
     the Committee on International Relations and the Committee on 
     the Judiciary of the United States House of Representatives, 
     and the Committee on Foreign Relations and the Committee on 
     the Judiciary of the United States Senate, for the year 
     beginning on the first day of the first full month after the 
     date of enactment of this Act, and for each of the four 
     subsequent years, an annual report that describes the 
     operation of Section 212(a)(10)(C) of the Immigration and 
     Nationality Act, as amended by this Title, during the year to 
     which the report pertains. Each such annual report shall be 
     submitted not later than 60 days after the end of the 
     applicable reporting period. As part of the required 
     description of the Act's operation, and to the extent 
     corresponding data are reasonably available, each such annual 
     report shall specify,
       (1) the number of cases known to the Secretary of State, 
     disaggregated according to the nationality of the aliens 
     concerned, in which a visa was denied to an applicant on the 
     basis of the applicant's inadmissibility under Section 
     212(a)(10)(C) during the reporting period; and
       (2) the cumulative total number of cases known to the 
     Secretary of State, disaggregated according to the 
     nationality of the aliens concerned, in which a visa was 
     denied to an applicant on the basis of the applicant's 
     inadmissibility under Section 212(a)(10)(C) since the 
     beginning of the first reporting period; and
       (3) the number of cases known to the Secretary of State, 
     disaggregated according to the nationality of the aliens 
     concerned, in which an alien's name was placed in the visa 
     lookout system on the basis of the alien's inadmissibility or 
     potential inadmissibility under Section 212(a)(10)(C) during 
     the reporting period; and
       (4) the cumulative total number of names, disaggregated 
     according to the nationality of the aliens concerned, known 
     to the Secretary of State to appear in the visa lookout 
     system on the basis of the aliens' inadmissibility or 
     potential inadmissibility under Section 212(a)(10)(C) at the 
     end of the reporting period.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

            Subtitle A--Streamlining Reporting Requirements

     SEC. 801. REPORTS ON BENCHMARKS FOR BOSNIA.

       Section 7(b)(2) of the 1998 Supplemental Appropriations and 
     Rescissions Act (Public Law 105-174, 112 Stat. 64) and 
     Section 1203 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261) 
     are repealed.

     SEC. 802. REPORT CONCERNING THE GERMAN FOUNDATION 
                   ``REMEMBRANCE, RESPONSIBILITY, AND THE 
                   FUTURE''.

       Section 704 of the Foreign Relations Authorization Act, 
     Fiscal Year 2003 (Public Law 107-228) is repealed.

     SEC. 803. REPORT ON PROGRESS IN CYPRUS.

       Section 620C(c) of the Foreign Assistance Act of 1961 
     (Public Law 87-195) is amended by:
       (a) striking in the second sentence ``within 60 days after 
     the date of enactment of this section and at the end of each 
     succeeding 60-day period''; and
       (b) inserting in its place ``on a semiannual basis''.

     SEC. 804. REPORTS ON ACTIVITIES IN COLOMBIA.

       Section 694 of the Foreign Relations Authorization Act, 
     Fiscal Year 2003 (Public Law 107-228) is repealed.

     SEC. 805. REPORT ON EXTRADITION OF NARCOTICS TRAFFICKERS.

       Section 3203 of the 2001 Military Construction 
     Appropriations Act (Public Law 106-246) is repealed.

     SEC. 806. REPORT ON TERRORIST ACTIVITY IN WHICH UNITED STATES 
                   CITIZENS WERE KILLED AND RELATED MATTERS.

       Section 805 of the Admiral James W. Nance and Meg Donovan 
     Foreign Relations Authorization Act, Fiscal Years 2000 and 
     2001 (22 U.S.C. 2656f note), as amended by section 216 of the 
     Foreign Relations Authorization Act, Fiscal Year 2003 (Public 
     Law 107-228), is repealed.

     SEC. 807. REPORT AND WAIVER REGARDING EMBASSY IN JERUSALEM.

       The Jerusalem Embassy Act of 1995 (Public Law 104-45) is 
     amended as follows:
       (a) in section 6, by:
       (1) striking ``SEMIANNUAL'' in the section heading;
       (2) and by striking ``every six months thereafter'' and 
     inserting in its place ``each year thereafter''; and
       (b) in section 7(a)(2) by striking ``for an additional six 
     month period'' and inserting in its place ``for an additional 
     one year period''.

     SEC. 808. REPORT ON PROGRESS TOWARD REGIONAL 
                   NONPROLIFERATION.

       Section 620F(c) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2376(c)) is repealed.

     SEC. 809. REPORT ON ANNUAL ESTIMATE AND JUSTIFICATION FOR 
                   SALES PROGRAM.

       Section 25 of the Arms Export Control Act (22 U.S.C. 2765) 
     is repealed.

     SEC. 810. ANNUAL FOREIGN MILITARY TRAINING REPORT.

       Section 656 of the Foreign Assistance Act of 1961 is 
     amended as follows:
       (a) in paragraph (a)--
       (1) by striking ``January 1'' and inserting in lieu thereof 
     ``March 1'',
       (2) after ``personnel'' by inserting ``, excluding training 
     provided through sales,''
       (3) after ``State'' by inserting ``, which was completed'',
       (4) by striking all that follows after ``previous fiscal 
     year'' before the period, and
       (5) by inserting the following new second sentence:
       ``This paragraph shall not apply with respect to any NATO 
     member, Australia, New Zealand or Japan unless the 
     Secretaries jointly determine, after consultation with 
     Congress, that inclusion of any such country in the report is 
     warranted.'', and
       (6) by striking (a) (2);
       (b) in paragraph (b)--
       (1) in subparagraph (1) after ``purpose for the activity,'' 
     by inserting ``and'' and after ``operation'' by striking all 
     that follows before the period,
       (2) in subparagraph (3) after ``activity'' the first time 
     it occurs by striking all that follows before the period;
       (c) in paragraph (c) after ``unclassified form'' by 
     striking all that follows before the period; and
       (d) in paragraph (d) by striking ``All unclassified 
     portions of the'' and inserting in lieu thereof ``The''.''

     SEC. 811. REPORT ON HUMAN RIGHTS VIOLATIONS BY IMET 
                   PARTICIPANTS

       (a) Section 549 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2347(h)) is repealed.
       (b) Section 548 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2347g) is amended by striking paragraphs (b) and (c) 
     in their entirety and inserting the following:
       ``(b) Information on Human Rights'' Abuses. Upon request of 
     the Secretary of State for information regarding foreign 
     personnel or military units, the Secretary of Defense shall 
     provide such information contained in the database to the 
     Secretary of State. If the Secretary of State determines that 
     a foreign person identified in the database maintained 
     pursuant to this section was involved in a violation of 
     internationally recognized human rights, the Secretary of 
     State shall so advise the Secretary of Defense, who shall in 
     turn ensure that the database is updated to contain such fact 
     and all relevant information.''

     SEC. 812. REPORT ON THE DEVELOPMENT OF THE EUROPEAN SECURITY 
                   AND DEFENSE IDENTITY (ESDI) WITHIN THE NATO 
                   ALLIANCE.

       Section 1223 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     112 Stat. 2075 and 2155, respectively) is repealed.

     SEC. 813. REPORT ON TRANSFERS OF MILITARY SENSITIVE 
                   TECHNOLOGY TO COUNTRIES AND ENTITIES OF 
                   CONCERN.

       The National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 113

[[Page S4849]]

     Stat. 542, 697, 706, 748, 756, 779, and 798, respectively) is 
     amended in section 1402, by striking subsection (b)(2).

                       Subtitle B--Other Matters

     SEC. 814. NUCLEAR REPROCESSING TRANSFER WAIVER

       Section 102(a)(2) of the Arms Export and Control Act 
     (Public Law 90-629) (22 U.S.C. 2799aa-1) is amended in the 
     first sentence by deleting the phrase ``in any fiscal year'' 
     and the phrase ``during that fiscal year''.

     SEC. 815. COMPLEX FOREIGN CONTINGENCIES.

       (a) Purposes.--The President should ensure that assistance 
     provided to address complex foreign crises is designed to 
     respond on an urgent, flexible basis, including at the 
     outset, to mitigate without regard to scale of the crisis, 
     but taking account of the gravity of the crises, political 
     crises threatening democratic institutions, food, 
     agricultural or health crises, fiscal or economic crises 
     affecting countries, regions or ethnic groups. The response 
     should be designed to best serve United States foreign policy 
     interests, including the restoration or maintenance of peace 
     and security.
       (b) Whenever the President determines it to be important to 
     the national interest he is authorized to furnish on such 
     terms and conditions as he may determine assistance under 
     this section for the purpose of responding to complex foreign 
     crises.
       (c) There is hereby established a United States Complex 
     Foreign Contingency Fund to carry out the purposes of this 
     section. There is authorized to be appropriated to the 
     President from time to time such amounts as may be necessary 
     for the fund to carry out the purposes of this section, which 
     may be made available notwithstanding any other provision of 
     law. Amounts appropriated hereunder shall remain available 
     until expended.

                           SECTIONAL ANALYSES

                TITLE I--AUTHORIZATION OF APPROPRIATIONS

     SEC. 101. ADMINISTRATION OF FOREIGN AFFAIRS.

       This section authorizes appropriations under the heading 
     ``Administration of Foreign Affairs'' for fiscal years 2004 
     and 2005. It includes funds for executive direction and 
     policy formulation, conduct of diplomatic relations with 
     foreign governments and international organizations, 
     effective implementation of consular programs and its border 
     security component, the acquisition and maintenance of office 
     space and living quarters for the United States missions 
     abroad, provision of security for those operations, and 
     information resource management.
       In particular, this section provides authorization of 
     appropriations for the necessary expenses of the Department 
     of State and the Foreign Service, not otherwise provided for, 
     including expenses authorized by the State Department Basic 
     Authorities Act. These expenses include an authorization for 
     worldwide security upgrades. This section also includes 
     authorization of appropriations for the conduct of U.S. 
     public diplomacy programs, capital investment, 
     representation, protection of foreign missions and officials, 
     emergencies in the diplomatic and consular service, 
     repatriation loans, and payment to the American Institute in 
     Taiwan. This section includes the funding for the final year 
     of the Department's Diplomatic Readiness Initiative aimed to 
     hire 1158 additional employees beyond attrition over a three-
     year period to fill our staffing gaps (particularly in 
     critical overseas positions), provide a ``personnel 
     complement'' to allow for training, and respond quickly to 
     crises and emerging policy priorities.

     SEC. 102. INTERNATIONAL ORGANIZATIONS AND CONFERENCES.

       This section authorizes appropriations for fiscal years 
     2004 and 2005 under the heading ``International Organizations 
     and Conferences.'' It authorizes the necessary funds for U.S. 
     contributions of its assessed share of the expenses of the 
     United Nations and other international organizations of which 
     the United States is a member. In addition, provision is made 
     for assessed contributions to international peacekeeping 
     activities under United Nations auspices.
       This section also authorizes such sums as may be necessary 
     for each of the fiscal years 2004 and 2005 to offset adverse 
     fluctuations in foreign currency exchange rates.

     SEC. 103. INTERNATIONAL COMMISSIONS.

       This section authorizes appropriations for fiscal years 
     2004 and 2005 under the heading ``International 
     Commissions.'' It authorizes funds necessary to enable the 
     United States to meet its obligations as a participant in 
     international commissions, including those dealing with 
     American boundaries and related matters with Canada and 
     Mexico, and international fisheries commissions.

     SEC. 104. MIGRATION AND REFUGEE ASSISTANCE.

       This section authorizes appropriations for fiscal years 
     2004 and 2005 under the heading ``Migration and Refugee 
     Assistance'' to enable the Secretary of State to provide 
     assistance and make contributions for migrants and refugees, 
     including contributions to international organizations such 
     as the United Nations High Commissioner for Refugees and the 
     International Committee for the Red Cross, through private 
     volunteer agencies, governments, and bilateral assistance, as 
     authorized by law.

     SEC. 105. CENTERS AND FOUNDATIONS.

       This section authorizes appropriations for fiscal years 
     2004 and 2005 for the East-West Center, the National 
     Endowment for Democracy, and the Asia Foundation.

        TITLE II--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES

     SEC. 201. REIMBURSEMENT RATE FOR AIRLIFT SERVICES PROVIDED TO 
                   THE DEPARTMENT OF STATE.

       The Department of Defense provides a variety of airlift 
     support for official Secretary of State overseas travel on a 
     reimbursable basis. The airlift mission involves, for 
     example, transporting armored vehicles necessary to provide a 
     safe environment for the Secretary, when such vehicles are 
     not available in country. The Department of Defense has a 
     two-tiered rate structure for charging for such support. At 
     present the Department of State is paying the higher rate, 
     which is nearly twice as much as the lower. This section 
     would authorize the Department of State to pay the Department 
     of Defense for airlift services at the Department of Defense 
     rate.
       Legislation has already been enacted under which the CIA 
     receives the Department of Defense rate on missions, which 
     the Secretary of Defense has determined to be related to 
     national security objectives (10 U.S.C. 2642). The Secretary 
     of State's travel is similarly aimed at national security 
     objectives, and similar treatment is therefore warranted. 
     This section would therefore amend 10 U.S.C. 2642 to add the 
     Department of State.

     SEC. 202. GRANT AUTHORITY TO PROMOTE BIOTECHNOLOGY.

       The Department plays a critical role in U.S. Government 
     efforts to ensure that foreign governments consider 
     biotechnology and its applications in agriculture/food on the 
     basis of science. Currently, the Department does not have 
     grant authority for funds that the Bureau of Economic and 
     Business Affairs (EB) receives for biotechnology policy 
     programs and for the Business Financial Incentive Fund. 
     Unlike a contractual arrangement, where a contractor provides 
     a good or service to the governmental agency in return for 
     payment, the grant process allows the government and the 
     grantee to enter into a partnership to achieve a shared 
     objective that serves the public good. Grant and cooperative 
     agreement authority would enable the Department to use these 
     funds more effectively, permitting it to work more directly 
     with universities, non-governmental organizations, 
     international organizations, private voluntary organizations, 
     scientific groups, and private sector associations. It is 
     anticipated that grants and cooperative agreements, as well 
     as contracts, would be used to support public-private 
     partnerships, workshops, seminars, media events, speaker 
     programs, and publications. The Department will implement 
     this authority in compliance with applicable statutory and 
     regulatory guidelines governing grants and cooperative 
     agreements. This section provides for up to $500,000 in grant 
     authority each fiscal year.

     SEC. 203. IMMEDIATE RESPONSE FACILITIES.

       In recent years, the Department has experienced a need to 
     stand up a diplomatic facility on very short notice to 
     achieve urgent, high-visibility foreign policy objectives. 
     The most dramatic cases were the situations in Nairobi, 
     Kenya, and Dar Es Salaam, Tanzania, immediately after the 
     1998 bombings. A recent example is the immediate temporary 
     facilities in Kabul in the aftermath of the war. Other 
     circumstances demanding immediate action would include, for 
     example, destruction or incapacitation of a U.S. diplomatic 
     facility by a terrorist attack, a natural disaster, or a war 
     or insurrection to which the U.S. is not a party. To ensure 
     that the Department has the flexibility to respond rapidly in 
     emergency situations, this section would provide that not to 
     exceed $15,000,000 of the funds appropriated under the 
     heading ``Embassy Security, Construction, and Maintenance'' 
     may be reprogrammed to provide immediate response facilities 
     without having to provide advance congressional notification 
     pursuant to any other provision of law, including but not 
     limited to section 34(a) of the State Department Basic 
     Authorities Act of 1956 (22 U.S.C. 2706). In such instances 
     where advance notification would otherwise be required, the 
     Department is required to notify and provide an explanation 
     of the circumstances requiring the deployment of immediate 
     response facilities to the Committee on Appropriations and 
     the Committee on International Relations of the House of 
     Representatives and the Committee on Appropriations and the 
     Committee on Foreign Relations of the Senate as soon as 
     practicable, but not later than 3 days after the obligation 
     or expenditure of such funds. This post-notification 
     procedure is similar to the one provided for in Section 34(c) 
     of the Basic Authorities Act of 1956 for situations involving 
     substantial risk to human health or welfare.
       This authority will not be used to circumvent advance 
     notification where a facility is not an immediately-needed 
     response to an urgent situation. It will be used for existing 
     posts or facilities, but not to stand up a new post or commit 
     initial funds toward a long-term project, such as 
     construction of a New Embassy Compound. Thus, for example, 
     had this authority existed at the time of the war in 
     Afghanistan, it would have been appropriately used for the 
     Phase 1 immediate temporary facilities, but not for the Phase 
     2 embassy annex and reconstruction.

     SEC. 204. MINE ACTION PROGRAMS GRANT AUTHORITY.

       The Department, through its Office of Mine Action 
     Initiatives and Partnerships (PM/MAIP), is actively working 
     with non-governmental organizations, foundations, and 
     companies to raise awareness and resources for mine action. 
     In particular, the

[[Page S4850]]

     Department has developed over two dozen public-private 
     partnerships which promote mine clearance; survivors 
     assistance, education programs, and research and development 
     of promising technologies for finding and destroying 
     landmines. To maximize the effectiveness of these public-
     private partnerships, it is important that the Department 
     have the ability to enter into grants and cooperative 
     agreements. Unlike a contractual arrangement, where a 
     contractor provides a good or service to the governmental 
     agency in return for payment, the grant process allows the 
     government and the grantee to enter into a partnership to 
     achieve a shared objective that serves the public good. This 
     section provides for up to $450,000 in grant authority each 
     fiscal year.
       By being able to provide grants and enter into cooperative 
     agreements with organizations participating in the public-
     private partnership program, the Department would be able to 
     provide support to such private sector projects as training 
     demining personnel and mine-detecting dogs; developing 
     training materials and mine risk education materials that 
     teach children and adults about how to recognize, report, and 
     avoid landmines; and research and development into new 
     technologies to increase the effectiveness and speed of 
     detecting and removing landmines. To the maximum extent 
     feasible, grants and cooperative agreements would be used to 
     support mine action activities of non-governmental 
     organizations. The Department will implement this authority 
     in compliance with all statutory and regulatory guidelines 
     governing grants and cooperative agreements.

     SEC. 205. THE U.S. DIPLOMACY CENTER.

       This section would provide necessary authorities for the 
     operation of the new U.S. Diplomacy Center at the Department 
     of State. As envisioned, this Center would be dedicated to 
     creating a better understanding of the history and practice 
     of United States diplomacy. The Center would organize and 
     sponsor educational and outreach programs, including 
     conferences, seminars, and educational materials. It would 
     also include a museum area, focusing on the history of U.S. 
     diplomacy in safeguarding U.S. security, searching for peace, 
     increasing prosperity, promoting U.S. values, and protecting 
     U.S. lives abroad. As is customary in connection with such 
     activities, the Center should include appropriate visitor 
     services such as a museum shop, and should be able to pay for 
     reasonable expenses in connection with conferences and 
     outreach activities, such as refreshments and travel of 
     participants. This legislation would provide clear statutory 
     authority in these areas. Authority is also provided to 
     retain fees to support the Center's activities. It would also 
     include authority to dispose and lend museum artifacts and 
     materials, similar to the authority already provided to the 
     Department of State for the Diplomatic Reception Areas on the 
     seventh and eighth floors of the Harry S Truman Building. 
     Consistent with the Code of Ethics for Museums of the 
     American Association of Museums, the legislation provides 
     that proceeds from disposition of museum holdings can only be 
     used for collection purposes. This section also provides 
     that, except as may be identified subject to reprogramming 
     procedures, the Bureau of Public Affairs may not expend more 
     than $950,000 in fiscal year 2004 and such sums as may. be 
     necessary in fiscal year 2005 for the U.S. Diplomacy Center.

     SEC. 206. PUBLIC AFFAIRS GRANT AUTHORITY.

       The Department is actively pursuing outreach programs 
     designed to educate the American public about foreign affairs 
     issues and the development and implementation of foreign 
     policy. In particular, the Bureau of Public Affairs is 
     working with a number of nonprofit organizations (such as 
     academic institutions of higher learning, 
     organizations representing associations of American 
     educators, local organizations or community groups, and 
     broadcasting entities) in order to reach different sectors 
     of the domestic audience.
       In certain situations, a grant or cooperative agreement is 
     a more appropriate vehicle than a contractual agreement to 
     meet the Department's goals. Unlike a contractual 
     arrangement, where a contractor provides a good or service to 
     the governmental agency in return for payment, the grant 
     process allows the government and the grantee to enter into a 
     partnership to achieve a shared objective that serves a 
     public good. In this case, the shared purpose is to educate 
     the American public on foreign affairs matters in a factual 
     and fair manner.
       The Department would continue to use its existing contract 
     authority for many activities and would exercise authority to 
     enter into grants and cooperative agreements only in those 
     limited instances where appropriate. The Department will 
     implement this authority in compliance with applicable 
     statutory and regulatory guidelines governing grants and 
     cooperative agreements.

    TITLE III: ORGANIZATION AND PERSONNEL OF THE DEPARTMENT OF STATE

     SEC. 301. COST OF LIVING ALLOWANCES.

       The proposed changes to the education allowance in 5 U.S.C. 
     5924(4) would: (1) allow for educational travel to the United 
     States for children in kindergarten through 12th grade, when 
     schools at post are not adequate; (2) allow for educational 
     travel to a school outside the United States for children at 
     the secondary and college level; (3) provide for educational 
     travel at the graduate level for children who are still 
     dependents; (4) permit payment of fees required by overseas 
     schools for successful completion of a course or grade; and 
     (5) allow the option of storing a child's personal effects 
     near the school during their trip home, rather than 
     transporting it back and forth.
       Currently, when families are serving in a post without 
     adequate local school facilities, the law allows for 
     transportation of children in kindergarten through 12th grade 
     to the nearest place where there is adequate education. For 
     instance, if an employee is assigned to Guinea-Bissau, 
     transportation for his/her dependents is calculated based on 
     hub-points in Europe (London and Rome). This causes 
     significant financial hardships for families, who are often 
     serving in the most difficult overseas assignments, and whose 
     children are in school in the United States. By changing the 
     wording of the law to allow transportation back to the United 
     States, the transportation component will ensure that parents 
     can afford to send their children to the United States for an 
     American education.
       On the other hand, when a child has reached the secondary 
     or post-secondary level, aside from a limited exception, 
     current law allows payment for travel only to and from a 
     school in the United States. This amendment would permit 
     transportation to schools outside the United States as well. 
     It would also allow educational travel at the post-
     baccalaureate level, when a child is still a dependent but 
     has graduated from college. This would be consistent with 
     what is allowed for military member dependents.
       Overseas schools frequently require participation in 
     programs that would not fall into the category of 
     expenses considered ``ordinarily provided without charge 
     in the United States,'' as described in 5 U.S.C. 
     5924(4)(A). For example, students may be required to 
     participate in a cultural studies program that may include 
     mandatory field trips. The proposed amendment would allow 
     associated costs to be paid with the education allowance.
       Finally, the proposed amendment would allow for local 
     storage of a child's effects in lieu of transporting them 
     back and forth during school closings for students in 
     kindergarten and elementary school as well as higher levels 
     of education, provided that payment for local storage would 
     not exceed the cost of transport. Section 319 of the FY 2003 
     Foreign Relations Authorization Act (P.L. 107-228) added this 
     option for educational travel under 5 U.S.C. 5924(4)(B), and 
     this amendment would extend the option to educational travel 
     under 5 U.S.C. 5924(4)(A).
       In addition, this section makes technical amendments 
     including Puerto Rico as part of the ``United States,'' 
     eliminating language referring to the Canal Zone, and 
     removing a reference to an irrelevant statute.

     SEC. 302. WAIVER OF ANNUITY LIMITATIONS ON RE-EMPLOYED 
                   FOREIGN SERVICE ANNUITANTS.

       Foreign Service annuitants hired on a full-time basis have 
     their annuities terminated. Those employed on a parttime, 
     intermittent or temporary basis face a cap on the total sum 
     of their salary and their retirement annuity. The ``dual 
     compensation restrictions'' on Foreign Service annuitants, 
     many of whom have unique experience and talents, hamper the 
     Department's ability to hire these individuals to meet 
     mission needs. This section amends the Foreign Service Act to 
     allow the Secretary of State and heads of other relevant 
     agencies to waive these restrictions for positions for which 
     there is exceptional difficulty in recruiting or retaining a 
     qualified employee.
       Section 824(g) of the Foreign Service Act was last amended 
     in 1988 to authorize the Secretary to waive the annuity 
     limitations on re-employed Foreign Service annuitants on a 
     case by case basis if the annuitant is reemployed on a 
     temporary basis due to an emergency involving a direct threat 
     to life or property or other unusual circumstances. This 
     amendment extended to the 10 Foreign Service a waiver 
     authority that had existed and currently exists for the Civil 
     Service.
       Subsection (a) again seeks to amend section 824(g) of the 
     Foreign Service Act, and again to extend a waiver authority 
     to the Foreign Service that already exists for the Civil 
     Service. It would provide the Secretary authority to waive 
     the annuity limitations for annuitants reemployed on a 
     temporary basis in positions for which it is exceptionally 
     difficult to recruit or retain qualified employees. This 
     authority, which we do not expect to be used very often, 
     would better enable the Department to recruit and retain. 
     highly qualified persons necessary, for example, to meet our 
     mission needs in the war on terrorism and in our public 
     diplomacy efforts.
       Subsection (b) indicates that effective October 1, 2005, 
     section 824(g) will revert to its current form.

     SEC. 303. FELLOWSHIP OF HOPE PROGRAM.

       This section clarifies the authority underlying a current 
     exchange program between the foreign affairs agencies of the 
     United States, the European Union, and its member states, 
     created to promote collaboration among its young leaders. 
     Under this very successful program, Foreign Service officers 
     are identified on an annual basis to serve one-year details 
     at the European Union in Brussels and designated European 
     foreign ministries. After the Foreign Service Officers 
     complete the details at the EU or in the foreign ministries, 
     they are assigned to a position in the U.S. embassy in the 
     relevant

[[Page S4851]]

     European capital. Conversely, the State Department also will 
     receive members of the diplomatic corps from the European 
     Union and designated foreign ministries. While the present 
     program is limited to EU members, it may be that this program 
     could be extended to other designated countries.
       This provision renders moot a potential legal concern under 
     the Emoluments Clause of the Constitution (Article 1, section 
     9, clause 8). The Emoluments Clause provides that no person 
     holding an office of profit or trust under the United States 
     may, without the consent of Congress, accept an emolument 
     from a foreign state. Under the Fellowship of Hope program, 
     diplomats from the Commission and designated foreign 
     countries accept an emolument from a foreign state through 
     the course of compensation by their own government. 
     However, these diplomats are also holding an office of 
     profit or trust in the U.S. government. Explicit 
     Congressional authority for the exchange program would 
     obviate any issue regarding the Emoluments Clause.
       The Secretary will be responsible for administering this 
     program consistent with the national security and the foreign 
     policy interests of the United States. In particular, it 
     should be noted that information security considerations have 
     been carefully considered in the implementation of this 
     exchange program. Moreover, the Secretary will consult with 
     the Department of Justice or the Central Intelligence Agency, 
     as appropriate, to meet these responsibilities.

     SEC. 304. CLAIMS FOR LOST PAY.

       This section clarifies the Department's authority to make 
     technical corrections or enter into settlements of claims or 
     grievances brought by its employees involving lost pay, 
     allowances, or differentials. These complaints may involve 
     simple technical ``glitches'' in the payment of salary or 
     benefits, for which the Department (like other agencies) 
     routinely retroactively corrects the payment or makes a 
     payment as appropriate. Administrative adjustments also may 
     be required in order, for example, that a member of the 
     Foreign Service is made whole in connection with a 
     retroactive promotion.
       In addition, the Department routinely settles non-Title VII 
     claims brought by Civil Service employees before the Merit 
     Systems Protection Board, or those brought by Foreign Service 
     employees before the Foreign Service Grievance Board. In 
     settling or compromising such claims, the normal authority 
     for the payment of back pay would be the Back Pay Act (5 
     U.S.C. 5596). However, as is the case with most settlements, 
     the Department does not usually make any admission as to 
     liability, and therefore does not make a finding of an 
     unwarranted or unjustified personnel action under the 
     provisions of the Back Pay Act. This section would make clear 
     that no such finding would be necessary in the event of a 
     settlement or compromise of a claim or grievance which 
     otherwise is in accordance with all provisions of the Back 
     Pay Act.
       The Department is seeking this provision as clarification 
     to resolve back pay claims consistent with the spirit of 
     conciliation that underlies settlements generally. This 
     provision is not meant to question the current ability of 
     agencies to settle claims without admitting fault.

     SEC. 305. SUSPENSION OR ENFORCED LEAVE.

       This amendment brings the Foreign Service into parity with 
     the Civil Service. Current statutes, in particular, 5 U.S.C. 
     7512 and 7513, permit an indefinite suspension or enforced 
     leave of an employee during an investigation into the 
     revocation of a security clearance, where a security 
     clearance has been suspended, where there is reasonable cause 
     to believe the employee has committed a crime for which a 
     sentence of imprisonment may be imposed, or for such other 
     cause as will promote the efficiency of the service. The due 
     process requirements in this amendment are the same as those 
     afforded Civil Service employees.
       ``Reasonable cause'' may include, but is not limited to, an 
     indictment or circumstances attendant to an arrest or 
     investigation conducted by the Department or criminal law 
     enforcement authorities. The Board is substantially 
     constrained in what it may review with respect to suspensions 
     and enforced leave authorized by this amendment. The Board 
     will not, for example, have the authority to review the 
     merits of any security clearance revocation investigation, 
     which triggers a suspension under this amendment. In 
     reviewing any suspension or enforced leave under this 
     amendment, it is the Department's expectation that the 
     considerable body of law interpreting 5 U.S.C. sections 7512 
     and 7513 will guide the Board. Decisions as to whether or not 
     to grant the employee back pay upon the resolution of the 
     underlying matter will be at the discretion of the 
     Department. Under no circumstance may the Board grant 
     prescriptive relief with respect to an indefinite suspension 
     or enforced leave.

     SEC. 306. HOME LEAVE.

       This section reduces the time period for eligibility for 
     home leave from 18 to 12 months. In addition, this amendment 
     provides that members may take authorized rest and 
     recuperation travel under section 4081(6) even if they take 
     accrued, unused home leave authorized by this amendment. 
     This would ensure that eligibility for R&R would not be 
     affected if someone took home leave while on other travel 
     to the United States.
       The effect of these two amendments will be to facilitate 
     members to take home leave during tours of duty (including at 
     R&R posts) rather than at the end of their tours of duty as 
     is the Department's current practice. The Department does not 
     plan, however, to change its current policies related to the 
     authorization of home leave travel, i.e., that members take 
     home leave normally at the end of a two-year tour or at the 
     midpoint of a four-year tour. This amendment simply provides 
     some flexibility.

     SEC. 307. OMBUDSMAN FOR THE DEPARTMENT OF STATE.

       In section 172 of the Foreign Relations Authorization Act, 
     FY 1988 and 1989 (P.L. 100-204), the Congress expressed its 
     objective that the contributions of Civil Service employees 
     to the Department of State would not be overlooked and would 
     be adequately protected. It therefore established an 
     Ombudsman for Civil Service Employees in the Office of the 
     Secretary. This section is intended to enhance the 
     responsibilities of the Ombudsman to better serve the 
     Department's mission.
       This provision further ensures that the Ombudsman would 
     continue to report directly to the Secretary, and will have 
     the ability to participate in meetings regarding management 
     of the Department in order to be able to protect the 
     interests of all Department employees.

     SEC. 308. REPEAL OF RECERTIFICATION REQUIREMENT FOR SENIOR 
                   FOREIGN SERVICE.

       This section repeals the provision in the Foreign Service 
     Act that requires the Secretary to establish a 
     recertification requirement for members of the Senior Foreign 
     Service (SFS) that is equivalent to the recertification 
     process for the Senior Executive Service (SES).
       In section 1321 of the Homeland Security Act of 2002 (P.L. 
     107-296), the Congress repealed the recertification 14 
     requirements for SES employees contained in title 5 of the 
     United States Code. The rationale was that these periodic 
     recertification requirements for the SES did not serve a 
     useful purpose. We believe the same rationale applies to the 
     SFS.

                 TITLE IV--INTERNATIONAL ORGANIZATIONS

     SEC. 401 RAISING THE CAP ON PEACEKEEPING CONTRIBUTIONS.

       This provision would set at 27.1% for calendar years 2004 
     and 2005 the cap on UN peacekeeping assessments. This would 
     allow the United States to pay its peacekeeping assessment in 
     full in 2004 and 2005. This provision will allow us to avoid 
     accruing future peacekeeping arrears.

                TITLE V--SUPPORTING THE WAR ON TERRORISM

     SEC. 501. DESIGNATION OF FOREIGN TERRORIST ORGANIZATIONS.

       Overview: This section amends section 219 of the 
     Immigration and Nationality Act (``INA'') (8 U.S.C. 1189), 
     authorizing the Secretary of State, in consultation with the 
     Attorney General and the Secretary of the Treasury (the 
     ``Secretary''), to designate foreign terrorist organizations 
     (``FTOs''), in order to improve the statutory designation 
     procedures. It eliminates the statute's redesignation 
     provision, requiring the Secretary instead to review FTO 
     designations regularly, and it adds a procedure for amending 
     designations.
       Amending the Redesignation Requirement: The Duration of 
     Designation provision removes the requirement for the 
     Secretary to redesignate FTOs every two years for 
     designations to remain in effect. It permits an FTO 
     designation to remain in effect until it is revoked by an Act 
     of Congress or by the Secretary or set aside by the United 
     States Court of Appeals for the District of Columbia Circuit.
       The Review of Designation upon Petition provision requires 
     the Secretary to review the designation of an FTO if a 
     designated organization petitions the Secretary for 
     revocation once two years have elapsed from the date of its 
     designation. It also requires such review if an organization 
     files another petition once two years have elapsed from the 
     date of its last petition. This provision requires the 
     Secretary to issue a determination on a petition for 
     revocation within 180 days. It also permits an organization 
     to petition for judicial review of the Secretary's 
     determination within 30 days after that determination is 
     published in the Federal Register.
       The Other Review of Designation provision requires the 
     Secretary to review the designation of each FTO at least once 
     every four years in order to determine whether it should be 
     revoked, even if the organization does not submit a petition 
     for revocation. Absent such a petition, this automatic review 
     would be completed according to procedures to be developed by 
     the Secretary, and there would be no judicial review. This 
     periodic review is intended as an 17 automatic check on the 
     continued vitality of a designation, even in the absence of a 
     petition for revocation by the designated organization.
       With 36 FTOs designated as of March 2003, and others on the 
     way to designation, the demands that the current statutory 
     requirement to redesignate organizations every two years 
     imposes on the interagency counterterrorism workforce are 
     great. Each redesignation requires an interagency review 
     process and preparation of an administrative record that can 
     take months. The time demands associated with proving 
     repeatedly

[[Page S4852]]

     that terrorist groups have retained their character as 
     terrorists significantly drain resources from other pressing 
     counterterrorism work, including the pursuit of additional 
     designations pursuant to section 219 of the INA, section 
     212(a)(3)(B) of the INA (8 U.S.C. 1182) (designation of 
     terrorist organizations for immigration purposes), and 
     Executive Order 13224 (terrorist financing).
       The proposed changes would streamline the current 
     procedures and permit a more effective use of USG resources, 
     while ensuring that the Secretary would regularly review an 
     organization's designation to determine if it should be 
     revoked. The terrorist threat we face has increased greatly 
     since section 219 was enacted in 1996, and now more than 
     ever, the USG needs to marshal its counterterrorism resources 
     as efficiently as possible.
       Aliases: Section 219 does not contain any explicit 
     statutory authority or guidance for making additional alias 
     designations after an organization is designated as an FTO. 
     In designating FTOs, the Secretary of State routinely lists 
     the names of the designated entities together with their 
     aliases, a practice that has been upheld by the United States 
     Court of Appeals for the District of Columbia Circuit. 
     Recently, certain groups that have been designated as FTOs 
     have changed their names in an effort to evade asset freezing 
     and other consequences of designation. Some FTOs have 
     dissolved and reconstituted themselves under a different name 
     or names, or merged with other organizations, even while 
     retaining the capability and intent to engage in terrorist 
     activity or terrorism. The difficulty of identifying all of 
     an organization's aliases also can slow down the process of 
     designating an organization as an FTO, creating unnecessary 
     delays that weaken an otherwise powerful tool for combating 
     international terrorism.
       This section would enhance the effectiveness and efficiency 
     of the designation process by adding explicit, streamlined 
     procedures for adding new aliases to an underlying 
     designation. It would allow the Secretary, or the Secretary's 
     designee if the Secretary subsequently delegates that 
     authority, to amend the existing administrative record for an 
     organization's designation, rather than requiring the 
     Secretary to create an additional administrative record in 
     support of the amendment.
       This section would require the Secretary of State (or the 
     Secretary's designee if the Secretary delegates that 
     authority) to make amendments in consultation with the 
     Attorney General and the Secretary of the Treasury (or their 
     designees if they delegate that authority), ensuring that 
     amendments reflect the expertise of Justice and Treasury. 
     Because it is a criminal offence to provide material support 
     or resources to a designated FTO, and because of the asset 
     blocking consequences of FTO designation, it is important 
     that designations be made in consultation with Justice and 
     Treasury. An organization covered by any such amendment also 
     would have the ability to seek judicial review of the 
     amendment or submit a petition to the Secretary for 
     revocation of an amendment.

                     TITLE VI--SECURITY ASSISTANCE

     SEC. 601. RESTRICTIONS ON ECONOMIC SUPPORT FUNDS (ESF) FOR 
                   LEBANON.

       The annual restriction that $10M of the ESF designated for 
     Lebanon be withheld from central government until the 
     President certifies their armed forces effectively assert 
     authority over Lebanon's southern border accomplishes little 
     beyond reducing the amount of ESF available to that country. 
     Since none of our ESF assistance monies go directly to the 
     government, but rather to NGOs, this restriction serves 
     neither as a carrot nor a stick from the perspective of the 
     Lebanese government. Rather, this provision restricts our 
     ability to promote democracy and economic development 
     precisely when we have a strong interest in helping Lebanon 
     rebuild its institutions. We believe that using this money in 
     water projects in southern Lebanon will help defuse Lebanese-
     Israeli tensions and would directly support USG efforts to 
     assure careful management of scarce water resources. Amending 
     this section to allow this funding to be used for water 
     projects would provide more transparency to Lebanese water 
     management and thereby more comfort to Israel, than would be 
     done by keeping this funding in escrow.

     SEC. 602. THRESHOLDS FOR CONGRESSIONAL NOTIFICATION OF FMS 
                   AND COMMERCIAL ARMS TRANSFERS.

       This section reflects the need for meaningfully increasing 
     the congressional notification thresholds for arms sales and 
     exports beyond the relatively modest increases for NATO and 
     Japan, Australia and New Zealand enacted in section 1404 of 
     the FY 2003 Foreign Relations Authorization Act. These recent 
     increases will only minimally reduce the number of 
     congressional notifications required and will, therefore, 
     result in the continued notification of what are often rather 
     insignificant sales of defense articles or services, 
     particularly since the recent threshold increases apply to so 
     few countries.
       The proposed revision would in effect repeal the modest 
     increases enacted last year and substitute in their place new 
     notification thresholds for defense sales and 
     exports applicable to all countries as follows: 
     $100,000,000 for Major Defense Equipment; $200,000,000 for 
     other defense articles and services; and, $500,000,000 for 
     design and construction services, sold via Foreign 
     Military Sales. The Administration plans to enhance its 
     process for consultation on cases of lesser value that may 
     nonetheless be sensitive in order to ensure an opportunity 
     for Congressional input and oversight. In that regard, the 
     Administration would be prepared to an exchange of letters 
     with the chairs and ranking members of the SFRC and the 
     HIRC, indicating that we would notify cases of concern to 
     the committees even though they might be of a lesser value 
     than the higher thresholds proposed by in this amendment.

     SEC. 603. BILATERAL AGREEMENT REQUIREMENTS RELATING TO 
                   LICENSING OF DEFENSE EXPORTS.

       The Security Assistance Act of 2000 converted into a legal 
     requirement the policy which set as a prerequisite for a 
     foreign country qualifying for a country exemption from 
     defense export licensing that the country have entered into a 
     binding bilateral agreement committing it to apply specific 
     defense export controls comparable to those of the United 
     States. Fundamental differences between U.S. law and the 
     legal regimes of the two countries with which the U.S. 
     commenced negotiations in July 2000, Australia and the U.K., 
     have proven that the specific commitments required by the law 
     are in many instances too strict or specific, making it very 
     difficult, if not impossible, to conclude an agreement that 
     will satisfy all the Act's requirements.
       To overcome this undue constraint on the President's 
     otherwise extremely flexible authorities to control 
     commercial defense trade, it is imperative, at very least, 
     that appropriate legislative relief be provided. The 
     amendment would allow the President to waive any of the law's 
     specific requirements for the agreement. This would give the 
     Administration, in this case the State Department, latitude 
     to conclude the best agreements that are achievable, and that 
     represent in its judgment sufficient significant improvements 
     in a country's defense export regulatory regime so as to 
     justify extending an exemption from U.S. defense export 
     licensing requirements. A second proposed revision would 
     narrow the scope of the commitments required of a foreign 
     country, to comport more with reasonable expectations that a 
     country would be 21 required to apply its enhanced defense 
     export controls mainly to U.S. origin defense items that are 
     exempt from U.S. licensing, which are harder to keep track 
     of, versus those items in that country that are subject to 
     U.S. licenses.

     SEC. 604. AUTHORIZATION OF APPROPRIATIONS.

       Subsection (a) authorizes $4,414,000,000 for fiscal year 
     2004 and such sums as may be necessary for fiscal year 2005 
     for Foreign Military Financing (``FMF'').
       Subsection (b) authorizes $91,700,000 for fiscal year 2004 
     and such sums as may be necessary for Fiscal Year 2005 for 
     the International Military Education and Training (IMET) 
     program. This requested level of funding for 2004 is an 
     increase of $6,700,000 over the Congress' authorization of 
     appropriations for fiscal year 2003 and reflects the 
     Administration's strong support for the IMET program.
       Subsection (c) authorizes $385,200,000 for fiscal year 2004 
     and such sums as may be necessary for fiscal year 2005 for 
     ``Nonproliferation, Anti-Terrorism, Demining, and Related 
     Programs.''

     SEC. 605. COOPERATIVE THREAT REDUCTION PERMANENT WAIVER.

       This section provides a permanent annual waiver for the 
     restrictions contained in subsection (d) of 22 U.S.C. 5952 
     and the requirements of section 502 of the Freedom Support 
     Act (Public Law 102-511). Section 1306 of the National 
     Defense Authorization Act for FY 2003 (Public Law 107-314) 
     provided authorization for an annual waiver only for Fiscal 
     Years 2003 through 2005. This permanent annual waiver would 
     ensure continuity for program planning purposes.

     SEC. 606. CONGRESSIONAL NOTIFICATION FOR COMPREHENSIVE 
                   DEFENSE EXPORT AUTHORIZATION.

       This provision amends section 36(d) of the Arms Export 
     Control Act to require congressional defense export 
     notifications for comprehensive defense export 
     authorizations. Specifically, the existing procedures for 
     such notifications of commercial defense exports 
     applicable under section 36(c) shall now apply in the case 
     of comprehensive defense export authorizations set forth 
     in section 126.14 of the International Traffic in Arms 
     Regulations where the estimated total value of the 
     transfers anticipated at the time of application meets the 
     value thresholds of subsection (c) (1). The amendment 
     addresses a Congressional concern that the congressional 
     notification provided by the Administration for the Global 
     Project Authorization, a type of comprehensive defense 
     export authorization provided for in the above mentioned 
     regulation, may not have necessarily been viewed to be 
     covered by section 36(c), despite the willingnesss to 
     provide such notification. This amendment will clarify 
     that such notifications are to be provided, pursuant to 
     the statute.

     SEC. 607. EXPANSION OF AUTHORITIES FOR LOAN OF MATERIAL, 
                   SUPPLIES, AND EQUIPMENT FOR RESEARCH AND 
                   DEVELOPMENT PURPOSES.

       The amendment would expand the scope of the authority under 
     section 65 of the Arms Export Control Act to loan items for 
     cooperative research and development beyond the current NATO 
     and major non-NATO ally recipients to include ``friendly 
     foreign countries'' as that term is used in section 27(j)(2) 
     of the Act. It would permit the loan authority to be used in 
     a manner that corresponds

[[Page S4853]]

     to that for the countries with which cooperative activities 
     may be conducted under section 27.

     SEC. 608. ESTABLISH DOLLAR THRESHOLD FOR CONGRESSIONAL 
                   NOTIFICATION OF EXCESS DEFENSE ARTICLES THAT 
                   ARE SIGNIFICANT MILITARY EQUIPMENT.

       This proposal seeks to establish the same dollar limit for 
     advance notification to Congress for all excess defense 
     articles. Currently, Congress requires advance notification 
     of all transfers of excess defense articles that are 
     Significant Military Equipment (SME), whereas Congress only 
     receives advance notification for those transfers of other 
     excess defense articles valued at $7 million or more. SME are 
     articles for which special export controls are warranted 
     because of their capacity for substantial military utility of 
     capability. This proposal would apply the $7 million advance 
     notice threshold to transfers of all excess defense 23 
     articles, including SME. This would reduce the number of 
     congressional notifications sent annually to Congress.

     SEC. 609. WAIVER OF NET PROCEEDS RESULTING FROM DISPOSAL OF 
                   U.S. DEFENSE ARTICLES PROVIDED TO A FOREIGN 
                   COUNTRY ON A GRANT BASIS.

       This proposal allows the President to waive the requirement 
     that net proceeds resulting from the disposal of defense 
     articles provided to a foreign country on a grant basis be 
     paid to the United States. Existing law limits the waiver 
     authority to items delivered before 1985. This proposal 
     supports the goal of reducing the volume of defense articles 
     worldwide, and reduces the potential that Defense articles 
     inadvertently may fall into the hands of parties hostile to 
     the United States. This legislation would retain the 
     requirement that the net proceeds greater than 5 percent of 
     the original acquisition value needs to be paid to the United 
     States Government, absent a Presidential determination that a 
     waiver is in the national interest of the United States.

     SEC. 610. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS DEFENSE 
                   ARTICLES IN THE WAR RESERVE STOCKPILES FOR 
                   ALLIES TO ISRAEL.

       This proposal provides the United States increased 
     authority to transfer obsolete or surplus defense items to 
     Israel, in exchange for concessions to be negotiated by the 
     Secretary of Defense. Section 514 of the Foreign Assistance 
     Act (FAA) of 1961 (22 U.S.C. 2321h) provides that defense 
     articles included in DoD War Reserve Stocks (WRS) be 
     transferred to foreign governments only through Foreign 
     Military Sales (where the foreign government buys the 
     articles) or through grant military assistance (where the 
     value of the article is counted against military assistance 
     appropriations provided for the recipient country). The DoD 
     maintains a WRS stockpile in Israel. This is a separate 
     stockpile of U.S.-owned munitions and equipment set aside, 
     reserved, or intended for use as war reserve stocks by the 
     U.S. and which may be transferred to the Government of Israel 
     in an emergency, subject to reimbursement. The DoD now seeks 
     authority from Congress to transfer to Israel certain of 
     these WRS stocks to Israel. In return for transferring these 
     stocks to Israel, the U.S. would negotiate equivalent value 
     concessions from the Government of Israel. This initiative is 
     not without precedent. During 1995-96 pursuant to section 
     509 of the FY94/FY95 Foreign Relations Authorization Act 
     (P.L. 103-236), the U.S. Government provided $66.62M (fair 
     market value) of WRS equipment to the Republic of Korea 
     (ROK) for equivalent value concessions. This proposal 
     would allow the U.S. to receive fair market value 
     consideration, relieve the U.S. Government of storage and 
     other stockpile maintenance costs, and avoid millions in 
     cost to demilitarize, destroy, or retrograde munitions and 
     equipment back to the U.S.

     SEC. 611. ADDITIONS TO U.S. WAR RESERVE STOCKPILES FOR 
                   ALLIES.

       This proposal would allow the United States to transfer 
     excess items to the DoD War Reserve Stock in Israel. Section 
     514(a) of the Foreign Assistance Act (FAA) of 1961, provides 
     for DoD War Reserve Stockpiles in a host country that remain 
     the property of the U.S. government. These stockpiles enable 
     equipment and supplies to be prepositioned in key parts of 
     the world to enhance U.S. and host country defense readiness. 
     DoD maintains a War Reserve Stockpile in Israel that directly 
     supports the U.S. European Command's strategy for the defense 
     of Israel. This proposal is necessary to allow the U.S. to 
     transfer excess items to the War Reserve Stockpile in Israel. 
     The transfer allows excess assets to remain under U.S. title 
     but shifts the costs for maintenance, storage, 
     transportation, and demilitarization of the excess munitions 
     to Israel. By agreement with Israel, the U.S. does not pay 
     for the storage, maintenance, transport, and warehousing of 
     assets designated as War Reserve Stockpile, although the 
     assets remain under U.S. title.

     SEC. 612. PROVISION OF CATALOGING DATA AND SERVICES.

       The United States provides cataloging data and services to 
     the North Atlantic Treaty Organization (NATO) and member 
     governments on a reciprocal basis. The United States also 
     provides such services to several non-NATO countries, such as 
     Australia and New Zealand, but on a reimbursable basis under 
     foreign military sales. There are instances when the 
     interests of the United States would best be served if such 
     data and services could be provided to a non-NATO country 
     under a reciprocal agreement. This section would authorize 25 
     the President to provide such services to non-NATO countries 
     on a reciprocal basis.
       For almost 50 years, the NATO Codification System, which is 
     based on United States standards for naming, describing and 
     numbering items of supply, has served as the cornerstone for 
     interoperability between the United States and its NATO 
     allies. Many non-NATO countries that participate in joint 
     exercises and deployments with the United States have adopted 
     the NATO Codification System. Facilitating the provision of 
     United States cataloging data for materials produced in the 
     United States has been and continues to be in the Nation's 
     strategic interest. This is especially true in light of 
     contingency operations that have and may be initiated in the 
     war on terrorism.

     SEC. 613. PROVISION TO EXERCISE WAIVERS WITH RESPECT TO 
                   PAKISTAN.

       This amending legislation would extend the authority 
     contained in P.L. 107-57 to make inapplicable for FY 2004 
     foreign assistance restrictions relating to coups with 
     respect to Pakistan and. would waive for FY 2005 any coup 
     restrictions applicable in that year so long as the President 
     exercised that authority prior to October 1, 2005, the 
     amended and extended date of expiration of this amendment. It 
     would also make inapplicable foreign assistance restrictions 
     relating to debt with respect to Pakistan through fiscal year 
     2005. With respect to missile sanctions, the amendment would 
     extend the authority of current law waiving the notification 
     period for a missile sanction waiver with respect to any 
     sanctions imposed on foreign persons in Pakistan. It would 
     also continue the reduced notification period for drawdowns 
     and transfer of excess defense articles.
       The coup waiver of section 508 of the Foreign Operations 
     Appropriations Act in Section 1 is most critical for 
     Pakistan. Section 1(b)(1), as amended, would legislatively 
     extend the authority to waive coup-related sanctions for 
     Pakistan for FY 2004 and FY 2005--the President has waived 
     the sanction for FY 2003 under the current authority. Five 
     (5) days advance notice to Congress required under P.L 107-57 
     is continued. Section 2, as amended, would waive the 
     requirement for a 45 day advance notification to Congress 
     prior to waiving the missile 26 sanctions imposed on Pakistan 
     pursuant to section 73 of the AECA with respect to any such 
     sanctions imposed on foreign persons in Pakistan (versus 
     waiving only with respect to those sanctions imposed prior to 
     January 1, 2001, which would have already expired in any 
     event). Section 3 exempts Pakistan from foreign assistance 
     prohibitions in section 512 of the Foreign Operations 
     Appropriations Act relating to loan defaults by foreign 
     nations and similar restrictions contained in the Foreign 
     Assistance Act through fiscal year 2005, the period through 
     which the exemptions or waiver authority with respect to the 
     coup sanctions would be extended by these amendments.

  TITLE VII--INTERNATIONAL PARENTAL CHILD ABDUCTION PREVENTION ACT OF 
                                  2003

       General: The International Parental Child Abduction 
     Prevention Act of 2003 would amend Section 212(a)(10)(C) of 
     the Immigration and Nationality Act (INA) and is proposed to 
     provide additional tools to deter international parental 
     child abduction and/or wrongful retention, and to create 
     incentives for the return of children abducted from or 
     wrongfully retained outside the United States by their 
     foreign national parent or others., This measure's efficacy 
     in particular cases of international child abduction will 
     necessarily depend in large part on the degree to which the 
     taking parent and/or their family members desire to travel to 
     the United States and apply for a visa. Unlike legislation 
     proposed last year in the Government Reform Committee, this 
     measure would not adversely affect the lives or travel of 
     innocent adult American citizens. This legislation also 
     seeks. to avoid certain counterproductive definitional 
     difficulties from which the earlier proposals suffered, while 
     achieving many of the same results intended.
       Section 702(a)(3). This provision would expand the range of 
     persons who could be designated inadmissible by the Secretary 
     of State in international child abduction and wrongful 
     retention cases, even though those individuals were not 
     culpable in the abduction or wrongful retention. This would 
     be accomplished by amending existing subclause (III) of INA 
     212(a)(10)(C)(ii) to include a wider range of persons who 
     could be designated inadmissible based on their familial 
     connections to an abducting alien.
       Sections 702(a)(4) and (5). This language specifies the 
     circumstances under which inadmissibility based on any one of 
     subclauses I, II, or III of INA 212(a)(10)(C)(ii) will 
     terminate. It also makes a purely technical amendment to 
     clarify that the concluding clause of (C)(ii) is the 
     operative provision for subclauses (C)(ii)(I), (II), and 
     (III). As originally enacted, the concluding clause is 
     erroneously printed as if it were part of subclause (III), 
     when it in fact clearly applies to each of subclauses (I)-
     (III). Finally, the concluding clause is amended to provide 
     that inadmissibility based on (C)(ii) would terminate with 
     the return of the abducted child or the child's attainment of 
     age 21.
       Section 702(b). This would create new subsections (iv)-
     (vii). Subsection (iv) would (1) make explicit the Secretary 
     of State's authority to cancel designations of 
     inadmissibility applicable to relatives of abductors,

[[Page S4854]]

     and (2) make clear that inadmissibility pursuant to 
     subclauses (I) and (II) (which is not discretionary) will 
     expire only on occurrence of the events specified in INA 
     212(a)(10)(C)(ii) (the return of the abducted child or the 
     child reaching age 21). These amendments will maximize the 
     leverage available to the Department when inadmissibility is 
     used to encourage relatives to place pressure on abductors 
     for the return of abducted children.
       New subsection (v) would require the Department of State to 
     identify the persons potentially inadmissible under clause 
     (ii) of INA 212(a)(10)(C) .
       New subsection (vi) would require the Department to enter 
     the names of persons inadmissible or potentially inadmissible 
     for a visa under subsections (i) or (ii) of INA 212(a)(10)(C) 
     into the visa lookout system. Together these requirements 
     would codify what the Department does through its intake 
     procedures to ensure that individuals who may be inadmissible 
     under the provisions of subsections (C)(i) and (ii) are 
     identified and that their names are entered into the visa 
     lookout system.
       New subsection (vii) defines ``child'' in a way that is not 
     inconsistent with the word's meaning throughout the INA while 
     taking account of concerns about abducted or wrongfully 
     retained children who marry at very young ages, often against 
     their will. The definition proposed seeks to avoid the 
     unintended consequences of potential alternatives. For 
     example, H.R. 5715, introduced last session, would have 
     effectively created a class of permanent children for 
     purposes of the visa ineligibility laws, frustrating the 
     Department's efforts to promote reconciliation and contact 
     within what are often multinational families. The effect of 
     the definition proposed in H.R. 5715 would have been to 
     compromise the rights normally accorded adult U.S. citizens 
     to travel while doing little to promote the return of 
     abducted or wrongfully removed children. This subsection also 
     changes the definition of ``sibling'' to include step- and 
     half-siblings.
       Section 702(c). Finally, this Title includes a requirement 
     that the Department of State report to Congress annually for 
     five years with a description of the operation of 
     212(a)(10)(C), including data on the number of visas denied 
     and names entered into the visa lookout system on the basis 
     of the statute. The report will provide Congress with 
     information useful to its ongoing communication with the 
     Department about the effectiveness of efforts to deter 
     international parental child abductions and to promote the 
     return of abducted and wrongfully retained American children 
     to the United States.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

            Subtitle A--Streamlining Reporting Requirements

     SEC. 801. REPORTS ON BENCHMARKS FOR BOSNIA.

       This section would eliminate reporting requirements on 
     progress toward achieving the benchmarks for a sustainable 
     peace process in Bosnia that must be done as long as U.S. 
     ground combat forces continue to participate in the SFOR. 
     Significant reductions in U.S. and allied troops have 
     continued regularly since 1998. Regular briefings to 
     congressional staff (and Members, as desired) are sufficient 
     to address continuing concerns. This is a very timeconsuming 
     report for the Departments of State and Defense.

     SEC. 802. REPORT CONCERNING THE GERMAN FOUNDATION 
                   ``REMEMBRANCE, RESPONSBILITY, AND THE FUTURE.''

       This section would repeal this semi-annual report required 
     by section 704 of the FY 2003 Foreign Relations Authorization 
     Act. The State Department, in particular the office of the 
     Special Envoy on Holocaust Issues, offers regular formal and 
     informal briefings to Members and staff on this issue. This 
     report duplicates the information conveyed at these 
     briefings. Moreover, we have no authority to require the 
     ``Eagleburger Commission'' (the International Commission on 
     Holocaust Era Insurance Claims, or ICHEIC) or the Conference 
     on Jewish Material Claims against Germany to supply the data 
     needed for this report.

     SEC. 803. REPORT ON PROGRESS IN CYPRUS.

       This report is currently due every two months. This section 
     would change it to a semi-annual requirement. The 
     Administration is in regular contact with Congress on the 
     Cyprus situation. Generally, the situation does not change 
     rapidly in two months. If it did, the Administration would 
     brief Congress immediately.

     SEC. 804. REPORTS ON ACTIVITIES IN COLOMBIA.

       This section repeals the two reports required by section 
     694 of the FY 2003 Authorization Act (P.L. 107-228).
       Section 694(a) requires the Secretary, not later than 180 
     days after the enactment of the Foreign Relations 
     Authorization Act, Fiscal Year 2003, and annually thereafter 
     to report to Congress on the status of activities funded or 
     authorized, in whole or in part, by the Department or the 
     Department of Defense in Colombia to promote alternative 
     development, recovery and resettlement of internally 
     displaced persons, judicial reform, the peace process, and 
     human rights. This report duplicates material from a number 
     of other reports on Colombia:
       USAID includes much of the information that Section 694(a) 
     requires in the Congressional Budget Justification it submits 
     annually. For each program area, USAID provides progress on 
     implementation.
       Although it does not specifically address U.S.-funded 
     activities, the Department's annual Country Reports on Human 
     Rights Practices contain detailed information concerning 
     human rights and internally displaced persons in Colombia.
       Although not specifically required to report on internally 
     displaced persons, judicial reform, the peace process, and 
     general human rights matters, a number of other reports 
     typically include information on these issues:
       Pursuant to section 564(c) of the FY 2003 Foreign 
     Operations, Export Financing, and Related Programs 
     Appropriations Act (P.L. 108-7), the Secretary is required to 
     submit two reports and certifications to Congress in 
     conjunction with the obligation of funds for the Colombian 
     Armed Forces describing actions taken by the Colombian Armed 
     Forces to meet the human rights conditions on the provision 
     of assistance in section 564(a).
       Pursuant to section 3204(e) of the Military Construction 
     Appropriations Act, 2001 (P.L. 106-246), the President is 
     required to report to Congress semiannually through Fiscal 
     Year 2005 on costs incurred by any department, agency, or 
     other entity of the executive branch during the two previous 
     quarters in support of Plan Colombia. Each of those reports 
     includes information on subobligations of funds by the 
     Department of State in support of Plan Colombia.
       Pursuant to section 3204(f) of P.L. 106-246, the President 
     provides a bimonthly, classified report to Congress on the 
     aggregate number, locations, activities, and lengths of 
     assignments for all U.S. military personnel and U.S. 
     individuals civilians retained as contractors involved in the 
     antinarcotics campaign in Colombia. These reports include 
     certain information on contract personnel who are 
     participating in U.S.-funded efforts to promote alternative 
     development, recovery and resettlement of internally 
     displaced persons, judicial reform, the peace process, or 
     human rights.
       Finally, it is burdensome and inefficient to require the 
     Department of State to report on activities of the Department 
     of Defense.
       Section 694(b) requires an annual report on the activities 
     of U.S. businesses that have entered into agreements in the 
     previous 12-month period with the Departments of State or 
     Defense to carry our counternarcotics activities in Colombia. 
     Information responding to some of the information sought in 
     this report is available in the classified report we submit 
     to the Congress bimonthly pursuant to section 3204(f) of P.L. 
     106-246. We also cannot easily track and report on DOD's 
     contract activities.
       We are also concerned that recurrent, public reporting of 
     the names of businesses under contract to the Department of 
     State to support counternarcotics activities is likely to 
     increase the security risks to these businesses and their 
     employees both in Colombia and the United States. The 
     Department finances contracts for counternarcotics support in 
     Colombia expressly because the Colombian National Police 
     cannot meet the need for all services. P.L. 106-246, as 
     amended by the FY 2002 Foreign Operations Act (P.L. 107-115), 
     already provides limitations on the numbers of U.S. contract 
     personnel permitted in Colombia in support of 
     counternarcotics programs. Moreover, the Department is making 
     every effort to minimize the number of U.S. citizen personnel 
     employed by its contractors. The U.S. Embassy in Colombia 
     continually assesses the potential for U.S. businesses to be 
     involved in hostilities, and the risks to personal safety of 
     their personnel. These risks vary widely from day to day and 
     week to week. A report at any given moment in time would not 
     have general applicability.

     SEC. 805. REPORT ON EXTRADITION OF NARCOTICS TRAFFICKERS.

       This section repeals Section 3203 of the 2001 Military 
     Construction Appropriations Act. This section requires the 
     Secretary of State to report biannually during the period 
     Plan Colombia resources are made available on extradition of 
     narcotics traffickers from any country receiving assistance 
     in support of Plan Colombia from the U.S. This reporting 
     requirement is burdensome and duplicative of other required 
     reports. For instance, section 696 of the FY 2003 Foreign 
     Relations Authorization Act requires the Secretary of State 
     to submit a report on extradition practice between the United 
     States and governments of all foreign countries with which 
     the United States has an extradition relationship that 
     contains numerous similar requirements. This section 696 
     report includes: an aggregate list, by country, of the number 
     of extradition requests made by the United States to that 
     country in 2002; the number of fugitives extradited by that 
     country to the United States in 2002; an aggregate list, by 
     country, of the number of extradition requests made by that 
     country to the United States in 2002 and the number of 
     fugitives extradited by the United States to that country in 
     2002; any other relevant information regarding difficulties 
     the United States has experienced in obtaining the 
     extradition of fugitives; and a summary of the Department's 
     efforts in 2002 to negotiate new or revised extradition 
     treaties and its agenda for such negotiations in 2003. 
     Additionally, the Department's annual International Narcotics 
     Control Strategy Report also contains certain information 
     about extradition from countries worldwide with which we have 
     extradition treaties in force. We would also be happy to 
     brief members of Congress or their staffs on any issues of 
     particular concern.

[[Page S4855]]

     SEC. 806. REPORT ON TERRORIST ACTIVITY IN WHICH UNITED STATES 
                   CIVILIANS WERE KILLED AND RELATED MATTERS.

       This section would eliminate this semi-annual report. The 
     information is already available elsewhere: the Americans 
     killed overseas in terrorist attacks are prominently listed 
     in the Introduction to the Department's annual Patterns of 
     Global Terrorism report to Congress, and the names are 
     available on the State Department's Rewards for Justice 
     web-site. PLO activities are also covered in the semi-
     annual PLO Compliance with Obligations Under the Oslo 
     Accords Report. Moreover, the names and details of 
     Americans killed overseas in terrorist attacks are well 
     covered in the press. The separate compilation and 
     preparation of a report specifically on American 
     casualties diverts scarce manpower resources from other 
     activities to fight terrorism.

     SEC. 807. REPORT AND WAIVER REGARDING EMBASSY IN JERUSALEM.

       This section would make the waiver and accompanying report 
     an annual, rather than semi-annual, requirement. The 
     Jerusalem Embassy Act prohibits obligation of more than our 
     annual overseas building acquisition and maintenance 
     appropriation unless the Secretary reports to Congress that 
     we have opened an embassy in Jerusalem. This prohibition may 
     be waived for successive six-month periods on ``national 
     security interest'' grounds; each waiver must be accompanied 
     by a report detailing progress made during the preceding six 
     months on moving our embassy to Jerusalem. Although the 
     reports have not significantly varied from one another, they 
     still require a significant amount of work to draft and 
     clear.

     SEC. 808. REPORT ON PROGRESS TOWARD REGIONAL 
                   NONPROLIFERATION.

       This section repeals section 620F(c) of the Foreign 
     Assistance Act of 1961 which addresses efforts made by the 
     United States to achieve regional agreement on nuclear 
     nonproliferation in South Asia and a list of obstacles to 
     such an agreement. The report is duplicative, since South 
     Asia nonproliferation issues are covered extensively in other 
     classified and unclassified reports by State and the CIA. For 
     example, India and Pakistan are included in the major 
     nonproliferation report done annually pursuant to section 
     1308 of the FY 2003 Foreign Relations Authorization Act and 
     in the CIA's annual ``721 Report'' on proliferation 
     activities.

     SEC. 809. REPORT ON ANNUAL ESTIMATE AND JUSTIFICATION FOR 
                   SALES PROGRAM.

       Section 25(a) requires the President to submit a report to 
     the SFRC, HIRC, and the House and Senate Appropriations 
     Committees by February 1 of each year listing all FMS and 
     commercial sales of military hardware anticipated in the 
     coming year. Preparation of this report is extremely labor-
     intensive, as security assistance officers at U.S. embassies 
     around the world must begin compiling data in October. 
     Unfortunately, while this report grows in size and complexity 
     each year, its value and utility are increasingly 
     questionable. Since the report includes all possible U.S. 
     sales of military equipment (760 in 2002) and has a dollar 
     threshold for reporting sales that is half that required for 
     congressional notification of actual sales, it includes a 
     large number of potential sales that are too minor to have 
     genuine military significance, or, in fact, never 
     materialize. In recent years, less than 20% of the entries on 
     the report (58 pages long in 2002) result in actual sales 
     during the reporting year. It is also redundant as a 
     reporting channel. The congressional committees that receive 
     this report also receive similar data for FMS sales on a 
     quarterly basis from reports provided under DSCA under 
     section 36(a)(6) of the AECA which cover all projected FMS 
     sales through the end of the year. Furthermore, 
     prenotification consultations assure that congressional staff 
     are advised of potentially controversial transfers well in 
     advance of formal notification.

     SEC. 810. REPORT ON FOREIGN MILITARY TRAINING.

       This section seeks to bring the military training report 
     required by section 656 of the Foreign Assistance Act of 1961 
     into conformity with a very similar report required in the 
     annual Foreign Operations Appropriation Acts (FOAA) and to 
     eliminate those portions of the current section 656 
     requirement that make it necessary to classify major portions 
     of the report. We intend to seek a similar amendment to the 
     FOAA requirement.
       To bring the section 656 requirement into conformity with 
     that of the FOAA, this amendment ``excludes training provided 
     through sales'' from the reporting requirement and changes 
     the date upon which the report is due to the Congress from 
     January 31 to March 1.
       To eliminate the portions of the report that must be 
     classified due to foreign policy or force protection reasons, 
     this amendment would eliminate the requirement to report on 
     projected training (i.e., ``training proposed for the current 
     fiscal year''), training locations, the U.S. military units 
     providing the training, and training provided through sales. 
     With these changes, a completely unclassified report could be 
     produced that would be accessible to a wider public audience.

     SEC. 811. REPORT ON HUMAN RIGHTS VIOLATIONS BY IMET 
                   PARTICIPANTS.

       This section would repeal the report on human rights 
     required by section 549 of the Foreign Assistance Act of 1961 
     (added by section 1212 of the FY 2003 Foreign Relations 
     Authorization Act). This report requires the Secretary of 
     State to submit an annual report ``describing, to the extent 
     practicable, any involvement of any foreign military or 
     defense ministry civilian participant in . . . [the IMET 
     program] in a violation of internationally recognized human 
     rights.'' This provision sends the very dangerous signal that 
     the USG will be tracking anyone enrolled in IMET thereafter. 
     This will deter people from participating in IMET and, thus, 
     damage U.S. national security interests. Moreover, while the 
     Bureau of Democracy and Human Rights maintains data necessary 
     to prepare the annual Human Rights Report, data is not 
     systematically collected on individual human rights 
     violators. As a result, if the department were required to 
     report on human rights violators who attended IMET courses 
     prior to the enactment of the Leahy Laws, we would be forced 
     to rely on the records and memories of security assistance 
     officers in U.S. embassies around the world which would 
     likely be of uneven quality.

     SEC. 812. REPORT ON DEVELOPMENT OF THE EUROPEAN SECURITY AND 
                   DEFENSE IDENTITY (ESDI) WITHIN THE NATO 
                   ALLIANCE.

       The provision in section 1223 (22 U.S.C. 1928 note) 
     requires the Secretary of Defense to provide Congress with 
     various reports on the development of the European Security 
     and Defense Identity (ESDI) within the NATO Alliance. The 
     ESDI would enable the Western European Union, with the 
     consent of the NATO Alliance, to assume the political control 
     and strategic direction of specified NATO assets and 
     capabilities. This report is obsolete and provides 
     information of limited utility. The requested information is 
     no longer relevant and does not reflect the shift in focus 
     between the European Union and NATO.

     SEC. 813. REPORT ON TRANSFERS OF MILITARY SENSITIVE 
                   TECHNOLOGY TO COUNTRIES AND ENTITIES OF 
                   CONCERN.

       The provision in section 1402(b)(2) (22 U.S.C. 2778) 
     requires the Secretary of Defense, in consultation with the 
     Joint Chiefs of Staff and the Director of Central 
     Intelligence, to provide Congress with an assessment of the 
     cumulative impact of licenses granted by the U.S. for exports 
     of technologies and technical information with potential 
     military applications during the preceding 5-calendar year 
     period on the military capabilities of such countries and 
     entities, and countermeasures that may be necessary to 
     overcome the use of such technologies and technical 
     information. This report is redundant with reports already 
     submitted to Congress by the Department of State, the 
     Department of Commerce, and the Central Intelligence Agency.

                       Subtitle B--Other Matters

     SEC. 814. NUCLEAR REPROCESSING TRANSFER WAIVER.

       This section would amend section 102(a) of the Arms Export 
     Control Act so as to permit Presidential waivers to be 
     granted once again on a one-time, rather than fiscal year, 
     basis. When the Nuclear Proliferation Prevention Act of 1994 
     (NPPA) folded section 670 of the Foreign Assistance Act (the 
     so-called ``Glenn Amendment'', dealing with nuclear 
     reprocessing transfers) into the Arms Export Control Act as a 
     new section 102(a), the NPPA modified the waiver authority 
     originally in section 670. This change eliminated the 
     President's ability to grant one-time waivers from sanctions 
     (cutoff of U.S. economic and military assistance) and 
     replaced it with a requirement that any waivers may only be 
     granted in the fiscal year to which they will apply. The 
     ramifications of this change only became clear after there 
     were real cases to deal with. Specifically, any country, 
     having once been determined by President to have violated 
     section 102(a), is placed in an enduring and 
     unchangeable state of annual jeopardy of a U.S. aid 
     cutoff. This is the case even where the activity that 
     triggered the violation was subsequently terminated, the 
     countries involved are not proliferation threats, and the 
     U.S. is fully satisfied with these countries' current 
     nuclear nonproliferation policies and practices. We do not 
     believe that this was the intent of Congress when it made 
     the waiver provision change.
       The re-establishment of the authority for the President to 
     grant one-time waivers under section 102(a) would not 
     eliminate our nuclear nonproliferation leverage under this 
     section since the President has the authority to impose 
     sanctions should any resumed or new activities occur. More 
     importantly, the processing of annual waivers from section 
     102(a) sanctions for situations long since satisfactorily 
     resolved is not a constructive use of this and future 
     Presidents' time and has a continuing potential to be an 
     irritant to our relations with these countries. The President 
     has no authority to put this situation to rest once and for 
     all absent a change in the law to allow, once again, one-time 
     waivers for Glenn Amendment violations.

     SEC. 815. COMPLEX FOREIGN CONTINGENCIES.

       This section authorizes the President to provide assistance 
     to quickly and effectively respond to or prevent unforeseen 
     complex foreign crises. This authority will be used to 
     provide assistance for a range of foreign assistance 
     activities, including support for peace and humanitarian 
     intervention operations to prevent or to respond to foreign 
     territorial disputes, armed ethnic and civil conflicts that 
     pose threats to regional and international peace, and acts of 
     ethnic cleansing, mass killing or genocide. Use of this 
     authority will require a determination

[[Page S4856]]

     by the President that a complex emergency exists and that it 
     is in the national interest to furnish assistance in 
     response. These authorities will not be used to fund 
     assistance activities in response to natural disasters 
     because existing contingency funding is available for that 
     purpose. This section authorizes appropriation of such sums 
     as may be necessary.


                                          Department of State,

                                    Washington, DC, April 2, 2003.
     Hon. Richard G. Lugar,
     Chairman, Committee on Foreign Relations,
     U.S. Senate.
       Dear Mr. Chairman: I am pleased to transmit proposed 
     legislation to authorize appropriations for the Department of 
     State to carry out its authorities and responsibilities in 
     the conduct of foreign affairs for fiscal years 2004 and 
     2005.
       The attached FY 2004-2005 Foreign Relations Authorization 
     Bill also contains provisions related to Department of State 
     authorities and activities, organization and personnel, 
     international organizations, security assistance, child 
     abduction prevention, and other miscellaneous provisions.
       Key sections for the Department, in addition to the FY 
     2004-2005 authorization of appropriations, would raise the 
     peacekeeping assessment cap, provide for a permanent annual 
     CTR waiver, and provide for greater flexibility in our 
     administration of security assistance. Also included is an 
     emergency fund for complex foreign crises which may be 
     important to operations in Iraq.
       Title VII of the proposed legislation, the International 
     Parental Child Abduction Prevention Act of 2003, is designed 
     to deter international abductions and unlawful retentions and 
     pressure an abductor to return a child to the parent with 
     lawful custody. This could provide an important new lever in 
     addressing child abductions worldwide.
       The FY 2004 Budget contains the first step toward a capital 
     security cost sharing program that will ensure that all 
     agencies and departments pay a fair share of the cost of new, 
     secure diplomatic and consular facilities. The full program 
     implementation is now under development, and a legislative 
     proposal may be forwarded at a later date. Other provisions 
     may be submitted in the near future in a supplemental 
     package. The Office of Management and Budget advises that 
     there is no objection to the submission of this proposed 
     legislation to the Congress and that its enactment would be 
     in accord with the President's program.
       We look forward to working with the Committee on this 
     important legislation.
           Sincerely,

                                                Paul V. Kelly,

                                              Assistant Secretary,
     Legislative Affairs.

                          ____________________