[House Report 104-600]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-600
_______________________________________________________________________


 
      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                       APPROPRIATIONS BILL, 1997

                                _______


  May 29,1996.--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

                        [To accompany H.R. 3540]

    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, 1997, and 
for other purposes.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                               Page

                                                            Bill Report
Summary of bill
        Foreign Assistance in a Changing World.............
                                                                      3
Committee Recommendations..................................
                                                                      7
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
Title II--Bilateral Economic Assistance:
        Child Survival and Disease Programs Fund...........     6
                                                                     11
        Development Assistance.............................     7
                                                                     11
        Development Fund for Africa........................
                                                                     23
        International Disaster Assistance..................    10
                                                                     23
        Debt Restructuring.................................    11
                                                                     24
        Micro and Small Enterprise Development Program.....    11
                                                                     25
        Housing and Other Credit Guaranty Program..........    12
                                                                     25
        Payment to the Foreign Service Retirement and 
            Disability Fund................................    13
                                                                     26
        AID Operating Expenses.............................    13
                                                                     26
        Operating Expenses of the Agency for International 
            Development--Office of the Inspector General...    14
                                                                     26
        Economic Support Fund..............................    15
                                                                     27
        International Fund for Ireland.....................    15
                                                                     30
        Assistance for Eastern Europe and the Baltics......    15
                                                                     31
        Assistance for the New Independent States of the 
            Former Soviet Union............................    17
                                                                     32
Independent Agencies:
        African Development Foundation.....................    22
                                                                     36
        Inter-American Foundation..........................    23
                                                                     36
        Peace Corps........................................    23
                                                                     36
State Department:
        International Narcotics Control....................    24
                                                                     37
        Migration and Refugee Assistance...................    24
                                                                     37
        Refugee Resettlement Assistance....................    25
                                                                     39
        Emergency Refugee and Migration Assistance Fund....    25
                                                                     39
        Nonproliferation and Disarmament Fund..............
                                                                     39
        Nonproliferation, Anti-terrorism, Demining and 
            Related Programs...............................    26
                                                                     40
Title III--Military Assistance:
        International Military Education and Training......    27
                                                                     42
        Foreign Military Financing Program.................    28
                                                                     43
        Special Defense Acquisition Fund...................
                                                                     46
        Peacekeeping Operations............................    31
                                                                     47
Title IV--Multilateral Economic Assistance:
        International Financial Institutions Summary.......
                                                                     47
        International Bank for Reconstruction and 
            Development (IBRD).............................    32
                                                                     48
        Global Environment Fund............................    32
                                                                     48
        International Finance Corporation (IFC)............    33
                                                                     50
        International Development Association (IDA)........
                                                                     49
        Inter-American Development Bank (IDB)..............    33
                                                                     51
        Multilateral Investment Fund.......................    34
                                                                     51
        Asian Development Bank (ADB).......................    34
                                                                     51
        Asian Development Fund (ADF).......................    34
                                                                     52
        African Development Fund (AFDF)....................
                                                                     52
        European Bank for Reconstruction and Development 
            (EBRD).........................................    35
                                                                     53
        North American Development Bank (NADBank)..........    35
                                                                     53
        Bank for Economic Cooperation and Development in 
            the Middle East and North Africa...............
                                                                     54
        Enhanced Structural Adjustment Facility............
                                                                     54
Department of State:
        International Organizations and Programs...........    36
                                                                     54
Title V--General Provisions................................    37
                                                                     55
Miscellaneous Information:
        Comparison with budget resolution..................
                                                                     61
        Five-year projection of outlays....................
                                                                     61
        Assistance to State and local governments..........
                                                                     62
        Inflationary impact statement......................
                                                                     62
        Changes in the application of existing law.........
                                                                     62
        Compliance with rule XIII--clause 3................
                                                                     67

                          Summary of the Bill

    The Committee has recommended foreign assistance and export 
financing funding at a level that is $1,003,740,100 below the 
Administration's fiscal year 1997 request in discretionary 
budget authority. The resulting total of $11,949,743,710 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 $256,290 below the Committee's fiscal year 1997 
602(b) allocation for discretionary budget authority, and 
consumes almost all of its allocation for outlays.

                 Foreign Assistance in a Changing World

          continued retooling and restructuring of foreign aid

    The Committee notes that revolutionary changes continue to 
sweep the globe, as they have since 1989. The demise of 
communism now appears less final than once thought, and the 
broad collapse of authoritarianism continues to be resisted in 
China and Vietnam. Other developments are more welcome. The 
trend toward democracy continues in Latin America and Africa, 
with some notable exceptions, such as Cuba. The intellectual 
victory of the free market system is tempered by local 
experience and the sometimes absence of the responsible self-
restraint that sustained capitalism during most of this 
century.
    The Committee continues to believe 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. That has not happened, 
although the International Relations Committee and Secretary of 
State have attempted to begin this process.
    The Committee notes, as it did last year, 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 continues 
this review, it by no means finishes it. The road ahead will be 
an arduous one and the decisions facing the Committee will be 
increasingly difficult, particularly if mandatory programs 
continue to evade scrutiny. Our actions in the area of foreign 
assistance 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 roads 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 continues to be restricted, 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 assistance budget 
are being significantly reduced. As a result, for a second 
year, funding levels for child survival and efforts to combat 
infectious diseases are increased over the prior year's level. 
Equally important, the Committee is again recommending a 
separate account for these activities, the Child Survival and 
Disease Programs Fund. This special account, which includes 
basic education for children, will be funded at $600,000,000 in 
fiscal year 1997. 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 commends AID for taking 
the initiative to withdraw from certain countries that have 
sufficient resources and support from other developed nations. 
The Committee also believes AID, in consultation with Congress, 
must continue the process of withdrawing fully staffed missions 
from countries 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. It 
does not believe that Middle East peace requirements can be 
permitted to crowd out all other foreign policy and 
humanitarian programs.
    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 supports the Administration's full 
request for $1.8 billion for military assistance and $1.2 
billion for economic assistance for fiscal year 1997. 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 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 date to suggest that it has had a far-
reaching and positive effect on Russia's transition toward a 
free-market democracy. Indeed, some Russians assert that it 
derailed that transition. Furthermore, on the eve of critical 
elections in Russia, tensions in our bilateral relations are of 
great concern to the Committee.
    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 limited importance in 
determining Russia's destiny. More than many realized in 1993, 
Russia's future is in its own hands. Using the backlog of 
appropriations from the 1994, 1995 and 1996 appropriations 
acts, combined with the smaller amount of funds appropriated in 
this Act, the Committee recommends a smaller program of 
assistance, limited to the people and regions of Russia willing 
to encourage Russian democrats and entrepreneurs, that will 
best serve American national interests.
    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. The major recipient of aid in the region this 
year is Bosnia, for which $200 million is requested. As a 
result, the Committee recommendation for the region remains 
higher than anticipated last year prior to the Dayton Accords.

   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 remains a high priority for the 
Committee. The Committee continues to strongly support the 
President's request to help the Central and East European 
states develop the means to participate productively in the 
European security environment.

        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 separate international disaster assistance program was 
funded at a level of $181 million in fiscal year 1996. However, 
the Committee sees little prospect that this program can be 
reduced significantly in the near term. Therefore, the 
Committee recommendation provides the full request of $190 
million in fiscal year 1997 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.

   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 with the pressing needs of the world's less fortunate 
people.
    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 encouraged that in the first session, this 
Congress began to link foreign aid objectives to resources, and 
resources to policy. The Committee remains convinced that the 
United States can lead with fewer resources than were needed a 
decade ago. The Committee strongly believes that no price tag 
need be placed on leadership. Money matters in foreign policy, 
to be sure, but not nearly as much as consistent policy and 
constantly engaged leaders.
    As noted earlier, the Committee notes 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 consensus 
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. Last year this bill received broad bipartisan 
support (although every member had strong reservations about 
individual items). This bill marks an essential second step in 
that direction.

                       Committee Recommendations

    For export and investment assistance programs the Committee 
has recommended a gross total of $913,614,000, which is 
partially offset by collections of $282,000,000. The subsidy 
appropriation for the Export Import Bank is $726,000,000 and 
the Trade and Development Agency is funded at $38,000,000. The 
Committee has provided $102,000,000 for the Overseas Private 
Investment Corporation.
    The Committee has recommended $800,529,710 of the 
$1,425,568,810 requested for the international financial 
institutions. The overall reduction is $632,039,100 below this 
year's request.
    For development assistance, the Committee has recommended a 
total of $1,958,500,000 of which $600,000,000 is for child 
survival and disease prevention programs. Another 
$1,150,000,000 is for longer-term development assistance. The 
Committee has also included $190,000,000 for disasters 
worldwide. Much of all three categories of assistance is likely 
to be used in Africa, but the Committee did not provide a 
specific regional earmark. The Committee has included 
$10,000,000 for debt restructuring for poor countries, with 
authority to transfer another $12,000,000 from other 
development assistance programs.
    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, 
including basic education, and on accelerating efforts to 
eradicate diseases that threaten younger children and 
caregivers alike. The account does not include population 
funding which will be funded through the development assistance 
account. It does provide for a grant to UNICEF at the current 
level of $100,000,000, rejecting the requested reduction of 
$10,000,000.
    The Committee has included a total of $590,000,000 in 
assistance to the new independent states of the former Soviet 
Union, and $475,000,000 for Eastern Europe and the Baltics.
    The Committee has recommended a total of $705,000,000 for 
refugee programs.
    For economic assistance under the Economic Support Fund, 
the Committee has recommended a total of $2,336,000,000.
    The Committee has recommended $135,000,000 for a new 
Nonproliferation, Anti-terrorism and Demining account which 
includes funding for the Non-proliferation and Disarmament 
Fund, anti-terrorism assistance, demining activities, United 
States participation in the Korean Energy Development 
Organization (KEDO), and the U.S. voluntary contribution to the 
International Atomic Energy Agency (IAEA). This change 
eliminates two existing accounts (Anti-terrorism and the 
Nonproliferation and Disarmament Fund) and combines these 
activities with similar nonproliferation and anti-terrorism 
activities currently funded in the IO&P and FMF accounts. It 
also includes the recent budget amendment of $50,000,000 for 
counterterrorism assistance to Israel. The resulting single 
budget account will provide improved flexibility and 
accountability for the administration in implementing these 
important priorities.
    For Foreign Military Financing, the Committee has 
recommended a grant program of $3,222,250,000 and a loan 
subsidy appropriation of $35,000,000. The FMF loan value 
supported by the loan subsidy appropriation is limited to 
$323,815,000.

               TITLE I--EXPORT AND INVESTMENT ASSISTANCE

                Export-Import Bank of the United States

                         subsidy appropriation

Fiscal year 1996 level..................................    $744,551,000
Fiscal year 1997 request................................     736,551,000
Committee recommendation................................     726,000,000

                        administrative expenses

Fiscal year 1996 level..................................     $45,614,000
Fiscal year 1997 request................................      47,614,000
Committee recommendation................................      47,614,000

    The Committee has recommended a subsidy appropriation for 
the Export-Import Bank of $726,000,000 and an appropriation of 
$47,614,000 for administrative expenses. The latter increase is 
needed to support the Export-Import Bank's increased activities 
involving small businesses and project finance, both of which 
require more staff resources than traditional Eximbank lending 
sectors.
    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 $50,000,000 
for a tied-aid ``war chest'', a reduction of $50,000,000 from 
its 1996 capitalization. These funds, if not used for tied-aid 
purposes, may be used to support loans. The war chest has 
largely served its purpose of countering predatory finance 
offers by other nations at less cost than expected. At present, 
it is expected to continue to be effective with the recommended 
appropriation. If more funds are needed for the war chest, the 
Committee will promptly consider any additional requests from 
the President.
    With the budgetary outlook indicating the Committee will be 
hard pressed to sustain appropriations for the Eximbank at 
current levels in future years, the Bank management is 
encouraged once again to begin consulting with the Committee 
regarding its plans for overcoming the likely gap between 
demand and federal resources in the near future. This 
consultation should begin immediately.

                Overseas Private Investment Corporation

                         SUBSIDY APPROPRIATION

Fiscal year 1996 level..................................     $72,000,000
Fiscal year 1997 request................................      72,000,000
Committee recommendation................................      72,000,000

                        ADMINISTRATIVE EXPENSES

Fiscal year 1996 level..................................     $26,000,000
Fiscal year 1997 request................................      32,000,000
Committee recommendation................................      30,000,000

    The Committee has recommended $72,000,000 for the subsidy 
appropriation for the OPIC direct and guaranteed loan credit 
programs and has recommended $30,000,000 for operating 
expenses. Although the subsidy appropriation is the same as 
last year and the request for 1997, the Committee is unable to 
recommend the requested 23 percent increase in administrative 
expenses.
    The Committee has continued prior year language required by 
the Federal Credit Reform Act 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, it 
notes that the Overseas Private Investment Corporation did 
comply with the Committee's directive to report to it on the 
viability of a privatization program for OPIC's insurance 
programs. The report went beyond the Committee's directive to 
include all OPIC operations, concluding that a one-time 
negative budgetary impact would likely result from complete 
privatization.
    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 1996 level..................................     $40,000,000
Fiscal year 1997 request................................      40,000,000
Committee recommendation................................      38,000,000

    The Committee has recommended funding for the Trade and 
Development Agency at the level of $38,000,000. This reduction 
is made because of limited budgetary resources.
    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 is 
beginning to move away from its previous status as an all-grant 
agency. The Committee commends TDA for recognizing that it 
needs to recoup some or all of the costs of its tax-financed 
assistance, especially when large and profitable companies 
benefit from TDA grants.
    To assist TDA, the Committee has included bill language 
which would allow it to accept reimbursements from agencies for 
the costs of grants. It would also extend the availability of 
funds from one to two years.

                TITLE II--BILATERAL ECONOMIC ASSISTANCE

                    Latin America and the Caribbean

    This year the Committee's highest priority in the bilateral 
economic assistance title is reversing the declining percentage 
of assistance provided to Latin America and the Caribbean 
region. While great strides have been made to consolidate peace 
and democracy in the region, and to commit to market-oriented 
economic policies, nearly half of the region remains in 
poverty.
    Latin American and Caribbean nations will continue to need 
U.S. Government engagement in policy and trade matters as well 
as foreign assistance if they are to become full participants 
in the proposed Free Trade Area of the Americas and consumers 
of United States goods and services. Foreign aid levels 
allocated to the region have dropped precipitously over the 
past several years and the Committee firmly rejects the notion 
that they can be reduced further in 1997.
    The Committee has included a general provision (section 
561) providing for the equitable allocation of development and 
economic support fund assistance among nations of the Caribbean 
and Latin America. This will prevent the over-concentration of 
resources on a crisis country such as Haiti or El Salvador, at 
the expense of continuing programs in other countries.

                  Funds Appropriated to the President

                  Agency for International Development

                         Development Assistance

    The Committee, in order to give the President more 
flexibility, has recommended funding two accounts for 
development assistance programs currently administered by the 
Agency for International Development. The bill provides for an 
overall Development assistance account and an account for child 
survival, children's basic education, and disease prevention 
and treatment activities.
    The President's budget request for bilateral development 
assistance totals $1,960,000,000. The total Committee 
recommendation is $1,958,500,000, or $1,500,000 below the 
request. However, the Committee recommendation includes 
$100,000,000 in funding for a grant to the United Nations 
Children's Fund (UNICEF) that in the past has been appropriated 
in ``International Organizations and Programs'' in title IV.
    Therefore, on a comparable basis the Committee 
recommendation is $101,500,000 below the budget request for 
development assistance, a reduction of approximately five 
percent. On the same basis, the recommendation reflects a 
reduction of one percent from the fiscal year 1996 enacted 
level.

                Child Survival and Disease Programs Fund

Fiscal year 1996 level..................................              $0
Fiscal year 1997 request................................               0
Committee recommendation................................     600,000,000

    The Committee has recommended $600,000,000 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 an increase of $27,000,000 for 
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), as well as funding for 
children's basic education at not to exceed $98,000,000.
    Funding for this account is derived from child survival 
programs and adult disease programs previously provided in the 
Development assistance account, the Economic Support Fund 
(other than Egypt), Assistance for Eastern Europe and the 
Baltic States, Assistance for the New Independent States of the 
Former Soviet Union, and the UNICEF portion of International 
Organizations and Programs.
    Funding for child survival activities, basic education, and 
non-child disease programs would be allocated as follows:

Child survival..........................................    $245,000,000
Non-child diseases......................................     157,000,000
Children's basic education..............................      98,000,000
Grant to UNICEF.........................................     100,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total in this account.............................     600,000,000
Child survival in Egypt-ESF and disaster assistance.....      55,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total in all accounts.............................     655,000,000

    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 shall 
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 allocated 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.
    The total for child survival programs from all accounts 
should be a minimum of $300,000,000 in fiscal year 1997.

                          eradication of polio

    The Committee recommendation includes $25,000,000 for the 
program initiated by the Committee last year to eradicate 
polio. Funds should be used to provide for the delivery of 
vaccines, and the development of the infrastructure necessary 
to implement the program. This funding is meant to be in 
addition to the resources for the regular immunization program 
of the Agency for International Development and is intended to 
supplement other related activities. The Committee requests a 
report by December 1, 1996, on AID's plans to fully implement 
this program.

             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 continuing these programs at the 1996 
recommended level of $25,000,000.

                              tuberculosis

    The Committee continues to be extremely concerned about the 
global tuberculosis epidemic. 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) projects a doubling in 
number of those 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 under the age of 
25.
    The Committee supports the United States leadership in the 
United Nations AIDS program and that body's effort to increase 
the coordination of multilateral AIDS efforts. The Committee 
urges that support be increased for the global AIDS 
initiatives, specifically those that are directed toward women, 
children, and youth, and vaccine and microbicide development. 
Also, the Committee asks AID to examine how it can assist with 
the creation of appropriate care and secondary prevention 
programs in hardest hit nations.
    The Committee urges the continuation of the AIDS Prevention 
and Control Program and recommends that $117,500,000 be 
provided through this account for these activities. Within this 
level, support for non-governmental organizations and private 
voluntary organizations should be given priority, particularly 
those working in populations where rapid spread of HIV can 
still be prevented.

                           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 1997. The Committee 
urges AID to make the best effort to provide funding for the 
overall program of $10,000,000.

                         Development assistance

Fiscal year 1996 level..................................  $1,675,000,000
Fiscal year 1997 request................................   1,006,000,000
Committee recommendation................................   1,150,000,000

    The Committee has recommended $1,150,000,000 for a general 
account for development assistance. The amount recommended is 
$144,000,000 more than the amount requested by the 
Administration and $525,000,000 less than the amount provided 
in fiscal year 1996. Funding in this account includes 
activities for agriculture, rural development, population, 
adult literacy and adult basic education, environment, energy, 
science and technology and other programs related to longer-
term development. However, a different mix of programs was 
provided in 1996 and in the budget request which partially 
explains the disparity in funding levels.
    The Committee recommendation moves funding for child 
survival activities and disease prevention programs from this 
account to the new ``Child Survival and Disease Programs 
Fund''. The Development assistance account again includes 
activities that were funded in separate population and Africa 
region accounts prior to 1996.
    In addition, the Committee recommendation includes bill 
language to provide for discretionary transfer authority to 
allow up to $12,000,000 to be transferred from this account to 
``Debt restructuring''. Such transfer, if proposed, would be 
subject to existing reprogramming procedures.
    The Committee is aware that reduced funding for 
``Development assistance'' will require AID to target limited 
resources more effectively. For instance, the Committee notes 
that major funding is proposed for India in the 1997 budget 
request. While the Committee values the relationship between 
India and the United States, recent positive economic trends 
suggest that the assistance program for India can be reduced 
without affecting the good relations between the two countries.

                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 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.
    The Committee has also continued prior year language that 
states that nothing in the Development assistance account 
portion of the bill is to alter any existing statutory 
prohibitions against abortion which are included under section 
104 of the Foreign Assistance Act. Sections 518 and 518A also 
address this matter.

                    latin america and the caribbean

    The Committee is concerned the Agency for International 
Development did not adequately respond to last year's report 
language urging that greater emphasis be provided for programs 
in the Latin America and the Caribbean region. Therefore, the 
Committee is recommending bill language to provide that funding 
for this region (and for sub-Saharan Africa) should be 
provided, on a proportional basis, at least at the level of the 
budget request for the region. The Committee has concluded that 
such language is necessary in order to establish a priority for 
this important and strategic region of the world.
    The regional allocations for Latin America and the 
Caribbean and for sub-Saharan Africa for development assistance 
should be provided consistent with the bureau allocations 
identified on page 22 of the draft congressional presentation 
of the Agency for International Development. In applying the 
bill language, AID should not consider the grant to UNICEF 
contained in the Child Survival and Disease Programs account to 
be part of development assistance.

              latin america and the caribbean: 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 ongoing 
implementation of those accords is critical to post-war 
development in El Salvador, and it strongly supports AID 
funding related to the peace accords and the strengthening of 
an accountable government. The United States has been an 
important actor in the peace process and should see the process 
through to completion.
    The Committee recognizes and applauds the Salvadoran 
government's generally successful transition from war to peace. 
However, there are still aspects of the agreements that remain 
incomplete. The new police force needs to be more open and 
accountable. Important judicial reforms need to pass the 
National Assembly. Electoral reforms agreed to by the major 
political parties have not been enacted into law. In addition, 
while much progress has been made in land reform, the process 
of providing titles to individual property holders should 
continue.

               latin america and the caribbean: honduras

    The current government of Honduras deserves greater 
consideration in its efforts to reduce poverty, increase 
economic growth, and uncover the fate of those who disappeared 
during the 1980's struggle for Central America. The Committee 
recommends that the United States Government direct additional 
assistance and trade concessions to Honduras and make available 
to civilian authorities in that country declassified documents 
on the cases of the disappeared.

                latin america and the caribbean: jamaica

    The Committee continues to have a special interest in 
Jamaica. Over the past five years, United States assistance has 
helped Jamaica undertake economic reforms, implement trade 
liberalization measures, improve access to health care, and 
combat the illicit flow of narcotics. In each of these areas, 
Jamaica has become a model of development and cooperation for 
other Caribbean nations. Earlier this year, for example, 
Jamaica successfully completed an IMF-sponsored reform program, 
allowing it to terminate its borrowing relationship with that 
institution.
    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. The Committee 
is concerned, however, because elements of Jamaica's assistance 
program were severely cut during the fiscal year 1996 
reallocation process, and, consequently, are reflected in low 
request levels for fiscal year 1997. Last year, in its report 
accompanying this bill, the Committee expressed its strong 
views that assistance to Jamaica should remain a priority. The 
Committee believes AID should make every effort to provide 
additional resources for Jamaica.

                latin america and the caribbean: mexico

    Relations between the United States and Mexico are not 
directly affected by appropriations recommended in this bill, 
although Mexico does benefit from funds provided indirectly, 
through the World Bank, the Inter-American Development Bank, 
and the International Monetary Fund. Nevertheless, the 
Committee encourages the Administration to give a higher 
profile to the issue of human rights in Mexico.

               latin america and the caribbean: nicaragua

    The completion of Nicaragua's transition from war to peace 
depends on a successful election and transition in the final 
months of 1996. The Committee urges the government of Nicaragua 
to adhere to its electoral calendar and to carry out 
scrupulously free and fair elections on schedule. In the 
interim, the Committee urges Nicaragua to implement the law 
passed in December 1995 to establish an impartial and 
independent ombudsman office to promote human rights.-
    The Committee 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. It received $700,000 during 1996 
and is expected to receive at least the same amount during 
1997.

               latin america and the caribbean: guatemala

    The Committee commends the government of Guatemala for its 
commitment to negotiate a peaceful end to the civil war in 
Guatemala. The Committee supports the work of the United 
Nations Human Rights Verification mission (MINUGUA) to monitor 
compliance with the March 1994 human rights accord, and urges 
the government to fully comply the MINUGUA's recommendations, 
especially those related to strengthening the capacity of the 
criminal justice system to combat impunity.
    The Committee urges the government of Guatemala to make 
progress in investigating and prosecuting outstanding human 
rights cases. Of particular concern are the threats and 
intimidations of judges, prosecutors and witnesses in these and 
other cases involving the Guatemalan military. The Committee 
continues to be concerned about human rights violations 
associated with the military-directed civil defense patrols and 
urges the government of Guatemala to dissolve such patrols and 
to prevent their conversion into military-directed ``peace and 
development '' committees.
    The Committee urges the Administration to expedite 
declassification of U.S. documents related to major human 
rights cases in Guatemala. The Committee also urges the 
Administration to ensure adequate funding for peace accord 
implementation once a final agreement is signed in Guatemala.

            latin america and the caribbean: parks in peril

    The Committee notes its strong support for the existing AID 
Parks in Peril program, a partnership with the private sector 
to promote biodiversity conservation in imperiled ecosystems 
throughout Latin America and the Caribbean. Parks in Peril is 
currently working in 28 sites in twelve different countries, 
helping to protect 18,000,000 acres of land. 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 in excess of 
$5,000,000, both in the United States and overseas. The 
Committee encourages this trend, as the budget situation makes 
long-term federal funding problematic.

      latin america and the caribbean: neotropical migratory birds

    The Committee recommends that $750,000 in fiscal year 1997 
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. Recent scientific evidence suggests that further 
decline of these 350 species could pose significant domestic 
economic and environmental problems, as these birds play a 
significant role in control of forest and agricultural pests. 
The Committee urges AID to make this program part of its budget 
request for fiscal year 1998 in order to provide the year-to-
year continuity required to fully implement this program.

               africa: 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.
    The Committee welcomes the recent revitalization of the 
Intergovernmental Agreement on Development (IGAD) and the 
decision to integrate conflict prevention/mitigation into the 
Greater Horn of Africa initiative.
    Since food security is the fundamental underpinning of the 
Greater Horn of Africa initiative, AID program funding both 
regionwide and within the individual countries of the Greater 
Horn should reflect this priority.
    In keeping with the lessons learned in the Greater Horn of 
Africa, the Committee urges that AID require integrated 
strategic planning for every country experiencing an ongoing 
crisis and/or transitioning out of an ongoing crisis. All AID 
mechanisms, including development assistance, disaster 
assistance, Food for Peace, and global programs, should be 
integrated at the field level within a single strategic 
framework in an effort to maximize effective utilization of all 
resources. The role of USAID/Washington is to ensure support 
for field-driven integrated strategic plans.

                        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.
    However, the Committee is concerned about reports the AID 
mission in South Africa did not function in accordance with 
established procurement law and regulations. Such practices 
appear to have continued after the mission was told that 
changes were necessary. Accordingly, the Committee is 
recommending that all funds for South Africa be subject to 
reprogramming in order to adequately review AID programs and 
operations in that country.

                                nigeria

    The Committee is very concerned about the human rights 
situation in Nigeria and encourages the United States Executive 
Directors at the African Development Bank and the International 
Bank for Reconstruction and Development to urge Nigeria to take 
steps to improve its human rights performance.

                                 SUDAN

    The Committee authorizes AID to use development and 
disaster assistance funds for capacity building purposes in 
areas of Southern Sudan outside the control of the government 
of Sudan. The Committee strongly encourages AID to make funds 
from these accounts available to non-governmental organizations 
for this purpose. The committee expects that these funds will 
not be used in areas controlled by Southern factions that have 
and continue to cooperate with the government of Sudan.

                              sierra leone

    The Committee commends the Government of Sierra Leone for 
its recent successful democratic elections, and for its 
valuable assistance in assisting refugees from Liberia. The 
Committee also urges the Administration to actively consider 
increasing assistance to that country in order to assist in the 
transition to democracy.

                                 kenya

    The Committee is gravely concerned about Kenya's lack of 
progress in embracing democracy and human rights. It strongly 
urges the government of Kenya to take immediate steps to ensure 
that the upcoming Presidential elections are free and fair.

                  private and voluntary organizations

    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 
continued new language from last year's bill stating that 
support for private voluntary organizations should be made 
available at a level equivalent to that provided in fiscal year 
1995.
    The Committee continues to strongly support adequate 
funding for the Office of Private and Voluntary Cooperation 
(PVC) which leverages private resources by PVOs and 
cooperatives. PVC is the heart of the non-profit portion of the 
partnership between AID and the private sector. This office 
supports PVO micro-enterprise, child survival, and Vitamin A 
grants; strengthens cooperative development efforts; and 
administers the PL 480-funded Farmer-to-Farmer program. PVC 
also backstops the Advisory Committee on Voluntary Foreign Aid 
that was initially created by President Truman.
    The Committee expects the Administration to make every 
effort to adequately fund this key office. If AID intends to 
increase funding for PVOs and cooperatives from 27 percent to 
40 percent over the next five years, the PVC office needs to 
ensure that the private, non-profit sector is capable of 
effective management of its increased responsibilities. It also 
serves as a link between PVOs and the United States Government 
so that federally-funded PVO activity is generally consistent 
with foreign policy objectives.
    As AID further reduces its staff and eliminates missions, 
it will have to rely more on potentially less costly private 
sector solutions, including PVOs, to maintain an American 
presence overseas and to consolidate development gains. When 
PVOs are willing to cooperate with the United States 
Government, PVC can help these not-for-profit organizations 
fill gaps in helping the less fortunate overseas as official 
funding levels continue to decline.

                          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. The protection of global 
biodiversity may prove critical to US security and economic 
growth, and is particularly vital for the US agricultural and 
pharmaceutical industries.
     AID conservation activities should continue to emphasize 
the use of NGOs as a cost-effective means of delivering 
biodiversity conservation programs. Furthermore, as it reduces 
its presence overseas, AID, through NGO partnerships, should 
remain active in regions that are significant in terms of 
global biodiversity, even in countries where missions have been 
closed or have never been located.

             energy and environmental technology promotion

    The Committee urges that the Office of Energy, Environment, 
and Technology be funded at an adequate level, no less than its 
fiscal 1995 core budget. AID did not comply with the Committee 
of Conference's directives last year, although public 
statements of AID senior officials stress the importance of the 
Office's activities. The Office promotes United States 
industrial leadership in the areas of power sector 
privatization, innovative technologies to reduce pollutants 
from fossil fuels, and renewable energy. The Committee 
reaffirms its support for an improved global environment 
through support for improved efficiency in energy production 
and use, especially in fossil fuels, recognizing that growing 
economies will require additional capacity for power generation 
from a wide range of sources.
    The Committee again recommends that AID continue funding 
for projects which promote power sector efficiency, energy 
efficiency, and renewable energy, 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. Included in these efforts should be host country 
institutional capacity building, legal and regulatory reform, 
project preparation, innovative project financing, trade and 
reverse trade missions, training, technology transfer and 
collaboration.

                          women in development

    The Committee urges that not less than $11,000,000 be 
provided for AID's Office of Women in Development. The 
Committee supports efforts to better integrate the concerns of 
women into AID's programs and policies, and encourages AID to 
undertake the institutional changes needed to support women in 
development. Investing in women is crucial to increasing family 
well-being, educating the next generation, and to achieving 
sustainable economic growth as well as to reducing poverty 
worldwide.
    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 child survival, population, 
and health programs.

                            microenterprise

    The Committee recommends that microenterprise funding be 
provided at least at the level of fiscal year 1996, and 
supports additional funding for the program above this level to 
the maximum extent possible. This program has proven its 
effectiveness in promoting economic growth in the poorest 
countries. Of these funds, at least fifty percent should be 
devoted to poverty lending programs, and a significant portion 
should be channeled through central mechanisms such as 
nongovernmental organizations. For purposes of implementing 
this program, poverty lending programs are defined as loans of 
under $300 made to the poorest fifty percent of those living 
below the poverty line, or the institutional development of 
organizations primarily engaged in making such loans.
    In addition, the Committee directs AID to monitor and 
report regularly to the Committees on Appropriations on the 
actual amount of microenterprise credit made available to the 
poverty target population as a result of each microenterprise 
project or program, and to monitor and report on the amount of 
funding allocated to institutions primarily engaged in making 
loans of under $300 to the poverty target population.

                            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 notes that institutions such 
as Hadassah, which are open to all individuals regardless of 
ethnic or religious orientations and which are largely funded 
from outside sources, remain one of the most cost effective 
ways to leverage American foreign aid dollars.
    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 
involving community colleges and Hispanic Serving Institutions 
(HSI's) in the delivery of vocational and occupational 
education and training elements of development assistance 
projects.

                        cass scholarship program

    The Committee has supported the scholarship programs 
currently known as the Cooperative Association of States for 
Scholarships [CASS] since 1985. This program utilizes more than 
30 community-based institutions around the United States 
offering 2 year degrees in various technical and vocational 
fields. The Committee believes AID should continue funding for 
this program at the same level provided in fiscal year 1996.

                        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.
    The Committee has been made aware of the serious human 
health and environmental problems associated with the misuse 
and overuse of chemical fertilizers, pesticides, and 
herbicides. The Committee continues to request that AID give 
greater attention to non-chemical, organic, scientifically-
based soil enhancers, pest control technologies, and poultry 
feed additives. The Committee strongly recommends that 
approximately one percent of the AID funds allocated to Egypt 
be used for a program to test organic, non-chemical 
agricultural products.
    The Committee also supports the continuation of 
collaborative research support programs (CRSP), such as the 
small ruminants CRSP, which promote sustainable agriculture in 
the developing world in conjunction with the U.S. land grant 
system of higher education.

                           dairy development

    The Committee continues to support dairy development, and 
recommends that the Agency for International Development 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.

             development of credit unions and cooperatives

    The Committee strongly supports programs to develop credit 
unions and cooperatives overseas, especially in Central Europe 
and the New Independent States of the former Soviet Union. 
Credit unions teach free market skills, while self-sustaining 
cooperatives can help build markets for U.S. exports and 
promote U.S. products and technologies overseas.

             rehabilitation services for victims of torture

    The Committee urges AID to incorporate support for 
treatment of torture as an integral part of its promotion of 
human rights and development. In identifying appropriate 
countries in which to provide such services, AID should give 
special consideration to the State Department's Country Reports 
for Human Rights Practices. The agency should also work with 
organizations such as the United Nations Voluntary Fund for the 
Victims of Torture and the Center for Victims of Torture.

       continuation of programs in countries without AID missions

    The Committee encourages AID 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 1996 level..................................              $0
Fiscal year 1997 request................................     704,000,000
Committee recommendation................................               0

    Funds provided under the unified Development assistance 
account for fiscal year 1997 are to be used to implement the 
tenth 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. As in 1996, 
the Committee does not recommend a separate development 
assistance account for Africa or any other region.
    The Committee's recommendation 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 Child Survival and 
Disease Programs Fund and the Development assistance account 
will be committed to programs in sub-Saharan Africa, and 
expects AID to provide close coordination between activities 
funded in those accounts 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 authorities available for the Development Fund for 
Africa shall apply in providing assistance to sub-Saharan 
African through ``Development assistance''.

                   International Disaster Assistance

Fiscal year 1996 level..................................    $181,000,000
Fiscal year 1997 request................................     190,000,000
Committee recommendation................................     190,000,000

    The Committee has recommended $190,000,000 for the 
International Disaster Assistance account, the amount requested 
by the Administration and an increase of $9,000,000 over the 
amount provided in fiscal year 1996. Activities to be funded 
under this account include relief, rehabilitation, 
reconstruction and capacity building.

                   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. The Committee encourages AID to 
utilize funds made available for nongovernmental organizations 
in southern Sudan outside government control to include 
capacity building activities in addition to traditional relief 
programs.

                           Debt Restructuring

Fiscal year 1996 level..................................     $10,000,000
    (By transfer).......................................     (5,000,000)
Fiscal year 1997 request................................      47,000,000
Committee recommendation................................      10,000,000
    (By transfer).......................................    (12,000,000)

    The Committee has provided $10,000,000 for debt 
restructuring for fiscal year 1997. This is the same as the 
1996 level, but $37,000,000 below the request. The Committee 
has not included bill language to expand the authorities 
available under this account to allow for the restructuring of 
debt generated by Commodity Credit Corporation loans and Public 
Law 480 loans. This issue should be addressed by the 
appropriate authorizing committee.
    While the full budget request has not been provided for 
this activity, the Committee has provided discretionary 
transfer authority to allow for up to $12,000,000 to be 
transferred to this account from ``Development assistance.'' 
This would provide the full request for ``Naples Terms'' debt 
restructuring for the poorest countries. Any proposed transfer 
would be subject to the normal reprogramming procedures of the 
Committee. 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 traditional development assistance activities for 
this purpose.
    The Committee supports the elimination of the debt overhang 
among Latin American and Caribbean countries as the highest 
priority for the use of funds appropriated in this account, 
particularly for countries that are implementing economic 
reforms. Similarly, the Committee is pleased to note that 
several countries--including Jamaica and Peru--have expressed 
interest in the debt buyback provisions first enacted as part 
of P.L. 104-107 and included in this Act. Jamaica was a 
successful participant in the Enterprise for the Americas 
Initiative (EAI) and, as of June 1995, has channeled the 
proceeds of earlier debt relief to over 71 environmental and 
sustainable resources activities. At no budget cost, this 
program is an effective way to reduce debt burdens and advance 
United States development goals. The Committee urges the 
Administration to move forward with this program with all 
deliberate speed.
    The Committee notes that debt restructuring for Cote 
d'Ivoire is the largest component of the budget request, and 
would expect that if the discretionary transfer authority is 
utilized for this purpose, funds allocated for sub-Saharan 
Africa should be the source of the reprogramming for such 
transfer.
    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. In last year's committee report, 
the Committee requested 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. Such a report has not been submitted by the 
Administration. The Committee reiterates the need for such a 
report, and expects that it will be submitted prior to a 
notification for the obligation of funds from this account. A 
requirement for prior notifications of obligations from this 
account has been included in bill language.

             Micro and Small Enterprise Development Program

                         subsidy appropriations

1996 enacted............................................      $1,500,000
1997 budget request.....................................       1,500,000
Committee recommendation................................       1,500,000

                  estimated level of guaranteed loans

1996 enacted............................................   ($16,700,000)
1997 budget request.....................................    (17,000,000)
Committee recommendation................................    (17,000,000)

                           operating expenses

1996 enacted............................................        $500,000
1997 budget request.....................................         500,000
Committee recommendation................................         500,000

    The Committee is recommending $1,500,000 in subsidy 
appropriations for the micro and small enterprise program. This 
level is the same as the 1996 enacted level and the budget 
estimate.
    The proposed level of funding will provide $17,000,000 in 
guarantee authority.
    In addition, the Committee is recommending $500,000 in 
administrative expenses, the same as the 1996 enacted level and 
the budget request.

               Housing and Other Credit Guaranty Program

                         subsidy appropriations

Fiscal year 1996 level..................................      $4,000,000
Fiscal year 1997 request................................       5,000,000
Committee recommendation................................         500,000

                  estimated level of guaranteed loans

Fiscal year 1996 level..................................   ($33,700,000)
Fiscal year 1997 request................................    (42,000,000)
Committee recommendation................................    (10,000,000)

                           operating expenses

Fiscal year 1996 level..................................      $7,000,000
Fiscal year 1997 request................................       6,000,000
Committee recommendation................................       6,000,000

    The Committee has provided $500,000 for 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 
development assistance funding should be targeted for least 
developed countries or transition countries, specifically for 
housing activities. Therefore the Committee recommendation 
would provide only for the housing program requested for South 
Africa.
    An appropriation of $6,000,000 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 $2,800,000,000. The recommendation 
is $1,000,000 below the enacted level but the same as the 
budget request.

     Payment to the Foreign Service Retirement and Disability Fund

Fiscal year 1996 level..................................     $43,914,000
Fiscal year 1997 request................................      43,826,000
Committee recommendation................................      43,826,000

    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 1996 level..................................    $465,750,000
Fiscal year 1997 request................................     495,000,000
Committee recommendation................................     465,750,000

    The Committee has recommended funding for Agency for 
International Development operating expenses at a level of 
$465,750,000 which is $29,250,000 below the Administration's 
request and the same as the amount provided for fiscal year 
1996.
    The Committee recommendation continues prior year language 
limiting funding for publications.
    It is the Committee's position that funds for a possible 
move of the Agency for International Development should be 
obligated only pursuant to an authorization of appropriations 
for said purpose, or upon a certification to the Congress by 
the Director of the Office of Management and Budget that such a 
move will result in savings to the government compared to other 
options. The Administration should take no steps to remove AID 
from its current buildings until a formal plan has been 
developed.

Operating Expenses of the Agency for International Development--Office 
                        of the Inspector General

Fiscal year 1996 level..................................     $30,200,000
Fiscal year 1997 request................................      30,000,000
Committee recommendation................................      30,000,000

    The Committee has recommended $30,000,000 for the Office of 
the Inspector General of AID for fiscal year 1997.

                         new management system

    The Committee is very concerned with reports it has 
received from the Inspector General that the new management 
system of AID, particularly the AID-Worldwide Accounting and 
Control System (AWACS), is nonfunctional. In the latest 
Semiannual Report to the Congress, the Inspector General notes: 
``The designs and controls of AWACS have neither been 
documented nor tested. . . . the Agency has not yet 
demonstrated that AWACS is a reliable system capable of 
producing accurate accounting data. . . . basic system controls 
and procedures do not exist. . . . Critical milestone dates for 
bringing the system on-line have been missed and basic internal 
controls are lacking. Originally scheduled to be fully 
operational by October 1, 1995, the implementation of AWACS in 
Washington and in all of the Agency's 44 accounting centers 
worldwide has yet to take place.''
    The Committee is also concerned that AID management has 
failed to keep the Committee informed of progress on, and 
problems with, AWACS and the other new management systems. 
Therefore the Committee requests that the Inspector General 
closely follow developments in this area in the coming year. It 
also requests that the Inspector General report regularly on 
this matter, including whether 1) the costs associated with the 
new management systems are worth the anticipated benefits; 2) 
AID should abandon efforts to develop its own financial 
management system, or turn to another agency or the private 
sector; and 3) procurement law and regulations have been 
followed in the purchase of goods and services for the new 
management systems.

                         Economic Support Fund

Fiscal year 1996 level..................................  $2,340,000,000
Fiscal year 1997 request................................   2,408,000,000
Committee recommendation................................   2,336,000,000

    The Committee has recommended a total of $2,336,000,000 for 
the Economic Support Fund, an amount that is $72,000,000 below 
the request and $4,000,000 less than the 1996 enacted level.

                                 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 1996 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, 1996, 
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 full request in fiscal 
year 1997 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.

            telecommunications and economic reform in egypt

    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. The Committee continues to support 
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 can significantly improve 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. While mindful of 
sensitivities regarding the pace of reform in Egypt, the 
Committee again urges the government of Egypt to implement its 
National Telecommunications Policy as soon as possible in order 
to implement these important reforms.

                    middle east regional cooperation

    The Committee continues to support the Middle East Regional 
Cooperation program. The proposed Middle East and Mediterranean 
Desert Development Program for Combating Desertification 
through Sustainable Desert Development offers an excellent 
opportunity to expand these successful efforts throughout the 
region and provide a framework for regional cooperation in the 
21st century.

                                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.

                       economic boycott of Israel

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

                                 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 United 
Nations resolutions and in the belief that greater bicommunal 
cooperation will facilitate such goals as the withdrawal of 
Turkish troops and demilitarization of the island. The 
Committee strongly urges the Administration to carry through on 
its pledge to make resolution of the Cyprus situation a top 
priority in 1997.

                    latin america and the caribbean

    The Committee urges the administration to meet the fiscal 
year 1997 Economic Support Fund request for Latin America to 
the maximum extent possible. It remains the Committee's strong 
belief that given the importance of the region and the long 
history of United States support, it is essential that aid 
levels not be reduced further.
    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 expects that U.S. assistance to Haiti will be 
implemented in a manner which significantly advances market-
based economic policies and reforms, representative democracy 
and respect for the rule of law. The Committee emphasizes that 
funding for Haiti is being provided with the clear 
understanding that it will only be provided if the Haitian 
government is embarked upon a meaningful restructuring of the 
Haitian economy through open, free-market reforms. The 
privatization of parastatal companies, an urgent overhaul of 
public sector spending and fiscal policies, and strict 
accountability for the effective use of donor resources are 
expected core reforms which must be undertaken immediately.
    The Committee also expects the administration to abide by 
its express written commitments to consult the Congress on the 
provision of aid to the Government of Haiti consistent with the 
terms of section 583 of P.L. 104-107 (the Dole amendment) and a 
similar provision in this bill, which requires thorough 
investigation of political violence and extrajudicial killings 
in Haiti.

                           religious freedom

    The Committee is concerned by the rising number of reports 
of anti-Christian persecution around the world. In particular, 
the Committee is concerned that in some cases these reports 
come from countries which receive United States foreign 
assistance. The Committee urges the Department of State to be 
attentive to this growing problem and to reiterate United 
States support for religious freedom around the world. The 
Committee also urges the Department of State to actively 
express the strong concern of the United States Government to 
countries where known cases of religious prosecution occur.

                             expropriation

    The Committee is concerned that without the full support of 
the United States Government, fair compensation for 
expropriated property will not be forthcoming. For example, in 
December 1995, the Dominican Government agreed to a settlement 
of an especially egregious expropriation by its military 
forces, but this agreement has yet to be implemented by that 
Government. Until the agreement is implemented, the Committee 
does not believe it is appropriate for the Dominican Republic 
to receive further United States assistance until a newly 
elected government in that country has addressed this issue. 
The Committee notes that assistance to the Dominican Republic 
is subject to special notification under the terms of section 
520.

                                 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.

                     International Fund for Ireland

Fiscal year 1996 level..................................     $19,600,000
Fiscal year 1997 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 this amount was requested for this activity through the 
Economic Support Fund, but the Committee recommendation would 
continue a separate account for assistance to Ireland. The 
amount is the same as the 1996 enacted level.
    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.
    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 1996 level..................................    $522,000,000
Fiscal year 1997 request................................     475,000,000
Committee recommendation................................     475,000,000

    The Committee has recommended $475,000,000 for Assistance 
for Eastern Europe and the Baltics for fiscal year 1997. This 
is the same as the budget request, but $47,000,000 below the 
1996 enacted level, which included a supplemental appropriation 
of $198,000,000 for Bosnia. Of this amount, $200,000,000 is 
provided for reconstruction efforts in Bosnia.

                         bosnia and herzegovina

    The Committee recommendation includes $200,000,000 for 
assistance to Bosnia and Herzegovina, as proposed in the budget 
request. The Committee expects funds will be made available to 
private voluntary organizations (PVO's) to foster 
reconciliation and assist in the process of reconstruction in 
Bosnia. Many PVO's have been active in the region for a number 
of years, and are uniquely qualified to assist AID in 
implementing reconstruction programs.
    The Committee has recommended bill language, similar to 
that enacted as part of the Bosnia supplemental appropriation 
in Public Law 104-122, that prohibits the use of funds for the 
construction or repair of housing or residences, unless 
directly related to the efforts of United States troops to 
promote peace in Bosnia and Herzegovina; requires the written 
approval of the Administrator of AID for loans and projects 
under the Economic Reconstruction Program; and subjects such 
funds to section 531.

                                albania

    While the Committee commends the government of Albania for 
seeking to overcome decades of repression, it is concerned with 
reports regarding problems faced by religious and ethnic 
minorities. The Committee is especially concerned about reports 
that the Greek minority is experiencing difficulties in 
education and employment, and urges the government of Albania 
to seek to address these problems.

                           LEGAL INITIATIVES

    The Committee encourages 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 through 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 1996 level..................................    $641,000,000
Fiscal year 1997 request................................     640,000,000
Committee recommendation................................     590,000,000

    The Committee has recommended $590,000,000 for Ukraine, 
Armenia, Georgia, Russia, and the new independent republics of 
the former Soviet Union. This is $51,000,000 less than the 
request, and $50,000,000 less than the enacted 1996 level. The 
recommendation is $5,000,000 less than the amount recommended 
to the House in the 1996 bill.
    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 long-standing 
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 has specifically continued several new 
provisions from the 1996 Act, P.L. 104-107, relating to: 
Russian cooperation with Iran's nuclear program, cost-sharing 
and regional experience, among grantees and contractors, 
interest earned by enterprise funds, and humanitarian 
assistance within Azerbaijan.
    The Committee believes that few relationships are 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 than would 
otherwise be possible, 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 are endangered by adverse developments in Russia. The 
Committee is encouraged that the United States is making 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.

                          role of coordinator

    The Committee commends the Coordinator of U.S. Assistance 
to the New Independent States of the Former Soviet Union who 
has 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 continue to 
allocate the funds appropriated for any activities within his 
scope of responsibility as determined by the President's 
charter of April 4, 1995.

                the situation in the Russian Federation

    The Committee is discouraged by the status of economic 
reform at this time in the Russian Federation. Nonetheless, 
economic reform and recovery in many of the cities and regions 
of Russia and the emergence of civic institutions and 
entrepreneurs across the eleven time zones of the Federation do 
give hope that Russia will succeed, events in the Kremlin 
notwithstanding. The Committee recognizes that continuing 
United States assistance to the central Government of the 
Russian Federation may not be warranted under certain 
circumstances. On the eve of the elections, the Committee 
concludes that it would not be prudent to anticipate negative 
developments in Russia that may not occur, but it commends the 
efforts of the Coordinator and AID to move toward a much 
smaller program of assistance to Russia that is directed toward 
localities and civic institutions that warrant continued 
support by the United States.

                        the situation in Ukraine

    The Committee commends the Administration for its support 
during fiscal year 1996 for reform efforts in Ukraine, a 
struggling nation whose independence is key to a peaceful 
Europe. Although the Committee has not earmarked funds for 
Ukraine, or any other nation, it expects the Coordinator to 
allocate to Ukraine approximately the requested level of 
funding, subject to continuing progress in economic reform. The 
Committee is concerned about several programs that involve the 
use of United States funds to pay for recurring costs of gas or 
oil imports by the Ukraine government. It expects to be kept 
closely informed about events in Ukraine, and told well in 
advance of any new commitments to Ukraine.

                     the situation in the Caucasus

    Many members of the House have contacted the Committee 
regarding the physical isolation of Armenia, and the failure of 
international efforts to resolve conflicts in the southern 
Caucasus region. The Committee continues from the 1996 bill two 
provisions affecting the region: the ``Humanitarian Corridor 
Act'' (Sec. 559) and the limited waiver of section 907 of the 
FREEDOM Support Act for certain humanitarian activities in 
Azerbaijan. The activities contemplated by proponents of both 
provisions, suspension of aid to nations blocking access to 
Armenia and more extensive assistance to displaced persons in 
Azerbaijan and in Nagorno-Karabagh, could, in fact, be 
undertaken by the President in the absence of both provisions. 
The Committee is aware of ongoing discussions among the nations 
of the Caucasus region that may lead to the lifting of the 
blockades of Armenia and compliance with section 907. In an 
effort to promote a settlement of conflicts in the region, the 
Committee recommends continuation of both provisions, and 
continues to advise the Executive branch to utilize them with 
caution, and only after full consultation with Congress.
    The Committee has included a new subsection (m) within the 
account providing assistance to the Newly Independent States of 
the Former Soviet Union. The purpose of this subsection is to 
provide for the improved delivery of humanitarian assistance in 
Azerbaijan and for the delivery of humanitarian assistance in 
Nagorno-Karabagh. The provision clarifies that non-governmental 
organizations and private voluntary organizations not be 
precluded from using facilities, such as hospitals, or vehicles 
of the Government of Azerbaijan to provide humanitarian 
assistance to refugees and internally displaced persons in 
Azerbaijan.
    The Committee intends that this provision also allow non-
government organizations to use assistance funds to make 
necessary repairs to government facilities such as health 
clinics and housing that are used to care for refugees and 
internally displaced persons. The Committee also intends that 
government personnel be allowed to distribute commodities, such 
as doctors giving out medicine to needy civilians, and that 
commodities may be transferred to government personnel for 
distribution purposes.
    The Committee expresses no view whatsoever on the political 
status of Nagorno-Karabagh.

                                armenia

    The Committee recognizes the important economic reforms 
being made by Armenia and strongly supports the continued 
maintenance of adequate levels of economic and humanitarian 
assistance to Armenia.

 training, exchanges, and partnerships in the former Soviet Union and 
                             Central Europe

    Training, exchanges, and Partnerships between the United 
States and the nations of Eurasia and Central Europe are 
essential to the process of sustaining democracy and serve the 
interests of the United States. The Committee endorses full 
funding for the Russian, Eurasian, and East European Research 
and Training Program (Title VIII) from the two appropriation 
accounts for the NIS and Central Europe. The Committee also 
supports funding for other graduate fellowship and training 
projects in both regions such as the Central and Eastern 
European Graduate Fellowship program. Student exchange 
programs, in general, are to be distributed in a balanced 
manner among high school, college, and graduate/post-graduate 
categories. Committee support for high school exchanges is 
contingent upon establishment by the Coordinator of a better 
balance between this form of exchange and those involving more 
advanced students.
    The Committee also supports increased funding for 
institutional partnership projects in the former Soviet Union 
as well as their extension into Central Europe and the Baltic 
states. Such grass roots partnerships, especially medical 
partnerships, have been highly successful at relatively low 
cost in improving business management, agricultural reform, and 
improved health care.
    The Committee continues to support the Russia-United States 
Science, Education and Economic Development project in 
Pushchino, Russia. Since the Committee previously endorsed this 
project in the 1994 statement of managers, the Pushchino 
Project has fully met expectations and merits renewal for the 
final three years of the six year project.

              Russian-American and other enterprise funds

    The Committee expects to examine carefully any request for 
obligation of funds from this account for the Defense 
Enterprise Fund, which prior to this year was funded through 
the Cooperative Threat Reduction Program (Nunn-Lugar) in 
another appropriation bill. The use of U.S. funds for defense 
conversion in Russia is the subject of intense debate in 
Congress, and the Defense Enterprise Fund should take 
Congressional concerns into account before approaching the 
Committee for funding.
    This Committee expects the Coordinator to continue his 
efforts to establish a Trans-Caucasus Enterprise Fund prior to 
September 30, 1997, as directed in the 1996 act. It encourages 
the participation of other institutions and private investors 
in the establishment of this enterprise fund.
    In general, the Committee expects the Coordinators, 
officials of all enterprise funds, and AID to keep it closely 
informed about matters affecting enterprise funds. Aware of 
different operating procedures in each fund, the Committee 
encourages each enterprise fund to minimize administrative 
costs incurred in the United States. Furthermore, the Committee 
directs the Coordinators, in consultation with AID and the 
enterprise fund boards, to provide the Committee no later than 
November 1, 1996, with a written summary of their respective 
roles in policy, operations, and financial accountability.
    The Committee reminds the enterprise fund boards that it 
opposes the use of regular appropriations to fund activities 
that require subsidy appropriations under the 1990 Credit 
Reform Act. Any use of ``Notwithstanding any other provision of 
law'' authority to evade the Credit Reform Act would be unwise.

          matching funds for civilian scientists and engineers

    The Committee suggests that the Coordinator and Special 
Advisor to the President seriously consider providing adequate 
funds to match private and Department of Defense funds in 
support of the R&D Foundation located at the National Science 
Foundation that supports 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 is governed by a Board of 
Directors.
    To date, $5,000,000 has been provided by the private Soros 
Foundation. In addition, the Soros Foundation has spent 
$100,000,000 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.

          funding of peace corps activities in the NIS region

    The Committee strongly supports Peace Corps programs in the 
NIS. The Committee recommends no less than $12,000,000 for this 
purpose from funds appropriated for the region.

                 treasury technical assistance program

    The Committee expects that the Coordinators for the NIS and 
for Eastern Europe will transfer funds (both from this account 
and from ``Assistance for Eastern Europe and the Baltic 
States'') to the Treasury Department for the Treasury Technical 
Assistance Program rather than allocate funds for this program 
to individual AID missions in the former Soviet Union and 
Eastern Europe as is currently planned in 1997.

                        farmer-to-farmer program

    The Committee encourages the Agency for International 
Development to continue 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 sustained 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.

                          INDEPENDENT AGENCIES

                     African Development Foundation

Fiscal year 1996 level..................................   [$11,500,000]
Fiscal year 1997 request................................      12,500,000
Committee recommendation................................      11,500,000

    The Committee has recommended funding for the African 
Development Foundation at a level of $11,500,000, $1,000,000 
less than the amount requested by the Administration and the 
same as the amount provided in fiscal year 1996 through the 
``Development assistance'' account.
    The Committee continues to encourage the Foundation to 
explore alternative sources of funding, both public and 
private.

                       Inter-American Foundation

Fiscal year 1996 level..................................   [$20,000,000]
Fiscal year 1997 request................................      20,000,000
Committee recommendation................................      20,000,000

    The Committee recommendation provides $20,000,000 for the 
Inter-American Foundation, the same amount provided in fiscal 
year 1996 through ``Development assistance'', and the same as 
the budget request.
    The Committee continues to encourage the Foundation to 
explore alternative sources of funding, both private and 
public.

                              Peace Corps

Fiscal year 1996 level..................................    $205,000,000
Fiscal year 1997 request................................     220,000,000
Committee recommendation................................     212,000,000

    The Committee recommends Peace Corps funding of 
$212,000,000. This is $8,000,000 less than the request, but 
$7,000,000 above the 1996 enacted level. When the recommended 
transfer of $12,000,000 from the NIS account is factored in, 
consistent with prior year practice, the amount available to 
the Peace Corps will be $220,000,000. 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 
notes that the Corps has undertaken 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 led the Peace 
Corps to anticipate probable future reductions in funding. The 
Committee commends the Director for his leadership in this 
regard. The Congress has traditionally taken the lead in 
ensuring adequate funding levels for the Peace Corps.

                 programs in the new independent states

    The Committee notes that much of the fiscal year 1996 Peace 
Corps program in the New Independent States was funded from the 
NIS account. The Committee encourages the Peace Corps to 
continue to work closely with the Coordinator for the NIS. The 
Committee expects that not less than $12,000,000 for the fiscal 
year 1997 program in the NIS will be transferred from the NIS 
account.

                          DEPARTMENT OF STATE

                    International Narcotics Control

Fiscal year 1996 level..................................    $115,000,000
    (By transfer).......................................    (20,000,000)
Fiscal year 1997 request................................     213,000,000
Committee recommendation................................     150,000,000

    The Committee has recommended $150,000,000 for the 
International Narcotics Control program. This is $35,000,000 
above the appropriated level for 1996.
    The Committee is concerned that international narcotics 
control programs are not adequately coordinated with other 
United States government narcotics programs, both foreign and 
domestic. While the Committee is recommending an increase of 
this account, it believes more targeted, coordinated 
antinarcotic efforts may be a more effective strategy against 
international narcotics trafficking. The Committee requests 
that the Department of State report by March 1, 1997, on the 
degree to which programs in this account are coordinated with 
other government narcotics control programs; the nature of this 
coordination; the costs and benefits of a wide-ranging program 
versus a carefully targeted program; and the measurable results 
in all regions of the world that have occurred as a consequence 
of the investments made in the program (as opposed to results 
generated by external factors) since its inception.
    The Committee notes that section 520 applies to the use of 
narcotics control funds for countries such as Colombia and 
Peru.

                    Migration and Refugee Assistance

Fiscal year 1996 level..................................    $671,000,000
Fiscal year 1997 request................................     650,000,000
Committee recommendation................................     650,000,000


    The Committee has recommended $650,000,000 under the 
Migration and Refugee Assistance account, the amount requested 
by the President but $21,000,000 below funding provided for 
fiscal year 1996. A limitation of $12,000,000 is recommended 
for administrative expenses. Combined with the Emergency 
Refugee and Migration Assistance Fund and Refugee Resettlement 
Assistance, there will be a total of $705,000,000 available in 
fiscal year 1997 for assistance to refugees. The Committee 
believes that in light of the world wide refugee emergency, 
funding for refugee assistance should not be below the budget 
request.
    The Committee is concerned that the State Department make 
every effort to ensure that a potential increase in refugees 
from Tibet can be met 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.

                     refugees resettling in Israel

    The Committee strongly 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. In 
last year's report, the Committee requested that the Department 
maintain proper oversight on this grant, and report on the 
steps it has taken to implement the recommendations made by the 
Inspector General. The Committee has not received such a 
report, and directs that it be provided to the Committee within 
one month of enactment of this Act.

                           rwandese refugees

    Approximately 1,700,000 refugees from Rwanda are currently 
living in refugee camps in eastern Zaire and Tanzania. In 1996, 
the United Nations High Commissioner for Refugees (UNHCR) will 
spend an estimated $288,400,000 on such camps. This represents 
more than 20 percent of the budget available to UNHCR.
    At the same time, these camps serve as a ``government-in-
exile'' for many of those involved in the genocide that 
occurred in Rwanda. Elements of the former government of Rwanda 
have effectively formed a quasi-government within the camps, 
and appear to be collecting arms for activities against the new 
government in that country.
    For both political and monetary reasons, the indefinite 
maintenance of these camps by the international community is 
not sustainable. The Committee is concerned that the funding 
drain on the budget of UNHCR represented by continued support 
for these camps will lead to diminished resources for other 
regions of the world.
    The Committee supports efforts by the United Nations and 
others to remove from the camps those involved in genocide in 
Rwanda, or those exploiting the refugees for personal or 
political gain. It also urges the State Department to take 
steps to deal with this situation. It that regard, it urges the 
Secretary of State to involve his office directly in this 
effort by requiring the Special Coordinator for Rwanda and 
Burundi to report directly to him and not through 
intermediaries.
    If effective steps cannot be taken in the near term, it may 
be necessary to consider reducing funding for the camps in 
order to prevent continuing indirect support for those involved 
in the genocide in Rwanda--and thus to reduce continuing 
support for those involved in planning armed conflict against 
the current government of Rwanda.
    The Committee has included bill language subjecting funds 
for support of refugees from Rwanda to the regular notification 
procedures of the Committees on Appropriations.

                      extension of refugee status

    The Committee looks favorably upon a one year extension of 
existing law, which facilitates the granting of refugee status 
for certain historically persecuted groups in the former Soviet 
Union and Indochina. Furthermore, the Committee instructs the 
Administration to take into account the history of persecution 
of certain minorities, including Jews from the former Soviet 
Union, when deciding refugee applications from such groups.

                    refugee resettlement assistance

Fiscal year 1996 level..................................      $5,000,000
Fiscal year 1997 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 Pentecostals, including secondary 
migrants who entered the United States after October 1, 1979.

     United States Emergency Refugee and Migration Assistance Fund

Fiscal year 1996 level..................................     $50,000,000
Fiscal year 1997 request................................      50,000,000
Committee recommendation................................      50,000,000

    The Committee has recommended $50,000,000 for the Emergency 
Refugee and Migration Assistance Fund.

                       anti-terrorism assistance

Fiscal year 1996 level..................................     $16,000,000
Fiscal year 1997 request................................      17,000,000
Committee recommendation................................               0

    The Committee has combined these activities with those 
funded in the following account and two programs previously 
funded in ``International Organizations and Programs'' in a new 
``Nonproliferation, Anti-terrorism, Demining, and Related 
Programs'' account.

                 Nonproliferation and Disarmament Fund

Fiscal year 1996 level..................................     $20,000,000
Fiscal year 1997 request................................      20,000,000
Committee recommendation................................               0

    The Committee has combined these activities with those 
funded in the previous account and two programs previously 
funded in ``International Organizations and Programs'' in a new 
``Nonproliferation, Anti-terrorism, Demining, and Related 
Programs'' account.

    Nonproliferation, Anti-terrorism, Demining and Related Programs

Fiscal year 1996 level..................................              $0
Fiscal year 1997 request................................               0
Committee recommendation................................     135,000,000

    In response to the increased emphasis the Congress and the 
President have placed on nonproliferation and anti-terrorism 
activities, as well as to provide the executive branch with 
more flexibility in administering funds for these activities, 
the committee has created a new account for ``Nonproliferation, 
Anti-terrorism, Demining, and Related Programs''.
    This new account integrates funding for activities 
previously funded in ``Anti-terrorism Assistance'' and the 
``Nonproliferation and Disarmament Fund'' into a single account 
for these similar activities. Demining activities which were 
previously funded in ``Foreign Military Financing Program'' are 
also included. Funding for two nonproliferation activities (the 
Korean Peninsula Energy Development Organization and the U.S. 
voluntary contribution to the International Atomic Energy 
Agency) are also in this new account. Finally, the President's 
request for $50,000,000 for Israeli anti-terrorism assistance 
is similarly included.

                         NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED PROGRAMS                        
----------------------------------------------------------------------------------------------------------------
                            -                                  FY96--         FY97 request--       Committee    
----------------------------------------------------------------------------------------------------------------
Anti-terrorism.........................................       $16,000,000-      $17,000,000--        $15,000,000
NDF....................................................         20,000,000       20,000,000--         15,000,000
Demining--.............................................         6,000,000-        6,000,000--          6,000,000
IAEA---................................................        43,000,000-       36,000,000--         36,000,000
KEDO---................................................        22,000,000-       25,000,000--         13,000,000
Israel Anti-terrorism-.................................        50,000,000-       50,000,000--         50,000,000
                                                        --------------------------------------------------------
      Total---.........................................       157,000,000-      154,000,000--        135,000,000
----------------------------------------------------------------------------------------------------------------

    The committee fully funds the administration request for 
demining, the U.S. contribution to the IAEA, and anti-terrorism 
assistance to Israel.-

                       anti-terrorism assistance

    The Committee recommends $15,000,000 for anti-terrorism 
assistance. In fiscal year 1996 the administration requested 
$15,000,000 for this account, however, the Congress provided 
$16,000,000 to enable the administration to respond to certain 
immediate activities of concern to the Congress. The Committee 
believes that the additional $1,000,000 provided for this 
program last year, as well as certain programmatic overlaps in 
activities which may be funded using Israeli anti-terrorism 
assistance, combine to justify the committee's recommended 
level of $15,000,000 in fiscal year 1997 for this important and 
worthwhile program.

                 nonproliferation and disarmament fund

    The Committee recommends $15,000,000 for the 
Nonproliferation and Disarmament Fund which is $5,000,000 less 
than the administration request. The Committee strongly 
supports the core nonproliferation activities of the NDF which 
are currently funded at $10,000,000. The Committee has however 
reduced the administration request for export control 
activities from $10,000,000 to $5,000,000. It is the 
Committee's view that this program, while worthwhile, does not 
meet the Committee's criteria for NDF funding only for urgent, 
unanticipated nonproliferation activities of immediate concern 
to the United States. Longer term programmatic activities, such 
as export controls, should be funded in the appropriate portion 
of the State Department budget where they will be subject to 
the normal conditions for legislative oversight and review. The 
Committee expects the administration to make this transition 
during this fiscal year and therefore has provided $5,000,000 
to facilitate this transition.

                          demining activities

    The Committee strongly supports the administration's 
request of $6,000,000 for demining activities. The Committee 
urges the administration to substantially improve interagency 
coordination of the U.S. government's demining activities and 
to unify, to the extent feasible, the budget for this important 
activity which enjoys strong support in the Congress. The 
Committee directs the Secretary of State, in consultation with 
the Secretary of Defense, to provide a report to the Committees 
on Appropriations not later than January 15, 1997, which (a) 
details the interagency process for coordination of demining 
activities and identifies the principal agencies and offices in 
the U.S. government which have responsibility for demining 
policy or programmatic activities, (b) identifies all U.S. 
government funds which are utilized to support international 
humanitarian demining activities, and (c) details actions taken 
by the executive branch to improve the coordination of demining 
policy and activities in the U.S. government and, actions taken 
by the executive branch to integrate the budget for these 
various activities into a unified humanitarian demining budget.

            korean peninsula energy development organization

    -The Committee also provides that not to exceed $13,000,000 
may be made available for the United States contribution to the 
Korean Peninsula Energy Development Organization (KEDO) and 
these funds may only be used for administrative expenses and 
heavy fuel oil costs. The Committee notes that in justifying a 
United States contribution to KEDO, the administration 
repeatedly briefed the Congress that the annual U.S. 
contribution to the heavy fuel oil portion of the Agreed 
Framework would be $10,000,000 per year and that the remaining 
costs associated with the heavy fuel oil commitment were to be 
raised by the administration from other donor nations. The 
Committee fully supported the administration's 1996 request for 
heavy fuel oil and administrative expenses associated with KEDO 
($13,000,000) and recommends the same level for 1997. The 
Committee did not provide the additional funds requested this 
year for heavy fuel costs. The Committee has also repeatedly 
emphasized that in these tight budgetary times it could not 
justify additional funds for heavy fuel oil. In doing so, the 
Committee has strongly supported the administration's plan to 
enlist other international donors to share this commitment. The 
Committee notes, however, that while administration officials 
have repeatedly stated that this activity is a presidential 
priority, the United States international fundraising efforts 
to date do not reflect Presidential attention or priority. The 
Committee believes it is essential that other nations share the 
financial burden in responding to the North Korean nuclear 
threat. The United States already spends over $2,500,000,000 
per year to ensure stability and peace on the Korean peninsula 
and therefore the Committee fully expects other nations to fund 
the heavy fuel component of the Agreed Framework. The Committee 
did not waive the statutory provisions which currently prohibit 
the provision of assistance to North Korea.

                     TITLE III--MILITARY ASSISTANCE

                  Funds Appropriated to the President

             International Military Education and Training

Fiscal year 1996 level..................................     $39,000,000
Fiscal year 1997 request................................      45,000,000
Committee recommendation................................      45,000,000

    The Committee recommends the administration request of 
$45,000,000 for the International Military Education and 
Training program. The Committee recommendation reflects its 
continued support for the IMET program, particularly those new 
programs initiated in the NIS and Central Europe since 1991.
    The Committee continues prior year bill language 
prohibiting IMET funding for Zaire and Guatemala and language 
allowing expanded IMET only for Indonesia. With respect to 
Indonesia, the Committee strongly urges the administration to 
continue to carefully review candidates from Indonesia to make 
certain they have not been involved in previous human rights 
abuses. The Committee hopes that making expanded IMET available 
to Indonesia will substantially improve the human rights 
performance of the Indonesian military.

                                  peru

    The Committee believes the Government of Peru has made 
considerable progress in the areas of political pluralization 
and meaningful free market reform. As a result of this laudable 
progress, the Committee has deleted Peru from the list of 
nations prohibited from receiving FMF funds. However, the 
Committee also emphasizes that it expects the Government of 
Peru to continue to improve its human rights performance and 
maintain its commitment to ongoing political and judicial 
reform. As a result, the Committee notes that the 
administration has not requested FMF funds for Peru in 1997 and 
the Committee supports this position. The Committee would 
further note that if FMF funds are requested in FY97 the 
request would be subject to the regular notification procedures 
of the Committees on Appropriations.

              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.

                         school of the Americas

    The Committee 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 further believes that the human rights component of 
the curriculum should be increased. The Committee also urges 
the Department of State and the Department of Defense to 
rigorously screen potential students to make certain they have 
not taken part in past human rights abuses. The Committee will 
continue to carefully review the activities of the School of 
the Americas and urges the Department of State and the 
Department of Defense to place increased emphasis on monitoring 
the human rights performance of its graduates.
    In this regard, the Committee instructs the Secretary of 
Defense, in consultation with the Secretary of State, to 
prepare and submit to the Committees on Appropriations no later 
than January 15, 1997, a report which (a) details the overall 
selection process for potential students, (b) describes the 
process used to screen potential students to determine if they 
have participated in past human rights abuses, and (c) 
describes the long-term monitoring of School of the Americas' 
graduates in the area of human rights, to include cases of 
human rights abuses as well as cases where graduates make 
significant contributions to democracy-building and improved 
human rights practices.

                   Foreign Military Financing Program

                                 grants

Fiscal year 1996 level..................................  $3,278,390,000
Fiscal year 1997 request................................   3,228,250,000
Committee recommendation................................   3,222,250,000

                         subsidy appropriations

Fiscal year 1996 level..................................     $64,400,000
Fiscal year 1997 request................................      40,000,000
Committee recommendation................................      35,000,000

                                 loans

Fiscal year 1996 level..................................  ($544,000,000)
Fiscal year 1997 request................................   (370,028,000)
Committee recommendation................................   (323,815,000)

    The Committee has recommended $3,222,250,000 in Foreign 
Military Financing grants, and $35,000,000 as a subsidy 
appropriation for loans. The amount provided for the subsidy 
appropriation will support a loan program totaling 
$323,815,000. Thus, the total program level of foreign military 
grants and loans for fiscal year 1996 is $3,546,065,000. This 
program level is $52,213,000 below the amount requested by the 
President for fiscal year 1997 and $276,325,000 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, 1996, 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 of Egyptian arms acquisitions financed 
by FMF funds. The Committee directs the Secretary of Defense to 
submit to the Committees on Appropriations, no later than 
January 15, 1997, a report which provides a detailed 
description of the present status of Egyptian cash flow 
financed arms transfers as well as any plans to enter into 
future cash flow financing agreements with Egypt.

                             jordan f-16's

    The Committee notes that the administration request for FMF 
grants includes $30,000,000 for Jordan. These funds will be 
used to support the transfer of 16 F-16 fighter aircraft to the 
Government of Jordan. The Committee also notes that the overall 
downsizing of the U.S. defense industry is costing thousands of 
American defense-related jobs. The Committee therefore urges 
the Department of Defense to give priority consideration to 
American defense firms in awarding contracts for upgrades and 
other major improvements to these aircraft prior to their 
delivery to the Government of Jordan.

          warsaw initiative and partnership for peace nations

    The Committee continues to support the President's January 
1994 Warsaw Initiative to provide military assistance to 
Partnership for Peace (PFP) nations. The Committee believes the 
1997 request will continue to enhance security and stability in 
Europe by promoting the standardization and interoperability, 
as well as the continued downsizing, of the armed forces of 
participating nations, particularly those of nations most 
likely to be considered for NATO membership. The 
administration's fiscal year 1997 request for $60,000,000 will 
continue to support transfers of equipment to enhance the 
interoperability of PFP forces with NATO forces, to improve the 
capability of PFP nations to participate in NATO-led 
peacekeeping efforts, and to enable the new democracies in 
Central Europe to continue the process of reorienting their 
militaries in the post-Cold War era.

                   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 while Russia 
is a member of the Partnership for Peace, the Committee 
strongly believes it is still extremely premature to consider 
providing military assistance to Russia.

                        administrative expenses

    The Committee has continued a limitation on administrative 
expenses of $23,250,000, the level requested by the 
Administration and the same level approved for 1996.

                  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, which is the same level included in 
last year's bill, 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 prior year language 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.

                                 loans

    The Committee has included a provision in the bill limiting 
loans to $323,815,000.

                         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 to 
carefully review administrative expenses in an effort to reduce 
expenditures.

                              prohibitions

    The Committee has included bill language prohibiting 
military assistance to Zaire, Sudan, Liberia, and Guatemala. 
The administration did not request military assistance for 
these countries for fiscal year 1997.

                    fmf loans for greece and turkey

    The Committee reaffirms that last year marked the 
graduation of both Greece and Turkey as annual FMF loan program 
recipients for the purpose of supporting major new weapons 
acquisitions. However, in last year's report the Committee 
noted that it would entertain future sustainment requests for 
either country based upon the request's individual merit. The 
administration's fiscal year 1997 request for FMF loans for 
Greece and Turkey is a significant reduction from the 1996 
program level and is to be used to support upgrades or 
replacement parts for existing U.S. origin equipment currently 
in the inventories of the Turkish and Greek armed forces.

                    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 to the Fund be returned to the Treasury. This 
remains in effect and will produce a reduction in the deficit 
of approximately $166,000,000 in fiscal year 1997.

                        Peacekeeping Operations

Fiscal year 1996 level..................................     $70,000,000
Fiscal year 1997 request................................      70,000,000
Committee recommendation................................      65,000,000

    The Committee recommends $65,000,000 for voluntary 
contributions for International Peacekeeping Operations. This 
amount is $5,000,000 below the level provided in fiscal year 
1996 and 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. Up to $3,000,000 
could be used to support implementation of the agreement 
between the Patriotic Union of Kurdistan and the Kurdistan 
Democratic Party.

             voluntary contribution to war crimes tribunal

    The Committee strongly supports the efforts of the War 
Crimes Tribunal in its work to ensure the impartial 
administration of justice regarding war crimes committed during 
the Bosnian conflict. To further this effort, up to $3,000,000 
of the funds appropriated in this account may be provided to 
the Tribunal as a voluntary contribution.

               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 for an eleventh institution, 
the Middle East Bank for Economic Cooperation and Development. 
The request includes two institutions that were not funded last 
year. The 1997 budget estimate of $1,432,568,810 is more 
realistic than the 1996 request of $2,303,865,000, but the 
Committee cannot recommend full funding this year under its 
reduced budget allocation for this appropriations bill. This 
allocation must accommodate several other high priority items: 
the $200,000,000 annual reconstruction effort in Bosnia, a new 
$50,000,000 counter-terrorism program for Israel, and an 
increase of $35,000,000 for international narcotics control.
    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. 
Last year, 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 such 
projects have volunteered that certain of the MDBs had been 
vital to their undertakings which promote sustainable 
development abroad and good jobs in the United States. Reports 
from the private sector about the impact of new restrictions on 
United States firms seeking to bid on projects funded by the 
International Development Association (IDA) have also affected 
the Committee recommendations.
    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 industrial partners 
undertook a review of the MDBs as part of the Halifax Economic 
Summit last year. 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?

     Contribution to the International Bank for Reconstruction and 
                              Development

                            paid-in capital

Fiscal year 1996 level..................................     $28,189,963
Fiscal year 1997 request................................               0
Committee recommendation................................               0

            Contribution to the Global Environment Facility

Fiscal year 1996 level..................................     $35,000,000
Fiscal year 1997 request................................     100,000,000
Committee recommendation................................      30,000,000


    The Committee has no request for ordinary paid-in capital 
for the International Bank for Reconstruction and Development 
(IBRD) for which $28,189,963 was provided for fiscal year 1996. 
The Committee recommends $30,000,000 for the Global Environment 
Facility (GEF), administered by the IBRD. The recommendation is 
$5,000,000 less than the 1996 enacted level, and the same as 
the amount agreed to by the House in two recorded votes on June 
27, 1995.
    The Committee views the restructured GEF as a potentially 
important multilateral funding mechanism for addressing global 
environmental problems such as 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 in cooperation 
with 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 year 1996 level..................................    $700,000,000
Fiscal year 1997 request................................     934,503,100
Committee recommendation................................     525,000,000

    The Committee is providing $525,000,000 toward the U.S. 
contribution to the Tenth Replenishment of the International 
Development Association, a reduction of $175,000,000 below the 
1996 enacted level. The 1997 request for $934,503,100 would 
have fully met all remaining pledges to IDA X. The recommended 
substantial reduction from the Administration's request will 
mean that the U.S. will be unable to fulfill its commitment to 
IDA X recently renegotiated with other donors in Tokyo. The 
Committee wishes to make clear that the decision to provide 
less than the full request is a result of necessary budgetary 
constraints and regret over the decision by other donors to 
deny American companies access to initial procurement under IDA 
XI.

                     explanation of recommendation

    The Committee is concerned about the formation of an 
Interim Trust Fund within the International Development 
Association (IDA), because American companies will be denied 
the opportunity to bid on contracts and projects funded from 
this entity. Therefore the Committee has prohibited the 
obligation of any of the funds provided for IDA until the 
Secretary of the Treasury submits a report detailing efforts 
made by U.S. officials to oppose the formation of such Fund and 
discussing the adverse impacts of other potential alternatives 
to the Fund.
    The exclusion of American contractors from the opportunity 
to bid on any project is highly unusual and contrary to long 
established practices of multilateral banks. The Committee 
expects to receive this report in a timely fashion and expects 
to be informed immediately of any future attempts to exclude 
American contractors from bidding on any World Bank projects. 
Despite the historical precedent for this Interim fund concept 
and the extent of U.S. arrears to the International Development 
Association, there is no justification for the exclusion of 
American companies especially given the prominent and pivotal 
role the U.S. has played in multilateral banks historically.
    Punitive restrictions by IDA on procurement by U.S. 
companies cannot be ignored by the Committee in light of its 
uncomplaining provision of more than 20 percent of IDA funds 
over the past 35 years while receiving only 10 percent of IDA 
procurement.
    The Committee, with exceptions, supports U.S. participation 
in this development program which is directed toward the 
poorest countries in the world, but also finances relatively 
well-off nations. The Committee recognizes that IDA could play 
an important role in building markets for U.S. exports, as well 
as enhancing the effectiveness of U.S. bilateral export 
promotion programs. This is not possible in 1997 as a result of 
the short-sighted and punitive position taken by certain other 
donors who lack appreciation of the historic sacrifices made by 
American taxpayers to finance nine previous replenishments of 
IDA, much less the generous attitude toward their countries by 
American taxpayers in the aftermath of World War II.

                             ida and china

    The Committee continues to have serious reservations about 
China receiving IDA loans, given its current strong economic 
and financial status and its human rights record. Last year, 
the Committee was encouraged that the Treasury Department had 
committed to graduating China from IDA. The Committee is 
disappointed that Treasury has had only limited success at this 
effort and continues to oppose the eligibility of China to 
continue receiving IDA's loans. The Department should continue 
to use every opportunity to accelerate the graduation from IDA 
of China.

                           future role of ida

    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, could play 
an indispensable role in helping the poorest countries become 
integrated into the global economy. The Committee notes that 
the Treasury Department did consult with Congress with regard 
to annual U.S. contributions to IDA XI. 

                   International Finance Corporation

Fiscal year 1996 level..................................     $60,900,000
Fiscal year 1997 request................................       6,656,000
Committee recommendation................................       6,656,000

    The Committee recommends $6,656,000 for the International 
Finance Corporation, the amount requested, and $54,244,000 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).

          Contribution to the Inter-American Development Bank

                     inter-regional paid-in capital

Fiscal 1996 level.......................................     $25,952,110
Fiscal 1997 request.....................................      25,610,667
Committee recommendation................................      25,610,667

                    (Limitation on callable capital)

1996 level..............................................($1,523,767,142)
1997 request............................................ (1,503,718,910)
Committee recommendation................................ (1,503,718,910)

                      Fund for Special Operations

Fiscal 1996 level.......................................     $10,000,000
Fiscal 1997 Request.....................................      31,411,000
Committee recommendation................................      10,000,000

    The Committee has recommended funding for Inter-regional 
paid-in capital of $25,610,667 for fiscal year 1997, the same 
amount as the President's request for the Inter-American 
Development Bank. The Committee has recommended a limitation on 
callable capital of $1,503,718,910 for fiscal year 1997. The 
Committee recommends $10,000,000 for fiscal year 1997, the same 
as the amount provided in fiscal year 1996, for the soft-loan 
Fund for Special Operations. The Committee notes that Inter-
American Development Bank management is considering a plan to 
make the FSO self-sustaining within a few years. Confirmation 
of this graduation policy will be of interest to the Committee.

                      Multilateral Investment Fund

Fiscal year 1996 level..................................     $53,750,000
Fiscal year 1997 request................................      27,500,000
Committee recommendation................................      27,500,000

    The Committee has fully funded the Administration's request 
of $27,500,000 for the U.S. contribution to the Multilateral 
Investment Fund. It was not consulted about the Administration 
decision to cut the MIF request by almost 50 percent from the 
1996 enacted level. The request is substantially less than the 
amount scheduled in agreements with Japan and other donors to 
the 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 Administration plans 
to seek appropriations in future year to meet United States 
commitments to the MIF.
    The MIF has emerged as a cost-effective way of promoting 
micro-enterprise and private sector-led development among 
countries in Latin America and the Caribbean who have a proven 
commitment to economic reform.

               Contribution to the Asian Development Bank

                            paid-in capital

Fiscal 1996 level.......................................     $13,221,596
Fiscal 1997 request.....................................      13,221,596
Committee recommendation................................      13,221,596

                    (Limitation on callable capital)

Fiscal 1996 level.......................................  ($647,858,204)
Fiscal 1997 request.....................................   (647,858,204)
Committee recommendation................................   (647,858,204)

                         Asian Development Fund

Fiscal 1996 level.......................................    $100,000,000
Fiscal 1997 request.....................................     100,000,000
Committee recommendation................................     100,000,000

    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) of the 
Asian Development Bank. The Committee recommends an amount that 
is the same as the request and the 1996 enacted level.
    The request for the soft-loan Asian Development Fund is 
$100,000,000, the same as the amount provided in fiscal year 
1996 but less than half of the amount scheduled to be requested 
this year. The Committee is reluctant to exceed the request, 
and recommends the same.
    The Committee has been informed that the Asian Development 
Bank is considering procurement limitations similar to those 
invoked by IDA against American (and, in this case, Singapore) 
firms. In this case, the hesitation to fund the institution in 
a more timely manner originated in the Executive branch, but 
putative procurement restrictions against American firms by the 
Asian Development Bank and Fund would drastically reduce the 
Committee's willingness to consider future requests.

                        African Development Bank

                            Paid-in Capital

Fiscal 1996 level.......................................               0
Fiscal 1997 request.....................................     $16,000,000
Committee recommendation................................               0

                    (limitation on callable capital)

Fiscal 1996 level.......................................             (0)
Fiscal 1997 request.....................................  ($112,000,000)
Committee recommendation................................             (0)

              Contribution to the African Development Fund

Fiscal 1996 level.......................................               0
Fiscal 1997 Budget Estimate.............................     $50,000,000
Committee recommendation................................               0

    The Committee cannot agree to renew funding for the African 
Development Bank or Fund at this time. Although encouraged by 
the new management of the Bank and Fund, the Committee cannot 
appropriate funds in the absence of an agreement by the members 
of the Bank to fully reform its procedures and replenish its 
resources. The Committee requests that the Treasury Department 
keep it fully informed of the status of replenishment 
negotiations and reform measures undertaken by the Bank and 
Fund.

  Contribution to the European Bank for Reconstruction and Development

                            paid-in capital

Fiscal 1996 level.......................................     $70,000,000
Fiscal 1997 request.....................................      11,916,447
Committee recommendation................................      11,916,447

                    (Limitation on callable capital)

Fiscal 1996 level.......................................  ($163,333,333)
Fiscal 1997 request.....................................    (27,805,043)
Committee recommendation................................    (27,805,043)

    The Committee is recommending $11,914,447 for the European 
Bank for Reconstruction and Development. This amount is 
significantly less than the $70,000,000 provided in fiscal year 
1996 and the same as the President's request. A somewhat larger 
request is anticipated for fiscal year 1998 as part of the 
EBRD's planned first and only replenishment.
    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 1995, more than 70 
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. The 
Committee is encouraged the EBRD has agreed that its 
forthcoming replenishment will be its first and last request 
for public sector funds. The EBRD expects to become the first 
multilateral bank to become self-sustaining and dependent on 
profits and private funds.

                    North American Development Bank

                            paid-in capital

Fiscal 1996 level.......................................     $56,250,000
Fiscal 1997 request.....................................      56,250,000
Committee recommendation................................      50,625,000

                    (limitation on callable capital)

Fiscal 1996 level.......................................  ($318,750,000)
Fiscal 1997 request.....................................   (318,750,000)
Committee recommendation................................   (318,750,000)

    The Administration is requesting $56,250,000 for paid-in 
capital and a limitation of $318,750,000 on callable capital 
subscriptions (which do not require appropriations) of the 
North American Development Bank. The request is the same as the 
1996 enacted level. The Committee recommends $50,625,000 in 
paid-in capital, an amount that is 90 percent of the request. 
The $5,625,000 reduction is deferred until needed in future 
years, and does not reflect any reduction in the Committee's 
support for the NADBank. The deferred amount was intended to 
fund the third year of an economic development effort that is 
only now becoming operational. The $11,250,000 already 
available for obligation and the amount deferred will fund a 
new program affecting non-border localities.
    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 second year 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 wastewater 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.

 Bank for Economic Cooperation and Development in the Middle East and 
                              North Africa

                            paid-in capital

Fiscal 1996 level.......................................               0
Fiscal 1997 request.....................................     $52,500,000
Committee recommendation................................               0

                    (limitation on callable capital)

Fiscal 1996 level.......................................             (0)
Fiscal 1997 request.....................................  ($157,500,000)
Committee recommendation................................             (0)

    The Committee has not provided funds for this proposed new 
institution.

                      International Monetary Fund

      Contribution to the Enhanced Structural Adjustment Facility

Fiscal 1996 level.......................................               0
Fiscal 1997 request.....................................      $7,000,000
Committee recommendation................................               0

    The Committee is unable to recommend any funding in fiscal 
1997 for the Enhanced Structural Adjustment Facility of the 
International Monetary Fund. The President requested $7,000,000 
for this purpose, less than 30 percent of the amount requested 
and denied in fiscal year 1996.

                International Organizations and Programs

Fiscal year 1996 level..................................    $285,000,000
Fiscal year 1997 request................................     325,000,000
Committee recommendation................................     136,000,000

    The Committee is recommending $136,000,000 for 
International Organizations and Programs. This is $149,000,000 
below the fiscal year 1996 level and $189,000,000 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. It has 
also shifted funds for the International Atomic Energy Agency 
(IAEA) and the Korea Peninsula Energy Development Organization 
(KEDO) from this account to ``Nonproliferation, anti-terrorism, 
demining and related programs'' under title II. Therefore, on a 
comparable basis, the recommendation is approximately the same 
as the 1996 level.
    The Committee recommendation includes bill language carried 
in the 1996 appropriations act that limits funding for the 
United Nations Population Fund (UNFPA) to a maximum level of 
$25,000,000, the 1996 House-passed level. It also states that 
none of the funds provided to UNFPA shall be made available for 
activities in China, and that no funds may be made available to 
UNFPA unless the Secretary of State certifies that UNFPA 
activities in China have ended and that the organization has no 
plans to resume activities in China during fiscal year 1997.

                          china and hong kong

    The Committee supports the creation of strong democratic 
institutions in Hong Kong and the protection of its status 
after transfer to China. It is concerned by increasing reports 
of limitations on freedom of the press leading up to the 
transfer of the Colony.

                      organization funding levels

    The Committee is aware that the recommended funding level 
will require reductions in the request for contributions to 
many organizations. However, the highest priority should be 
given to funding for the United Nations Voluntary Fund for 
Victims of Torture at a level at least equal to the budget 
request. The Committee also supports the goals of the United 
Nations Development Program (UNDP) and supports funding for 
UNDP to the maximum extent possible.

                      TITLE V--GENERAL PROVISIONS

    The Committee recommends that many of the general 
provisions carried in the fiscal year 1996 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 on financing nuclear goods

    The Committee has revised section 506 to exempt 
``Nonproliferation, Anti-terrorism, Demining and Related 
Programs'' from the general prohibition on financing nuclear 
goods with funds appropriated under this Act. Previously, 
``International Organizations and Programs'' had been exempt 
from this prohibition.

        prohibition against direct funding for certain countries

    The Committee has revised section 507, that prohibits 
direct funding to selected countries, by deleting Serbia from 
the list of prohibited countries. Serbia has been added to 
section 520.

                       transfers between accounts

    The Committee has revised section 509 by deleting language 
exempting transfers from the regular notification procedure 
requirements.

                  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 and funds to carry out 
section 23 of the Arms Export Control Act.

                       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, including the 
addition of the ``Child Survival and Diseases Program Fund,'' 
``Debt restructuring,'' and ``Nonproliferation, Anti-terrorism, 
Demining and Related Programs''.

limitation of availability of funds for international organizations and 
                               programs.

    The Committee has updated section 516 making funds that are 
returned or not made available for organizations and programs 
because of this section or similar provisions of law, available 
for obligation through September 30, 1998.

               population assistance funding limitations

    The Committee has replaced section 518A with new language 
regarding limitations on population assistance funding. Under 
section 518A, foreign private or nongovernmental organizations 
can receive population assistance funds appropriated under this 
Act only if the organization certifies that it will not perform 
abortions in any foreign country, except where the life of the 
mother would be endangered if the fetus were carried to term or 
in the case of forcible rape or incest. An organization further 
cannot receive funds under this Act until it certifies that it 
will not violate the laws of a foreign country concerning the 
circumstances under which abortion is permitted, regulated, or 
prohibited, or engage in an effort in a foreign country to 
alter the laws or governmental policies concerning the 
circumstances under which abortion is permitted, regulated, or 
prohibited. If a foreign private or nongovernmental 
organization does not issue these certifications, it may 
receive population assistance appropriated under this Act for 
fiscal year 1997, but at a level not to exceed 50 percent of 
the funds made available to the organization in fiscal year 
1995 at a rate of 8.34 percent per month for the first four 
months of fiscal year 1997. Organizations that did not receive 
funds in fiscal year 1995 must meet the certification 
requirements in order to receive funds in fiscal year 1997. 
Population assistance funds for fiscal year 1997 may be made 
available in an amount not to exceed 65 percent of the total 
amount appropriated for fiscal year 1995.

                   special notification requirements

    The Committee has revised section 520, which requires prior 
notification through the Committee's notification process, by 
dropping Guatemala and Nicaragua from the notification 
requirements of this section and adding Serbia and South 
Africa. The Committee has also deleted language that exempted 
prior notification for development assistance for Nicaragua.

                           reciprocal leasing

    The Committee has updated section 524 on reciprocal leasing 
to change the effective date from 1996 to 1997.

       prohibition on bilateral assistance to terrorist countries

    The Committee has revised section 527 by deleting text that 
permitted the application of section 527 ``notwithstanding any 
other provision of law.''

                          debt-for-development

    The Committee has revised section 530, that allows NGOs to 
deposit in interest bearing accounts appropriated funds or 
local currencies, by requiring that such interest earned shall 
be used for the same purpose for which the assistance was 
provided to the organizations.

                           separate accounts

    The Committee has revised the requirement of section 531 
concerning separate accounts for local currencies. The Agency 
for International Development would be required to take all 
``necessary'' steps, rather than ``appropriate'' steps, to 
ensure that local currencies disbursed from a special account 
are used for the purposes agreed upon with the foreign 
government. A new reporting requirement has also been added 
requiring the AID Administrator to report annually, as part of 
the justification documents, on the use of local currencies for 
the administrative requirements of the U.S. Government.

                       pow/mia military drawdown

    The Committee has updated section 534, which permits the 
drawdown of U.S. military equipment related to POW/MIA 
activities, to extend the drawdown authority for another fiscal 
year.

                 mediterranean excess defense articles

    The Committee has revised section 535, which requires that 
excess defense equipment provided to Greece and Turkey be 
provided at levels that closely approximate the ratio of 
foreign military financing provided to the two countries, by 
requiring that excess defense articles provided for the four-
year period beginning on October 1, 1996 shall be provided 
consistent with the manner in which the President made 
available excess defense articles during the four-year period 
that began on October 1, 1992, pursuant to section 573(e) of 
the 1990 Foreign Operations Appropriations Act.

               authority to assist bosnia and herzegovina

    The Committee has revised and updated section 539, which 
provides permissive authority for the drawdown of United States 
military equipment for Bosnia and Herzegovina. The Committee 
has deleted out-dated congressional findings relating to the 
U.N. arms embargo to any country of the former Yugoslavia and 
language concerning the lifting of the U.N. arms embargo or a 
unilateral lifting by the President. Section 539 continues the 
authority permitting the drawdown of U.S. military equipment 
for Bosnia and Herzegovina at an aggregate amount that totals 
$100,000,000 for the combined two-year period of fiscal years 
1996 and 1997.

    restrictions on the termination of sanctions against serbia and 
                               montenegro

    The Committee has revised section 540 by deleting 
subsection (d) that amended section 660(b) of the Foreign 
Assistance Act of 1961 relating to assistance for police 
training for sanctions monitoring and enforcement, and for the 
reconstitution of civilian police authority in a nation 
emerging from instability.

                          special authorities

    The Committee has revised section 541, concerning special 
authorities, by increasing from $40,000,000 to $50,000,000 the 
amount available in fiscal year 1997 to the President under his 
contingency authority authorized in section 451 of the Foreign 
Assistance Act of 1961.

                       anti-narcotics activities

    The Committee has revised section 543 by making adjustments 
to references of provisions contained in section 534 of the 
Foreign Assistance Act of 1961. ESF funds for Administration of 
Justice programs may be provided consistent with section 534(b) 
(previously section 534) of the Foreign Assistance Act of 1961. 
In addition, the Committee has added two ``notwithstanding'' 
authorities, permitting the use of funds available under this 
section, notwithstanding section 534(c) and the second sentence 
of section 534(e) of the Foreign Assistance Act of 1961.

                       eligibility for assistance

    The Committee has updated section 544 to continue the 
authority for another fiscal year permitting Public Law 480 
food assistance without regard to country restrictions 
contained in this or any other Act.

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

    The Committee has updated section 553 by changing 
references of the relevant presidential authority to section 
604(a) of the Middle East Peace Facilitation Act of 1995.

                               LANDMINES

    The Committee has revised section 556, concerning 
landmines, by deleting a proviso that amended section 1365(c) 
of the National Defense Authorization Act for Fiscal Year 1993.

                        HUMANITARIAN ASSISTANCE

    The Committee has revised section 559 by adding the section 
title, ``Humanitarian Assistance.''

                     EQUITABLE ALLOCATION OF FUNDS

    The Committee has added a new provision, section 561, 
providing that no country in Latin America and the Caribbean 
region can receive more than 20 percent of funds appropriated 
by this Act for development assistance and ESF provided for 
bilateral and Latin America and the Caribbean regional 
programs.

                 INTERNATIONAL DEVELOPMENT ASSOCIATION

    The Committee has added a new provision, section 564, 
authorizing $525,000,000 for a U.S. contribution to the tenth 
replenishment of the International Development Association.

                                LIBERIA

    The Committee has revised section 567, that permits 
assistance for Liberia notwithstanding debt arrearages to the 
U.S. Government, by deleting the text of an amendment to Public 
Law 102-270.

                               GUATEMALA

    The Committee has revised section 568, regarding military 
assistance to Guatemalan military forces, by deleting 
references to Guatemalan security forces.

          SANCTIONS AGAINST COUNTRIES HARBORING WAR CRIMINALS

    The Committee has revised section 569, concerning sanctions 
against countries harboring war criminals, by including a 
Presidential authorization to withhold bilateral assistance. In 
addition, a requirement that the Secretary of the Treasury 
instruct U.S. executive directors of the international 
financial institutions to oppose loans to such countries is 
modified by a provision stating that the Secretary should 
instruct U.S. executive directors to oppose loans to such 
countries.

                   LIMITATION ON ASSISTANCE FOR HAITI

    The Committee has revised section 570 that prohibits non-
humanitarian assistance to the Government of Haiti unless the 
President reports to Congress that the Government of Haiti is 
investigating extrajudicial and political killings and 
cooperating with U.S. authorities in such investigations. The 
President may waive this section because of national interest 
reasons, but only on a quarterly basis, and he may not delegate 
the authority to make the national interest determination. The 
Committee has deleted language permitting the waiver of this 
section if it was necessary to assure the safe and timely 
withdrawal of American forces from Haiti.

                   limitation of assistance to turkey

    The Committee has included a new section 571 limiting 
Economic Support Fund assistance to Turkey to $25,000,000.

                      reports regarding hong kong

    The Committee has included a new section 572 similar to 
section 576 in the 1996 act requiring reports on Hong Kong.

               provisions retained from fiscal year 1996

    The following general provisions from the fiscal year 1996 
bill were retained in the fiscal year 1997 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. 508. Military Coups.
          Sec. 511. Availability of Funds.
          Sec. 512. Limitation on Assistance to Countries in 
        Default.
          Sec. 513. Commerce and Trade.
          Sec. 514. Surplus Commodities.
          Sec. 517. Economic Support Fund Assistance for 
        Israel.
          Sec. 518. Prohibition on Funding for Abortions and 
        Involuntary Sterilizations.
          Sec. 519. Reporting Requirement.
          Sec. 521. Definition of Program, Project, and 
        Activity.
          Sec. 522. Child Survival and AIDS Activities.
          Sec. 523. Prohibition Against Indirect Funding to 
        Certain Countries.
          Sec. 525. Notification on Excess Defense Equipment.
          Sec. 526. Authorization Requirement.
          Sec. 528. Commercial Leasing of Defense Articles.
          Sec. 528A. Competitive Insurance.
          Sec. 529. Stingers in the Persian Gulf Region.
          Sec. 532. Compensation for U.S. Executive Directors.
          Sec. 533. Compliance with UN Sanctions Against Iraq.
          Sec. 536. Cash Flow Financing.
          Sec. 537. Authorities for the Peace Corps, The Inter-
        American Foundation and the African Development 
        Foundation.
          Sec. 538. Impact on Jobs in the United States.
          Sec. 542. Policy on Terminating the Arab League 
        Boycott of Israel.
          Sec. 544A. Earmarks.
          Sec. 545. Ceilings and Earmarks.
          Sec. 546. Prohibition on Publicity or Propaganda.
          Sec. 547. Use of American Resources.
          Sec. 548. Prohibition of Payments to UN Members.
          Sec. 549. Consulting Services.
          Sec. 550. Private Voluntary Organizations--
        Documentation.
          Sec. 551. Prohibition on Assistance to Foreign 
        Governments that Export Lethal Military Equipment to 
        Countries Supporting International Terrorism.
          Sec. 552. Withholding of Assistance for Parking Fines 
        Owed by Foreign Countries.
          Sec. 554. Export Financing Transfer Authorities.
          Sec. 555. War Crimes Tribunals.
          Sec. 557. Restrictions Concerning the Palestinian 
        Authority.
          Sec. 558. Prohibition on Payment of Certain Expenses.
          Sec. 560. Withholding of Assistance to Countries 
        Supporting Nuclear Power Plant in Cuba.
          Sec. 562. Purchase of American-Made Equipment and 
        Products.
          Sec. 563. Limitation of Funds for North American 
        Development Bank.
          Sec. 565. Special Debt Relief for the Poorest.
          Sec. 566. Authority to Engage in Debt Buybacks or 
        Sales.

                       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 1997 APPROPRIATIONS                    
                          [Dollars in millions]                         
------------------------------------------------------------------------
                                              Budget                    
                                             authority        Outlays   
------------------------------------------------------------------------
Sec. 602(b):                                                            
    Discretionary.......................          11,950          13,311
    Mandatory...........................              44              44
                                         -------------------------------
      Total.............................          11,994          13,355
                                         ===============================
This bill:                                                              
    Discretionary.......................          11,950          13,297
    Mandatory...........................              44              44
                                         -------------------------------
      Total.............................          11,994          13,341
------------------------------------------------------------------------

    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 1997 Appropriations

                                                                Millions
Budget authority........................................         $11,922
Outlays.................................................          11,605
Fiscal Year:
    1997................................................           5,088
    1998................................................           3,656
    1999................................................           1,162
    2000................................................             719
    2001 and future years...............................             980

               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 1997 have not yet been 
enacted. The bill allows funds appropriated in the bill to be 
obligated notwithstanding the lack of authorizations of 
appropriations.
    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. Under ``Export-Import Bank'', the Committee permits up 
to $50,000,000 be available for tied-aid grants purposes.
    5. 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 costs. 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. 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. Under ``Contribution to the International Finance 
Corporation'', the Committee limits the amount that can be used 
to purchase capital stock and appropriates $6,656,000.
    8. A new account has been added providing $600,000,000 for 
``Child Survival and Disease Programs Fund''.
    9. Under ``Development Assistance'', the Committee provides 
that not to exceed $12,000,000 may be transferred to ``Debt 
restructuring'', subject to the regular notification procedures 
of the Committee.
    10. Under ``Development Assistance'' the bill contains 
provisions relating to abortion that were carried in the 1996 
act.
    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.
    12. Under ``International Disaster Assistance'', funds are 
made available for rehabilitation and reconstruction 
assistance.
    13. 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.
    14. In title II, 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.
    15. In title II, 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. Program funds are 
limited to South Africa.
    16. 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.
    17. Under ``Operating Expenses of the United States Agency 
for International Development'', the Committee has placed 
conditions on the proposed move of the agency to a building in 
the Federal Triangle of the District of Columbia.
    18. On page 22, under ``Economic Support Fund'', the 
Committee has continued the prohibition on the transfer of 
assistance to the Government of Zaire. The application of this 
provision should be the same as in prior fiscal years.
    19. 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.
    20. 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; funds are made available as if they were considered 
economic assistance under the Foreign Assistance Act; and funds 
for Bosnia are subject to certain conditions, including 
limitations on funds for housing.
    21. Under ``Assistance for the New Independent States of 
the Former Soviet Union'', the Committee has included a 
provision regarding utilization of the private sector.
    22. 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.
    23. Funding is provided for ``Migration and Refugee 
Assistance'', and a limitation of $12,000,000 is provided for 
administrative expenses. Notification is required for funds for 
Rwandese refugees.
    24. 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.
    25. Under ``Nonproliferation, Anti-terrorism, Demining, and 
Related Programs'', 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.
    26. Under ``International Military Education and 
Training'', the Committee provides IMET for Indonesia only for 
expanded military education and training.
    27. 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 $103,471,000 and $147,816,000, 
respectively and included other provisions.
    28. 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.
    29. 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.
    30. Under ``Contribution to the European Bank for 
Reconstruction and Development'', the Committee has limited to 
$11,916,447 the amount appropriated that may be expended for 
the purchase of stock during fiscal year 1997 and placed a 
limit on callable capital.
    31. The Committee has provided funds for the paid-in 
capital stock of the ``North American Development Bank'' and 
placed a limit on callable capital.
    32. Under ``International Organizations and Programs'', the 
Committee has prohibited and conditioned the funding of certain 
organizations and programs.
    33. Under ``International Organizations and Programs'', the 
Committee provides that not more than $25,000,000 shall be 
available for UNFPA and imposes other limitations.
    34. On pages 59 through 156, under ``General Provisions'':
    Sec. 506, regarding a prohibition on financing nuclear 
goods, is revised so that the prohibition applies to 
Nonproliferation, Anti-terrorism, Demining and Relating 
Programs instead of International Organizations and Programs.
    Sec. 507, prohibiting direct funding for certain countries, 
is revised by deleting Serbia from the list of prohibited 
countries.
    Sec. 509, regarding transfers between accounts, is revised 
by deleting language triggering notification procedure 
requirements for all transfers between accounts.
    Sec. 510, regarding deob/reob authority, has been updated.
    Sec. 515 continues the provision for congressional 
notification requirements, updating it to reflect the new bill 
account structure and account titles.
    Sec. 516, limiting the availability of funds for 
international organizations and programs, has been updated to 
permit funds which are returned or not made available to 
organizations and programs because of the limitations of this 
section to remain available for obligation through September 
30, 1998.
    Sec. 518A, placing restrictions and limitations on 
population assistance, is revised. Under section 518A, foreign 
private or nongovernmental organizations can receive population 
assistance funds appropriated under this Act only if the 
organization certifies that it will not perform abortions in 
any foreign country, except where the life of the mother would 
be endangered if the fetus were carried to term or in the case 
of forcible rape or incest. An organization further cannot 
receive funds under this Act until it certifies that it will 
not violate the laws of a foreign country concerning the 
circumstances under which abortion is permitted, regulated, or 
prohibited, or engage in an effort in a foreign country to 
alter the laws or governmental policies concerning the 
circumstances under which abortion is permitted, regulated, or 
prohibited. If a foreign private or nongovernmental 
organization does not issue these certifications, it may 
receive population assistance appropriated under this Act for 
fiscal year 1997, but at a level not to exceed 50 percent of 
the funds made available to the organization in fiscal year 
1995 and apportioned at not more than 8.34% for the first four 
months of 1997. Organizations that did not receive funds in 
fiscal year 1995 must meet the certification requirements in 
order to receive funds in fiscal year 1997. Population 
assistance funds for fiscal year 1997 may be made available in 
an amount not to exceed 65 percent of the total amount 
appropriated for fiscal year 1995.
    Sec. 520 has been revised by dropping Guatemala and 
Nicaragua from the notification requirements of this section, 
adding South Africa and Serbia, and deleting text that applied 
to only Nicaragua.
    Sec. 524, regarding reciprocal leasing, has been updated.
    Sec. 527, prohibiting bilateral assistance to terrorist 
countries, is revised by deleting text permitting the 
application of section 527 ``notwithstanding any other 
provision of law.''
    Sec. 530 continues the authority in debt-for-development 
programs for NGOs to deposit funds in interest bearing accounts 
and using the interest earned. Section 530 is revised to 
require that such interest shall be used for the same purpose 
for which the assistance was provided to the organizations.
    Sec. 531, regarding separate accounts, is revised by 
requiring the Agency for International Development to take all 
``necessary'' steps, rather than ``appropriate'' steps, to 
ensure that local currencies disbursed from a special account 
are used for the purposes agreed upon with the foreign 
government. A new reporting requirement has also been added 
concerning the use of local currencies for the administrative 
requirements of the U.S. Government.
    Sec. 534 continues POW/MIA military drawdown authority for 
fiscal year 1997.
    Sec. 535, regarding excess defense articles for Greece and 
Turkey, continues the requirement that such articles be 
provided at levels that closely approximate the ratio of 
foreign military financing provided to the two countries. It is 
revised by extending the authority for a four-year period 
beginning on October 1, 1996, to be provided consistent with 
the manner in which the President made available excess defense 
articles during the four-year period that began on October 1, 
1992, pursuant to section 573(e) of the FY 1990 Foreign 
Operations Appropriations Act.
    Sec. 539 continues the drawdown authority for defense 
articles for Bosnia and Herzegovina for another fiscal year, 
but limits the value of such articles to an aggregate total of 
$100 million for the combined two-year period of fiscal years 
1996 and 1997. Section 539 is also revised by deleting out-
dated congressional findings relating to the U.N. arms embargo 
to any country of the former Yugoslavia and language concerning 
the lifting of the U.N. arms embargo or a unilateral lifting by 
the President.
    Sec. 541 continues special authorities in prior year 
legislation and increases the President's contingency authority 
to $50 million.
    Sec. 543, regarding anti-narcotics activities, is continued 
and revised by making adjustments to references of provisions 
contained in section 534 of the Foreign Assistance Act of 1961, 
including the addition of two ``notwithstanding'' authorities 
covering section 534(c) and the second sentence of section 
534(e) of the Foreign Assistance Act of 1961.
    Sec. 544, regarding eligibility for assistance, has been 
continued and updated.
    Sec. 553, regarding limitations for the PLO for the West 
Bank and Gaza, is revised by changing references of the 
relevant presidential authority to section 604(a) of the Middle 
East Peace Facilitation Act of 1995.
    Sec. 554, regarding export financing transfer authorities, 
has been updated.
    Sec. 561, a new provision, provides that no country in 
Latin America and the Caribbean can receive more than 20 
percent of funds appropriated by this Act for development 
assistance and ESF provided for bilateral and Latin America and 
the Caribbean regional programs.
    Sec. 564, a new provision, authorizes $525 million for a 
U.S. contribution to the tenth replenishment of the 
International Development Association.
    Sec. 568, regarding military assistance to Guatemala, is 
revised by deleting references to Guatemalan security forces.
    Sec. 569, concerning sanctions against countries harboring 
war criminals, is revised by deleting a mandatory prohibition 
on bilateral assistance to such countries and substituting a 
permissive Presidential authorization to withhold such 
assistance. In addition, a requirement that the Secretary of 
the Treasury shall instruct U.S. executive directors of the 
international financial institutions to oppose loans to such 
countries is replaced by a provision stating that the Secretary 
should instruct U.S. executive directors to such institutions 
to oppose loans to countries harboring war criminals.
    Sec. 570, placing limitations on non-humanitarian 
assistance to Haiti, is revised to require any Presidential 
waiver of restrictions of such assistance to be made on a 
quarterly basis and by directing that a determination to waive 
the restrictions must by made by the President and cannot be 
delegated. Language has been deleted that permitted the waiver 
of this section if it was necessary to assure the safe and 
timely withdrawal of American forces from Haiti.
    Sec. 572, continues for an additional year the reports on 
Hong Kong carried as section 576 in the 1996 act.

                  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 in section 524 would amend section 
61(a) of the Arms Export Control Act and extend the leasing 
authority of that section through fiscal year 1997, 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 for the time 
        not 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 to 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 cost 
        incurred by the United States Government in leasing 
        such articles, including reimbursement for depreciation 
        of such articles while leased, the costs of restoration 
        and replacement if the articles are damaged while 
        leased, and the replacement cost (less any depreciation 
        in the value) of the articles if the articles are lost 
        or destroyed while leased.
The requirement of paragraph (4) shall not apply to leases 
entered into for purposes of cooperative research of 
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 
        [1996] 1997 and only with respect to one country, 
        unless the Congress hereafter provides otherwise.
The preceding sentence does not constitute authorization of 
appropriations for payments by the United States for leased 
articles.

                      reports regarding hong kong

    The accompanying bill in section 572 would amend section 
301 of the United States-Hong Kong Policy Act of 1992 (22 
U.S.C. 5731) by inserting an additional date, ``March 31, 
1997'', for the submission of the mandated report, as follows:
    Sec. 301. Reporting Requirement.--Not later than March 31, 
1993, March 31, 1995, March 31, 1996, March 31, 1997, March 31, 
1997, March 31, 1998, March 31, 1999, and March 31, 2000, the 
Secretary of State shall transmit to the Speaker of the House 
of Representatives and the chairman of the Committee on Foreign 
Relations of the Senate a report on conditions in Hong Kong of 
interest to the United States.

                  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

    Sec. 572 continues for an additional year the reports on 
Hong Kong carried as section 576 in the 1996 act.

                      Trade and Development Agency

      

                Child Survival and Disease Programs Fund

      

                         Development Assistance

      

                   International Disaster Assistance

      

                           Debt Restructuring

      

         Micro and Small Enterprise Development Program Account

      

                    Housing Guaranty Program Account

      

                         AID Operating Expenses

      

          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

      

    Nonproliferation, Anti-Terrorism, Demining and Related Programs

      

             International Military Education and Training

      

                   Foreign Military Financing Program

      

                        Peacekeeping Operations

      

                        Global Environment Fund

      

                 International Development Association

      

                International Organizations and Programs
                            Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall no. 1

    Date: May 29, 1996.
    Measure: FY 1997 Foreign Operating Appropriations Bill.
    Motion by: Mr. Wilson (Texas).
    Description of Motion: Presidential certification regarding 
International Family Planning.
    Results: Rejected 20 to 24.
        Members Voting Yea            Members Voting Nay
Mr. Chapman                         Mr. Bonilla
Mr. Coleman                         Mr. Bunn
Mr. Durbin                          Mr. Callahan
Mr. Fazio                           Mr. Forbes
Mr. Frelinghuysen                   Mr. Istook
Mr. Hoyer                           Mr. Kingston
Ms. Kaptur                          Mr. Knollenberg
Mr. Kolbe                           Mr. Lewis
Mrs. Lowey                          Mr. Lightfoot
Mr. Obey                            Mr. Livingston
Ms. Pelosi                          Mr. McDade
Mr. Porter                          Mr. Miller
Mr. Sabo                            Mr. Myers
Mr. Serrano                         Mr. Nethercutt
Mr. Skaggs                          Mr. Neumann
Mr. Stokes                          Mr. Packard
Mr. Torres                          Mr. Parker
Mr. Visclosky                       Mr. Riggs
Mr. Wilson                          Mr. Rogers
Mr. Yates                           Mr. Skeen
                                    Mrs. Vucanovich
                                    Mr. Walsh
                                    Mr. Wicker
                                    Mr. Wolf




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