[House Report 104-143]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-143
_______________________________________________________________________


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

                                _______


  June 15, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


   Mr. Callahan, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1868]
    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for Foreign Operations, Export Financing, and 
Related Programs, and for sundry independent agencies and 
corporations for the fiscal year ending September 30, 1996, and 
for other purposes.
                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                               Page

                                                            Bill Report
Summary of bill:
        Foreign Assistance in a Changing World.............
                                                                      3
        Committee Recommendations..........................
                                                                      8
Title I--Export and Investment Assistance:
        Export-Import Bank of the United States............     2
                                                                      9
        Overseas Private Investment Corporation............     4
                                                                      9
        Trade and Development Agency.......................     6
                                                                     10
        International Finance Corporation (IFC)............     7
                                                                     10
        Multilateral Investment Fund.......................     7
                                                                     11
Title II--Bilateral Economic Assistance:
        Development Assistance Fund........................     8
                                                                     11
        Child Survival and Disease Programs Fund...........     8
                                                                     12
        Development Fund for Africa........................    10
                                                                     22
        International Disaster Assistance..................    12
                                                                     23
        Debt Restructuring.................................    12
                                                                     24
        Micro and Small Enterprise Development Program.....    12
                                                                     24
        Housing and Other Credit Guaranty Program..........    13
                                                                     25
        Payment to the Foreign Service Retirement and 
            Disability Fund................................    13
                                                                     25
        AID Operating Expenses.............................    13
                                                                     25
        Operating Expenses of the Agency for International 
            Development--Office of the Inspector General...    14
                                                                     27
        Economic Support Fund..............................    15
                                                                     27
        International Fund for Ireland.....................    15
                                                                     30
        Assistance for Eastern Europe and the Baltics......    16
                                                                     30
        Assistance for the New Independent States of the 
            Former Soviet Union............................    17
                                                                     32
Independent Agencies:
        African Development Foundation.....................    19
                                                                     36
        Inter-American Foundation..........................    20
                                                                     36
        Peace Corps........................................    20
                                                                     36
State Department:
        International Narcotics Control....................    20
                                                                     37
        Migration and Refugee Assistance...................    21
                                                                     37
        Refugee Resettlement Assistance....................    21
                                                                     38
        Emergency Refugee and Migration Assistance Fund....    22
                                                                     39
        Anti-Terrorism Assistance..........................    22
                                                                     39
        Nonproliferation and Disarmament Fund..............    22
                                                                     39
Title III--Military Assistance:
        International Military Education and Training......    23
                                                                     40
        Foreign Military Financing Program.................    24
                                                                     41
        Special Defense Acquisition Fund...................
                                                                     47
        Peacekeeping Operations............................    28
                                                                     47
Title IV--Multilateral Economic Assistance:
        International Financial Institutions Summary.......
                                                                     47
        International Bank for Reconstruction and 
            Development (IBRD).............................    29
                                                                     49
        Global Environment Fund............................    29
                                                                     49
        International Development Association (IDA)........    30
                                                                     49
        Inter-American Development Bank (IDB)..............    30
                                                                     51
        Asian Development Fund (ADF).......................    30
                                                                     51
        African Development Fund (AFDF)....................
                                                                     52
        European Bank for Reconstruction and Development 
            (EBRD).........................................    31
                                                                     52
        North American Development Bank (NADBank)..........    32
                                                                     52
        Enhanced Structural Adjustment Facility............
                                                                     53
Department of State:
        International Organizations and Programs...........    32
                                                                     53
        Title V--General Provisions........................    34
                                                                     55
Miscellaneous Information:
        Comparison with budget resolution..................
                                                                     60
        Five-year projection of outlays....................
                                                                     61
        Assistance to State and local governments..........
                                                                     61
        Inflationary impact statement......................
                                                                     61
        Changes in the application of existing law.........
                                                                     61
        Compliance with rule XIII--clause 3................
                                                                     67
        Comparative Chart..................................
                                                                     70
                          Summary of the Bill

    The Committee has recommended foreign assistance and export 
financing funding at a level that is $2,799,604,666 below the 
Administration's fiscal year 1996 request in discretionary 
budget authority. The resulting total of $11,998,386,000 in 
discretionary appropriations is needed to meet the essential 
requirements of the United States and its President in 
conducting foreign policy and meeting urgent humanitarian needs 
abroad.
    The bill is $201,614,000 below the Committee's fiscal year 
1996 602(b) allocation for discretionary budget authority, but 
it consumes almost all of its allocation for outlays.
                 FOREIGN ASSISTANCE IN A CHANGING WORLD

                Retooling and Restructuring Foreign Aid

    The Committee notes that a revolutionary change has swept 
the globe resulting in the demise of communism, the continued 
collapse of authoritarianism, the rapid growth of vibrant 
democracies, and the convincing victory of the free market 
system. Recognizing the awesome scale of these changes, the 
Committee is convinced the world is at a pivotal juncture. The 
Committee believes that these changes mandate a full review of 
America's foreign policy priorities and a complementary 
retooling and restructuring of the principal instruments of 
this policy. The Committee also notes that the necessity to 
balance the federal budget by 2002 adds an additional 
imperative--the need to review the foreign operations budget 
with a careful eye to ensuring the most cost-effective use of 
these increasingly scarce dollars. The Committee further notes 
that while this year's bill accelerates this process, it by no 
means finishes it. The road ahead will be an arduous one and 
the decisions facing the Committee will be increasingly 
difficult. Finally, the Committee notes with special attention 
the seriousness with which it accepts these responsibilities. 
Our actions in the area of Foreign Operations are perhaps 
unique in that they directly affect not only the lives and 
security of all Americans but also that of billions of less 
fortunate human beings around the world.

  The Private Sector Road to Development: Promoting Durable Economic 
                                 Growth

    The Committee notes that today the old fashioned models of 
state-led development have been abandoned in much of Asia and 
Latin America, and are faltering in Africa. Now, after years of 
mixed signals, the World Bank looks to private investment as a 
key to economic growth in poorer nations. The Committee 
believes that genuine and sustainable development will be 
promoted far faster by the example and investment of real 
entrepreneurs than through the advice of development 
consultants or international conferences.
    The Committee further notes that private infrastructure 
projects in areas such as energy and telecommunications are the 
fastest growing sector of American business abroad. At the same 
time, the Committee highlights the fact that these are the very 
same areas of investment so coveted by underdeveloped countries 
because they form the essential underpinnings of any developed 
economy. Furthermore, the scale and scope of these projects are 
measured not in millions of dollars but rather in billions of 
dollars. It is obvious to the Committee that U.S. bilateral 
assistance will never be able to provide the resources 
necessary to sustain these critical building blocks for 21st 
century economies. The price is simply too high. The Committee 
expects that American business, working in cooperation with the 
government, can generate the expertise and dollars to make this 
kind of broad-based economic growth a reality. Furthermore, the 
Committee notes that this investment is a critical action 
forcing event which compels developing countries to adopt free 
market reforms in order to assure investor confidence--changes 
which are absolutely critical if these nations are to 
dramatically raise the living standards of their citizens.
    The Committee is convinced that if American companies are 
to help serve as the accelerators of development growth in the 
developing world, then the United States government must be a 
part of this effort. The Committee would note that these mega-
projects in the developing world involve a mix of private 
equity and financing plus insurance and guarantees from federal 
agencies. But neither the traditional exporters of manufactured 
goods nor the private infrastructure companies can compete 
overseas without limited support from the Overseas Private 
Investment Corporation (OPIC) and the Export-Import Bank.
    The Committee also notes that there are many near-term 
problems facing the developing world which still require 
immediate direct intervention and assistance by the United 
States through its more traditional humanitarian aid programs. 
But even here the Committee knows the help of the private 
sector, particularly private voluntary organizations, is 
essential. Furthermore, the Committee has not changed its view 
that the United States must continue to provide substantial 
assistance to the world's most needy, particularly its 
children. The Committee believes this must be one of its 
highest priorities.

                       Making Children A Priority

    The Committee strongly believes that even while the overall 
budget is being cut, there is one priority which must remain 
unshaken and that is the Committee's commitment to helping the 
world's neediest citizens, its children. The Committee firmly 
believes that child survival must not be threatened even as 
other parts of the foreign operations budget are being 
significantly reduced. As a result, funding levels for child 
survival in fiscal year 1996 are increased over last year's 
level. Equally important, the Committee took a further 
essential step and created a separate account for these 
activities, the Child Survival and Disease Programs Fund. This 
special account will be funded at $484,000,000 in fiscal year 
1996. The Committee's action focuses these valuable resources 
on a singular priority, one which enjoys the support of all 
Americans--ensuring child survival.

                  Foreign Aid in a Time of Transition

    The Committee is committed to three broad-based development 
goals: assistance that: 1) is focused on the private sector; 2) 
supports privatization and the enhancement of market-based 
economies; and, 3) directly supports child welfare, education, 
nutrition, and other humanitarian needs. At the same time, the 
Committee is convinced that the United States cannot support 
development assistance in every country that believes it has a 
claim to such assistance. The Committee believes AID must begin 
to withdraw from certain countries that have sufficient 
resources and support from other developed nations. The 
Committee also believes AID must continue the process of 
withdrawing AID missions from counties that have either 
advanced beyond the need for such assistance or refused to 
participate in market-based solutions to their problems.

                Sustaining the Middle East Peace Process

    The Committee notes that since 1985 United States taxpayers 
have committed at least $5.1 billion each year to our Camp 
David peace partners, Israel and Egypt. This investment 
reflects the Committee's ongoing commitment to these nations. 
The Committee also believes it has proven critical in fostering 
peace and security in the region. The Committee notes that the 
Gulf conflict in 1990 and 1991 illustrated dramatically how 
potentially volatile this region remains. The Committee 
strongly believes that the United States' active involvement 
and leadership in the Middle East remains critical to 
maintaining the peace in this important strategic region.
    The Committee's actions in this bill continue its tradition 
of strong support for Israel and the success of the Middle East 
peace process. The Committee strongly believes that the 
Administration's full request for $1.8 billion for military 
assistance and $1.2 billion for economic assistance should be 
provided in fiscal year 1996. The Committee stresses that 
Israel remains a key friend and ally in the Middle East and its 
unremitting resolve to achieve peaceful agreements with the 
Palestinians and its Arab neighbors warrants the United States' 
continued strong support.
    The Committee reaffirms its strong support for its close 
ally Egypt and recommends that Egypt receive the full 
Administration request of $1.3 billion for military assistance 
and $815 million in economic assistance. Egypt plays a critical 
role in the Middle East and remains a major contributor to the 
peace process.

       Helping the Survivors of Communism in Russia and Elsewhere

    The Committee notes that bipartisan support for aid to 
Russia enabled President Clinton to gain approval of a $2.5 
billion package of aid in 1993. The Committee is disappointed 
to note that while our aid program was an important recognition 
of the historic changes that had occurred in Russia, there is 
insufficient evidence to suggest that it has had a far-reaching 
effect on Russia's transition toward a free-market democracy. 
Furthermore, tensions in our relations with Russia are of great 
concern to the Committee because they reflect troubling trends 
in Russian behavior.
    Nonetheless, the Committee is convinced that our relations 
with Russia, Ukraine, and the nations of the Caucasus remain 
important. At the same time, it is clear to the Committee that 
it cannot indefinitely sustain the level of funding currently 
provided to Russia, nor should it. The Committee believes that 
United States assistance is of diminishing importance in 
determining Russia's destiny. More than many realized in 1993, 
Russia's future is in its own hands. As a result, the Committee 
is convinced that prudent reductions in aid to Russia are now 
possible without having a destabilizing effect on the 
government of Russia. Using the backlog of appropriations from 
the 1994 and 1995 appropriations acts, combined with the 
smaller amount of funds appropriated in this Act, the Committee 
believes the aid program to Russia will be able to support both 
official and private cooperation with Russian democrats and 
entrepreneurs, and to assist American investors and businessmen 
there.
    The Committee notes that other survivors of communism in 
Central and Eastern Europe are beginning to realize success in 
capitalism, and our aid programs are closing in Estonia and the 
Czech Republic. As a result, the Committee has reduced funds 
for Central and Eastern Europe in fiscal year 1996. The 
Committee reiterates its strong support for democracy in these 
nations.
   Supporting Common Security and International Military Cooperation

    The Committee notes that grant military assistance to our 
friends and allies has declined significantly over the past 
decade, reaching $3.151 billion in fiscal year 1995. Of this 
amount, Israel and Egypt accounted for $3.1 billion. Given the 
importance of maintaining our military aid commitments to 
Israel and Egypt while at the same time revitalizing the other 
elements of this program, the Committee expresses its continued 
support for security assistance as an important contribution to 
ensuring America's national security interests, particularly in 
strategic regions like the Middle East.
    The Committee also supports the President's request for 
funding for the Warsaw Initiative. As the Committee noted 
earlier, helping the survivors of communism through this 
critical transition period is a high priority for the 
Committee. The President's request to help the Central and East 
European states develop the means to participate productively 
in the European security environment is a positive and welcome 
initiative.

        Helping the Survivors of Natural and Man-made Disasters

    The Committee notes that humanitarian, disaster, and 
refugee assistance enjoy the strong support of a generous 
American people. The Committee has supported the President's 
budget request for each of these areas in the past, and 
continues to view these areas as high priorities.
    The Committee notes that refugee assistance overseas 
received $721 million in direct funding in fiscal 1995. The 
Committee further notes that in light of the current world 
situation, especially in Africa, it is unlikely that this 
funding level can be significantly reduced in the near term. 
Indeed, the possibility of major conflicts in the former 
Yugoslavia, central Africa, or central Asia could result in the 
need for significant additional resources for this objective.
    The separate international disaster assistance program was 
funded at a level of $170 million in fiscal year 1995. However, 
the Committee notes that this level of funding does not include 
the costs borne by the Defense Department in Haiti, Rwanda, and 
elsewhere. Again, the Committee sees little prospect that this 
program can be reduced significantly in the near term. 
Therefore, the Committee recommendation provides $200 million 
in fiscal year 1996 for this critical program and its 
lifesaving humanitarian activities. The Committee also notes 
that man-made disasters continue to ravage many countries and 
the human toll often dwarfs that of natural disasters. In this 
regard, the Committee believes the United States should lead an 
international effort to develop and implement a form of 
preventive diplomacy that can reduce the scale and extent of 
man-made disasters.

   Continued Participation in International Organizations that Serve 
                           American Interests

    The Committee believes the United States can utilize 
international organizations such as the United Nations to 
further American interests. But at the same time, the Committee 
notes that the budget realities, dictated by the Congress' 
commitment to a balanced budget, forces the Committee to make 
difficult choices. It is the view of the Committee that 
administrative costs in New York, Geneva, and Vienna should be 
a lower priority than those international programs that deal 
directly to the pressing needs of the world's less fortunate 
people. The Committee, therefore has reduced support for some 
international organizations, and recommends that the 
administration review our membership in others with an eye 
toward withdrawing from those which do not serve primary 
American interests.
    The Committee also believes that more needs to be done in 
the area of reform. The Committee serves notice that 
international organizations in which the United States 
participates and which enjoy substantial financial support from 
the United States will be the subject of careful review by the 
Committee. The Committee notes that difficult reductions are 
being made in the federal government here in the United States. 
Therefore the Committee will not turn a blind eye to bloated 
international bureaucracies which refuse to submit to reform. 
In light of this, the Committee believes U.S. participation in 
a number of international organizations should be the subject 
of critical examination and review.
    The Committee also notes that a number of international 
organizations already have proven track records of directly and 
indirectly promoting our national interests. As a result, the 
Committee believes that funding should be preserved for 
organizations such as the International Atomic Energy Agency, 
the World Meteorological Organization and others.

                         Looking to the Future

    The Committee is convinced that the Congress must begin now 
to tie foreign aid objectives to resources, and resources to 
policy. The reality that federal spending will be reduced in 
the years ahead dictates that the Committee husband foreign 
operations resources as carefully and wisely as possible. 
Therefore, the Committee believes that the essential task 
before the Congress in fiscal year 1996 is to systematically 
integrate budget resources into a sound policy with clearly 
identifiable and achievable goals. The Committee is further 
convinced that the United States can lead with fewer resources. 
The Committee strongly believes that no price tag need be 
placed on leadership.
    As noted earlier, the Committee notes with special emphasis 
that the budgetary resources for foreign aid are already 
extremely limited and are likely to be even more so in the 
future. From the Committee's perspective, this simply means it 
is now more imperative than ever that the Committee forge a 
strong bipartisan consenus which will shape how scarce 
resources can be most effectively used to help the world's less 
fortunate achieve the same level of prosperity and opportunity 
presently enjoyed by all Americans. This bill, which was 
reported with broad bipartisan support (although every member 
had strong reservations about individual items) marks an 
essential first step in that direction.

                       COMMITTEE RECOMMENDATIONS

    For export and investment assistance programs the Committee 
has recommended a total of $822,683,000. The subsidy 
appropriation for the Export Import Bank is $786,551,000 and 
the Trade and Development Agency is funded at $40,000,000. The 
Committee has provided $105,500,000 for the Overseas Private 
Investment Corporation.
    The Committee has recommended $980,549,000 of the 
$2,136,000,000 requested for the international financial 
institutions, including $50,000,000 for the Global Environment 
Facility. The overall reduction is $1,155,760,000 below this 
year's request.
    For development assistance, the Committee has recommended a 
total of $1,897,000,000 of which $484,000,000 is for child 
survival and disease prevention programs. For Africa, the 
Committee has included $528,000,000 in the Development Fund for 
Africa. The Committee has also included $200,000,000 for 
disasters worldwide. However, much of this assistance is likely 
to be used in Africa. The Committee has included $7,000,000 for 
debt restructuring for poor countries.
    The Committee has established a new account for child 
survival and disease programs. It is designed to ensure that 
there will not be reductions in these vital programs as the 
overall bilateral assistance program is constrained. The 
emphasis is on programs that directly affect younger children 
and on accelerating efforts to eradicate diseases that threaten 
younger children. The account does not include population 
funding or basic education, which will be funded through the 
Development Assistance Fund. It does provide for a grant to 
UNICEF at the current level of $100,000,000.
    The Committee has included a total of $595,000,000 in 
assistance to the new independent states of the former Soviet 
Union, and $324,000,000 for Eastern Europe and the Baltics.
    The Committee has recommended a total of $726,000,000 for 
refugee programs.
    For economic assistance under the Economic Support Fund the 
Committee has recommended a total of $2,326,700,000.
    The Committee has recommended $17,000,000 for Anti-
terrorism Assistance and $20,000,000 for the Non-Proliferation 
and Disarmament Fund.
    For Foreign Military Financing, the Committee has 
recommended a grant program of $3,211,279,000 and a loan 
subsidy appropriation of $64,400,000. The FMF loan value 
supported by the loan subsidy appropriation is limited to 
$544,000,000.

               TITLE I--EXPORT AND INVESTMENT ASSISTANCE

                Export-Import Bank of the United States

                         subsidy appropriation
Fiscal year 1995 level..................................    $786,551,000
Fiscal year 1996 request................................     823,000,000
Committee recommendation................................     786,551,000
                        administrative expenses
Fiscal year 1995 level..................................     $45,228,000
Fiscal year 1996 request................................      47,000,000
Committee recommendation................................      45,228,000

    The Committee has recommended a subsidy appropriation for 
the Export-Import Bank of $786,551,000 and an appropriation of 
$45,228,000 for administrative expenses.
    The Committee has continued prior year language limiting 
the export of nuclear technology or fuel to certain countries. 
The Committee has included language making possible Export-
Import Bank activity in Eastern Europe and the Baltics, and the 
Committee has required the notification of all tied-aid or 
mixed credit financing by the Bank.
    The Committee provided for the request level of 
$100,000,000 for a tied-aid ``war chest''. These funds, if not 
used for tied-aid purposes, may be used to support loans.
    The Committee commends the Eximbank for moving to 
facilitate American private sector infrastructure projects 
abroad. This is the fastest growing export sector in the mid-
1990s, and the Bank, together with Overseas Private Investment 
Corporation and the other programs in this title, has an 
important role to play if it is willing to change the way it 
does business.
    With the budgetary outlook indicating that the Committee 
will be hard pressed to sustain appropriations for the Eximbank 
at current levels in future years, the Bank management is 
encouraged to begin consulting with the Committee regarding its 
plans for overcoming the likely gap between demand and federal 
resources in the near future.

                Overseas Private Investment Corporation

                         subsidy appropriation
Fiscal year 1995 level..................................     $33,944,000
Fiscal year 1996 request................................      79,000,000
Committee recommendation................................      79,000,000
                           operating expenses
Fiscal year 1995 level..................................      $7,933,000
Fiscal year 1996 request................................      16,000,000
Committee recommendation................................      15,500,000
                   non-credit administrative expenses
Fiscal year 1995 level..................................     $16,389,000
Fiscal year 1996 request................................      11,000,000
Committee recommendation................................      11,000,000

    The Committee has recommended $79,000,000 for the subsidy 
appropriation for the OPIC direct and guaranteed loan credit 
programs and has recommended $26,500,000 for operating 
expenses.
    The Committee has continued prior year language permitting 
noncredit expenditures and addressing representation expenses 
and availability of funds.
    The Committee recognizes the ongoing public debate about 
the future of elements of the export and investment assistance 
programs funded in title I. Although the Committee recommends 
no immediate change in the status of the affected agencies, 
other than the Trade and Development Agency, it directs the 
Overseas Private Investment Corporation to report to it no 
later than November 10, 1995 on the viability of a 
privatization program for OPIC's insurance programs.
    OPIC and the Export-Import Bank continue to be vital 
supports for the export sectors which sustain America's current 
economic growth, but both institutions should focus on 
activities that cannot be undertaken by the private sector.

                      Trade and Development Agency
Fiscal year 1995 level..................................     $44,986,000
Fiscal year 1996 request................................      67,000,000
Committee recommendation................................      40,000,000

    The Committee has recommended funding for the Trade and 
Development Agency at the level of $40,000,000.
    The Committee believes that this export agency has made 
significant contributions to non-traditional American exports 
in the service sectors such as consulting engineering. It can 
not, however, survive in an era of declining overall budgets 
unless it moves sharply away from its current status as an all-
grant agency. It needs to recoup some or all of the costs of 
its tax-financed assistance, especially when large and 
profitable companies benefit TDA from grants.
    To assist TDA, the Committee has included bill language 
which would allow it to accept reimbursements from agencies for 
the costs of grants. Earlier, the agency indicated that a plan 
to encourage limited reimbursement could be expected at the 
beginning of May, 1995.

                   International Finance Corporation
Fiscal year 1995 level..................................     $68,743,000
Fiscal year 1996 request................................      67,556,000
Committee recommendation................................      67,550,000

    The Committee recommends $67,550,000 for the International 
Finance Corporation, slightly less than the request, and 
$1,193,000 less than the 1996 level.
    The Committee continues to be concerned about the negative 
environmental impacts of certain IFC investments and financing 
operations. The Committee reiterates that the U.S. executive 
director and Treasury Department officials should use their 
influence to bring IFC into compliance with section 521 of P.L. 
101-240 (known as the Pelosi Amendment).

                      Multilateral Investment Fund
Fiscal year 1995 level..................................     $75,000,000
Fiscal year 1996 request................................     100,000,000
Committee recommendation................................      70,000,000

    The Committee regrets that it is unable to fund the 
Administration's full request of $100,000,000 for the Inter-
American Development Bank's Multilateral Investment Fund (MIF). 
The Committee suggests that the Treasury Department explain to 
other donors that the reduction was undertaken solely for 
budgetary reasons and not because of lack of support of the 
MIF.
    The Committee notes that the U.S. contribution is matched 
from other donors, enabling the United States to leverage its 
contribution to the MIF almost 2 to 1 into a multi-billion 
dollar pool of funds that are used to finance critical projects 
throughout Latin America and the Caribbean.
    Through loans and small grants and equity participation, 
the MIF targets those individuals and groups in Latin America 
that find it hard to become productively engaged in emerging 
market economies. The MIF typically works directly with the 
bottom half of the private sector--small business associations, 
financial intermediaries, and youth training organizations. The 
MIF ensures that these groups are empowered to participate in 
the region's economic growth. The MIF provides a needed balance 
to other donor programs that are directed at national or state 
facilities or large businesses.
                TITLE II--BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

                  Agency for International Development

                         Development Assistance

    The Committee, in order to give the President more 
flexibility, has recommended funding three separate accounts 
for development assistance programs currently administered by 
the Agency for International Development. This is the same 
number of accounts that was provided in the fiscal year 1995 
appropriations for Foreign Operations. The bill provides for an 
overall Development Assistance Fund, an account for child 
survival and disease prevention and treatment activities, and a 
Development Fund for Africa.

                Child Survival and Disease Programs Fund
Fiscal year 1995 level..................................              $0
Fiscal year 1996 request................................               0
Committee recommendation................................     484,000,000

    The Committee has recommended $484,000,000 for a new 
account, ``Child Survival and Disease Programs Fund''. It 
includes bilateral programs intended to reduce infant mortality 
and improve the health and nutrition of children, especially in 
the poorest nations, as well as targeted global programs to end 
infectious diseases such as polio, tuberculosis, HIV/AIDS and 
measles. It also includes $100,000,000 for the annual United 
States contribution to the United Nations Children's Fund 
(UNICEF). It does not include basic education projects.
    Funding for this account is derived from child survival 
programs and adult disease programs previously provided in the 
Development Assistance Fund ($189,000,000); the Development 
Fund for Africa ($131,000,000); the Economic Support Fund 
($23,000,000); Assistance for Eastern Europe and the Baltic 
States ($1,000,000); Assistance for the New Independent States 
of the Former Soviet Union ($15,000,000); and the UNICEF 
portion of International Organizations and Programs 
($100,000,000). In addition, a program increase of $25,000,000 
is provided. Priority should be given to Central America and 
sub-Saharan Africa in the allocation of the program increase.
    Funding for child survival activities and for non-child 
disease programs would be allocated as follows:

Child survival..........................................    $300,000,000
    (Remains in disaster assistance account)............   (-30,000,000)
    (Remains in ESF for Egypt)..........................   (-16,000,000)
Subtotal, child survival in this account................     254,000,000
Non-child diseases......................................     130,000,000
Grant to UNICEF.........................................     100,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total in this account.............................     484,000,000
                    ========================================================
                    ____________________________________________________
      Total in all accounts.............................     530,000,000

    Funds in this account may be used for activities in the New 
Independent States of the Soviet Union, Eastern and Central 
Europe, sub-Saharan Africa, as well as other developing 
countries. Funds would not be used for noninfectious adult 
diseases.
    Of the funds provided in this account, $100,000,000 would 
be provided as a contribution in grant form to the United 
Nations Children's Fund. However, this does not preclude the 
Agency for International Development from providing additional 
funding for specific UNICEF projects as may be appropriate.
    The Committee supports increasing the proportion of child 
survival funding going to United States private voluntary 
organizations and indigenous non-governmental organizations.
    The Committee intends that child survival funds in this 
account be used for traditional child survival programs.

             vitamin a, iodine and micronutrient deficiency

    The Committee supports continuation of programs for vitamin 
A deficiency, iodine deficiency and other micro-nutrient 
deficiencies and supports maintaining the program at the amount 
recommended in last year's report--$25,000,000 of which up to 
$13,000,000 was for vitamin A deficiency.

                        vitamin c fortification

    Last year's report requested that AID increase vitamin C 
fortification levels as part of the Public Law 480 Food Aid 
Program. A report was submitted by AID on the cost of 
fortifying commodities with vitamin C. While the study 
indicated that vitamin C may lose stability over time and in 
the presence of moisture, the results appear to be inconclusive 
as they affect Corn-Soy-Blend (CSB) and Wheat-Soy-Blend (WSB), 
the principal commodities that are fortified. Other studies 
have shown that new mothers and infants can greatly improve 
their health through consumption of vitamin C.
    The Committee recommends that AID perform a pilot program, 
using up to $500,000 from the funds provided in this account, 
involving the fortification of commodities with vitamin C, and 
expects that the agency will report back on the results of that 
pilot program by April 1, 1996.

                          eradication of polio

    The Committee recommendation includes up to $20,000,000 in 
funding for a program to prevent the spread of polio. Use of 
the funds should include the purchase and delivery of vaccines, 
and the development of the infrastructure necessary to 
implement the program.

                              tuberculosis

    The Committee continues to be extremely concerned about the 
global tuberculosis epidemic. Worldwide there are over 
8,000,000 new cases of active tuberculosis each year, and as 
many as 3,000,000 deaths per year. The number of new cases is 
projected to increase to 11,900,000 cases per year by 2005. By 
itself, tuberculosis is the largest cause of death from a 
single infectious agent, and is responsible for one-quarter of 
the preventable deaths in the world.
    The Committee notes that tuberculosis is preventable and 
easily cured. Modern tuberculosis treatments are among the most 
cost effective health interventions according to the World 
Bank. In addition, the Committee notes that the United States 
is also experiencing a deadly and costly rise in TB prevalence.
    The Committee also recommends that AID strengthen its own 
program related to TB and coordinate its program with AIDS and 
other related programs.
                      AIDS prevention and control

    The global HIV/AIDS pandemic is already having profound 
economic, political and social consequences in many nations. 
The World Health Organization (WHO) estimates that 19,500,000 
people have been infected with HIV to date, including 1,500,000 
children. Forty million people are likely to be infected by the 
year 2000, with approximately 90% of these cases occurring in 
the developing world. Half of these cases are expected to occur 
among women.
    The Committee supports efforts by the United Nations to 
increase coordination and consolidation of its AIDS activities 
via the creation of UNAIDS, the joint and co-sponsored program 
on HIV/AIDS.
    The Committee urges the continuation of the AIDS Prevention 
and Control Program and recommends that $121,000,000 be 
provided through this account for these activities, including 
support at the current level for the World Health 
Organization's AIDS programs and the UNAIDS program housed at 
the World Health Organization.
    Within this funding, support for non-governmental and 
private voluntary organizations should be given priority. AID 
is also urged to support the global initiatives agreed upon at 
the 1994 AIDS Summit particularly those relating to women, 
NGOs, and microbicide development.

                          infectious diseases

    The Committee supports the continuing work of the Center 
for Disease Control, Army and Navy facilities, and AID in the 
area of infectious diseases. It is especially concerned about 
the threat posed by emerging infections to American citizens 
and members of our armed services. For instance, it is aware of 
work being performed by the Gorgas Memorial Institute in the 
development of collaborative plans for regional surveillance of 
food- and waterborne vibrios (cholera), dengue and other 
infections that threaten the United States by inadvertent 
importation from the Caribbean and Central America. It is the 
Committee's recommendation that up to $350,000 be available for 
such a system, including the establishment of a cost-effective 
surveillance network involving several domestic and regional 
institutions.

                           displaced children

    The Committee continues to support programs for displaced 
children and urges the Agency for International Development to 
adequately fund this program in fiscal year 1996. The Committee 
urges AID to make the best effort to provide funding for the 
overall program at least at the $10,000,000 level with 
$2,000,000 for programs for street children.
                          physicians for peace

    The Committee supports such nonprofit, humanitarian 
organizations such as Physicians for Peace, who through multi-
national and multi-disciplinary teams of volunteer medical 
professionals work in partnership with their in-country 
colleagues to provide continuing medical education and free 
medical service.

                             blind children

    The Committee supports funding to provide operations for 
blind children. This program was funded last year at $1,000,000 
and is being implemented through private voluntary 
organizations.
    There are more than 2,000,000 blind children in the world, 
of whom 80 percent live in impoverished countries in Africa and 
Asia. Helen Keller International estimates that more than 35 
percent of the cases of blindness could be avoided with the 
provision of the right combination of technology, surgical 
expertise and public health services.
    Because of limited resources and health services, only a 
small number of restorative surgical interventions are 
performed. In a sense, this a false economy since the blind 
often need public funding for the remainder of their lives for 
training and education and even lifetime economic support.
    This is the fourth year that the Committee has recommended 
a program targeted at blind children. It is the Committee's 
intention that the program reach a segment of the developing 
world that is not now served by programs of prevention and 
long-term care.

                      Development Assistance Fund
Fiscal year 1995 level..................................    $840,500,000
Fiscal year 1996 request................................   1,300,000,000
Committee recommendation................................     669,000,000

    The Committee has recommended $669,000,000 for a general 
account for development assistance. The amount recommended is 
$631,000,000 less than the amount requested by the 
Administration and $171,500,000 less than the amount provided 
in fiscal year 1995. Funding in this account includes 
activities for agriculture, rural development, population, 
basic education, environment, energy, science and technology 
and other programs related to longer-term development.
    The Committee recommendation moves $189,000,000 for child 
survival activities and disease prevention programs from this 
account to the new ``Child Survival and Disease Programs 
Fund''. It also includes activities that were funded in a 
separate population account in 1995.
    In addition, the Committee recommendation includes bill 
language to provide for discretionary transfer authority to 
allow up to $15,500,000 to be transferred from this account and 
from ``Development Fund for Africa'' to ``Debt restructuring''; 
and up to $15,000,000 from the same accounts to ``International 
Organizations and Programs'' for a contribution to the 
International Fund for Agricultural Development (IFAD). Such 
transfers, if proposed, would be subject to existing 
reprogramming procedures.
    The Committee is aware that reduced funding for the 
Development Assistance Fund will require AID to target limited 
resources more effectively. For instance, the Committee notes 
that major funding is proposed for India in the 1996 budget 
request. The administration proposes to increase funding for 
development assistance for India from $38,714,000 in 1995 to 
$70,433,000 in 1996. Only $9,000,000 in development assistance 
was provided for Pakistan during this same period due to 
legislative provisions. The proposed level for India may not be 
sustainable given the budget reductions recommended by the 
Committee for this account.

                restrictions on use of population funds

    The Committee has continued prior year language in the bill 
that requires that none of the funds appropriated in this bill 
or any unobligated balances be made available to any 
organization or program which, as determined by the President, 
supports and participates in the management of a program of 
coercive abortion or involuntary sterilization. The bill 
language also states that funds for the Development Assistance 
Fund cannot 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. Further, the language indicates that in 
order to reduce reliance on abortions in developing countries, 
population funds shall be available only to voluntary family 
planning projects which offer, either directly or through 
referral, information about access to a broad range of family 
planning methods and services. An additional provision in the 
bill requires that in awarding grants for natural family 
planning under Section 104 of the Foreign Assistance Act, no 
applicant shall be discriminated against because of such 
applicant's religious or conscientious commitment to offer only 
natural family planning. However, all such applicants shall 
comply with the requirements of informed consent included in 
the bill.
    The Committee has also continued prior year language that 
states that nothing in the Development Assistance Fund portion 
of the bill is to alter any existing statutory prohibitions 
against abortion which are included under section 104 of the 
Foreign Assistance Act.

                    Latin America and the Caribbean

    The Committee is concerned that the reduction being 
recommended in the global Development Assistance Fund, in order 
to remain within the budget allocation, may accelerate the 
decline in United States economic cooperation with Latin 
America and the Caribbean. The Western Hemisphere is no less 
important than Africa, which receives bilateral aid in a 
separate account, or any other region, although its needs and 
accomplishments are unique.
    The Committee directs that AID report within sixty days of 
enactment of this Act its strategy for Latin America and the 
Caribbean, specifying in detail the steps taken to restore to 
other LAC partners the funds that were diverted to support the 
restoration of President Aristide in Haiti.

                              El Salvador
    The 1992 Peace Accords, negotiated with the support of the 
United States, brought an end to twelve years of war in El 
Salvador. The Committee believes that the implementation of 
those accords is critical to peace and post-war development in 
El Salvador.
    The Committee commends the people and the government of El 
Salvador for conducting and participating in peaceful and 
historic elections on March 20, 1994 and April 24, 1994. The 
Committee commends the ex-combatants for ending the twelve-year 
civil war and working together for a more peaceful and 
democratic future. The Committee notes the importance of the 
elections as a critical step in the implementation of the Peace 
Accords. The Committee urges the Administration to support the 
continued development of democracy, economic growth, and 
stability in El Salvador.
    The reintegration of ex-combatants from both sides of the 
conflict is a key element of the Peace Accords, and vital to 
the political stability of the country. The Committee urges AID 
to continue to support and work closely with programs for the 
reintegration of former combatants into civilian life, and to 
focus on assisting the government in planning these programs, 
and in overcoming the political and administrative difficulties 
which have delayed reintegration programs.
    The Committee commends AID for its efforts to improve its 
working relationships with NGOs in El Salvador. As in the past, 
the Committee expects that AID shall consult with all 
participants in the political and economic process, including 
NGOs, on the uses of assistance, and shall ensure that programs 
are implemented which address the basic needs of the poor. 
Funding channels should be selected to ensure that benefits 
reach the poor in a timely fashion; that sustainability is 
achieved through participation of beneficiaries in program 
identification, design, implementation, and evaluation; and 
that United States aid promotes pluralism.

                                Jamaica

    The Committee has a special interest in Jamaica. United 
States development assistance in Jamaica has led to significant 
improvements in health care delivery, the promotion of small 
enterprises, and the emergence of a private sector-based 
economy. The Committee is convinced that continued assistance 
to Jamaica, despite the budgetary situation, through bilateral 
aid, multilateral support, and debt reduction programs, will 
pay demonstrable dividends to the United States. Jamaica is 
establishing the basis for a trade-based economic policy that 
is setting a model for other Caribbean countries. Until that 
trade-based economy is established, some additional aid is 
needed, but graduation from aid remains a medium-term goal.
    The Committee urges AID to concentrate its fiscal 1996 
efforts in Jamaica, rather than in Hispaniola. Continued 
assistance to Jamaica and U.S. support for Jamaica at the 
multilateral institutions is important not only to help Jamaica 
sustain its important economic reform programs, but also to 
demonstrate that Jamaica remains the most effective partner of 
the United States in the Caribbean.

                           Dairy Development

    The Committee places a high priority on dairy development, 
and urges the Agency for International Development to make its 
best efforts to continue funding for this program at the 
current level. Throughout Central and Eastern Europe and 
Russia, cooperative programs have been carried out to support 
the emergency of member-owned dairy cooperatives, new 
collection and private extension systems for small farmers, and 
higher quality dairy products for better nutrition. The program 
has resulted in expanded exports of United States dairy 
technologies and investments in the Polish feed and dairy 
sectors.

          Private and Voluntary Organizations Funding Sources

    The Committee has continued prior year language that 
requires that private voluntary organizations obtain not less 
than 20 percent of their total funding from sources other than 
the United States Government.
    In addition, the Committee has recommended new language 
stating that support for private voluntary organizations should 
be made available at a level equivalent to that provided in 
fiscal year 1995. United States private voluntary organizations 
and cooperatives embody American values and humanitarian 
concerns abroad. The Committee received testimony regarding the 
important work being performed by private and voluntary 
organizations throughout the developing world, and strongly 
urges the Agency for International Development to increase its 
reliance on such organizations in the delivery of development 
assistance.

                            higher education

    The Committee notes that over the years a number of quality 
educational institutions have received both development and 
Economic Support Fund assistance, including the American 
University of Beirut, the Feinberg Graduate School of the 
Weizmann Institute, the Hadassah Medical Organization in 
Israel, the Lebanese American University, and the Beirut 
University College. The Committee recommends that best efforts 
be made to continue assistance for institutions of this nature, 
with the highest priority assigned to those lacking alternative 
sources of funding.
    The Committee also commends AID for establishing a 
Sustainable Development Scholarship Program in Nicaragua, and 
urges continuing support for this project. This program will 
provide scholarships for study in selected disciplines related 
to Nicaragua's development needs, and is receiving $700,000 
during 1995.
    The Committee also supports a proposal to establish an 
electronic interconnection using the internet and satellite 
networks involving colleges and universities in Latin America 
for the purpose of sharing educational resources, teaching 
courses via satellite and internet, and sharing in common 
research projects.
    In addition, the Committee recommends that AID continue a 
focus on using community colleges and Hispanic Serving 
Institutions (HSIs) to deliver vocational and occupational 
education and training as part of development assistance, and 
to report to the Committee on its efforts in this regard.

                          biodiversity and AID

    The Committee reaffirms its commitment to the conservation 
of biodiversity and the protection of tropical forests, and 
requests that AID provide as high a level of funding as 
possible for these efforts. AID should remain active in the 
areas of greatest biological significance, even if this entails 
work in close-out or non-presence countries like Papua New 
Guinea.

                             parks in peril

    The Committee remains committed to the existing AID program 
that is protecting parks covering 18,000,000 acres in Latin 
America. The program has made measurable progress in turning 
``paper parks'' into genuine protected areas with full-time 
personnel and long-term management plans. Funding for this 
program has stimulated significant private sector matching 
contributions, both in the United States and overseas. The 
Committee encourages this trend, as the budget situation makes 
long-term federal funding problematic.

                      neotropical migratory birds

    The Committee recommends that fiscal year 1996 funds be 
provided to the National Fish and Wildlife Foundation for 
continued implementation of the Neotropical forest and 
grassland migratory bird conservation initiative. The decline 
in populations of Neotropical migratory birds has been linked 
to habitat loss and degradation in Central America and the 
Caribbean. Scientific evidence now indicates the loss of these 
birds could pose significant domestic economic and 
environmental problems. The Committee believes that this 
program is essential to the protection of these species and 
urges AID to continue to work closely with other Federal 
agencies and parties to the interagency memorandum of 
understanding to approve projects funded by this initiative.

              Energy and Environment Technology Promotion

    The Committee again recommends that AID continue funding 
for projects which promote power sector efficiency, renewable 
energy, and energy efficiency, recognizing U.S. industrial 
leadership in these areas.
    The projects should be developed and carried out in 
collaboration with United States industry and should be located 
in countries with the greatest potential for early success, 
without regard for the presence or absence of an AID field 
mission. They should be undertaken in collaboration with other 
federal agencies, including the Departments of Energy and 
Commerce, or their successors. Included in these efforts should 
be project preparation, innovative project financing, trade and 
reverse trade missions, training, technology transfer and 
collaboration.
    Up to $25,000,000 should be allocated to this program, and 
preference should be given to projects that promote the 
transfer of U.S. energy and environmental technology by opening 
new markets for U.S. industry, by leveraging limited federal 
resources through joint ventures, and by fostering policy and 
institutional reform in developing countries which facilitate 
the expansion of the role of the private sector in power 
generation and distribution.

                          Women in Development

    The Committee recognizes that women in the developing world 
play critical roles in their national economies. They grow the 
majority of food for family consumption and constitute over 
one-third of the agriculture labor force, up to 75 percent of 
informal sector workers, and a growing proportion of formal 
sector workers. Women head 20 to 40 percent of households. They 
provide roughly three quarters of their family's primary health 
care, and manage the household's sanitation and use of natural 
resources. Yet, women are the poorest, least educated, and 
unhealthiest population in the world. For every 100 literate 
males in the developing world, there are only 72 literate 
females. Maternal mortality rates are estimated at half a 
million women, 99 percent of them in developing countries. The 
Committee recommends an increase in programs to acknowledge the 
central goal of empowering women through improvements in their 
economic, health, social, and legal status. This includes 
women's health and other projects through NIS assistance 
programs.
    In designing projects and programs to carry out this 
provision, the Committee urges AID and agency contractors to 
identify and take advantage of opportunities to assist women in 
activities that are of critical significance to their self-
reliance and development. The Committee recommends that the 
Agency for International Development, the United States 
Executive Directors to the multilateral development banks and 
the United States Ambassador to the United Nations to work 
toward these goals.

         other issues relating to women in developing countries

    Literacy and education are linked to improvements in 
women's employment, the adoption of innovations in agriculture, 
better health and nutrition in children, and lower fertility 
rates. AID should allocate a significant percentage of its 
education funds to literacy programs where the returns to 
girls' education are high. The Committee continues to monitor 
the level of women's involvement in AID's participant education 
and training programs.
    The Committee notes that women in developing countries with 
personal incomes or higher family incomes have fewer offspring 
than those who have no personal income or whose family incomes 
are stagnant. This fact should be incorporated into objectives 
relating to population and poverty. Once again, the Committee 
urges AID to concentrate on involving women at all levels in 
the planning and implementation of population and health 
programs.
    The Committee also encourages programs that integrate such 
programs with health services for women, improve the quality of 
comprehensive health and other services to the very poor, 
migrants, refugees, unmarried women, and adolescents, and focus 
a greater proportion of AIDS-related assistance on reducing the 
risk of HIV infection for women, whose infection rates are 
rapidly rising.

                      development of credit unions

    The Committee supports the continuation of a program to 
develop credit unions overseas. This funding would include up 
to $600,000 for a core grant, and up to $5,000,000 for country-
specific project grants. This is an important component of the 
effort to promote open and free markets around the world.
                            microenterprise

    The Committee commends AID for reorganizing and reforming 
its microenterprise program to focus more resources on the 
poorest of the working poor, and urges that as high a level as 
possible be maintained for this program. In addition, the 
Committee urges AID to continue to provide central funding 
mechanisms which directly support nongovernmental 
organizations. Attention should also be given to non-financial 
services such as management training, productive technologies, 
and technical assistance which enable micro- and small 
entrepreneurs to make better use of credit and better manage 
their enterprises.

                        sustainable agriculture

    The Committee continues to emphasize the importance of 
support for sustainable agriculture. Finding and implementing 
sustainable, environmentally safe, agricultural techniques and 
crops is critical to providing long-term indigenous food 
security in Africa and around the world. Support for 
agricultural advances can reduce migrations and excessive 
urbanization, alleviate poverty, and have many associated 
benefits overseas, as well as at home. The Committee expects 
AID to place significant emphasis on promoting the adoption of 
sustainable agricultural techniques and crops, including work 
through such organizations as the Arid Lands Consortium. The 
Committee has also included discretionary transfer language to 
allow the Administration to transfer up to $15,000,000 from 
this account and from ``Development Fund for Africa'' to 
``International Organizations and Programs'' for a grant to the 
International Fund for Agricultural Development (IFAD) for 
these and related purposes.
    Discretionary transfer authority to provide funding for 
IFAD is recommended in anticipation of the successful 
conclusion of the Fourth Replenishment and a United States 
pledge toward a Fourth Replenishment. In recommending these 
funds, the Committee notes the administration's positive 
assessment of IFAD. The Administration indicates that IFAD 
merits the continuation of strong United States support. It 
remains on the cutting edge of sustainable rural poverty 
alleviation, and it gained endorsement from a noted group of 
independent experts in 1994. IFAD uses donor resources 
efficiently, and its projects directly address the needs of the 
poorest.

             rehabilitation services for victims of torture

    The Committee continues to urge AID to provide assistance 
for rehabilitation services for victims of governmental 
torture. Such services would include medical, psychological and 
social services for victims and their families as well as legal 
protection to victims and their care providers.
    The Committee believes that, in identifying countries for 
such services, AID should give special consideration to 
countries cited in the Department of State's annual Country 
Reports on Human Rights Practices. AID should consider 
assistance for existing rehabilitation centers and help for the 
establishment of new centers.

                           regional programs

    The Committee believes that AID should be able to carry out 
regional programs in countries where AID has no formal mission. 
In a number of cases, private sector, environmental, AIDS and 
other programs can be carried out without the presence of a 
mission in a country, and many of these programs should 
continue.

                      Development Fund for Africa
Fiscal year 1995 level..................................    $802,000,000
Fiscal year 1996 request................................     802,000,000
Committee recommendation................................     528,000,000

    The Committee recommends $528,000,000 for development 
assistance activities in sub-Saharan Africa, a decrease of 
$274,000,000 from the amount requested by the Administration 
and from the level provided in fiscal year 1995.
    The Committee recommendation moves $131,000,000 for child 
survival activities and disease prevention programs from this 
account to the new ``Child Survival and Disease Programs 
Fund''.
    Funding provided under this account for fiscal year 1996 is 
to be used to implement the ninth full year of the Development 
Fund for Africa (DFA). Recognizing that sub-Saharan African 
nations face unique development challenges, the DFA was created 
to permit the Agency for International Development to use 
development assistance resources in a more flexible fashion.
    The shift of resources to the new account for child 
survival activities does not indicate a lessening of interest 
on the part of the Committee on activities in Africa. The 
Committee expects that a significant portion of the resources 
provided for the new account will be committed to programs in 
sub-Saharan Africa, and expects AID to provide close 
coordination between activities funded in that account and the 
Development Fund for Africa.
    In addition, the Committee expects that AID should focus 
its limited resources on a smaller number of countries where 
the governments are committed to development policies that will 
promote equitable and sustainable economic growth. The Greater 
Horn of Africa initiative is a good example of such an effort.
    The Committee renews its request to reestablish the 
consultative process with Congress which was intended to be 
part of the flexibility provided when the Development Fund for 
Africa was created.

                                 zaire

    The Committee has continued a provision in the bill which 
prohibits development assistance funds from going to the 
Government of Zaire.

                        south Africa initiative

    The Committee supports the continuation of transitional 
assistance to South Africa. The Committee notes that the 
assistance package is intended to provide an infusion of 
resources to enable the new government to consolidate its new 
democracy and to promote full participation of the 
disadvantaged majority in the economic and social development 
of South Africa. Given other needs in sub-Saharan Africa, and 
South Africa's potential of attaining a strong and self-
sustaining economy capable of meeting the needs of the South 
African population, the Committee understands that the AID 
grant portion of the enhanced assistance package to South 
Africa should be considered transitional, rather than long-
term, just as aid that is being provided to the former Soviet 
Union, Eastern Europe and other countries that are now 
receiving United States foreign assistance is transitional.

                   greater horn of Africa initiative

    The Committee supports the Greater Horn of Africa 
initiative, which is designed to alleviate the food insecurity 
that has plagued that portion of the continent. It is designed 
to provide a coordinated, rational approach to providing food 
aid and promoting economic development in the region in order 
to prevent the crises of the past. The Committee particularly 
recommends active support for those countries that are taking 
necessary steps to help themselves, such as Ethiopia, Uganda, 
and Eritrea.

                                 rwanda

    The Committee believes that the recent tragedy in Rwanda is 
symptomatic of the many deep-seated social, ethnic and economic 
problems facing Africa today. It is the Committee's view that 
AID should identify assistance for Rwanda as one of its highest 
priorities in fiscal year 1996. AID efforts in Rwanda should 
focus on democratic institution building, effective and fair 
judicial systems, and the development of a broad-based 
political system which is characterized by political and civil 
rights and guarantees for all of Rwanda's people regardless of 
their ethnic background. The Committee also believes that AID 
should play the key role in the coordination of aid efforts by 
other international donors in order to ensure that scarce aid 
resources are effectively utilized.

                   International Disaster Assistance
Fiscal year 1995 level..................................    $169,998,000
Fiscal year 1996 request................................     200,000,000
Committee recomendation.................................     200,000,000

    The Committee has recommended $200,000,000 for the 
International Disaster Assistance account, the amount requested 
by the Administration and an increase of $30,002,000 over the 
amount provided in fiscal year 1995. A major reason for the 
increase is the shift of $30,000,000 from the Department of 
Defense to AID for assistance to the Kurdish refugees in 
Northern Iraq. The Committee believes that in light of the 
emergencies occurring in the former Yugoslavia, Somalia, 
Rwanda, Sudan and the drought in the Horn of Africa an increase 
in International Disaster Assistance is more than warranted.

                         transition initiative

    The Committee continues to support the transition 
initiative, which is funded at a level of $25,000,000 pursuant 
to the request. However, the Committee requests that AID report 
by May 1, 1996, on the results of the first two years of this 
program and on specific programs and projects that have been 
funded under this initiative.

                   assistance for sub-saharan africa

    The Committee continues to recommend that $100,000,000 in 
disaster assistance funds be used in sub-Saharan Africa, in 
such countries as the Sudan.

                           Debt Restructuring
Fiscal year 1995 level..................................      $7,000,000
Fiscal year 1996 request................................      25,500,000
Committee recommendation................................       7,000,000

    The Committee has provided $7,000,000 for debt 
restructuring for fiscal year 1996. This is the same as the 
1995 level, but $18,500,000 below the request.
    While the full budget request has not been provided for 
this activity, the Committee has provided discretionary 
transfer authority to allow for up to $15,500,000 to be 
transferred to this account from ``Development Assistance 
Fund'' and ``Development Fund for Africa.'' The Committee 
believes that debt restructuring is a component of development 
assistance, and that it is appropriate to provide the 
Administration with the flexibility to shift funds from the 
traditional development assistance accounts for this purpose.
    The Committee has included bill language to allow for the 
use of funds for the cost of selling, reducing, or canceling 
amounts, through debt buybacks and swaps, owed to the United 
States by eligible Latin American and Caribbean countries. The 
Committee urges that priority be given to such debt 
restructuring.
    The Committee is concerned that at the same time debt is 
forgiven for a developing country, an additional debt burden 
not be placed on such nations. Therefore, the Committee expects 
a report on the expected new debt that would be assumed by any 
country proposed for debt restructuring, and the reasons why 
such additional debt is desirable.

             Micro and Small Enterprise Development Program

                         subsidy appropriations
1995 enacted............................................      $1,500,000
1996 budget request.....................................      12,000,000
Committee recommendation................................       1,500,000
                           operating expenses
1995 enacted............................................        $500,000
1996 budget request.....................................       2,500,000
Committee recommendation................................         500,000
                  Estimated level of guaranteed loans
1995 enacted............................................   ($18,564,000)
1996 budget request.....................................   (138,880,000)
Committee recommendation................................    (16,700,000)

    The Committee is recommending $1,500,000 in subsidy 
appropriations for the micro and small enterprise program. This 
level is the same as the 1995 enacted level, but is $10,500,000 
below the budget estimate.
    The proposed level of funding will provide $16,700,000 in 
guarantee authority.
    In addition, the Committee is recommending $500,000 in 
administrative expenses, the same as last year but $2,000,000 
below the budget request.
    Due to budget constraints, the Committee has not funded the 
new Enhanced Credit Initiative. This initiative would have 
funded a program level of $100,000,000 in new credit activity, 
but the budget justification materials submitted to the 
Committee did not provide an adequate explanation of the 
proposed uses of the new loan authority.

               Housing and Other Credit Guaranty Program

                         subsidy appropriations
Fiscal year 1995 level..................................     $19,300,000
Fiscal year 1996 request................................      16,760,000
Committee recommendation................................               0
                  estimated level of guaranteed loans
Fiscal year 1995 level..................................  ($137,474,000)
Fiscal year 1996 request................................   (141,886,000)
Committee recommendation................................             (0)
                           operating expenses
Fiscal year 1995 level..................................      $8,000,000
Fiscal year 1996 request................................       7,240,000
Committee recommendation................................       7,000,000

    The Committee has not provided subsidy appropriations for 
the housing and other credit guaranty program. This program is 
directed primarily at more advanced developing nations, and the 
Committee believes that limited foreign assistance funding 
should be targeted at less advanced developing countries.
    However, an appropriation of $7,000,000 is recommended for 
operating expenses in order that the Agency for International 
Development retain the ability to manage and monitor the 
remaining loan portfolio of approximately $185,000,000. The 
recommendation is $240,000 below the enacted level and 
$1,000,000 below the request.

     Payment to the Foreign Service Retirement and Disability Fund
Fiscal year 1995 level..................................     $45,118,000
Fiscal year 1996 request................................      43,914,000
Committee recommendation................................      43,914,000

    The Committee has provided the budget request for the 
mandatory payment to the Foreign Service Retirement and 
Disability Fund.

     Operating Expenses of the Agency for International Development
Fiscal year 1995 level..................................\1\ $517,500,000
Fiscal year 1996 request................................     529,000,000
Committee recommendation................................     465,750,000
Reform and downsizing...................................      29,925,000

\1\ Includes $3,000,000 provided for mission closures and reform.

    The Committee has recommended funding for Agency for 
International Development operating expenses at a level of 
$465,750,000 which is $63,250,000 below the Administration's 
request and a decrease of $51,750,000 from the amount provided 
last year.
    In addition, the Committee recommends an appropriation of 
$29,975,000 for downsizing and reform activities.

                         reform and downsizing

    The Committee is committed to a major reduction of AID 
personnel and operations, consistent with the reductions 
proposed for development assistance. However, in order to reach 
a funding level no higher than the level assumed in the 
authorization bill for fiscal year 1997, funds must be provided 
in fiscal year 1996 in order to downsize the agency through 
reductions-in-force (RIFs), mission closures, and associated 
close-out activities.
    In proposing these reductions, the Committee is aware that 
AID has already cut all staffing (including contract employees) 
by 18 percent below the level that existed at the beginning of 
fiscal year 1994.
    A total of $29,975,000 is being proposed for reform and 
downsizing activities. The Committee intends that the funds be 
used for the following purposes:

Severance pay for general service employees.............      $4,675,000
Return to home of record (overseas general service, 
    foreign service, and contractor employees; includes 
    moving expenses and other employee close-out costs).      11,250,000
Mission closures/foreign national severance pay.........      12,000,000
Post transfers resulting from mission closures..........       2,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, downsizing and reform......................      29,975,000

    Costs for mission closures will include the buyout of 
leases and other long-term contracts, as well as accelerated 
reductions in foreign national employees.
    The Committee recommendation includes bill language 
expecting that the downsizing and reform appropriation will 
result in the reduction of 500 full-time equivalent onboard 
employees by the end of fiscal year 1997 from the level 
existing on April 30, 1995.
    The reduction from the authorized level would be over 17 
percent; the reduction from the onboard level would be just 
under 14 percent. The Committee would be concerned if this 
personnel reduction were to be offset by a technique such as an 
increase in AID Fellows, and requests that the agency report on 
the current and expected level of such Fellows.
    The Committee recommendation requires AID to submit a plan 
prior to the use of these funds. The use of existing transfer 
authority would be limited to emergency funding necessary to 
prevent the shutdown of agency operations. The Committee 
expects that the plan will result in the need for an 
appropriation no higher than the level assumed in the House-
passed authorization bill for AID operating expenses for fiscal 
year 1997.
                            aid publications

    The Committee continues to be concerned with the number and 
expense of publications issued by AID. AID has taken a number 
of steps this year aimed at controlling publications. The 
Committee has continued a limitation in the bill to enable AID 
leadership to exert even more control over publications. The 
Committee continues to recommend that only reports called for 
by fiscal year 1996 Congressional action be prepared. Reports 
prepared for Congress should not be elaborate publications, but 
rather simply address the questions raised by the various 
Congressional Committees.
Operating Expenses of the Agency for International Development--Office 
                        of the Inspector General
Fiscal year 1995 level..................................     $39,118,000
Fiscal year 1996 request................................      39,118,000
Committee recommendation................................      35,200,000

    The Committee has recommended $35,200,000 for the Office of 
the Inspector General of AID for fiscal year 1996.

                         Economic Support Fund
Fiscal year 1995 level..................................  $2,349,000,000
Fiscal year 1996 request................................   2,494,300,000
Committee recommendation................................   2,326,700,000

    The Committee has recommended a total of $2,326,700,000 for 
the Economic Support Fund.

                                 Israel

    The Committee recommends that not less than $1,200,000,000 
in Economic Support Funds be provided for Israel, which is the 
fiscal year 1995 level and the amount requested by the 
Administration. The Committee also requires in bill language 
that these funds be provided to Israel as a cash grant within 
thirty days of the signing of this act or by October 31, 1995, 
whichever is later.

                                 Egypt

    The Committee recommends that not less than $815,000,000 in 
Economic Support Funds be provided for Egypt on a grant basis, 
which is the fiscal year 1996 level and the amount requested by 
the Administration. Cash transfer may be provided with the 
understanding that Egypt will continue to implement significant 
economic reforms. The Committee also strongly recommends that 
not less than $200,000,000 of the funds allocated for Egypt be 
used for Commodity Import Program assistance.

                          non-military exports

    The Committee strongly urges the President to ensure, in 
providing cash transfer assistance to Egypt and Israel, that 
the level of such assistance does not cause an adverse impact 
on the total level of non-military exports from the United 
States to each such country.

                           camp David accords

    The Committee emphasizes that the recommended levels of 
assistance for Israel and Egypt are based in great measure upon 
their continued participation in the Camp David accords and 
upon the Egyptian-Israeli peace process.

                           west bank and gaza

    The Committee supports providing the $75,000,000 requested 
in fiscal year 1996 for assistance to the West Bank and Gaza. 
The Committee continues to believe that support by the United 
States for the economic and social development of Palestinians 
is an important contribution to the peace process.

                                 Zaire

    The Committee has continued prior year language prohibiting 
Economic Support Funds to Zaire.

                         availability of funds

    The Committee has continued language that funds in this 
account are to remain available for obligation for two years.
                       economic boycott of Israel

    The Committee has included language in the bill addressing 
the Arab League boycott of Israel under Sec. 542.
                                 turkey

    The Committee believes that due to the tight budgetary 
limits on this account it is not possible to meet the 
administration's request for Turkey of $100,000,000. In light 
of these constraints, the Committee believes that funds made 
available to Turkey in fiscal year 1996 should not exceed the 
amount provided to Turkey in fiscal year 1995.

                                 Cyprus

    The Committee recommends that every effort be made to 
provide $15,000,000 in Economic Support Funds for scholarships 
and bicommunal projects in Cyprus. This amount is the same as 
the Administration's request and the same as that appropriated 
in the past several years. The Committee makes this 
recommendation as a demonstration of support for a peaceful 
reunification of the island in accordance with relevant UN 
resolutions and in the belief that greater bicommunal 
cooperation will facilitate such goals as the withdrawal of 
Turkish troops and demilitarization of the island.

                             Latin America

    The Committee urges the administration to meet the fiscal 
year 1996 Economic Support Fund request for Latin America to 
the maximum extent possible. It is the Committee's strong 
belief that given the importance of the region and the long 
history of United States support to developing countries there, 
it is essential that aid levels not be reduced further.
    Despite significant progress in recent years, many nations 
of this Hemisphere continue to face special problems, 
particularly in the poorest regions and countries recovering 
from conflict. There are nations in Latin America and the 
Caribbean on the verge of achieving the peace, prosperity and 
stability that the United States strives to advance in the 
world community. In some instances, notably in Central America, 
transitions from war and dictatorship to peace and democracy 
are underway. The fragile peace processes in these countries 
require a sustained commitment by the United States if they are 
to consolidate peace and democracy.
    The Committee believes it remains in our country's interest 
to help our neighbors stabilize their economies and combat 
severe levels of poverty. In doing so, we help strengthen 
emerging democracies and create new markets for American 
exports. This growing trade activity supports millions of jobs 
here at home.
    The Committee reiterates its longstanding view that our 
interests in this region of the world, in this time of 
transition, are vital and our obligations continue. It is 
essential that the people of Latin America and the Caribbean 
understand our commitment to the democratic development of this 
hemisphere.

                                 haiti

    The Committee notes that due to the tight budgetary 
constraints, the recommended appropriation for the Economic 
Support Fund is $157,600,000 below the President's request. As 
a result of this significant reduction, the Committee believes 
that funds made available to Haiti from this account should not 
exceed half of the amount requested in fiscal year 1996.

                             expropriation

    The Committee urges the administration to energetically 
pursue legitimate claims by United States citizens against the 
Nicaraguan government for restitution for property confiscated 
by the previous Sandinista government over a decade ago. The 
Committee is concerned that without the full support of the 
United States government, fair compensation for expropriated 
property will not be forthcoming. The Committee urges the 
administration to be highly attentive to this issue. The 
Committee would also note that similar difficulties exist with 
the Dominican Republic and would urge the administration to be 
equally attentive to achieving a fair settlement of outstanding 
legitimate claims. The Committee would also note that fair and 
equitable settlements would reinvigorate investor confidence in 
both countries thus opening the doors to other American 
companies which wish to participate in the Hemisphere's 
exciting growth and progress in recent years.

                      utilizing the private sector

    The Committee continues to support aid to Egypt which 
effectively utilizes the technology and expertise of the 
American private sector to promote continued economic reform 
and modernization in Egypt. In the past, the Committee has 
noted the Telecommunication Sector Support Project (TSSP) as 
one such example of how American aid working in tandem with 
industry can become a growth multiplier in the underdeveloped 
world. This project is significantly improving the Egyptian 
telecommunications network while at the same time enabling 
Egypt to put its national telephone company in a position to 
become a private enterprise in due course.

                     International Fund for Ireland
Fiscal year 1995 level..................................     $19,600,000
Fiscal year 1996 request................................               0
Committee recommendation................................      19,600,000

    The Committee recommends $19,600,000 for the International 
Fund for Ireland in support of the Anglo-Irish Accord. Funding 
of $29,600,000 was requested for this activity through the 
Economic Support Fund.
    The International Fund for Ireland continues to meet the 
task of bringing new economic and commercial life to the areas 
of Northern Ireland that have suffered most severely from the 
division of Ireland and the strife of the last two decades. The 
Committee urges continued commitment by the European Community 
in their support for the Fund, and cautions that anticipated 
reductions in future year overall foreign aid funding make 
additional United States contributions uncertain.
    The Committee strongly urges the International Fund for 
Ireland to take every step possible to ensure that all 
recipients of Fund support are promoting equality of 
opportunity and non-discrimination in employment.

             Assistance for Eastern Europe and the Baltics
Fiscal year 1995 level..................................    $359,000,000
Fiscal year 1996 request................................     480,000,000
Committee recommendation................................     324,000,000

    The Committee has recommended $324,000,000 for Assistance 
for Eastern Europe and the Baltics for fiscal year 1995.
    The Committee has recommended language in the bill which 
provides that these funds:
          Remain available for two years;
          Are available, notwithstanding any other provision of 
        law;
          Be considered economic assistance under the Foreign 
        Assistance Act for administrative purposes;
          That the Enterprise Funds may set up interest-bearing 
        accounts and may use the interest for the same purposes 
        as the appropriated funds; and
          That the funds for the Enterprise Funds should be 
        expended at the minimum rate necessary to make timely 
        payments for projects and activities.
                            enterprise funds

    The Committee strongly recommends that USAID honor its 
prior funding commitments to the Enterprise Funds at such 
funding levels as were originally announced by the 
Administration, agreed to by the Congress through the 
congressional notification process, and referenced in Grant 
Agreements between USAID and each of the Enterprise Funds. To 
this end, the Committee further recommends that any reductions 
in USAID funding for its ``Eastern Europe and the Baltic 
States'' and ``N.I.S.'' accounts neither be applied to nor have 
any effect on USAID's funding of the Enterprise Funds.
    The Committee supports the Hungarian-American Enterprise 
Fund's efforts to raise private capital as a way to ultimately 
achieve self-sustainability. The Committee notes, however, that 
the Hungarian Fund is in need of an additional $30,000,000 of 
USAID funding beyond its original $70,000,000 in order to 
continue its programs and to attract private capital. 
Accordingly, the Committee urges USAID to provide the Hungarian 
Fund an additional $30,000,000 in fiscal 1996, of which 
$20,000,000 is to be used for its core investment programs and 
$10,000,000 is to be used for its small loan program, provided 
that other enterprise funds have been fully funded.

                        small business programs

    The Committee is concerned by reports that the Agency for 
International Development is establishing small business 
assistance and credit programs in Central Europe that may be 
duplicative of activities being performed by enterprise funds. 
In the current budget climate, the Committee does not support 
AID programs that compete with ongoing enterprise fund programs 
and projects. The Committee expects AID to report by December 
1, 1995, on its plans for small business assistance and credit 
programs in Central and Eastern Europe; on the degree to which 
such programs would duplicate or compete with projects funded 
or planned by enterprise funds; and on the need for such 
programs.

                            baltic programs

    The Committee expects AID to continue programs in the 
Baltic nations even as it moves to establish new programs in 
the southern region of Eastern Europe. The closing of a 
resident mission in a country should not preclude carefully 
targeted projects of an ongoing nature.

       matching funds for private youth program centers in poland

    The Committee requests that the appropriate Executive 
branch agency consider proposals to match private funds 
dedicated to the establishment in Poland of a youth program 
center that would combine adult leadership training and 
outreach with recreational facilities that will promote 
American goodwill and values throughout Central Europe.

                          rose-roth initiative

    The Committee supports continued funding of not to exceed 
$100,000 for the Rose-Roth program through the North Atlantic 
Assembly. The Committee notes that this program has been funded 
through this account in the past.

                           legal initiatives

    The Committee encourages the United States Information 
Agency and the Agency for International Development to continue 
to provide financial support for the Central and Eastern 
European Law Initiative (CEELI), a project of the American Bar 
Association. CEELI has received grants to help Central and East 
Europe and the NIS create new legal frameworks based on the 
rule of law rather than Party doctrine or caprice.
    Through a variety of program components, CEELI is making 
available legal expertise to assist countries that are in the 
process of modifying or restructuring their laws or legal 
systems. CEELI emphasizes long-term engagement country-by-
country and supports projects that facilitate extensive 
consultations with policy-makers, legal scholars, judges, and 
attorneys. CEELI has focused work in several critical priority 
areas: constitutional reform; judicial restructuring; criminal 
law and procedure; and local government law reform, and has 
sought to emphasize projects involving reform of the legal 
profession and commercial law development.

  Assistance for the New Independent States of the Former Soviet Union
Fiscal year 1994 level..................................  $2,157,820,000
Fiscal year 1995 level..................................     842,500,000
Fiscal year 1996 request................................    788,000,000-
Committee recommendation................................     595,000,000

(Note: The fiscal year 1994 column includes all funds provided for the 
NIS in P.L. 103-87 including fiscal year 1993 supplementals.)

    The Committee has recommended $595,000,000 for Ukraine, 
Armenia, Georgia, Russia, and the new independent republics of 
the former Soviet Union.
    The Committee has continued prior year language providing 
the funds ``notwithstanding any other provision of law'' and 
applying the provisions of section 498B(j) of the Foreign 
Assistance Act. The Committee has included prior year language 
on territorial integrity, human rights, non-use of funds for 
enhancing military capacities, providing funds to the maximum 
extent feasible through the private sector, private voluntary 
organizations, and non-governmental organizations, and 
providing all funds subject to notification. The Committee also 
has included language making Mongolia eligible to receive funds 
provided in this section.
    The Committee believes that no relationship is more 
important to the long-term security of the United States than 
the strategic relationship with Russia. If Russian reform fails 
and if Russia reverts to a dictatorship or collapses into 
anarchy, the potential of nuclear confrontation could return. 
The Russian people are struggling to build a free society and a 
market economy. Their success is important to America in 
reduced nuclear threat, lower defense budgets, and open markets 
to fuel global prosperity and help create jobs.
    At the same time, the Committee believes that the other 
nations of the NIS, including Ukraine, Armenia and Georgia, are 
important to United States security interests in the region. 
Over the past three years, despite adverse circumstances, 
Ukraine and Armenia have taken major steps in political and 
economic reform. The continued development of democratic and 
free-market institutions in Ukraine, Armenia and the other NIS 
nations cannot but help encourage similar developments in 
Russia. The United States must make a greater effort to develop 
more effective assistance programs for Ukraine, Armenia and 
other NIS countries that promote political and economic reform 
and that are specific to the needs of each individual country.
    The Committee commends the President for expanding the 
statutory office of Coordinator of U.S. Assistance to the New 
Independent States of the Former Soviet Union by adding the 
concurrent responsibilities of Special Advisor to the 
President. The Committee has structured its bill in a way that 
the individual holding these dual offices can allocate the 
funds appropriated for any activities with his scope of 
responsibility as determined by the President's charter of 
April 4, 1995.
    Although only funds allocated to the Russian Federation are 
subject to prior notification, the Committee directs the 
Coordinator and Special Advisor to the President to fully 
consult with it before obligating any funds for programs funded 
during fiscal years 1994 and 1995 in other Acts, or authorized 
outside of the FREEDOM Support Act.

                              peace corps

    The Committee strongly supports Peace Corps programs in the 
NIS. The Committee recommends no less than $14,000,000 for this 
purpose from funds appropriated for the region.

                        farmer-to-farmer program

    The Committee continues to commend the work of Volunteers 
in Overseas Cooperative Assistance (VOCA) for its worldwide 
Farmer-to-Farmer program. Recent external evaluations have 
reaffirmed that VOCA has built a highly successful people-to-
people program in developing countries, Central and Eastern 
Europe, and the New Independent States of the former Soviet 
Union. VOCA has demonstrated that experienced, skilled 
volunteer experts in agriculture, environment and cooperative 
development who work with local organizations, agribusinesses 
and farm leaders can significantly shape national policies in 
support of market economies and grassroots democracy. The 
demonstrated impacts of VOCA volunteers are outstanding 
examples of concrete people-oriented successes that represent 
the types of foreign assistance that the American people can 
support.
    The Committee recommends that AID maintain funding for 
VOCA's programs as a cost-effective way to encourage broad-
based economic, environmentally sustainable and democratic 
development. Interruptions in AID support for VOCA would damage 
the continuity of this valuable program and, thus encourage 
longer term funding for VOCA programs especially for Russia and 
other NIS countries where food security is critical to market 
reform efforts.
    The Committee encourages the Agency for International 
Development to expand VOCA's Farmer-to-Farmer programs in 
developing and newly democratic countries as a cost-effective 
way to transfer practical skills and know-how to farmers and 
their agribusinesses. The Committee supports increased funding 
for such programs in the New Independent States so that VOCA 
volunteers can achieve a critical mass for maximum impact in 
key regions to demonstrate the benefits of private agriculture.

           assisting the victims of the conflict in Chechnya

    The Committee is moved by the plight of the victims of the 
civil conflict in Chechnya and surrounding regions of the 
Russian Federation. A member of the Committee recently returned 
from Chechnya and saw first-hand the massive destruction of 
lives and property that resulted from the disproportionate use 
of force and the lax discipline of the armed forces involved.
    American assistance to the survivors of the conflict in 
Chechnya and the surrounding Caucasus region should be provided 
through international non-governmental groups and through the 
Organization for Security and Cooperation in Europe. Such 
assistance should be funded through this account, and from the 
amount allocated for Russia in this Act or prior year Acts.

             scholarship, training and internship programs

    The Committee supports a broad array of scholarship, 
internship, and training programs which bring people from the 
republics of the former Soviet Union to the United States. The 
Committee encourages the Administration to leverage these 
funds, urging groups, communities, state and local governments, 
businesses, schools and universities to raise additional 
resources to match the funds.

   Russian, Eurasian, and east European research and training program

    The Committee supports the President's decision to include 
funding for the Russian, Eurasian, and East European Research 
and Training Program among activities proposed under foreign 
assistance to the NIS. The Committee also supports funding for 
this program from the Eastern Europe and the Baltic States 
account.
    This program, which has traditionally received strong 
bipartisan support, is the only United States government 
sponsored program that supports American research, training, 
and language expertise concerning the successor states of the 
former Soviet Union and Eastern Europe. The program is an 
investment designed to ensure that broad-based expertise is 
available in both the academic and policy making community on a 
range of policy issues in the region.

                  humanitarian assistance for Armenia

    The Committee remains concerned about severe shortages of 
food and fuel in Armenia and supports continued efforts to 
alleviate the humanitarian crisis in this country.
    Despite the dire effects of the blockade of fuel and food 
by its neighbors, Armenia is progressing toward full democracy, 
and is far ahead of its neighbors in achieving a market-based 
economy. Beyond the humanitarian supplies needed to sustain 
Armenia, the Committee expects the Coordinator and AID to 
expand support for long-term development in Armenia and 
seriously consider an enterprise fund for the Caucasus region.

                assistance for the victims of Chernobyl

    The Committee supports assistance for a program of 
scientific research for victims of Chernobyl. The Committee 
believes that assistance should be made available for the 
victims of Chernobyl, the largest nuclear disaster in history. 
The explosion and fire at the Chernobyl nuclear plant resulted 
in the release of radioactive particles, with disastrous 
consequences. Experts estimate that as many as four million 
individuals today, mostly in Belarus and Ukraine, live in zones 
of high radiation fallout. Radiation levels in some areas are 
as much as twenty times the normal levels. The increase in the 
illness rate among children is catastrophic. There has been a 
great increase in deformities among newborn children.

                             project orbis

    The Committee continues to support the efforts of Project 
ORBIS to teach doctors in developing countries to perform sight 
saving eye surgery. The Committee believes that Project ORBIS 
should continue and expand its work in developing countries and 
particularly supports its efforts in the Newly Independent 
States of the former Soviet Union.
                   Russian-American enterprise funds

    The Committee commends those in the executive branch who 
were responsible for beginning the process of merging the 
multiple Russian-American enterprise funds that are funded by 
this Committee. Many of the concerns expressed last year in the 
report on this bill have been addressed. The Committee looks 
forward to further progress in this area.
    The Committee continues to believe that the targeting of 
foreign assistance programs to the Russian Far East, 
particularly those aimed at developing a private enterprise/
private-sector economy infrastructure to accommodate United 
States investment, technical assistance, and imports/exports, 
should be a priority for the Administration.
    Given the importance of rural Russia with 25% of the 
population, the Committee strongly encourages AID and the 
Russian-American Enterprise Fund to devise a method to provide 
special support for agribusiness. The Committee believes that 
this special effort should have advisory support from notable 
U.S. and Russian agricultural leaders. Staffing by experts in 
agribusiness finance is necessary. The program should target 
emerging private small agribusinesses that can bring 
competition into the marketplace now dominated by large state 
monopolies in order to build rural support for market reforms.
          matching funds for civilian scientists and engineers
    The Committee suggests that the Coordinator and Special 
Advisor to the President seriously consider providing funds to 
match private and Department of Defense funds in support of an 
R&D Foundation that will support civilian, non-defense research 
and development activities through private sector linkages 
between scientists and engineers in the United States and in 
the states of the former Soviet Union. The Foundation is 
authorized by section 511 of P.L. 102-511 and will be governed 
by a Board of Directors.
    The National Science Foundation, as provided under the 
authorization, is the agency establishing the R&D Foundation. 
To date, $10 million has been deposited into the NSF trust 
fund, $5 million of which was provided by the private Soros 
Foundation. In addition, the Soros Foundation has spent an 
additional $100 million to support the faltering civilian and 
academic scientific institutions in Russia, Ukraine and other 
states of the former Soviet Union. The R&D Foundation is in no 
way connected with the Defense Department activities that 
employ scientists and engineers formerly engaged in designing 
weapons of mass destruction.

                        concern about fred cuny

    The Committee is familiar with the global humanitarian 
accomplishments over many decades of Fred Cuny, who, at the 
time this report is being written, is missing in the Chechnya 
region of Russia. The Committee urges the Russian and Chechnyan 
authorities to fully cooperate with the United States 
Government's efforts to locate Mr. Cuny.
                          INDEPENDENT AGENCIES
                     African Development Foundation
Fiscal year 1995 level..................................     $16,905,000
Fiscal year 1996 request................................      17,405,000
Committee recommendation................................      10,000,000

    The Committee has recommended funding for the African 
Development Foundation at a level of $10,000,000, $7,405,000 
less than the amount requested by the Administration and 
$6,905,000 less than the amount provided in fiscal year 1995.
    The funding level is consistent with a phase-down of direct 
funding for this organization. The Committee urges the 
Foundation to explore alternative sources of funding, both 
public and private.
                       Inter-American Foundation
Fiscal year 1995 level..................................     $30,960,000
Fiscal year 1996 request................................      31,760,000
Committee recommendation................................      20,000,000

    The Committee recommendation provides $20,000,000 for the 
Inter-American Foundation, $10,960,000 below fiscal year 1995 
and $11,760,000 below the request.
    The funding level is consistent with a phase-down of direct 
funding for this organization. The Committee urges the 
Foundation to explore alternative sources of funding, both 
private and public.

                              Peace Corps
Fiscal year 1995 level..................................    $219,745,000
Fiscal year 1996 request................................     234,000,000
Committee recommendation................................     210,000,000

    Committee recommends Peace Corps funding of $210,000,000. 
Prior year language addressing purchase of motor vehicles, 
abortion, and ability of funds have been continued in the bill.
    The Committee supports the work of the Peace Corps, but 
asks that the Corps begin a process of consolidation after its 
expansion in recent years. The Peace Corps entered numerous new 
countries, five of which are in Eastern Europe, since 1989. 
While this rapid expansion was welcome at the time and 
reflective of a worldwide trend toward democracy, the new 
determination to move toward a balanced budget required the 
Peace Corps to adjust according to anticipated reductions in 
funding. The Congress has traditionally taken the lead in 
ensuring adequate funding levels for the Peace Corps. This will 
continue, however, only if the Peace Corps should accept the 
challenge of consolidating its roles and missions without 
diminishing its long-term emphasis on helping the poor improve 
their ability to support themselves and their families.

                          women in development

    The Committee supports the goals outlined in the Women in 
Development Act of 1991, which details a strategy to give women 
of developing nations a higher priority in assistance programs.
    The Committee urges the Peace Corps to integrate this 
priority into its training programs, and expects that its 
programs be directed to women in approximate proportion of 
their traditional participation in targeted activities. The 
Committee also supports funding for the office of the WID 
coordinator within the Peace Corps.

                           programs with aid

    The Committee supports the continued collaboration between 
the Peace Corps and the Agency for International Development. 
It is often a cost effective use of development resources to 
match AID's financial and technical support with Peace Corps 
volunteers grass roots capabilities. The Committee expects that 
AID and the Peace Corps will continue their collaborative 
efforts in fiscal year 1996, and explore additional 
opportunities for appropriate collaboration.

                 programs in the new independent states

    The Committee notes that the fiscal year 1995 Peace Corps 
program in the New Independent States was funded from the NIS 
account. The Committee expects that the costs of the fiscal 
year 1996 program to be funded in a similar manner.

                          DEPARTMENT OF STATE

                    International Narcotics Control
Fiscal year 1995 level..................................    $105,000,000
Fiscal year 1996 request................................     213,000,000
Committee recommendation................................     113,000,000

    The Committee has recommended $113,000,000 for the 
International Narcotics Control program. This is $8,000,000 
above the program level for 1995. Funding for associated 
economic and military assistance has been included in the 
appropriate accounts as in fiscal year 1995.

                    Migration and Refugee Assistance
Fiscal year 1995 level..................................    $671,000,000
Fiscal year 1996 request................................     671,000,000
Committee recommendation................................     671,000,000

    The Committee has recommended $671,00,000 under the 
Migration and Refugee Assistance account, the amount requested 
and the same level of funding as provided in fiscal year 1995. 
Not to exceed $12,000,000 for administrative expenses are 
authorized in bill language. Combined with the Emergency 
Refugee and Migration Assistance Fund, there will be a total of 
$726,000,000 available in fiscal year 1996 for assistance to 
refugees. The Committee believes that in light of the world 
wide refugee emergency, funding for refugee assistance should 
not be below that provided last year.
    The Committee is concerned that the State Department make 
every effort to ensure that a potential increase in refugees 
from Tibet and Bosnia can be handled within available funding. 
Since 1991, the United States has provided humanitarian 
assistance for Tibetan refugees living in exile, and the 
Committee would expect that such support be continued. In 
addition, conditions in the former Yugoslavia may result in the 
need for the United States to accept an increase in the number 
of Bosnian refugees.

                     refugees resettling in Israel

    The Committee recommends continuation of the $80,000,000 
provided last year for the resettlement of Soviet, Eastern 
European and other refugees resettling in Israel. Large numbers 
of refugees are continuing to come to Israel from the former 
Soviet Union and Eastern Europe.
    The Committee is concerned about an audit performed by the 
State Department Office of Inspector General on the grant 
provided to implement this refugee assistance. The audit raised 
questions about the degree to which the State Department has 
been monitoring the use of funds provided for this program, and 
the use of some of the funds provided through the grant. The 
Committee requests that the Department maintain proper 
oversight on this grant, and to report on the steps it has 
taken to implement the recommendations made by the Inspector 
General.

                    refugee resettlement assistance
Fiscal year 1995 level..................................      $6,000,000
Fiscal year 1996 request................................               0
Committee recommendation................................       5,000,000

    The Committee recommendation includes $5,000,000 for the 
targeted assistance program for refugee resettlement 
administered by the Department of Health and Human Services. 
There was no budget request for this item.
    These funds will augment the 10-percent of the targeted 
assistance program which is set-aside for grants to localities 
most heavily impacted by the influx of refugees such as Laotian 
Hmong, Cambodians and Soviet Pentacostals, including secondary 
migrants who entered the United States after October 1, 1979.
     United States Emergency Refugee and Migration Assistance Fund
Fiscal year 1995 level..................................     $50,000,000
Fiscal year 1996 request................................      50,000,000
Committee recommendation................................      50,000,000

    The Committee has recommended $50,000,000 for the Emergency 
Refugee and Migration Assistance Fund.
    The Committee has also included this account as one of 
those cited in section 515 of this Act which require 
reprogramming notifications. While the Committee does not 
desire to reduce the flexibility of the Administration, it is 
concerned that the State Department has not maintained a 
tradition of consultation on the use of these funds. In 
particular, the Committee was distressed when funds were 
reprogrammed to assist refugees from the Chechnya conflict in 
Russia when authorization exists in the Freedom Support Act for 
the use of funds appropriated for the New Independent States 
for such purposes. These are emergency funds, and should not be 
used if alternative sources of funding are available.
                       Anti-Terrorism Assistance
Fiscal year 1995 level..................................     $15,244,000
Fiscal year 1996 request................................      15,000,000
Committee recommendation................................      17,000,000

    The Committee has recommended $17,000,000 for Anti-
Terrorism Assistance which is $2,000,000 above the level 
requested for fiscal year 1996.

                 Non-proliferation and Disarmament Fund
Fiscal year 1995 level..................................     $10,000,000
Fiscal year 1996 request................................      25,000,000
Committee recommendation................................      20,000,000

    The Committee has recommended $20,000,000 for the Non-
proliferation and Disarmament Fund. The amount recommended is 
$5,000,000 below the requested level. The Committee strongly 
supports this worthwhile program and believes the savings can 
be realized from a more efficient implementation of the NIS 
export control program. The Committee has continued existing 
authorities (including the authorities to make grants) for the 
conduct of the 
program. The Department of State is to notify the Committee 
through its regular notification process on the use of the 
funds.
                     TITLE III--MILITARY ASSISTANCE

                  Funds Appropriated to the President

             International Military Education and Training
Fiscal year 1995 level..................................     $25,500,000
Fiscal year 1996 request................................      39,781,000
Committee recommendation................................      39,000,000

    The Committee recommends $39,000,000 for the International 
Military Education and Training program. The amount recommended 
is $781,000 below the requested level. The Committee 
recommendation reflects the consolidation of funding for IMET, 
expanded IMET and the Military to Military Contact Program in 
one account. The Committee provides no funds in this bill for 
the Military to Military Contact Program in fiscal year 1996. 
The Military to Military Contact Program was funded at 
$12,000,000 in fiscal year 1995, but not requested in fiscal 
year 1996.
    The Committee includes updated prior year bill language 
requiring that high income countries that receive IMET funds 
pay for the transportation and living allowances of their 
students. First, the Committee reduces the amount available to 
any high income country from $300,000 to $100,000. Second, for 
the purposes of determining ``high income countries'' the 
committee means: those nations listed as high income earning 
countries in the ``World Development Report, 1994'' and the 
Government of Korea. The Committee continues prior year bill 
language prohibiting IMET funding for Zaire and inserts new 
language allowing expanded IMET only for Indonesia and 
Guatemala. With respect to Indonesia and Guatemala, the 
Committee strongly urges the administration to carefully review 
candidates from both countries to make certain they have not 
been involved in previous human rights abuses. The Committee 
hopes that making expanded IMET available to Guatemala and 
Indonesia will help improve their human rights performance. The 
Committee continues prior year language permitting civilians 
and legislators to receive training in the IMET program.

              imet, human rights and economic development

    The Committee continues to support both the IMET program 
and its ``Expanded IMET'' component. The Committee supports a 
substantial human rights component in programs for all IMET 
countries, including information on international human rights 
conventions, human rights law in the recipient's country, 
American human rights law and policy, and appropriate behavior 
by military personnel. The Committee supports the holding of 
IMET field seminars that bring together elements of the 
military and indigenous human rights groups. The Committee also 
supports inclusion of a substantial number of civilian 
employees of foreign governments in IMET programs. The 
Committee believes that the IMET program and its expanded IMET 
component offer the military of other nations full exposure to 
how the United States military performs as a professional, 
highly respected institution in a civil, democratic society 
governed by the rule of law. It is the committee's view that 
the attainment of such a military must be a fundamental 
objective of any underdeveloped nation in its pursuit of 
economic growth and prosperity and that the IMET program plays 
an important role in supporting this objective.
                               guatemala

    The Committee remains concerned by ongoing human rights 
violations in Guatemala. The Committee also urges the 
Government of Guatemala to aggressively investigate such 
violations and resolve current outstanding human rights cases 
as expeditiously as possible. Further, the Committee believes 
that the strengthening of the judicial system should be a high 
priority for the Guatemala government. As a result of these 
concerns, the Committee has included bill language which limits 
Guatemala to expanded IMET only in fiscal year 1996.

                           burundi and rwanda

    The Committee continues to be strongly concerned by human 
rights abuses in Burundi and Rwanda, particularly in light of 
recent events in both countries. Therefore, the Committee 
believes that neither Burundi nor Rwanda should receive 
professional IMET in fiscal year 1996. However, the Committee 
believes that expanded IMET which focuses on human rights 
training and respect for civil rights may be made available to 
both countries if the Secretary of Defense determines it would 
contribute to the improvement of human rights, and provided the 
Department of Defense carefully reviews the background of 
potential candidates to make certain they have not taken part 
in past human rights abuses.

                         school of the Americas

    The Committee strongly urges the Department of Defense to 
continue its ongoing efforts to incorporate human rights 
training into the School of the Americas regular training 
curriculum. The Committee also urges the Department of Defense 
to rigorously screen potential students to make certain they 
have not taken part in past human rights abuses. The Committee 
intends to carefully review the activities of the School of the 
Americas and urges the Department of Defense to place increased 
emphasis on the human rights performance of its students.

                   Foreign Military Financing Program

                                 grants
Fiscal year 1995 level..................................  $3,151,279,000
Fiscal year 1996 request................................   3,262,020,000
Committee recommendation................................   3,211,279,000
                         subsidy appropriations
Fiscal year 1995 level..................................     $47,917,000
Fiscal year 1996 request................................      89,888,000
Committee recommendation................................      64,400,000
                                 loans
Fiscal year 1995 level..................................  ($619,650,000)
Fiscal year 1996 request................................   (765,000,000)
Committee recommendation................................   (544,000,000)

    The Committee has recommended $3,211,279,000 in Foreign 
Military Financing grants, and $64,400,000 as a subsidy 
appropriation for loans. The amount provided for the subsidy 
appropriation will support a loan program totaling 
$544,000,000. Thus, the total program level of foreign military 
grants and loans for fiscal year 1996 is $3,755,279,000. This 
program level is $271,741,000 below the amount requested by the 
President for fiscal year 1996 and $15,650,000 below last 
year's program level for grants and loans.

                                 Israel

    The Committee recommends a total Foreign Military Financing 
Program of not less than $1,800,000,000 in grants for Israel. 
These funds are to be disbursed within thirty days of enactment 
of this act or by October 31, 1995, whichever is later. -
    The Committee also recommends that to the extent that the 
Government of Israel requests that FMF grant funds for Israel 
be used for such purposes, and as agreed by Israel and the 
United States, funds may be made available for advanced weapons 
systems of which not to exceed $475,000,000 shall be available 
for the procurement in Israel of defense articles and defense 
services, including research and development.
    The Committee is concerned that Israel's technological 
military edge could erode as a result of the unrestrained sales 
of advanced military equipment to Israel's potential 
adversaries by other nations and the increasing sophistication 
and cost of advanced weapons systems. Therefore, the Committee 
continues to believe the United States must make every effort 
to carry out its long-standing policy of ensuring that Israel's 
technological edge is maintained.

                                 Egypt
    The Committee recommends a total Foreign Military Financing 
Program for Egypt of not less than $1,300,000,000 in Foreign 
Military Financing grants.
    The Committee remains extremely concerned about the extent 
of cash flow financing. The Committee notes with great concern 
that as a result of cash flow financing the new outlay levels 
for Egypt military assistance have increased significantly. The 
Committee also notes with concern that increases in these 
outlay levels cannot be sustained in the future. The Department 
is to report on any plans to enter into future cash flow 
financing agreements with Egypt.

          warsaw initiative for partnership for peace nations

    The Committee commends the administration's January 1994 
Warsaw Initiative to provided limited military assistance to 
Partnership for Peace (PFP) nations. The Committee believes 
this request will enhance security and stability in Europe, 
particularly for those Central European nations most likely to 
be considered for NATO membership. The administration's fiscal 
year 1996 request for $60,000,000 will support transfers of 
equipment to enhance the interoperability of PFP forces with 
NATO forces, including tactical radios, night vision equipment, 
global positioning system receivers, search and rescue 
equipment for helicopters, and command and control and 
communication upgrades.

                   partnership for Peace Notification

    The Committee includes a provision stating that no FMF 
grant assistance shall be available for any non-NATO country 
participating in the Partnership for Peace Program except 
through the regular notification procedures of the Committees 
on Appropriations. The Committee would note that Russia is a 
member of the Partnership for Peace. The Committee strongly 
believes that it is extremely premature to be considering 
providing military assistance to Russia.

                           Greece and turkey

    The Committee has included a provision in the bill that 
specifies that the total amount of military assistance to 
Greece and Turkey is to be provided according to a seven to ten 
ratio.

                                Bahrain

    The Committee notes the close political, economic and 
security relationship which exists between the United States 
and Bahrain. The Committee believes that US support for 
Bahrain's Defense Forces sends a clear signal of the US 
commitment to security and stability in the Middle East.

                                lebanon

    The Committee believes support for the people of Lebanon 
continues to be in the United States national interest. As 
Lebanon emerges from fifteen years of civil conflict, American 
support remains important. The Committee supports continued 
funding for Lebanon from both the Development Assistance and 
Economic Support Fund accounts.

                              el salvador

    The Committee recommends that current policy concerning 
providing only non-lethal military equipment to El Salvador be 
continued.

                        administrative expenses

    The Committee has continued a limitation of administrative 
expenses of $24,020,000, the level requested by the 
Administration. The increase in the limitation level is to 
support additional activities in Central and Eastern Europe and 
the former Soviet Union.

                             audit of funds

    The Committee has continued a provision in the bill that 
requires the Department of Defense to conduct audits of private 
firms and subcontractors whose contracts are made directly with 
foreign governments and are financed with funds made available 
under this bill.

                         commercial arms shows

    The Committee deletes a provision in last year's bill 
prohibiting DSAA employees or funds appropriated under this 
heading being used to facilitate the transport of aircraft to 
commercial arms sales shows. In response to the Committee's 
concerns, the Department of Defense has reviewed its policy and 
regulations on this issue. The Committee is in receipt of a 
letter, dated June 1, 1995, from Acting DSAA Director, H. Diehl 
McKalip confirming the activities prohibited in last year's 
language are currently restricted by current DOD directives or 
other provisions of law. The Committee directs the Secretary of 
Defense to notify the Committees on Appropriations prior to any 
changes in policy governing these activities which would be 
inconsistent with the prohibitions included in last year's 
bill.

                  foreign military financing surcharge

    The Committee has included an overall limitation of Foreign 
Military Financing operating costs of $355,000,000, unless 
notified through the Committee's fifteen day notification 
process. The Committee believes that it is important to retain 
this overall limitation in order to ensure that funds collected 
to pay for personnel dedicated to the operation of the FMF 
system are used for that purpose only.

                          excess subsidy costs

    The Committee has included modified language requested by 
the administration allowing the subsidy costs of direct loans 
to be used to supplement funds available for grants under 
certain conditions and vice versa.

                          FMF expenditure rate

    The Committee continues bill language that requires that 
Foreign Military Financing funds be expended at the minimum 
rate necessary to make timely payments for defense articles and 
services.

                non-government to government procurement

    The Committee continues a prior year provision in the bill 
setting non-government to government procurement at a level of 
$100,000,000 for countries other than Israel and Egypt.

                                 loans

    The Committee has included a provision in the bill limiting 
loans to $544,00,000.

                         procurement agreements

    The Committee has continued prior year language requiring 
recipients of Foreign Military Financing to sign agreements 
with the United States prior to using FMF funds to finance the 
procurement of any item not sold by the United States under the 
Arms Export Control Act.

                        Administrative Expenses

    The Committee expects the Department of Defense will 
carefully review administrative expenses in an effort to reduce 
expenditures.

                              prohibitions

    The Committee has included bill language prohibiting 
military assistance to Zaire, Sudan, Liberia, Peru and 
Guatemala. The administration did not request military 
assistance for these countries for fiscal year 1996.

                          Colombia and Bolivia

    The Committee has included a provision prohibiting the 
provision of military assistance to Bolivia and Colombia until 
the Secretary of State certifies that this assistance will be 
used by such countries primarily for counternarcotics 
activities.

                    FMF Loans for Greece and Turkey

    The Committee notes that fiscal year 1996 will mark the 
graduation of both Greece and Turkey as annual FMF loan program 
recipients. The fiscal year 1996 funds included in this account 
for Turkey completes the U.S. funding commitment for the Peace 
Onyx I/II F-16 acquisition by Turkey. The Committee does not 
expect a request for FMF loans for either country next year 
since no funds have been authorized for either country in 
fiscal year 1997 in H.R. 1561, The American Overseas Interest 
Act of 1995. The Committee will entertain future sustainment 
requests for either country based upon the request's individual 
merit.
                                 turkey

    The Committee believes that Turkey remains a key NATO ally 
and reliable strategic partner. The Committee also notes 
Turkey's support for U.S. military efforts during the Gulf war 
and its continued active support for U.S. forces stationed in 
Turkey.
    However, the human rights situation in Turkey is of 
continuing Committee concern. As a result of the Committee's 
attention to this issue, last year's bill language conditioned 
10 percent of aid to Turkey on the preparation of a report by 
the Department of State addressing, among other things, the 
allegations of abuses against civilians by the Turkish armed 
forces and the situation in Cyprus. The report, entitled 
``Report On Allegations of Human Rights Abuses by the Turkish 
Military and on the Situation in Cyprus,'' was delivered to the 
Committee on June 1, 1995.
    The report notes recent Turkish military activity in 
southeast Turkey has resulted in human rights abuses, including 
torture and extrajudicial killings which have alienated many of 
the Kurds in the region. The report also notes that US-origin 
equipment has been used in operations against the Kurdistan 
Workers Party (PKK) in which human rights abuses have occurred 
and in cases where non-PKK civilians were targeted. 
Furthermore, the report includes a Human Rights Report (Annex 
I) which lists the Turkish General Staff (TGS) responses to 
specific allegations collected by the U.S. Mission. The 
Committee would note that the responses offered by the TGS to 
the U.S. Mission request did not appear satisfactory. At the 
same time, the reports notes that the PKK ``is a ruthless 
terrorist group which receives its support from Syria, Iran and 
some sources in Europe...'' The report also states that Turkey 
``has the right to use US-supplied weapons for legitimate self-
defense and for internal security. This includes use to combat 
terrorism by forces such as the PKK.''
    The report concludes by noting that the ``Government of 
Turkey has recognized the need to improve its human rights 
situation and has made proposals which, if adopted and 
implemented, could lead to important and positive changes in 
the situation in the southeast.'' The Committee strongly urges 
the Government of Turkey to cease human rights abuses and fully 
implement these proposals, as well as the democratization 
measures recently introduced into the Turkish parliament.
    In addition, the Committee is disappointed at the report's 
failure to draw any conclusions regarding Turkey's actions on 
Cyprus.

                Report on Transfers to Terrorist States

    The Committee directs the President or his designee to 
provide a report to the Committees on Appropriations on arms 
transfers by China, countries formerly members of the Warsaw 
Pact, and countries which are New Independent States of the 
Former Soviet Union to those countries which the Secretary of 
State, pursuant to Section 620A of the Foreign Assistance Act 
of 1961 as amended, has determined have repeatedly provided 
support for acts of international terrorism.
    Such report shall include:
          (1) all transactions involving the transfer, sale or 
        export of nuclear or nuclear dual use technology,
          (2) all transactions involving conventional military 
        weapons, equipment or munitions,
          (3) all transactions involving items covered by the 
        Missile Technology Control Regime, and,
          (4) all transactions involving items which could 
        support chemical or biological weapons capabilities.
    This report shall also include the following information 
concerning the extent to which these countries are:
          (1) adhering to arms control agreements to which they 
        are party,
          (2) restraining their conventional arms transfers to 
        terrorist states,
          (3) knowingly transferring MTCR related missiles or 
        missile technology to terrorist states, and,
          (4) knowingly transferring any material equipment or 
        technology which would contribute significantly to the 
        ability of a terrorist country to manufacture nuclear, 
        chemical or biological weapons,
    In addition, the report should provide the following 
information:
          (1) information regarding administration discussions 
        with these countries regarding illegal transfers of 
        such materials to terrorist states,
          (2) information regarding whether or not countries, 
        subsequent to such discussions, have terminated such 
        transfers, and,
          (3) assessing the effects of such transfers on the 
        security of the United States and its allies.
    The Committee believes that the findings of this report 
should be considered one of the most important factors in 
determining future allocations of assistance to these 
countries. The Committee expects this report to be delivered by 
February 1, 1996. Furthermore, the report may be classified to 
the extent required.

                    Special Defense Acquisition Fund

    No language was requested by the administration for this 
account which continues to be drawn down. The Committee 
included language in the fiscal year 1994 bill which required 
that all receipts into the Fund be returned to the Treasury. 
This remains in effect and will produce a reduction in the 
deficit of approximately $220,000,000 in fiscal year 1996.
                        Peacekeeping Operations
Fiscal year 1995 level..................................     $75,000,000
Fiscal year 1996 request................................     100,000,000
Committee recommendation................................      68,300,000

    The Committee recommends $68,300,000 for voluntary 
contributions for International Peacekeeping Operations. This 
amount is $6,700,000 below the level provided in fiscal year 
1995 and $31,700,000 below the President's request.
    This account funds voluntary contributions to help defray 
costs of peacekeeping activities undertaken on a voluntary 
basis by regional organizations such as the Organization for 
Security and Cooperation in Europe (OSCE) and the Organization 
for African Unity (OAU). It also funds one-third of the 
Multinational Force and Observers (Sinai), a critical component 
of the Egypt/Israel peace accords.
    The Committee's recommendation assumes that the 
Administration will focus its support on high-priority, on-
going peacekeeping operations and activities.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE

                  International Financial Institutions

    The budgetary situation forces the Committee to begin a 
process of choosing among the nine multilateral development 
banks (MDBs) it has traditionally supported. This year funding 
is requested for the first time in this bill for a tenth 
institution, the North American Development Bank, initially 
funded by the NAFTA legislation. It is evident that the 
Committee cannot recommend full funding of the budget estimate 
of $2,303,865,000, an increase of $522,984,000 above the 
current fiscal 1995 level.
    In approaching this dilemma, the Committee is keenly aware 
of the fact that the multilateral development banks have served 
American interests in many ways. Many of them have supported, 
and continue to support, American businesses in opening new 
markets and securing financing unavailable from commercial 
markets. The ``leveraging effect'' of more than $20 made 
available to developing economies for every dollar appropriated 
by Congress has enabled the Committee to prudently reduce the 
size of its Foreign Operations Appropriations Acts over the 
past decade. These factors, the impact on American business and 
maximum ``leveraging'' ratios, have guided the Committee in its 
recommendations.
    Another factor entered into the Committee's deliberations: 
the growing role of the private sector in developing nations 
that have until recently chosen to undertake development 
through centrally planned or state-dominated economic models. 
The Committee heard dramatic testimony about the fast growing 
sector for American exports, private sector infrastructure 
projects, mostly in the areas of energy and telecommunications. 
Several successful participants in these projects volunteered 
that certain of the MDBs had been vital to their undertakings 
which promote sustainable development abroad and good jobs in 
the United States.
    Finally, no major reevaluation of the role of the 
multilateral development banks has been undertaken and 
completed by the United States Government since the Reagan 
Administration in 1982. In prior years, the Committee has noted 
that the Reagan Administration concluded that ``the value of 
the MDBs lies primarily in their cost effective contribution to 
LDC economic growth and stability.'' This is still a valid 
point, but it may not be equally true for all of the 
institutions.
    The present Administration and its G-7 partners are 
currently undertaking a review of the MDBs as part of the 
preparations for the Halifax Economic Summit later this month. 
The Committee looks forward to consulting with the Treasury 
Department about its conclusions. In reviewing requests for the 
MDBs the Committee took into account the following criteria, as 
well as those discussed in previous reports.
          To what extent does the institution promote private 
        sector growth, and how long has it done so?
          To what extent does the institution support American 
        business interests?
          To what extent does the institution share the 
        attributes of a commercial bank, or does it extend 
        credit on terms approaching a foundation making grants? 
        Do the U.S. shares retain significant market value?
          Does the institution focus on regions vital to the 
        United States, or on regions where significant amounts 
        of United States bilateral assistance is directed?-
    Two of the institutions formerly included with the 
multilateral development banks are distinctly different from 
the others and are now included in Title I, Export and 
Investment Assistance. The International Finance Corporation of 
the World Bank Group and the Multilateral Investment Fund (MIF) 
of the Inter-American Development Bank focus, respectively, on 
equity investments in larger private sector companies on a 
global scale and on loans and grants to entrepreneurs and small 
companies in Latin America, the major expanding market for US 
exports and investment.

     Contribution to the International Bank for Reconstruction and 
                              Development:
                            Paid-in capital
Fiscal year 1995 level. -...............................     $23,009,101
Fiscal year 1996 request-...............................      28,189,963
Committee recommendation................................      23,009,000
                    (Limitation on callable capital)
Fiscal year 1995 level. -...............................  ($743,923,914)
Fiscal year 1996 request-...............................   (911,475,013)
Committee recommendation................................   (743,900,000)
            Contribution to the Global Environment Facility
Fiscal year 1995 level..................................     $90,000,000
Fiscal year 1996 request................................     110,000,000
Committee recommendation................................      50,000,000


    The Committee has recommended appropriations for the 
International Bank for Reconstruction and Development (IBRD) of 
$73,009,000 for fiscal year 1996. This amount includes 
$50,000,000 for the Global Environment Facility.
    The Administration is requesting $28,189,963 in paid-in 
capital for the International Bank for Reconstruction and 
Development, usually known as the World Bank. This capital is 
used in conjunction with private borrowing secured primarily by 
industrial country secondary guarantees in the form of callable 
capital. For fiscal year 1996, the Administration is seeking a 
limitation of $911,475,013 in callable capital subscriptions.
    The Committee recommends for fiscal year 1996 the same 
amount provided in fiscal year 1995, $23,009,000 in paid-in 
capital and $743,900,000 in callable capital. This is done 
solely for budgetary reasons.
    The recommendation of substantially all of the request for 
the IBRD reflects the World Bank's overall record of supporting 
economic growth in most regions, beginning with Western Europe 
in the 1950s and key East Asian nations in the 1950s and 1960s. 
Although the IBRD may have been diverted into experimental and 
social projects between 1968 and 1981, it appears to be in the 
process of returning to sound economic management under its 
late President and his newly appointed successor.
    The Committee views the restructured GEF as an important 
multilateral funding mechanism for addressing global 
environmental problems like the loss of tropical forests. The 
Committee expects to consider future requests for the GEF 
according to its success in meeting three policy objectives: 
(1) focus of GEF resources on conservation of the most 
biologically diverse ecosystems; (2) development of effective 
mechanisms for implementation of GEF projects by private and 
voluntary organizations; and (3) substantial operating 
independence of the GEF with respect to the World Bank group 
and the United Nations.
       Contribution to the International Development Association
Fiscal 1995 level-......................................  $1,175,000,000
Fiscal 1996 request.....................................   1,368,168,000
Committee recommendation................................     575,000,000


    The Committee regrets that it is unable to fully continue 
its long-standing support for the International Development 
Association (IDA). The budget situation in 1995 forces a 
virtual choice between full funding of IDA (over forty percent 
of which goes to Africa) and any funding whatsoever for the 
bilateral programs in sub-Saharan Africa. In addition, concerns 
about environmental matters led the previous Congress to 
withhold authorization of the final $1,250,000,000 payment to 
IDA X, most of which is requested this year.
    The Subcommittee is providing $575,000,000 toward the U.S. 
contribution for the Tenth Replenishment of the International 
Development Association. This substantial reduction from the 
Administration's request will mean that the U.S. will be unable 
to fulfill its commitment to IDA X within the three year time 
period originally negotiated. The Subcommittee wishes to make 
clear that the decision to provide less than the full request 
is a result of necessary budgetary constraints, and not the 
result of a lack of support or appreciation for U.S. 
participation in this development program which is directed 
toward the poorest countries in the world. IDA plays an 
important role in building markets for U.S. exports, as well as 
enhancing the effectiveness of U.S. bilateral export promotion 
programs.
    Looking ahead, the budgetary reductions over the next six 
years that were suggested by recent Congressional Budget 
resolutions make the task of providing future appropriations 
for IDA (the largest item requested for economic assistance in 
this bill) more problematic than ever.
    The Committee has discussed at length during its hearings 
the fact that the Peoples Republic of China has received a 
significant share of IDA soft loans. The Committee has serious 
questions about China continuing to receive IDA loans, given 
its current strong economic and financial status and its human 
rights record. The Committee is encouraged that the Treasury 
Department has committed to graduating China from IDA. It 
expects the Department to keep it fully informed about the 
status of China in any negotiations on IDA's future.
    IDA, as the single largest source of external financing in 
the low-income nations for market-oriented policy reform, as 
well as for education, health and the environment, plays an 
indispensable role in helping to reduce global poverty and in 
helping the poorest countries become integrated into the global 
economy. The Committee requests the Treasury Department begin 
consultations with it regarding further requests for IDA, 
consistent with its broader responsibilities to balance the 
U.S. budget.-
    The Committee is concerned about a national advertising 
campaign by the World Bank that appears to have been directed 
at influencing this Committee's deliberations. The use of 
taxpayer funds from the United States, or any other nation, to 
influence legislators is disturbing.
          Contribution to the Inter-American Development Bank:

                     Inter-regional paid-in capital
Fiscal 1995 level.......................................     $28,111,959
Fiscal 1996 request-....................................      25,952,110
Committee recommendation--..............................      25,950,000
                    (Limitation on callable capital)

1995 level............................................  ($1,594,568,180)
1996 request..........................................   (1,523,767,142)
Committee recommendation..............................   (1,523,000,000)
                                                                        

                      Fund for special operations
Fiscal 1995 level.......................................     $21,338,000
Fiscal 1996 Request.....................................      20,835,000
Committee recommendation................................               0

    The Committee has recommended funding for Inter-regional 
paid-in capital of $25,950,000 for fiscal year 1996, slightly 
less than the President's request. The Committee has 
recommended a limitation on callable capital of $1,523,000,000 
for fiscal year 1996. The Committee is unable to recommend any 
funding in fiscal year 1996 for the soft-loan Fund for Special 
Operations.

              Contribution to the Asian Development Bank:

                            Paid-in capital
Fiscal 1995 level.......................................              $0
Fiscal 1996 request.....................................      13,221,596
Committee recommendation--..............................      13,200,000
            Justification for increase over existing levels

                         Asian Development fund
Fiscal 1995 level.......................................    $167,960,000
Fiscal 1996 request.....................................     304,528,525
Committee recommendation................................     167,960,000
                    (Limitation on callable capital)
Fiscal 1995 level.......................................            ($0)
Fiscal 1996 request.....................................   (647,858,204)
Committee recommendation................................   (647,000,000)

    The Administration is requesting $13,221,596 for paid-in 
capital and a limitation of $647,858,204 on callable capital 
subscriptions (which do not require appropriations). The 
Committee recommends slightly less then the request.
    The request for the soft-loan Asian Development Fund is 
$304,528,525, but the Committee is able to recommend for fiscal 
year 1996 only the amount provided in fiscal year 1995, 
$167,960,000, because of the budgetary situation.
    The Committee has received testimony that the Asian 
Development Bank and Fund are receptive to American providers 
of goods and services, and have been a key factor in opening 
new markets for developmentally-sound infrastructure projects 
in the poorer countries of East Asia and South Asia.

              Contribution to the African Development Fund
Fiscal 1995 Enacted.....................................     $62,215,309
Fiscal 1996 Budget Estimate.--..........................     127,247,025
Committee recommendation.---............................               0

    The first 1995 (Defense) Rescission Act rescinded half of 
the fiscal 1995 appropriation for the African Development Fund. 
The remaining half had already been obligated for the remaining 
amount due from the previous multi-year replenishment. Without 
a current replenishment in place, the Committee cannot 
recommend funding for this institution. This request fails most 
of the criteria discussed at the beginning of this title.

  Contribution to the European Bank for Reconstruction and Development

                            Paid-in capital
Fiscal 1995 level-......................................     $69,180,353
Fiscal 1996 request.....................................      81,916,447
Committee recommendation................................     69,180,000-
                    (Limitation on callable capital)
Fiscal 1995 level-......................................  ($161,420,824)
Fiscal 1996 request.....................................   (191,138,376)
Committee recommendation................................   (161,400,000)

    The Committee is recommending $69,180,000 for the European 
Bank for Reconstruction and Development. This amount is 
slightly less than the level provided in fiscal year 1995 and 
$12,736,000 less than the President's request.
    After a difficult start-up period, the EBRD has made 
exceptional progress in its aim of financing the private sector 
in Central and Eastern Europe. During 1994, 73 percent of 
EBRD's commitments went to the new private sector in the 
region. For the most part, this financing was available only 
through the EBRD.
    As the Committee begins to cut back somewhat on its 
bilateral appropriations for Central Europe, it anticipates 
that market-rate credits from multilateral institutions such as 
the EBRD and the IBRD can finance the economic growth that is 
needed to support democracy and free markets in the region.

                    North American Development Bank

                            Paid-in capital
Fiscal 1995 level.......................................              $0
Fiscal 1996 request.....................................      56,250,000
Committee recommendation................................      56,250,000
                    (Limitation on callable capital)
Fiscal 1995 level.......................................            ($0)
Fiscal 1996 request.....................................   (318,750,000)
Committee recommendation................................   (318,750,000)

    The North American Development Bank was created and is 
governed by the United States and Mexico as part of the North 
American Free Trade Agreement. This is the first year the 
funding has been requested in this bill; an initial U.S. 
investment to mobilize NADBank was directly appropriated in the 
NAFTA Implementation Act.
    The NADBank is unique among the multilateral development 
banks, as it is specifically designed to fund projects that 
will have either a direct or indirect impact on the United 
States and its citizens. It was designed to provide between 
$2,000,000,000 and $3,000,000,000 in financing for high 
priority environmental infrastructure projects, ninety percent 
of which are within 60 miles of the border and ten percent 
elsewhere when directly tied to NAFTA-related job displacement.
    The primary purpose of NADBank is to finance environmental 
infrastructure projects along the U.S.-Mexican border, 
particularly in the areas of wasterwater treatment, drinking 
water, and municipal solid waste. Only projects certified by 
the U.S.-Mexican Border Environment Cooperation Commission, a 
new institution designed to assist border states and local 
communities in coordinating border clean-up, will be eligible 
for NADBank financing.
    The Committee notes that concerns have been raised about 
the ability of Mexico to provide its share of the agreed 
financing schedule because of its fiscal and financial crisis. 
It is making an exception for the NADBank from its general 
policy in this bill of holding down MDB appropriations to the 
fiscal 1995 level. The Committee is providing the request of 
$56,250,000 in anticipation that Mexico will do the same.

                      International Monetary Fund

      Contribution to the enhanced structural adjustment facility
Fiscal 1995 level.......................................     $25,000,000
Fiscal 1996 request.....................................      25,000,000
Committee recommendation................................               0

    The Committee is unable to recommend any funding in fiscal 
1996 for the Enhanced Structural Adjustment Facility of the 
International Monetary Fund. The President requested 
$25,000,000 for this purpose, the same as the level provided in 
fiscal year 1995.
    Last year the Committee did not recommend funding for this 
program for a number of reasons that are explained at length in 
House Report 103-524. Although the Committee in other titles 
has attempted to shield activities in Africa from the full 
impact of its lower 602(b) allocation, it cannot underwrite 
additional IMF activity in Africa.
                International Organizations and Programs
Fiscal year 1995 level..................................    $374,000,000
Fiscal year 1996 request................................     425,000,000
Committee recommendation................................     155,000,000

    The Committee is recommending $155,000,000 for 
International Organizations and Programs. This is $219,000,000 
below the fiscal year 1995 level and $270,000,000 below the 
President's request. However, the Committee has shifted 
$100,000,000 for a grant to UNICEF from this account to ``Child 
Survival and Disease Programs Fund'' under title II. Therefore, 
on a comparable basis, the recommendation is $119,000,000 below 
the 1995 level.
    The Committee recommendation includes bill language carried 
in the 1995 appropriations act that limits funding for the 
United Nations Population Fund (UNFPA) to a maximum level 
($25,000,000, compared to $50,000,000 in 1995); states that 
none of the funds provided to UNFPA shall be made available for 
activities in China; and conditions a portion of the funds 
provided for UNFPA on a report indicating the amount of funds 
being programmed by the organization for work in China.
                                 china

    The Committee is deeply concerned about the continued 
deterioration of human rights in China and Tibet. Systematic 
abuses, documented by independent human rights monitoring 
groups and the U.S. State Department, include torture and ill-
treatment; tightened controls on basic freedoms of expression 
and association; the arbitrary detention of political, 
religious and labor activists; the use of forced labor to 
produce goods for export; and the arrests of scores of monks 
and nuns in Tibet. The Committee notes that the Administration, 
when announcing the renewal of MFN for China on June 2, 1995, 
acknowledged that it could not say that delinking of MFN has 
produced progress in human rights. The Administration said, 
``We are disappointed that it hasn't.'' (Winston Lord, 
Assistant Secretary of State for East Asian and Pacific 
Affairs). The Committee urges the Administration to call on the 
Chinese government to release immediately and unconditionally 
Wei Jingsheng, Tong Yi, Bao Tong and all those detained since 
mid-May 1995 due to their involvement in drafting or signing 
petitions calling for greater political openness and the rule 
of law.
    The Committee is also concerned about the future of 
democracy and human rights in Hong Kong, where the rule of law 
now prevails, along with freedom of the press and respect for 
the right of citizens to express freely their views. These have 
been key ingredients in Hong Kong's economic growth. However, 
the Chinese government has threatened to ignore the Joint 
Declaration and to overturn its obligations to ensure a local 
court of Final Appeal, an elected legislature, and legal 
guarantees for fundamental liberties after the 1997 transition. 
The Committee reaffirms the support of Congress, as expressed 
in the U.S.-Hong Kong Policy Act of 1992, for the full 
implementation of the provisions of the Joint Declaration and 
reminds the Administration that the Act requires the United 
States to play ``an active role'' in supporting the protection 
of human rights and democracy in Hong Kong.
    The Committee believes there may be merit in developing a 
Commission on Human Rights in the Pacific (CHRP) whose 
functions and methods of operation would be modelled on the 
congressionally established Commission on Security and 
Cooperation in Europe. The mandate of the CHRP would be to 
monitor compliance of states in the Pacific Rim with 
international human rights instruments to which the United 
States and the countries concerned are both parties. The 
Committee directs the Secretary of State to examine the 
feasibility of such a proposal, particularly whether Asian 
countries would be interested in such an approach, and report 
back to the Committees on Appropriations no later than April 1, 
1996.

                      organization funding levels

    The Committee is aware that the recommended funding level 
will require reductions in our contributions to many 
organizations. However, the highest priority should be given to 
funding the budget request for the International Atomic Energy 
Agency (IAEA). In addition, the Committee is supportive of the 
work performed by the United Nations Voluntary Fund for Victims 
of Torture, the United Nations Capital Development Fund 
(UNCDF), and the International Union for the Conservation of 
Nature (IUCN), and urges that these organizations be funded at 
close to the level provided in fiscal year 1995. The Committee 
is also supportive of the United Nations Development Program, 
and urges that it be funded at the highest level possible.

            korean peninsula energy development organization

    The Committee included language which provides that up to 
$13,000,000 may be made available for the administrative 
expenses and heavy fuel oil contributions of the United States 
to the Korean Peninsula Energy Development Organization (KEDO). 
The Committee did not specifically appropriate the $9,000,000 
requested by the President for the KEDO's support of the 
lightwater reactors provided for under the Framework Agreement, 
but it did provide that if the administration chooses to use 
additional funds from this account to support KEDO activities, 
the additional funds are subject to the regular notification 
procedures of the Committees on Appropriations. The committee 
did not waive the nine statutory provisions which currently 
prohibit the provision of assistance to North Korea (Sec. 
307(a), Sec. 620A and Sec. 620(f) of the Foreign Assistance 
Act, as amended; Sec. 506, Sec. 507, Sec. 516, Sec. 523, Sec. 
530, of the Foreign Operations Appropriations Act, P.L. 103-
306; and Sec. 530 of the Foreign Relations Authorizations Act, 
P.L. 103-236).

                      TITLE V--GENERAL PROVISIONS

    The Committee recommends that many of the general 
provisions carried in the fiscal year 1995 bill be dropped. 
These provisions are either addressed elsewhere in permanent 
law, have been considered by the authorizing Committee, or are 
no longer necessary.
    The Committee has recommended the following new and revised 
general provisions.
        prohibition against direct funding for certain countries

    The Committee has revised section 507, that prohibits 
direct funding to selected countries, by adding that, 
notwithstanding any other provision of law, Azerbaijan shall be 
eligible to receive humanitarian and democracy assistance under 
title II of this Act.

                       transfers between accounts

    The Committee has revised section 509 to exempt transfers 
specifically provided for in this Act from the consultation, 
written policy justification, and regular notification 
procedure requirements that apply to all other transfers 
between accounts.
                  deobligation/reobligation authority

    The Committee has updated the authority of section 510 for 
another fiscal year regarding its application to bilateral 
economic assistance funds under title II. The Committee has 
deleted the authority for FMF since the administration did not 
request funds for this purpose.

                         availability of funds

    The Committee has updated the authority of section 511 
adding East European assistance and assistance to the New 
Independent States to the list of programs for which funds are 
available until expended if the funds were initially obligated 
before the expiration of their periods of availability 
contained in this Act.

                           commerce and trade

    The Committee has revised section 513 by deleting 
subsection (c) that prohibited AID from using funds for 
specified purposes related to import-sensitive articles defined 
in section 503(c)(1) (A) and (E) of the Tariff Act of 1930.

                          surplus commodities

    The Committee has updated section 514 to add reference to 
the North American Development Bank to the list of 
international financial institutions covered under this 
provision.

                       notification requirements

    The bill continues the existing provision on congressional 
notifications in section 515. The text has been updated to 
reflect changes in the bill account structure.

limitation on availability of funds for international organizations and 
                                programs

    The Committee has updated section 516 and deleted the 
prohibitions on assistance to the United Nations and any U.N. 
affiliated organization which grants membership as a state to 
any organization or group that does not have the 
internationally recognized attributes of statehood.

              economic support fund assistance for israel

    The Committee has revised section 517 by making the 
congressional declaration regarding Economic Support Funds for 
Israel subject to the availability of appropriations.

     prohibition concerning abortions and involuntary sterilization

    The Committee continues the existing prohibition in section 
518 on funding for abortions and involuntary sterilization. The 
provision has been updated by deleting reference to Population, 
Development Assistance, since the account is not included in 
the bill.

                   special notification requirements

    The Committee has revised section 520, which requires prior 
notification through the Committee's fifteen day notification 
process, by dropping El Salvador, Pakistan, and Rwanda from the 
notification requirements of this section and adding Russia. 
Development assistance for Indonesia is also exempt from this 
notification requirement.

                   child survival and aids activities

    The Committee has revised section 522 by deleting a proviso 
regarding personnel detailed prior to October 1, 1994.

                           reciprocal leasing

    The Committee has revised section 524 on reciprocal leasing 
to change the effective date from 1995 to 1996.

                       authorization requirement

    The Committee has revised section 526, which last year 
waived authorization requirements, to require authorization 
prior to obligating funds appropriated in the bill.

                          debt-for-development

    The Committee continues section 530 allowing NGOs to 
deposit in interest bearing accounts appropriated funds or 
local currencies, and to use any interest earned for the same 
purpose for which the assistance was provided to the 
organizations. Reference to ``title II of this Act'' has been 
substituted in lieu of ``the heading `Agency for International 
Development'.''

                         location of stockpiles

    The Committee has revised section 531 relating to the 
location of stockpiles overseas. The Committee has deleted the 
provision regarding the United States stockpile in Israel since 
it has been completed. The Committee continues the 
authorization for the addition to stockpiles of up to 
$40,000,000 for the Republic of Korea and up to $10,000,000 for 
Thailand.

                           separate accounts

    The Committee has updated the requirement of section 532 
concerning separate accounts for local currencies by deleting 
reference to the Philippine Multilateral Assistance Initiative.

           compensation for u.s. executive directors to ifis
    The Committee has updated section 533 by adding the North 
American Development Bank to the list of IFIs named in the 
provision.

                       POW/MIA military drawdown

    The Committee has revised section 535, which permits the 
drawdown of U.S. military equipment related to POW/MIA 
activities, to extend the drawdown authority for another fiscal 
year. The Committee has deleted the authorization provision in 
this section.

                 Mediterranean excess defense articles

    The Committee has revised section 536, which requires that 
excess defense equipment provided to Greece and Turkey be 
provided on a 7 to 10 basis, by continuing the application of 
section 573(e) of the FY 1990 Foreign Operations Appropriations 
Act during fiscal year 1996.

                 authority to assist bosnia-herzegovina

    The Committee extends section 540, which provides 
permissive authority for the drawdown of United States military 
equipment for Bosnia-Herzegovina, for another fiscal year. The 
Committee has revised section 546 by making the authority 
subject to prior notification to the Committee rather than 
being subject to the Committee's regular notification 
procedures. The Committee has also deleted the requirement 
included in the Presidential certification that U.S. allies are 
prepared to join in a military assistance effort.

                          special authorities

    The Committee has updated the special authorities contained 
in section 541 to continue them for another fiscal year. The 
President's contingency authority is reduced from $50 million 
to $40 million.

        policy on terminating the arab league boycott of israel

    The Committee has revised section 542 by deleting the 
congressional findings regarding the Arab League boycott of 
Israel.

                       anti-narcotics activities

    The Committee has revised section 543 to continue the 
authority for another fiscal year except with respect to 
Panama.

                       eligiblity for assistance

    The Committee has revised section 544 to continue the 
authority for another fiscal year. Reference to section 529 of 
the Act (concerning the prohibition of aid to terrorist 
countries) has been changed to section 620A of the Foreign 
Assistance Act which is the prohibition in permanent law 
banning aid to terrorist states.

                                ceilings

    The Committee has renamed the title of section 545.

                        excess defense articles

    The Committee has revised section 546 to continue the 
authority in fiscal year 1996, except for the notwithstanding 
waiver regarding excess defense articles for natural resources 
and wildlife management purposes.

                 prohibition on publicity or propaganda

    The Committee has added a prohibition to section 547 on the 
use of funds to carry out section 316 of Public Law 96-533 
concerning development education.

             private voluntary organizations--documentation

    The Committee has revised section 551 by dropping the 
requirement for PVOs to be registered with AID.

 withholding of assistance for parking fines owed by foreign countries

    The Committee has updated section 553 by changing the 
reference to the Foreign Affairs Committee to the International 
Relations Committee.

                 export financing transfer authorities

    The Committee has updated section 555 by deleting the 
provision transferring fiscal year 1994 funds from the Export-
Import Bank to the Overseas Private Investment Corporation and 
to the Trade and Development Agency.

                   nonlethal excess defense articles

    The Committee has updated and revised section 557 by 
allowing the use of DOD funds for packing and transporting 
nonlethal excess defense articles in fiscal year 1996 and by 
applying the authority to countries eligible to participate in 
Partnership for Peace and eligible to receive assistance under 
the SEED Act.

   report on the salaries and benefits of the imf and the world bank

    The Committee has added November 1, 1995 as the date for 
GAO to report to the Committee under section 559 concerning 
salaries and benefits of employees of the IMF and the World 
Bank.

           restrictions concerning the palestinian authority

    The Committee has deleted from section 560 the prohibition 
on meetings in Jerusalem between U.S. officers and employees 
and officials of the Palestinian Authority.

 limitation on assistance to countries that restrict the transport or 
           delivery of united states humanitarian assistance

    The Committee has inserted a new provision, section 562, 
prohibiting assistance provided under the Act to any country 
whose government prohibits or restricts the transport or 
delivery of U.S. humanitarian aid.

                    references to authorization acts

    The Committee has inserted a new provision, section 563, 
indicating the authorization sources within the Foreign 
Assistance Act (and related acts) for the appropriation 
provided under ``Child Survival and Disease Programs Fund'' in 
title II of the bill. These citations are not intended to be 
earmarks, and the authorization reference to UNICEF does not 
preclude the State Department from providing additional funding 
beyond the $100,000,000.

               provisions retained from fiscal year 1995

    The following general provisions from the fiscal year 1995 
bill were retained in the fiscal year 1996 bill unchanged 
except for new section numbers where appropriate:
    Sec. 501. Obligations During Last Month of Availability.
    Sec. 502. Prohibition of Bilateral Funding for 
International Financial Institutions.
    Sec. 503. Limitation on AID Residential Expenses.
    Sec. 504. Limitation on Expenses.
    Sec. 505. Limitation on Representational Allowances.
    Sec. 506. Prohibition on Financing Nuclear Goods.
    Sec. 508. Military Coups.
    Sec. 512. Limitation on Assistance to Countries in Default.
    Sec. 519. Reporting Requirement.
    Sec. 521. Definition of Program, Project, and Activity.
    Sec. 523. Prohibition Against Indirect Funding to Certain 
Countries.
    Sec. 525. Notification on Excess Defense Equipment.
    Sec. 527. Opposition to Assistance to Terrorist Countries 
by IFIs.
    Sec. 528. Commercial Leasing of Defense Articles.
    Sec. 529. Stingers in the Persian Gulf Region.
    Sec. 534. Compliance with UN Sanctions Against Iraq.
    Sec. 537. Cash Flow Financing.
    Sec. 538. Authorities for the Peace Corps, The Inter-
American Foundation and the African Development Foundation.
    Sec. 539. Impact on Jobs in the United States.
    Sec. 548. Use of American Resources.
    Sec. 549. Prohibition of Payments to UN Members.
    Sec. 550. Consulting Services.
    Sec. 552. Prohibition on Assistance to Foreign Governments 
that Export Lethal Military Equipment to Countries Supporting 
International Terrorism.
    Sec. 554. Limitation on Assistance for the PLO for the West 
Bank and Gaza.
    Sec. 556. War Crimes Tribunals.
    Sec. 558. Landmines.
    Sec. 560. Restrictions Concerning the Palestinian 
Authority.
    Sec. 561. Prohibition on Payment of Certain Expenses.

                       MISCELLANEOUS INFORMATION

                   Comparison With Budget Resolution

    Section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), requires 
that the report accompanying a bill providing new budget 
authority contain a statement detailing how the authority 
compares with the reports submitted under Section 602(b) of the 
Act for the most recently agreed to concurrent resolution on 
the budget for the fiscal year. This information follows:

                    Fiscal Year 1996 Appropriations

----------------------------------------------------------------------------------------------------------------
                                              Sec. 602(b)                               This bill               
                               ---------------------------------------------------------------------------------
                                Discretionary   Mandatory      Total     Discretionary   Mandatory      Total   
----------------------------------------------------------------------------------------------------------------
Budget authority..............        12,200            44       12,244        11,998            44       12,042
Outlays.......................        13,900            44       13,944        13,889            44       13,933
----------------------------------------------------------------------------------------------------------------

    The bill provides no new spending authority as described in 
section 401(c)(2) of the Congressional Budget and Impoundment 
Control Act of 1974 (Public Law 93-344), as amended.

                    Five-Year Projection of Outlays

    In compliance with section 308(a)(1)(C) of the 
Congressional Budget Act of 1974 (Public Law 93-344 as 
amended), the following table contains five-year projections 
associated with the budget authority provided in the 
accompanying bill.

                    Fiscal Year 1996 Appropriations
                                                                Millions
Budget authority........................................         $11,998
Outlays.................................................          13,889
Fiscal Year:
    1996................................................           5,912
    1997................................................           2,834
    1998................................................           1,306
    1999................................................             774
    2000 and future years...............................             447

               Assistance to State and Local Governments

    Section 308(a)(1)(D) of the Congressional Budget Act of 
1974 requires that the report accompanying any bill or 
resolution providing new budget authority (other than 
continuing appropriations shall contain a statement of the new 
budget authority and budget outlays provided by that bill or 
resolution for financial assistance to State and local 
governments.
    The amounts recommended in the accompanying bill contain no 
budget authority or budget outlays for State or local 
governments.

                     Inflationary Impact Statement

    Clause 2(l)(4) of rule XI of the Rules of the House of 
Representatives requires that each committee report on a bill 
or resolution shall contain a statement as to whether enactment 
of the bill or resolution would have an inflationary impact on 
prices and costs in the operations of the national economy. The 
reductions in the bill will have a positive impact on reducing 
inflation.

               Changes in the Application of Existing Law

    Pursuant to clause 3, rule XXI of the Rules of the House of 
Representatives, the following statements are submitted 
describing the effects of provisions in the accompanying bill 
which directly or indirectly change the application of existing 
law. Most of the language has been provided in previous 
measures including supplementals for the departments and 
agencies carried in the accompanying bill.
    1. The bill contains appropriations for a number of items 
for which authorizations for fiscal year 1996 have not yet been 
enacted. The bill requires that none of the funds appropriated 
in the bill may be obligated until authorizations have been 
enacted into law.
    2. The bill provides that a few of the appropriations shall 
remain available for obligation beyond the current fiscal year. 
In all cases it is deemed desirable to carry such language in 
order to provide for orderly administration of such programs 
and effective use of funds.
    3. The bill contains a number of general provisions and 
other language which have been carried in the bill in past 
years.
    4. On page 3, under ``Export-Import Bank'', the Committee 
permits up to $100,000,000 be available for tied-aid grants 
purposes.
    5. On pages 4 to 6, under ``Overseas Private Investment 
Corporation'', the corporation is authorized to make 
expenditures, and it is stated that administrative expenses 
shall not include project-specific costs and other related 
cost. In addition, funds are authorized to be derived by 
transfer from the noncredit account. Funds are also authorized 
to be provided for direct loan obligations and loan guarantees. 
Finally, funds are authorized for administrative expenses by 
transfer from the noncredit account.
    6. On page 6, funds are provided for the Trade and 
Development Agency, and the agency is authorized to receive 
reimbursements from corporations and other entities to cover 
the costs of grants for feasibility studies and other project 
planning services, to be deposited as an offsetting collection 
and to be available for obligation until September 30, 1997, 
for necessary expenses. However, funds would not be available 
to cover the direct or indirect costs of administration.
    7. On page 7, under ``Contribution to the International 
Finance Corporation'', the Committee limits the amount that can 
be used to purchase capital stock and appropriates $67,550,000.
    8. On page 8, a new account has been added providing 
$484,000,000 for ``Child Survival and Disease Programs Fund''.
    9. On pages 9 and 10, under ``Development Assistance 
Fund'', the Committee provides that not to exceed $15,500,000 
may be transferred to ``Debt restructuring'', subject to the 
regular notification procedures of the Committee.
    10. On page 10, under the heading ``Development Assistance 
Fund'', the Committee has provided that not to exceed 
$15,000,000 may be transferred to ``International Organizations 
and Programs'' for a contribution to the International Fund for 
Agricultural Development (IFAD).
    11. On page 9, the bill contains provisions relating to 
abortion that were carried in the 1995 act.
    12. On page 10, under ``Development Fund for Africa'', the 
Committee has continued the prohibition on the transfer of 
development assistance to the Government of Zaire. The 
application of this provision should be the same as in prior 
fiscal years.
    13. On page 11, under ``Private and Voluntary 
Organizations'', the Committee includes a provision that funds 
appropriated under title II should be made available to PVOs at 
a level which is equivalent to the level provided in fiscal 
year 1995. It also continues provisions continued from last 
year on minimum funds from private sources.
    14. On page 12, under ``International Disaster 
Assistance'', funds are made available for rehabilitation and 
reconstruction assistance.
    15. On page 12, under ``Debt restructuring'', funds are 
made available for modifying direct loans and loan guarantees, 
including the cost of selling, reducing, or canceling amounts, 
through debt buybacks and swaps, owed to the United States as a 
result of concessional loans made to eligible Latin American 
and Caribbean countries.
    16. On pages 12 and 13, funds are provided for micro and 
small enterprise direct loans and loan guarantees, and 
administrative expenses are appropriated which may be 
transferred to the operating expenses account of the Agency for 
International Development.
    17. On page 13, funds are appropriated for the 
administrative costs of the housing guaranty program, and such 
funds may be transferred to the operating expenses account of 
the Agency for International Development.
    18. On pages 13 and 14, under ``Operating Expenses of the 
United States Agency for International Development'', the 
Committee has placed a ceiling of $1,475,000 on the amount of 
such funds that can be used to pay printing costs.
    19. On page 14, under ``Operating Expenses of the United 
States Agency for International Development'', the Committee 
has provided $29,925,000 for the costs of terminating or 
phasing down programs, activities, and operations of the 
Agency. Such funds cannot be used for any other purpose, and 
the AID Administrator shall report to the Committee on the use 
of the funds prior to obligation. The Committee has also 
included a provision that by Sept. 30, 1997 the use of such 
funds should result in a reduction of 500 FTEs from the level 
existing on April 30, 1995.
    20. On page 15, under ``International Fund for Ireland'', 
up to $19,600,000 is provided, which shall be expended at the 
minimum rate necessary to make timely payment for projects and 
activities.
    21. On page 16, under ``Assistance to Eastern Europe and 
the Baltic States'', funds are provided notwithstanding any 
other provision of law for economic assistance; authority is 
provided for enterprise funds to deposit monies in interest-
bearing accounts without the requirement that such interest be 
returned to the Treasury and without further appropriation by 
the Congress; and funds are made available as if they were 
considered economic assistance under the Foreign Assistance 
Act.
    22. On pages 17 to 19, under ``Assistance for the New 
Independent States of the Former Soviet Union'', the Committee 
has included a provision that the ratio of private sector 
investment to U.S. government assistance in private sector 
projects funded in this Act shall be no less than a ratio of 
1.5 to 1, and other legislative provisions.
    23. On pages 20 and 21, under ``International Narcotics 
Control'', the Department of State is provided the authority to 
use section 608 of the Foreign Assistance Act, without regard 
to its limitations, to receive non-lethal excess property from 
an agency of the United States government for the purpose of 
providing it to a foreign country, subject to notification of 
the Committees on Appropriations.
    24. On page 21, funding is provided for ``Migration and 
Refugee Assistance'', and a limitation of $12,000,000 is 
provided for administrative expenses.
    25. On page 22, under ``United States Emergency Refugee and 
Migration Assistance Fund'', funds are provided notwithstanding 
the limitations contained in section 2(c)(2) of the Migration 
and Refugee Assistance Act of 1962.
    26. On pages 22 and 23, under ``Nonproliferation and 
Disarmament Fund'', funds are made available to 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; funds are made available 
notwithstanding any other provision of law; and the use of 
funds is made subject to the notification procedures of the 
Committees on Appropriations.
    27. On pages 23 and 24, under ``International Military 
Education and Training'', the Committee limits to $100,000 the 
amount of funds available for grant financed military education 
and training for any high income country, and provides IMET for 
Indonesia and Guatemala only for expanded military education 
and training.
    28. On pages 24 to 28, under ``Foreign Military Financing 
Program'', the Committee has provided that not to exceed 
$475,000,000 in FMF grants shall be available for the 
procurement in Israel of defense articles and defense services, 
that FMF grants for any non-NATO country participating in the 
Partnership for Peace Program shall be subject to the 
Committee's regular notification procedures, and that FMF loans 
for Greece and Turkey shall not exceed $224,000,000 and 
$320,000,000, respectively and included other provisions.
    29. On page 29, funds are made available for the United 
States share of the paid-in portion of the increases in capital 
stock for the General Capital Increase of the International 
Bank for Reconstruction and Development and a limitation is 
placed on callable capital subscriptions.
    30. On page 30, funds are made available for the United 
States share of the paid-in portion of the increase in capital 
stock of the Inter-American Development Bank and a limitation 
is placed on callable capital subscriptions.
    31. On pages 30 and 31, funds are made available for the 
United States share of the paid-in portion of the increase in 
capital stock of the Asian Development Bank and a limitation is 
placed on callable capital subscriptions.
    32. On page 31, under ``Contribution to the European Bank 
for Reconstruction and Development'', the Committee has limited 
to $54,600,000 the amount appropriated that may be expended for 
the purchase of stock during fiscal year 1996 and placed a 
limit on callable capital.
    33. On page 32, the Committee has added a new account for 
the ``North American Development Bank'' and placed a limit on 
callable capital.
    34. On pages 32 and 33, under ``International Organizations 
and Programs'', the Committee has prohibited and conditioned 
the funding of certain organizations and programs.
    35. On pages 32 and 33, under ``International Organizations 
and Programs'', the Committee provides that not more than 
$25,000,000 shall be available for UNFPA, half of which is only 
available before March 1, 1996, and that any amount above 
$7,000,000 UNFPA plans to spend in China in 1996 shall be 
deducted from amounts provided UNFPA after March 1, 1996.
    36. On pages 33 and 34, under ``International Organizations 
and Programs'', the Committee provides that up to $13,000,000 
may be made available to the KEDO for administrative expenses 
and heavy fuel oil costs, and that additional funds for KEDO 
shall be subject to the Committee's regular notification 
procedures.
    37. On pages 34 through 78, under ``General Provisions'':
    Sec. 507, regarding prohibitions against direct funding for 
certain countries, is revised to provide that, notwithstanding 
any provision of law, Azerbaijan shall be eligible for 
humanitarian and democracy-building assistance under title II.
    Sec. 509, regarding transfers between accounts, is revised 
to exempt transfers specifically provided for in this Act from 
the notification procedures.
    Sec. 510, regarding deob/reob authority, has been updated. 
The authority for FMF has been deleted.
    Sec. 511 regarding the availability of funds, has been 
updated to include East European assistance and assistance to 
the New Independent States.
    Sec. 513 has been revised by deleting subsection (c) that 
prohibited AID from using funds for specified purposes related 
to import-sensitive articles.
    Sec. 514, regarding surplus commodities and international 
financial institutions activities, has been updated to include 
the North American Development Bank.
    Sec. 515 continues the provision for congressional 
notification requirements, updating it to reflect the new bill 
account structure.
    Sec. 516 has been revised by deleting the prohibition on 
assistance to the U.N. or U.N. affiliated organizations that 
grant membership as a state to any organization or group that 
does not have internationally recognized attributes of 
statehood.
    Sec. 517, regarding Economic Support Fund assistance for 
Israel, has been revised making the congressional declaration 
subject to the availability of appropriations.
    Sec. 518 continues the existing prohibition on funding for 
abortion and involuntary sterilization, and deletes reference 
to the Population, Development Assistance account that is no 
longer in the bill.
    Sec. 520, has been revised by dropping El Salvador, 
Pakistan, and Rwanda from the notification requirements of this 
section, adding Russia, and exempting development aid for 
Indonesia.
    Sec. 522 has been revised by deleting a proviso regarding 
personnel detailed prior to October 1, 1994.
    Sec. 524, regarding reciprocal leasing has been updated.
    Sec. 526, has been revised to require authorization.
    Sec. 530 continues the authority in debt-for-development 
programs for NGOs to deposit funds in interest bearing accounts 
and using the interest earned and substitutes a reference to 
``title II of this Act'' in lieu of ``the heading `Agency for 
International Development'.''
    Sec. 531 continues the authority for the United States to 
stockpile up to $40,000,000 for the Republic of Korea and up to 
$10,000,000 for Thailand and deletes language regarding Israel 
since that stockpile has been completed.
    Sec. 532, regarding separate accounts, has been updated by 
deleting reference to the Philippine Multilateral Assistance 
Initiative.
    Sec. 533 limiting compensation for U.S. Executive Directors 
to International Financial Institutions has been updated by 
adding reference to the North American Development Bank.
    Sec. 535, continues POW/MIA military drawdown authority and 
deletes the authorization of appropriations provision.
    Sec. 536, continues the application of section 573(e) of 
the fiscal year 1990 foreign operations appropriations act, 
regarding Mediterranean excess defense articles, during fiscal 
year 1996.
    Sec. 540, continues the drawdown authority for defense 
articles for Bosnia-Hercegovina for another fiscal year and 
adds a prior notification requirement in lieu of a requirement 
to notify under the Committee's regular notification 
procedures. A requirement as part of a Presidential 
certification that U.S. allies are prepared to join in a 
military assistance effort has been deleted.
    Sec. 541, continues special authorities in prior year 
legislation and reduces the President's contingency authority 
to $40 million, consistent with authorization legislation.
    Sec. 542 has been revised by deleting the congressional 
findings regarding the Arab League boycott of Israel.
    Sec. 543, regarding anti-narcotics activities, is continued 
except with regard to the specific reference to Panama.
    Sec. 544, regarding eligibility for assistance, has been 
continued and the reference to law prohibiting aid to terrorist 
countries has been changed to the permanent law citation of 
section 620A of the Foreign Assistance Act.
    Sec. 545 has been renamed ``Ceilings.''
    Sec. 546, regarding excess defense articles, has been 
continued for fiscal year 1996 and the provision relating to 
articles for natural resources and wildlife management purposes 
has been deleted.
    Sec. 547, prohibiting funds for publicity or propaganda, 
has been revised to prohibit funds to carry out section 316 of 
P.L. 96-533.
    Sec. 551, regarding PVO documentation, has been revised by 
deleting the requirement for PVOs to be registered with AID.
    Sec. 553 has been updated changing the reference to the 
Foreign Affairs Committee to the International Relations 
Committee.
    Sec. 555, regarding export financing transfer authorities, 
has been revised by deleting transfer provisions related to 
fiscal year 1994 funds.
    Sec. 557 continues the authority allowing DOD to pay for 
packing and transporting nonlethal excess defense articles and 
broadens the scope of eligible countries to those nations 
eligible for Partnership for Peace and eligible to receive SEED 
Act assistance.
    Sec. 559, requiring a GAO report on IMF and World Bank 
salaries and expenses, has been revised by adding November 1, 
1995 as the due date for the report.
    Sec. 562 inserts new language prohibiting assistance to any 
country, the government of which prohibits or restricts the 
transport or delivery of United States humanitarian assistance.
    Sec. 563 inserts new language indicating the authorization 
sources within the Foreign Assistance Act (and related acts) 
for the appropriation provided under ``Child Survival and 
Disease Programs Fund'' in title II of the bill. These 
citations are not intended to be earmarks, and the 
authorization reference to UNICEF does not preclude the State 
Department from providing additional funding beyond the 
$100,000,000.

                  COMPLIANCE WITH RULE XIII--CLAUSE 3

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman).

                           reciprocal leasing

    The accompanying bill would amend section 61(a) of the Arms 
Export Control Act or extend the leasing authority of that 
section through fiscal year 1996, as follows:
    Sec. 61. Leasing Authority.--(a) The President may lease 
defense articles in the stocks of the Department of Defense to 
an eligible foreign country or international organization if--
          (1) he determines that there are compelling foreign 
        policy and national security reasons for providing such 
        articles on a lease basis rather than on a sales basis 
        under this Act;
          (2) he determines that the articles are not for the 
        time needed for public use;
          (3) the President first considers the effects of the 
        lease of the articles on the national technology and 
        industrial base, particularly the extent, if any, to 
        which the lease reduces the opportunities of entities 
        in the national technology and industrial base to sell 
        new equipment to the country or countries to which the 
        articles are leased; and
          (4) the country or international organization has 
        agreed to pay in United States dollars all costs 
        incurred by the United States Government in leasing 
        such articles, including reimbursement for depreciation 
        of such articles while leased, the costs of restoration 
        or replacement cost (less any depreciation in the 
        value) if the articles are lost or destroyed while 
        leased.
    The requirement for paragraph (4) shall not apply to leases 
entered into for purposes of cooperative research or 
development, military exercises, or communications or 
electronics interface projects, or to any defense article which 
has passed three-quarters of its normal service life.
    The President may waive the requirement of paragraph (4) 
with respect to a lease which is made in exchange with the 
lessee for a lease on substantially reciprocal terms of defense 
articles for the Department of Defense, except that this waiver 
authority
          (A) may be exercised only if the President submits to 
        the Committee on Foreign Affairs and the Committee on 
        Appropriations of the House of Representatives and the 
        Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate, in accordance with the 
        regular notification procedures of those Committees, a 
        detailed notification for each lease with respect to 
        which the authority is exercised; and
          (B) may be exercised only during the fiscal year 
        [1995] 1996 and only with respect to one country, 
        unless the Congress hereafter provides otherwise.

                         location of stockpiles

    The accompanying bill would amend section 514(b) of the 
Foreign Assistance Act of 1961, as follows:
    (b)(1) The value of defense articles to be set aside, 
earmarked, reserved, or intended for use as war reserve stocks 
for allied or other foreign countries (other than for purposes 
of the North Atlantic Treaty Organization) in stockpiles 
located in foreign countries may not exceed in any fiscal year 
an amount that is specified in security assistance authorizing 
legislation for that fiscal year.
    (2) The value of such additions to stockpiles in foreign 
countries shall not exceed [a total of $200,000,000 for 
stockpiles in Israel for fiscal years 1994 and 1995, up to 
$40,000,000 may be made available for stockpiles in the 
Republic of Korea, and up to $10,000,000 may be made available 
for stockpiles in Thailand for fiscal year 1995] $40,000,000 
for stockpiles in the Republic of Korea and $10,000,000 for 
stockpiles in Thailand for fiscal year 1996.
                  Appropriations Not Authorized by Law

    Pursuant to clause 3 of rule XXI of the House of 
Representatives, the following table lists the appropriations 
in the accompanying bill which are not authorized by law:
        Export-Import Bank tied-aid grants
        Development Assistance Fund
        Child Survival and Disease Programs Fund
        Development Fund for Africa
        International Disaster Assistance
        Debt Restructuring (except for Export-Import Bank)
        Micro and Small Enterprise Development Program
        Housing and Other Credit Guarantee Program 
        administrative 
          expenses
        AID Operating Expenses, including Downsizing Account
        AID Operating Expenses, Office of Inspector General
        Economic Support Fund
        International Fund for Ireland
        Assistance for Eastern Europe and the Baltics
        Assistance for the New Independent States of the 
        Former 
          Soviet Union
        African Development Foundation
        Peace Corps
        International Narcotics Control
        Inter-American Foundation
        Refugee Resettlement Assistance
        Migration and Refugee Assistance
        Anti-Terrorism Assistance
        Nonproliferation and Disarmament Fund
        International Military Education and Training
        Foreign Military Financing Program
        Peacekeeping Operations
        Asian Development Bank
        Global Environment Fund
        International Development Association (part)
        International Organizations and Programs
    The Committee notes that most authorizations for 
appropriations in this bill are contained in H.R. 1561, passed 
by the House on June 8, 1995 and H.R. 1667, reported to the 
full Committee on Banking and Financial Services by its 
Subcommittee on Domestic and International Monetary Policy on 
May 25, 1995.




















MINORITY VIEWS OF HON. CHARLES WILSON, HON. SIDNEY R. YATES, HON. NANCY 
       PELOSI, HON. ESTEBAN EDWARD TORRES, AND HON. DAVID R. OBEY

    Over the past ten years the Foreign Operations Subcommittee 
has seen a major transition in both the political situation in 
the world and how foreign assistance and export programs can 
best address these changes. The Appropriations Committee has 
been at the forefront in initiating reform by guiding the new 
direction in foreign assistance following the end of the Cold 
War. The Committee has also brought about the reduction of 
foreign aid from a level of more than $18 billion 10 years ago 
to $13.6 billion last year.
    We are supporting this bill in the House in the hope that 
improvements will be made as the bill moves through the 
legislative process. We do not agree with the division of funds 
in the bill between economic, military and development funding. 
Further changes between these areas will result in a bill with 
wider support in Congress and will in the long term be in the 
best interest of the United States.
    We are also particularly concerned that the Administration 
did not request funding through the Foreign Operations 
Subcommittee for nuclear safety programs in the Former Soviet 
Union. Funds were instead requested under the Energy 
Subcommittee. However, that Subcommittee has not included 
funding for fiscal year 1996, and there is none in the Foreign 
Operations bill. This is an oversight that needs to be 
corrected in order to avoid future Chernobyls.

                                   Charles Wilson.
                                   Sidney R. Yates.
                                   Nancy Pelosi.
                                   Esteban Edward Torres.
                                   David R. Obey.