[Congressional Record (Bound Edition), Volume 150 (2004), Part 12]
[House]
[Pages 15818-15845]
[From the U.S. Government Publishing Office, www.gpo.gov]




       FOREIGN OPERATIONS, EXPORT FINANCING AND RELATED PROGRAMS 
                        APPROPRIATIONS ACT, 2005

  The SPEAKER pro tempore. Pursuant to House Resolution 715 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the State of the Union for the further consideration of the bill, 
H.R. 4818.

                              {time}  1333


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the State of the Union for the further consideration of 
the bill (H.R. 4818) making appropriations for foreign operations, 
export financing, and related programs for the fiscal year ending 
September 30, 2005, and for other purposes.
  The Clerk read the title of the bill.
  The CHAIRMAN. When the Committee of the Whole rose earlier today, a 
request for a recorded vote on amendment No. 20 by the gentleman from 
California (Mr. Sherman) had been postponed, and the bill was open from 
page 6, line 16 to page 12, line 4.
  Pursuant to the order of the House of today, the remainder of the 
bill is considered as having been read and open for amendment at any 
point.
  The text of the remainder of H.R. 4818 is as follows:


                         development assistance

       For necessary expenses of the United States Agency for 
     International Development to carry out the provisions of 
     sections 103, 105, 106, and 131, and chapter 10 of part I of 
     the Foreign Assistance Act of 1961, $1,429,000,000, to remain 
     available until September 30, 2006: Provided, That 
     $194,000,000 should be allocated for trade capacity building: 
     Provided further, That $300,000,000 should be allocated for 
     basic education: Provided further, That of the funds 
     appropriated under this heading and managed by the United 
     States Agency for International Development Bureau of 
     Democracy, Conflict, and Humanitarian Assistance, not less 
     than $15,000,000 shall be made available only for programs to 
     improve women's leadership capacity in recipient countries: 
     Provided further, That such funds may not be made available 
     for construction: Provided further, That of the funds 
     appropriated under this heading that are made available for 
     assistance programs for displaced and orphaned children and 
     victims of war, not to exceed $32,500, in

[[Page 15819]]

     addition to funds otherwise available for such purposes, may 
     be used to monitor and provide oversight of such programs.


              international disaster and famine assistance

       For necessary expenses of the United States Agency for 
     International Development to carry out the provisions of 
     section 491 of the Foreign Assistance Act of 1961 for 
     international disaster relief, rehabilitation, and 
     reconstruction assistance, $335,500,000, to remain available 
     until expended.
       In addition, for necessary expenses for assistance for 
     famine prevention and relief, including for mitigation of the 
     effects of famine, $20,000,000, to remain available until 
     expended: Provided, That such funds shall be made available 
     utilizing the general authorities of section 491 of the 
     Foreign Assistance Act of 1961, and shall be in addition to 
     amounts otherwise available for such purposes: Provided 
     further, That funds appropriated by this paragraph shall be 
     available for obligation subject to prior consultation with 
     the Committees on Appropriations.


                         transition initiatives

       For necessary expenses for international disaster 
     rehabilitation and reconstruction assistance pursuant to 
     section 491 of the Foreign Assistance Act of 1961, 
     $47,500,000, to remain available until expended, to support 
     transition to democracy and to long-term development of 
     countries in crisis: Provided, That such support may include 
     assistance to develop, strengthen, or preserve democratic 
     institutions and processes, revitalize basic infrastructure, 
     and foster the peaceful resolution of conflict: Provided 
     further, That the United States Agency for International 
     Development shall submit a report to the Committees on 
     Appropriations at least 5 days prior to beginning a new 
     program of assistance: Provided further, That if the 
     President determines that it is important to the national 
     interests of the United States to provide transition 
     assistance in excess of the amount appropriated under this 
     heading, up to $15,000,000 of the funds appropriated by this 
     Act to carry out the provisions of part I of the Foreign 
     Assistance Act of 1961 may be used for purposes of this 
     heading and under the authorities applicable to funds 
     appropriated under this heading:  Provided further, That 
     funds made available pursuant to the previous proviso shall 
     be made available subject to prior consultation with the 
     Committees on Appropriations.


                      development credit authority

                     (including transfer of funds)

       For the cost of direct loans and loan guarantees provided 
     by the United States Agency for International Development, as 
     authorized by sections 108 and 635 of the Foreign Assistance 
     Act of 1961, funds may be derived by transfer from funds 
     appropriated by this Act to carry out part I of such Act and 
     under the heading ``Assistance for Eastern Europe and the 
     Baltic States'': Provided, That such funds shall not exceed 
     $21,000,000, which shall be made available only for micro and 
     small enterprise programs, urban programs, and other programs 
     which further the purposes of part I of the Act: Provided 
     further, That such costs, including the cost of modifying 
     such direct and guaranteed loans, shall be as defined in 
     section 502 of the Congressional Budget Act of 1974, as 
     amended: Provided further,  That funds made available by this 
     paragraph may be used for the cost of modifying any such 
     guaranteed loans under this Act or prior Acts, and funds used 
     for such costs shall be subject to the regular notification 
     procedures of the Committees on Appropriations: Provided 
     further, That the provisions of section 107A(d) (relating to 
     general provisions applicable to the Development Credit 
     Authority) of the Foreign Assistance Act of 1961, as 
     contained in section 306 of H.R. 1486 as reported by the 
     House Committee on International Relations on May 9, 1997, 
     shall be applicable to direct loans and loan guarantees 
     provided under this heading.
       In addition, for administrative expenses to carry out 
     credit programs administered by the United States Agency for 
     International Development, $8,000,000, which may be 
     transferred to and merged with the appropriation for 
     Operating Expenses of the United States Agency for 
     International Development: Provided, That funds made 
     available under this heading shall remain available until 
     September 30, 2007.


     payment to the foreign service retirement and disability fund

       For payment to the ``Foreign Service Retirement and 
     Disability Fund'', as authorized by the Foreign Service Act 
     of 1980, $42,500,000.


   operating expenses of the united states agency for international 
                              development

       For necessary expenses to carry out the provisions of 
     section 667 of the Foreign Assistance Act of 1961, 
     $618,000,000, of which up to $25,000,000 may remain available 
     until September 30, 2006: Provided, That none of the funds 
     appropriated under this heading and under the heading 
     ``Capital Investment Fund'' may be made available to finance 
     the construction (including architect and engineering 
     services), purchase, or long term lease of offices for use by 
     the United States Agency for International Development, 
     unless the Administrator has identified such proposed 
     construction (including architect and engineering services), 
     purchase, or long term lease of offices in a report submitted 
     to the Committees on Appropriations at least 15 days prior to 
     the obligation of these funds for such purposes: Provided 
     further, That the previous proviso shall not apply where the 
     total cost of construction (including architect and 
     engineering services), purchase, or long term lease of 
     offices does not exceed $1,000,000: Provided further, That 
     contracts or agreements entered into with funds appropriated 
     under this heading may entail commitments for the expenditure 
     of such funds through fiscal year 2006: Provided further, 
     That none of the funds in this Act may be used to open a new 
     overseas mission of the United States Agency for 
     International Development without the prior written 
     notification of the Committees on Appropriations: Provided 
     further, That the authority of sections 610 and 109 of the 
     Foreign Assistance Act of 1961 may be exercised by the 
     Secretary of State to transfer funds appropriated to carry 
     out chapter 1 of part I of such Act to ``Operating Expenses 
     of the United States Agency for International Development'' 
     in accordance with the provisions of those sections.


                        Capital investment fund

       For necessary expenses for overseas construction and 
     related costs, and for the procurement and enhancement of 
     information technology and related capital investments, 
     pursuant to section 667 of the Foreign Assistance Act of 
     1961, $64,800,000, to remain available until expended: 
     Provided, That this amount is in addition to funds otherwise 
     available for such purposes: Provided further, That funds 
     appropriated under this heading shall be available for 
     obligation only pursuant to the regular notification 
     procedures of the Committees on Appropriations: Provided 
     further, That funds appropriated under this heading and under 
     the heading ``Operating Expenses of the United States Agency 
     for International Development'' may be made available for 
     USAID's contribution to the Capital Cost Sharing Program only 
     if all other agencies who have agreed to participate in that 
     program during the current fiscal year are making their 
     contributions to the program.


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

       For necessary expenses to carry out the provisions of 
     section 667 of the Foreign Assistance Act of 1961, 
     $35,000,000, to remain available until September 30, 2006, 
     which sum shall be available for the Office of the Inspector 
     General of the United States Agency for International 
     Development.

                  Other Bilateral Economic Assistance


                         economic support fund

       For necessary expenses to carry out the provisions of 
     chapter 4 of part II, $2,450,000,000, to remain available 
     until September 30, 2006: Provided, That of the funds 
     appropriated under this heading, not less than $360,000,000 
     shall be available only for Israel, which sum shall be 
     available on a grant basis as a cash transfer and shall be 
     disbursed within 30 days of the enactment of this Act or by 
     October 31, 2004, whichever is later: Provided further, That 
     not less than $535,000,000 shall be available only for Egypt, 
     which sum shall be provided on a grant basis, and of which 
     sum cash transfer assistance shall be provided with the 
     understanding that Egypt will undertake significant economic 
     reforms which are additional to those which were undertaken 
     in previous fiscal years: Provided further, That in 
     exercising the authority to provide cash transfer assistance 
     for Israel, the President shall ensure that the level of such 
     assistance does not cause an adverse impact on the total 
     level of nonmilitary exports from the United States to such 
     country and that Israel enters into a side letter agreement 
     in an amount proportional to the fiscal year 1999 agreement: 
     Provided further, That of the funds appropriated under this 
     heading, not less than $250,000,000 should be made available 
     only for assistance for Jordan: Provided further, That not to 
     exceed $200,000,000 of the funds appropriated under this 
     heading may be used for the costs, as defined in section 502 
     of the Congressional Budget Act of 1974, of modifying direct 
     loans and guarantees for Pakistan: Provided further, That 
     amounts that are made available under the previous proviso 
     for the cost of modifying direct loans and guarantees shall 
     not be considered ``assistance'' for the purposes of 
     provisions of law limiting assistance to a country: Provided 
     further, That $13,500,000 of the funds appropriated under 
     this heading should be made available for Cyprus to be used 
     only for scholarships, administrative support of the 
     scholarship program, bicommunal projects, and measures aimed 
     at reunification of the island and designed to reduce 
     tensions and promote peace and cooperation between the two 
     communities on Cyprus: Provided further, That $35,000,000 of 
     the funds appropriated under this heading should be made 
     available for assistance for Lebanon, of which not less than 
     $4,000,000 should be made available for scholarships and 
     direct support of American educational institutions in 
     Lebanon: Provided further, That funds appropriated under this 
     heading that are made available for assistance for the 
     Central Government of Lebanon shall be subject to the regular 
     notification

[[Page 15820]]

     procedures of the Committees on Appropriations: Provided 
     further, That $22,000,000 of the funds appropriated under 
     this heading should be made available for assistance for the 
     Democratic Republic of Timor-Leste: Provided further, That 
     $50,000,000 of the funds appropriated under this heading 
     should be made available for assistance for Haiti: Provided 
     further, That funds appropriated under this heading may be 
     used, notwithstanding any other provision of law, to provide 
     assistance to the National Democratic Alliance of Sudan to 
     strengthen its ability to protect civilians from attacks, 
     slave raids, and aerial bombardment by the Sudanese 
     Government forces and its militia allies, and the provision 
     of such funds shall be subject to the regular notification 
     procedures of the Committees on Appropriations: Provided 
     further, That in the previous proviso, the term 
     ``assistance'' includes non-lethal, non-food aid such as 
     blankets, medicine, fuel, mobile clinics, water drilling 
     equipment, communications equipment to notify civilians of 
     aerial bombardment, non-military vehicles, tents, and shoes: 
     Provided further, That funds appropriated under this heading 
     that are made available for a Middle East Financing Facility, 
     Middle East Enterprise Fund, or any other similar entity in 
     the Middle East shall be subject to the regular notification 
     procedures of the Committees on Appropriations: Provided 
     further, That with respect to funds appropriated under this 
     heading in this Act or prior Acts making appropriations for 
     foreign operations, export financing, and related programs, 
     the responsibility for policy decisions and justifications 
     for the use of such funds, including whether there will be a 
     program for a country that uses those funds and the amount of 
     each such program, shall be the responsibility of the 
     Secretary of State and the Deputy Secretary of State and this 
     responsibility shall not be delegated.


                     international fund for ireland

       For necessary expenses to carry out the provisions of 
     chapter 4 of part II of the Foreign Assistance Act of 1961, 
     $18,500,000, which shall be available for the United States 
     contribution to the International Fund for Ireland and shall 
     be made available in accordance with the provisions of the 
     Anglo-Irish Agreement Support Act of 1986 (Public Law 99-
     415): Provided, That such amount shall be expended at the 
     minimum rate necessary to make timely payment for projects 
     and activities: Provided further, That funds made available 
     under this heading shall remain available until September 30, 
     2006.


          assistance for eastern europe and the baltic states

       (a) For necessary expenses to carry out the provisions of 
     the Foreign Assistance Act of 1961 and the Support for East 
     European Democracy (SEED) Act of 1989, $375,000,000, to 
     remain available until September 30, 2006, which shall be 
     available, notwithstanding any other provision of law, for 
     assistance and for related programs for Eastern Europe and 
     the Baltic States.
       (b) Funds appropriated under this heading shall be 
     considered to be economic assistance under the Foreign 
     Assistance Act of 1961 for purposes of making available the 
     administrative authorities contained in that Act for the use 
     of economic assistance.
       (c) With regard to funds appropriated under this heading 
     for the economic revitalization program in Bosnia and 
     Herzegovina, and local currencies generated by such funds 
     (including the conversion of funds appropriated under this 
     heading into currency used by Bosnia and Herzegovina as local 
     currency and local currency returned or repaid under such 
     program) the Administrator of the United States Agency for 
     International Development shall provide written approval for 
     grants and loans prior to the obligation and expenditure of 
     funds for such purposes, and prior to the use of funds that 
     have been returned or repaid to any lending facility or 
     grantee.
       (d) The provisions of section 529 of this Act shall apply 
     to funds made available under subsection (c) and to funds 
     appropriated under this heading: Provided, That 
     notwithstanding any provision of this or any other Act, 
     including provisions in this subsection regarding the 
     application of section 529 of this Act, local currencies 
     generated by, or converted from, funds appropriated by this 
     Act and by previous appropriations Acts and made available 
     for the economic revitalization program in Bosnia may be used 
     in Eastern Europe and the Baltic States to carry out the 
     provisions of the Foreign Assistance Act of 1961 and the 
     Support for East European Democracy (SEED) Act of 1989.
       (e) The President is authorized to withhold funds 
     appropriated under this heading made available for economic 
     revitalization programs in Bosnia and Herzegovina, if he 
     determines and certifies to the Committees on Appropriations 
     that the Federation of Bosnia and Herzegovina has not 
     complied with article III of annex 1-A of the General 
     Framework Agreement for Peace in Bosnia and Herzegovina 
     concerning the withdrawal of foreign forces, and that 
     intelligence cooperation on training, investigations, and 
     related activities between state sponsors of terrorism and 
     terrorist organizations and Bosnian officials has not been 
     terminated.


    assistance for the independent states of the former soviet union

       (a) For necessary expenses to carry out the provisions of 
     chapters 11 and 12 of part I of the Foreign Assistance Act of 
     1961 and the FREEDOM Support Act, for assistance for the 
     Independent States of the former Soviet Union and for related 
     programs, $550,000,000, to remain available until September 
     30, 2006: Provided, That the provisions of such chapters 
     shall apply to funds appropriated by this paragraph: Provided 
     further, That funds made available for the Southern Caucasus 
     region may be used notwithstanding any other provision of 
     law, for confidence-building measures and other activities in 
     furtherance of the peaceful resolution of the regional 
     conflicts, especially those in the vicinity of Abkhazia and 
     Nagorno-Karabagh: Provided further, That of the funds 
     appropriated under this heading, $1,500,000 should be 
     available only to meet the health and other assistance needs 
     of victims of trafficking in persons: Provided further, That, 
     notwithstanding any other provision of law, funds 
     appropriated under this heading in this Act or prior Acts 
     making appropriations for foreign operations, export 
     financing, and related programs, that are made available 
     pursuant to the provisions of section 807 of Public Law 102-
     511 shall be subject to a 6 percent ceiling on administrative 
     expenses.
       (b) Of the funds appropriated under this heading, not less 
     than $65,000,000 should be made available for assistance for 
     Armenia.
       (c) Of the funds appropriated under this heading, not less 
     than $57,000,000 should be made available, in addition to 
     funds otherwise available for such purposes, for assistance 
     for child survival, environmental and reproductive health, 
     and to combat HIV/AIDS, tuberculosis and other infectious 
     diseases, and for related activities.
       (d)(1) Of the funds appropriated under this heading that 
     are allocated for assistance for the Government of the 
     Russian Federation, 60 percent shall be withheld from 
     obligation until the President determines and certifies in 
     writing to the Committees on Appropriations that the 
     Government of the Russian Federation:
       (A) has terminated implementation of arrangements to 
     provide Iran with technical expertise, training, technology, 
     or equipment necessary to develop a nuclear reactor, related 
     nuclear research facilities or programs, or ballistic missile 
     capability; and
       (B) is providing full access to international non-
     government organizations providing humanitarian relief to 
     refugees and internally displaced persons in Chechnya.
       (2) Paragraph (1) shall not apply to--
       (A) assistance to combat infectious diseases, child 
     survival activities, or assistance for victims of trafficking 
     in persons; and
       (B) activities authorized under title V (Nonproliferation 
     and Disarmament Programs and Activities) of the FREEDOM 
     Support Act.
       (e) Section 907 of the FREEDOM Support Act shall not apply 
     to--
       (1) activities to support democracy or assistance under 
     title V of the FREEDOM Support Act and section 1424 of Public 
     Law 104-201 or non-proliferation assistance;
       (2) any assistance provided by the Trade and Development 
     Agency under section 661 of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2421);
       (3) any activity carried out by a member of the United 
     States and Foreign Commercial Service while acting within his 
     or her official capacity;
       (4) any insurance, reinsurance, guarantee or other 
     assistance provided by the Overseas Private Investment 
     Corporation under title IV of chapter 2 of part I of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2191 et seq.);
       (5) any financing provided under the Export-Import Bank Act 
     of 1945; or
       (6) humanitarian assistance.

                          Independent Agencies


                       INTER-AMERICAN FOUNDATION

       For necessary expenses to carry out the functions of the 
     Inter-American Foundation in accordance with the provisions 
     of section 401 of the Foreign Assistance Act of 1969, 
     $16,238,000, to remain available until September 30, 2006.


                     AFRICAN DEVELOPMENT FOUNDATION

       For necessary expenses to carry out title V of the 
     International Security and Development Cooperation Act of 
     1980, Public Law 96-533, $18,579,000, to remain available 
     until September 30, 2006: Provided, That funds made available 
     to grantees may be invested pending expenditure for project 
     purposes when authorized by the board of directors of the 
     Foundation: Provided further, That interest earned shall be 
     used only for the purposes for which the grant was made: 
     Provided further, That notwithstanding section 505(a)(2) of 
     the African Development Foundation Act, in exceptional 
     circumstances the board of directors of the Foundation may 
     waive the $250,000 limitation contained in that section with 
     respect to a project: Provided further, That the Foundation 
     shall provide a report to the Committees on Appropriations 
     after each time such waiver authority is exercised.


                              peace corps

       For necessary expenses to carry out the provisions of the 
     Peace Corps Act (75 Stat. 612), $330,000,000, including the 
     purchase of not to exceed five passenger motor vehicles for 
     administrative purposes for use outside of the United States: 
     Provided, That none of the funds appropriated under this 
     heading

[[Page 15821]]

     shall be used to pay for abortions: Provided further, That 
     funds appropriated under this heading shall remain available 
     until September 30, 2006.


                    millennium challenge corporation

       For necessary expenses for the ``Millennium Challenge 
     Corporation'', $1,250,000,000, to remain available until 
     expended: Provided, That of the funds appropriated under this 
     heading, not more than $30,000,000 may be available for 
     administrative expenses of the Millennium Challenge 
     Corporation: Provided further, That none of the funds 
     appropriated under this heading may be made available for the 
     provision of assistance until the Chief Executive Officer of 
     the Millennium Challenge Corporation provides a written 
     budget justification to the Committees on Appropriations: 
     Provided further, That up to 10 percent of the funds 
     appropriated under this heading may be made available to 
     carry out the purposes of section 616 of the Millennium 
     Challenge Act of 2003: Provided further, That none of the 
     funds available to carry out section 616 of such Act may be 
     made available until the Chief Executive Officer of the 
     Millennium Challenge Corporation provides a report to the 
     Committees on Appropriations listing the candidate countries 
     that will be receiving assistance under section 616 of such 
     Act, the level of assistance proposed for each such country, 
     a description of the proposed programs, projects and 
     activities, and the implementing agency or agencies of the 
     United States Government: Provided further, That section 
     605(e)(4) of the Millennium Challenge Act of 2003 shall apply 
     to funds appropriated under this heading: Provided further, 
     That funds appropriated under this heading, and funds 
     appropriated under this heading in division D of Public Law 
     108-199, may be made available for a Millennium Challenge 
     Compact entered into pursuant to section 609 of the 
     Millennium Challenge Act of 2003 only if such Compact 
     obligates, or contains a commitment to obligate subject to 
     the availability of funds and the mutual agreement of the 
     parties to the Compact to proceed, the entire amount of the 
     United States Government funding anticipated for the duration 
     of the Compact: Provided further, That the previous proviso 
     shall be effective on the date of enactment of this Act.

                          Department of State


                       global hiv/aids initiative

       For necessary expenses to carry out the provisions of the 
     Foreign Assistance Act of 1961 for the prevention, treatment, 
     and control of, and research on, HIV/AIDS, $1,260,000,000, to 
     remain available until expended: Provided, That of the funds 
     appropriated under this heading, not more than $8,818,000 may 
     be made available for administrative expenses of the Office 
     of the Coordinator of United States Government Activities to 
     Combat HIV/AIDS Globally of the Department of State: Provided 
     further, That of the funds appropriated under this heading, 
     not less than $26,000,000 should be made available as a 
     contribution to the International AIDS Vaccine Initiative.


          international narcotics control and law enforcement

       For necessary expenses to carry out section 481 of the 
     Foreign Assistance Act of 1961, $328,820,000, to remain 
     available until September 30, 2007: Provided, That during 
     fiscal year 2005, the Department of State may also use the 
     authority of section 608 of the Foreign Assistance Act of 
     1961, without regard to its restrictions, to receive excess 
     property from an agency of the United States Government for 
     the purpose of providing it to a foreign country under 
     chapter 8 of part I of that Act subject to the regular 
     notification procedures of the Committees on Appropriations: 
     Provided further, That the Secretary of State shall provide 
     to the Committees on Appropriations not later than 45 days 
     after the date of the enactment of this Act and prior to the 
     initial obligation of funds appropriated under this heading, 
     a report on the proposed uses of all funds under this heading 
     on a country-by-country basis for each proposed program, 
     project, or activity: Provided further, That up to 
     $10,000,000 of the funds appropriated under this heading 
     should be made available for demand reduction programs: 
     Provided further, That of the funds appropriated under this 
     heading, not more than $26,117,000 may be available for 
     administrative expenses.


                     andean counterdrug initiative

       For necessary expenses to carry out section 481 of the 
     Foreign Assistance Act of 1961 to support counterdrug 
     activities in the Andean region of South America, 
     $731,000,000, to remain available until September 30, 2007: 
     Provided, That in fiscal year 2005, funds available to the 
     Department of State for assistance to the Government of 
     Colombia shall be available to support a unified campaign 
     against narcotics trafficking, against activities by 
     organizations designated as terrorist organizations such as 
     the Revolutionary Armed Forces of Colombia (FARC), the 
     National Liberation Army (ELN), and the United Self-Defense 
     Forces of Colombia (AUC), and to take actions to protect 
     human health and welfare in emergency circumstances, 
     including undertaking rescue operations: Provided further, 
     That this authority shall cease to be effective if the 
     Secretary of State has credible evidence that the Colombian 
     Armed Forces are not conducting vigorous operations to 
     restore government authority and respect for human rights in 
     areas under the effective control of paramilitary and 
     guerrilla organizations: Provided further, That the President 
     shall ensure that if any helicopter procured with funds under 
     this heading is used to aid or abet the operations of any 
     illegal self-defense group or illegal security cooperative, 
     such helicopter shall be immediately returned to the United 
     States: Provided further, That none of the funds appropriated 
     by this Act may be made available to support a Peruvian air 
     interdiction program until the Secretary of State and 
     Director of Central Intelligence certify to the Congress, 30 
     days before any resumption of United States involvement in a 
     Peruvian air interdiction program, that an air interdiction 
     program that permits the ability of the Peruvian Air Force to 
     shoot down aircraft will include enhanced safeguards and 
     procedures to prevent the occurrence of any incident similar 
     to the April 20, 2001 incident: Provided further, That the 
     Secretary of State, in consultation with the Administrator of 
     the United States Agency for International Development, shall 
     provide to the Committees on Appropriations not later than 45 
     days after the date of the enactment of this Act and prior to 
     the initial obligation of funds appropriated under this 
     heading, a report on the proposed uses of all funds under 
     this heading on a country-by-country basis for each proposed 
     program, project, or activity: Provided further, That section 
     482(b) of the Foreign Assistance Act of 1961 shall not apply 
     to funds appropriated under this heading: Provided further, 
     That assistance provided with funds appropriated under this 
     heading that is made available notwithstanding section 482(b) 
     of the Foreign Assistance Act of 1961 shall be made available 
     subject to the regular notification procedures of the 
     Committees on Appropriations: Provided further, That no 
     United States Armed Forces personnel or United States 
     civilian contractor employed by the United States will 
     participate in any combat operation in connection with 
     assistance made available by this Act for Colombia: Provided 
     further, That of the funds appropriated under this heading, 
     not more than $16,285,000 may be available for administrative 
     expenses of the Department of State, and not more than 
     $4,500,000 may be available, in addition to amounts otherwise 
     available for such purposes, for administrative expenses of 
     the United States Agency for International Development.


                    migration and refugee assistance

       For expenses, not otherwise provided for, necessary to 
     enable the Secretary of State to provide, as authorized by 
     law, a contribution to the International Committee of the Red 
     Cross, assistance to refugees, including contributions to the 
     International Organization for Migration and the United 
     Nations High Commissioner for Refugees, and other activities 
     to meet refugee and migration needs; salaries and expenses of 
     personnel and dependents as authorized by the Foreign Service 
     Act of 1980; allowances as authorized by sections 5921 
     through 5925 of title 5, United States Code; purchase and 
     hire of passenger motor vehicles; and services as authorized 
     by section 3109 of title 5, United States Code, $756,000,000, 
     which shall remain available until expended: Provided, That 
     not more than $21,000,000 may be available for administrative 
     expenses: Provided further, That funds appropriated under 
     this heading may be made available for a headquarters 
     contribution to the International Committee of the Red Cross 
     only if the Secretary of State determines (and so reports to 
     the appropriate committees of Congress) that the Magen David 
     Adom Society of Israel is not being denied participation in 
     the activities of the International Red Cross and Red 
     Crescent Movement.


     united states emergency refugee and migration assistance fund

       For necessary expenses to carry out the provisions of 
     section 2(c) of the Migration and Refugee Assistance Act of 
     1962, as amended (22 U.S.C. 2601(c)), $20,000,000, to remain 
     available until expended.


    nonproliferation, anti-terrorism, demining and related programs

       For necessary expenses for nonproliferation, anti-
     terrorism, demining and related programs and activities, 
     $382,000,000, to carry out the provisions of chapter 8 of 
     part II of the Foreign Assistance Act of 1961 for anti-
     terrorism assistance, chapter 9 of part II of the Foreign 
     Assistance Act of 1961, section 504 of the FREEDOM Support 
     Act, section 23 of the Arms Export Control Act or the Foreign 
     Assistance Act of 1961 for demining activities, the clearance 
     of unexploded ordnance, the destruction of small arms, and 
     related activities, notwithstanding any other provision of 
     law, including activities implemented through nongovernmental 
     and international organizations, and section 301 of the 
     Foreign Assistance Act of 1961 for a voluntary contribution 
     to the International Atomic Energy Agency (IAEA), and for a 
     United States contribution to the Comprehensive Nuclear Test 
     Ban Treaty Preparatory Commission: Provided, That of this 
     amount not to exceed $30,000,000, to remain available until 
     expended, may be made available for the Nonproliferation and 
     Disarmament Fund, notwithstanding any other

[[Page 15822]]

     provision of law, to promote bilateral and multilateral 
     activities relating to nonproliferation and disarmament: 
     Provided further, That such funds may also be used for such 
     countries other than the Independent States of the former 
     Soviet Union and international organizations when it is in 
     the national security interest of the United States to do so: 
     Provided further, That funds appropriated under this heading 
     may be made available for the International Atomic Energy 
     Agency only if the Secretary of State determines (and so 
     reports to the Congress) that Israel is not being denied its 
     right to participate in the activities of that Agency: 
     Provided further, That of the funds made available for 
     demining and related activities, not to exceed $690,000, in 
     addition to funds otherwise available for such purposes, may 
     be used for administrative expenses related to the operation 
     and management of the demining program: Provided further, 
     That funds appropriated under this heading shall be made 
     available for programs and countries in the amounts contained 
     in the table included in the report accompanying this Act: 
     Provided further, That any proposed increases or decreases to 
     the amounts contained in such table shall be subject to the 
     regular notification procedures of the Committees on 
     Appropriations and section 634A of the Foreign Assistance Act 
     of 1961 and notifications shall be transmitted at least 15 
     days in advance of the obligation of funds.

                       Department of the Treasury


               International Affairs Technical Assistance

       For necessary expenses to carry out the provisions of 
     section 129 of the Foreign Assistance Act of 1961, 
     $19,000,000, to remain available until September 30, 2007, 
     which shall be available notwithstanding any other provision 
     of law.


                           DEBT RESTRUCTURING

       For the cost, as defined in section 502 of the 
     Congressional Budget Act of 1974, of modifying loans and loan 
     guarantees, as the President may determine, for which funds 
     have been appropriated or otherwise made available for 
     programs within the International Affairs Budget Function 
     150, including the cost of selling, reducing, or canceling 
     amounts owed to the United States as a result of concessional 
     loans made to eligible countries, pursuant to parts IV and V 
     of the Foreign Assistance Act of 1961, and of modifying 
     concessional credit agreements with least developed 
     countries, as authorized under section 411 of the 
     Agricultural Trade Development and Assistance Act of 1954, as 
     amended, and concessional loans, guarantees and credit 
     agreements, as authorized under section 572 of the Foreign 
     Operations, Export Financing, and Related Programs 
     Appropriations Act, 1989 (Public Law 100-461), and of 
     canceling amounts owed, as a result of loans or guarantees 
     made pursuant to the Export-Import Bank Act of 1945, by 
     countries that are eligible for debt reduction pursuant to 
     title V of H.R. 3425 as enacted into law by section 
     1000(a)(5) of Public Law 106-113, $105,000,000, to remain 
     available until September 30, 2007: Provided, That not less 
     than $20,000,000 of the funds appropriated under this heading 
     shall be made available to carry out the provisions of part V 
     of the Foreign Assistance Act of 1961: Provided further, That 
     up to $75,000,000 of the funds appropriated under this 
     heading may be used by the Secretary of the Treasury to pay 
     to the Heavily Indebted Poor Countries (HIPC) Trust Fund 
     administered by the International Bank for Reconstruction and 
     Development amounts for the benefit of countries that are 
     eligible for debt reduction pursuant to title V of H.R. 3425 
     as enacted into law by section 1000(a)(5) of Public Law 106-
     113: Provided further, That amounts paid to the HIPC Trust 
     Fund may be used only to fund debt reduction under the 
     enhanced HIPC initiative by--
       (1) the Inter-American Development Bank;
       (2) the African Development Fund;
       (3) the African Development Bank; and
       (4) the Central American Bank for Economic Integration:
     Provided further, That funds may not be paid to the HIPC 
     Trust Fund for the benefit of any country if the Secretary of 
     State has credible evidence that the government of such 
     country is engaged in a consistent pattern of gross 
     violations of internationally recognized human rights or in 
     military or civil conflict that undermines its ability to 
     develop and implement measures to alleviate poverty and to 
     devote adequate human and financial resources to that end: 
     Provided further, That on the basis of final appropriations, 
     the Secretary of the Treasury shall consult with the 
     Committees on Appropriations concerning which countries and 
     international financial institutions are expected to benefit 
     from a United States contribution to the HIPC Trust Fund 
     during the fiscal year: Provided further, That the Secretary 
     of the Treasury shall inform the Committees on Appropriations 
     not less than 15 days in advance of the signature of an 
     agreement by the United States to make payments to the HIPC 
     Trust Fund of amounts for such countries and institutions: 
     Provided further, That the Secretary of the Treasury may 
     disburse funds designated for debt reduction through the HIPC 
     Trust Fund only for the benefit of countries that--
       (1) have committed, for a period of 24 months, not to 
     accept new market-rate loans from the international financial 
     institution receiving debt repayment as a result of such 
     disbursement, other than loans made by such institutions to 
     export-oriented commercial projects that generate foreign 
     exchange which are generally referred to as ``enclave'' 
     loans; and
       (2) have documented and demonstrated their commitment to 
     redirect their budgetary resources from international debt 
     repayments to programs to alleviate poverty and promote 
     economic growth that are additional to or expand upon those 
     previously available for such purposes:
     Provided further, That any limitation of subsection (e) of 
     section 411 of the Agricultural Trade Development and 
     Assistance Act of 1954 shall not apply to funds appropriated 
     under this heading: Provided further, That none of the funds 
     made available under this heading in this or any other 
     appropriations Act shall be made available for Sudan or Burma 
     unless the Secretary of the Treasury determines and notifies 
     the Committees on Appropriations that a democratically 
     elected government has taken office: Provided further, That 
     none of the funds appropriated under this heading may be paid 
     to the HIPC Trust Fund for the benefit of any country that 
     has accepted loans from an international financial 
     institution between such country's decision point and 
     completion point: Provided further, That the terms ``decision 
     point'' and ``completion point'' shall have the same meaning 
     as defined by the International Monetary Fund.

                     TITLE III--MILITARY ASSISTANCE

                  Funds Appropriated to the President


             international military education and training

       For necessary expenses to carry out the provisions of 
     section 541 of the Foreign Assistance Act of 1961, 
     $89,730,000, of which up to $3,000,000 may remain available 
     until expended: Provided, That the civilian personnel for 
     whom military education and training may be provided under 
     this heading may include civilians who are not members of a 
     government whose participation would contribute to improved 
     civil-military relations, civilian control of the military, 
     or respect for human rights: Provided further, That funds 
     appropriated under this heading for military education and 
     training for Guatemala may only be available for expanded 
     international military education and training, and funds made 
     available for Nigeria and Guatemala may only be provided 
     through the regular notification procedures of the Committees 
     on Appropriations.


                   foreign military financing program

                     (including transfer of funds)

       For expenses necessary for grants to enable the President 
     to carry out the provisions of section 23 of the Arms Export 
     Control Act, $4,777,500,000: Provided, That of the funds 
     appropriated under this heading, not less than $2,220,000,000 
     shall be available for grants only for Israel, and not less 
     than $1,300,000,000 shall be made available for grants only 
     for Egypt: Provided further, That the funds appropriated by 
     this paragraph for Israel shall be disbursed within 30 days 
     of the enactment of this Act or by October 31, 2004, 
     whichever is later: Provided further, That to the extent that 
     the Government of Israel requests that funds be used for such 
     purposes, grants made available for Israel by this paragraph 
     shall, as agreed by Israel and the United States, be 
     available for advanced weapons systems, of which not less 
     than $580,000,000 shall be available for the procurement in 
     Israel of defense articles and defense services, including 
     research and development: Provided further, That in addition 
     to the funds appropriated under this heading, up to 
     $150,000,000 for assistance for Pakistan may be derived by 
     transfer from unobligated balances of funds appropriated 
     under the headings ``Economic Support Fund'' and ``Foreign 
     Military Financing Program'' in prior appropriations Acts and 
     not otherwise designated in those Acts for a specific 
     country, use, or purpose: Provided further, That funds 
     appropriated or otherwise made available by this paragraph 
     shall be nonrepayable notwithstanding any requirement in 
     section 23 of the Arms Export Control Act: Provided further, 
     That funds made available under this paragraph shall be 
     obligated upon apportionment in accordance with paragraph 
     (5)(C) of title 31, United States Code, section 1501(a).
       None of the funds made available under this heading shall 
     be available to finance the procurement of defense articles, 
     defense services, or design and construction services that 
     are not sold by the United States Government under the Arms 
     Export Control Act unless the foreign country proposing to 
     make such procurements has first signed an agreement with the 
     United States Government specifying the conditions under 
     which such procurements may be financed with such funds: 
     Provided, That all country and funding level increases in 
     allocations shall be submitted through the regular 
     notification procedures of section 515 of this Act: Provided 
     further, That none of the funds appropriated under this 
     heading shall be available for assistance for Sudan, 
     Indonesia and Guatemala: Provided further, That funds made 
     available under this heading may be used, notwithstanding any 
     other provision of law, for demining, the clearance of 
     unexploded ordnance, and related activities, and may include 
     activities implemented

[[Page 15823]]

     through nongovernmental and international organizations: 
     Provided further, That the authority contained in the 
     previous proviso or any other provision of law relating to 
     the use of funds for programs under this heading, including 
     provisions contained in previously enacted appropriations 
     Acts, shall not apply to activities relating to the clearance 
     of unexploded ordnance resulting from United States Armed 
     Forces testing or training exercises: Provided further, That 
     the previous proviso shall not apply to San Jose Island, 
     Republic of Panama: Provided further, That only those 
     countries for which assistance was justified for the 
     ``Foreign Military Sales Financing Program'' in the fiscal 
     year 1989 congressional presentation for security assistance 
     programs may utilize funds made available under this heading 
     for procurement of defense articles, defense services or 
     design and construction services that are not sold by the 
     United States Government under the Arms Export Control Act: 
     Provided further, That funds appropriated under this heading 
     shall be expended at the minimum rate necessary to make 
     timely payment for defense articles and services: Provided 
     further, That not more than $40,500,000 of the funds 
     appropriated under this heading may be obligated for 
     necessary expenses, including the purchase of passenger motor 
     vehicles for replacement only for use outside of the United 
     States, for the general costs of administering military 
     assistance and sales: Provided further, That not more than 
     $367,000,000 of funds realized pursuant to section 
     21(e)(1)(A) of the Arms Export Control Act may be obligated 
     for expenses incurred by the Department of Defense during 
     fiscal year 2005 pursuant to section 43(b) of the Arms Export 
     Control Act, except that this limitation may be exceeded only 
     through the regular notification procedures of the Committees 
     on Appropriations: Provided further, That foreign military 
     financing program funds estimated to be outlayed for Egypt 
     during fiscal year 2005 shall be transferred to an interest 
     bearing account for Egypt in the Federal Reserve Bank of New 
     York within 30 days of enactment of this Act or by October 
     31, 2004, whichever is later.


                        peacekeeping operations

       For necessary expenses to carry out the provisions of 
     section 551 of the Foreign Assistance Act of 1961, 
     $104,000,000: Provided, That none of the funds appropriated 
     under this heading shall be obligated or expended except as 
     provided through the regular notification procedures of the 
     Committees on Appropriations.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE


                  funds appropriated to the president

                  international financial institutions

                      global environment facility

       For the United States contribution for the Global 
     Environment Facility, $107,500,000 to the International Bank 
     for Reconstruction and Development as trustee for the Global 
     Environment Facility, by the Secretary of the Treasury, to 
     remain available until expended.


       contribution to the international development association

       For payment to the International Development Association by 
     the Secretary of the Treasury, $850,000,000, to remain 
     available until expended.


contribution to the enterprise for the americas multilateral investment 
                                  fund

       For payment to the Enterprise for the Americas Multilateral 
     Investment Fund by the Secretary of the Treasury, for the 
     United States contribution to the fund, $25,000,000, to 
     remain available until expended.


               contribution to the asian development fund

       For the United States contribution by the Secretary of the 
     Treasury to the increase in resources of the Asian 
     Development Fund, as authorized by the Asian Development Bank 
     Act, as amended, $112,212,465, to remain available until 
     expended.


              Contribution to the African Development Bank

       For payment to the African Development Bank by the 
     Secretary of the Treasury, $5,100,000, for the United States 
     paid-in share of the increase in capital stock, to remain 
     available until expended.


              limitation on callable capital subscriptions

       The United States Governor of the African Development Bank 
     may subscribe without fiscal year limitation for the callable 
     capital portion of the United States share of such capital 
     stock in an amount not to exceed $79,532,933.


              contribution to the african development fund

       For the United States contribution by the Secretary of the 
     Treasury to the increase in resources of the African 
     Development Fund, $118,000,000, to remain available until 
     expended.


  contribution to the european bank for reconstruction and development

       For payment to the European Bank for Reconstruction and 
     Development by the Secretary of the Treasury, $35,431,111 for 
     the United States share of the paid-in portion of the 
     increase in capital stock, to remain available until 
     expended: Provided, That funds appropriated under this 
     heading shall be subject to the regular notification 
     procedures of the Committees on Appropriations and shall be 
     transmitted at least 15 days in advance of the obligation of 
     funds.


              limitation on callable capital subscriptions

       The United States Governor of the European Bank for 
     Reconstruction and Development may subscribe without fiscal 
     year limitation to the callable capital portion of the United 
     States share of such capital stock in an amount not to exceed 
     $121,996,662.

  contribution to the international fund for agricultural development

       For the United States contribution by the Secretary of the 
     Treasury to increase the resources of the International Fund 
     for Agricultural Development, $15,000,000, to remain 
     available until expended.

                international organizations and programs

       For necessary expenses to carry out the provisions of 
     section 301 of the Foreign Assistance Act of 1961, and of 
     section 2 of the United Nations Environment Program 
     Participation Act of 1973, $323,450,000: Provided, That none 
     of the funds appropriated under this heading may be made 
     available to the International Atomic Energy Agency (IAEA).

                      TITLE V--GENERAL PROVISIONS


  compensation for united states executive directors to international 
                         financial institutions

       Sec. 501. (a) No funds appropriated by this Act may be made 
     as payment to any international financial institution while 
     the United States Executive Director to such institution is 
     compensated by the institution at a rate which, together with 
     whatever compensation such Director receives from the United 
     States, is in excess of the rate provided for an individual 
     occupying a position at level IV of the Executive Schedule 
     under section 5315 of title 5, United States Code, or while 
     any alternate United States Director to such institution is 
     compensated by the institution at a rate in excess of the 
     rate provided for an individual occupying a position at level 
     V of the Executive Schedule under section 5316 of title 5, 
     United States Code.
       (b) For purposes of this section, ``international financial 
     institutions'' are: the International Bank for Reconstruction 
     and Development, the Inter-American Development Bank, the 
     Asian Development Bank, the Asian Development Fund, the 
     African Development Bank, the African Development Fund, the 
     International Monetary Fund, the North American Development 
     Bank, and the European Bank for Reconstruction and 
     Development.


   restrictions on voluntary contributions to united nations agencies

       Sec. 502. None of the funds appropriated by this Act may be 
     made available to pay any voluntary contribution of the 
     United States to the United Nations (including the United 
     Nations Development Program) if the United Nations implements 
     or imposes any taxation on any United States persons.


                    limitation on residence expenses

       Sec. 503. Of the funds appropriated or made available 
     pursuant to this Act, not to exceed $100,500 shall be for 
     official residence expenses of the United States Agency for 
     International Development during the current fiscal year: 
     Provided, That appropriate steps shall be taken to assure 
     that, to the maximum extent possible, United States-owned 
     foreign currencies are utilized in lieu of dollars.


                         limitation on expenses

       Sec. 504. Of the funds appropriated or made available 
     pursuant to this Act, not to exceed $5,000 shall be for 
     entertainment expenses of the United States Agency for 
     International Development during the current fiscal year.


               limitation on representational allowances

       Sec. 505. Of the funds appropriated or made available 
     pursuant to this Act, not to exceed $125,000 shall be 
     available for representation allowances for the United States 
     Agency for International Development during the current 
     fiscal year: Provided, That appropriate steps shall be taken 
     to assure that, to the maximum extent possible, United 
     States-owned foreign currencies are utilized in lieu of 
     dollars: Provided further, That of the funds made available 
     by this Act for general costs of administering military 
     assistance and sales under the heading ``Foreign Military 
     Financing Program'', not to exceed $4,000 shall be available 
     for entertainment expenses and not to exceed $130,000 shall 
     be available for representation allowances: Provided further, 
     That of the funds made available by this Act under the 
     heading ``International Military Education and Training'', 
     not to exceed $55,000 shall be available for entertainment 
     allowances: Provided further, That of the funds made 
     available by this Act for the Inter-American Foundation, not 
     to exceed $2,000 shall be available for entertainment and 
     representation allowances: Provided further, That of the 
     funds made available by this Act for the Peace Corps, not to 
     exceed a total of $4,000 shall be available for entertainment 
     expenses: Provided further,

[[Page 15824]]

     That of the funds made available by this Act under the 
     heading ``Trade and Development Agency'', not to exceed 
     $4,000 shall be available for representation and 
     entertainment allowances: Provided further, That of the funds 
     made available by this Act under the heading ``Millennium 
     Challenge Corporation'', not to exceed $130,000 shall be 
     available for representation and entertainment allowances.


          prohibition on taxation of united states assistance

       Sec. 506. (a) Prohibition on Taxation.--None of the funds 
     appropriated by this Act may be made available to provide 
     assistance for a foreign country under a new bilateral 
     agreement governing the terms and conditions under which such 
     assistance is to be provided unless such agreement includes a 
     provision stating that assistance provided by the United 
     States shall be exempt from taxation, or reimbursed, by the 
     foreign government, and the Secretary of State shall 
     expeditiously seek to negotiate amendments to existing 
     bilateral agreements, as necessary, to conform with this 
     requirement.
       (b) Reimbursement of Foreign Taxes.--An amount equivalent 
     to 200 percent of the total taxes assessed during fiscal year 
     2005 on funds appropriated by this Act by a foreign 
     government or entity against commodities financed under 
     United States assistance programs for which funds are 
     appropriated by this Act, either directly or through 
     grantees, contractors and subcontractors shall be withheld 
     from obligation from funds appropriated for assistance for 
     fiscal year 2006 and allocated for the central government of 
     such country and for the West Bank and Gaza Program to the 
     extent that the Secretary of State certifies and reports in 
     writing to the Committees on Appropriations that such taxes 
     have not been reimbursed to the Government of the United 
     States.
       (c) De Minimis Exception.--Foreign taxes of a de minimis 
     nature shall not be subject to the provisions of subsection 
     (b).
       (d) Reprogramming of Funds.--Funds withheld from obligation 
     for each country or entity pursuant to subsection (b) shall 
     be reprogrammed for assistance to countries which do not 
     assess taxes on United States assistance or which have an 
     effective arrangement that is providing substantial 
     reimbursement of such taxes.
       (e) Determinations.--
       (1) The provisions of this section shall not apply to any 
     country or entity the Secretary of State determines--
       (A) does not assess taxes on United States assistance or 
     which has an effective arrangement that is providing 
     substantial reimbursement of such taxes; or
       (B) the foreign policy interests of the United States 
     outweigh the policy of this section to ensure that United 
     States assistance is not subject to taxation.
       (2) The Secretary of State shall consult with the 
     Committees on Appropriations at least 15 days prior to 
     exercising the authority of this subsection with regard to 
     any country or entity.
       (f) Implementation.--The Secretary of State shall issue 
     rules, regulations, or policy guidance, as appropriate, to 
     implement the prohibition against the taxation of assistance 
     contained in this section.
       (g) Definitions.--As used in this section--
       (1) the terms ``taxes'' and ``taxation'' refer to value 
     added taxes and customs duties imposed on commodities 
     financed with United States assistance for programs for which 
     funds are appropriated by this Act; and
       (2) the term ``bilateral agreement'' refers to a framework 
     bilateral agreement between the Government of the United 
     States and the government of the country receiving assistance 
     that describes the privileges and immunities applicable to 
     United States foreign assistance for such country generally, 
     or an individual agreement between the Government of the 
     United States and such government that describes, among other 
     things, the treatment for tax purposes that will be accorded 
     the United States assistance provided under that agreement.


        prohibition against direct funding for certain countries

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


                             military coups

       Sec. 508. None of the funds appropriated or otherwise made 
     available pursuant to this Act shall be obligated or expended 
     to finance directly any assistance to the government of any 
     country whose duly elected head of government is deposed by 
     decree or military coup: Provided, That assistance may be 
     resumed to such government if the President determines and 
     certifies to the Committees on Appropriations that subsequent 
     to the termination of assistance a democratically elected 
     government has taken office: Provided further, That the 
     provisions of this section shall not apply to assistance to 
     promote democratic elections or public participation in 
     democratic processes: Provided further, That funds made 
     available pursuant to the previous provisos shall be subject 
     to the regular notification procedures of the Committees on 
     Appropriations.


                               transfers

       Sec. 509. (a)(1) Limitation on Transfers Between 
     Agencies.--None of the funds made available by this Act may 
     be transferred to any department, agency, or instrumentality 
     of the United States Government, except pursuant to a 
     transfer made by, or transfer authority provided in, this Act 
     or any other appropriation Act.
       (2) Notwithstanding paragraph (1), in addition to transfers 
     made by, or authorized elsewhere in, this Act, funds 
     appropriated by this Act to carry out the purposes of the 
     Foreign Assistance Act of 1961 may be allocated or 
     transferred to agencies of the United States Government 
     pursuant to the provisions of sections 109, 610, and 632 of 
     the Foreign Assistance Act of 1961.
       (b) Transfers Between Accounts.--None of the funds made 
     available by this Act may be obligated under an appropriation 
     account to which they were not appropriated, except for 
     transfers specifically provided for in this Act, unless the 
     President, not less than five days prior to the exercise of 
     any authority contained in the Foreign Assistance Act of 1961 
     to transfer funds, consults with and provides a written 
     policy justification to the Committees on Appropriations of 
     the House of Representatives and the Senate.
       (c) Audit of Inter-agency Transfers.--Any agreement for the 
     transfer or allocation of funds appropriated by this Act, or 
     prior Acts, entered into between the United States Agency for 
     International Development and another agency of the United 
     States Government under the authority of section 632(a) of 
     the Foreign Assistance Act of 1961 or any comparable 
     provision of law, shall expressly provide that the Office of 
     the Inspector General for the agency receiving the transfer 
     or allocation of such funds shall perform periodic program 
     and financial audits of the use of such funds: Provided, That 
     funds transferred under such authority may be made available 
     for the cost of such audits.


                 commercial leasing of defense articles

       Sec. 510. Notwithstanding any other provision of law, and 
     subject to the regular notification procedures of the 
     Committees on Appropriations, the authority of section 23(a) 
     of the Arms Export Control Act may be used to provide 
     financing to Israel, Egypt and NATO and major non-NATO allies 
     for the procurement by leasing (including leasing with an 
     option to purchase) of defense articles from United States 
     commercial suppliers, not including Major Defense Equipment 
     (other than helicopters and other types of aircraft having 
     possible civilian application), if the President determines 
     that there are compelling foreign policy or national security 
     reasons for those defense articles being provided by 
     commercial lease rather than by government-to-government sale 
     under such Act.


                         availability of funds

       Sec. 511. No part of any appropriation contained in this 
     Act shall remain available for obligation after the 
     expiration of the current fiscal year unless expressly so 
     provided in this Act: Provided, That funds appropriated for 
     the purposes of chapters 1, 8, 11, and 12 of part I, section 
     667, chapters 4, 6, 8, and 9 of part II of the Foreign 
     Assistance Act of 1961, section 23 of the Arms Export Control 
     Act, and funds provided under the heading ``Assistance for 
     Eastern Europe and the Baltic States'', shall remain 
     available for an additional four years from the date on which 
     the availability of such funds would otherwise have expired, 
     if such funds are initially obligated before the expiration 
     of their respective periods of availability contained in this 
     Act: Provided further, That, notwithstanding any other 
     provision of this Act, any funds made available for the 
     purposes of chapter 1 of part I and chapter 4 of part II of 
     the Foreign Assistance Act of 1961 which are allocated or 
     obligated for cash disbursements in order to address balance 
     of payments or economic policy reform objectives, shall 
     remain available until expended.


            limitation on assistance to countries in default

       Sec. 512. No part of any appropriation contained in this 
     Act shall be used to furnish assistance to the government of 
     any country which is in default during a period in excess of 
     one calendar year in payment to the United States of 
     principal or interest on any loan made to the government of 
     such country by the United States pursuant to a program for 
     which funds are appropriated under this Act unless the 
     President determines, following consultations with the 
     Committees on Appropriations, that assistance to such country 
     is in the national interest of the United States.


                           commerce and trade

       Sec. 513. (a) None of the funds appropriated or made 
     available pursuant to this Act for direct assistance and none 
     of the funds otherwise made available pursuant to this Act to 
     the Export-Import Bank and the Overseas Private Investment 
     Corporation shall be obligated or expended to finance any 
     loan, any assistance or any other financial commitments for 
     establishing or expanding production of any commodity for 
     export by any country other than the United States, if the 
     commodity is likely to be in surplus on

[[Page 15825]]

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


                          surplus commodities

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


                       notification requirements

       Sec. 515. For the purposes of providing the executive 
     branch with the necessary administrative flexibility, none of 
     the funds made available under this Act for ``Child Survival 
     and Health Programs Fund'', ``Development Assistance'', 
     ``International Organizations and Programs'', ``Trade and 
     Development Agency'', ``International Narcotics Control and 
     Law Enforcement'', ``Andean Counterdrug Initiative'', 
     ``Assistance for Eastern Europe and the Baltic States'', 
     ``Assistance for the Independent States of the Former Soviet 
     Union'', ``Economic Support Fund'', ``Global HIV/AIDS 
     Initiative'', ``Peacekeeping Operations'', ``Capital 
     Investment Fund'', ``Operating Expenses of the United States 
     Agency for International Development'', ``Operating Expenses 
     of the United States Agency for International Development 
     Office of Inspector General'', ``Nonproliferation, Anti-
     terrorism, Demining and Related Programs'', ``Millennium 
     Challenge Corporation'' (by country only), ``Foreign Military 
     Financing Program'', ``International Military Education and 
     Training'', ``Peace Corps'', and ``Migration and Refugee 
     Assistance'', shall be available for obligation for 
     activities, programs, projects, type of materiel assistance, 
     countries, or other operations not justified or in excess of 
     the amount justified to the Committees on Appropriations for 
     obligation under any of these specific headings unless the 
     Committees on Appropriations of both Houses of Congress are 
     previously notified 15 days in advance: Provided, That the 
     President shall not enter into any commitment of funds 
     appropriated for the purposes of section 23 of the Arms 
     Export Control Act for the provision of major defense 
     equipment, other than conventional ammunition, or other major 
     defense items defined to be aircraft, ships, missiles, or 
     combat vehicles, not previously justified to Congress or 20 
     percent in excess of the quantities justified to Congress 
     unless the Committees on Appropriations are notified 15 days 
     in advance of such commitment: Provided further, That this 
     section shall not apply to any reprogramming for an activity, 
     program, or project for which funds are appropriated under 
     title II of this Act of less than 10 percent of the amount 
     previously justified to the Congress for obligation for such 
     activity, program, or project for the current fiscal year: 
     Provided further, That the requirements of this section or 
     any similar provision of this Act or any other Act, including 
     any prior Act requiring notification in accordance with the 
     regular notification procedures of the Committees on 
     Appropriations, may be waived if failure to do so would pose 
     a substantial risk to human health or welfare: Provided 
     further, That in case of any such waiver, notification to the 
     Congress, or the appropriate congressional committees, shall 
     be provided as early as practicable, but in no event later 
     than 3 days after taking the action to which such 
     notification requirement was applicable, in the context of 
     the circumstances necessitating such waiver: Provided 
     further, That any notification provided pursuant to such a 
     waiver shall contain an explanation of the emergency 
     circumstances.


limitation on availability of funds for international organizations and 
                                programs

       Sec. 516. Subject to the regular notification procedures of 
     the Committees on Appropriations, funds appropriated under 
     this Act or any previously enacted Act making appropriations 
     for foreign operations, export financing, and related 
     programs, which are returned or not made available for 
     organizations and programs because of the implementation of 
     section 307(a) of the Foreign Assistance Act of 1961, shall 
     remain available for obligation until September 30, 2006.


             independent states of the former soviet union

       Sec. 517. (a) None of the funds appropriated under the 
     heading ``Assistance for the Independent States of the Former 
     Soviet Union'' shall be made available for assistance for a 
     government of an Independent State of the former Soviet 
     Union--
       (1) unless that government is making progress in 
     implementing comprehensive economic reforms based on market 
     principles, private ownership, respect for commercial 
     contracts, and equitable treatment of foreign private 
     investment; and
       (2) if that government applies or transfers United States 
     assistance to any entity for the purpose of expropriating or 
     seizing ownership or control of assets, investments, or 
     ventures.

     Assistance may be furnished without regard to this subsection 
     if the President determines that to do so is in the national 
     interest.
       (b) None of the funds appropriated under the heading 
     ``Assistance for the Independent States of the Former Soviet 
     Union'' shall be made available for assistance for a 
     government of an Independent State of the former Soviet Union 
     if that government directs any action in violation of the 
     territorial integrity or national sovereignty of any other 
     Independent State of the former Soviet Union, such as those 
     violations included in the Helsinki Final Act: Provided, That 
     such funds may be made available without regard to the 
     restriction in this subsection if the President determines 
     that to do so is in the national security interest of the 
     United States.
       (c) None of the funds appropriated under the heading 
     ``Assistance for the Independent States of the Former Soviet 
     Union'' shall be made available for any state to enhance its 
     military capability: Provided, That this restriction does not 
     apply to demilitarization, demining or nonproliferation 
     programs.
       (d) Funds appropriated under the heading ``Assistance for 
     the Independent States of the Former Soviet Union'' for the 
     Russian Federation, Armenia, Georgia, and Ukraine shall be 
     subject to the regular notification procedures of the 
     Committees on Appropriations.
       (e) Funds made available in this Act for assistance for the 
     Independent States of the former Soviet Union shall be 
     subject to the provisions of section 117 (relating to 
     environment and natural resources) of the Foreign Assistance 
     Act of 1961.
       (f) In issuing new task orders, entering into contracts, or 
     making grants, with funds appropriated in this Act or prior 
     appropriations Acts under the heading ``Assistance for the 
     Independent States of the Former Soviet Union'' and under 
     comparable headings in prior appropriations Acts, for 
     projects or activities that have as one of their primary 
     purposes the fostering of private sector development, the 
     Coordinator for United States Assistance to Europe and 
     Eurasia and the implementing agency shall encourage the 
     participation of and give significant weight to contractors 
     and grantees who propose investing a significant amount of 
     their own resources (including volunteer services and in-kind 
     contributions) in such projects and activities.


   PROHIBITION ON FUNDING FOR ABORTIONS AND INVOLUNTARY STERILIZATION

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

[[Page 15826]]

     provisions related to abortions and involuntary 
     sterilizations.


                 export financing transfer authorities

       Sec. 519. Not to exceed 5 percent of any appropriation 
     other than for administrative expenses made available for 
     fiscal year 2005, for programs under title I of this Act may 
     be transferred between such appropriations for use for any of 
     the purposes, programs, and activities for which the funds in 
     such receiving account may be used, but no such 
     appropriation, except as otherwise specifically provided, 
     shall be increased by more than 25 percent by any such 
     transfer: Provided, That the exercise of such authority shall 
     be subject to the regular notification procedures of the 
     Committees on Appropriations.


                   special notification requirements

       Sec. 520. None of the funds appropriated by this Act shall 
     be obligated or expended for Liberia, Serbia, Sudan, or 
     Zimbabwe except as provided through the regular notification 
     procedures of the Committees on Appropriations.


              definition of program, project, and activity

       Sec. 521. For the purpose of this Act, ``program, project, 
     and activity'' shall be defined at the appropriations Act 
     account level and shall include all appropriations and 
     authorizations Acts earmarks, ceilings, and limitations with 
     the exception that for the following accounts: Economic 
     Support Fund and Foreign Military Financing Program, 
     ``program, project, and activity'' shall also be considered 
     to include country, regional, and central program level 
     funding within each such account; for the development 
     assistance accounts of the United States Agency for 
     International Development ``program, project, and activity'' 
     shall also be considered to include central, country, 
     regional, and program level funding, either as: (1) justified 
     to the Congress; or (2) allocated by the executive branch in 
     accordance with a report, to be provided to the Committees on 
     Appropriations within 30 days of the enactment of this Act, 
     as required by section 653(a) of the Foreign Assistance Act 
     of 1961.


                  child survival and health activities

       Sec. 522. Up to $13,500,000 of the funds made available by 
     this Act for assistance under the heading ``Child Survival 
     and Health Programs Fund'', may be used to reimburse United 
     States Government agencies, agencies of State governments, 
     institutions of higher learning, and private and voluntary 
     organizations for the full cost of individuals (including for 
     the personal services of such individuals) detailed or 
     assigned to, or contracted by, as the case may be, the United 
     States Agency for International Development for the purpose 
     of carrying out activities under that heading: Provided, That 
     up to $3,500,000 of the funds made available by this Act for 
     assistance under the heading ``Development Assistance'' may 
     be used to reimburse such agencies, institutions, and 
     organizations for such costs of such individuals carrying out 
     other development assistance activities: Provided further, 
     That funds appropriated by titles II and III of this Act that 
     are made available for bilateral assistance for child 
     survival activities or disease programs including activities 
     relating to research on, and the prevention, treatment and 
     control of, HIV/AIDS may be made available notwithstanding 
     any other provision of law except for the provisions under 
     the heading ``Child Survival and Health Programs Fund'' and 
     the United States Leadership Against HIV/AIDS, Tuberculosis, 
     and Malaria Act of 2003 (117 Stat. 711; 22 U.S.C. 7601 et 
     seq.).


                              afghanistan

       Sec. 523. Of the funds appropriated by titles II and III of 
     this Act, not less than $977,000,000 should be made available 
     for humanitarian, reconstruction, and related assistance for 
     Afghanistan: Provided, That $60,000,000 of the funds 
     allocated for assistance for Afghanistan from this Act and 
     other Acts making appropriations for foreign operations, 
     export financing, and related programs for fiscal year 2005 
     should be made available for assistance for Afghan women and 
     girls.


                NOTIFICATION ON EXCESS DEFENSE EQUIPMENT

       Sec. 524. Prior to providing excess Department of Defense 
     articles in accordance with section 516(a) of the Foreign 
     Assistance Act of 1961, the Department of Defense shall 
     notify the Committees on Appropriations to the same extent 
     and under the same conditions as are other committees 
     pursuant to subsection (f) of that section: Provided, That 
     before issuing a letter of offer to sell excess defense 
     articles under the Arms Export Control Act, the Department of 
     Defense shall notify the Committees on Appropriations in 
     accordance with the regular notification procedures of such 
     Committees if such defense articles are significant military 
     equipment (as defined in section 47(9) of the Arms Export 
     Control Act) or are valued (in terms of original acquisition 
     cost) at $7,000,000 or more, or if notification is required 
     elsewhere in this Act for the use of appropriated funds for 
     specific countries that would receive such excess defense 
     articles: Provided further, That such Committees shall also 
     be informed of the original acquisition cost of such defense 
     articles.


        the global fund to fight aids, tuberculosis and malaria

       Sec. 525. Notwithstanding any other provision of this Act, 
     none of the funds that are appropriated by this Act that are 
     made available to support the Global Fund to Fight AIDS, 
     Tuberculosis and Malaria (Global Fund) may be made available 
     to the Global Fund until the Secretary of State certifies to 
     the Committees on Appropriations that--
       (1) the Global Fund is making concerted efforts to--
       (A) establish a full time, professional, independent office 
     which reports directly to the Global Fund Board regarding, 
     among other things, the integrity of processes for 
     consideration and approval of grant proposals, and the 
     implementation, monitoring and evaluation of grants made by 
     the Global Fund;
       (B) strengthen domestic civil society participation, 
     especially for people living with HIV/AIDS, in-country 
     coordinating mechanisms; and
       (C) establish procedures to assess the need for, and 
     coordinate, technical assistance for Global Fund activities, 
     in cooperation with bilateral and multilateral donors; and
       (2) the Global Fund has established clear, consistent 
     progress indicators upon which to determine the release of 
     incremental disbursements;
       (3) the Global Fund is releasing such incremental 
     disbursements only if sufficient positive results have been 
     attained based on those indicators; and
       (4) the Global Fund is providing an appropriate level of 
     support and oversight to country-level entities, such as 
     country coordinating mechanisms, principal recipients, and 
     local Fund agents, to enable them to fulfill their mandates.


                           democracy programs

       Sec. 526. (a) The Secretary of Treasury should instruct the 
     United States executive director to each international 
     financial institution to use the voice and vote of the United 
     States to support projects in Tibet if such projects do not 
     provide incentives for the migration and settlement of non-
     Tibetans into Tibet or facilitate the transfer of ownership 
     of Tibetan land and natural resources to non-Tibetans; are 
     based on a thorough needs-assessment; foster self-sufficiency 
     of the Tibetan people and respect Tibetan culture and 
     traditions; and are subject to effective monitoring.
       (b) Notwithstanding any other provision of law, not less 
     than $4,000,000 of the funds appropriated by this Act under 
     the heading ``Economic Support Fund'' should be made 
     available to nongovernmental organizations to support 
     activities which preserve cultural traditions and promote 
     sustainable development and environmental conservation in 
     Tibetan communities in the Tibetan Autonomous Region and in 
     other Tibetan communities in China.
       (c) Notwithstanding any other provision of law, not less 
     than $250,000 of the funds appropriated under the heading 
     ``Economic Support Fund'' should be made available for human 
     rights and democracy programs for Tibetans.
       (d) Not less than $27,000,000 of the funds appropriated by 
     this Act under the heading ``Economic Support Fund'' should 
     be allocated for the Human Rights and Democracy Fund: 
     Provided, That up to $1,200,000 may be used for the Reagan/
     Fascell Democracy Fellows program.
       (e) Notwithstanding any other provision of law, up to 
     $1,500,000 of the funds appropriated by this Act under the 
     heading ``Economic Support Fund'' may be provided to make 
     grants to educational, humanitarian, and nongovernmental 
     organizations and individuals inside Iran and Syria to 
     support the advancement of democracy and human rights in Iran 
     and Syria, and such funds may be provided through the 
     National Endowment for Democracy.


       PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST COUNTRIES

       Sec. 527. (a) Funds appropriated for bilateral assistance 
     under any heading of this Act and funds appropriated under 
     any such heading in a provision of law enacted prior to the 
     enactment of this Act, shall not be made available to any 
     country which the President determines--
       (1) grants sanctuary from prosecution to any individual or 
     group which has committed an act of international terrorism; 
     or
       (2) otherwise supports international terrorism.
       (b) The President may waive the application of subsection 
     (a) to a country if the President determines that national 
     security or humanitarian reasons justify such waiver. The 
     President shall publish each waiver in the Federal Register 
     and, at least 15 days before the waiver takes effect, shall 
     notify the Committees on Appropriations of the waiver 
     (including the justification for the waiver) in accordance 
     with the regular notification procedures of the Committees on 
     Appropriations.


                          DEBT-FOR-DEVELOPMENT

       Sec. 528. In order to enhance the continued participation 
     of nongovernmental organizations in debt-for-development and 
     debt-for-nature exchanges, a nongovernmental organization 
     which is a grantee or contractor of the United States Agency 
     for International Development may place in interest bearing 
     accounts local currencies which accrue to that organization 
     as a result of economic assistance provided under title II of 
     this Act

[[Page 15827]]

     and, subject to the regular notification procedures of the 
     Committees on Appropriations, and any interest earned on such 
     investment shall be used for the purpose for which the 
     assistance was provided to that organization.


                           SEPARATE ACCOUNTS

       Sec. 529. (a) Separate Accounts for Local Currencies.--(1) 
     If assistance is furnished to the government of a foreign 
     country under chapters 1 and 10 of part I or chapter 4 of 
     part II of the Foreign Assistance Act of 1961 under 
     agreements which result in the generation of local currencies 
     of that country, the Administrator of the United States 
     Agency for International Development shall--
       (A) require that local currencies be deposited in a 
     separate account established by that government;
       (B) enter into an agreement with that government which sets 
     forth--
       (i) the amount of the local currencies to be generated; and
       (ii) the terms and conditions under which the currencies so 
     deposited may be utilized, consistent with this section; and
       (C) establish by agreement with that government the 
     responsibilities of the United States Agency for 
     International Development and that government to monitor and 
     account for deposits into and disbursements from the separate 
     account.
       (2) Uses of local currencies.--As may be agreed upon with 
     the foreign government, local currencies deposited in a 
     separate account pursuant to subsection (a), or an equivalent 
     amount of local currencies, shall be used only--
       (A) to carry out chapter 1 or 10 of part I or chapter 4 of 
     part II (as the case may be), for such purposes as--
       (i) project and sector assistance activities; or
       (ii) debt and deficit financing; or
       (B) for the administrative requirements of the United 
     States Government.
       (3) Programming accountability.--The United States Agency 
     for International Development shall take all necessary steps 
     to ensure that the equivalent of the local currencies 
     disbursed pursuant to subsection (a)(2)(A) from the separate 
     account established pursuant to subsection (a)(1) are used 
     for the purposes agreed upon pursuant to subsection (a)(2).
       (4) Termination of assistance programs.--Upon termination 
     of assistance to a country under chapter 1 or 10 of part I or 
     chapter 4 of part II (as the case may be), any unencumbered 
     balances of funds which remain in a separate account 
     established pursuant to subsection (a) shall be disposed of 
     for such purposes as may be agreed to by the government of 
     that country and the United States Government.
       (5) Reporting requirement.--The Administrator of the United 
     States Agency for International Development shall report on 
     an annual basis as part of the justification documents 
     submitted to the Committees on Appropriations on the use of 
     local currencies for the administrative requirements of the 
     United States Government as authorized in subsection 
     (a)(2)(B), and such report shall include the amount of local 
     currency (and United States dollar equivalent) used and/or to 
     be used for such purpose in each applicable country.
       (b) Separate Accounts for Cash Transfers.--(1) If 
     assistance is made available to the government of a foreign 
     country, under chapter 1 or 10 of part I or chapter 4 of part 
     II of the Foreign Assistance Act of 1961, as cash transfer 
     assistance or as nonproject sector assistance, that country 
     shall be required to maintain such funds in a separate 
     account and not commingle them with any other funds.
       (2) Applicability of other provisions of law.--Such funds 
     may be obligated and expended notwithstanding provisions of 
     law which are inconsistent with the nature of this assistance 
     including provisions which are referenced in the Joint 
     Explanatory Statement of the Committee of Conference 
     accompanying House Joint Resolution 648 (House Report No. 98-
     1159).
       (3) Notification.--At least 15 days prior to obligating any 
     such cash transfer or nonproject sector assistance, the 
     President shall submit a notification through the regular 
     notification procedures of the Committees on Appropriations, 
     which shall include a detailed description of how the funds 
     proposed to be made available will be used, with a discussion 
     of the United States interests that will be served by the 
     assistance (including, as appropriate, a description of the 
     economic policy reforms that will be promoted by such 
     assistance).
       (4) Exemption.--Nonproject sector assistance funds may be 
     exempt from the requirements of subsection (b)(1) only 
     through the notification procedures of the Committees on 
     Appropriations.


                      enterprise fund restrictions

       Sec. 530. (a) Prior to the distribution of any assets 
     resulting from any liquidation, dissolution, or winding up of 
     an Enterprise Fund, in whole or in part, the President shall 
     submit to the Committees on Appropriations, in accordance 
     with the regular notification procedures of the Committees on 
     Appropriations, a plan for the distribution of the assets of 
     the Enterprise Fund.
       (b) Funds made available by this Act for Enterprise Funds 
     shall be expended at the minimum rate necessary to make 
     timely payment for projects and activities.


                                 sudan

       Sec. 531. (a) Of the funds appropriated by title II of this 
     Act, not less than $311,000,000 should be made available for 
     assistance for Sudan.
       (b) Subject to section (c):
       (1) Notwithstanding section 501(a) of the International 
     Malaria Control Act of 2000 (Public Law 106-570) or any other 
     provision of law, none of the funds appropriated by this Act 
     may be made available for assistance for the Government of 
     Sudan.
       (2) None of the funds appropriated by this Act may be made 
     available for the cost, as defined in section 502, of the 
     Congressional Budget Act of 1974, of modifying loans and loan 
     guarantees held by the Government of Sudan, including the 
     cost of selling, reducing, or canceling amounts owed to the 
     United States, and modifying concessional loans, guarantees, 
     and credit agreements.
       (c) Subsection (b) shall not apply if the Secretary of 
     State determines and certifies to the Committees on 
     Appropriations that--
       (1) the Government of Sudan has disarmed and disbanded 
     government-supported militia groups in the Darfur region;
       (2) the Government of Sudan and all government-supported 
     militia groups are honoring their commitments made in the 
     cease-fire agreement of April 8, 2004; and
       (3) the Government of Sudan is allowing full and 
     unconditional access to Darfur to humanitarian aid 
     organizations, the human rights investigation and 
     humanitarian teams of the United Nations, including 
     protection officers, and an international monitoring team 
     that is based in Darfur and that has the support of the 
     United States.
       (d) Exceptions.--The provisions of subsection (b) shall not 
     apply to--
       (1) humanitarian assistance; and
       (2) assistance for Darfur and for areas outside the control 
     of the Government of Sudan.
       (e) Definitions.--For the purposes of the Act and section 
     501 of Public Law 106-570, the terms ``Government of Sudan'', 
     ``areas outside of control of the Government of Sudan'', and 
     ``area in Sudan outside of control of the Government of 
     Sudan'' shall have the same meaning and application as was 
     the case immediately prior to the conclusion of the cease-
     fire agreement of April 8, 2004.


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

       Sec. 532. Unless expressly provided to the contrary, 
     provisions of this or any other Act, including provisions 
     contained in prior Acts authorizing or making appropriations 
     for foreign operations, export financing, and related 
     programs, shall not be construed to prohibit activities 
     authorized by or conducted under the Peace Corps Act, the 
     Inter- American Foundation Act or the African Development 
     Foundation Act. The agency shall promptly report to the 
     Committees on Appropriations whenever it is conducting 
     activities or is proposing to conduct activities in a country 
     for which assistance is prohibited.


                  impact on jobs in the united states

       Sec. 533. None of the funds appropriated by this Act may be 
     obligated or expended to provide--
       (1) any financial incentive to a business enterprise 
     currently located in the United States for the purpose of 
     inducing such an enterprise to relocate outside the United 
     States if such incentive or inducement is likely to reduce 
     the number of employees of such business enterprise in the 
     United States because United States production is being 
     replaced by such enterprise outside the United States; or
       (2) assistance for any program, project, or activity that 
     contributes to the violation of internationally recognized 
     workers rights, as defined in section 507(4) of the Trade Act 
     of 1974, of workers in the recipient country, including any 
     designated zone or area in that country: Provided, That the 
     application of section 507(4) (D) and (E) of such Act should 
     be commensurate with the level of development of the 
     recipient country and sector, and shall not preclude 
     assistance for the informal sector in such country, micro and 
     small-scale enterprise, and smallholder agriculture.


                          special authorities

       Sec. 534. (a) Afghanistan, Pakistan, Montenegro, Victims of 
     War, Displaced Children, and Displaced Burmese.--Funds 
     appropriated by this Act that are made available for 
     assistance for Afghanistan may be made available 
     notwithstanding section 512 of this Act or any similar 
     provision of law and section 660 of the Foreign Assistance 
     Act of 1961, and funds appropriated in titles I and II of 
     this Act that are made available for Montenegro, Pakistan, 
     and for victims of war, displaced children, and displaced 
     Burmese, and to assist victims of trafficking in persons and, 
     subject to the regular notification procedures of the 
     Committees on Appropriations, to combat such trafficking, may 
     be made available notwithstanding any other provision of law.

[[Page 15828]]

       (b) Tropical Forestry and Biodiversity Conservation 
     Activities.--Funds appropriated by this Act to carry out the 
     provisions of sections 103 through 106, and chapter 4 of part 
     II, of the Foreign Assistance Act of 1961 may be used, 
     notwithstanding any other provision of law, for the purpose 
     of supporting tropical forestry and biodiversity conservation 
     activities and energy programs aimed at reducing greenhouse 
     gas emissions: Provided, That such assistance shall be 
     subject to sections 116, 502B, and 620A of the Foreign 
     Assistance Act of 1961.
       (c) Personal Services Contractors.--Funds appropriated by 
     this Act to carry out chapter 1 of part I, chapter 4 of part 
     II, and section 667 of the Foreign Assistance Act of 1961, 
     and title II of the Agricultural Trade Development and 
     Assistance Act of 1954, may be used by the United States 
     Agency for International Development to employ up to 25 
     personal services contractors in the United States, 
     notwithstanding any other provision of law, for the purpose 
     of providing direct, interim support for new or expanded 
     overseas programs and activities managed by the agency until 
     permanent direct hire personnel are hired and trained: 
     Provided, That not more than 10 of such contractors shall be 
     assigned to any bureau or office: Provided further, That such 
     funds appropriated to carry out title II of the Agricultural 
     Trade Development and Assistance Act of 1954, may be made 
     available only for personal services contractors assigned to 
     the Office of Food for Peace.
       (d)(1) Waiver.--The President may waive the provisions of 
     section 1003 of Public Law 100-204 if the President 
     determines and certifies in writing to the Speaker of the 
     House of Representatives and the President pro tempore of the 
     Senate that it is important to the national security 
     interests of the United States.
       (2) Period of application of waiver.--Any waiver pursuant 
     to paragraph (1) shall be effective for no more than a period 
     of 6 months at a time and shall not apply beyond 12 months 
     after the enactment of this Act.
       (e) Small Business.--In entering into multiple award 
     indefinite-quantity contracts with funds appropriated by this 
     Act, the United States Agency for International Development 
     may provide an exception to the fair opportunity process for 
     placing task orders under such contracts when the order is 
     placed with any category of small or small disadvantaged 
     business.
       (f) Reconstituting Civilian Police Authority.--In providing 
     assistance with funds appropriated by this Act under section 
     660(b)(6) of the Foreign Assistance Act of 1961, support for 
     a nation emerging from instability may be deemed to mean 
     support for regional, district, municipal, or other sub-
     national entity emerging from instability, as well as a 
     nation emerging from instability.
       (g) National Endowment for Democracy.--Funds appropriated 
     by this Act that are provided to the National Endowment for 
     Democracy may be provided notwithstanding any other provision 
     of law or regulation.
       (h) World Food Program.--Of the funds managed by the Bureau 
     for Democracy, Conflict, and Humanitarian Assistance of the 
     United States Agency for International Development, from this 
     or any other Act, not less than $6,000,000 shall be made 
     available as a general contribution to the World Food 
     Program, notwithstanding any other provision of law.
       (i) Extension of Authority.--Public Law 107-57, as amended, 
     is further amended--
       (1) in section 1(b)--
       (A) in the heading, by striking ``2004'' and inserting 
     ``2005''; and
       (B) in paragraph (1), by striking ``2004'' and inserting 
     ``2005'';
       (2) in section 3(2), by striking ``and 2004'' and inserting 
     in lieu thereof ``2004, and 2005''; and
       (3) in section 6, by striking ``2004'' and inserting in 
     lieu thereof ``2005''.


                     ARAB LEAGUE BOYCOTT OF ISRAEL

       Sec. 535. It is the sense of the Congress that--
       (1) the Arab League boycott of Israel, and the secondary 
     boycott of American firms that have commercial ties with 
     Israel, is an impediment to peace in the region and to United 
     States investment and trade in the Middle East and North 
     Africa;
       (2) the Arab League boycott, which was regrettably 
     reinstated in 1997, should be immediately and publicly 
     terminated, and the Central Office for the Boycott of Israel 
     immediately disbanded;
       (3) the three Arab League countries with diplomatic and 
     trade relations with Israel should return their ambassadors 
     to Israel, should refrain from downgrading their relations 
     with Israel, and should play a constructive role in securing 
     a peaceful resolution of the Israeli-Arab conflict;
       (4) the remaining Arab League states should normalize 
     relations with their neighbor Israel;
       (5) the President and the Secretary of State should 
     continue to vigorously oppose the Arab League boycott of 
     Israel and find concrete steps to demonstrate that opposition 
     by, for example, taking into consideration the participation 
     of any recipient country in the boycott when determining to 
     sell weapons to said country; and
       (6) the President should report to Congress annually on 
     specific steps being taken by the United States to encourage 
     Arab League states to normalize their relations with Israel 
     to bring about the termination of the Arab League boycott of 
     Israel, including those to encourage allies and trading 
     partners of the United States to enact laws prohibiting 
     businesses from complying with the boycott and penalizing 
     businesses that do comply.


                       eligibility for assistance

       Sec. 536. (a) Assistance Through Nongovernmental 
     Organizations.--Restrictions contained in this or any other 
     Act with respect to assistance for a country shall not be 
     construed to restrict assistance in support of programs of 
     nongovernmental organizations from funds appropriated by this 
     Act to carry out the provisions of chapters 1, 10, 11, and 12 
     of part I and chapter 4 of part II of the Foreign Assistance 
     Act of 1961, and from funds appropriated under the heading 
     ``Assistance for Eastern Europe and the Baltic States'': 
     Provided, That before using the authority of this subsection 
     to furnish assistance in support of programs of 
     nongovernmental organizations, the President shall notify the 
     Committees on Appropriations under the regular notification 
     procedures of those committees, including a description of 
     the program to be assisted, the assistance to be provided, 
     and the reasons for furnishing such assistance: Provided 
     further, That nothing in this subsection shall be construed 
     to alter any existing statutory prohibitions against abortion 
     or involuntary sterilizations contained in this or any other 
     Act.
       (b) Public Law 480.--During fiscal year 2005, restrictions 
     contained in this or any other Act with respect to assistance 
     for a country shall not be construed to restrict assistance 
     under the Agricultural Trade Development and Assistance Act 
     of 1954: Provided, That none of the funds appropriated to 
     carry out title I of such Act and made available pursuant to 
     this subsection may be obligated or expended except as 
     provided through the regular notification procedures of the 
     Committees on Appropriations.
       (c) Exception.--This section shall not apply--
       (1) with respect to section 620A of the Foreign Assistance 
     Act of 1961 or any comparable provision of law prohibiting 
     assistance to countries that support international terrorism; 
     or
       (2) with respect to section 116 of the Foreign Assistance 
     Act of 1961 or any comparable provision of law prohibiting 
     assistance to the government of a country that violates 
     internationally recognized human rights.


                         reservations of funds

       Sec. 537. (a) Funds appropriated by this Act which are 
     earmarked may be reprogrammed for other programs within the 
     same account notwithstanding the earmark if compliance with 
     the earmark is made impossible by operation of any provision 
     of this or any other Act: Provided, That any such 
     reprogramming shall be subject to the regular notification 
     procedures of the Committees on Appropriations: Provided 
     further, That assistance that is reprogrammed pursuant to 
     this subsection shall be made available under the same terms 
     and conditions as originally provided.
       (b) In addition to the authority contained in subsection 
     (a), the original period of availability of funds 
     appropriated by this Act and administered by the United 
     States Agency for International Development that are 
     earmarked for particular programs or activities by this or 
     any other Act shall be extended for an additional fiscal year 
     if the Administrator of such agency determines and reports 
     promptly to the Committees on Appropriations that the 
     termination of assistance to a country or a significant 
     change in circumstances makes it unlikely that such earmarked 
     funds can be obligated during the original period of 
     availability: Provided, That such earmarked funds that are 
     continued available for an additional fiscal year shall be 
     obligated only for the purpose of such earmark.


                         ceilings and earmarks

       Sec. 538. Ceilings and earmarks contained in this Act shall 
     not be applicable to funds or authorities appropriated or 
     otherwise made available by any subsequent Act unless such 
     Act specifically so directs. Earmarks or minimum funding 
     requirements contained in any other Act shall not be 
     applicable to funds appropriated by this Act.


                 prohibition on publicity or propaganda

       Sec. 539. No part of any appropriation contained in this 
     Act shall be used for publicity or propaganda purposes within 
     the United States not authorized before the date of the 
     enactment of this Act by the Congress: Provided, That not to 
     exceed $750,000 may be made available to carry out the 
     provisions of section 316 of Public Law 96-533.


           prohibition of payments to united nations members

       Sec. 540. None of the funds appropriated or made available 
     pursuant to this Act for carrying out the Foreign Assistance 
     Act of 1961, may be used to pay in whole or in part any 
     assessments, arrearages, or dues of any member of the United 
     Nations or, from funds appropriated by this Act to carry out 
     chapter 1 of part I of the Foreign Assistance Act

[[Page 15829]]

     of 1961, the costs for participation of another country's 
     delegation at international conferences held under the 
     auspices of multilateral or international organizations.


              nongovernmental organizations--documentation

       Sec. 541. None of the funds appropriated or made available 
     pursuant to this Act shall be available to a nongovernmental 
     organization which fails to provide upon timely request any 
     document, file, or record necessary to the auditing 
     requirements of the United States Agency for International 
     Development.


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

       Sec. 542. (a) None of the funds appropriated or otherwise 
     made available by this Act may be available to any foreign 
     government which provides lethal military equipment to a 
     country the government of which the Secretary of State has 
     determined is a terrorist government for purposes of section 
     6(j) of the Export Administration Act. The prohibition under 
     this section with respect to a foreign government shall 
     terminate 12 months after that government ceases to provide 
     such military equipment. This section applies with respect to 
     lethal military equipment provided under a contract entered 
     into after October 1, 1997.
       (b) Assistance restricted by subsection (a) or any other 
     similar provision of law, may be furnished if the President 
     determines that furnishing such assistance is important to 
     the national interests of the United States.
       (c) Whenever the waiver authority of subsection (b) is 
     exercised, the President shall submit to the appropriate 
     congressional committees a report with respect to the 
     furnishing of such assistance. Any such report shall include 
     a detailed explanation of the assistance to be provided, 
     including the estimated dollar amount of such assistance, and 
     an explanation of how the assistance furthers United States 
     national interests.


 withholding of assistance for parking fines owed by foreign countries

       Sec. 543. (a) Subject to subsection (c), of the funds 
     appropriated by this Act that are made available for 
     assistance for a foreign country, an amount equal to 110 
     percent of the total amount of the unpaid fully adjudicated 
     parking fines and penalties owed by such country shall be 
     withheld from obligation for such country until the Secretary 
     of State submits a certification to the appropriate 
     congressional committees stating that such parking fines and 
     penalties are fully paid.
       (b) Funds withheld from obligation pursuant to subsection 
     (a) may be made available for other programs or activities 
     funded by this Act, after consultation with and subject to 
     the regulation notification procedures of the appropriate 
     congressional committees, provided that no such funds shall 
     be made available for assistance to the central government of 
     a foreign country that has not paid the total amount of the 
     fully adjudicated parking fines and penalties owed by such 
     country.
       (c) Subsection (a) shall not include amounts that have been 
     withheld under any other provision of law.
       (d) The Secretary of State may waive the requirements set 
     forth in subsection (a) no sooner than 60 days from the date 
     of enactment of this Act, or at any time with respect to a 
     particular country, if the Secretary determines that it is in 
     the national interests of the United States to do so.
       (e) Not later than 6 months after the initial exercise of 
     the waiver authority in subsection (d), the Secretary of 
     State, after consultations with the City of New York, shall 
     submit a report to the Committees on Appropriations 
     describing a strategy, including a timetable and steps 
     currently being taken, to collect the parking fines and 
     penalties owed by nations receiving foreign assistance under 
     this Act.
       (f) In this section:
       (1) The term ``appropriate congressional committees'' means 
     the Committee on Appropriations of the Senate and the 
     Committee on Appropriations of the House of Representatives.
       (2) The term ``fully adjudicated'' includes circumstances 
     in which the person to whom the vehicle is registered--
       (A)(i) has not responded to the parking violation summons; 
     or
       (ii) has not followed the appropriate adjudication 
     procedure to challenge the summons; and
       (B) the period of time for payment of or challenge to the 
     summons has lapsed.
       (3) The term ``parking fines and penalties'' means parking 
     fines and penalties--
       (A) owed to--
       (i) the District of Columbia; or
       (ii) New York, New York; and
       (B) incurred during the period April 1, 1997 through 
     September 30, 2004.


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

       Sec. 544. None of the funds appropriated by this Act may be 
     obligated for assistance for the Palestine Liberation 
     Organization for the West Bank and Gaza unless the President 
     has exercised the authority under section 604(a) of the 
     Middle East Peace Facilitation Act of 1995 (title VI of 
     Public Law 104-107) or any other legislation to suspend or 
     make inapplicable section 307 of the Foreign Assistance Act 
     of 1961 and that suspension is still in effect: Provided, 
     That if the President fails to make the certification under 
     section 604(b)(2) of the Middle East Peace Facilitation Act 
     of 1995 or to suspend the prohibition under other 
     legislation, funds appropriated by this Act may not be 
     obligated for assistance for the Palestine Liberation 
     Organization for the West Bank and Gaza.


                     war crimes tribunals drawdown

       Sec. 545. If the President determines that doing so will 
     contribute to a just resolution of charges regarding genocide 
     or other violations of international humanitarian law, the 
     President may direct a drawdown pursuant to section 552(c) of 
     the Foreign Assistance Act of 1961 of up to $30,000,000 of 
     commodities and services for the United Nations War Crimes 
     Tribunal established with regard to the former Yugoslavia by 
     the United Nations Security Council or such other tribunals 
     or commissions as the Council may establish or authorize to 
     deal with such violations, without regard to the ceiling 
     limitation contained in paragraph (2) thereof: Provided, That 
     the determination required under this section shall be in 
     lieu of any determinations otherwise required under section 
     552(c): Provided further, That the drawdown made under this 
     section for any tribunal shall not be construed as an 
     endorsement or precedent for the establishment of any 
     standing or permanent international criminal tribunal or 
     court: Provided further, That funds made available for 
     tribunals other than Yugoslavia, Rwanda, or the Special Court 
     for Sierra Leone shall be made available subject to the 
     regular notification procedures of the Committees on 
     Appropriations.


                               landmines

       Sec. 546. Notwithstanding any other provision of law, 
     demining equipment available to the United States Agency for 
     International Development and the Department of State and 
     used in support of the clearance of landmines and unexploded 
     ordnance for humanitarian purposes may be disposed of on a 
     grant basis in foreign countries, subject to such terms and 
     conditions as the President may prescribe.


           restrictions concerning the palestinian authority

       Sec. 547. None of the funds appropriated by this Act may be 
     obligated or expended to create in any part of Jerusalem a 
     new office of any department or agency of the United States 
     Government for the purpose of conducting official United 
     States Government business with the Palestinian Authority 
     over Gaza and Jericho or any successor Palestinian governing 
     entity provided for in the Israel-PLO Declaration of 
     Principles: Provided, That this restriction shall not apply 
     to the acquisition of additional space for the existing 
     Consulate General in Jerusalem: Provided further, That 
     meetings between officers and employees of the United States 
     and officials of the Palestinian Authority, or any successor 
     Palestinian governing entity provided for in the Israel-PLO 
     Declaration of Principles, for the purpose of conducting 
     official United States Government business with such 
     authority should continue to take place in locations other 
     than Jerusalem. As has been true in the past, officers and 
     employees of the United States Government may continue to 
     meet in Jerusalem on other subjects with Palestinians 
     (including those who now occupy positions in the Palestinian 
     Authority), have social contacts, and have incidental 
     discussions.


               prohibition of payment of certain expenses

       Sec. 548. None of the funds appropriated or otherwise made 
     available by this Act under the heading ``International 
     Military Education and Training'' or ``Foreign Military 
     Financing Program'' for Informational Program activities or 
     under the headings ``Child Survival and Health Programs 
     Fund'', ``Development Assistance'', and ``Economic Support 
     Fund'' may be obligated or expended to pay for--
       (1) alcoholic beverages; or
       (2) entertainment expenses for activities that are 
     substantially of a recreational character, including but not 
     limited to entrance fees at sporting events, theatrical and 
     musical productions, and amusement parks.


                                 Haiti

       Sec. 549. The Government of Haiti shall be eligible to 
     purchase defense articles and services under the Arms Export 
     Control Act (22 U.S.C. 2751 et seq.), for the Coast Guard.


         limitation on assistance to the palestinian authority

       Sec. 550. (a) Prohibition of Funds.--None of the funds 
     appropriated by this Act to carry out the provisions of 
     chapter 4 of part II of the Foreign Assistance Act of 1961 
     may be obligated or expended with respect to providing funds 
     to the Palestinian Authority.
       (b) Waiver.--The prohibition included in subsection (a) 
     shall not apply if the President certifies in writing to the 
     Speaker of the House of Representatives and the President pro 
     tempore of the Senate that waiving such prohibition is 
     important to the national security interests of the United 
     States.
       (c) Period of Application of Waiver.--Any waiver pursuant 
     to subsection (b) shall

[[Page 15830]]

     be effective for no more than a period of 6 months at a time 
     and shall not apply beyond 12 months after the enactment of 
     this Act.
       (d) Report.--Whenever the waiver authority pursuant to 
     subsection (b) is exercised, the President shall submit a 
     report to the Committees on Appropriations detailing the 
     steps the Palestinian Authority has taken to arrest 
     terrorists, confiscate weapons and dismantle the terrorist 
     infrastructure. The report shall also include a description 
     of how funds will be spent and the accounting procedures in 
     place to ensure that they are properly disbursed.


              limitation on assistance to security forces

       Sec. 551. None of the funds made available by this Act may 
     be provided to any unit of the security forces of a foreign 
     country if the Secretary of State has credible evidence that 
     such unit has committed gross violations of human rights, 
     unless the Secretary determines and reports to the Committees 
     on Appropriations that the government of such country is 
     taking effective measures to bring the responsible members of 
     the security forces unit to justice: Provided, That nothing 
     in this section shall be construed to withhold funds made 
     available by this Act from any unit of the security forces of 
     a foreign country not credibly alleged to be involved in 
     gross violations of human rights: Provided further, That in 
     the event that funds are withheld from any unit pursuant to 
     this section, the Secretary of State shall promptly inform 
     the foreign government of the basis for such action and 
     shall, to the maximum extent practicable, assist the foreign 
     government in taking effective measures to bring the 
     responsible members of the security forces to justice.


                    FOREIGN MILITARY TRAINING REPORT

       Sec. 552. The annual foreign military training report 
     required by section 656 of the Foreign Assistance Act of 1961 
     shall be submitted by the Secretary of Defense and the 
     Secretary of State to the Committees on Appropriations of the 
     House of Representatives and the Senate by the date specified 
     in that section.


                       AUTHORIZATION REQUIREMENT

       Sec. 553. Funds appropriated by this Act, except funds 
     appropriated under the headings ``Trade and Development 
     Agency'', ``Millennium Challenge Corporation'', and ``Global 
     HIV/AIDS Initiative'', may be obligated and expended 
     notwithstanding section 10 of Public Law 91-672 and section 
     15 of the State Department Basic Authorities Act of 1956.


                                cambodia

       Sec. 554. The Secretary of the Treasury should instruct the 
     United States executive directors of the international 
     financial institutions to use the voice and vote of the 
     United States to oppose loans to the Central Government of 
     Cambodia, except loans to meet basic human needs.


                         palestinian statehood

       Sec. 555. (a) Limitation on Assistance.--None of the funds 
     appropriated by this Act may be provided to support a 
     Palestinian state unless the Secretary of State determines 
     and certifies to the appropriate congressional committees 
     that--
       (1) a new leadership of a Palestinian governing entity has 
     been democratically elected through credible and competitive 
     elections;
       (2) the elected governing entity of a new Palestinian 
     state--
       (A) has demonstrated a firm commitment to peaceful co-
     existence with the State of Israel;
       (B) is taking appropriate measures to counter terrorism and 
     terrorist financing in the West Bank and Gaza, including the 
     dismantling of terrorist infrastructures;
       (C) is establishing a new Palestinian security entity that 
     is cooperative with appropriate Israeli and other appropriate 
     security organizations; and
       (3) the Palestinian Authority (or the governing body of a 
     new Palestinian state) is working with other countries in the 
     region to vigorously pursue efforts to establish a just, 
     lasting, and comprehensive peace in the Middle East that will 
     enable Israel and an independent Palestinian state to exist 
     within the context of full and normal relationships, which 
     should include--
       (A) termination of all claims or states of belligerency;
       (B) respect for and acknowledgement of the sovereignty, 
     territorial integrity, and political independence of every 
     state in the area through measures including the 
     establishment of demilitarized zones;
       (C) their right to live in peace within secure and 
     recognized boundaries free from threats or acts of force;
       (D) freedom of navigation through international waterways 
     in the area; and
       (E) a framework for achieving a just settlement of the 
     refugee problem.
       (b) Sense of Congress.--It is the sense of Congress that 
     the newly elected governing entity should enact a 
     constitution assuring the rule of law, an independent 
     judiciary, and respect for human rights for its citizens, and 
     should enact other laws and regulations assuring transparent 
     and accountable governance.
       (c) Waiver.--The President may waive subsection (a) if he 
     determines that it is vital to the national security 
     interests of the United States to do so.
       (d) Exemption.--The restriction in subsection (a) shall not 
     apply to assistance intended to help reform the Palestinian 
     Authority and affiliated institutions, or a newly elected 
     governing entity, in order to help meet the requirements of 
     subsection (a), consistent with the provisions of section 550 
     of this Act (``Limitation on Assistance to the Palestinian 
     Authority'').


                                COLOMBIA

       Sec. 556. (a) Determination and Certification Required.--
     Notwithstanding any other provision of law, funds 
     appropriated by this Act that are available for assistance 
     for the Colombian Armed Forces, may be made available as 
     follows:
       (1) Up to 75 percent of such funds may be obligated prior 
     to a determination and certification by the Secretary of 
     State pursuant to paragraph (2).
       (2) Up to 12.5 percent of such funds may be obligated only 
     after the Secretary of State certifies and reports to the 
     appropriate congressional committees that:
       (A) The Commander General of the Colombian Armed Forces is 
     suspending from the Armed Forces those members, of whatever 
     rank who, according to the Minister of Defense or the 
     Procuraduria General de la Nacion, have been credibly alleged 
     to have committed gross violations of human rights, including 
     extra-judicial killings, or to have aided or abetted 
     paramilitary organizations.
       (B) The Colombian Government is vigorously investigating 
     and prosecuting those members of the Colombian Armed Forces, 
     of whatever rank, who have been credibly alleged to have 
     committed gross violations of human rights, including extra-
     judicial killings, or to have aided or abetted paramilitary 
     organizations, and is promptly punishing those members of the 
     Colombian Armed Forces found to have committed such 
     violations of human rights or to have aided or abetted 
     paramilitary organizations.
       (C) The Colombian Armed Forces have made substantial 
     progress in cooperating with civilian prosecutors and 
     judicial authorities in such cases (including providing 
     requested information, such as the identity of persons 
     suspended from the Armed Forces and the nature and cause of 
     the suspension, and access to witnesses, relevant military 
     documents, and other requested information).
       (D) The Colombian Armed Forces have made substantial 
     progress in severing links (including denying access to 
     military intelligence, vehicles, and other equipment or 
     supplies, and ceasing other forms of active or tacit 
     cooperation) at the command, battalion, and brigade levels, 
     with paramilitary organizations, especially in regions where 
     these organizations have a significant presence.
       (E) The Colombian Armed Forces are dismantling paramilitary 
     leadership and financial networks by arresting commanders and 
     financial backers, especially in regions where these networks 
     have a significant presence.
       (3) The balance of such funds may be obligated after July 
     31, 2005, if the Secretary of State certifies and reports to 
     the appropriate congressional committees, after such date, 
     that the Colombian Armed Forces are continuing to meet the 
     conditions contained in paragraph (2) and are conducting 
     vigorous operations to restore government authority and 
     respect for human rights in areas under the effective control 
     of paramilitary and guerrilla organizations.
       (b) Congressional Notification.--Funds made available by 
     this Act for the Colombian Armed Forces shall be subject to 
     the regular notification procedures of the Committees on 
     Appropriations.
       (c) Consultative Process.--Not later than 60 days after the 
     date of enactment of this Act, and every 90 days thereafter 
     until September 30, 2006, the Secretary of State shall 
     consult with internationally recognized human rights 
     organizations regarding progress in meeting the conditions 
     contained in that subsection.
       (d) Definitions.--In this section:
       (1) Aided or abetted.--The term ``aided or abetted'' means 
     to provide any support to paramilitary groups, including 
     taking actions which allow, facilitate, or otherwise foster 
     the activities of such groups.
       (2) Paramilitary groups.--The term ``paramilitary groups'' 
     means illegal self-defense groups and illegal security 
     cooperatives.


                          ILLEGAL ARMED GROUPS

       Sec. 557. (a) Denial of Visas to Supporters of Colombian 
     Illegal Armed Groups.--Subject to subsection (b), the 
     Secretary of State shall not issue a visa to any alien who 
     the Secretary determines, based on credible evidence--
       (1) has willfully provided any support to the Revolutionary 
     Armed Forces of Colombia (FARC), the National Liberation Army 
     (ELN), or the United Self-Defense Forces of Colombia (AUC), 
     including taking actions or failing to take actions which 
     allow, facilitate, or otherwise foster the activities of such 
     groups; or
       (2) has committed, ordered, incited, assisted, or otherwise 
     participated in the commission of gross violations of human 
     rights, including extra-judicial killings, in Colombia.

[[Page 15831]]

       (b) Waiver.--Subsection (a) shall not apply if the 
     Secretary of State determines and certifies to the 
     appropriate congressional committees, on a case-by-case 
     basis, that the issuance of a visa to the alien is necessary 
     to support the peace process in Colombia or for urgent 
     humanitarian reasons.


 PROHIBITION ON ASSISTANCE TO THE PALESTINIAN BROADCASTING CORPORATION

       Sec. 558. None of the funds appropriated or otherwise made 
     available by this Act may be used to provide equipment, 
     technical support, consulting services, or any other form of 
     assistance to the Palestinian Broadcasting Corporation.


                       west bank and gaza program

       Sec. 559. (a) Oversight.--For fiscal year 2005, 30 days 
     prior to the initial obligation of funds for the bilateral 
     West Bank and Gaza Program, the Secretary of State shall 
     certify to the appropriate committees of Congress that 
     procedures have been established to assure the Comptroller 
     General of the United States will have access to appropriate 
     United States financial information in order to review the 
     uses of United States assistance for the Program funded under 
     the heading ``Economic Support Fund'' for the West Bank and 
     Gaza.
       (b) Vetting.--Prior to the obligation of funds appropriated 
     by this Act under the heading ``Economic Support Fund'' for 
     assistance for the West Bank and Gaza, the Secretary of State 
     shall take all appropriate steps to ensure that such 
     assistance is not provided to or through any individual, 
     private or government entity, or educational institution that 
     the Secretary knows or has reason to believe advocates, 
     plans, sponsors, engages in, or has engaged in, terrorist 
     activity. The Secretary of State shall, as appropriate, 
     establish procedures specifying the steps to be taken in 
     carrying out this subsection and shall terminate assistance 
     to any individual, entity, or educational institution found 
     to be involved in or advocating terrorist activity.
       (c) Audits.--(1) The Administrator of the United States 
     Agency for International Development shall ensure that 
     Federal or non-Federal audits of all contractors and 
     grantees, and significant subcontractors and subgrantees, 
     under the West Bank and Gaza Program, are conducted at least 
     on an annual basis to ensure, among other things, compliance 
     with this section.
       (2) Of the funds appropriated by this Act under the heading 
     ``Economic Support Fund'' that are made available for 
     assistance for the West Bank and Gaza, up to $1,000,000 may 
     be used by the Office of the Inspector General of the United 
     States Agency for International Development for audits, 
     inspections, and other activities in furtherance of the 
     requirements of this subsection. Such funds are in addition 
     to funds otherwise available for such purposes.


            contributions to united nations population fund

       Sec. 560. (a) Limitations on Amount of Contribution.--Of 
     the amounts made available under ``International 
     Organizations and Programs'', $25,000,000 for fiscal year 
     2005 shall be available for the United Nations Population 
     Fund (hereafter in this section referred to as the 
     ``UNFPA'').
       (b) Prohibition on Use of Funds in China.--None of the 
     funds made available under ``International Organizations and 
     Programs'' may be made available for the UNFPA for a country 
     program in the People's Republic of China.
       (c) Conditions on Availability of Funds.--Amounts made 
     available under ``International Organizations and Programs'' 
     for fiscal year 2005 for the UNFPA may not be made available 
     to UNFPA unless--
       (1) the UNFPA maintains amounts made available to the UNFPA 
     under this section in an account separate from other accounts 
     of the UNFPA;
       (2) the UNFPA does not commingle amounts made available to 
     the UNFPA under this section with other sums; and
       (3) the UNFPA does not fund abortions.


                             WAR CRIMINALS

       Sec. 561. (a)(1) None of the funds appropriated or 
     otherwise made available pursuant to this Act may be made 
     available for assistance, and the Secretary of the Treasury 
     shall instruct the United States executive directors to the 
     international financial institutions to vote against any new 
     project involving the extension by such institutions of any 
     financial or technical assistance, to any country, entity, or 
     municipality whose competent authorities have failed, as 
     determined by the Secretary of State, to take necessary and 
     significant steps to implement its international legal 
     obligations to apprehend and transfer to the International 
     Criminal Tribunal for the former Yugoslavia (the 
     ``Tribunal'') all persons in their territory who have been 
     indicted by the Tribunal and to otherwise cooperate with the 
     Tribunal.
       (2) The provisions of this subsection shall not apply to 
     humanitarian assistance or assistance for democratization.
       (b) The provisions of subsection (a) shall apply unless the 
     Secretary of State determines and reports to the appropriate 
     congressional committees that the competent authorities of 
     such country, entity, or municipality are--
       (1) cooperating with the Tribunal, including access for 
     investigators to archives and witnesses, the provision of 
     documents, and the surrender and transfer of indictees or 
     assistance in their apprehension; and
       (2) are acting consistently with the Dayton Accords.
       (c) Not less than 10 days before any vote in an 
     international financial institution regarding the extension 
     of any new project involving financial or technical 
     assistance or grants to any country or entity described in 
     subsection (a), the Secretary of the Treasury, in 
     consultation with the Secretary of State, shall provide to 
     the Committees on Appropriations a written justification for 
     the proposed assistance, including an explanation of the 
     United States position regarding any such vote, as well as a 
     description of the location of the proposed assistance by 
     municipality, its purpose, and its intended beneficiaries.
       (d) In carrying out this section, the Secretary of State, 
     the Administrator of the United States Agency for 
     International Development, and the Secretary of the Treasury 
     shall consult with representatives of human rights 
     organizations and all government agencies with relevant 
     information to help prevent indicted war criminals from 
     benefiting from any financial or technical assistance or 
     grants provided to any country or entity described in 
     subsection (a).
       (e) The Secretary of State may waive the application of 
     subsection (a) with respect to projects within a country, 
     entity, or municipality upon a written determination to the 
     Committees on Appropriations that such assistance directly 
     supports the implementation of the Dayton Accords.
       (f) Definitions.--As used in this section--
       (1) Country.--The term ``country'' means Bosnia and 
     Herzegovina, Croatia and Serbia.
       (2) Entity.--The term ``entity'' refers to the Federation 
     of Bosnia and Herzegovina, Kosovo, Montenegro and the 
     Republika Srpska.
       (3) Municipality.--The term ``municipality'' means a city, 
     town or other subdivision within a country or entity as 
     defined herein.
       (4) Dayton accords.--The term ``Dayton Accords'' means the 
     General Framework Agreement for Peace in Bosnia and 
     Herzegovina, together with annexes relating thereto, done at 
     Dayton, November 10 through 16, 1995.


                               User Fees

       Sec. 562. The Secretary of the Treasury shall instruct the 
     United States Executive Director at each international 
     financial institution (as defined in section 1701(c)(2) of 
     the International Financial Institutions Act) and the 
     International Monetary Fund to oppose any loan, grant, 
     strategy or policy of these institutions that would require 
     user fees or service charges on poor people for primary 
     education or primary healthcare, including prevention and 
     treatment efforts for HIV/AIDS, malaria, tuberculosis, and 
     infant, child, and maternal well-being, in connection with 
     the institutions' financing programs.


                           funding for serbia

       Sec. 563. (a) Funds appropriated by this Act may be made 
     available for assistance for Serbia after March 31, 2005, if 
     the President has made the determination and certification 
     contained in subsection (c).
       (b) After March 31, 2005, the Secretary of the Treasury 
     should instruct the United States executive directors to the 
     international financial institutions to support loans and 
     assistance to the Government of the Federal Republic of 
     Yugoslavia (or a government of a successor state) subject to 
     the conditions in subsection (c): Provided, That section 576 
     of the Foreign Operations, Export Financing, and Related 
     Programs Appropriations Act, 1997, as amended, shall not 
     apply to the provision of loans and assistance to the Federal 
     Republic of Yugoslavia (or a successor state) through 
     international financial institutions.
       (c) The determination and certification referred to in 
     subsection (a) is a determination by the President and a 
     certification to the Committees on Appropriations that the 
     Government of the Federal Republic of Yugoslavia (or a 
     government of a successor state) is--
       (1) cooperating with the International Criminal Tribunal 
     for the former Yugoslavia including access for investigators, 
     the provision of documents, and the surrender and transfer of 
     indictees or assistance in their apprehension, including 
     making all practicable efforts to apprehend and transfer 
     Ratko Mladic;
       (2) taking steps that are consistent with the Dayton 
     Accords to end Serbian financial, political, security and 
     other support which has served to maintain separate Republika 
     Srpska institutions; and
       (3) taking steps to implement policies which reflect a 
     respect for minority rights and the rule of law, including 
     the release of political prisoners from Serbian jails and 
     prisons.
       (d) This section shall not apply to Montenegro, Kosovo, 
     humanitarian assistance, assistance to promote democracy in 
     municipalities, or assistance to nongovernmental 
     organizations to promote democracy.


                   Community-Based Police Assistance

       Sec. 564. (a) Authority.--Funds made available by this Act 
     to carry out the provisions of chapter 1 of part I and 
     chapter 4 of

[[Page 15832]]

     part II of the Foreign Assistance Act of 1961, may be used, 
     notwithstanding section 660 of that Act, to enhance the 
     effectiveness and accountability of civilian police authority 
     in Jamaica and El Salvador through training and technical 
     assistance in human rights, the rule of law, strategic 
     planning, and through assistance to foster civilian police 
     roles that support democratic governance including assistance 
     for programs to prevent conflict and foster improved police 
     relations with the communities they serve.
       (b) Notification.--Assistance provided under subsection (a) 
     shall be subject to the regular notification procedures of 
     the Committees on Appropriations.


                  Special Debt Relief for the Poorest

       Sec. 565. (a) Authority To Reduce Debt.--The President may 
     reduce amounts owed to the United States (or any agency of 
     the United States) by an eligible country as a result of--
       (1) guarantees issued under sections 221 and 222 of the 
     Foreign Assistance Act of 1961;
       (2) credits extended or guarantees issued under the Arms 
     Export Control Act; or
       (3) any obligation or portion of such obligation, to pay 
     for purchases of United States agricultural commodities 
     guaranteed by the Commodity Credit Corporation under export 
     credit guarantee programs authorized pursuant to section 5(f) 
     of the Commodity Credit Corporation Charter Act of June 29, 
     1948, as amended, section 4(b) of the Food for Peace Act of 
     1966, as amended (Public Law 89-808), or section 202 of the 
     Agricultural Trade Act of 1978, as amended (Public Law 95-
     501).
       (b) Limitations.--
       (1) The authority provided by subsection (a) may be 
     exercised only to implement multilateral official debt relief 
     and referendum agreements, commonly referred to as ``Paris 
     Club Agreed Minutes''.
       (2) The authority provided by subsection (a) may be 
     exercised only in such amounts or to such extent as is 
     provided in advance by appropriations Acts.
       (3) The authority provided by subsection (a) may be 
     exercised only with respect to countries with heavy debt 
     burdens that are eligible to borrow from the International 
     Development Association, but not from the International Bank 
     for Reconstruction and Development, commonly referred to as 
     ``IDA-only'' countries.
       (c) Conditions.--The authority provided by subsection (a) 
     may be exercised only with respect to a country whose 
     government--
       (1) does not have an excessive level of military 
     expenditures;
       (2) has not repeatedly provided support for acts of 
     international terrorism;
       (3) is not failing to cooperate on international narcotics 
     control matters;
       (4) (including its military or other security forces) does 
     not engage in a consistent pattern of gross violations of 
     internationally recognized human rights; and
       (5) is not ineligible for assistance because of the 
     application of section 527 of the Foreign Relations 
     Authorization Act, Fiscal Years 1994 and 1995.
       (d) Availability of Funds.--The authority provided by 
     subsection (a) may be used only with regard to the funds 
     appropriated by this Act under the heading ``Debt 
     Restructuring''.
       (e) Certain Prohibitions Inapplicable.--A reduction of debt 
     pursuant to subsection (a) shall not be considered assistance 
     for the purposes of any provision of law limiting assistance 
     to a country. The authority provided by subsection (a) may be 
     exercised notwithstanding section 620(r) of the Foreign 
     Assistance Act of 1961 or section 321 of the International 
     Development and Food Assistance Act of 1975.


             Authority to Engage in Debt Buybacks or Sales

       Sec. 566. (a) Loans Eligible for Sale, Reduction, or 
     Cancellation.--
       (1) Authority to sell, reduce, or cancel certain loans.--
     Notwithstanding any other provision of law, the President 
     may, in accordance with this section, sell to any eligible 
     purchaser any concessional loan or portion thereof made 
     before January 1, 1995, pursuant to the Foreign Assistance 
     Act of 1961, to the government of any eligible country as 
     defined in section 702(6) of that Act or on receipt of 
     payment from an eligible purchaser, reduce or cancel such 
     loan or portion thereof, only for the purpose of 
     facilitating--
       (A) debt-for-equity swaps, debt-for-development swaps, or 
     debt-for-nature swaps; or
       (B) a debt buyback by an eligible country of its own 
     qualified debt, only if the eligible country uses an 
     additional amount of the local currency of the eligible 
     country, equal to not less than 40 percent of the price paid 
     for such debt by such eligible country, or the difference 
     between the price paid for such debt and the face value of 
     such debt, to support activities that link conservation and 
     sustainable use of natural resources with local community 
     development, and child survival and other child development, 
     in a manner consistent with sections 707 through 710 of the 
     Foreign Assistance Act of 1961, if the sale, reduction, or 
     cancellation would not contravene any term or condition of 
     any prior agreement relating to such loan.
       (2) Terms and conditions.--Notwithstanding any other 
     provision of law, the President shall, in accordance with 
     this section, establish the terms and conditions under which 
     loans may be sold, reduced, or canceled pursuant to this 
     section.
       (3) Administration.--The Facility, as defined in section 
     702(8) of the Foreign Assistance Act of 1961, shall notify 
     the administrator of the agency primarily responsible for 
     administering part I of the Foreign Assistance Act of 1961 of 
     purchasers that the President has determined to be eligible, 
     and shall direct such agency to carry out the sale, 
     reduction, or cancellation of a loan pursuant to this 
     section. Such agency shall make adjustment in its accounts to 
     reflect the sale, reduction, or cancellation.
       (4) Limitation.--The authorities of this subsection shall 
     be available only to the extent that appropriations for the 
     cost of the modification, as defined in section 502 of the 
     Congressional Budget Act of 1974, are made in advance.
       (b) Deposit of Proceeds.--The proceeds from the sale, 
     reduction, or cancellation of any loan sold, reduced, or 
     canceled pursuant to this section shall be deposited in the 
     United States Government account or accounts established for 
     the repayment of such loan.
       (c) Eligible Purchasers.--A loan may be sold pursuant to 
     subsection (a)(1)(A) only to a purchaser who presents plans 
     satisfactory to the President for using the loan for the 
     purpose of engaging in debt-for-equity swaps, debt-for-
     development swaps, or debt-for-nature swaps.
       (d) Debtor Consultations.--Before the sale to any eligible 
     purchaser, or any reduction or cancellation pursuant to this 
     section, of any loan made to an eligible country, the 
     President should consult with the country concerning the 
     amount of loans to be sold, reduced, or canceled and their 
     uses for debt-for-equity swaps, debt-for-development swaps, 
     or debt-for-nature swaps.
       (e) Availability of Funds.--The authority provided by 
     subsection (a) may be used only with regard to funds 
     appropriated by this Act under the heading ``Debt 
     Restructuring''.


                            Basic Education

       Sec. 567. Of the funds appropriated by title II of this 
     Act, not less than $400,000,000 shall be made available for 
     basic education.


                        reconciliation programs

       Sec. 568. Of the funds appropriated under the heading 
     ``Economic Support Fund'', not less than $12,000,000 should 
     be made available to support reconciliation programs and 
     activities which bring together individuals of different 
     ethnic, religious, and political backgrounds from areas of 
     civil conflict and war.


                      debt restructuring authority

       Sec. 569. Funds appropriated under the heading ``Iraq 
     Relief and Reconstruction Fund'' in title II of the Emergency 
     Supplemental Appropriations Act for Defense and for the 
     Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-
     106) may be made available for the costs, as defined in 
     section 502 of the Congressional Budget Act of 1974, of 
     modifying direct loans and loan guarantees for Iraq, without 
     regard to the sectoral allocations and related provisos under 
     that heading in such Act: Provided, That the authority of 
     this section shall be used subject to prior consultation with 
     the Committees on Appropriations: Provided further, That the 
     obligation of funds pursuant to the authority provided in 
     this section shall be subject to the regular notification 
     procedures of the Committees on Appropriations: Provided 
     further, That amounts made available pursuant to the 
     authority of this section are designated as an emergency 
     requirement pursuant to section 402 of S. Con. Res. 95 (108th 
     Congress), as made applicable to the House of Representatives 
     by H. Res. 649 (108th Congress): Provided further, That 
     amounts made available pursuant to the authority of this 
     section shall not be considered ``assistance'' for the 
     purposes of provisions of law limiting assistance to a 
     country.


                        trade capacity building

       Sec. 570. Of the funds appropriated by this Act, under the 
     headings ``Trade and Development Agency'', ``Development 
     Assistance'', ``Transition Initiatives'', ``Economic Support 
     Fund'', ``International Affairs Technical Assistance'', and 
     ``International Organizations and Programs'', not less than 
     $517,000,000 should be made available for trade capacity 
     building assistance.


 excess defense articles for central and south european countries and 
                        certain other countries

       Sec. 571. Notwithstanding section 516(e) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2321j(e)), during fiscal 
     year 2005, funds available to the Department of Defense may 
     be expended for crating, packing, handling, and 
     transportation of excess defense articles transferred under 
     the authority of section 516 of such Act to Albania, 
     Bulgaria, Croatia, Estonia, Former Yugoslavian Republic of 
     Macedonia, Georgia, India, Kazakhstan, Kyrgyzstan, Latvia, 
     Lithuania, Moldova, Mongolia, Pakistan, Romania, Slovakia, 
     Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.


                                  cuba

       Sec. 572. None of the funds appropriated by this Act under 
     the heading ``International Narcotics Control and Law 
     Enforcement'' may be made available for assistance to the 
     Government of Cuba.

[[Page 15833]]




 office of the inspector general of the coalition provisional authority

       Sec. 573. (a) Establishment of New Office.--(1) The Office 
     of the Inspector General of the Coalition Provisional 
     Authority shall be reconstituted as a separate office within 
     the Department of State and redesignated the Office of the 
     Inspector General for Iraq Reconstruction (hereinafter ``the 
     Office'').
       (2) Any reference in title III of Public Law 108-106 to the 
     ``Office of the Inspector of the Coalition Provisional 
     Authority'' or to the ``Inspector General of the Coalition 
     Provisional Authority'' shall be deemed to be a reference to 
     the Office of the Inspector General for Iraq Reconstruction 
     or the Inspector General for Iraq Reconstruction, 
     respectively.
       (3) Any reference in title III of Public Law 108-106 to 
     ``appropriated funds'' shall be deemed to be a reference to 
     funds appropriated in that Act and in Public Law 108-11 under 
     the heading ``Iraq Relief and Reconstruction Fund''.
       (b) Inspector General of the Office.--The Inspector General 
     of the Coalition Provisional Authority (hereinafter ``the 
     Inspector General'') and Assistant Inspectors General of that 
     office should be reappointed by the Secretary of State to 
     serve in the same capacity in the Office established by 
     subsection (a).
       (c) Purpose and Authorities.--(1) The Inspector General 
     shall--
       (A) conduct independent and objective audits and 
     investigations relating to the programs and operations funded 
     with amounts appropriated for the ``Iraq Relief and 
     Reconstruction Fund'';
       (B) make independent and objective recommendations on 
     policies designed to promote economy, efficiency, and 
     effectiveness in the administration of such programs and 
     operations, and to prevent and detect fraud, waste, and abuse 
     in such programs and operations; and
       (C) provide an independent and objective means of keeping 
     the Secretary of State fully and currently informed about 
     problems and deficiencies relating to the administration of 
     such programs and operations and the necessity for and 
     progress of corrective action.
       (2) The Inspector General shall have the duties, 
     responsibilities, powers, and authorities described in 
     sections 3001 (f), (g), and (h) of Public Law 108-106.
       (d) Relationship to the Secretary of State.--
       (1) The Inspector General shall report directly to and be 
     under the supervision of the Secretary of State.
       (2) Any reference in title III of Public Law 108-106 to the 
     ``Coalition Provisional Authority'' or to the ``head of the 
     Coalition Provisional Authority'' shall be deemed to be a 
     reference to the Department of State or to the Secretary of 
     State, respectively.
       (e) Coordination With Other Inspectors General.--In 
     carrying out the duties, responsibilities, and authorities of 
     the Inspector General, the Inspector General shall coordinate 
     with, and receive the cooperation of, the Inspector General 
     of the Department of State, the Inspector General of the 
     Department of Defense, the Inspector General of the United 
     States Agency for International Development, and any other 
     Inspector General carrying out functions related to the 
     provision of reconstruction assistance for Iraq with funds 
     appropriated for ``Iraq Relief and Reconstruction Fund''.
       (f) Funding.--Funds available pursuant to section 3001(n) 
     of Public Law 108-106 shall be transferred to the Office and 
     used for purposes of this section.
       (g) The Office of Inspector General for Iraq Reconstruction 
     shall terminate on September 30, 2007.


                    oversight of iraq reconstruction

       Sec. 574. (a) Section 2207(a) of the Emergency Supplemental 
     Appropriations Act for Defense and for the Reconstruction of 
     Iraq and Afghanistan, 2004 (Public Law 108-106), is amended 
     by striking ``The Director of the Office of Management and 
     Budget, in consultation with the Administrator of the 
     Coalition Provisional Authority (CPA) and the Committees on 
     Appropriations,'' and inserting ``The Secretary of State''.
       (b) The allocation of any funds appropriated under the 
     heading ``Iraq Relief and Reconstruction Fund'' in chapter 2 
     of title II of Public Law 108-106 for administrative expenses 
     purposes pursuant to the authority contained in the seventh 
     proviso under that heading, shall be subject to the regular 
     notification procedures of the Committees on Appropriations.


                               indonesia

       Sec. 575. Congress notes that the Indonesian Government and 
     Armed Forces have pledged to cooperate with the Federal 
     Bureau of Investigation with respect to its investigation 
     into the August 31, 2002, murders of two American citizens 
     and one Indonesian citizen in Timika, Indonesia. Therefore, 
     funds appropriated under the heading ``International Military 
     Education and Training'' may be made available for Indonesia 
     if the Secretary of State determines and reports to the 
     appropriate congressional committees that the Indonesian 
     Government and Armed Forces are cooperating with the Federal 
     Bureau of Investigation's investigation: Provided, That this 
     restriction shall not apply to expanded international 
     military education and training, which may include English 
     language training.
       This Act may be cited as the ``Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 2005''.

  The CHAIRMAN. No further amendment to the bill may be offered except:
  Pro forma amendments offered at any point in the reading by the 
chairman or ranking minority member of the Committee on Appropriations 
or their designees for the purpose of debate;
  Amendments 5, 6, 7, 8, 12, 14, and 21;
  Amendments 11 and 17, which shall be debatable for 20 minutes;
  Amendment 15, which shall be debatable for 30 minutes;
  Amendments 9, 13, and 18, which shall be debatable for 40 minutes;
  An amendment by Mr. Garrett of New Jersey regarding conference 
attendance;
  An amendment by Ms. Jackson-Lee of Texas regarding agricultural 
development in sub-Saharan Africa;
  An amendment by Mr. Sanders regarding Export-Import Bank loans, which 
shall be debatable for 40 minutes;
  An amendment by Mr. Deal of Georgia regarding extradition, which 
shall be debatable for 20 minutes;
  An amendment by Mr. Weiner regarding Saudi Arabia, which shall be 
debatable for 30 minutes;
  An amendment by Mr. Buyer regarding monitoring of elections, which 
shall be debatable for 20 minutes;
  An amendment by Mr. Otter regarding West Bank/Gaza;
  An amendment by Mr. Menendez regarding Latin American child survival 
and development assistance;
  An amendment by Mr. Schiff regarding Armenian genocide;
  An amendment by Ms. Lee regarding global AIDS, which shall be 
debatable for 30 minutes;
  An amendment by Ms. DeLauro regarding child survival;
  An amendment by Ms. Waters regarding contract fraud; and
  An amendment by Ms. McCollum regarding unexploded ordnance.
  Each such amendment may be offered only by the Member designated in 
the request, or a designee, or the Member who caused it to be printed 
in the Record, or a designee, shall be considered as read, shall not be 
subject to amendment, and shall not be subject to a demand for division 
of the question in the House or in the Committee of the Whole.
  Except as otherwise specified, each amendment shall be debatable for 
10 minutes, equally divided and controlled by the proponent and an 
opponent. An amendment shall be considered to fit the description 
stated in the request if it addresses in whole or in part the object 
described.
  Are there any points of order to the portion of the bill which is 
open?


                             Point of Order

  Mr. GOODLATTE. Mr. Chairman, I make a point of order against section 
565(a)(3) for the reason it violates rule XXI, clause 2, which 
prohibits legislative language in a general appropriation bill.
  The CHAIRMAN. Does any Member wish to be heard on the point of order?
  Mr. KOLBE. Mr. Chairman, I concede the point of order.
  The CHAIRMAN. The gentleman from Arizona concedes the point of order, 
and the point of order is sustained. This language is thereby stricken 
from the bill.
  Are there any amendments to this portion of the bill?


                      Amendment Offered by Ms. Lee

  Ms. LEE. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment offered by Ms. Lee:
       In title II, at the end of the item relating to ``child 
     survival and health programs fund'', insert the following:

       In addition to the amount provided in the preceding 
     paragraph for a United States contribution to the Global Fund 
     to Fight AIDS, Tuberculosis and Malaria, $800,000,000 for 
     such purpose, to remain available until September 30, 2006: 
     Provided, That such amount is designated as an emergency 
     requirement

[[Page 15834]]

      pursuant to section 402 of S. Con. Res. 95 (108th Congress), 
     as made applicable to the House of Representatives by H. Res. 
     649 (108th Congress).

  Mr. KOLBE. Mr. Chairman, I reserve a point of order.
  The CHAIRMAN. A point of order is reserved on the amendment.
  Pursuant to the order of the House of today, the gentlewoman from 
California (Ms. Lee) and a Member opposed each will control 15 minutes.
  The Chair recognizes the gentlewoman from California (Ms. Lee).
  Ms. LEE. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, let me just say that today I rise, having just returned 
yesterday afternoon, from the 15th International AIDS Conference in 
Bangkok, Thailand, as the only Member of this body in attendance. This 
was the third International AIDS Conference which I have had the 
privilege to participate in: several years ago, Durban, South Africa; 
following that Barcelona, Spain; and now Bangkok, Thailand.
  My experiences at these conferences, especially very recently in 
Bangkok, confirmed the vital need for this amendment, which designates 
$800 million in emergency funding for the Global Fund to fight AIDS, 
tuberculosis, and malaria. Together with the $400 million which the 
base bill provides for the fund, my amendment would increase the total 
United States contribution to the fund to $1.2 billion this coming 
fiscal year.
  Based on its projection of need, the fund estimates that it will 
require approximately $3.6 billion in fiscal year 2005. By bringing the 
total United States contribution to the fund to $1.2 billion, this 
amendment would provide one-third of that figure as laid out in the 
Global AIDS legislation. The funding will help treat an additional 2 
million people for tuberculosis and an additional half million people 
for AIDS.
  Having spent this week, well, the last few days, actually, among the 
international leaders on the global pandemic, and also with people 
living with the virus, I can tell my colleagues that the international 
community is quite disappointed, to put it mildly, about the United 
States' failure to deliver on promised funding to date; and this 
amendment would help restore what many see as really the lack of United 
States leadership and credibility on the HIV/AIDS pandemic.
  This point was reinforced by Secretary of Health Tommy Thompson's 
decision to allow a delegation of only approximately 50 people to 
attend the World AIDS conference this year, down by 236 the year before 
in Barcelona. It is shameful, I believe, that this administration has 
prevented many of our best and our brightest scientists at the Centers 
for Disease Control and the National Institutes of Health from gaining 
new insights from their colleagues in the international community and 
from sharing the research they have conducted on this pandemic with 
their colleagues in the global community.
  It is tragic that this administration's unilateralist and ideological 
tendencies have now spread, unfortunately, to the fight on HIV and 
AIDS. It is morally wrong to allow right-wing ideology to trump science 
when it comes to the administration's HIV/AIDS prevention policies. 
Their policies set aside 33 percent of all funding for abstinence only. 
That denies access to lifesaving technology, including condoms. Simply 
put, this is irresponsible, unethical, and inhumane. Emphasis should be 
science based, not ideological.
  It is unethical, I believe, that the antiretroviral treatment 
policies are focused more on protecting patents and big pharmaceutical 
companies than on the urgent need to get fixed-dose combination into 
the hands of those who need them. Emphasis really should be put on 
saving lives.
  And I think it is pretty disingenuous that the administration has 
proposed cutting our support for the Global Fund, given all these 
enormous problems that we have, to a measly contribution of about $200 
million, rather than the $1.2 billion, which is desperately needed.
  I must thank the gentleman from Arizona (Mr. Kolbe) and our ranking 
member, the gentlewoman from New York (Mrs. Lowey), for their 
unwavering commitment to helping to increase this funding and actually 
doubling the funding for this Global Fund twice as much as what the 
initial bill provided for. But, Mr. Chairman, I think we must go 
further in providing the resources.
  We have a battle before us to get this devastating and deadly 
pandemic under control. And why the fund? This fund is the best way to 
get the money out into the hands of the NGOs immediately. It is a 
multilateral approach. For example, $1 billion could leverage up to $9 
billion to $10 billion from the private sector, from additional donor 
countries, and from foundations. We are the wealthiest country in the 
world. We should be leading the charge. This Global Fund is the best 
vehicle to show that type of cooperation to provide for the quick 
release of this money.
  I met with too many people, Mr. Chairman, who are living and dying 
with this disease. For example, I participated in one meeting with 
women leaders. There were maybe 50 to 75 women in the room. Over half 
of them were living with the virus. One woman happened to share a story 
with us, and she indicated that she had recently gotten married. She 
did not know that her husband was HIV infected. Four months later, 
after her marriage, lo and behold she has the virus.
  I could go on and on with stories about orphans and vulnerable 
children; stories about women who cannot negotiate abstention; stories 
about women who are subjected to violence; stories about women and 
children that need help in terms of antiretroviral treatment. The 
quickest way for us to address this pandemic is to get the money out, 
and to get it out quickly.
  The fund is headed by Secretary Tommy Thompson. It is directed by Dr. 
Feachem, based in Geneva, Switzerland. They know what they are doing in 
terms of establishing the criteria, and they know how to get the money 
out quickly. I would say the bureaucracy is not as stringent as it is 
through the bilateral programs. So, quite naturally, the money can get 
to where the people are more quickly and in a way that is more 
effective.
  So I would just ask for consideration of this very modest amendment. 
It is only $800 million more, and it will save millions and millions of 
lives.
  Mr. Chairman, I reserve the balance of my time.

                              {time}  1345

  Mr. KOLBE. Mr. Chairman, I am prepared to make my point of order 
unless the gentlewoman wishes to speak further.
  Ms. LEE. Mr. Chairman, I yield 5 minutes to the gentlewoman from New 
York (Mrs. Lowey), ranking member on the Subcommittee on Foreign 
Operations, Export Financing and Related Programs. I want to 
acknowledge her very stellar work and her commitment to addressing this 
pandemic in a very real way.
  Mrs. LOWEY. Mr. Chairman, I want to thank the gentlewoman from 
California for her important leadership on this issue. I know that she 
recently returned from the HIV/AIDS conference in Bangkok. I know that 
in this very busy place we never have adequate time to really listen 
and learn, but she has truly been a leader, and I hope that we all have 
the opportunity to share her experiences with her. I thank her.
  Mr. Chairman, while the bill before us already contains $2.2 billion 
for HIV/AIDS programs, which is the requested level, it only contains 
$400 million for the Global Fund to Fight AIDS, TB and Malaria. The 
Global Fund has made clear to us that a $400 million U.S. contribution 
for fiscal year 2005 will endanger completion of multiyear grant 
agreements it has already signed and will totally shut down the Fund's 
ability to make new grants. The Fund has appealed to us for a total 
U.S. contribution of $1.2 billion this year, which is its estimate of 
the funds needed to meet anticipated demands for the next round of 
grant awards.
  I want to point out that the committee has not been totally satisfied 
with the management performance of the Fund, and there are a number of 
reforms mandated in the bill to improve its performance. But, despite 
these

[[Page 15835]]

concerns, the demand for increased funds for meeting the needs for HIV 
treatment, prevention, and awareness are vast and growing. One need 
only cite the daunting statistics of the most recent U.N. reports on 
the spread of HIV to understand the need for more funds. Based on this 
alone, I would support the gentlewoman's amendment.
  I do, however, have another compelling reason to support the 
amendment, and that is because I am convinced that the Global Fund is 
doing a better job at scaling up HIV treatment programs than our 
bilateral program currently is. As many of the Members know, the 
administration recently announced that the Food and Drug Administration 
would institute new policies that would dramatically speed up the 
process of approving generic drugs for HIV treatment. Unfortunately, 
this announcement was completely misleading.
  As documented in a recent letter to HHS Secretary Thompson from our 
colleague from California (Mr. Waxman), ranking member on the House 
Committee on Government Reform, the administration's announcement in 
May that the FDA would be able to review these drugs in ``2 to 6 
weeks'' raised the expectation of their imminent purchase and 
distribution. After close review, however, of FDA plans, it becomes 
clear that the expedited review starts only after companies have 
submitted a complete application to FDA. In order to have a complete 
application, these companies may have to repeat clinical studies, 
undergo a raw materials review, and submit to detailed inspections. The 
bottom line is that this presubmission process could add months, if not 
years, to the approval process.
  The Bush administration has made treatment of those living with HIV 
its highest priority, stating that 200,000 people will be in treatment 
within 1 year and 2 million by 2007. As the cost for generic ``one pill 
combinations'' continues to decline to less than $150 per year, the 
United States is still purchasing brand-name drugs at four to five 
times that price. Without a viable regime in place to certify safe and 
effective generic drugs to treat HIV, our ability to meet the goals set 
out by the President will diminish. WHO has standards in place and in 
use today, but they are not currently recognized by the United States.
  I believe that either the administration should implement a realistic 
plan for rapid approval of safe and effective combination therapies by 
expediting the FDA approval process, or we should participate in the 
WHO approval process.
  I do not believe Congress should have to get involved in this issue. 
It is best left to medical experts to determine what is safe and 
effective in treating HIV. However, I also believe that the President 
should not mislead Congress and the American people. We should not 
continue indefinitely to purchase expensive brand-name drugs with no 
clear plan in place by the FDA to expedite its review of cheaper 
generics. Unfortunately, that is where we find ourselves today.
  I intend, along with Chairman Kolbe, to follow up with Global AIDS 
Coordinator Tobias and Secretary Thompson. In the meantime, providing 
more funds to the Global Fund will speed progress toward reaching the 
treatment and prevention goals we all share.
  I urge support of this amendment.
  Ms. LEE. Mr. Chairman, I yield the balance of my time to the 
gentleman from Washington (Mr. McDermott) who has been sounding the 
alarm about this pandemic for many, many years. I thank him for his 
leadership.
  The CHAIRMAN. The gentleman from Washington is recognized for 3 
minutes.
  Mr. McDERMOTT. Mr. Chairman, I rise in support of the Lee amendment, 
and I want to talk about what this issue really means. The issue of 
whether or not we give the money for AIDS to the Global Fund or to the 
President's Millennium Account is a big decision. The Millennium 
Account is limited to 15 countries. The Global Fund deals the world 
over, including China, India and Russia, where the rates are going up 
at the fastest rates in the world.
  So the question, first of all, is, do we want to reach the whole 
world or do we not? The President actually, unfortunately, I think, 
says good things but then in his allocations moves backward. He says he 
wants to reach the whole world but reduces the amount we are giving to 
the Global Fund.
  Mr. Chairman, I include for printing in the Congressional Record two 
articles, one on the 14th of July and one on the 15th of July, because 
these issues talk about a second problem. It is really related to this 
country's policies of using only brand-name drugs and making it 
difficult to use generics. The first thing is, they say, ``Well, 
they're not safe.'' One of these articles is about the Doctors Without 
Borders experiments. They have dealt with 12,000 patients worldwide. 
The multiple drug dose generic works. There is no question about it. So 
all this business about running all the drugs through the FDA to see if 
they work is simply a stall. There is no question about what they are 
doing.
  Why is the stall there? If one company owns one drug and another 
company owns another drug, you can put them together in a pill and give 
the patient one pill, and it is a lot easier to monitor when a patient 
is taking one pill that has two or three components in it. But the 
problem of the patents get in the way of Pfizer and Merck getting 
together, or Ayerst or whatever company it is, they cannot work out how 
they can put their two drugs together in one. Who gets the money? Or 
what is the price?
  The generics that the Indians and the Brazilians are making are much 
less expensive. We could get much more bang for our buck if we would 
use generics, because we would not only be getting less costly drugs 
but we would be able to get it down to single pills. If you care about 
this, you want to give the money to the Global Fund because they can 
use generics. They do not have to run it through the complicated 
process of the United States.

                [From the New York Times, July 15, 2004]

       Fixed-Dose Mixtures of Generic AIDS Drugs Prove Effective

                        (By Lawrence K. Altman)

       Bangkok, July 14.--The first large-scale study of AIDS 
     patients receiving fixed-dose combinations of generic 
     antiretroviral drugs in poor countries documented their 
     effectiveness, scientists reported at the 15th International 
     AIDS Conference here on Wednesday.
       The combinations consist of three antiretroviral drugs 
     formulated into one pill that is taken twice a day. The aim 
     is to simplify therapy because experience has shown that the 
     fewer the pills a patient needs to take, the better the 
     compliance.
       Doctors Without Borders, the group that carried out the 
     study in 21 countries, bought the pills from two 
     manufacturers in India, Cipla and Ranbaxy Laboratories Ltd.
       Fixed-dose generic drug combinations have been 
     controversial. Critics contend that they may be less 
     effective than patented versions and not as safe.
       This study expands on a much smaller study with similar 
     results published in the Lancet early this month.
       The findings from Doctors Without Borders should assure 
     patients, donors, health workers, governments and others, 
     said Dr. Alexandra Calmy, an AIDS adviser to Doctors Without 
     Borders in Geneva.
       When Doctors Without Borders began prescribing the fixed-
     dose combinations in 2002, ``we were convinced they would 
     work or we would not have done it,'' said Dr. Calmy, who 
     specializes in infectious diseases. ``It was common sense.''
       But to make certain, her group undertook the study reported 
     Wednesday.
       ``We found a very robust outcome, and the findings are 
     important for the Global Fund and other groups that are 
     recommending'' use of generic fixed dose combinations of 
     antiretroviral drugs, Dr. Calmy said in an interview.
       The combination that Doctors Without Borders uses for 
     first-line therapy is the same one recommended by the World 
     Health Organization, drugs known as stavudine, lamivudine, 
     3TC and nevirapine.
       Of the 12,058 adults that Doctors Without Borders has 
     treated with antiretroviral drugs in 21 countries in Africa, 
     Central America and Asia since 2002, 6,861 received fixed-
     dose combinations. Since March, 80 percent of the group's new 
     AIDS patients have received fixed-dose combinations.
       Among the fixed-dose combination recipients, the 
     probability of survival after one year was calculated as 82.4 
     percent, Dr. Calmy reported. About 60 percent of the deaths 
     occurred in the first three months of

[[Page 15836]]

     therapy. The deaths occurred largely among patients who were 
     so ill that they began the antiretroviral therapy too late to 
     protect them from the infections that often kill patients as 
     a complication of AIDS.
       Among the 6,861 fixed-dose combination recipients, there 
     was a significant increase in the number of immune cells, 
     known as CD-4 cells, that are destroyed by H.I.V., the virus 
     that causes AIDS. The CD-4 count rose by an average of 137 
     cells in a year, in about half the patients.
       Because of logistical difficulties in treating patients in 
     slums and rural areas in countries like Malawi with poor 
     roads and transportation, Doctors Without Borders does not 
     routinely monitor each patient with the tests that measure 
     the amount of virus in the blood. Doctors in developed 
     countries routinely use such tests, known as viral loads, to 
     determine the effectiveness of therapy.
       However, a viral load test in a subset of patients showed 
     that fixed-dose combinations failed in 12 percent of the 477 
     tested, which is comparable to findings in developed 
     countries, Dr. Calmy said.
       Among the 6,861 patients who had been on treatment for one 
     year or longer, 51 had to switch to other drugs because they 
     had suffered side effects to one or more of the drugs in the 
     fixed-dose combination. For those who had taken a new 
     regimen, the number of pills was 13 or more a day.
       Nevirapine was the most common cause of the unwanted 
     effects. Of the 51 who suffered reactions such as rashes and 
     liver damage, 23 changed to other regimens. An additional 
     nine patients switched to other drugs because they suffered 
     nerve damage and disfiguring accumulations of fat on the 
     neck, back and abdomen.
       The frequency of adverse reactions was comparable to that 
     observed among recipients of patented drugs in developed 
     countries, Dr. Calmy said.
       In a separate part of the study conducted in Malawi, Dr. 
     Arno Jeannin's Doctors Without Borders team randomly tested 
     the amount of H.I.V. in the blood of 477 patients who had 
     received fixed-dose combinations there for six months or 
     longer. Of these, H.I.V. could not be detected in 85 percent, 
     showing the overall effectiveness of the fixed-dose 
     combinations.
        The annual cost of the fixed-dose combinations was $389 or 
     less.
                                  ____


                [From the New York Times, July 14, 2004]

            Early Tests for U.S. in Its Global Fight on AIDS

                          (By Deborah Sontag)

       The Bush administration did not consult with Mozambique 
     last year before designating the country as a beneficiary of 
     its emergency AIDS plan. Mozambique was simply informed that 
     it would be one of 12 African nations, and 15 countries 
     overall, awarded substantial financial assistance.
       The pledge of big money was certainly welcome, said 
     Francisco, Songane, the Mozambican health minister; AIDS has 
     lowered life expectancy in Mozambique to 38. But the 
     approach, perceived by many Mozambicans as arrogant and 
     neocolonial, was not.
       Mozambique, in southeastern Africa, had spent considerable 
     time developing a national strategy to combat its high rate 
     of H.I.V. infection. Other international donors had agreed to 
     pool their contributions and let the Mozambicans control 
     their own health programs. Thus, Mozambican officials 
     recoiled when the Americans said earlier this year, ``We want 
     to move quickly, and we know that your government doesn't 
     have the capacity,'' Mr. Songane said.
       The Bush administration wanted the bulk of its funding to 
     go toward more costly brand-name antiretroviral drugs for 
     treatment programs run by nongovernmental organizations. But 
     Mozambique had already decided to treat its people with 3-in-
     1 generic pills, which were cheaper and simpler to take. 
     Also, Mozambique did not want an American program dependent 
     on costly foreign consultants, N.G.O.'s and the largesse of 
     foreign political leaders, that would run parallel to its 
     own.
       There were confrontational meetings in Washington and in 
     Maputo, the capital of Mozambique. And in the end, to the 
     surprise of many, the Bush administration agreed to give 
     Mozambique the kind of help it really wanted, by 
     strengthening its laboratories, blood-transfusion centers and 
     the Health Ministry itself--albeit indirectly, through a 
     grant to Columbia University.
       ``What I witnessed in Mozambique was a disaster averted,'' 
     said Dr. Steven Gloyd, an international health specialist at 
     the University of Washington who works with Mozambique. ``So, 
     for countries like Mozambique, this may turn out to be a 
     positive intervention, even though it could be a lot more.''
       Seventeen months after President Bush announced his five-
     year, $15 billion emergency AIDS initiative, the program is 
     belatedly getting under way, and surprising some critics of 
     what is seen as its go-it-alone approach. In some cases, the 
     plan is proving to be more adaptive and collaborative than 
     had been expected, especially when countries are strong 
     enough to stand their ground.
       The plan is already directing considerable money into 
     health clinics, laboratories, testing centers and hospices, 
     AIDS treatment, prevention of H.I.V. and care of orphans.
       For every Mozambique, however, where Washington has altered 
     its plans to meet local objections, there is a Zambia, where 
     local officials are in the dark. The Zambian health minister, 
     Brian Chituwo, said his government did not have a formal 
     meeting on the program with the American ambassador until 
     May, 15 months after Zambia's role was announced. Further, he 
     said, on everything but blood-transfusion services, which 
     were negotiated, the Americans' plans for Zambia have ``all 
     come from Washington.'' The American plan, one senior United 
     Nations official said, ``has created turbulence wherever it 
     has gone.'' But another, Michel Sidibe, praised the Americans 
     for making a ``major shift'' in May by signing ``a 
     declaration of harmonization'' in which they pledged to 
     coordinate their anti-AIDS activities with other donors.
       The president's program, a centerpiece of his compassionate 
     conservativism, has been a prime topic of conversation at the 
     International AIDS Conference in Bangkok--and a magnet for 
     some protests. On Tuesday, President Jacques Chirac of France 
     accused the United States of blackmailing developing 
     countries into bartering their right to produce generic 
     H.I.V. drugs for free-trade agreements. American officials 
     dismissed the charge as groundless.
       After decades when the pandemic in Africa spread unchecked, 
     billions in anti-AIDS money is suddenly pledged to assist the 
     continent, and questions about how to channel that outpouring 
     have taken center stage. The administration's AIDS effort is 
     under sharp scrutiny because it is so big, so unabashedly 
     Washington--dominated and tinged by the administration's 
     political ideology.
       Many critics see big pharmaceutical companies behind the 
     Bush administration's preference for costlier brand-name 
     drugs, conservative Christians behind its heavy promotion of 
     abstinence, and hard-line unilateralists behind its decision 
     to bypass the Global Fund to Fight AIDS, Tuberculosis and 
     Malaria in creating its own plan.
       Randall L. Tobias, a former chief executive of the Eli 
     Lilly & Company drug group and a Republican donor who became 
     the administration's global AIDS coordinator last October, 
     lamented the politicized environment and suggested that 
     critics refocus their antagonism. ``The enemy here ought to 
     be apathy, denial and stigma,'' he said. ``I don't know why 
     people spend so much time fighting each other.''
       Still, the administration's refusal thus far to use its 
     money to buy generics is complicating the roll-out of its own 
     emergency plan. Like the Mozambicans, other African officials 
     have resisted the distribution of brand name drugs as first-
     line therapy. As a result, in a half a dozen or more of the 
     focus countries, the governments themselves or other donors 
     are picking up most of the cost of life-saving drugs.
       The goal set by President Bush in January 2003 was to treat 
     two million people in five years. Under the plan, an 
     estimated 6,000 to 10,000 people have started on 
     antiretroviral drugs so far, according to a Congressional 
     appropriations expert. The global AIDS office could not give 
     a figure. In the slums of Lusaka, Zambia, American money was 
     put to use quickly this spring renovating four clinics and 
     training workers to distribute drugs. American doctors worked 
     in concert with a local health official to salvage a 
     stockpile of government AIDS drugs that were about to expire.
       In late April, they started handing out drugs that ward off 
     death for some very ill people, and within two months, they 
     had 700 patients on antiretroviral therapy.
       ``There was a patient whose family had sadly sent her off 
     to a hospice'' to die, said Jeffrey Stringer, a doctor from 
     the University of Alabama who is running the program. 
     Recently, a health worker escorted the patient back home.'' 
     And there was a woman who couldn't crawl who has now gained 
     weight and is walking around.''
       Dr. Stringer, who is working in collaboration with the 
     Elizabeth Glaser Pediatric AIDS Foundation in Los Angeles, 
     noted that he had not voted for President Bush. But he had to 
     admit, he said, ``They ponied up.''
       Other American experts are more skeptical.
       ``Sure, off the bat, you can put 5,000'' on antiretroviral 
     drugs, said Josh Ruxin, an assistant clinical professor of 
     public health at Columbia and a consultant to Rwanda and 
     Nigeria. ``They're easy to ID, they're terribly sick, they 
     need drugs now, they live in cities, they have cell phones. 
     So that's the low-hanging fruit. But then what happens? You 
     quickly reach a point where you can't treat more people 
     unless you develop the national health systems, and that is 
     not something I've heard the American government commit to in 
     a big way.''


                      For Bush, a `Work of Mercy'

        Mr. Bush presented the President's Emergency Fund for AIDS 
     Relief in his 2003 State of the Union address, which also 
     began the countdown to the war in Iraq. He called it a ``work 
     of mercy,'' offering the soft power of American 
     humanitarianism to counterbalance the imminent use of 
     military force.
       ``As our nation moves troops and builds alliances to make 
     our world safer, we must

[[Page 15837]]

     also remember our calling as a blessed country to make this 
     world better,'' he said.
       Mr. Bush declared a five-year goal of getting 2 million 
     into treatment, preventing 7 million infections and providing 
     care to 10 million infected people and AIDS orphans in what 
     he called the most afflicted countries in Africa and the 
     Caribbean.
       The 14 focus countries named were: Botswana, Ethiopia, 
     Guyana, Haiti, Ivory Coast, Kenya, Mozambique, Namibia, 
     Nigeria, Rwanda, South Africa, Tanzania, Uganda and Zambia. 
     Vietnam was added last month at Congress's insistence that 
     there be another nation from a different region.
       The sheer ambition of the proposal stunned advocates for 
     huge increases in global AIDS funding into applause. Jeffrey 
     Sachs, the Columbia University economist, called the 
     president's commitment ``historic'' and a ``breakthrough.''
       But at a time when American power was being imposed and 
     questioned in the military arena, the AIDS plan struck some 
     as another kind of unilateralism. They feared that Mr. Bush's 
     program would undermine the multilateral Global Fund, which 
     assists eight times as many countries, including India, China 
     and Russia, whose infection rates are rising rapidly. And 
     these experts thought it was retrogressive in its reliance on 
     American universities, faith-based organizations and 
     nongovernmental organizations, whose ability to pay higher 
     salaries could drain workers from local public health systems 
     that should be reinforced instead.
       Dr. Paul Zeitz, executive director of the Global AIDS 
     Alliance, said advocates were baffled. ``We thought the 
     international community had come to a consensus that there 
     needed to be a new way of doing business where we all worked 
     together and helped strengthen national capacities,'' he 
     said.
       When he took office, Mr. Bush had inherited a kind of 
     global momentum toward an international AIDS fund, and a 
     drumbeat for action was building at home, too. Senators Bill 
     Frist and John Kerry formed a bipartisan team to fight for 
     greater American involvement. The Rev. Franklin Graham, who 
     delivered the invocation at Mr. Bush's inauguration, was 
     catalyzing the evangelical community to get over its aversion 
     to the disease and confront it as part of its mission.
       The push for an international fund was led by, among 
     others, Mr. Sachs and Secretary General Kofi Annan at the 
     United Nations. But the Bush administration was a major force 
     in shaping the Global Fund as an independent, multilateral, 
     public-private partnership, and not a World Bank or United 
     Nations program.
       The Global Fund's approach was conceived as a reaction 
     against years of inefficient and often ineffective foreign 
     development programs. The idea was to funnel aid from 
     multiple donors to the affected countries and let them run 
     their own health programs, thereby eliminating waste, 
     duplication and burdensome demands on patients.
       Yet it took a couple of years for the Global Fund, which is 
     based in Geneva, to persuade countries to develop plans that 
     could be financed, and to get the money flowing from 
     government coffers into health care. The Bush administration 
     was impatient, and concerned that other countries were not 
     contributing their share. The Global Fund did not seem the 
     ideal repository for the billions it wanted to pour into the 
     pandemic.
       After the 2003 State of the Union address, Richard Feacham, 
     executive director of the Global Fund, said: ``There was to 
     some degree a mood in Washington of dichotomy'' between the 
     president's plan and the Global Fund. ``People felt the need 
     to make a choice and see a rivalry. We worked extremely hard 
     to convey the message that the world needs both. You can't 
     stop the pandemic in 15 countries. The Global Fund is in 130. 
     We also focus on TB and malaria, the greatest killer of 
     African children.''
       Right after the State of the Union address, Tommy G. 
     Thompson, the secretary of health and human services, became 
     the new chairman of the Global Fund, which made some European 
     donors fear an American takeover. But Mr. Bush has instead 
     moved to pull back. In his budget request for 2004, he sought 
     to reduce America's contribution. And in his 2005 request, he 
     is asking for a 60 percent cut in the contribution.
       Congress, however, refused the Global Fund's allocation for 
     2004, instead nearly tripling the administration's request. 
     It also increased the global financing to $2.4 billion, of 
     which $1.9 billion goes for H.I.V./AIDS (and the rest for 
     tuberculosis and malaria). Several members of Congress 
     complained that $2.4 billion was not a lot of money for a 
     global health emergency, especially compared with more than 
     $100 billion spent on military operations in Iraq.
       The global AIDS coordinator's office, in fact, had only 
     $488 million in new money this year. It also used old money 
     in new ways, though, By the end of the 2004 budget year, it 
     will have committed--but not yet spent--$865 million, one-
     fifth of which is committed to faith-based groups. Some $253 
     million will go toward treatment programs, but the drug issue 
     has made spending that money more difficult than expected.


                      Generic Drugs vs. Brand Names

       ``We are using generics here because they are cheaper,'' 
     Mr. Songane of Mozambique said. ``And apart from being 
     cheaper, they are prepared in a manner which is simple for 
     our patients, and even simpler for our staff.''
       Like Mozambique, many countries prefer generics because 
     they can be used to treat more people and because, given 
     patent problems, only generics now come in fixed-dose 
     combinations, which combine three drugs in one tablet, 
     improving adherence to pill-taking schedules.
       Foreign-made 3-in-1 pills have been approved by the World 
     Health Organization and purchased in bulk by the Global Fund 
     and many developing countries. But the Bush administration is 
     insisting on brand-name antiretroviral drugs because the 
     generics have not been reviewed by the Food and Drug 
     Administration. The F.D.A., Mr. Tobias said, is the most 
     stringent regulatory authority in the world and should make 
     the determination whether drugs for an American overseas 
     program are safe and effective, and of the highest quality.
       Mr. Tobias noted that the World Health Organization 
     recently withdrew two generic antiretroviral drugs made by 
     Cipla of India from its list of approved treatments. (Its 
     fixed dose tablets remain on the list.) This, he suggested, 
     cast doubt on the W.H.O.'s screening procedures.
       Cipla has said that the problem lay not with the product 
     but with a contract research laboratory that it no longer 
     uses. Tests are being repeated in different labs, and the 
     company says it is confident that the drugs will be back on 
     the approved list soon.
       Further, earlier this month, researchers who studied 
     Cipla's Triomune reported in the Lancet medical journal, that 
     fixed-dose generic AIDS drugs work as well as brand-name 
     drugs, according to the first clinical trial. Triomune costs 
     as little as $140 a year per patient, compared with about 
     $562 for the brand-name versions in the 3-in-1 pill.
       In early spring, the Americans discovered that resistance 
     to their rule on brand-name drugs was coming even from the 
     American organizations who were getting multicountry, 
     multiyear grants to set up treatment programs. The American 
     organizations, which are expected to receive more than $600 
     million over five years, are the Harvard School of Public 
     Health; the Glaser foundation; the Joseph L. Mailman School 
     of Public Health at Columbia University; and a faith-based 
     consortium led by Catholic Relief Services.
       Some expressed their preferences for generics outright. 
     Barry R. Bloom, the dean of public health at Harvard, said, 
     ``The Indian pills are terrific--you take just two a day.'' 
     Allan Rosenfield, dean at Mailman, issued a statement urging 
     the Bush administration to allow American money to purchase 
     generics.
       At an American-initiated conference in Botswana in late 
     March, Jacqueline Patterson, who manages the program for a 
     Protestant medical association that is part of the Catholic 
     Relief Services' consortium, declared that most mission 
     hospitals and clinics in Africa and the Caribbean were 
     already using fixed-dose combinations and wanted to continue. 
     She read comments from the field that voiced a collective 
     anxiety about the imposition of brand-name drugs, resulting 
     in fewer people in treatment and more skipping doses and 
     sharing pills.
       With countries like Mozambique, Namibia and Rwanda holding 
     fast to their positions that generics would be their first-
     line drugs, American officials realized that their assistance 
     in those places would be limited. They would be able to 
     provide medicine for children, for whom only brand-name drugs 
     are available, and for those adults, say, who had developed a 
     resistance to the generics. But essentially, they would be 
     providing technical support for the drug treatment program 
     rather than the drugs themselves.
       In May, the Bush administration announced that it would set 
     up a new expedited review for generic antiretrovirals, 
     including the 3-in-1 pills. If approved, the drugs would be 
     eligible for use in the AIDS plan, it said.
       An executive at an American foundation engaged in global 
     AIDS work said it remained to be seen whether ``the F.D.A. 
     process is real, a stalling tactic, or ultimately a tool for 
     the R-and-D companies.'' But, he said, his foundation was 
     encouraging foreign drug companies to submit dossiers to the 
     agency.
       So far, no foreign drug companies have applied for the 
     expedited review. William F. Haddad, an American 
     representative for Cipla, said the Indian company was left 
     with unanswered questions about the accelerated approval 
     process. ``When they come back to us with answers, Cipla will 
     make up its mind about whether to apply,'' he said. ``But the 
     bottom line is that this is a political act, not a scientific 
     one. Why is the World Health Organization's stamp of approval 
     O.K. for the World Bank and the Global Fund and not for the 
     U.S.?''


                         Abstinence vs. Condoms

       With its focus on treatment, Mr. Bush's plan is profoundly 
     changing a two-decades-long emphasis on H.I.V. prevention as 
     the American strategy abroad. The prevention efforts are 
     continuing but, on Congress's mandate, they are being given a 
     new emphasis on abstinence, with $86 million devoted this 
     year to promoting abstinence.

[[Page 15838]]

       World Relief International, the humanitarian arm of the 
     National Association of Evangelicals, is to receive $9.6 
     million over five years to promote abstinence. Deborah 
     Dortzbach, international director for its H.I.V./AIDS 
     programs, said World Relief would use a network of churches, 
     schools and ``Choose Life'' clubs in Haiti, Kenya, Rwanda and 
     Mozambique.
       ``We teach abstinence as an opportunity,'' she said, ``as a 
     way to delay the gift of sexuality and its pleasures until 
     they can experience it with responsibility.''
       A guide for World Relief instructors includes a detailed 
     chapter on condom use and how to negotiate the use of a 
     condom with a reluctant partner. Ms. Dortzbach acknowledged, 
     however, that many pastors were reluctant to discuss condoms 
     at all with youths and needed some persuasion to mention them 
     during marriage counseling.
       Any discussion of condoms, Ms. Dortzbach said, emphasized 
     that condoms were not perfectly safe and that ``the only 
     guarantee for protection is abstinence,'' which is the Bush 
     administration's message.
       That message is predicated on the success of the A B C 
     model in Uganda, which stands for Abstain, Be Faithful, 
     Condomize. Critics say, however, that the Americans are 
     paying too little attention to ``C.''
       The American government is probably buying more condoms now 
     than at any time in its history, Mr. Tobias said, but 
     Congress did not want a broad distribution of condoms to be 
     the primary prevention tool, as it has been historically. In 
     Africa, too, some experts question the efficacy of condoms, 
     given that infection rates continue to climb as many men 
     refuse to use them.
       The Bush administration's strategy does suggest condoms for 
     ``high risk'' individuals like prostitutes, soldiers, drug 
     users and ``serodiscordant'' couples. But critics say 
     everybody in a sub-Saharan country with a sky-high infection 
     rate is high risk.
       ``In their approach, they ignore the basic reality that a 
     large share of unmarried adolescents are already sexually 
     active and so at high risk,'' said Jodi L. Jacobson, 
     executive director of the Center for Health and Gender Equity 
     in Maryland. ``They also ignore the fact that marriage 
     doesn't protect married teens and women from H.I.V., and that 
     sexual violence and coercion are facts of life.''


                             The Longer Term

       In Maputo, health officials said that they were struck by 
     the Americans' obsession with numeric goals.
       ``To see an increase in numbers of people on 
     antiretrovirals, that was their only concern,'' said Mr. 
     Songane, the health minister. ``But this is a complex 
     disease. We can not judge the success of our fight just by 
     the numbers of people on treatment.''
       The Mozambicans wanted to move gradually and to strengthen 
     their health sector at the same time. They did not want to 
     neglect other health issues, like malaria, childhood diseases 
     and maternal health. They did not want to use nongovernmental 
     organizations where the Americans would pay the salaries, buy 
     the drugs and purchase the vehicles that would travel to the 
     villages to distribute the drugs.
       ``In one year, two years' time, who is going to follow 
     those people?'' he asked. ``When the N.G.O. is gone, who is 
     going to take over?''
       Dr. Paul Farmer, an American renowned for his treatment 
     programs in rural Haiti, said international projects 
     intending to help poor countries should pay heed, as 
     Mozambique does, to the need to integrate AIDS treatment with 
     overall health care.
       ``When you're in a clinic in rural Haiti and someone comes 
     in with a broken arm or in obstructed labor, you can't say, 
     `Sorry, we only do AIDS prevention and care,''' said Dr. 
     Farmer, a Harvard professor. ``The massive loss of life due 
     to H.I.V. disease is only one symptom of a very sick world in 
     which hundreds of millions are going without any modern 
     medical care at all. Addressing AIDS properly offers a chance 
     to set some of this right.''

  Mr. KOLBE. Mr. Chairman, I rise in opposition to the amendment; and I 
yield myself such time as I may consume.
  Mr. Chairman, I count myself among the Fund's strongest supporters. 
Last year, I worked with my colleagues on both sides of the aisle to 
increase the U.S. contributions to the Fund from the President's 
request of $200 million to $550 million.
  Not including funds in the bill under discussion, the United States 
has made available nearly $1.2 billion of the Fund's $3.4 billion in 
pledges and contributions through 2004.
  However, this is a global disease, and we must have the commitment of 
many partners to fight it. That's why Congress requires that other 
donors match the U.S. funds, at a 2:1 ratio. Unfortunately, other 
countries have not contributed enough this year for the entire U.S. 
contribution to be released--we have nearly $190 million waiting for 
other donors to step up to the plate. The Committee took this fact into 
account in making its recommendation.
  I must note that it is more than unfortunate that some in the AIDS 
community continue to scold the United States for not giving more to 
the Global Fund. Their time would be better spent encouraging other 
donors to contribute and to improving the Fund's operations.
  Of the more than $3 billion that the Fund has approved in grants, 
only $428 million has even made it out of the Global Fund's account. 
That means nearly $2.6 billion in committed funding is simply sitting 
in the Global Fund's account.
  The Committee has recommended provisions in this year's bill to help 
the Fund improve its disbursements. I can only ask that others begin to 
take a hard look at the Fund's operations, rather than blindly call for 
more money, more money. We need the Fund around for the long-term, and 
improving its operations is the only way to maintain public confidence 
in it.
  If other countries step up to the plate, and provide sufficient 
contributions to allow more from the U.S. than Congress appropriates, 
and if the Fund improves its operations, then we will take these 
developments into account for future years.
  Ms. WATERS. Mr. Chairman, I rise to support the Lee amendment to add 
$800 million to the Global Fund to Fight AIDS, Tuberculosis and 
Malaria.
  The HIV/AIDS epidemic is having a devastating impact on Africa and 
the world. Over 60 million people have been infected by the AIDS virus 
since the beginning of the epidemic, and 42 million people are 
currently living with this dreadful disease. Approximately three 
million people died of AIDS last year, and another five million people 
became infected with HIV.
  The HIV/AIDS epidemic has already curtailed the economic development 
of many countries in Africa. AIDS is responsible for shortages of 
skilled workers and teachers, high rates of absenteeism and labor 
turnover, and the deaths of workers and managers throughout business 
and government. Teachers and other skilled workers can be very 
difficult to replace. Tragically, in some parts of Africa, employers 
even find it necessary to hire two workers for every job opening, 
because they expect one of them to die of AIDS.
  On May 1, 2003, the House passed H.R. 1298, ``the Global AIDS Bill,'' 
which authorizes appropriations of $3 billion per year over five years 
for global HIV/AIDS treatment and prevention efforts. This bill, which 
is critically needed and long overdue, was signed into law by the 
President on May 27 of last year. However, it has never been fully 
funded.
  According to UNAIDS, HIV/AIDS has spread rapidly in Eastern Europe, 
and gained a strong foothold in India and China over the past year. 
Fortunately, there has been progress, as infection rates actually fell 
last year in a few hard-hit areas of Africa. Without adequate funding, 
however, our progress will be short-lived.
  I urge my colleagues to support the Lee amendment.


                             Point of Order

  Mr. KOLBE. Mr. Chairman, I make a point of order against the 
amendment because it proposes to change existing law and constitutes 
legislation on an appropriation bill and, therefore, violates clause 2 
of rule XXI.
  The rule states, in pertinent part, ``an amendment to a general 
appropriation bill shall not be in order if changing existing law.'' 
The amendment includes an emergency designation under section 251 of 
the Balanced Budget and Emergency Deficit Control Act of 1985 and as 
such constitutes legislation in violation of clause 2 of rule XXI.
  I ask for a ruling from the Chair.
  The CHAIRMAN. Does any other Member wish to be heard on the point of 
order? If not, the Chair is prepared to rule.
  The Chair finds that this amendment includes an emergency 
designation. The amendment, therefore, constitutes legislation in 
violation of clause 2 of rule XXI. The point of order is sustained and 
the amendment is not in order.


                 Amendment No. 14 Offered by Mr. Lantos

  Mr. LANTOS. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 14 offered by Mr. Lantos:
       Page 18, line 22, after ``$2,450,000,000'', insert the 
     following: ``(increased by $325,000,000)''.

       Page 19, line 3, after ``$535,000,000'', insert the 
     following: ``(increased by $325,000,000)''.

       Page 19, line 8, after ``fiscal years:'', insert the 
     following: ``Provided further, That of the amounts that are 
     made available under the previous proviso for Egypt, 
     $325,000,000 shall

[[Page 15839]]

     not be obligated until after September 1, 2005:''.

       Page 42, line 13, after ``$4,777,500,000'', insert the 
     following: ``(reduced by $325,000,000)''.

       Page 42, line 16, after ``$1,300,000,000'', insert the 
     following: ``(reduced by $325,000,000)''.

                             Point of Order

  Mr. YOUNG of Florida. Mr. Chairman, I rise to make a point of order 
against the amendment.
  The CHAIRMAN. Does the gentleman from Florida wish to make a point of 
order?
  Mr. YOUNG of Florida. I do.
  Mr. Chairman, I make a point of order against the amendment because 
it proposes to change existing law and constitutes legislation in an 
appropriation bill and, therefore, violates clause 2 of rule XXI.
  The rule states in pertinent part, ``an amendment to a general 
appropriation bill shall not be in order if changing existing law.'' 
The amendment includes a legislative prohibition on the obligation of 
funds.
  I ask for a ruling from the Chair.
  The CHAIRMAN. Does any other Member wish to be heard on the point of 
order?
  Mr. LANTOS. Mr. Chairman, I request to be heard on the point of 
order.
  The CHAIRMAN. The gentleman from California is recognized to be heard 
on the point of order.
  Mr. LANTOS. Mr. Chairman, my amendment is sponsored by a 
distinguished list of Republicans and Democrats. It does not change by 
one penny the amount of aid that Egypt will receive. It merely shifts 
the ratio from military to economic aid, which is clearly in the 
interest of the Egyptian people since Egypt faces no military threat 
but its economic conditions are dire. The amendment does not alter the 
appropriations for Egypt.
  The CHAIRMAN. Does any other Member wish to be heard on the point of 
order? If not, the Chair is prepared to rule.
  The Chair finds that this amendment includes language imparting 
direction regarding the obligation of funds. The amendment therefore 
constitutes legislation in violation of clause 2 of rule XXI.
  The point of order is sustained and the amendment is not in order.


                 Amendment No. 13 Offered by Mr. Lantos

  Mr. LANTOS. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 13 offered by Mr. Lantos:
       Page 18, line 22, after ``$2,450,000,000'', insert the 
     following: ``(increased by $570,000,000)''.
       Page 19, line 3, after ``$535,000,000'', insert the 
     following: ``(increased by $570,000,000)''.
       Page 42, line 13, after ``$4,777,500,000'', insert the 
     following: ``(reduced by $570,000,000)''.
       Page 42, line 16, after ``$1,300,000,000'', insert the 
     following: ``(reduced by $570,000,000)''.

  The CHAIRMAN. Pursuant to the order of the House of today, the 
gentleman from California (Mr. Lantos) and the gentleman from Arizona 
(Mr. Kolbe) each will control 20 minutes.
  The Chair recognizes the gentleman from California (Mr. Lantos).
  Mr. LANTOS. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, my amendment is a very simple amendment. It shifts $325 
million from Egypt's economic aid that we provide and increases Egypt's 
economic aid that we provide by that exact amount.
  The logic of the amendment is clear. Egypt is facing no military 
threat. Few states on the face of this planet inhabit a strategic 
environment more secure than Egypt. Egypt shares land borders with 
three states, and it is at peace with all of them. Recently, Egypt's 
security environment has improved dramatically as Libya divested itself 
of its weapons of mass destruction.
  Despite this enviable security environment, Egypt has embarked on a 
major military buildup of a sort one would expect from a nation under 
dire and imminent threat. This buildup is not only puzzling but, in my 
view, it is a policy choice with seriously damaging implications for 
Egyptian society. As a matter of fact, Mr. Chairman, the civilian 
leaders of Egyptian society are welcoming my amendment because this 
would enable them to deal with the dire economic conditions of that 
country in the field of education, health and other areas.
  Per capita income in Egypt is less than $1,000. The majority of women 
over 15 are illiterate. Yet we are pouring our aid money into cutting-
edge military equipment rather than into desperately needed economic 
and social programs. What do we get for this lavish support of the 
Egyptian military, over $30 billion in recent years? When we needed 
Egypt's support, the powerful Egyptian military on the whole has been 
AWOL. Just imagine how politically and militarily useful would have 
been Egyptian police presence in Afghanistan. It still would be. The 
Egyptian government said, ``Sorry, it's not our fight.''

                              {time}  1400

  And that is on its best days when it is not viciously criticizing our 
policies. If Egypt is not going to support us militarily, we can 
nevertheless serve the interests of the Egyptian people and our own 
national interest by supporting health, education, and economic 
development programs that contribute to the stability of Egypt. We can 
do this by correcting our own mistaken priorities in Egyptian foreign 
aid. That is exactly what we intend to do.
  The amendment which the gentleman from Indiana (Mr. Pence), the 
gentleman from New York (Mr. Ackerman), the gentlewoman from Florida 
(Ms. Ros-Lehtinen), and the gentleman from Virginia (Mr. Cantor) and 
others support, would transfer the funds from military to economic 
assistance. This clearly is in the interests of the Egyptian people, 
and it is in the long-term interests of diminishing the military 
confrontation in the Middle East. Our amendment would not force the 
cancellation of any existing military contracts, contrary to a phony 
letter designed by the Department of State and distributed in this 
body.
  One would have thought that the Department of State would learn the 
difference between fiction and fact because the Department of State 
sent out the Secretary of State to the United Nations on a globally 
televised program where he peddled fiction and was presenting it as 
fact. We do not want the Department of State to be equally embarrassed 
again by peddling fiction instead of dealing with facts.
  The framework of the Egyptian-Israeli peace process is now 25 years 
old. We should no longer have to pay the Egyptian military political 
protection money to keep it in place. The biggest threat to Egyptian 
stability is its bloated military budget, which undermines economic and 
educational development and democratization. In fact, if we enhance our 
support for economic and social projects in Egypt, our credibility with 
the Egyptian people will soar.
  I strongly urge my colleagues to support this reasonable, logical 
amendment, which is in the interests of the Egyptian people, which is 
in the interests of strengthening the forces of peace in the Middle 
East, and which clearly is in our own national interests.
  Mr. Chairman, I reserve the balance of my time.
  Mr. KOLBE. Mr. Chairman, I yield 4 minutes to the gentleman from 
Wisconsin (Mr. Obey), distinguished ranking member of the full 
committee.
  Mr. OBEY. Mr. Chairman, those who know me in this House know that I 
have a vast preference in almost all instances for economic assistance 
rather than military assistance, not just in the Middle East but in 
virtually every other area of the world. I think that for years we have 
been unbalanced in terms of military assistance as a policy weapon 
instead of trying to deal with more basic long-term economic and 
structural problems within recipient societies.
  But I happen to believe that in this instance it would be 
counterproductive to pass the amendment offered by the distinguished 
gentleman from California. I greatly respect his knowledge in the area. 
I respect his passion. I respect his guts. But I think that at a

[[Page 15840]]

time when we have been questioning unilateral practices on behalf of 
the White House, this would be a peculiarly strange time for me on this 
side of the aisle to practice some unilateralism myself, and I think 
that is what this amendment does.
  Secondly, I would point out that it is in Israel's interest, as our 
most reliable ally in the region, it is in Israel's best interest for 
us to maintain the best possible relationships with our friends in the 
Arab world that we can possibly retain. And I would point out that 
right now we need Egypt to deal with the pending withdrawal from Gaza 
on the part of the Israelis. We need Egypt's help in training police so 
that we can see real security provided in that region and help protect 
Israel itself against attack.
  And I also think that we do not at this point want to weaken Mr. 
Mubarak with his military because I think that civilian control of the 
military in that country is tenuous at best; and even though Mr. 
Mubarak is out of the military, it is in our interest for a decent and 
healthy and strong relationship between Mr. Mubarak and the Egyptian 
military to continue to exist.
  I would urge Members to recognize that right now American influence 
in the Arab world is at an all-time low. Much exploitation has occurred 
against America's interests, much exploitation of Arab public opinion 
has occurred because of the activities in Iraq. Regardless of how we 
feel about that, we have to admit that that is the case with respect to 
Arab public opinion.
  I think it would be a disastrous development for the Congress to take 
a unilateral action which would undercut the administration's ability 
to work with what moderate forces are left in the Arab world, and I 
would strongly urge that we oppose this amendment.
  I recognize the emotional force that lies behind the amendment; but 
sometimes we have to think with our heads, not with our spleens. This 
is certainly one of those occasions, and I would urge rejection of the 
amendment.
  Mr. LANTOS. Mr. Chairman, I yield 2 minutes to the gentleman from 
Virginia (Mr. Cantor).
  Mr. CANTOR. Mr. Chairman, I thank the gentleman from California and 
the gentleman from Arizona for bringing this bill forward. And I rise 
in support of the amendment by the gentleman from California.
  As he has stated, Egypt has embarked on a major military buildup of a 
sort one would expect from a nation under dire and imminent threat. 
Last year, the Egyptian Navy created 11 new battle units. At a time of 
30 percent illiteracy and a per capita income of less than $1,000, 
Egypt is pouring its money into cutting-edge military equipment rather 
than schools, hospitals, and economic development.
  The United States has a vital stake in Egypt's stability and 
prosperity, and the U.S. can best serve that goal and the strengthening 
of the relationship with Egypt by supporting educational and economic 
development, as well as political freedom, that contributes most 
effectively to Egyptian stability.
  The amendment offered by the gentleman from California (Mr. Lantos), 
the gentleman from Indiana (Mr. Pence), the gentlewoman from Florida 
(Ms. Ros-Lehtinen), the gentleman from New York (Mr. Ackerman), and 
others will not, as the gentleman from Wisconsin suggests, preclude 
Egypt's ability to help the United States in brokering the pull-out 
from Gaza which Israel has embarked upon. It will not weaken Mr. 
Mubarak in the eyes of his military. My goodness, as the gentleman from 
California has stated, we have given Egypt $30 billion over the last 20 
years. This will not preclude our ability to work with Egypt, a 
moderate Arab ally.
  Instead, Mr. Chairman, this amendment supports the Egyptian people 
and the U.S. interests by transforming approximately 25 percent from 
the Egyptian military, changing that into economic assistance that will 
improve the quality of life of the Egyptian people and contribute to 
the overall prospects for peace in the Middle East.
  Mr. KOLBE. Mr. Chairman, I yield 4 minutes to the distinguished 
gentlewoman from New York (Mrs. Lowey), ranking member of the 
subcommittee.
  Mrs. LOWEY. Mr. Chairman, I rise in reluctant opposition to this 
amendment. For the last several years I have joined many of my 
colleagues, including this amendment's sponsor, in expressing concern 
about the composition of the United States aid package to Egypt. Why at 
a time when Egypt has no major enemies should we be providing over $1 
billion each year in military assistance? Why, when economic conditions 
in Egypt are so dire, should we be maintaining such a high level of 
military aid even as economic assistance levels drop?
  I share the concerns many of my colleagues have expressed about 
Egypt's record. Egypt's media is rife with anti-Israel and anti-Semitic 
images and language, including constant comparisons between Israel and 
the Nazis in television shows that perpetuate anti-Semitism. Egyptian 
officials have called Israel a ``terrorist organization'' by taking 
self-defensive actions against terrorists in the West Bank and Gaza. 
Egypt's move towards political reform has been slow and bumpy, with 
little support from that country's top leaders for adopting measures to 
make Egyptian society more democratic and inclusive.
  As for Egypt's record on security and peace process issues, I have 
other serious concerns. The Egyptians have dragged their feet in 
stemming the flow of smuggled weapons through tunnels under the Egypt-
Gaza border. The Egyptian leadership has not historically been helpful 
in pressing the Palestinians to comply with agreements they have 
already made and to negotiate with Israel on matters of grave 
importance to regional stability and security. Egypt has failed to 
return its ambassador to Israel since it recalled him nearly 4 years 
ago.
  All these examples point to one conclusion: Egypt has not acted the 
way we should expect one of the largest recipients of United States 
foreign aid to act. Its policies have at times been in outright 
opposition to the best interests of United States national security. 
For these reasons, I agree with the message of the gentleman's 
amendment.
  However, as much as I agree with my good friend's message, I am 
troubled by the timing. In the wake of Israeli Prime Minister Sharon's 
decision to pursue a unilateral Israel withdrawal from Gaza, which I 
strongly support, Egypt has signaled a new readiness to play a 
constructive role in making the region secure. Egyptian intelligence 
chief Omar Suleiman has become the point man in discussions with the 
Palestinians, delivering the message of the United States and the 
Quartet that the Palestinians must consolidate and reform their 
security forces and empower their prime minister rather than Chairman 
Arafat.
  Egypt is taking actions right now that are supportive of what Israel 
has determined is in its best security interests. So at a time when 
Egypt is preparing to take on the Herculean task of consolidating and 
training the Palestinian security services, a task that will require 
steely resolve and sustained pressure on Arafat to achieve, I am 
concerned about the unintended consequences this amendment may have.
  In a July 2 op-ed in The Washington Post, former Middle East envoy 
Dennis Ross, who has served both administrations and is probably one of 
the foremost experts in this region of the world, warned that the 
Egyptians are unlikely to succeed at the long list of goals they have, 
goals shared by both the United States and Israel without active United 
States support. I agree with Ambassador Ross, and I believe that this 
amendment could have the effect of chilling these efforts at a time 
when they could be most helpful for bolstering security in the region.

                              {time}  1415

  Mr. LANTOS. Mr. Chairman, first I want to thank my good friend for 
eloquently and powerfully making the case for my amendment.
  Mr. Chairman, I am now pleased to yield 2 minutes to my friend, the 
gentleman from New York (Mr. Ackerman), the ranking member of the 
Subcommittee on the Middle East and Central Asia.

[[Page 15841]]


  Mr. ACKERMAN. Mr. Chairman, I thank the distinguished ranking member 
for his leadership on this very important issue.
  Mr. Chairman, it is important to be clear about what this amendment 
does not do. It does not cut the overall level of assistance to Egypt 
but merely redirects a portion of our military assistance to economic 
assistance.
  For many years we went in the opposite direction. We decreased our 
economic assistance to Egypt, while our military aid has remained the 
same. At the same time, I have wondered why Egypt needs all of these 
advanced weapons from us. Who are they arming themselves against? 
Finland?
  I have met repeatedly with senior Egyptian military leaders and posed 
this question to them. The answer I get is that they need capabilities 
to respond to the ``unknown threat.'' But someone, somewhere, must have 
an idea of what that threat is. Otherwise, how do you know what 
equipment to buy or what capabilities you need?
  I recognize that Egypt has admirably provided the United States with 
overflight rights and swift transit through the Suez Canal. I also 
recognize that a certain level of interoperability between the United 
States and Egyptian forces is necessary in order for them to 
participate in future peacekeeping missions. Therefore, some level of 
military assistance is necessary to maintain that interoperability.
  But I believe what Egypt needs now is not a larger, more powerful 
military, but a stronger, more prosperous economy. Decreasing our 
economic assistance while military assistance remains the same does 
neither Egypt nor us any favors.
  Egypt faces significant economic challenges. Real wages stagnate, 
there is a growing debt burden, unemployment is far in excess of 
official estimates. All of this requires us to redouble our efforts to 
encourage economic reform in Egypt. Egypt's current economic growth 
rate is insufficient to absorb the 600,000 to 800,000 new entrants into 
the job market each year.
  What is needed is more and faster reform, but the insistence of the 
government of Egypt on going slow on economic reform and has continued 
to discourage foreign direct and indirect investment, a key input if 
the Egyptian economy is to grow at a rate that will actually lower 
unemployment.
   Shifting the emphasis of our aid to Egypt will also assist in 
supporting political reform there. Egypt has recently been saying all 
of the right things about political reform, although not much seems to 
be happening of late. The energy and enthusiasm for reform that emerged 
after Egypt's National Democratic Party's conference last year seems to 
have dissipated with opposition parties charging that the NDP has not 
consulted with them on the next steps in the reform process as 
promised.
   Mr. Chairman, Egypt is an important partner to us in the pursuit of 
peace in the Middle East and Egypt has in the past taken courageous 
steps to pursue that peace. For that reason, I support the amendment 
and urge our colleagues to do so as well.
  Mr. KOLBE. Mr. Chairman, I am pleased to yield 4 minutes to the 
gentleman from Florida (Mr. Young), the distinguished chairman of the 
Committee on Appropriations.
  Mr. YOUNG of Florida. Mr. Chairman, I appreciate the gentleman 
yielding me this time.
  I want to say to the author of this amendment that I understand his 
interest and I think it is a good-faith effort, but I just cannot agree 
with it.
  I think the gentleman would agree, that one of the only stabilizing 
factors in the very unstable Middle East is the relationship that the 
United States has, on behalf of Israel, with President Mubarak and the 
nation of Egypt. Any change to the Egyptian military assistance 
account, I believe, would seriously undermine that strong U.S.-Egypt 
partnership that started in 1979 at the Camp David Accords and 
continues to be one of the foundations for achieving our own foreign 
policy goals in the Middle East.
  Members know that U.S. military aid to Egypt is a cornerstone of the 
Camp David Accords. The Administration is opposed to an amendment that 
would modify our commitment to the parties as contained in that 
agreement. This commitment is the foundation of our efforts to promote 
peace in the region, to combat terrorism, and to advance 
interoperability with the Egyptian military.
  In addition, this reduction in military assistance could lead to the 
cancellation of approximately $2.2 billion in total contract value. 
These contracts all go towards the purchase of United States products.
  Our military assistance to Egypt has contributed to regional 
stability in an area that had previously been the scene of military 
conflict against Israel. This calming of tensions has enabled us to 
develop a strategic partnership with Egypt that has contributed to a 
broad range of U.S. objectives in the region, including the global War 
on Terrorism, the stabilization and reconstruction of Iraq, and, more 
recently, the efforts to stop the humanitarian crisis in the Sudan.
  Egypt has also taken a critical initiative to work with Israel to 
support the Israeli withdrawal from the Gaza Strip through the 
reorganization and training of the Palestinian security services.
  On a bilateral military-to-military level, our assistance has helped 
to modernize the Egyptian military, thereby creating a defensive force 
that is interoperable with and capable of supporting, U.S. security 
goals in the region. We also continue to train Egyptian military 
officers through the IMET Program and to conduct joint exercises, 
thereby ensuring that our militaries both understand and support each 
other at critical moments.
  This Egyptian capacity has enabled the Egyptian military to 
participate in international peacekeeping operations, to help us 
successfully prosecute Operations Enduring Freedom and Iraqi Freedom, 
to enable our craft to safely transit the Suez Canal, to enable our 
planes to traverse Egyptian air space, and to provide our tankers with 
invaluable accession to Egyptian facilities.
  This amendment would undermine this relationship, and I would hope 
that the Members would join the bipartisan leadership of the Committee 
on Appropriations in opposing this amendment.
  Mr. LANTOS. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I just want to remind the distinguished chairman of the 
Committee on Appropriations that, if my amendment is approved, Egypt 
will still receive vast military assistance from the United States. At 
the present time, the bulk of our aid is military aid, and my amendment 
merely shifts the balance a bit.
  Mr. Chairman, I am pleased to yield 2 minutes to my good friend, the 
distinguished gentlewoman from Florida (Ms. Ros-Lehtinen), the Chair of 
the Subcommittee on the Middle East and Central Asia of the Committee 
on International Relations.
  Ms. ROS-LEHTINEN. Mr. Chairman, I rise in strong support of the 
Lantos amendment. It is with sadness and great concern that I rise 
today to propose a shift in military aid to Egypt. I am saddened that 
Egyptian society is suffering from illiteracy, decreasing per capita 
income, and is clamoring for the right to exert their fundamental 
freedoms and civil liberties, while the Egyptian government has 
embarked on a significant military buildup of the sort one would expect 
from a nation under imminent threat.
  Yet, as all of us know, Egypt currently occupies a secure, strategic 
environment, further improved by Libya's decision to verifiably disarm 
and dismantle its chemical, biological and nuclear missile programs.
  Egypt's military aid is particularly daunting when considered within 
the context of the $1.3 billion in annual military aid that the U.S. 
provides to Egypt, in essence making us in this Chamber enablers of 
this increase in Egyptian battle units, Harpoon missiles and fast-
attack aircraft.
  This cannot and must not continue.
  You will hear that the administration has concerns about this 
amendment. However, the amendment that I have cosponsored on a 
bipartisan basis is in keeping with President Bush's priorities to 
bring freedom, democracy and economic liberalization to the Middle 
East.
  This amendment merely shifts funds from military aid to economic 
assistance for the purpose of supporting

[[Page 15842]]

Egyptian civil society and improving the quality of life of the 
Egyptian people. It is in keeping with U.S. public diplomacy efforts by 
sending a clear message about U.S. priorities for Egypt's future and 
the future of Egypt's people. It builds goodwill with the people of the 
region by supporting educational, economic and political development, 
goals which contribute most effectively to Egypt's internal stability.
  You might hear arguments about how this amendment undermines Egypt's 
efforts to provide security in Gaza. Let us not be fooled: Egypt is not 
using this military assistance for anything else but to strengthen its 
political stature in the region through a show of weapons and military 
capabilities.
  Mr. Chairman, I think that it is time to say no more excuses, and let 
us vote for the Lantos amendment.
  Mr. KOLBE. Mr. Chairman, I yield 3\1/2\ minutes to the distinguished 
gentleman from California (Mr. Berman).
  Mr. BERMAN. Mr. Chairman, very, very reluctantly I rise in opposition 
to the amendment of my good friend and, more importantly, our wise and 
respected colleague, the ranking member of the Committee on 
International Relations (Mr. Lantos). He and I are hardly ever on 
opposite sides of an important issue relating to the Middle East.
  Everyone knows this amendment will not become law, irrespective of 
what happens today. Neither the Senate nor the conference committee 
will accept this transfer. The administration would veto it if it did. 
So, if you pardon the use of a military metaphor, this is simply a shot 
across the bow.
  There are ample reasons to take that shot. On democracy promotion, 
respect for human rights economic reforms, the Egyptian record is 
woefully inadequate. The state-sponsored media is filled with repulsive 
antisemitism and outrageous over-the-top scapegoating of Israel and the 
United States for the serious problems afflicting the Arab world. Egypt 
faces no external existential military threats.
  But this is the wrong time to take this shot and the wrong time to 
pass this amendment. Why? Because it will not achieve its purposes, and 
it threatens to undercut America's national interests in seeking to 
resolve the Israeli-Palestinian conflict.
  How so? For the first time in a very long time, the political and 
military leadership of Egypt appears willing to take real risks that 
will enhance Israel's security and force Yasser Arafat to end his 
support for terrorism.
  We are at a critical juncture in the Middle East. Prime Minister 
Sharon, the father of the settlement movement, has proposed and is 
deeply committed to an historic disengagement plan that will lead to 
the removal of all Israeli settlements and military installations from 
Gaza, at the cost of severing his ties to much of his own political 
base. This plan is supported by a substantial majority of the Israeli 
people.
  Egypt has a huge stake in the success of the disengagement plan. The 
last thing they want is a terrorist base camp in Gaza that exports 
instability to their country and other parts of the region.
  In recent weeks, Egypt has begun to play a very constructive role in 
discussions with Israel and the Palestinians to help ensure an orderly 
Israeli withdrawal from Gaza.
  Most importantly, for the first time since the outbreak of violence, 
they have put significant pressure on Yasser Arafat. President 
Mubarak's envoy, General Omar Suleiman, has demanded that Arafat 
relinquish control over all Palestinian security forces and agree to 
their consolidation. In addition, he has told Arafat he must fire more 
than 70 corrupt Palestinian officials, or risk losing any Egyptian 
financial assistance. Egypt has expressed its willingness to train the 
Palestinian security services in Gaza as the disengagement plan 
proceeds.
  In light of Arafat's repeated refusal to take steps that could stop 
the violence, we are not sure whether the Egyptian efforts will bear 
fruit.
  Mr. Chairman, let me conclude with a quote from the Associated Press 
from yesterday: ``The first time an Egyptian President took the risk of 
reconciling with Israel, he was shunned by other Arabs and vilified by 
his own citizens. A quarter century after Anwar Sadat became the first 
Arab leader to sign a peace treaty with Israel, his successor, Hosni 
Mubarak, is contemplating yet another risky step in the world of Middle 
East peacemaking: Sending Egyptians to help keep the peace in Gaza if 
Israel withdraws.
  ``And as with the 1979 treaty, which ushered in a lasting if cool 
peace, Egypt finds itself accused of a variety of missteps.''
  Mubarak is acting on behalf of hated Israel to many of the people in 
the Arab world. What a strange time to propose this particular 
amendment.
  Mr. LANTOS. Mr. Chairman, I am delighted to yield 1\2/3\ minutes to 
our distinguished colleague and my good friend the gentleman from 
Massachusetts (Mr. Delahunt).
  Mr. DELAHUNT. Mr. Chairman, when I hear about now is not the time, I 
guess my response is, when is it? I dare say it is long overdue.
  Last November, President Bush said in a speech to the National 
Endowment for Democracy, ``As long as the Middle East remains a place 
where freedom does not flourish, if will remain a place of stagnation, 
resentment, and violence ready for export.''
  Those in this body know that it is rare that I agree with President 
Bush, but he has it right on this occasion.
  We learned on September 11 that this is not just an image problem, 
and I refer to the anti-American sentiment that is abundant in the 
Middle East, because we, unfortunately, are perceived to be aligned 
with regimes in the Middle East that do not serve their people well.
  This is what our State Department in its Human Rights Report has to 
say about Egypt. ``The security forces committed numerous serious human 
rights abuses. The ruling party dominated the legislature.

                              {time}  1430

  ``The mass media, labor, and large public sector entities control the 
licensing of new political parties, newspapers, private organizations 
to such an extent that as a practical matter, citizens do not have the 
meaningful ability to change their government.''
  Yet we find ourselves considering another $1 billion plus and we are 
doing nothing to advance the cause of democracy and the nurturing of 
democratic institutions in the Middle East and specifically, in Egypt, 
and now is the time.
  Mr. KOLBE. Mr. Chairman, I yield 1\1/2\ minutes to the distinguished 
gentleman from California (Mr. Issa).
  Mr. ISSA. Mr. Chairman, I reluctantly come, as many of my colleagues, 
probably this is as close to a 50-50 vote as we are normally going to 
have on this floor, to oppose this amendment, not because many of the 
points being made are not accurate, but because in 1998, Egypt and the 
United States agreed to a 10-year economic assistance phase-down. We 
agreed between our two nations to a long-term change in what had been 
the 1979 peace agreement. We need to be a nation that keeps our 
promises or renegotiates in good faith. It should not be done 
unilaterally from this body.
  What I would say is, if, as I hope and will vote this is defeated, we 
should all work together to find new ways to ensure that Egypt has the 
assets and the impetus to do 100 percent successful sealing of the Gaza 
border, and particularly the tunnels that have been so troublesome. I 
look forward to working with both sides of the aisle after this vote to 
make that happen.
  Mr. LANTOS. Mr. Chairman, I am delighted and proud to yield 1 minute 
to my dear friend and distinguished colleague, the gentleman from 
Indiana (Mr. Pence).
  Mr. PENCE. Mr. Chairman, I rise in strong support of the Lantos 
amendment, and I appreciate so much the gentleman's leadership on this, 
as much as I appreciate the strong leadership of the gentleman from 
Arizona (Chairman Kolbe) on this legislation as a whole; excellently 
prepared, thoughtfully conceived.
  I find it difficult to add to the arguments that have been made, so I 
will

[[Page 15843]]

add a new argument. The State Department asserted earlier today that 
the United States had developed a strategic partnership with Egypt that 
has contributed to the global war on terrorism, stabilization, and 
reconstruction of Iraq.
  If the truth be told, Mr. Chairman, Egypt has been largely absent 
from the war on terror, despite the contribution of $1.3 billion in 
military assistance by the people of the United States of America; 
despite its sizable and, we learned today, increasingly well-funded 
military force that has contributed no combat forces to our effort in 
Afghanistan; and, unlike Jordan, Egypt has not offered to send a single 
soldier to even help the Iraqi interim government establish peace and 
stability.
  It is for these reasons that I think it is time to send a message to 
Egypt to transfer resources into humanitarian purposes and bring them 
on board on the war on terror.
  The CHAIRMAN. The gentleman from Arizona (Mr. Kolbe) has 4\1/2\ 
minutes remaining; the gentleman from California (Mr. Lantos) has 4\3/
4\ minutes remaining.
  Mr. KOLBE. Mr. Chairman, I am pleased to yield 2 minutes to the 
distinguished gentleman from Michigan (Mr. Dingell).
  Mr. DINGELL. Mr. Chairman, our efforts to achieve peace in the Middle 
East have a major part of their foundation in the accords of Camp 
David. Part of those accords were that we would provide a certain level 
of military assistance to our friends in Egypt. They and the Israelis 
are the friends that we have in that area. This amendment puts the 
finger of the Congress of the United States in the eye of our friends 
in Egypt. We have commitments made to them. Those commitments will be 
broken by this amendment.
  Now, to go further, what do these accords do? They give the 
Egyptians, in addition to all things else, the required strength to 
come in to assist us, the U.N., and the Israelis in providing the 
necessary security at Gaza when Gaza is relinquished by Premier Sharon. 
The result of that will be that if we do not see that Egypt has 
sufficient funding, they may either choose not to or may be incapable 
of moving in to control the terrorists and other organizations which 
are sinister threats not only to Israel, to the United States, but to 
the peace in the area. This amendment is therefore extremely 
counterproductive to the purposes of this Nation and to the commitments 
which we have made.
  Beyond that, it poses a real threat to the security of Israel and the 
security of the area. Fancy, if my colleagues please, another 
Afghanistan directly on the borders of Israel full of terrorists, full 
of extremists, full of people who bring danger not just to world peace, 
but to Israel. I ask my colleagues to conceive of whether that is a 
wise policy for us to enunciate today by the adoption of this 
amendment.
  Now, I say this with all respect to the author of the amendment. I am 
sure he is sincere in what he does. But the result of this action is 
counterproductive in the extreme. It breaches a sensible commitment 
made by the United States. It poses risks to Israel and significant 
danger to world peace.
  Mr. LANTOS. Mr. Chairman, I am delighted to yield 1 minute and 50 
seconds to my good friend and distinguished colleague, the gentleman 
from Oregon (Mr. Blumenauer).
  Mr. BLUMENAUER. Mr. Chairman, while the words of the dean of the 
House are ringing in our ears, I would just point out that Egypt also 
has a vital interest in maintaining stability in Gaza. They are going 
to do so, move in to help deal with stability there, not because we 
bribe them, but because it is in their national interests. They cannot 
afford for it to fall apart.
  I appreciate what the ranking member of the Committee on 
International Relations has done bringing forward this amendment. We 
have a long and productive relationship with Egypt, and it is not going 
to change if we change the emphasis. We have already invested in Egypt 
as the number two recipient of our aid, over $30 billion, much of it in 
military assistance. We bought interoperability.
  The question, I think, is after 25 years, how do we make adjustments, 
6 years after the most recent alignment. The gentleman from California 
(Mr. Berman) asks, `is this the wrong time?' I think the gentleman from 
California (Mr. Lantos) is saying now is the time, even if it does not 
pass, to signal that the way that we are going to have peace in Egypt, 
in the Middle East, is to stabilize the economy, shift away from 
massive military buildup, which they do not need, and feed that 
positive public opinion.
  I can think of nothing more positive than for us to invest in the 
Egyptian people at a time when their government sadly has fallen short, 
fallen short in terms quieting virulent anti-Semitic rhetoric. It has 
fallen short in meeting the needs of the Egyptian people. They have all 
the military they need to deal with their current needs and with moving 
in to Gaza for their own interests. It is time to send a signal that we 
are going to beef up the economic side of the equation.
  Mr. LANTOS. Mr. Chairman, I am delighted to yield 1 minute to my good 
friend, the gentlewoman from Nevada (Ms. Berkley), a distinguished 
member of the Committee on International Relations.
  Ms. BERKLEY. Mr. Chairman, I rise in strong support of the Lantos 
amendment; and I thank him, thank him for bringing this forward.
  Per capita income in Egypt hovers around $1,000 a year. Illiteracy, 
30 percent, over 50 percent for women. With this kind of poverty, why 
are we continuing to fund the military complex instead of providing 
economic aid to the Egyptian people? There is no need for military 
assistance to protect Egypt's borders. They have no enemies in the 
region.
  But let us please examine their record.
  When I hear my colleagues talk about their aid in our war against 
terrorism, who are we kidding? They have contributed no combat forces 
in Afghanistan. They have contributed no help to the United States in 
Iraq. They have done nothing to stop the virulent anti-Semitism and 
anti-United States rhetoric that is rampant in their media, and they do 
not need $1.3 billion in order to support Israel's withdrawal from the 
Gaza.
  The Egyptians claim they are supporting Israel's efforts in the Gaza, 
but how are they doing that? They have done nothing to stem the flow of 
arms and terrorists. They have done nothing to close the tunnels. They 
have done nothing to help train a single Palestinian in their security 
forces.
  Their economy is in shambles. It is time that we do something for the 
Egyptian people.
  Mr. LANTOS. How much time do we have, Mr. Chairman?
  The CHAIRMAN. The gentleman from California has 2 minutes remaining; 
the gentleman from Arizona has 2\1/2\ minutes remaining.
  Mr. LANTOS. Mr. Chairman, I am delighted to yield 1 minute and 45 
seconds to the distinguished gentleman from Massachusetts (Mr. Markey).
  Mr. MARKEY. Mr. Chairman, I thank the gentleman for yielding me this 
time.
  This amendment does not cut aid for Egypt. What it does is, it cuts 
aid for Egypt's military; and it takes the same amount of money and 
gives that money to the civilian economy in Egypt, to help the citizens 
of Egypt. And it is to send a signal to the Egyptian leaders and to the 
Egyptian military that it is unacceptable for the United States people 
to give money to the Egyptian military, even as a sieve has been 
created which allows for the transfer, the smuggling of guns and other 
weapons, explosives from Egypt into the Gaza, which is being used by 
Palestinian radicals to kill Israeli civilians.
  That is the signal that we are sending, not to the Egyptian people, 
they can keep the money; but to the Egyptian military that they must do 
their job to secure their borders so that there is peace in Gaza, so 
that Israelis are not made victims of a trusting relationship between 
the United States and the Egyptian government and military. That is the 
signal which we are sending, and that is hopefully what will happen as 
we renew, through Egypt and its leaders, the commitment to the

[[Page 15844]]

principles embraced by former President Anwar Sadat who, in his 1988 
address to the Israeli Knesset, said, What is peace for Israel? It 
means Israel lives in the region with her Arab neighbors in security 
and safety. Is that logical? I say yes. It means that Israel lives 
within its borders secure against any aggression. Is that logical? And 
I say yes. It means that Israel abates all kinds of guarantees that 
will ensure these two factors. To this demand, I say yes.
  We need Anwar Sadat's kind of leadership in Israel today. Vote 
``yes'' on the Lantos amendment.
  Mr. LANTOS. Mr. Chairman, I yield myself the remainder of the time.
  Mr. Chairman, if my colleagues think that Egypt needs more high-tech 
military equipment, vote against our amendment. If my colleagues 
believe that the Egyptian people, with a per capita income of less than 
$1,000 and a social system which is a shambles, need more economic aid, 
then vote for the Lantos amendment. I urge my colleagues to do so.
  Mr. KOLBE. Mr. Chairman, I yield myself the balance of the time.
  Mr. Chairman, I want to say at the outset that I have the greatest 
respect for the gentleman from California (Mr. Lantos), the sponsor of 
this amendment; but I believe that adoption of the amendment would be a 
serious mistake and it will undermine our relations with one of our 
major allies in the Middle East.
  This amendment is being proposed at the very time when the 
governments of Egypt and Israel are coordinating plans for Israel to 
withdraw from Gaza. In order for a withdrawal to be successful, both 
countries must cooperate on security and intelligence matters; and 
Egypt must be prepared to help ensure that terrorist organizations do 
not gain power in Gaza. Discussions, cooperation, and coordination on 
these matters are already occurring at the highest level of both 
governments.
  I cannot imagine that at the very time that Israel and Egypt, after 
years of an admittedly cold, frosty peace, are finally engaged in 
serious discussions on military and on intelligence cooperation, that 
this Congress would choose this moment to disrupt this cooperation by 
cutting military assistance for Egypt.
  As has already been indicated, the administration does strongly 
oppose this amendment, and part of the letter from Secretary Powell has 
been quoted in opposition to this amendment. I will include the entire 
letter in the Record at this point, but let me quote from one section 
of that letter.
  In it the Secretary says: ``In Egypt we have an ally that can help us 
in war and in peace. Our credibility in this relationship depends to a 
great degree upon being a reliable provider of assistance to the 
Egyptian military.

                              {time}  1445

  ``A transfer of funds from the military assistance account to the 
economic account will damage the credibility of our bilateral relations 
at a very sensitive moment in the region, one that has witnessed 
Egyptian engagement in and support of our regional objectives.''
  Include the full text of the letter for the Record.

                                       The Secretary of State,

                                    Washington, DC, July 14, 2004.
     Hon. Jim Kolbe,
     Chairman, Foreign Operations, Export Financing and Related 
         Programs, Committee on Appropriations, House of 
         Representatives.
       Dear Mr. Chairman: I ask for your support on the subject of 
     a possible amendment to the Fiscal Year 2005 Foreign 
     Operations Appropriation bill that proposes to reduce our 
     annual military assistance to Egypt by 25 percent and to 
     reprogram it for economic assistance. We understand that the 
     House may consider this amendment July 15. This matter is of 
     urgent concern, as I believe that any changes to the Egypt 
     military assistance account would seriously undermine the 
     strong U.S.-Egypt partnership that has been built since the 
     1979 Camp David Accords and that continues to be one of the 
     foundations for achieving U.S. foreign policy goals in the 
     Middle East.
       As you know, U.S. military aid to Egypt is a cornerstone of 
     the Camp David Accords. The Administration is opposed to any 
     amendment that would modify our commitment to the parties as 
     contained in that agreement. This commitment is the 
     foundation of our efforts to promote peace in the region, to 
     combat terrorism, and to advance interoperability with the 
     Egyptian military. In addition, a $325 million reduction in 
     military assistance, as proposed, could lead to the 
     cancellation of approximately $2.2 billion in total contract 
     value; these contracts all go towards the purchase of U.S. 
     products.
       Our military assistance to Egypt has contributed to 
     regional stability in an area that had previously been the 
     scene of military conflict against Israel. This calming of 
     tensions has enabled us to develop a strategic partnership 
     with Egypt that has contributed to a broad range of U.S. 
     objectives in the region, including the Global War on 
     Terrorism, the stabilization and reconstruction of Iraq, and 
     more recently, efforts to stop the humanitarian crisis in 
     Darfur, Sudan. Egypt has also undertaken a critical 
     initiative to work with Israel to support the Israeli 
     withdrawal from the Gaza Strip through the reorganization and 
     training of the Palestinian security services.
       On a bilateral military-to-military level, our assistance 
     has helped to modernize the Egyptian military, thereby 
     creating a defensive force that is interoperable with, and 
     capable of supporting, U.S. security goals in the region. We 
     also continue to train Egyptian military officers through the 
     International Military Education and Training Program and to 
     conduct joint training exercises, thereby ensuring that our 
     militaries both understand and support each other at critical 
     moments. This Egyptian capacity has enabled the Egyptian 
     military to participate in international peacekeeping 
     operations, to help us successfully prosecute Operations 
     Enduring Freedom and Iraqi Freedom, to enable our craft to 
     safely transit the Suez Canal, to enable our planes to 
     traverse Egyptian airspace, and to provide our tankers with 
     invaluable access to Egyptian facilities.
       In Egypt we have an ally that can help us in war and peace. 
     Our credibility in this relationship depends to a great 
     degree upon being a reliable provider of assistance to the 
     Egyptian military. A transfer of funds from the military 
     assistance account to the economic account will damage the 
     credibility of our bilateral relations at a very sensitive 
     moment in the region, one that has witnessed Egyptian 
     engagement in and support of our regional objectives. I hope 
     you will oppose this amendment.
           Sincerely,
                                                  Colin L. Powell.

  Again, I have great respect for the author of the amendment. However, 
this is not the time to make a cut of more than 40 percent of military 
assistance. Even if we were so inclined, now is not the time to take 
that kind of action that would disrupt our ongoing efforts to 
facilitate the withdrawal of Israel from Gaza. I urge the House to 
reject this amendment.
  Mr. KNOLLENBERG. Mr. Chairman, I rise in opposition to this 
amendment.
  Since the 1978 Camp David accords, Egypt and the United States have 
shared a close relationship built around mutual strategic interests and 
common goals.
  The U.S.-Egyptian military is both strong and important.
  Our military assistance to Egypt has helped to build an Egyptian 
military that is interoperable with the United States, and actively 
supports U.S. security goals in the region. This Egyptian capacity has 
enabled our U.S. ships to safely traverse the Suez Canal, and enabled 
our planes to effectively traverse Egyptian airspace.
  Let me be clear. I am not satisfied with the pace of economic and 
political reform in Egypt. I know many of the Egyptian people feel the 
same way. There are many issues the United States and Egypt will have 
to work through in the coming years. It is important for the United 
States to continue to press Egypt on these issues.
  However, I believe this amendment would unwisely undermine the U.S.-
Egyptian military relationship. This would be particularly damaging at 
a time when Egypt is providing important cooperation in the War on 
Terrorism and the peace process between Israel and the Palestinians. In 
addition, as we ask Egypt to take a more prominent role in the security 
of the Gaza strip, we should not undercut Egypt's ability to play the 
role we are asking them to play.
  Mr. Chairman, for all these reasons, I urge my colleagues to join me 
in voting against this amendment.
  Mr. CROWLEY. Mr. Chairman, I rise today in strong support of my good 
friend from California Mr. Lantos's amendment.
  It is time for the United States to start redirecting aid to Egypt.
  The United States has been providing military assistance to Egypt for 
over 20 years and Egypt has made peace with its neighbors.
  Egypt no longer has to fear from any outside threats to its 
sovereignty and it's now time this aid move toward helping Egyptian 
people not the military.

[[Page 15845]]

  The real threat to Egypt comes from the poverty and lack of freedom 
that exists in the country today.
  We cannot continue to fund the military while people live in squalor 
and do not have the freedoms they deserve.
  Egypt must start focusing on its people and its economic reforms.
  Moving towards economic aid will help to push this process forward.
  Egypt is a consistent violator of human rights and our funding needs 
to address how to begin to respect these rights.
  Even in the State Department human rights reports, they reported that 
there is ``convincing evidence'' the police regularly use torture to 
extract confessions, and detain suspects without charging people or 
bringing them to trail.
  I continue to see Egypt's lack of respect for minority and religious 
rights.
  Our funding should not be building up Egypt military but instead on 
building its society.
  Mr. Chairman, I stand in strong support of this amendment and urge my 
colleagues to support the passage of this important amendment.
  Mr. KOLBE. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from California (Mr. Lantos).
  The question was taken; and the Chairman announced that the noes 
appeared to have it.
  Mr. LANTOS. Mr. Chairman, I demand a recorded vote.
  The CHAIRMAN. Pursuant to clause 6 of rule XVIII, further proceedings 
on the amendment offered by the gentleman from California (Mr. Lantos) 
will be postponed.
  The Committee will rise informally.
  The SPEAKER pro tempore (Mr. Burr) assumed the Chair.
  The SPEAKER pro tempore. The Committee will resume its sitting.

                          ____________________