[House Report 105-94]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-94
_______________________________________________________________________


 
                       FOREIGN POLICY REFORM ACT
                                _______
                                

  May 9, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Gilman, from the Committee on International Relations, submitted 
                             the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 1486]

  The Committee on International Relations, to whom was 
referred the bill (H.R. 1486) to consolidate international 
affairs agencies, to reform foreign assistance programs, to 
authorize appropriations for foreign assistance programs and 
for the Department of State and related agencies for fiscal 
years 1998 and 1999, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Foreign Policy Reform Act''.

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

  (a) Divisions.--This Act is organized into three divisions as 
follows:
          (1) Division A--International Affairs Agency Consolidation, 
        Foreign Assistance Reform, and Foreign Assistance 
        Authorizations.
          (2) Division B--Foreign Relations Authorizations.
          (3) Division C--Funding Levels.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.

    DIVISION A--INTERNATIONAL AFFAIRS AGENCY CONSOLIDATION, FOREIGN 
        ASSISTANCE REFORM, AND FOREIGN ASSISTANCE AUTHORIZATIONS

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Short title.
Sec. 102. Declaration of policy.

   TITLE II--CONSOLIDATION OF CERTAIN INTERNATIONAL AFFAIRS AGENCIES

                     Chapter 1--General Provisions

Sec. 201. Short title
Sec. 202. Definitions.

 Chapter 2--United States International Development Cooperation Agency

    SUBCHAPTER A--ABOLITION OF UNITED STATES INTERNATIONAL DEVELOPMENT 
COOPERATION AGENCY AND TRANSFER OF FUNCTIONS TO UNITED STATES AGENCY FOR 
                        INTERNATIONAL DEVELOPMENT

Sec. 211. Abolition of United States International Development 
Cooperation Agency.
Sec. 212. Transfer of functions to United States Agency for 
International Development.
Sec. 213. Transition provisions.

   SUBCHAPTER B--CONTINUATION OF UNITED STATES AGENCY FOR INTERNATIONAL 
DEVELOPMENT AND PLACEMENT OF ADMINISTRATOR OF AGENCY UNDER THE DIRECTION 
                        OF THE SECRETARY OF STATE

Sec. 221. Continuation of United States Agency for International 
Development and placement of Administrator of Agency under the 
direction of the Secretary of State.

                    SUBCHAPTER C--CONFORMING AMENDMENTS

Sec. 231. Conforming amendments.
Sec. 232. Other references.
Sec. 233. Effective date.

                  TITLE III--FOREIGN ASSISTANCE REFORM

Sec. 301. Graduation from development assistance.
Sec. 302. Limitation on government-to-government assistance.
Sec. 303. Micro- and small enterprise development credits.
Sec. 304. Microenterprise development grant assistance.
Sec. 305. Private sector enterprise funds.
Sec. 306. Development credit authority.
Sec. 307. Foreign government parking fines.
Sec. 308. Withholding United States assistance to countries that aid 
the Government of Cuba.

               TITLE IV--DEFENSE AND SECURITY ASSISTANCE

                Chapter 1--Narcotics Control Assistance

Sec. 401. Definition.
Sec. 402. Authorization of appropriations.
Sec. 403. Authority to withhold bilateral assistance and oppose 
multilateral development assistance for major illicit drug producing 
countries, drug-transit countries, and money laundering countries.

   Chapter 2--Nonproliferation, antiterrorism, demining, and related 
                                programs

Sec. 411. Nonproliferation, antiterrorism, demining, and related 
programs.

             Chapter 3--Foreign Military Financing Program

Sec. 421. Authorization of appropriations.
Sec. 422. Assistance for Israel.
Sec. 423. Assistance for Egypt.
Sec. 424. Authorization of assistance to facilitate transition to NATO 
membership under NATO Participation Act of 1994.
Sec. 425. Loans for Greece and Turkey.
Sec. 426. Limitations on loans.
Sec. 427. Administrative expenses.

        Chapter 4--International Military Education and Training

Sec. 431. Authorization of appropriations.
Sec. 432. IMET eligibility for Panama and Haiti.

   Chapter 5--Transfer Of Naval Vessels to Certain Foreign Countries

Sec. 441. Authority to transfer naval vessels.
Sec. 442. Costs of transfers.
Sec. 443. Expiration of authority.
Sec. 444. Repair and refurbishment of vessels in United States 
shipyards.

      Chapter 6--Indonesia Military Assistance Accountability Act

Sec. 451. Short title.
Sec. 452. Findings.
Sec. 453. Limitation on military assistance to the Government of 
Indonesia.
Sec. 454. United States military assistance and arms transfers defined.

                      Chapter 7--Other Provisions

Sec. 461. Excess defense articles for certain European countries.
Sec. 462. Transfer of certain obsolete or surplus defense articles in 
the war reserve allies stockpile to the Republic of Korea.
Sec. 463. Additional requirements relating to stockpiling of defense 
articles for foreign countries.
Sec. 464. Delivery of drawdown by commercial transportation services.
Sec. 465. Cash Flow Financing Notification.
Sec. 466. Multinational arms sales code of conduct.

                      TITLE V--ECONOMIC ASSISTANCE

                 Chapter 1--Economic Support Assistance

Sec. 501. Economic support fund.
Sec. 502. Assistance for Israel.
Sec. 503. Assistance for Egypt.
Sec. 504. International Fund for Ireland.
Sec. 505. Assistance for training of civilian personnel of the Ministry 
of Defense of the Government of Nicaragua.
Sec. 506. Availability of amounts for Cuban Liberty and Democratic 
Solidarity (LIBERTAD) Act of 1996 and the Cuban Democracy Act of 1992.

                   Chapter 2--Development Assistance

             SUBCHAPTER A--DEVELOPMENT ASSISTANCE AUTHORITIES

Sec. 511. Authorization of appropriations.
Sec. 512. Child survival activities.
Sec. 513. Requirement on assistance for Russian Federation.
Sec. 514. Humanitarian assistance for Armenia and Azerbaijan.
Sec. 515. Agricultural development and research assistance.
Sec. 516. Activities and programs in Latin America and the Caribbean 
region and the Asia and the Pacific region.
Sec. 517. Support for agricultural development assistance.

                     SUBCHAPTER B--OPERATING EXPENSES

Sec. 521. Operating expenses generally.
Sec. 522. Operating expenses of the Office of the Inspector General.

           Chapter 3--Urban And Environmental Credit Program

Sec. 531. Urban and environmental credit program.

                       Chapter 4--The Peace Corps

Sec. 541. Authorization of appropriations.
Sec. 542. Activities of the Peace Corps in the former Soviet Union and 
Mongolia.
Sec. 543. Amendments to the Peace Corps Act.

              Chapter 5--International Disaster Assistance

Sec. 551. Authority to provide reconstruction assistance.
Sec. 552. Authorizations of appropriations.

                         Chapter 6--Debt Relief

Sec. 561. Debt restructuring for foreign assistance.
Sec. 562. Debt buybacks or sales for debt swaps.

                 Chapter 7--Other Assistance Provisions

Sec. 571. Exemption from restrictions on assistance through 
nongovernmental organizations.
Sec. 572. Funding requirements relating to United States private and 
voluntary organizations.
Sec. 573. Documentation requested of private and voluntary 
organizations.
Sec. 574. Encouragement of free enterprise and private participation.
Sec. 575. Sense of the Congress relating to United States cooperatives 
and credit unions.
Sec. 576. Food assistance to the Democratic People's Republic of Korea.
Sec. 577. Withholding of assistance to countries that provide nuclear 
fuel to Cuba.

                 TITLE VI--TRADE AND DEVELOPMENT AGENCY

Sec. 601. Authorization of appropriations.

          TITLE VII--SPECIAL AUTHORITIES AND OTHER PROVISIONS

                     Chapter 1--Special Authorities

Sec. 701. Enhanced transfer authority.
Sec. 702. Authority to meet unanticipated contingencies.
Sec. 703. Special waiver authority.
Sec. 704. Termination of assistance.
Sec. 705. Local assistance to human rights groups in Cuba.

                           Chapter 2--Repeals

Sec. 711. Repeal of obsolete provisions.

            DIVISION B--FOREIGN RELATIONS AUTHORIZATIONS ACT

                      TITLE X--GENERAL PROVISIONS

Sec. 1001. Short title.
Sec. 1002. Statement of history of legislation.
Sec. 1003. Definitions.

 TITLE XI--AUTHORIZATION OF APPROPRIATIONS FOR DEPARTMENT OF STATE AND 
         CERTAIN INTERNATIONAL AFFAIRS FUNCTIONS AND ACTIVITIES

Sec. 1101. Administration of Foreign Affairs.
Sec. 1102. International organizations, programs, and conferences.
Sec. 1103. International commissions.
Sec. 1104. Migration and refugee assistance.
Sec. 1105. Asia Foundation.
Sec. 1106. United States informational, educational, and cultural 
programs.
Sec. 1107. United States arms control and disarmament.

       TITLE XII--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES

                 Chapter 1--Authorities And Activities

Sec. 1201. Revision of Department of State rewards program.
Sec. 1202. Foreign Service National Separation Liability Trust Fund.
Sec. 1203. Capital Investment Fund.
Sec. 1204. International Center reserve funds.
Sec. 1205. Proceeds of sale of foreign properties.
Sec. 1206. Reduction of reporting.
Sec. 1207. Contracting for local guards services overseas.
Sec. 1208. Preadjudication of claims.
Sec. 1209. Expenses relating to certain international claims and 
proceedings.
Sec. 1210. Establishment of fee account and providing for passport 
information services.
Sec. 1211. Establishment of machine readable fee account.
Sec. 1212. Retention of additional defense trade controls registration 
fees.
Sec. 1213. Training.
Sec. 1214. Recovery of costs of health care services.
Sec. 1215. Fee for use of diplomatic reception rooms.
Sec. 1216. Fees for commercial services.
Sec. 1217. Budget presentation documents.
Sec. 1218. Extension of certain adjudication provisions.
Sec. 1219. Grants to overseas educational facilities.
Sec. 1220. Grants to remedy international child abductions.

       Chapter 2--Consular Authorities of the Department of State

Sec. 1241. Use of certain passport processing fees for enhanced 
passport services.
Sec. 1242. Consular officers.
Sec. 1243. Repeal of outdated consular receipt requirements.
Sec. 1244. Elimination of duplicate publication requirements.

                   Chapter 3--Refugees And Migration

Sec. 1261. Report to Congress concerning Cuban emigration policies.
Sec. 1262. Reprogramming of migration and refugee assistance funds.

  TITLE XIII--ORGANIZATION OF THE DEPARTMENT OF STATE; DEPARTMENT OF 
                  STATE PERSONNEL; THE FOREIGN SERVICE

           Chapter 1--Organization Of the Department of State

Sec. 1301. Coordinator for counterterrorism.
Sec. 1302. Elimination of statutory establishment of certain positions 
of the Department of State.
Sec. 1303. Establishment of Assistant Secretary of State for Human 
Resources.
Sec. 1304. Establishment of Assistant Secretary of State for Diplomatic 
Security.
Sec. 1305. Special envoy for Tibet.
Sec. 1306. Responsibilities for bureau charged with refugee assistance.

  Chapter 2--Personnel of the Department of State; the Foreign Service

Sec. 1321. Authorized strength of the Foreign Service.
Sec. 1322. Nonovertime differential pay.
Sec. 1323. Authority of Secretary to separate convicted felons from 
service.
Sec. 1324. Career counseling.
Sec. 1325. Report concerning minorities and the Foreign Service.
Sec. 1326. Retirement benefits for involuntary separation.
Sec. 1327. Availability pay for certain criminal investigators within 
the diplomatic security service.
Sec. 1328. Labor management relations.
Sec. 1329. Office of the Inspector General.

 TITLE XIV--UNITED STATES PUBLIC DIPLOMACY: AUTHORITIES AND ACTIVITIES 
  FOR UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL PROGRAMS

Sec. 1401. Extension of au pair programs.
Sec. 1402. Retention of interest.
Sec. 1403. Center for Cultural and Technical Interchange Between North 
and South.
Sec. 1404. Use of selected program fees.
Sec. 1405. Muskie fellowship program.
Sec. 1406. Working group on United States Government sponsored 
international exchanges and training.
Sec. 1407. Educational and cultural exchanges and scholarships for 
Tibetans and Burmese.
Sec. 1408. United States-Japan commission.
Sec. 1409. Surrogate broadcasting studies.
Sec. 1410. Authority to administer summer travel/work programs.
Sec. 1411. Permanent administrative authorities regarding 
appropriations.
Sec. 1412. Authorities of the broadcasting board of governors.

   TITLE XV--INTERNATIONAL ORGANIZATIONS; UNITED NATIONS AND RELATED 
                                AGENCIES

                     Chapter 1--General Provisions

Sec. 1501. Service in international organizations.
Sec. 1502. Organization of American States.

             Chapter 2--United Nations and Related Agencies

Sec. 1521. Reform in budget decisionmaking procedures of the United 
Nations and its specialized agencies.
Sec. 1522. Reports on efforts to promote full equality at the United 
Nations for Israel.
Sec. 1523. United Nations Population Fund.
Sec. 1524. Continued extension of privileges, exemptions, and 
immunities of the International Organizations Immunities Act to UNIDO.

             TITLE XVI--ARMS CONTROL AND DISARMAMENT AGENCY

Sec. 1601. Comprehensive compilation of arms control and disarmament 
studies.
Sec. 1602. Use of funds.

                 TITLE XVII--FOREIGN POLICY PROVISIONS

Sec. 1701. United States policy regarding the involuntary return of 
refugees.
Sec. 1702. United States policy with respect to the involuntary return 
of persons in danger of subjection to torture.
Sec. 1703. Reports on claims by United States firms against the 
Government of Saudi Arabia.
Sec. 1704. Human rights reports.
Sec. 1705. Reports on determinations under title IV of the Libertad 
Act.
Sec. 1706. Reports and policy concerning diplomatic immunity.
Sec. 1707. Congressional statement with respect to efficiency in the 
conduct of foreign policy.
Sec. 1708. Congressional statement concerning Radio Free Europe/Radio 
Liberty.
Sec. 1709. Programs or projects of the International Atomic Energy 
Agency in Cuba.
Sec. 1710. United States policy with respect to Jerusalem as the 
capital of Israel.
Sec. 1711. Report on compliance with the Hague Convention on 
International Child Abduction.
Sec. 1712. Sense of Congress relating to recognition of the ecumenical 
patriarchate by the government of Turkey.
Sec. 1713. Return of Hong Kong to People's Republic of China.
Sec. 1714. Development of democracy in the Republic of Serbia.
Sec. 1715. Relations with Vietnam.
Sec. 1716. Statement concerning return of or compensation for wrongly 
confiscated foreign properties.

                       DIVISION C--FUNDING LEVELS

Sec. 2001. Authorization of appropriations for certain programs.

    DIVISION A--INTERNATIONAL AFFAIRS AGENCY CONSOLIDATION, FOREIGN 
        ASSISTANCE REFORM, AND FOREIGN ASSISTANCE AUTHORIZATIONS

                      TITLE I--GENERAL PROVISIONS

SEC. 101. SHORT TITLE.

  This division may be cited as the ``Foreign Assistance Reform Act of 
1997''.

SEC. 102. DECLARATION OF POLICY.

  The Congress declares the following:
          (1) United States leadership overseas must be maintained to 
        support America's vital national security, economic, and 
        humanitarian overseas interests.
          (2) As part of this leadership, United States foreign 
        assistance programs are essential to support America's overseas 
        interests.
          (3) Following the end of the Cold War, foreign assistance 
        programs must be reformed to take advantage of the 
        opportunities for the United States in the 21st century.

   TITLE II--CONSOLIDATION OF CERTAIN INTERNATIONAL AFFAIRS AGENCIES

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 201. SHORT TITLE

  This title may be cited as the ``International Affairs Agency 
Consolidation Act of 1997''.

SEC. 202. DEFINITIONS.

  The following terms have the following meanings for the purposes of 
this title:
          (1) The term ``USAID'' means the United States Agency for 
        International Development.
          (2) The term ``Federal agency'' has the meaning given to the 
        term ``agency'' by section 551(1) of title 5, United States 
        Code.
          (3) The term ``function'' means any duty, obligation, power, 
        authority, responsibility, right, privilege, activity, or 
        program.

 CHAPTER 2--UNITED STATES INTERNATIONAL DEVELOPMENT COOPERATION AGENCY

  Subchapter A--Abolition of United States International Development 
 Cooperation Agency and Transfer of Functions to United States Agency 
                     for International Development

SEC. 211. ABOLITION OF UNITED STATES INTERNATIONAL DEVELOPMENT 
                    COOPERATION AGENCY.

  (a) In General.--The United States International Development 
Cooperation Agency is hereby abolished.
  (b) Conforming Amendments.--The following shall cease to be 
effective:
          (1) Reorganization Plan Numbered 2 of 1979 (5 U.S.C. App.).
          (2) Sections 1-101 through 1-103, sections 1-401 through 1-
        403, and such other provisions that relate to the United States 
        International Development Cooperation Agency or the Director of 
        such Agency, of Executive Order 12163 (22 U.S.C. 2381 note; 
        relating to administration of foreign assistance and related 
        functions).
          (3) The International Development Cooperation Agency 
        Delegation of Authority Numbered 1 (44 Fed. Reg. 57521), except 
        for section 1-6 of such Delegation of Authority.
          (4) Section 3 of Executive Order 12884 (58 Fed. Reg. 64099; 
        relating to the delegation of functions under the Freedom for 
        Russia and Emerging Eurasian Democracies and Open Markets 
        Support Act of 1992, the Foreign Assistance Act of 1961, the 
        Foreign Operations, Export Financing and Related Programs 
        Appropriations Act, 1993, and section 301 of title 3, United 
        States Code).
  (c) Effective Date.--This section shall take effect 6 months after 
the date of the enactment of this Act.

SEC. 212. TRANSFER OF FUNCTIONS TO UNITED STATES AGENCY FOR 
                    INTERNATIONAL DEVELOPMENT.

  (a) In General.--There are transferred to the Administrator of the 
United States Agency for International Development all functions of the 
Director of United States International Development Cooperation Agency 
and all functions of such Agency and any officer or component of such 
agency under any statute, reorganization plan, Executive order, or 
other provision of law before the effective date of this title.
  (b) Effective Date.--This section shall take effect 6 months after 
the date of the enactment of this Act.

SEC. 213. TRANSITION PROVISIONS.

  (a) Transfer of Personnel, Property, Records, and Unexpended 
Balances.--
          (1) Personnel, property, and records.--So much of the 
        personnel, property, and records of the United States 
        International Development Cooperation Agency as the Director of 
        the Office of Management and Budget shall determine shall be 
        transferred to the United States Agency for International 
        Development at such time or times as the Director of the Office 
        of Management and Budget shall provide.
          (2) Unexpended balances.--To the extent provided in advance 
        in appropriations Acts, so much of the unexpended balances of 
        appropriations, allocations, and other funds employed, used, 
        held, available, or to be made available to the United States 
        International Development Cooperation Agency as the Director of 
        the Office of Management and Budget shall determine shall be 
        transferred to the United States Agency for International 
        Development at such time or times as the Director of Office of 
        Management and Budget shall provide, except that no such 
        unexpended balances transferred shall be used for purposes 
        other than those for which the appropriation was originally 
        made.
  (b) Terminating Agency Affairs.--The Director of the Office of 
Management and Budget shall provide for terminating the affairs of the 
United States International Development Cooperation Agency and for such 
further measures and dispositions as such Director deems necessary to 
accomplish the purposes of this subchapter.

 Subchapter B--Continuation of United States Agency for International 
    Development and Placement of Administrator of Agency under the 
                  Direction of the Secretary of State

SEC. 221. CONTINUATION OF UNITED STATES AGENCY FOR INTERNATIONAL 
                    DEVELOPMENT AND PLACEMENT OF ADMINISTRATOR OF 
                    AGENCY UNDER THE DIRECTION OF THE SECRETARY OF 
                    STATE.

  (a) Continuation of USAID as Federal Agency.--The United States 
Agency for International Development, established in the Department of 
State pursuant to the State Department Delegation of Authority Numbered 
104 (26 Fed. Reg. 10608) and subsequently transferred to the United 
States International Development Cooperation Agency pursuant to the 
International Development Cooperation Agency Delegation of Authority 
Numbered 1 (44 Fed. Reg. 57521), shall be continued in existence as a 
Federal agency of the United States.
  (b) Placement of Administrator of USAID Under Direction of Secretary 
of State.--
          (1) In general.--The Administrator of the United States 
        Agency for International Development, appointed pursuant to 
        section 624(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2384(a))--
                  (A) shall continue to head such Agency; and
                  (B) shall be under the direction of the Secretary of 
                State.
          (2) Other requirements.--Except to the extent inconsistent 
        with other provisions of this Act, the Administrator--
                  (A) shall continue to exercise all functions that the 
                Administrator exercised before the effective date of 
                this Act; and
                  (B) shall exercise all functions transferred to the 
                Administrator pursuant to section 212.
  (c) Other Officers of AID.--The other officers of the United States 
Agency for International Development, appointed pursuant to section 
624(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2384(a)), shall 
continue to exercise such functions as the Administrator deems 
appropriate.

                  Subchapter C--Conforming Amendments

SEC. 231. CONFORMING AMENDMENTS.

  (a) Title 5, United States Code.--Section 7103(a)(2)(iv) of title 5, 
United States Code, is amended by striking ``the United States 
International Development Cooperation Agency'' and inserting ``the 
United States Agency for International Development''.
  (b) Inspector General Act of 1978.--Section 8A of the Inspector 
General Act of 1978 (5 U.S.C. App. 8A) is amended--
          (1) in subsection (a)--
                  (A) by striking paragraph (2);
                  (B) by striking ``Agency for International 
                Development--'' and all that follows through ``shall 
                supervise'' and inserting ``Agency for International 
                Development shall supervise''; and
                  (C) by striking ``; and'' at the end and inserting a 
                period;
          (2) by striking subsection (c); and
          (3) by striking subsection (f).
  (c) International Security and Development Cooperation Act of 1980.--
Section 316 of the International Security and Development Cooperation 
Act of 1980 (22 U.S.C. 2151 note) is amended--
          (1) in subsection (a)--
                  (A) in the first sentence, by striking ``Director of 
                the United States International Development Cooperation 
                Agency'' and inserting ``Administrator of the United 
                States Agency for International Development''; and
                  (B) in the second sentence, by striking ``Director'' 
                and inserting ``Administrator''; and
          (2) in subsection (b), by striking ``Director'' and inserting 
        ``Administrator''.
  (d) State Department Basic Authorities Act of 1956.--(1) Section 
25(f) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 
2697(f)) is amended by striking ``Director of the United States 
International Development Cooperation Agency'' and inserting 
``Administrator of the United States Agency for International 
Development''.
  (2) Section 26(b) of such Act (22 U.S.C. 2698(b)) is amended by 
striking ``Director of the United States International Development 
Cooperation Agency'' and inserting ``Administrator of the United States 
Agency for International Development''.
  (3) Section 32 of such Act (22 U.S.C. 2704) is amended in the second 
sentence by striking ``Director of the United States International 
Development Cooperation Agency'' and inserting ``Administrator of the 
United States Agency for International Development''.
  (e) Foreign Service Act of 1980.--(1) Section 202(a)(1) of the 
Foreign Service Act of 1980 (22 U.S.C. 3922(a)(1)) is amended by 
striking ``Director of the United States International Development 
Cooperation Agency'' and inserting ``Administrator of the United States 
Agency for International Development''.
  (2) Section 210 of such Act (22 U.S.C. 3930) is amended in the second 
sentence by striking ``United States International Development 
Cooperation Agency'' and inserting ``United States Agency for 
International Development''.
  (3) Section 1003(a) of such Act (22 U.S.C. 4103(a)) is amended by 
striking ``United States International Development Cooperation Agency'' 
and inserting ``United States Agency for International Development''.
  (4) Section 1101(c) of such Act (22 U.S.C. 4131(c)) is amended by 
striking ``United States International Development Cooperation Agency'' 
and inserting ``United States Agency for International Development''.
  (f) Internal Revenue Code of 1986.--(1) Section 170(m)(7) of the 
Internal Revenue Code of 1986, is amended by striking ``Director of the 
United States International Development Cooperation Agency'' and 
inserting ``Administrator of the United States Agency for International 
Development''.
  (2) Section 2055(g)(6) of the Internal Revenue Code of 1986, is 
amended by striking ``Director of the United States International 
Development Cooperation Agency'' and inserting ``Administrator of the 
United States Agency for International Development''.
  (g) Title 49, United States Code.--Section 40118(d) of title 49, 
United States Code, is amended by striking ``Director of the United 
States International Development Cooperation Agency'' and inserting 
``Administrator of the United States Agency for International 
Development''.
  (h) Export Administration Act of 1979.--Section 6(g) of the Export 
Administration Act of 1979 (50 U.S.C. App. 2405(g)) is amended--
          (1) in the third sentence, by striking ``Director of the 
        United States International Development Cooperation Agency'' 
        and inserting ``Administrator of the United States Agency for 
        International Development'';
          (2) in the fourth sentence, by striking ``Director'' and 
        inserting ``Administrator''; and
          (3) in the sixth sentence, by striking ``Director of the 
        United States International Development Cooperation Agency'' 
        and inserting ``Administrator of the United States Agency for 
        International Development''.

SEC. 232. OTHER REFERENCES.

  Any reference in any statute, reorganization plan, Executive order, 
regulation, agreement, determination, or other official document or 
proceeding to--
          (1) the Director of the United States International 
        Development Cooperation Agency or any other officer or employee 
        of the United States International Development Cooperation 
        Agency shall be deemed to refer to the Administrator of the 
        United States Agency for International Development; and
          (2) the United States International Development Cooperation 
        Agency shall be deemed to refer to the United States Agency for 
        International Development.

SEC. 233. EFFECTIVE DATE.

  This subchapter shall take effect 6 months after the date of the 
enactment of this Act.

                  TITLE III--FOREIGN ASSISTANCE REFORM

SEC. 301. GRADUATION FROM DEVELOPMENT ASSISTANCE.

  Section 634 of the Foreign Assistance Act of 1961 (22 U.S.C. 2394) is 
amended to read as follows:

``SEC. 634. CONGRESSIONAL PRESENTATION DOCUMENTS.

  ``(a) Requirement for Submission.--As part of the annual requests for 
enactment of authorizations and appropriations for foreign assistance 
programs for each fiscal year, the President shall prepare and transmit 
to the Congress annual congressional presentation documents for the 
programs authorized under this Act and the Arms Export Control Act (22 
U.S.C. 2751 et seq.).
  ``(b) Materials To Be Included.--The documents submitted pursuant to 
subsection (a) shall include--
          ``(1) the rationale and direct United States national 
        interest for the allocation of assistance or contributions to 
        each country, regional, or centrally-funded program, or 
        organization, as the case may be;
          ``(2) a description of how each such program or contribution 
        supports the objectives of this Act or the Arms Export Control 
        Act, as the case may be;
          ``(3) a description of planned country, regional, or 
        centrally-funded programs or contributions to international 
        organizations and programs for the coming fiscal year; and
          ``(4) for each country for which assistance is requested 
        under this Act or the Arms Export Control Act--
                  ``(A) the total number of years since 1946 that the 
                United States has provided assistance;
                  ``(B) the total amount of bilateral assistance 
                provided by the United States since 1946, including the 
                principal amount of all loans, credits, and guarantees; 
                and
                  ``(C) the total amount of assistance provided to such 
                country from all multilateral organizations to which 
                the United States is a member, including all 
                international financial institutions, the United 
                Nations, and other international organizations.
  ``(c) Graduation From Development Assistance.--
          ``(1) Determination.--As part of the congressional 
        presentation documents transmitted to the Congress under this 
        section, the President shall make a separate determination for 
        each country identified in such documents for which bilateral 
        development assistance is requested, estimating the year in 
        which each such country will no longer be receiving bilateral 
        development assistance.
          ``(2) Development assistance defined.--For purposes of this 
        section, the term `development assistance' means assistance 
        under--
                  ``(A) chapter 1 of part I of this Act;
                  ``(B) chapter 10 of part I of this Act;
                  ``(C) chapter 11 of part I of this Act; and
                  ``(D) the Support for East European Democracy (SEED) 
                Act of 1989 (22 U.S.C. 5401 et seq.).''.

SEC. 302. LIMITATION ON GOVERNMENT-TO-GOVERNMENT ASSISTANCE.

  (a) In General.--For each of the fiscal years 1998 and 1999, the 
President should allocate an aggregate level to private and voluntary 
organizations and cooperatives under the Foreign Assistance Act of 1961 
(22 U.S.C. 2151 et seq.) which reflects an increasing level allocated 
to such organizations and cooperatives under such Act since fiscal year 
1995.
  (b) Definition.--For purposes of this section, the term ``private and 
voluntary organization'' means a private non-governmental organization 
which--
          (1) is organized under the laws of a country;
          (2) receives funds from private sources;
          (3) operates on a not-for-profit basis with appropriate tax-
        exempt status if the laws of the country grant such status to 
        not-for-profit organizations;
          (4) is voluntary in that it receives voluntary contributions 
        of money, time, or in-kind support from the public; and
          (5) is engaged or intends to be engaged in voluntary, 
        charitable, development, or humanitarian assistance activities.
  (c) Report.--
          (1) In general.--Not later than September 30, 1997, the 
        United States Agency for International Development shall submit 
        a report to the Congress on the amount of its funding being 
        channeled through and private and voluntary organizations.
          (2) Additional requirements.--(A) The report should use 
        fiscal year 1995 as a baseline and include an implementation 
        plan for steadily increasing the percentage of assistance 
        channeled through such organizations, consistent with the 
        funding commitment announced by Vice President Gore in March 
        1995.
          (B) The report should also indicate the proportion of funds 
        made available under the following provisions and channeled 
        through such organizations:
                  (i) Chapter 11 of part I of the Foreign Assistance 
                Act of 1961 (22 U.S.C. 2295 et seq.).
                  (ii) The Support for East European Democracy (SEED) 
                Act of 1989 (22 U.S.C. 5401 et seq.).
                  (iii) Chapter 4 of part II of the Foreign Assistance 
                Act of 1961 (22 U.S.C. 2346).

SEC. 303. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.

  Section 108 of the Foreign Assistance Act of 1961 (22 U.S.C. 2151f) 
is amended to read as follows:

``SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.

  ``(a) Findings and Policy.--The Congress finds and declares that--
          ``(1) the development of micro- and small enterprise, 
        including cooperatives, is a vital factor in the stable growth 
        of developing countries and in the development and stability of 
        a free, open, and equitable international economic system;
          ``(2) it is, therefore, in the best interests of the United 
        States to assist the development of the private sector in 
        developing countries and to engage the United States private 
        sector in that process;
          ``(3) the support of private enterprise can be served by 
        programs providing credit, training, and technical assistance 
        for the benefit of micro- and small enterprises; and
          ``(4) programs that provide credit, training, and technical 
        assistance to private institutions can serve as a valuable 
        complement to grant assistance provided for the purpose of 
        benefiting micro- and small private enterprise.
  ``(b) Program.--To carry out the policy set forth in subsection (a), 
the President is authorized to provide assistance to increase the 
availability of credit to micro- and small enterprises lacking full 
access to credit, including through--
          ``(1) loans and guarantees to credit institutions for the 
        purpose of expanding the availability of credit to micro- and 
        small enterprises;
          ``(2) training programs for lenders in order to enable them 
        to better meet the credit needs of micro- and small 
        entrepreneurs; and
          ``(3) training programs for micro- and small entrepreneurs in 
        order to enable them to make better use of credit and to better 
        manage their enterprises.
  ``(c) Authorization of Appropriations.--
          ``(1) In general.--There is authorized to be appropriated the 
        following amounts for the following purposes (in addition to 
        amounts otherwise available for such purposes):
                  ``(A)(i) $1,500,000 for each of the fiscal years 1998 
                and 1999 to carry out subsection (b)(1).
                  ``(ii) Funds authorized to be appropriated under this 
                subparagraph shall be made available for the subsidy 
                cost, as defined in section 502(5) of the Federal 
                Credit Reform Act of 1990, for activities under such 
                subsection.
                  ``(B) $500,000 for each of the fiscal years 1998 and 
                1999 to carry out paragraphs (2) and (3) of subsection 
                (b).
          ``(2) Availability of amounts.--Amounts authorized to be 
        appropriated under paragraph (1) are authorized to remain 
        available until expended.''.

SEC. 304. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.

  Chapter 1 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151 et seq.) is amended by inserting after section 108, as amended by 
this Act, the following new section:

``SEC. 108A. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.

  ``(a) Authorization.--(1) In carrying out this part, the 
Administrator of the United States Agency for International Development 
is authorized to provide grant assistance for programs of credit and 
other assistance for micro enterprises in developing countries.
  ``(2) Assistance authorized under paragraph (1) shall be provided 
through organizations that have a capacity to develop and implement 
microenterprise programs, including particularly--
                  ``(A) United States and indigenous private and 
                voluntary organizations;
                  ``(B) United States and indigenous credit unions and 
                cooperative organizations; or
                  ``(C) other indigenous governmental and 
                nongovernmental organizations.
  ``(3) Approximately one-half of the credit assistance authorized 
under paragraph (1) shall be used for poverty lending programs, 
including the poverty lending portion of mixed programs. Such 
programs--
          ``(A) shall meet the needs of the very poor members of 
        society, particularly poor women; and
          ``(B) should provide loans of $300 or less in 1995 United 
        States dollars to such poor members of society.
  ``(4) The Administrator should continue support for mechanisms that--
          ``(A) provide technical support for field missions;
          ``(B) strengthen the institutional development of the 
        intermediary organizations described in paragraph (2); and
          ``(C) share information relating to the provision of 
        assistance authorized under paragraph (1) between such field 
        missions and intermediary organizations.
  ``(b) Monitoring System.--In order to maximize the sustainable 
development impact of the assistance authorized under subsection 
(a)(1), the Administrator shall, in accordance with section 1115 of 
title 31, United States Code (relating to performance plans), establish 
a monitoring system that--
          ``(1) establishes performance goals for such assistance and 
        expresses such goals in an objective and quantifiable form, to 
        the extent feasible;
          ``(2) establishes performance indicators to be used in 
        measuring or assessing the achievement of the goals and 
        objectives of such assistance; and
          ``(3) provides a basis for recommendations for adjustments to 
        such assistance to enhance the sustainable development impact 
        of such assistance, particularly the impact of such assistance 
        on the very poor, particularly poor women.''.

SEC. 305. PRIVATE SECTOR ENTERPRISE FUNDS.

  The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is 
amended by inserting after section 601 the following new section:

``SEC. 601A. PRIVATE SECTOR ENTERPRISE FUNDS.

  ``(a) Authority.--(1) The President may provide funds and support to 
Enterprise Funds designated in accordance with subsection (b) that are 
or have been established for the purposes of promoting--
          ``(A) development of the private sectors of eligible 
        countries, including small businesses, the agricultural sector, 
        and joint ventures with United States and host country 
        participants; and
          ``(B) policies and practices conducive to private sector 
        development in eligible countries;
on the same basis as funds and support may be provided with respect to 
Enterprise Funds for Poland and Hungary under the Support for East 
European Democracy (SEED) Act of 1989 (22 U.S.C. 5401 et seq.).
  ``(2) Funds may be made available under this section notwithstanding 
any other provision of law, except sections 502B and 490 of this Act.
  ``(b) Countries Eligible for Enterprise Funds.--(1) Except as 
provided in paragraph (2), the President is authorized to designate a 
private, nonprofit organization as eligible to receive funds and 
support pursuant to this section with respect to any country eligible 
to receive assistance under part I of this Act in the same manner and 
with the same limitations as set forth in section 201(d) of the Support 
for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5421(d)).
  ``(2) The authority of paragraph (1) shall not apply to any country 
with respect to which the President is authorized to designate an 
enterprise fund under section 498B(c) of this Act or section 201 of the 
Support for East European Democracy (SEED) Act of 1989 (22 U.S.C. 
5421).
  ``(c) Treatment Equivalent to Enterprise Funds for Poland and 
Hungary.--Except as otherwise specifically provided in this section, 
the provisions contained in section 201 of the Support for East 
European Democracy (SEED) Act of 1989 (22 U.S.C. 5421) (excluding the 
authorizations of appropriations provided in subsection (b) of that 
section) shall apply to any Enterprise Fund that receives Funds and 
support under this section. The officers, members, or employees of an 
Enterprise Fund that receive funds and support under this section shall 
enjoy the same status under law that is applicable to officers, 
members, or employees of the Enterprise Funds for Poland and Hungary 
under section 201 of the Support for East European Democracy (SEED) Act 
of 1989 (22 U.S.C. 5421).
  ``(d) Reporting Requirement.--Notwithstanding any other provision of 
this section, the requirement of section 201(p) of the Support for East 
European Democracy (SEED) Act of 1989 (22 U.S.C. 5421(p)), that an 
Enterprise Fund shall be required to publish an annual report not later 
than January 31 each year, shall not apply with respect to an 
Enterprise Fund that receives funds and support under this section for 
the first twelve months after it is designated as eligible to receive 
such funds and support.
  ``(e) Funding.--(1) Amounts made available for a fiscal year to carry 
out chapter 1 of part I of this Act (relating to development 
assistance) and to carry out chapter 4 of part II of this Act (relating 
to the economic support fund) shall be available for such fiscal year 
to carry out this section, in addition to amounts otherwise available 
for such purposes.
  ``(2) In addition to amounts available under paragraph (1) for a 
fiscal year, amounts made available for such fiscal year to carry out 
chapter 10 of part I of this Act (relating to the Development Fund for 
Africa) shall be available for such fiscal year to carry out this 
section with respect to countries in Africa.''.

SEC. 306. DEVELOPMENT CREDIT AUTHORITY.

  The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is 
amended by inserting after section 106 the following:

``SEC. 107A. DEVELOPMENT CREDIT AUTHORITY.

  ``(a) General Authority.--The President is authorized to use credit 
authority (loans, loan guarantees, and other investments involving the 
extension of credit) to achieve any of the development purposes of this 
part in cases where--
          ``(1) the borrowers or activities are deemed sufficiently 
        creditworthy and do not otherwise have access to such credit; 
        and
          ``(2) the use of credit authority would be appropriate to the 
        achievement of such development purposes.
  ``(b) Priority Sector Policies and Activities.--
          ``(1) In general.--To the maximum extent practicable, 
        preference shall be given to the use of credit authority to 
        promote--
                  ``(A) micro- and small enterprise development 
                policies of section 108;
                  ``(B) sustainable urban and environmental activities 
                pursuant to the policy directives set forth in this 
                part; and
                  ``(C) other development activities that will support 
                and enhance grant-financed policy and institutional 
                reforms under this part.
          ``(2) Development credit authority.--The credit authority 
        described in paragraph (1) shall be known as the `Development 
        Credit Authority'.
  ``(c) General Authority.--
          ``(1) Authority.--Of the amounts made available to carry out 
        this chapter, chapters 10 and 11 of this part, chapter 4 of 
        part II of this Act, and the Support for East European 
        Democracy (SEED) Act of 1989 for fiscal years 1998 and 1999, 
        not more than $13,000,000 for each such fiscal year may be made 
        available to carry out this section.
          ``(2) Limitations.--(A) Funds made available under paragraph 
        (1) shall be used for activities in the same geographic region 
        for which such funds were originally allocated.
          ``(B) The President shall notify the congressional committees 
        specified in section 634A at least fifteen days in advance of 
        each transfer of funds under paragraph (1) in accordance with 
        procedures applicable to reprogramming notifications under such 
        section.
          ``(3) Subsidy cost.--Amounts made available under paragraph 
        (1) shall be made available for the subsidy cost, as defined in 
        section 502(5) of the Federal Credit Reform Act of 1990, for 
        activities under this section.
          ``(4) Administrative expenses.--
                  ``(A) Amounts made available.--Of the amounts made 
                available under paragraph (1) for a fiscal year, not 
                more than $1,500,000 may be made available for 
                administrative expenses to carry out this section.
                  ``(B) Authorization of appropriations.--In addition 
                to amounts made available under subparagraph (A), there 
                are authorized to be appropriated for administrative 
                expenses to carry out this section and section 221 
                $6,000,000 for each of the fiscal years 1998 and 1999.
                  ``(C) Transfer authority.--Amounts made available 
                under and subparagraph (A) and amounts authorized to be 
                appropriated under subparagraph (B) may be transferred 
                and merged with amounts made available for `Operating 
                Expenses of the Agency for International Development'.
          ``(5) Availability.--Amounts made available under paragraph 
        (1) are authorized to remain available until expended.
  ``(d) General Provisions Applicable to Development Credit 
Authority.--
          ``(1) Policy provisions.--In providing the credit assistance 
        authorized by this section, the President should apply, as 
        appropriate, the policy provisions in this part applicable to 
        development assistance activities.
          ``(2) Default and procurement provisions.--
                  ``(A) Default provision.--The provisions of section 
                620(q) of this Act, or any comparable provisions of 
                law, shall not be construed to prohibit assistance to a 
                country in the event that a private sector recipient of 
                assistance furnished under this section is in default 
                in its payment to the United States for the period 
                specified in such section.
                  ``(B) Procurement provision.--Assistance may be 
                provided under this section without regard to section 
                604(a) of this Act.
          ``(3) Terms and conditions of credit assistance.--(A) 
        Assistance provided under this section shall be offered on such 
        terms and conditions, including fees charged, as the President 
        may determine.
          ``(B) The principal amount of loans made or guaranteed under 
        this section in any fiscal year, with respect to any single 
        country or borrower, may not exceed $100,000,000.
          ``(C) No payment may be made under any guarantee issued under 
        this section for any loss arising out of fraud or 
        misrepresentation for which the party seeking payment is 
        responsible.
          ``(4) Full faith and credit.--All guarantees issued under 
        this section shall constitute obligations, in accordance with 
        the terms of such guarantees, of the United States of America 
        and the full faith and credit of the United States of America 
        is hereby pledged for the full payment and performance of such 
        obligations to the extent of the guarantee.
          ``(5) Co-financing and risk sharing.--
                  ``(A) In general.--(i) Assistance provided under this 
                section shall be in the form of co-financing or risk 
                sharing.
                  ``(ii) Credit assistance may not be provided to a 
                borrower under this section unless the Administrator of 
                the United States Agency for International Development 
                determines that there are reasonable prospects of 
                repayment by such borrower.
                  ``(B) Additional requirement.--The investment or risk 
                of the United States in any one development activity 
                may not exceed 80 percent of the total outstanding 
                investment or risk.
          ``(6) Eligible borrowers.--
                  ``(A) In general.--In order to be eligible to receive 
                credit assistance under this section, a borrower shall 
                be sufficiently credit worthy so that the estimated 
                costs (as defined in section 502 of the Federal Credit 
                Reform Act of 1990) of the proposed credit assistance 
                for the borrower does not exceed 30 percent of the 
                principal amount of credit assistance to be received.
                  ``(B) Additional requirement.--(i) In addition, with 
                respect to the eligibility of foreign governments as an 
                eligible borrowers under this section, the 
                Administrator of the United States Agency for 
                International Development shall make a determination 
                that the additional debt of the government will not 
                exceed the debt repayment capacity of the government.
                  ``(ii) In making the determination under clause (i), 
                the Administrator shall consult, as appropriate, with 
                international financial institutions and other 
                institutions or agencies that assess debt service 
                capacity.
          ``(7) Assessment of credit risk.--(A) The Administrator of 
        the United States Agency for International Development shall 
        use the Interagency Country Risk Assessment System (ICRAS) and 
        the methodology approved by the Office of Management and Budget 
        to assess the cost of risk credit assistance provided under 
        this section to foreign governments.
          ``(B) With respect to the provision of credit to 
        nongovernmental organizations, the Administrator--
                  ``(i) shall consult with appropriate private sector 
                institutions, including the two largest United States 
                private sector debt rating agencies, prior to 
                establishing the risk assessment standards and 
                methodologies to be used; and
                  ``(ii) shall periodically consult with such 
                institutions in reviewing the performance of such 
                standards and methodologies.
          ``(C) In addition, if the anticipated share of financing 
        attributable to public sector owned or controlled entities, 
        including the United States Agency for International 
        Development, exceeds 49 percent, the Administrator shall 
        determine the cost (as defined in section 502(5) of the Federal 
        Credit Reform Act of 1990) of such assistance by using the cost 
        and risk assessment determinations of the private sector co-
        financing entities.
          ``(8) Use of united states technology, firms, and 
        equipment.--Activities financed under this section shall, to 
        the maximum extent practicable, use or employ United States 
        technology, firms, and equipment.''.

SEC. 307. FOREIGN GOVERNMENT PARKING FINES.

  (a) In General.--Chapter 1 of part III of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2351 et seq.), as amended by this Act, is further 
amended by adding at the end the following new section:

``SEC. 620K. FOREIGN GOVERNMENT PARKING FINES.

  ``(a) In General.--An amount equivalent to 110 percent of the total 
unpaid fully adjudicated parking fines and penalties owed to the 
District of Columbia, Virginia, Maryland, New York, and New York City 
by the government of a foreign country as of the end of a fiscal year, 
as certified and transmitted to the President by the chief executive 
officer of each State, City, or District, shall be withheld from 
obligation for such country out of funds available in the next fiscal 
year to carry out part I of this Act, until the requirement of 
subsection (b) is satisfied.
  ``(b) Requirement.--The requirement of this subsection is satisfied 
when the Secretary of State determines and certifies to the appropriate 
congressional committees that such fines and penalties are fully paid 
to the governments of the District of Columbia, Virginia, Maryland, and 
New York.
  ``(c) Appropriate Congressional Committees Defined.--For purposes of 
this section, the term `appropriate congressional committees' means the 
Committee on International Relations and the Committee on 
Appropriations of the House of Representatives and the Committee on 
Foreign Relations and the Committee on Appropriations of the Senate.''.
  (b) Effective Date.--The amendment made by subsection (a) shall apply 
with respect to fines certified as of the end of fiscal year 1998 or 
any fiscal year thereafter.
  (c) Technical Amendment.--The second section 620G of the Foreign 
Assistance Act of 1961, as added by section 149 of Public Law 104-164 
(110 Stat. 1436), is amended--
          (1) by redesignating such section as section 620J of such 
        Act; and
          (2) by inserting such section after section 620I of such Act.

SEC. 308. WITHHOLDING UNITED STATES ASSISTANCE TO COUNTRIES THAT AID 
                    THE GOVERNMENT OF CUBA.

  (a) In General.--Except as provided in subsection (b), not later than 
180 days after the date of the enactment of this Act, the President 
shall withhold assistance under the Foreign Assistance Act of 1961 to 
any foreign government providing economic, development, or security 
assistance for, or engaging in nonmarket based trade with the 
Government of Cuba.
  (b) Waiver.--The President may waive the provisions of subsection (a) 
if the President certifies to the appropriate congressional committees 
that the provision of United States assistance is important to the 
national security of the United States.
  (c) Nonmarket Based Trade Defined.--For the purpose of this section, 
the term ``nonmarket based trade'' means exports, imports, exchanges, 
or other arrangements that are provided for goods and services on terms 
more favorable than those generally available in applicable markets or 
for comparable commodities, including--
          (1) exports to the Cuban Government on terms that involve a 
        grant, concessional price, guaranty, insurance, or subsidy;
          (2) imports from the Cuban Government at preferential tariff 
        rates;
          (3) exchange arrangements that include advance delivery of 
        commodities, arrangements in which the Cuban Government is not 
        held accountable for unfulfilled exchange contracts, and 
        arrangements under which Cuba does not pay appropriate 
        transportation, insurance, or finance costs; and
          (4) the exchange, reduction, or forgiveness of debt of the 
        Cuban Government in exchange for a grant by the Cuban 
        Government of an equity interest in a property, investment, or 
        operation of the Cuban Government or of a Cuban national.

               TITLE IV--DEFENSE AND SECURITY ASSISTANCE

                CHAPTER 1--NARCOTICS CONTROL ASSISTANCE

SEC. 401. DEFINITION.

  (a) In General.--Section 481(e)(4) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2291(e)(4)) is amended--
          (1) in subparagraph (A)(ii), inserting ``or under chapter 5 
        of part II'' after ``(including chapter 4 of part II)''; and
          (2) in subparagraph (B), by inserting before the semicolon at 
        the end the following: ``, other than sales or financing 
        provided for narcotics-related purposes following notification 
        in accordance with procedures applicable to reprogramming 
        notifications under section 634A of this Act''.
  (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to assistance provided on or after the date of the 
enactment of this Act.

SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

  Section 482(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2291a(a)(1)) is amended by striking ``$147,783,000 for fiscal year 1993 
and $171,500,000 for fiscal year 1994'' and inserting ``$230,000,000 
for each of the fiscal years 1998 and 1999''.

SEC. 403. AUTHORITY TO WITHHOLD BILATERAL ASSISTANCE AND OPPOSE 
                    MULTILATERAL DEVELOPMENT ASSISTANCE FOR MAJOR 
                    ILLICIT DRUG PRODUCING COUNTRIES, DRUG-TRANSIT 
                    COUNTRIES, AND MONEY LAUNDERING COUNTRIES.

  (a) In General.--Section 490 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2291j) is amended to read as follows:

``SEC. 490. AUTHORITY TO WITHHOLD BILATERAL ASSISTANCE AND OPPOSE 
                    MULTILATERAL DEVELOPMENT ASSISTANCE FOR MAJOR 
                    ILLICIT DRUG PRODUCING COUNTRIES, DRUG-TRANSIT 
                    COUNTRIES, AND MONEY LAUNDERING COUNTRIES.

  ``(a) In General.--For every country identified in the report under 
section 489(a)(3), the President shall, on or after March 1, 1998, and 
March 1 of each succeeding year, to the extent considered necessary by 
the President to achieve the purposes of this chapter, take one or more 
of the following actions:
          ``(1) Withhold from obligation and expenditure any or all 
        United States assistance allocated each fiscal year in the 
        report required by section 653 for each such country.
          ``(2) Instruct the Secretary of the Treasury to instruct the 
        United States Executive Director of each multilateral 
        development bank to vote, on and after March 1 of each year, 
        against any loan or other utilization of the funds of their 
        respective institution to or for any such country.
  ``(b) Considerations.--In determining whether or not take one or more 
actions described in subsection (a), the President shall consider the 
extent to which--
          ``(1) the country has--
                  ``(A) met the goals and objectives of the United 
                Nations Convention Against Illicit Traffic in Narcotic 
                Drugs and Psychotropic Substances, including action on 
                such issues as illicit cultivation, production, 
                distribution, sale, transport and financing, and money 
                laundering, asset seizure, extradition, mutual legal 
                assistance, law enforcement and transit cooperation, 
                precursor chemical control, and demand reduction;
                  ``(B) accomplished the goals described in an 
                applicable bilateral narcotics agreement with the 
                United States or a multilateral agreement;
                  ``(C) reached agreement, or is negotiating in good 
                faith to reach agreement, to ensure that banks and 
                other financial institutions of the country maintain 
                adequate records of large United States currency 
                transactions;
                  ``(D) reached agreement, or is negotiating in good 
                faith to reach agreement, to establish a mechanism for 
                exchanging adequate records on international currency 
                transactions in connection with narcotics 
                investigations and proceedings; and
                  ``(E) taken legal and law enforcement measures to 
                prevent and punish public corruption, especially by 
                senior government officials, that facilitates the 
                production, processing, or shipment of narcotic and 
                psychotropic drugs and other controlled substances, or 
                that discourages the investigation or prosecution of 
                such acts; and
          ``(2) such actions will--
                  ``(A) promote the purposes of this chapter; and
                  ``(B) affect other United States national interests.
  ``(c) Consultations with the Congress.--
          ``(1) Consultations.--The President shall consult with the 
        Congress on the status of counter-narcotics cooperation between 
        the United States and each major illicit drug producing 
        country, major drug-transit country, or major money laundering 
        country.
          ``(2) Purpose.--
                  ``(A) In general.--The purpose of the consultations 
                under paragraph (1) shall be to facilitate improved 
                discussion and understanding between the Congress and 
                the President on United States counter-narcotics goals 
                and objectives with regard to the countries described 
                in paragraph (1), including the strategy for achieving 
                such goals and objectives.
                  ``(B) Regular and special consultations.--In order to 
                carry out subparagraph (A), the President (or senior 
                officials designated by the President who are 
                responsible for international narcotics programs and 
                policies) shall meet with Members of Congress--
                          ``(i) on a quarterly basis for discussions 
                        and consultations; and
                          ``(ii) whenever time-sensitive issues arise.
  ``(d) Definition.--For purposes of this section, the term 
`multilateral development bank' means the International Bank for 
Reconstruction and Development, the International Development 
Association, the Inter-American Development Bank, the Asian Development 
Bank, the African Development Bank, and the European Bank for 
Reconstruction and Development.''.
  (b) Conforming Amendments.--(1) Section 481(e)(8) of such Act (22 
U.S.C. 2291(e)(8)) is amended by striking ``Committee on Foreign 
Affairs'' and inserting ``Committee on International Relations''.
  (2) Section 485(b) of such Act (22 U.S.C. 2291d(b)) is amended by 
striking ``Committee on Foreign Affairs'' and inserting ``Committee on 
International Relations''.
  (3) Section 488(a)(3) of such Act (22 U.S.C. 2291g(a)(3)) is amended 
by striking ``Committee on Foreign Affairs'' and inserting ``Committee 
on International Relations''.
  (4) Section 489(a) of such Act (22 U.S.C. 2291h(a)) is amended--
          (A) in paragraph (3)(A), by striking ``as determined under 
        section 490(h)''; and
          (B) in the matter preceding subparagraph (A) of paragraph 
        (7), by striking ``paragraph (3)(D)'' and inserting ``paragraph 
        (3)(C)''.

   CHAPTER 2--NONPROLIFERATION, ANTITERRORISM, DEMINING, AND RELATED 
                                PROGRAMS

SEC. 411. NONPROLIFERATION, ANTITERRORISM, DEMINING, AND RELATED 
                    PROGRAMS.

  (a) In General.--Part II of the Foreign Assistance Act of 1961 (22 
U.S.C. 2301 et seq.) is amended by adding at the end the following:

  ``CHAPTER 9--NONPROLIFERATION, ANTITERRORISM, DEMINING AND RELATED 
                                PROGRAMS

``SEC. 581. NONPROLIFERATION AND DISARMAMENT FUND.

  ``(a) Establishment of Fund.--The President shall establish a 
Nonproliferation and Disarmament Fund, which may be used 
notwithstanding any other provision of law, to promote bilateral and 
multilateral nonproliferation and disarmament activities--
          ``(1) to halt the proliferation of nuclear, biological, and 
        chemical weapons, their delivery systems, related technologies, 
        and other weapons;
          ``(2) to dismantle and destroy nuclear, biological, and 
        chemical weapons, their delivery systems, and conventional 
        weapons;
          ``(3) to prevent the diversion of weapons-related scientific 
        and technical expertise; and
          ``(4) to support science and technology centers in Russia and 
        the Ukraine.
  ``(b) Prohibited Activities.--Amounts made available to carry out 
subsection (a) may not be used to implement United States obligations 
pursuant to bilateral or multilateral arm control treaties or 
nonproliferation accords, including the payment of salaries and 
expenses.
  ``(c) Additional Requirements.--
          ``(1) Notification.--Amounts made available to carry out 
        subsection (a) may be provided only if the congressional 
        committees specified in section 634A of this Act are notified 
        at least fifteen days before providing funds under such 
        subsection in accordance with procedures applicable to 
        reprogramming notifications under such section.
          ``(2) Assistance for the independent states of the former 
        soviet union and international organizations.--Amounts made 
        available to carry out subsection (a) may only be provided for 
        the independent states of the former Soviet Union and 
        international organizations if the Secretary of State--
                  ``(A) determines it is in the national interest of 
                the United States to do so; and
                  ``(B) includes such determination in the notification 
                described in paragraph (1).
  ``(d) Availability of Amounts.--
          ``(1) In general.--Of the amounts made available to carry out 
        this chapter for fiscal years 1998 and 1999--
                  ``(A) not less than $15,000,000 for each such fiscal 
                year may be made available to carry out subsection (a); 
                and
                  ``(B) not more than $5,000,000 of the amount made 
                available under subparagraph (A) for fiscal year 1998, 
                and not more than $3,000,000 of such amount made 
                available in fiscal year 1999, may be used to support 
                export control programs.
          ``(2) Availability.--Amounts made available under paragraph 
        (1) are authorized to remain available until expended.

``SEC. 582. ASSISTANCE FOR ANTITERRORISM.

  ``Amounts made available to carry out this chapter for fiscal years 
1998 and 1999 may be made available to carry out chapter 8 of part II 
of this Act.

``SEC. 583. ASSISTANCE FOR DEMINING.

  ``The President is authorized to provide assistance for demining 
activities, notwithstanding any other provision of law, including--
          ``(1) to enhance the ability of countries, international 
        organizations, and nongovernmental organizations to detect and 
        clear landmines; and
          ``(2) to educate affected populations about the dangers of 
        landmines.

``SEC. 584. ASSISTANCE FOR RELATED PROGRAMS.

  ``(a) In General.--Amounts made available to carry out this chapter 
for fiscal years 1998 and 1999 may be made available to carry out 
section 301 of this Act for voluntary contributions to the 
International Atomic Energy Agency (IAEA) and the Korean Peninsula 
Energy Development Organization (KEDO) and to programs administered by 
such organizations.
  ``(b) Limitation.--Of the amounts made available under subsection (a) 
for fiscal years 1998 and 1999, not more than $30,000,000 may be made 
available for each fiscal year to KEDO for the administrative expenses 
and heavy fuel oil costs associated with implementation of the Agreed 
Framework.

``SEC. 585. DEFINITIONS.

  ``As used in this chapter--
          ``(1) Agreed framework.--The term `Agreed Framework' means 
        the documents agreed to between the United States and the 
        Democratic People's Republic of Korea on October 21, 1994, 
        regarding elimination of the nuclear weapons program of the 
        Democratic People's Republic of Korea and the provision of 
        certain assistance to that country.
          ``(2) Independent states of the former soviet union.--The 
        term `independent states of the former Soviet Union' has the 
        meaning given such term in section 3 of the Freedom for Russia 
        and Emerging Eurasian Democracies and Open Markets Support Act 
        of 1992 (22 U.S.C. 5801).

``SEC. 586. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated $110,000,000 for fiscal year 1998 and $111,000,000 for 
fiscal year 1999, in addition to amounts otherwise available for such 
purposes, to carry out the purpose of this chapter.
  ``(b) Administrative Authorities.--Any agency of the United States 
Government may utilize such funds in accordance with authority granted 
under this Act or under authority governing the activities of that 
agency.
  ``(c) Designation of Account.--Appropriations pursuant to subsection 
(a) may be referred to as the `Nonproliferation, Antiterrorism, 
Demining and Related Programs Account' or `NADR Account'.''.
  (b) Reference in Other Provisions of Law.--A reference in any other 
provision of law to section 504 of the Freedom for Russia and Emerging 
Eurasian Democracies and Open Markets Support Act of 1992 (22 U.S.C. 
5854) shall be deemed to include a reference to chapter 9 of part II of 
the Foreign Assistance Act of 1961, as added by subsection (a).
  (c) Conforming Amendments.--(1) Section 504 of the Freedom for Russia 
and Emerging Eurasian Democracies and Open Markets Support Act of 1992 
(22 U.S.C. 5854) is hereby repealed.
  (2) The table of contents of such Act is amended by striking the item 
relating to section 504.

             CHAPTER 3--FOREIGN MILITARY FINANCING PROGRAM

SEC. 421. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to the President for grant 
assistance under section 23 of the Arms Export Control Act (22 U.S.C. 
2763) and for the subsidy cost, as defined in section 502(5) of the 
Federal Credit Reform Act of 1990, of direct loans under such section--
          (1) $3,318,000,000 for fiscal year 1998; and
          (2) $3,274,250,000 for fiscal year 1999.

SEC. 422. ASSISTANCE FOR ISRAEL.

  (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1998 and 1999 for assistance under section 23 of the Arms Export 
Control Act (22 U.S.C. 2763; relating to the ``Foreign Military 
Financing Program''), not less than $1,800,000,000 for each such fiscal 
year shall be available only for Israel.
  (b) Terms of Assistance.--
          (1) Grant basis.--The assistance provided for Israel for each 
        fiscal year under subsection (a) shall be provided on a grant 
        basis.
          (2) Expedited disbursement.--Such assistance shall be 
        disbursed--
                  (A) with respect to fiscal year 1998, not later than 
                30 days after the date of the enactment of the Foreign 
                Operations, Export Financing, and Related Programs 
                Appropriations Act, 1998, or by October 31, 1997, 
                whichever is later; and
                  (B) with respect to fiscal year 1999, not later than 
                30 days after the date of the enactment of the Foreign 
                Operations, Export Financing, and Related Programs 
                Appropriations Act, 1999, or by October 31, 1998, 
                whichever is later.
          (3) Advanced weapons systems.--To the extent that the 
        Government of Israel requests that funds be used for such 
        purposes, funds described in subsection (a) shall, as agreed by 
        the Government of Israel and the Government of the United 
        States, be available for advanced weapons systems, of which not 
        less than $475,000,000 for each fiscal year shall be available 
        only for procurement in Israel of defense articles and defense 
        services, including research and development.

SEC. 423. ASSISTANCE FOR EGYPT.

  (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1998 and 1999 for assistance under section 23 of the Arms Export 
Control Act (22 U.S.C. 2763; relating to the ``Foreign Military 
Financing Program'' account), not less than $1,300,000,000 for each 
such fiscal year shall be available only for Egypt.
  (b) Terms of Assistance.--The assistance provided for Egypt for each 
fiscal year under subsection (a) shall be provided on a grant basis.

SEC. 424. AUTHORIZATION OF ASSISTANCE TO FACILITATE TRANSITION TO NATO 
                    MEMBERSHIP UNDER NATO PARTICIPATION ACT OF 1994.

  (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1998 and 1999 for assistance under section 23 of the Arms Export 
Control Act (22 U.S.C. 2763; relating to the ``Foreign Military 
Financing Program''), not less than $50,900,000 for each such fiscal 
year shall be made available for the program established under section 
203(a) of the NATO Participation Act of 1994 (title II of Public Law 
103-447; 22 U.S.C. 1928 note).
  (b) Terms of Assistance.--The assistance provided under subsection 
(a) may be provided on a grant basis, and may also be made available 
for the subsidy cost, as defined in section 502(5) of the Federal 
Credit Reform Act of 1990, of direct loans to countries eligible for 
assistance under the program established under section 203(a) of the 
NATO Participation Act of 1994 (title II of Public Law 103-447; 22 
U.S.C. 1928 note).

SEC. 425. LOANS FOR GREECE AND TURKEY.

  Of the amounts made available for fiscal year 1998 under section 23 
of the Arms Export Control Act (22 U.S.C. 2763)--
          (1) not more than $12,850,000 shall be made available for the 
        subsidy cost, as defined in section 502(5) of the Federal 
        Credit Reform Act of 1990, of direct loans for Greece; and
          (2) not more than $33,150,000 shall be made available for 
        such subsidy cost of direct loans for Turkey.

SEC. 426. LIMITATIONS ON LOANS.

  Of the amounts made available for fiscal year 1999 under section 23 
of the Arms Export Control (22 U.S.C. 2763) for the subsidy cost, as 
defined in section 502(5) of the Federal Credit Reform Act of 1990, of 
direct loans, no such amounts shall be made available to any country 
which has an Inter-Agency Country Risk Assessment Systems (ICRAS) 
rating of less than grade C-.

SEC. 427. ADMINISTRATIVE EXPENSES.

  Of the amounts made available for fiscal years 1998 and 1999 for 
assistance under section 23 of the Arms Export Control Act (22 U.S.C. 
2763; relating to the ``Foreign Military Financing Program''), not more 
than $23,250,000 for each of the fiscal years 1998 and 1999 may be made 
available for necessary expenses for the general costs of 
administration of military assistance and sales, including expenses 
incurred in purchasing passenger motor vehicles for replacement for use 
outside the United States.

        CHAPTER 4--INTERNATIONAL MILITARY EDUCATION AND TRAINING

SEC. 431. AUTHORIZATION OF APPROPRIATIONS.

  Section 542 of the Foreign Assistance Act of 1961 (22 U.S.C. 2347a) 
is amended by striking ``$56,221,000 for the fiscal year 1986 and 
$56,221,000 for the fiscal year 1987'' and inserting ``$50,000,000 for 
each of the fiscal years 1998 and 1999''.

SEC. 432. IMET ELIGIBILITY FOR PANAMA AND HAITI.

  Notwithstanding section 660(c) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2420(c)), assistance under chapter 5 of part II of such Act 
(22 U.S.C. 2347) may be provided to Panama and Haiti for each of the 
fiscal years 1998 and 1999.

   CHAPTER 5--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES

SEC. 441. AUTHORITY TO TRANSFER NAVAL VESSELS.

  (a) Brazil.--The Secretary of the Navy is authorized to transfer to 
the Government of Brazil the ``HUNLEY'' class submarine tender HOLLAND 
(AS 32).
  (b) Chile.--The Secretary of the Navy is authorized to transfer to 
the Government of Chile the ``KAISER'' class oiler ISHERWOOD (T-AO 
191).
  (c) Egypt.--The Secretary of the Navy is authorized to transfer to 
the Government of Egypt the ``KNOX'' class frigates PAUL (FF 1080), 
MILLER (FF 1091), JESSE L. BROWN (FFT 1089), and MOINESTER (FFT 1097), 
and the ``OLIVER HAZARD PERRY'' class frigates FAHRION (FFG 22) and 
LEWIS B. PULLER (FFG 23).
  (d) Israel.--The Secretary of the Navy is authorized to transfer to 
the Government of Israel the ``NEWPORT'' class tank landing ship PEORIA 
(LST 1183).
  (e) Malaysia.--The Secretary of the Navy is authorized to transfer to 
the Government of Malaysia the ``NEWPORT'' class tank landing ship 
BARBOUR COUNTY (LST 1195).
  (f) Mexico.--The Secretary of the Navy is authorized to transfer to 
the Government of Mexico the ``KNOX'' class frigate ROARK (FF 1053).
  (g) Taiwan.--The Secretary of the Navy is authorized to transfer to 
the Taipei Economic and Cultural Representative Office in the United 
States (which is the Taiwan instrumentality designated pursuant to 
section 10(a) of the Taiwan Relations Act) the ``KNOX'' class frigates 
WHIPPLE (FF 1062) and DOWNES (FF 1070).
  (h) Thailand.--The Secretary of the Navy is authorized to transfer to 
the Government of Thailand the ``NEWPORT'' class tank landing ship 
SCHENECTADY (LST 1185).
  (i) Form of transfers.--Each transfer authorized by this section 
shall be on a sales basis under section 21 of the Arms Export Control 
Act (22 U.S.C. 2761; relating to the foreign military sales program).

SEC. 442. COSTS OF TRANSFERS.

  Any expense of the United States in connection with a transfer 
authorized by this chapter shall be charged to the recipient.

SEC. 443. EXPIRATION OF AUTHORITY.

  The authority granted by section 451 shall expire at the end of the 
2-year period beginning on the date of the enactment of this Act.

SEC. 444. REPAIR AND REFURBISHMENT OF VESSELS IN UNITED STATES 
                    SHIPYARDS.

  The Secretary of the Navy shall require, to the maximum extent 
possible, as a condition of a transfer of a vessel under this chapter, 
that the country to which the vessel is transferred have such repair or 
refurbishment of the vessel as is needed, before the vessel joins the 
naval forces of that country, performed at a shipyard located in the 
United States, including a United States Navy shipyard.

      CHAPTER 6--INDONESIA MILITARY ASSISTANCE ACCOUNTABILITY ACT

SEC. 451. SHORT TITLE.

  This chapter may be cited as the ``Indonesia Military Assistance 
Accountability Act''.

SEC. 452. FINDINGS.

  The Congress finds the following:
          (1)(A) Despite a surface adherence to democratic forms, the 
        Indonesian political system remains strongly authoritarian.
          (B) The government is dominated by an elite comprising 
        President Soeharto (now in his sixth 5-year term), his close 
        associates, and the military.
          (C) The government requires allegiance to a state ideology 
        known as ``Pancasila'', which stresses consultation and 
        consensus, but is also used to limit dissent, to enforce social 
        and political cohesion, and to restrict the development of 
        opposition elements.
          (2) The Government of Indonesia recognizes only one official 
        trade union, has refused to register independent trade unions 
        such as the Indonesian Prosperity Trade Union (SBSI), has 
        arrested Muchtar Pakpahan, the General Chairman of the SBSI, on 
        charges of subversion, and other labor activists, and has 
        closed the offices and confiscated materials of the SBSI.
          (3) Civil society organizations in Indonesia, such as 
        environmental organizations, election-monitoring organizations, 
        legal aid organizations, student organizations, trade union 
        organizations, and community organizations, have been harassed 
        by the Government of Indonesia through such means as 
        detentions, interrogations, denial of permission for meetings, 
        banning of publications, repeated orders to report to security 
        forces or judicial courts, and illegal seizure of documents.
          (4)(A) The armed forces of Indonesia continue to carry out 
        torture and other severe violations of human rights in East 
        Timor, Irian Jaya, and other parts of Indonesia, to detain and 
        imprison East Timorese and others for nonviolent expression of 
        political views, and to maintain unjustifiably high troop 
        levels in East Timor.
          (B) Indonesian civil authorities must improve their human 
        rights performance in East Timor, Irian Jaya, and elsewhere in 
        Indonesia, and aggressively prosecute violations.
          (5) The Nobel Prize Committee awarded the 1996 Nobel Peace 
        Prize to Bishop Carlos Felipe Ximenes Belo and Jose Ramos Horta 
        for their tireless efforts to find a just and peaceful solution 
        to the conflict in East Timor.
          (6) In 1992, the Congress suspended the international 
        military and education training (IMET) program for Indonesia in 
        response to a November 12, 1991, shooting incident in East 
        Timor by Indonesian security forces against peaceful Timorese 
        demonstrators in which no progress has been made in accounting 
        for the missing persons either in that incident or others who 
        disappeared in 1995-96.
          (7) On August 1, 1996, then Secretary of State Warren 
        Christopher stated in testimony before the Committee on Foreign 
        Relations of the Senate, ``I think there's a strong interest in 
        seeing an orderly transition of power there [in Indonesia] that 
        will recognize the pluralism that should exist in a country of 
        that magnitude and importance.''.
          (8) The United States has important economic, commercial, and 
        security interests in Indonesia because of its growing economy 
        and markets and its strategic location astride a number of key 
        international straits which will only be strengthened by 
        democratic development in Indonesia and a policy which promotes 
        political pluralism and respect for universal human rights.

 SEC. 453. LIMITATION ON MILITARY ASSISTANCE TO THE GOVERNMENT OF 
                    INDONESIA.

  (a) In General.--The United States shall not provide military 
assistance and arms transfers programs for a fiscal year to the 
Government of Indonesia unless the President determines and certifies 
to the Congress for that fiscal year that the Government of Indonesia 
meets the following requirements:
          (1) Domestic monitoring of elections.--(A) The Government of 
        Indonesia provides official accreditation to independent 
        election-monitoring organizations, including the Independent 
        Election Monitoring Committee (KIPP), to observe national 
        elections without interference by personnel of the Government 
        or of the armed forces.
          (B) In addition, such organizations are allowed to assess 
        such elections and to publicize or otherwise disseminate the 
        assessments throughout Indonesia.
          (2) Protection of nongovernmental organizations.--The police 
        or military of Indonesia do not confiscate materials from or 
        otherwise engage in illegal raids on the offices or homes of 
        members of both domestic or international nongovernmental 
        organizations, including election-monitoring organizations, 
        legal aid organizations, student organizations, trade union 
        organizations, community organizations, environmental 
        organizations, and religious organizations.
          (3) Accountability for attack on pdi headquarters.--As 
        recommended by the Government of Indonesia's National Human 
        Rights Commission, the Government of Indonesia has investigated 
        the attack on the headquarters of the Democratic Party of 
        Indonesia (PDI) on July 27, 1996, prosecuted individuals who 
        planned and carried out the attack, and made public the 
        postmortem examination of the five individuals killed in the 
        attack.
          (4) Resolution of conflict in east timor.--
                  (A) Establishment of dialogue.--The Government of 
                Indonesia is doing everything possible to enter into a 
                process of dialogue, under the auspices of the United 
                Nations, with Portugal and East Timorese leaders of 
                various viewpoints to discuss ideas toward a resolution 
                of the conflict in East Timor and the political status 
                of East Timor.
                  (B) Reduction of troops.--The Government of Indonesia 
                has established and implemented a plan to reduce the 
                number of Indonesian troops in East Timor.
                  (C) Release of political prisoners.--Individuals 
                detained or imprisoned for the non-violent expression 
                of political views in East Timor have been released 
                from custody.
          (5) Improvement in labor rights.--The Government of Indonesia 
        has taken the following actions to improve labor rights in 
        Indonesia:
                  (A) The Government has dropped charges of subversion, 
                and previous charges against the General Chairman of 
                the SBSI trade union, Muchtar Pakpahan, and released 
                him from custody.
                  (B) The Government has substantially reduced the 
                requirements for legal recognition of the SBSI or other 
                legitimate worker organizations as a trade union.
  (b) Waivers.--
          (1) In general.--The limitation on United States military 
        assistance and arms transfers under subsection (a) shall not 
        apply if the President determines and notifies the Congress 
        that--
                  (A) an emergency exists that requires providing such 
                assistance or arms transfers for the Government of 
                Indonesia; or
                  (B) subject to paragraph (2), it is in the national 
                interest of the United States to provide such 
                assistance or arms transfers for the Government of 
                Indonesia.
          (2) Applicability.--A determination under paragraph (1)(B) 
        shall not become effective until 15 days after the date on 
        which the President notifies the Congress in accordance with 
        such paragraph.
  (c) Effective Date.--The limitation on United States military 
assistance and arms transfers under subsection (a) shall apply only 
with respect to assistance provided for, and arms transfers made 
pursuant to agreements entered into, fiscal years beginning after the 
date of enactment of this Act.

 SEC. 454. UNITED STATES MILITARY ASSISTANCE AND ARMS TRANSFERS 
                    DEFINED.

  As used in this chapter, the term ``military assistance and arms 
transfers'' means--
          (1) small arms, crowd control equipment, armored personnel 
        carriers, and such other items that can commonly be used in the 
        direct violation of human rights; and
          (2) assistance under chapter 5 of part II of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2347 et seq.; relating to 
        international military education and training or ``IMET''), 
        except such term shall not include Expanded IMET, pursuant to 
        section 541 of such Act.

                      CHAPTER 7--OTHER PROVISIONS

SEC. 461. EXCESS DEFENSE ARTICLES FOR CERTAIN EUROPEAN COUNTRIES.

  Section 105 of Public Law 104-164 (110 Stat. 1427) is amended by 
striking ``1996 and 1997'' and inserting ``1998 and 1999''.

SEC. 462. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS DEFENSE ARTICLES IN 
                    THE WAR RESERVE ALLIES STOCKPILE TO THE REPUBLIC OF 
                    KOREA.

  (a) Authority.--
          (1) In general.--Notwithstanding section 514 of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2321h), the President is 
        authorized to transfer to the Republic of Korea, in return for 
        concessions to be negotiated by the Secretary of Defense, with 
        the concurrence of the Secretary of State, any or all of the 
        items described in paragraph (2).
          (2) Items described.--The items described in this paragraph 
        are equipment, tanks, weapons, repair parts, and ammunition 
        that--
                  (A) are obsolete or surplus items;
                  (B) are in the inventory of the Department of 
                Defense;
                  (C) are intended for use as reserve stocks for the 
                Republic of Korea; and
                  (D) as of the date of enactment of this Act, are 
                located in a stockpile in the Republic of Korea.
  (b) Concessions.--The value of the concessions negotiated pursuant to 
subsection (a) shall be at least equal to the fair market value of the 
items transferred. The concessions may include cash compensation, 
services, waiver of charges otherwise payable by the United States, and 
other items of value.
  (c) Advance Notification of Transfer.--Not less than 30 days before 
making a transfer under the authority of this section, the President 
shall transmit to the Committee on Foreign Relations of the Senate, the 
Committee on International Relations of the House of Representatives, 
and the congressional defense committees a notification of the proposed 
transfer. The notification shall identify the items to be transferred 
and the concessions to be received.
  (d) Expiration of Authority.--No transfer may be made under the 
authority of this section more than two years after the date of the 
enactment of this Act.

SEC. 463. ADDITIONAL REQUIREMENTS RELATING TO STOCKPILING OF DEFENSE 
                    ARTICLES FOR FOREIGN COUNTRIES.

  (a) Value of Additions to Stockpiles.--Section 514(b)(2)(A) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321h(b)(2)(A)) is amended by 
inserting before the period at the end the following: ``and $60,000,000 
for fiscal year 1998''.
  (b) Requirements Relating to the Republic of Korea and Thailand.--
Section 514(b)(2)(B) of such Act (22 U.S.C 2321h(b)(2)(B)) is amended 
by adding at the end the following: ``Of the amount specified in 
subparagraph (A) for fiscal year 1998, not more than $40,000,000 may be 
made available for stockpiles in the Republic of Korea and not more 
than $20,000,000 may be made available for stockpiles in Thailand.''.

SEC. 464. DELIVERY OF DRAWDOWN BY COMMERCIAL TRANSPORTATION SERVICES.

  Section 506 of the Foreign Assistance Act of 1961 (22 U.S.C.2318) is 
amended--
          (1) in subsection (b)(2), by striking the period and 
        inserting the following: ``, including providing the Congress 
        with a report detailing all defense articles, defense services, 
        and military education and training delivered to the recipient 
        country or international organization upon delivery of such 
        articles or upon completion of such services or education and 
        training. Such report shall also include whether any savings 
        were realized by utilizing commercial transport services rather 
        than acquiring those services from United States Government 
        transport assets.'';
          (2) by redesignating subsection (c) as subsection (d); and
          (3) by inserting after subsection (b) the following:
  ``(c) For the purposes of any provision of law that authorizes the 
drawdown of defense or other articles or commodities, or defense or 
other services from an agency of the United States Government, such 
drawdown may include the supply of commercial transportation and 
related services that are acquired by contract for the purposes of the 
drawdown in question if the cost to acquire such commercial 
transportation and related services is less than the cost to the United 
States Government of providing such services from existing agency 
assets.''.

SEC. 465. CASH FLOW FINANCING NOTIFICATION.

  Section 25 of the Arms Export Control Act (22 U.S.C. 2765) is 
amended--
          (1) in the second subsection (d)--
                  (A) by striking ``(d)'' and inserting ``(e)''; and
                  (B) by striking the semicolon at the end and 
                inserting a period; and
          (2) by adding at the end the following:
  ``(f) For each country that has been approved for cash flow financing 
(as defined in subsection (e)) under section 23 of this Act (relating 
to the `Foreign Military Financing Program'), any letter of offer and 
acceptance or other purchase agreement, or any amendment thereto, for a 
procurement in excess of $100,000,000 that is to be financed in whole 
or in part with funds made available under this Act shall be submitted 
in accordance with the procedures applicable to reprogramming 
notifications pursuant to section 634A of this Act and through the 
regular notification procedures of the Committee on Appropriations.''.

SEC. 466. MULTINATIONAL ARMS SALES CODE OF CONDUCT.

  (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the President shall convene negotiations with 
all Wassenaar Arrangement countries for the purpose of establishing a 
multinational arms sales code of conduct.
  (b) Conduct of Negotiations.--Such negotiations shall achieve 
agreement on restricting or prohibiting arms transfers to countries 
that--
          (1) do not respect democratic processes and the rule of law;
          (2) do not adhere to internationally-recognized norms on 
        human rights; or
          (3) are engaged in acts of armed aggression.
  (c) Report.--Not later than 1 year after the date of the enactment of 
this Act, the President shall prepare and transmit to the Committee on 
International Relations of the House of Representative and the 
Committee on Foreign Relations of the Senate a report on--
          (1) efforts to establish a multinational arms sales code of 
        conduct;
          (2) progress toward establishing such code of conduct; and
          (3) any obstacles that impede the establishment of such code 
        of conduct.

                      TITLE V--ECONOMIC ASSISTANCE

                 CHAPTER 1--ECONOMIC SUPPORT ASSISTANCE

SEC. 501. ECONOMIC SUPPORT FUND.

  Section 532(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2346a(a)) is amended to read as follows:
  ``(a) There are authorized to be appropriated to the President to 
carry out the purposes of this chapter $2,388,350,000 for fiscal year 
1998 and $2,350,600,000 for fiscal year 1999.''.

SEC. 502. ASSISTANCE FOR ISRAEL.

  (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1998 and 1999 for assistance under chapter 4 of part II of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2346; relating to the 
economic support fund), not less than $1,200,000,000 for each such 
fiscal year shall be available only for Israel.
  (b) Terms of Assistance.--
          (1) Cash transfer.--The total amount of funds allocated for 
        Israel for each fiscal year under subsection (a) shall be made 
        available on a grant basis as a cash transfer.
          (2) Expedited disbursement.--Such funds shall be disbursed--
                  (A) with respect to fiscal year 1998, not later than 
                30 days after the date of the enactment of the Foreign 
                Operations, Export Financing, and Related Programs 
                Appropriations Act, 1998, or by October 31, 1997, 
                whichever is later; and
                  (B) with respect to fiscal year 1999, not later than 
                30 days after the date of the enactment of the Foreign 
                Operations, Export Financing, and Related Programs 
                Appropriations Act, 1999, or by October 31, 1998, 
                whichever is later.
          (3) Additional requirement.--In exercising the authority of 
        this subsection, the President shall ensure that the amount of 
        funds provided as a cash transfer to Israel does not cause an 
        adverse impact on the total level of nonmilitary exports from 
        the United States to Israel.

SEC. 503. ASSISTANCE FOR EGYPT.

  (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1998 and 1999 for assistance under chapter 4 of part II of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2346; relating to the 
economic support fund), not less than $815,000,000 for each such fiscal 
year shall be available only for Egypt.
  (b) Additional Requirement.--In exercising the authority of this 
section, the President shall ensure that the amount of funds provided 
as a cash transfer to Egypt does not cause an adverse impact on the 
total level of nonmilitary exports from the United States to Egypt.
  (c) Declaration of Policy.--The Congress declares the following:
          (1) Assistance to Egypt is based in great measure upon 
        Egypt's continued implementation of the Camp David accords and 
        the Egyptian-Israeli peace treaty.
          (2) Fulfillment by Egypt of its obligations under the 
        agreements described in paragraph (1) has been disappointing, 
        particularly the failure by Egypt to meet fully its commitment 
        made at Camp David to establish with Israel ``relationships 
        normal to states at peace with one another'', and in its recent 
        support for reimposing the Arab economic boycott of Israel.
          (3) Support for future funding levels of assistance for Egypt 
        will be determined largely on whether Egypt fulfills its 
        obligations to develop normal relations with Israel and to 
        promote peace with Israel and other critical United States 
        interests both in Egypt and the wider Arab world.

SEC. 504. INTERNATIONAL FUND FOR IRELAND.

  (a) Funding.--Of the amounts made available for fiscal years 1998 and 
1999 for assistance under chapter 4 of part II of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2346; relating to the economic 
support fund), not more than $19,600,000 for each of the fiscal years 
1998 and 1999 shall be available for the United States contribution to 
the International Fund for Ireland in accordance with the Anglo-Irish 
Agreement Support Act of 1986 (Public Law 99-415).
  (b) Additional Requirements.--
          (1) Purposes.--Section 2(b) of the Anglo-Irish Agreement 
        Support Act of 1986 (Public Law 99-415; 100 Stat. 947) is 
        amended by adding at the end the following new sentences: 
        ``United States contributions shall be used in a manner that 
        effectively increases employment opportunities in communities 
        with rates of unemployment significantly higher than the local 
        or urban average of unemployment in Northern Ireland. In 
        addition, such contributions shall be used to benefit 
        individuals residing in such communities.''.
          (2) Conditions and understandings.--Section 5(a) of such Act 
        is amended--
                  (A) in the first sentence--
                          (i) by striking ``The United States'' and 
                        inserting the following:
          ``(1) In general.--The United States'';
                          (ii) by striking ``in this Act may be used'' 
                        and inserting the following: ``in this Act--
                  ``(A) may be used'';
                          (iii) by striking the period and inserting 
                        ``; and''; and
                          (iv) by adding at the end the following:
                  ``(B) may be provided to an individual or entity in 
                Northern Ireland only if such individual or entity is 
                in compliance with the principles of economic 
                justice.''; and
                  (B) in the second sentence, by striking ``The 
                restrictions'' and inserting the following:
          ``(2) Additional requirements.--The restrictions''.
          (3) Prior certifications.--Section 5(c)(2) of such Act is 
        amended--
                  (A) in subparagraph (A), by striking ``principle of 
                equality'' and all that follows and inserting 
                ``principles of economic justice; and''; and
                  (B) in subparagraph (B), by inserting before the 
                period at the end the following: ``and will create 
                employment opportunities in regions and communities of 
                Northern Ireland suffering the highest rates of 
                unemployment''.
          (4) Annual reports.--Section 6 of such Act is amended--
                  (A) in paragraph (2), by striking ``and'' at the end;
                  (B) in paragraph (3), by striking the period and 
                inserting ``; and''; and
                  (C) by adding at the end the following new paragraph:
          ``(4) each individual or entity receiving assistance from 
        United States contributions to the International Fund has 
        agreed in writing to comply with the principles of economic 
        justice.''.
          (5) Requirements relating to funds.--Section 7 of such Act is 
        amended by adding at the end the following:
  ``(c) Prohibition.--Nothing included herein shall require quotas or 
reverse discrimination or mandate their use.''.
          (6) Definitions.--Section 8 of such Act is amended--
                  (A) in paragraph (1), by striking ``and'' at the end;
                  (B) in paragraph (2), by striking the period at the 
                end and inserting a semicolon; and
                  (C) by adding at the end the following new 
                paragraphs:
          ``(3) the term `Northern Ireland' includes the counties of 
        Antrim, Armagh, Derry, Down, Tyrone, and Fermanagh; and
          ``(4) the term `principles of economic justice' means the 
        following principles:
                  ``(A) Increasing the representation of individuals 
                from underrepresented religious groups in the 
                workforce, including managerial, supervisory, 
                administrative, clerical, and technical jobs.
                  ``(B) Providing adequate security for the protection 
                of minority employees at the workplace.
                  ``(C) Banning provocative sectarian or political 
                emblems from the workplace.
                  ``(D) Providing that all job openings be advertised 
                publicly and providing that special recruitment efforts 
                be made to attract applicants from underrepresented 
                religious groups.
                  ``(E) Providing that layoff, recall, and termination 
                procedures do not favor a particular religious group.
                  ``(F) Abolishing job reservations, apprenticeship 
                restrictions, and differential employment criteria 
                which discriminate on the basis of religion.
                  ``(G) Providing for the development of training 
                programs that will prepare substantial numbers of 
                minority employees for skilled jobs, including the 
                expansion of existing programs and the creation of new 
                programs to train, upgrade, and improve the skills of 
                minority employees.
                  ``(H) Establishing procedures to assess, identify, 
                and actively recruit minority employees with the 
                potential for further advancement.
                  ``(I) Providing for the appointment of a senior 
                management staff member to be responsible for the 
                employment efforts of the entity and, within a 
                reasonable period of time, the implementation of the 
                principles described in subparagraphs (A) through 
                (H).''.
          (7) Effective date.--The amendments made by this subsection 
        shall take effect 180 days after the date of the enactment of 
        this Act.

SEC. 505. ASSISTANCE FOR TRAINING OF CIVILIAN PERSONNEL OF THE MINISTRY 
                    OF DEFENSE OF THE GOVERNMENT OF NICARAGUA.

  Notwithstanding section 531(e) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2346(e)), amounts made available for fiscal years 1998 and 
1999 for assistance under chapter 4 of part II of such Act (22 U.S.C. 
2346; relating to the economic support fund) may be made available for 
assistance and training for civilian personnel of the Ministry of 
Defense of the Government of Nicaragua if, prior to the provision of 
such assistance, the Secretary of State determines and reports to the 
Congress that such assistance is necessary to establishing a civilian 
Ministry of Defense capable of effective oversight and management of 
the Nicaraguan armed forces and ensuring respect for civilian authority 
and human rights.

SEC. 506. AVAILABILITY OF AMOUNTS FOR CUBAN LIBERTY AND DEMOCRATIC 
                    SOLIDARITY (LIBERTAD) ACT OF 1996 AND THE CUBAN 
                    DEMOCRACY ACT OF 1992.

  Of the amounts made available for fiscal years 1998 and 1999 for 
assistance under chapter 4 of part II of the Foreign Assistance Act of 
1961 (22 U.S.C. 2346; relating to the economic support fund), not less 
than $2,000,000 for each such fiscal year shall be made available to 
carry out the programs and activities under the Cuban Liberty and 
Democratic Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6021 et seq.) 
and the Cuban Democracy Act of 1992 (22 U.S.C. 6001 et seq.).

                   CHAPTER 2--DEVELOPMENT ASSISTANCE

            Subchapter A--Development Assistance Authorities

SEC. 511. AUTHORIZATION OF APPROPRIATIONS.

  (a) Development Assistance Fund.--The Foreign Assistance Act of 1961 
(22 U.S.C. 2151 et seq.) is amended by inserting after section 106 and 
before section 107A, as added by this Act, the following:

``SEC. 107. DEVELOPMENT ASSISTANCE FUND.

  ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated to the President to carry out sections 103 through 106, in 
addition to amounts otherwise available for such purposes, 
$1,203,000,000 for each of the fiscal years 1998 and 1999.
  ``(b) Additional Use of Amounts.--Of the amounts authorized to be 
appropriated under subsection (a)--
          ``(1) the President may use such amounts as he deems 
        appropriate to carry out the provisions of section 316 of the 
        International Security and Development Cooperation Act of 1980;
          ``(2) $2,500,000 for fiscal year 1998 and $4,000,000 for 
        fiscal year 1999 may be made available to carry out section 510 
        of the International Security and Development Cooperation Act 
        of 1980 (relating to the African Development Foundation) (such 
        amounts are in addition to amounts otherwise made available to 
        carry out section 510 of such Act); and
          ``(3) $2,000,000 for fiscal year 1998 and $7,000,000 for 
        fiscal year 1999 may be made available to carry out section 401 
        of the Foreign Assistance Act of 1969 (relating to the Inter-
        American Foundation) (such amounts are in addition to amounts 
        otherwise made available to carry out section 401 of such Act).
  ``(c) Availability.--The amounts authorized to be appropriated under 
subsection (a) are authorized to remain available until expended.''.
  (b) Development Fund for Africa.--Section 497 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2294) is amended to read as follows:

``SEC. 497. AVAILABILITY OF AMOUNTS.

  ``(a) In General.--Of the amounts made available to carry out 
sections 103 through 106 (including section 104(c)) for fiscal years 
1998 and 1999, not less than $700,000,000 for each of the fiscal years 
1998 and 1999 shall be made available to carry out this chapter (in 
addition to amounts otherwise available for such purposes).
  ``(b) Availability.--Amounts made available under subsection (a) are 
authorized to remain available until expended.''.
  (c) Assistance for the Independent States of the Former Soviet 
Union.--Section 498C(a) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2295c(a)) is amended by striking ``for fiscal year 1993 
$410,000,000'' and inserting ``for economic assistance and related 
programs, $839,900,000 for fiscal year 1998 and $789,900,000 for fiscal 
year 1999''.
  (d) Assistance for East European Countries.--
          (1) In general.--There are authorized to be appropriated to 
        the President, in addition to amounts otherwise available for 
        such purposes, $471,000,000 for fiscal year 1998 and 
        $337,000,000 for fiscal year 1999 for economic assistance and 
        related programs for Eastern Europe and the Baltic states under 
        the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and 
        the Support for East European Democracy (SEED) Act of 1989 (22 
        U.S.C. 5401 et seq.).
          (2) Debt relief for bosnia and herzegovina.--Notwithstanding 
        any other provision of law, of the amounts authorized to be 
        appropriated for fiscal years 1998 and 1999 under paragraph 
        (1), not more than $5,000,000 may be made available for the 
        cost, as defined in section 502 of the Federal Credit Reform 
        Act of 1990, of modifying direct loans and loan guarantees for 
        Bosnia and Herzegovina.
          (3) Availability.--Amounts authorized to be appropriated 
        under paragraph (1) are authorized to remain available until 
        expended.
  (e) Inter-American Foundation.--Section 401(s)(2) of the Foreign 
Assistance Act of 1969 (22 U.S.C. 290f(s)(2)) is amended to read as 
follows:
  ``(2)(A) There are authorized to be appropriated to the President to 
carry out programs under this section, in addition to amounts otherwise 
available for such purposes, $20,000,000 for fiscal year 1998 and 
$15,000,000 for fiscal year 1999.
  ``(B) Amounts authorized to be appropriated under subparagraph (A) 
are authorized to remain available until expended.''.
  (f) African Development Foundation.--The first sentence of section 
510 of the International Security and Development Cooperation Act of 
1980 (22 U.S.C. 290h-8) is amended by striking ``$3,872,000 for fiscal 
year 1986 and $3,872,000 for fiscal year 1987'' and inserting 
``$11,500,000 for fiscal year 1998 and $10,000,000 for fiscal year 
1999.''.

SEC. 512. CHILD SURVIVAL ACTIVITIES.

  Section 104(c) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151b(c)) is amended to read as follows:
  ``(c) Assistance for Child Survival, Health, Basic Education for 
Children, and Disease Prevention.--
          ``(1) Authority.--The President is authorized to furnish 
        assistance, on such terms and conditions as he may determine, 
        for child survival and health programs, including programs that 
        address the special health and nutrition needs of children and 
        mothers, and basic education programs for children. Assistance 
        under this subsection may be used for the following:
                  ``(A) Activities whose primary purpose is to reduce 
                child morbidity and child mortality and which have a 
                substantial, direct, and measurable impact on child 
                morbidity and child mortality, such as--
                          ``(i) immunization;
                          ``(ii) oral rehydration;
                          ``(iii) activities relating to Vitamin A 
                        deficiency, iodine deficiency, and other 
                        micronutrients;
                          ``(iv) programs designed to reduce child 
                        malnutrition;
                          ``(v) programs to prevent and treat acute 
                        respiratory infections;
                          ``(vi) programs for the prevention, 
                        treatment, and control of, and research on, 
                        polio, malaria and other diseases primarily 
                        affecting children; and
                          ``(vii) programs whose primary purpose is to 
                        prevent neonatal mortality.
                  ``(B) Other child survival activities such as--
                          ``(i) basic integrated health services;
                          ``(ii) assistance for displaced and orphaned 
                        children;
                          ``(iii) safe water and sanitation;
                          ``(iv) health programs, and related education 
                        programs, which primarily address the needs of 
                        mothers and children; and
                          ``(v) related health planning and research.
                  ``(C) Basic education programs for mothers and 
                children.
                  ``(D) Other disease activities such as programs for 
                the prevention, treatment and control of, and research 
                on, tuberculosis, HIV/AIDS, and other diseases.
          ``(2) Priority.--Child survival activities administered by 
        the United States Agency for International Development under 
        this subsection shall be primarily devoted to activities of the 
        type described in paragraph (1)(A).
          ``(3) Application of other authorities.--Funds made available 
        to carry out this subsection that are provided for countries 
        receiving assistance under chapters 10 and 11 of part I of this 
        Act or the Support for East European Democracy (SEED) Act of 
        1989, may be made available--
                  ``(A) only for the activities described in paragraph 
                (1); and
                  ``(B) except to the extent inconsistent with 
                subparagraph (A), pursuant to the authorities otherwise 
                applicable to the provision of assistance for such 
                countries.
          ``(4) International organizations.--Funds made available to 
        carry out this subsection may be used to make contributions on 
        a grant basis to the United Nations Children's Fund (UNICEF) 
        pursuant to section 301 of this Act.
          ``(5) PVO/child survival grants program.--Of amounts made 
        available to carry out this subsection for a fiscal year, not 
        less than $30,000,000 should be provided to the private and 
        voluntary organizations under the PVO/Child Survival grants 
        program carried out by the United States Agency for 
        International Development.
          ``(6) Report.--The Administrator of the United States Agency 
        for International Development shall report to Congress, as part 
        of the congressional presentation document required under 
        section 634 of this Act, the total amounts to be provided for 
        activities under each subparagraph of paragraph (1).
          ``(7) Authorization of appropriations.--(A) In addition to 
        amounts otherwise available for such purposes, and in addition 
        to amounts made available under section 107, there are 
        authorized to be appropriated to the President $600,000,000 for 
        each of the fiscal years 1998 and 1999 for use in carrying out 
        this subsection.
          ``(B) Amounts appropriated under this paragraph are 
        authorized to remain available until expended.
          ``(8) Designation of fund.--Appropriations pursuant to this 
        subsection may be referred to as the `Child Survival and 
        Disease Programs Fund'.''.

SEC. 513. REQUIREMENT ON ASSISTANCE TO THE RUSSIAN FEDERATION.

  (a) In General.--Of the amounts made available to carry out chapter 
11 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2295 et 
seq.) for fiscal years 1998 and 1999, not more than $95,000,000 for 
each such fiscal year may be provided to the Russian Federation unless 
the President determines and reports to the Congress for each such 
fiscal year that--
          (1) the Government of the Russian Federation has terminated 
        all official cooperation with, and transfers of goods and 
        technology to, ballistic missile or nuclear programs in Iran, 
        and has taken all appropriate steps to prevent cooperation 
        with, and transfers of goods and technology to, such programs 
        in Iran by persons and entities subject to its jurisdiction; 
        and
          (2) the Government of the Russian Federation has terminated 
        all official cooperation with, and transfers of goods and 
        technology to, nuclear reactor projects in Cuba, and has taken 
        all appropriate steps to prevent cooperation with, and 
        transfers of goods and technology to, such projects in Cuba by 
        persons and entities subject to its jurisdiction.
  (b) Additional Limitation.--
          (1) In general.--Notwithstanding subsection (a), none of the 
        funds made available to carry out chapter 11 of part I of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2295 et seq.) for 
        fiscal years 1998 and 1999 may be made available for the 
        Russian Federation if the Russian Federation, on or after the 
        date of the enactment of this Act, transfers an SS-N-22 missile 
        system to the People's Republic of China.
          (2) Exception.--Paragraph (1) shall not apply if the 
        President determines that making such funds available is 
        important to the national security interest of the United 
        States. Any such determination shall cease to be effective 6 
        months after being made unless the President determines that 
        its continuation is important to the national security interest 
        of the United States.

SEC. 514. HUMANITARIAN ASSISTANCE FOR ARMENIA AND AZERBAIJAN.

  (a) Sense of the Congress.--It is the sense of the Congress that the 
President should seek cooperation from the governments of Armenia and 
Azerbaijan to ensure that humanitarian assistance, including assistance 
delivered through nongovernmental organizations and private and 
voluntary organizations, shall be available to all needy citizens 
within Armenia and Azerbaijan, including those individuals in the 
region of Nagorno-Karabakh.
  (b) Report.--The President shall prepare and transmit a report to the 
Congress on humanitarian needs throughout Armenia and Azerbaijan and 
the provision of assistance to meet such needs by United States and 
other donor organizations and states.

SEC. 515. AGRICULTURAL DEVELOPMENT AND RESEARCH ASSISTANCE.

  (a) Findings.--The Congress finds that the proportion of United 
States development assistance devoted to agricultural development and 
research has declined sharply from 17 percent in 1990 to 8 percent in 
1996.
  (b) Sense of the Congress.--It is the sense of the Congress that--
          (1) United States investment in international agricultural 
        development and research has been a critical part of many 
        economic development successes;
          (2) agricultural development and research advance food 
        security, thereby reducing poverty, increasing political 
        stability, and promoting United States exports; and
          (3) the United States Agency for International Development 
        should increase the emphasis it places on agricultural 
        development and research and expand the role of agricultural 
        development and research in poverty relief, child survival, and 
        environmental programs.

SEC. 516. ACTIVITIES AND PROGRAMS IN LATIN AMERICA AND THE CARIBBEAN 
                    REGION AND THE ASIA AND THE PACIFIC REGION.

  Of the amounts made available for fiscal years 1998 and 1999 for 
assistance under sections 103 through 106 of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2151a through 2151d), including assistance under 
section 104(c) of such Act (22 U.S.C. 2151b(c)), the amount made 
available for activities and programs in Latin America and the 
Caribbean region and the Asia and the Pacific region should be in at 
least the same proportion to the total amount of such assistance made 
available as the amount identified in the congressional presentation 
documents for development assistance for each of the fiscal years 1998 
and 1999, respectively, for each such region is to the total amount 
requested for development assistance for each such fiscal year.

SEC. 517. SUPPORT FOR AGRICULTURAL DEVELOPMENT ASSISTANCE.

  (a) In General.--For each of the fiscal years 1998 and 1999 the 
President should allocate an aggregate level to programs under section 
103 of the Foreign Assistance Act of 1961 (22 U.S.C. 2151a; relating to 
agriculture, rural development, and nutrition) in amounts equal to the 
level provided to such programs in fiscal year 1997.
  (b) Increasing Levels.--If appropriations for programs under chapter 
1 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et 
seq.; relating to development assistance) increase in fiscal year 1998 
or 1999 above levels provided in fiscal year 1997, the President should 
allocate an increasing level for programs under section 103 of such Act 
(22 U.S.C. 2151a; relating to agriculture, rural development, and 
nutrition).

                    Subchapter B--Operating Expenses

SEC. 521. OPERATING EXPENSES GENERALLY.

  Section 667(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2427(a)(1)) is amended to read as follows:
          ``(1) $473,000,000 for fiscal year 1998 and $465,000,000 for 
        fiscal year 1999 for necessary operating expenses of the United 
        States Agency for International Development (other than the 
        Office of the Inspector General of such agency);''.

SEC. 522. OPERATING EXPENSES OF THE OFFICE OF THE INSPECTOR GENERAL.

  Section 667(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2427(a)), as amended by this Act, is further amended--
          (1) by redesignating paragraph (2) as paragraph (3); and
          (2) by inserting after paragraph (1) the following:
          ``(2) $29,047,000 for each of the fiscal years 1998 and 1999 
        for necessary operating expenses of the Office of the Inspector 
        General of such agency; and''.

           CHAPTER 3--URBAN AND ENVIRONMENTAL CREDIT PROGRAM

SEC. 531. URBAN AND ENVIRONMENTAL CREDIT PROGRAM.

   (a) In General.--The heading for title III of chapter 2 of part I of 
the Foreign Assistance Act of 1961 is amended to read as follows:

         ``TITLE III--URBAN AND ENVIRONMENTAL CREDIT PROGRAM''.

  (b) Repeals.--(1) Section 222(k) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2182(k)) is hereby repealed.
  (2) Section 222A of such Act (22 U.S.C. 2182a) is hereby repealed.
  (3) Section 223(j) of such Act (22 U.S.C. 2183(j)) is hereby 
repealed.

                       CHAPTER 4--THE PEACE CORPS

SEC. 541. AUTHORIZATION OF APPROPRIATIONS.

  Section 3(b) of the Peace Corps Act (22 U.S.C. 2502(b)) is amended to 
read as follows:
  ``(b)(1) There are authorized to be appropriated to carry out the 
purposes of this Act $222,000,000 for fiscal year 1998 and $225,000,000 
for fiscal year 1999.
  ``(2) Amounts authorized to be appropriated under paragraph (1)--
          ``(A) with respect to fiscal year 1998 are authorized to 
        remain available until September 30, 1999; and
          ``(B) with respect to fiscal year 1999 are authorized to 
        remain available until September 30, 2000.''.

SEC. 542. ACTIVITIES OF THE PEACE CORPS IN THE FORMER SOVIET UNION AND 
                    MONGOLIA.

  Of the amounts made available for fiscal years 1998 and 1999 to carry 
out chapter 11 of part I of the Foreign Assistance Act of 1961 (22 
U.S.C. 2295 et seq.; relating to assistance for the independent states 
of the former Soviet Union), not more than $11,000,000 for each such 
fiscal year shall be available for activities of the Peace Corps in the 
independent states of the former Soviet Union (as defined in section 3 
of the Freedom for Russia and Emerging Eurasian Democracies and Open 
Markets Support Act of 1992) and Mongolia.

SEC. 543. AMENDMENTS TO THE PEACE CORPS ACT.

  (a) Terms and Conditions of Volunteer Service.--Section 5 of the 
Peace Corps Act (22 U.S.C. 2504) is amended--
          (1) in subsection (f)(1)(B), by striking ``Civil Service 
        Commission'' and inserting ``Office of Personnel Management'';
          (2) in subsection (h), by striking ``the Federal Voting 
        Assistance Act of 1955'' and all that follows through the end 
        of the subsection and inserting ``sections 5584 and 5732 of 
        title 5, United States Code (and readjustment allowances paid 
        under this Act shall be considered as pay for purposes of such 
        section 5732), section 1 of the Act of June 4, 1920 (22 U.S.C. 
        214), and section 3342 of title 31, United States Code.''; and
          (3) in subsection (j), by striking ``section 1757 of the 
        Revised Statutes'' and all that follows through the end of the 
        subsection and inserting ``section 3331 of title 5, United 
        States Code.''.
  (b) General Powers and Authorities.--Section 10 of such Act (22 
U.S.C. 2509) is amended--
          (1) in subsection (a)(4), by striking ``31 U.S.C. 665(b)'' 
        and inserting ``section 1342 of title 31, United States Code''; 
        and
          (2) in subsection (a)(5), by striking ``Provided, That'' and 
        all that follows through the end of the paragraph and inserting 
        ``, except that such individuals shall not be deemed employees 
        for the purpose of any law administered by the Office of 
        Personnel Management.''.
  (c) Utilization of Funds.--Section 15 of such Act (22 U.S.C. 2514) is 
amended--
          (1) in the first sentence of subsection (c)--
                  (A) by striking ``Public Law 84-918 (7 U.S.C. 1881 et 
                seq.)'' and inserting ``subchapter VI of chapter 33 of 
                title 5, United States Code (5 U.S.C. 3371 et seq.)''; 
                and
                  (B) by striking ``specified in that Act'' and 
                inserting ``or other organizations specified in section 
                3372(b) of such title''; and
          (2) in subsection (d)--
                  (A) in paragraph (2), by striking ``section 9 of 
                Public Law 60-328 (31 U.S.C. 673)'' and inserting 
                ``section 1346 of title 31, United States Code'';
                  (B) in paragraph (6), by striking ``without regard to 
                section 3561 of the Revised Statutes (31 U.S.C. 543)'';
                  (C) in paragraph (11)--
                          (i) by striking ``Foreign Service Act of 
                        1946, as amended (22 U.S.C. 801 et seq.),'' and 
                        inserting ``Foreign Service Act of 1980 (22 
                        U.S.C. 3901 et seq.)''; and
                          (ii) by striking ``and'' at the end;
                  (D) in paragraph (12), by striking the period at the 
                end and by inserting ``; and''; and
                  (E) by adding at the end the following:
          ``(13) the transportation of Peace Corps employees, Peace 
        Corps volunteers, dependents of employees and volunteers, and 
        accompanying baggage, by a foreign air carrier when the 
        transportation is between 2 places outside the United States 
        without regard to section 40118 of title 49, United States 
        Code.''.
  (d) Prohibition on use of Funds for Abortions.--Section 15 of such 
Act (22 U.S.C. 2514) is amended, as amended by this Act, is further 
amended by adding at the end the following new subsection:
  ``(e) Funds made available for the purposes of this Act may not be 
used to pay for abortions.''.

              CHAPTER 5--INTERNATIONAL DISASTER ASSISTANCE

SEC. 551. AUTHORITY TO PROVIDE RECONSTRUCTION ASSISTANCE.

  Section 491 of the Foreign Assistance Act of 1961 (22 U.S.C. 2292) is 
amended--
          (1) in subsection (a), by striking ``and rehabilitation'' and 
        inserting ``, rehabilitation, and reconstruction, as the case 
        may be,'';
          (2) in subsection (b), by striking ``and rehabilitation'' and 
        inserting ``, rehabilitation, and reconstruction''; and
          (3) in subsection (c), by striking ``and rehabilitation'' and 
        inserting ``, rehabilitation, and reconstruction''.

SEC. 552. AUTHORIZATIONS OF APPROPRIATIONS.

  Section 492(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2292a(a)) is amended in the first sentence to read as follows: ``There 
are authorized to be appropriated to the President to carry out section 
491, in addition to funds otherwise available for such purposes, 
$190,000,000 for each of the fiscal years 1998 and 1999.''.

                         CHAPTER 6--DEBT RELIEF

SEC. 561. DEBT RESTRUCTURING FOR FOREIGN ASSISTANCE.

  Chapter 6 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 
2271 et seq.) is amended to read as follows:

                        ``CHAPTER 6--DEBT RELIEF

``SEC. 461. SPECIAL DEBT RELIEF FOR POOR COUNTRIES.

  ``(a) Authority to Reduce Debt.--The President may reduce amounts 
owed to the United States Government by a country described in 
subsection (b) as a result of--
          ``(1) loans or guarantees issued under this Act; or
          ``(2) credits extended or guarantees issued under the Arms 
        Export Control Act (22 U.S.C. 2751 et seq.).
  ``(b) Country Described.--A country described in this subsection is a 
country--
          ``(1) with a heavy debt burden that is eligible to borrow 
        from the International Development Association but not from the 
        International Bank for Reconstruction and Development (commonly 
        referred to as an `IDA-only' country);
          ``(2) the government of which--
                  ``(A) does not have an excessive level of military 
                expenditures;
                  ``(B) has not repeatedly provided support for acts of 
                international terrorism; and
                  ``(C) is not failing to cooperate with the United 
                States on international narcotics control matters;
          ``(3) the government (including the military or other 
        security forces of such government) of which does not engage in 
        a consistent pattern of gross violations of internationally 
        recognized human rights; and
          ``(4) that is not ineligible for assistance because of the 
        application of section 527(a) of the Foreign Relations 
        Authorization Act, Fiscal Years 1994 and 1995.
  ``(c) Limitations.--The authority under subsection (a) may be 
exercised--
          ``(1) only to implement multilateral official debt relief ad 
        referendum agreements (commonly referred to as `Paris Club 
        Agreed Minutes'); and
          ``(2) only to the extent that appropriations for the cost of 
        the modification, as defined in section 502 of the 
        Congressional Budget Act of 1974, are made in advance.
  ``(d) Certain Prohibitions Inapplicable.--A reduction of debt 
pursuant to the exercise of authority under subsection (a)--
          ``(1) shall not be considered assistance for purposes of any 
        provision of law limiting assistance to a country; and
          ``(2) may be exercised notwithstanding section 620(r) of this 
        Act or any comparable provision of law.
  ``(e) Authorization of Appropriations.--
          ``(1) In general.--There are authorized to be appropriated to 
        the President for the purpose of carrying out this section and 
        the Foreign Operations, Export Financing, and Related Programs 
        Supplemental Appropriations Act, 1994 (title VI of the Foreign 
        Operations, Export Financing, and Related Programs 
        Appropriations Act, 1994; Public Law 103-306) $32,000,000 for 
        each of the fiscal years 1998 and 1999.
          ``(2) Availability.--Amounts authorized to be appropriated 
        under paragraph (1) are authorized to remain available until 
        expended.''.

SEC. 562. DEBT BUYBACKS OR SALES FOR DEBT SWAPS.

  Part IV of the Foreign Assistance Act of 1961 (22 U.S.C. 2430 et 
seq.) is amended by adding at the end the following:

``SEC. 711. AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES.

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

                 CHAPTER 7--OTHER ASSISTANCE PROVISIONS

SEC. 571. EXEMPTION FROM RESTRICTIONS ON ASSISTANCE THROUGH 
                    NONGOVERNMENTAL ORGANIZATIONS.

  Section 123(e) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151u(e)) is amended to read as follows:
  ``(e)(1) Subject to paragraph (3), restrictions contained in this Act 
or any other provision of law with respect to assistance for a country 
shall not be construed to restrict assistance under this chapter, 
chapter 10, and chapter 11 of this part, chapter 4 of part II, or the 
Support for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5401 
et seq.), in support of programs of nongovernmental organizations.
  ``(2) The President shall take into consideration, in any case in 
which a restriction on assistance for a country would be applicable but 
for this subsection, whether assistance for programs of nongovernmental 
organizations is in the national interest of the United States.
  ``(3) Whenever the authority of this subsection is used to furnish 
assistance in support of a program of a nongovernmental organization, 
the President shall notify the congressional committees specified in 
section 634A(a) of this Act in accordance with procedures applicable to 
reprogramming notifications under that section. Such notification shall 
describe the program assisted, the assistance provided, and the reasons 
for furnishing such assistance.''.

SEC. 572. FUNDING REQUIREMENTS RELATING TO UNITED STATES PRIVATE AND 
                    VOLUNTARY ORGANIZATIONS.

  (a) In General.--Section 123(g) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2151u(g)) is amended to read as follows:
  ``(g) Funds made available to carry out this chapter or chapter 10 of 
this part may not be made available to any United States private and 
voluntary organization, except any cooperative development 
organization, that obtains less than 20 percent of its total annual 
funding for its international activities from sources other than the 
United States Government.''.
  (b) Effective Date.--The amendment made by subsection (a) applies 
with respect to funds made available for programs of any United States 
private and voluntary organization on or after the date of the 
enactment of this Act.

SEC. 573. DOCUMENTATION REQUESTED OF PRIVATE AND VOLUNTARY 
                    ORGANIZATIONS.

  Section 620 of the Foreign Assistance Act of 1961 (22 U.S.C. 2370) is 
amended by inserting after subsection (u) the following:
  ``(v) None of the funds made available to carry out this Act shall be 
available to any private and voluntary organization which--
          ``(1) fails to provide upon timely request any document, 
        file, or record necessary to the auditing requirements of the 
        United States Agency for International Development; or
          ``(2) is not registered with the United States Agency for 
        International Development.''.

SEC. 574. ENCOURAGEMENT OF FREE ENTERPRISE AND PRIVATE PARTICIPATION.

  Section 601(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2351(a)) is amended--
          (1) by striking ``(a)'' and inserting ``(a)(1)''; and
          (2) by adding the following:
  ``(2) To the maximum extent feasible, in providing assistance under 
Part I of this Act, the President should give special emphasis to 
programs and activities thatencourage the creation and development of 
private enterprise and free market systems, including--
          ``(A) the development of private cooperatives, credit unions, 
        labor unions, and civic and professional associations;
          ``(B) the reform and restructuring of banking and financial 
        systems; and
          ``(C) the development and strengthening of commercial laws 
        and regulations, including laws and regulations to protect 
        intellectual property.''.

SEC. 575. SENSE OF THE CONGRESS RELATING TO UNITED STATES COOPERATIVES 
                    AND CREDIT UNIONS.

  It is the sense of the Congress that--
          (1) United States cooperatives and cooperative development 
        organizations and credit unions can provide an opportunity for 
        people in developing countries to participate directly in 
        democratic decisionmaking for their economic and social benefit 
        through ownership and control of business enterprises and 
        through the mobilization of local capital and savings; and
          (2) such organizations should be utilized in fostering 
        democracy, free markets, community-based development, and self-
        help projects.

SEC. 576. FOOD ASSISTANCE TO THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.

  None of the funds made available in this division and the amendments 
made by this division shall be made available for assistance for food 
to the Democratic People's Republic of Korea unless the President 
certifies to the Congress that--
          (1) the Government of the Republic of Korea does not oppose 
        the delivery of United States assistance for food to the 
        Democratic People's Republic of Korea;
          (2) the United States Government is confident that previous 
        United States assistance for food and official concessional 
        food deliveries have not been diverted to military needs;
          (3) military stocks of the Democratic People's Republic of 
        Korea have been tapped to respond to unmet food aid needs;
          (4) the World Food Program and other international food 
        delivery organizations have been permitted to take and have 
        taken all reasonable steps to ensure that all upcoming food aid 
        deliveries will not be diverted from intended recipients; and
          (5) the Government of the United States has directly acted to 
        encourage, and acting through appropriate international 
        organizations, has encouraged such organizations to urge, the 
        Democratic People's Republic of Korea to initiate fundamental 
        structural reforms of its agricultural sector.

SEC. 577. WITHHOLDING OF ASSISTANCE TO COUNTRIES THAT PROVIDE NUCLEAR 
                    FUEL TO CUBA.

  (a) In General.--Section 620 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2370), as amended by this Act, is further amended by adding 
at the end the following:
  ``(y)(1) Except as provided in paragraph (2), the President shall 
withhold from amounts made available under this Act or any other Act 
and allocated for a country for a fiscal year an amount equal to the 
aggregate value of nuclear fuel and related assistance and credits 
provided by that country, or any entity of that country, to Cuba during 
the preceding fiscal year.
  ``(2) The requirement to withhold assistance for a country for a 
fiscal year under paragraph (1) shall not apply if Cuba--
                  ``(A) has ratified the Treaty on the Non-
                Proliferation of Nuclear Weapons (21 UST 483) or the 
                Treaty of Tlatelelco, and Cuba is in compliance with 
                the requirements of either such Treaty;
                  ``(B) has negotiated and is in compliance with full-
                scope safeguards of the International Atomic Energy 
                Agency not later than two years after ratification by 
                Cuba of such Treaty; and
                  ``(C) incorporates and is in compliance with 
                internationally accepted nuclear safety standards.
  ``(3) The Secretary of State shall prepare and submit to the Congress 
each year a report containing a description of the amount of nuclear 
fuel and related assistance and credits provided by any country, or any 
entity of a country, to Cuba during the preceding year, including the 
terms of each transfer of such fuel, assistance, or credits.''.
  (b) Effective Date.--Section 620(y) of the Foreign Assistance Act of 
1961, as added by subsection (a), shall apply with respect to 
assistance provided in fiscal years beginning on or after the date of 
the enactment of this Act.

                 TITLE VI--TRADE AND DEVELOPMENT AGENCY

SEC. 601. AUTHORIZATION OF APPROPRIATIONS.

  Section 661(f)(1)(A) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2421(f)(1)(A)) is amended to read as follows:
          ``(1) Authorization.--(A) There are authorized to be 
        appropriated for purposes of this section, in addition to funds 
        otherwise available for such purposes, $43,000,000 for each of 
        the fiscal years 1998 and 1999.''.

          TITLE VII--SPECIAL AUTHORITIES AND OTHER PROVISIONS

                     CHAPTER 1--SPECIAL AUTHORITIES

SEC. 701. ENHANCED TRANSFER AUTHORITY.

  Section 610 of the Foreign Assistance Act of 1961 (22 U.S.C. 2360) is 
amended to read as follows:

``SEC. 610. TRANSFER BETWEEN ACCOUNTS.

  ``(a) General Authority.--Whenever the President determines it to be 
necessary for the purposes of this Act or the Arms Export Control Act 
(22 U.S.C. 2751 et seq.), not to exceed 20 percent of the funds made 
available to carry out any provision of this Act (except funds made 
available pursuant to title IV of chapter 2 of part I) or section 23 of 
the Arms Export Control Act (22 U.S.C. 2763)--
          ``(1) may be transferred to, and consolidated with, the funds 
        in any other account or fund available to carry out any 
        provision of this Act or the Arms Export Control Act; and
          ``(2) may be used for any purpose for which funds in that 
        account or fund may be used.
  ``(b) Limitation on Amount of Increase.--The total amount in the 
account or fund for the benefit of which transfer is made under 
subsection (a) during any fiscal year may not be increased by more than 
20 percent of the amount of funds otherwise made available.
  ``(c) Notification.--The President shall notify in writing the 
congressional committees specified in section 634A at least fifteen 
days in advance of each such transfer between accounts in accordance 
with procedures applicable to reprogramming notifications under such 
section.''.

SEC. 702. AUTHORITY TO MEET UNANTICIPATED CONTINGENCIES.

  Paragraph (1) of section 451(a) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2261(a)(1)) is amended by striking ``$25,000,000'' and 
inserting ``$50,000,000''.

SEC. 703. SPECIAL WAIVER AUTHORITY.

  (a) Laws Affected.--Section 614 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2364) is amended by striking subsections (a)(1) and (a)(2) 
and inserting the following:
  ``(a) Authority To Authorize Assistance, Sales, and Other Actions; 
Limitations.--(1) The President may authorize assistance, sales, or 
other action under this Act, the Arms Export Control Act, or any annual 
(or periodic) foreign assistance authorization or appropriations 
legislation, without regard to any of the provisions described in 
subsection (b), if the President determines, and notifies in writing 
the Speaker of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate--
          ``(A) with respect to assistance or other actions under 
        chapter 2 or 5 of part II of this Act, or assistance, sales, or 
        other actions under the Arms Export Control Act, that to do so 
        is vital to the national security interests of the United 
        States; and
          ``(B) with respect to other assistance or actions that to do 
        so is important to the national interests of the United States.
  ``(2) The President may waive any provision described in paragraph 
(1), (2), or (3) of subsection (b) that would otherwise prohibit or 
restrict assistance or other action under any provision of law not 
described in those paragraphs if the President determines, and notifies 
in writing the Speaker of the House of Representatives andthe chairman 
of the Committee on Foreign Relations of the Senate, that to do so is 
important to the national interests of the United States.''.
  (b) Annual Ceilings.--Section 614(a)(4) of such Act (22 U.S.C. 
2364(a)(4)) is amended--
          (1) in subparagraph (A)--
                  (A) in clause (i), by striking ``$750,000,000'' and 
                inserting ``$1,000,000,000'';
                  (B) in clause (ii), by striking ``$250,000,000'' and 
                inserting ``$500,000,000''; and
                  (C) in clause (iii), by striking ``$100,000,000'' and 
                inserting ``$200,000,000''; and
          (2) in subparagraph (C)--
                  (A) by striking ``$50,000,000'' and inserting 
                ``$75,000,000''; and
                  (B) by striking $1,000,000,000'' and inserting 
                ``$1,500,000,000''.
  (c) Laws Which May Be Waived.--Section 614 of such Act (22 U.S.C. 
2364) is amended by striking subsections (b) and (c) and inserting the 
following:
  ``(b) Laws Which May Be Waived.--The provisions referred to in 
paragraphs (1) and (2) of subsection (a) are--
          ``(1) the provisions of this Act;
          ``(2) the provisions of the Arms Export Control Act;
          ``(3) the provisions of any annual (or periodic) foreign 
        assistance authorization or appropriations legislation, 
        including any amendment made by any such Act;
          ``(4) any other provision of law that restricts assistance, 
        sales or leases, or other action under the Acts referred to in 
        paragraph (1), (2), or (3); and
          ``(5) any law relating to receipts and credits accruing to 
        the United States.''.
  (d) Conforming Amendment.--Section 614(a)(4)(B) of such Act (22 U.S.C 
2364(a)(4)(B)) is amended by striking ``the Arms Export Control Act or 
under''.

SEC. 704. TERMINATION OF ASSISTANCE.

  Section 617 of the Foreign Assistance Act of 1961 (22 U.S.C. 2367) is 
amended to read as follows:

``SEC. 617. TERMINATION OF ASSISTANCE.

  ``(a) In General.--(1) In order to ensure the effectiveness of 
assistance provided under this Act, notwithstanding any other provision 
of law, funds made available under this Act or the Arms Export Control 
Act to carry out any program, project, or activity of assistance shall 
remain available for obligation for a period not to exceed 8 months 
after the date of termination of such assistance for the necessary 
expenses of winding up such programs, projects, or activities, and 
funds so obligated may remain available until expended.
  ``(2) Funds obligated to carry out any program, project, or activity 
of assistance before the effective date of the termination of such 
assistance are authorized to be available for expenditure for the 
necessary expenses of winding up such programs, projects, and 
activities, notwithstanding any provision of law restricting the 
expenditure of funds, and may be reobligated to meet any other 
necessary expenses arising from the termination of such assistance.
  ``(3) The necessary expenses of winding up programs, projects, and 
activities of assistance include the obligation and expenditure of 
funds to complete the training or studies outside their countries of 
origin of students whose course of study or training program began 
before assistance was terminated.
  ``(b) Liability to Contractors.--For the purpose of making an 
equitable settlement of termination claims under extraordinary 
contractual relief standards, the President is authorized to adopt as a 
contract or other obligation of the United States Government, and 
assume (in whole or in part) any liabilities arising thereunder, any 
contract with a United States or third-country contractor to carry out 
any program, project, or activity of assistance under this Act that was 
subsequently terminated pursuant to law.
  ``(c) Guarantee Programs.--Provisions of this or any other Act 
requiring the termination of assistance under this Act shall not be 
construed to require the termination of guarantee commitments that were 
entered into before the effective date of the termination of 
assistance.''.

SEC. 705. LOCAL ASSISTANCE TO HUMAN RIGHTS GROUPS IN CUBA.

  Section 109 of the Cuban Liberty and Democratic Solidarity (LIBERTAD) 
Act of 1996 (22 U.S.C. 6039) is amended by adding at the end the 
following:
  ``(d) Local Assistance.--
          ``(1) In general.--For the purposes of providing assistance 
        to independent nongovernmental organizations and individuals in 
        Cuba as authorized by subsection (a), amounts made available 
        under such subsection may be used for assistance to individuals 
        and nongovernmental organizations in Cuba and for local costs 
        incurred in delivering such assistance.
          ``(2) Certification.--A certification by a representative of 
        a United States or local nongovernmental organization, or other 
        entity, administering assistance described in paragraph (1), 
        that such assistance is being used for its intended purpose, 
        shall be deemed to satisfy any accountability requirement of 
        the United States Agency for International Development for the 
        administration of such assistance.''.

                           CHAPTER 2--REPEALS

SEC. 711. REPEAL OF OBSOLETE PROVISIONS.

  (a) 1987 Foreign Assistance Appropriations Act.--Section 539(g)(2) of 
the Foreign Assistance and Related Programs Appropriations Act, 1987, 
as included in Public Law 99-591, is hereby repealed.
  (b) 1986 Assistance Act.--The Special Foreign Assistance Act of 1986 
is hereby repealed except for section 1, section 204, and title III of 
such Act.
  (c) 1985 Assistance Act.--The International Security and Development 
Cooperation Act of 1985 is hereby repealed except for section 1, 
section 131, section 132, section 502, section 504, section 505, part B 
of title V (other than section 558 and section 559), section 1302, 
section 1303, and section 1304.
  (d) 1985 Jordan Supplemental Act.--The Jordan Supplemental Economic 
Assistance Authorization Act of 1985 is hereby repealed.
  (e) 1985 African Famine Act.--The African Famine Relief and Recovery 
Act of 1985 is hereby repealed.
  (f) 1983 Assistance Act.--The International Security and Development 
Assistance Authorization Act of 1983 is hereby repealed.
  (g) 1983 Lebanon Assistance Act.--The Lebanon Emergency Assistance 
Act of 1983 is hereby repealed.
  (h) 1981 Assistance Act.--The International Security and Development 
Cooperation Act of 1981 is hereby repealed except for section 1, 
section 709, and section 714.
  (i) 1980 Assistance Act.--The International Security and Development 
Cooperation Act of 1980 is hereby repealed except for section 1, 
section 110, section 316, and title V.
  (j) 1979 Development Assistance Act.--The International Development 
Cooperation Act of 1979 is hereby repealed.
  (k) 1979 Security Assistance Act.--The International Security 
Assistance Act of 1979 is hereby repealed.
  (l) 1979 Special Security Assistance Act.--The Special International 
Security Assistance Act of 1979 is hereby repealed.
  (m) 1978 Development Assistance Act.--The International Development 
and Food Assistance Act of 1978 is hereby repealed, except for section 
1, title IV, and section 603(a)(2).
  (n) 1978 Security Assistance Act.--The International Security 
Assistance Act of 1978 is hereby repealed.
  (o) 1977 Development Assistance Act.--The International Development 
and Food Assistance Act of 1977 is hereby repealed except for section 
1, section 132(b), and section 133.
  (p) 1977 Security Assistance Act.--The International Security 
Assistance Act of 1977 is hereby repealed.
  (q) 1976 Security Assistance Act.--The International Security 
Assistance and Arms Export Control Act of 1976 is hereby repealed 
except for section 1, section 201(b), section 212(b), section 601, and 
section 608.
  (r) 1975 Development Assistance Act.--The International Development 
and Food Assistance Act of 1975 is hereby repealed.
  (s) 1975 BIB Act.--Public Law 94-104 is hereby repealed.
  (t) 1974 Assistance Act.--The Foreign Assistance Act of 1974 is 
hereby repealed.
  (u) 1973 Emergency Assistance Act.--The Emergency Security Assistance 
Act of 1973 is hereby repealed.
  (v) 1973 Assistance Act.--The Foreign Assistance Act of 1973 is 
hereby repealed.
  (w) 1971 Assistance Act.--The Foreign Assistance Act of 1971 is 
hereby repealed.
  (x) 1971 Special Assistance Act.--The Special Foreign Assistance Act 
of 1971 is hereby repealed.
  (y) 1969 Assistance Act.--The Foreign Assistance Act of 1969 is 
hereby repealed except for the first section and part IV.
  (z) 1968 Assistance Act.--The Foreign Assistance Act of 1968 is 
hereby repealed.
  (aa) 1964 Assistance Act.--The Foreign Assistance Act of 1964 is 
hereby repealed.
  (bb) Latin American Development Act.--The Latin American Development 
Act is hereby repealed.
  (cc) 1959 Mutual Security Act.--The Mutual Security Act of 1959 is 
hereby repealed.
  (dd) 1954 Mutual Security Act.--Sections 402 and 417 of the Mutual 
Security Act of 1954 are hereby repealed.
  (ee) Department of State Authorization Act, Fiscal Years 1982 and 
1983.--Section 109 of the Department of State Authorization Act, Fiscal 
Years 1982 and 1983, is hereby repealed.
  (ff) Department of State Authorization Act, Fiscal Years 1984 and 
1985.--Sections 1004 and 1005(a) of the Department of State 
Authorization Act, Fiscal Years 1984 and 1985, are hereby repealed.
  (gg) Savings Provision.--Except as otherwise provided in this Act, 
the repeal by this Act of any provision of law that amended or repealed 
another provision of law does not affect in any way that amendment or 
repeal.

            DIVISION B--FOREIGN RELATIONS AUTHORIZATIONS ACT

                      TITLE X--GENERAL PROVISIONS

SEC. 1001. SHORT TITLE.

  This division may be cited as the ``Foreign Relations Authorization 
Act, Fiscal Years 1998 and 1999'' and shall be effective for all 
purposes as if enacted as a separate Act.

SEC. 1002. STATEMENT OF HISTORY OF LEGISLATION.

  This division consists of H.R. 1253, the Foreign Relations 
Authorization Act, Fiscal Years 1998 and 1999, which was introduced by 
Representative Smith of New Jersey on April 9, 1997, and amended and 
reported by the Subcommittee on International Operations and Human 
Rights of the Committee on International Relations on April 10, 1997.

SEC. 1003. DEFINITIONS.

  The following terms have the following meanings for the purposes of 
this division:
          (1) The term ``AID'' means the Agency for International 
        Development.
          (2) The term ``ACDA'' means the United States Arms Control 
        and Disarmament Agency.
          (3) The term ``appropriate congressional committees'' means 
        the Committee on International Relations of the House of 
        Representatives and the Committee of Foreign Relations of the 
        Senate.
          (4) The term ``Department'' means the Department of State.
          (5) The term ``Federal agency'' has the meaning given to the 
        term ``agency'' by section 551(1) of title 5, United States 
        Code.
          (6) The term ``Secretary'' means the Secretary of State.
          (7) The term ``USIA'' means the United States Information 
        Agency.

 TITLE XI--AUTHORIZATION OF APPROPRIATIONS FOR DEPARTMENT OF STATE AND 
         CERTAIN INTERNATIONAL AFFAIRS FUNCTIONS AND ACTIVITIES

SEC. 1101. ADMINISTRATION OF FOREIGN AFFAIRS.

  The following amounts are authorized to be appropriated for the 
Department of State under ``Administration of Foreign Affairs'' to 
carry out the authorities, functions, duties, and responsibilities in 
the conduct of the foreign affairs of the United States and for other 
purposes authorized by law, including the diplomatic security program:
          (1) Diplomatic and consular programs.--For ``Diplomatic and 
        Consular Programs'', of the Department of State $1,291,977,000 
        for the fiscal year 1998 and $1,291,977,000 for the fiscal year 
        1999.
          (2) Salaries and expenses.--
                  (A) Authorization of appropriations.--For ``Salaries 
                and Expenses'', of the Department of State $363,513,000 
                for the fiscal year 1998 and $363,513,000 for the 
                fiscal year 1999.
                  (B) Limitations.--Of the amounts authorized to be 
                appropriated by subparagraph (A) $2,000,000 for fiscal 
                year 1998 and $2,000,000 for fiscal year 1999 are 
                authorized to be appropriated only for the recruitment 
                of minorities for careers in the Foreign Service and 
                international affairs.
          (3) Capital investment fund.--For ``Capital Investment 
        Fund'', of the Department of State $64,600,000 for the fiscal 
        year 1998 and $64,600,000 for the fiscal year 1999.
          (4) Security and maintenance of buildings abroad.--For 
        ``Security and Maintenance of Buildings Abroad'', $373,081,000 
        for the fiscal year 1998 and $373,081,000 for the fiscal year 
        1999.
          (5) Representation allowances.--For ``Representation 
        Allowances'', $4,300,000 for the fiscal year 1998 and 
        $4,300,000 for the fiscal year 1999.
          (6) Emergencies in the diplomatic and consular service.--For 
        ``Emergencies in the Diplomatic and Consular Service'', 
        $5,500,000 for the fiscal 1998 and $5,500,000 for the fiscal 
        year 1999.
          (7) Office of the inspector general.--For ``Office of the 
        Inspector General'', $28,300,000 for the fiscal year 1998 and 
        $28,300,000 for the fiscal year 1999.
          (8) Payment to the american institute in taiwan.--For 
        ``Payment to the American Institute in Taiwan'', $14,490,000 
        for the fiscal year 1998 and $14,490,000 for the fiscal year 
        1999.
          (9) Protection of foreign missions and officials.--For 
        ``Protection of Foreign Missions and Officials'', $7,900,000 
        for the fiscal year 1998 and $7,900,000 for the fiscal year 
        1999.
          (10) Repatriation loans.--For ``Repatriation Loans'', 
        $1,200,000 for the fiscal year 1998 and $1,200,000 for the 
        fiscal year 1999, for administrative expenses.

SEC. 1102. INTERNATIONAL ORGANIZATIONS, PROGRAMS, AND CONFERENCES.

  (a) Assessed Contributions to International Organizations.--There are 
authorized to be appropriated for ``Contributions to International 
Organizations'', $960,389,000 for the fiscal year 1998 and $987,590,000 
for the fiscal year 1999 for the Department of State to carry out the 
authorities, functions, duties, and responsibilities in the conduct of 
the foreign affairs of the United States with respect to international 
organizations and to carry out other authorities in law consistent with 
such purposes.
  (b) Voluntary Contributions to International Organizations.--
          (1) Authorization of appropriations.--There are authorized to 
        be appropriated for ``Voluntary Contributions to International 
        Organizations'', $199,725,000 for the fiscal year 1998 and 
        $199,725,000 for the fiscal year 1999.
          (2) Limitations.--
                  (A) World food program.--Of the amounts authorized to 
                be appropriated under paragraph (1), $5,000,000 for the 
                fiscal year 1998 and $5,000,000 for the fiscal year 
                1999 are authorized to be appropriated only for a 
                United States contribution to the World Food Program.
                  (B) United nations voluntary fund for victims of 
                torture.--Of the amount authorized to be appropriated 
                under paragraph (1), $3,000,000 for the fiscal year 
                1998 and $3,000,000 for the fiscal year 1999 are 
                authorized to be appropriated only for a United States 
                contribution to the United Nations Voluntary Fund for 
                Victims of Torture.
                  (C) International program on the elimination of child 
                labor.--Of the amounts authorized to be appropriated 
                under paragraph (1), $10,000,000 for the fiscal year 
                1998 and $10,000,000 for the fiscal year 1999 are 
                authorized to be appropriated only for a United States 
                contribution to the International Labor Organization 
                for the activities of the International Program on the 
                Elimination of Child Labor.
          (3) Availability of funds.--Amounts authorized to be 
        appropriated under paragraph (1) are authorized to remain 
        available until expended.
  (c) Assessed Contributions for International Peacekeeping 
Activities.--There are authorized to be appropriated for 
``Contributions for International Peacekeeping Activities'', 
$240,000,000 for the fiscal year 1998 and $240,000,000 for the fiscal 
year 1999 for the Department of State to carry out the authorities, 
functions, duties, and responsibilities in the conduct of the foreign 
affairs of the United States with respect to international peacekeeping 
activities and to carry out other authorities in law consistent with 
such purposes.
  (d) Voluntary Contributions to Peacekeeping Operations.--There are 
authorized to be appropriated for ``Peacekeeping Operations'', 
$87,600,000 for the fiscal year 1998 and $67,000,000 for the fiscal 
year 1999 for the Department of State to carry out section 551 of 
Public Law 87-195.
  (e) International Conferences and Contingencies.--There are 
authorized to be appropriated for ``International Conferences and 
Contingencies'', $3,000,000 for the fiscal year 1998 and $3,000,000 for 
the fiscal year 1999 for the Department of State to carry out the 
authorities, functions, duties, and responsibilities in the conduct of 
the foreign affairs of the United States with respect to international 
conferences and contingencies and to carry out other authorities in law 
consistent with such purposes.
  (f) Foreign Currency Exchange Rates.--In addition to amounts 
otherwise authorized to be appropriated by subsections (a) and (b) of 
this section, there are authorized to be appropriated such sums as may 
be necessary for each of the fiscal years 1998 and 1999 to offset 
adverse fluctuations in foreign currency exchange rates. Amounts 
appropriated under this subsection shall be available for obligation 
and expenditure only to the extent that the Director of the Office of 
Management and Budget determines and certifies to Congress that such 
amounts are necessary due to such fluctuations.
  (g) Limitation on United States Voluntary Contributions to United 
Nations Development Program.--
          (1) Of the amounts made available for fiscal years 1998 and 
        1999 for United States voluntary contributions to the United 
        Nations Development Program an amount equal to the amount the 
        United Nations Development Program will spend in Burma during 
        each fiscal year shall be withheld unless during such fiscal 
        year, the President submits to the appropriate congressional 
        committees the certification described in paragraph (2).
          (2) The certification referred to in paragraph (1) is a 
        certification by the President that all programs and activities 
        of the United Nations Development Program (including United 
        Nations Development Program--Administered Funds) in Burma--
                  (A) are focused on eliminating human suffering and 
                addressing the needs of the poor;
                  (B) are undertaken only through international or 
                private voluntary organizations that have been deemed 
                independent of the State Law and Order Restoration 
                Council (SLORC), after consultation with the leadership 
                of the National League for Democracy and the leadership 
                of the National Coalition Government of the Union of 
                Burma;
                  (C) provide no financial, political, or military 
                benefit to the SLORC; and
                  (D) are carried out only after consultation with the 
                leadership of the National League for Democracy and the 
                leadership of the National Coalition Government of the 
                Union of Burma.

SEC. 1103. INTERNATIONAL COMMISSIONS.

  The following amounts are authorized to be appropriated under 
``International Commissions'' for the Department of State to carry out 
the authorities, functions, duties, and responsibilities in the conduct 
of the foreign affairs of the United States and for other purposes 
authorized by law:
          (1) International boundary and water commission, united 
        states and mexico.--For ``International Boundary and Water 
        Commission, United States and Mexico''--
                  (A) for ``Salaries and Expenses'' $18,490,000 for the 
                fiscal year 1998 and $18,490,000 for the fiscal year 
                1999; and
                  (B) for ``Construction'' $6,493,000 for the fiscal 
                year 1998 and $6,493,000 for the fiscal year 1999.
          (2) International boundary commission, united states and 
        canada.--For ``International Boundary Commission, United States 
        and Canada'', $785,000 for the fiscal year 1998 and $785,000 
        for the fiscal year 1999.
          (3) International joint commission.--For ``International 
        Joint Commission'', $3,225,000 for the fiscal year 1998 and 
        $3,225,000 for the fiscal year 1999.
          (4) International fisheries commissions.--For ``International 
        Fisheries Commissions'', $14,549,000 for the fiscal year 1998 
        and $14,549,000 for the fiscal year 1999.

SEC. 1104. MIGRATION AND REFUGEE ASSISTANCE.

  (a) Migration and Refugee Assistance.--
          (1) Authorization of appropriations.--There are authorized to 
        be appropriated for ``Migration and Refugee Assistance'' for 
        authorized activities, $623,000,000 for the fiscal year 1998 
        and $623,000,000 for the fiscal year 1999.
          (2) Limitation Regarding Tibetan Refugees in India and 
        Nepal.--Of the amounts authorized to be appropriated in 
        paragraph (1), $1,000,000 for the fiscal year 1998 and 
        $1,000,000 for the fiscal year 1999 are authorized to be 
        available only for humanitarian assistance, including but not 
        limited to food, medicine, clothing, and medical and vocational 
        training, to Tibetan refugees in India and Nepal who have fled 
        Chinese-occupied Tibet.
  (b) Refugees Resettling in Israel.--There are authorized to be 
appropriated $80,000,000 for the fiscal year 1998 and $80,000,000 for 
the fiscal year 1999 for assistance for refugees resettling in Israel 
from other countries.
  (c) Humanitarian Assistance for Displaced Burmese.--There are 
authorized to be appropriated $1,500,000 for the fiscal year 1998 and 
$1,500,000 for the fiscal year 1999 for humanitarian assistance, 
including but not limited to food, medicine, clothing, and medical and 
vocational training, to persons displaced as a result of civil conflict 
in Burma, including persons still within Burma.
  (d) Availability of Funds.--Funds appropriated pursuant to this 
section are authorized to be available until expended.

SEC. 1105. ASIA FOUNDATION.

  There are authorized to be appropriated for ``Asia Foundation'', 
$10,000,000 for the fiscal year 1998 and $10,000,000 for the fiscal 
year 1999 for the Department of State to carry out the authorities, 
functions, duties, and responsibilities in the conduct of the foreign 
affairs of the United States with respect to Asia Foundation and to 
carry out other authorities in law consistent with such purposes.

SEC. 1106. UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL 
                    PROGRAMS.

  The following amounts are authorized to be appropriated to carry out 
international information activities and educational and cultural 
exchange programs under the United States Information and Educational 
Exchange Act of 1948, the Mutual Educational and Cultural Exchange Act 
of 1961, Reorganization Plan Number 2 of 1977, the United States 
International Broadcasting Act of 1994, the Radio Broadcasting to Cuba 
Act, the Television Broadcasting to Cuba Act, the Board for 
International Broadcasting Act, the North/South Center Act of 1991, the 
National Endowment for Democracy Act, and to carry out other 
authorities in law consistent with such purposes:
          (1) Salaries and expenses.--For ``Salaries and Expenses'', 
        $434,097,000 for the fiscal year 1998 and $434,097,000 for the 
        fiscal year 1999.
          (2) Technology fund.--For ``Technology Fund'' for the United 
        States Information Agency, $6,350,000 for the fiscal year 1998 
        and $6,350,000 for the fiscal year 1999.
          (3) Educational and cultural exchange programs.--
                  (A) Fulbright academic exchange programs.--For the 
                ``Fulbright Academic Exchange Programs'', $94,236,000 
                for the fiscal year 1998 and $94,236,000 for the fiscal 
                year 1999.
                  (B) South pacific exchanges.--For the ``South Pacific 
                Exchanges'', $500,000 for the fiscal year 1998 and 
                $500,000 for the fiscal year 1999.
                  (C) East timorese scholarships.--For the ``East 
                Timorese Scholarships'', $500,000 for the fiscal year 
                1998 and $500,000 for the fiscal year 1999.
                  (D) Tibetan exchanges.--For the ``Educational and 
                Cultural Exchanges with Tibet'' under section 236 of 
                the Foreign Relations Authorization Act, Fiscal Years 
                1994 and 1995 (Public Law 103-236), $500,000 for the 
                fiscal year 1998 and $500,000 for the fiscal year 1999.
                  (E) Other programs.--For ``Hubert H. Humphrey 
                Fellowship Program'', ``Edmund S. Muskie Fellowship 
                Program'', ``International Visitors Program'', ``Mike 
                Mansfield Fellowship Program'', ``Claude and Mildred 
                Pepper Scholarship Program of the Washington Workshops 
                Foundation'', ``Citizen Exchange Programs'', 
                ``Congress-Bundestag Exchange Program'', ``Newly 
                Independent States and Eastern Europe Training'', and 
                ``Institute for Representative Government'', 
                $97,995,000 for the fiscal year 1998 and $97,995,000 
                for the fiscal year 1999.
          (4) International broadcasting activities.--
                  (A) Authorization of appropriations.--For 
                ``International Broadcasting Activities'', $334,655,000 
                for the fiscal year 1998, and $334,655,000 for the 
                fiscal year 1999.
                  (B) Allocation.--Of the amounts authorized to be 
                appropriated under subparagraph (A), the Director of 
                the United States Information Agency and the Board of 
                Broadcasting Governors shall seek to ensure that the 
                amounts made available for broadcasting to nations 
                whose people do not fully enjoy freedom of expression 
                do not decline in proportion to the amounts made 
                available for broadcasting to other nations.
          (5) Radio construction.--For ``Radio Construction'', 
        $30,000,000 for the fiscal year 1998, and $30,000,000 for the 
        fiscal year 1999.
          (6) Radio free asia.--For ``Radio Free Asia'', $10,000,000 
        for the fiscal year 1998 and $10,000,000 for the fiscal year 
        1999.
          (7) Broadcasting to cuba.--For ``Broadcasting to Cuba'', 
        $22,095,000 for the fiscal year 1998 and $22,095,000 for the 
        fiscal year 1999.
          (8) Center for cultural and technical interchange between 
        east and west.--For ``Center for Cultural and Technical 
        Interchange between East and West'', $10,000,000 for the fiscal 
        year 1998 and $10,000,000 for the fiscal year 1999.
          (9) National endowment for democracy.--For ``National 
        Endowment for Democracy'', $30,000,000 for the fiscal year 1998 
        and $30,000,000 for the fiscal year 1999.
          (10) Center for cultural and technical interchange between 
        north and south.--For ``Center for Cultural and Technical 
        Interchange between North and South'', $2,000,000 for the 
        fiscal year 1998 and $2,000,000 for the fiscal year 1999.

SEC. 1107. UNITED STATES ARMS CONTROL AND DISARMAMENT.

  There are authorized to be appropriated to carry out the purposes of 
the Arms Control and Disarmament Act--
          (1) $44,000,000 for the fiscal year 1998 and $44,000,000 for 
        the fiscal year 1999; and
          (2) such sums as may be necessary for each of the fiscal 
        years 1998 and 1999 for increases in salary, pay, retirement, 
        other employee benefits authorized by law, and to offset 
        adverse fluctuations in foreign currency exchange rates.

       TITLE XII--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES

                 CHAPTER 1--AUTHORITIES AND ACTIVITIES

SEC. 1201. REVISION OF DEPARTMENT OF STATE REWARDS PROGRAM.

  (a) In General.--Section 36 of the State Department Basic Authorities 
Act of 1956 (22 U.S.C. 2708) is amended to read as follows:

``SEC. 36. DEPARTMENT OF STATE REWARDS PROGRAM.

  ``(a) Establishment.--(1) There is established a program for the 
payment of rewards to carry out the purposes of this section.
  ``(2) The rewards program established by this section shall be 
administered by the Secretary of State, in consultation, where 
appropriate, with the Attorney General.
  ``(b) Purpose.--(1) The rewards program established by this section 
shall be designed to assist in the prevention of acts of international 
terrorism, international narcotics trafficking, and other related 
criminal acts.
  ``(2) At the sole discretion of the Secretary of State and in 
consultation, as appropriate, with the Attorney General, the Secretary 
may pay a reward to any individual who furnishes information leading 
to--
          ``(A) the arrest or conviction in any country of any 
        individual for the commission of an act of international 
        terrorism against a United States person or United States 
        property;
          ``(B) the arrest or conviction in any country of any 
        individual conspiring or attempting to commit an act of 
        international terrorism against a United States person or 
        United States property;
          ``(C) the arrest or conviction in any country of any 
        individual for committing, primarily outside the territorial 
        jurisdiction of the United States, any narcotics-related 
        offense if that offense involves or is a significant part of 
        conduct that involves--
                  ``(i) a violation of United States narcotics laws and 
                which is such that the individual would be a major 
                violator of such laws; or
                  ``(ii) the killing or kidnapping of--
                          ``(I) any officer, employee, or contract 
                        employee of the United States Government while 
                        such individual is engaged in official duties, 
                        or on account of that individual's official 
                        duties, in connection with the enforcement of 
                        United States narcotics laws or the 
                        implementing of United States narcotics control 
                        objectives; or
                          ``(II) a member of the immediate family of 
                        any such individual on account of that 
                        individual's official duties, in connection 
                        with the enforcement of United States narcotics 
                        laws or the implementing of United States 
                        narcotics control objectives; or
                  ``(iii) an attempt or conspiracy to commit any of the 
                acts described in clause (i) or (ii); or
          ``(D) the arrest or conviction in any country of any 
        individual aiding or abetting in the commission of an act 
        described in subparagraphs (A) through (C); or
          ``(E) the prevention, frustration, or favorable resolution of 
        an act described in subparagraphs (A) through (C).
  ``(c) Coordination.--(1) To ensure that the payment of rewards 
pursuant to this section does not duplicate or interfere with the 
payment of informants or the obtaining of evidence or information, as 
authorized to the Department of Justice, the offering, administration, 
and payment of rewards under this section, including procedures for--
          ``(A) identifying individuals, organizations, and offenses 
        with respect to which rewards will be offered;
          ``(B) the publication of rewards;
          ``(C) offering of joint rewards with foreign governments;
          ``(D) the receipt and analysis of data; and
          ``(E) the payment and approval of payment
shall be governed by procedures developed by the Secretary of State, in 
consultation with the Attorney General.
  ``(2) Before making a reward under this section in a matter over 
which there is Federal criminal jurisdiction, the Secretary of State 
shall advise and consult with the Attorney General.
  ``(d) Funding.--(1) There is authorized to be appropriated to the 
Department of State from time to time such amounts as may be necessary 
to carry out the purposes of this section, notwithstanding section 102 
of the Foreign Relations Authorization Act, Fiscal Years 1986 and 1987 
(Public Law 99-93).
  ``(2) No amount of funds may be appropriated which, when added to the 
amounts previously appropriated but not yet obligated, would cause such 
amounts to exceed $15,000,000.
  ``(3) To the maximum extent practicable, funds made available to 
carry out this section should be distributed equally for the purpose of 
preventing acts of international terrorism and for the purpose of 
preventing international narcotics trafficking.
  ``(4) Amounts appropriated to carry out the purposes of this section 
shall remain available until expended.
  ``(e) Limitation and Certification.--(1) A reward under this section 
may not exceed $2,000,000.
  ``(2) A reward under this section of more than $100,000 may not be 
made without the approval of the President or the Secretary of State.
  ``(3) Any reward granted under this section shall be approved and 
certified for payment by the Secretary of State.
  ``(4) The authority of paragraph (2) may not be delegated to any 
other officer or employee of the United States Government.
  ``(5) If the Secretary determines that the identity of the recipient 
of a reward or of the members of the recipient's immediate family must 
be protected, the Secretary may take such measures in connection with 
the payment of the reward as he considers necessary to effect such 
protection.
  ``(f) Ineligibility.--An officer or employee of any governmental 
entity who, while in the performance of his or her official duties, 
furnishes information described in subsection (b) shall not be eligible 
for a reward under this section.
  ``(g) Reports.--(1) Not later than 30 days after paying any reward 
under this section, the Secretary of State shall submit a report to the 
appropriate congressional committees with respect to such reward. The 
report, which may be submitted on aclassified basis if necessary, shall 
specify the amount of the reward paid, to whom the reward was paid, and 
the acts with respect to which the reward was paid. The report shall 
also discuss the significance of the information for which the reward 
was paid in dealing with those acts.
  ``(2) Not later than 60 days after the end of each fiscal year, the 
Secretary of State shall submit an annual report to the appropriate 
congressional committees with respect to the operation of the rewards 
program authorized by this section. Such report shall provide 
information on the total amounts expended during such fiscal year to 
carry out the purposes of this section, including amounts spent to 
publicize the availability of rewards.
  ``(h) Publication Regarding Rewards Offered by Foreign Governments.--
Notwithstanding any other provision of this section, at the sole 
discretion of the Secretary of State the resources of the rewards 
program authorized by this section, shall be available for the 
publication of rewards offered by foreign governments regarding acts of 
international terrorism which do not involve United States persons or 
property or a violation of the narcotics laws of the United States.
  ``(i) Definitions.--As used in this section--
          ``(1) the term `appropriate congressional committees' means 
        the Committee on International Relations of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate;
          ``(2) the term `act of international terrorism' includes, but 
        is not limited to--
                  ``(A) any act substantially contributing to the 
                acquisition of unsafeguarded special nuclear material 
                (as defined in section 830(8) of the Nuclear 
                Proliferation Prevention Act of 1994) or any nuclear 
                explosive device (as defined in section 830(4) of that 
                Act) by an individual, group, or non-nuclear weapon 
                state (as defined in section 830(5) of that Act); and
                  ``(B) any act, as determined by the Secretary of 
                State, which materially supports the conduct of 
                international terrorism, including the counterfeiting 
                of United States currency or the illegal use of other 
                monetary instruments by an individual, group, or 
                country supporting international terrorism as 
                determined for purposes of section 6(j) of the Export 
                Administration Act of 1979;
          ``(3) the term `United States narcotics laws' means the laws 
        of the United States for the prevention and control of illicit 
        traffic in controlled substances (as such term is defined for 
        purposes of the Controlled Substances Act); and
          ``(4) the term `member of the immediate family' includes--
                  ``(A) a spouse, parent, brother, sister, or child of 
                the individual;
                  ``(B) a person to whom the individual stands in loco 
                parentis; and
                  ``(C) any other person living in the individual's 
                household and related to the individual by blood or 
                marriage.
  ``(j) Determinations of the Secretary.--A determination made by the 
Secretary of State under this section shall be final and conclusive and 
shall not be subject to judicial review.''.
  (b) Use of Earnings From Frozen Assets for Program.--
          (1) Amounts to be made available.--Up to 2 percent of the 
        earnings accruing, during periods beginning October 1, 1998, on 
        all assets of foreign countries blocked by the President 
        pursuant to the International Emergency Powers Act (50 U.S.C. 
        1701 and following) shall be available, subject to 
        appropriations Acts, to carry out section 36 of the State 
        Department Basic Authorities Act, as amended by this section, 
        except that the limitation contained in subsection (d)(2) of 
        such section shall not apply to amounts made available under 
        this paragraph.
          (2) Control of funds by the president.--The President is 
        authorized and directed to take possession and exercise full 
        control of so much of the earnings described in paragraph (1) 
        as are made available under such paragraph.

SEC. 1202. FOREIGN SERVICE NATIONAL SEPARATION LIABILITY TRUST FUND.

  Section 151 of the Foreign Relations Authorization Act, Fiscal Years 
1992 and 1993 (22 U.S.C. 4012a) is amended by adding at the end the 
following new subsection:
  ``(e) Interest.--The Secretary of the Treasury shall deposit amounts 
in the fund in interest-bearing accounts. Any interest earned on such 
deposits may be credited to the fund without further appropriation.''.

SEC. 1203. CAPITAL INVESTMENT FUND.

  Section 135 of the Foreign Relations Authorization Act, Fiscal Years 
1994 and 1995 (22 U.S.C. 2684a) is amended--
          (1) in subsection (a) by inserting ``and enhancement'' after 
        ``procurement'';
          (2) in subsection (c) by striking ``are authorized to'' and 
        inserting ``shall'';
          (3) in subsection (d) by striking ``for expenditure to 
        procure capital equipment and information technology'' and 
        inserting in lieu thereof ``for purposes of subsection (a)''; 
        and
          (4) by amending subsection (e) to read as follows:
  ``(e) Reprogramming Procedures.--Funds credited to the Capital 
Investment Fund shall not be available for obligation or expenditure 
except in compliance with the procedures applicable to reprogrammings 
under section 34 of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2710).''.

SEC. 1204. INTERNATIONAL CENTER RESERVE FUNDS.

  Section 5 of the International Center Act (Public Law 90-553) is 
amended by adding at the end the following new sentence: ``Amounts in 
the reserve may be deposited in interest-bearing accounts and the 
Secretary may retain for the purposes set forth in this section any 
interest earned on such deposits without returning such interest to the 
Treasury of the United States and without further appropriation.''.

SEC. 1205. PROCEEDS OF SALE OF FOREIGN PROPERTIES.

  Section 9 of the Foreign Service Buildings Act, 1926 (22 U.S.C. 300) 
is amended by adding at the end the following new subsection:
  ``(d) Any proceeds held or deposited pursuant to this section may be 
deposited in interest bearing accounts. The Secretary of State may 
retain interest earned on such deposits for the purposes of this 
section without returning such interest to the Treasury of the United 
States and interest earned may be obligated and expended without 
further appropriation.''.

SEC. 1206. REDUCTION OF REPORTING.

  (a) Report on Foreign Service Personnel in Each Agency.--Section 
601(c)(4) of the Foreign Service Act of 1980 (22 U.S.C. 4001(c)(4)) is 
repealed.
  (b) Report on Participation by U.S. Military Personnel Abroad in U.S. 
Elections.--Section 101(b)(6) of the Uniformed and Overseas Citizens 
Absentee Voting Act (42 U.S.C. 1973ff(b)(6)) is amended by striking 
``of voter participation'' and inserting ``of uniformed services voter 
participation, a general assessment of overseas nonmilitary 
participation,''.
  (c) Country Reports on Economic Policy and Trade Practices.--Section 
2202 of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 
4711) is repealed.
  (d) Annual Report on Social and Economic Growth.--Section 574 of the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1996 (Public Law 104-107) is repealed.
  (e) Report.--Section 308 of the Chemical and Biological Weapons and 
Warfare Elimination Act of 1991 (22 U.S.C. 5606) is repealed.

SEC. 1207. CONTRACTING FOR LOCAL GUARDS SERVICES OVERSEAS.

  Section 136(c) of the Foreign Relations Authorization Act, Fiscal 
Years 1990 and 1991 (22 U.S.C. 4864(c)) is amended--
          (1) by amending paragraph (3) to read as follows:
          ``(3) in evaluating proposals for such contracts, award 
        contracts to the technically acceptable firm offering the 
        lowest evaluated price, except that proposals of United States 
        persons and qualified United States joint venture persons (as 
        defined in subsection (d)) shall be evaluated by reducing the 
        bid price by 5 percent;'';
          (2) by inserting ``and'' at the end of paragraph (5);
          (3) by striking ``; and'' at the end of paragraph (6) and 
        inserting a period; and
          (4) by striking paragraph (7).

SEC. 1208. PREADJUDICATION OF CLAIMS.

  Section 4(a) of the International Claims Settlement Act (22 U.S.C. 
1623(a)) is amended--
          (1) in the first sentence by striking ``1948, or'' and 
        inserting ``1948,'';
          (2) by inserting before the period at the end of the first 
        sentence ``, or included in a category of claims against a 
        foreign government which is referred to the Commission by the 
        Secretary of State''; and
          (3) in paragraph (1) by striking ``the applicable'' and 
        inserting ``any applicable''.

SEC. 1209. EXPENSES RELATING TO CERTAIN INTERNATIONAL CLAIMS AND 
                    PROCEEDINGS.

  (a) Recovery of Certain Expenses.--The Department of State 
Appropriation Act of 1937 (49 Stat. 1321, 22 U.S.C. 2661) is amended in 
the fifth undesignatedparagraph under the heading entitled 
``international fisheries commission'' by striking ``extraordinary''.
  (b) Procurement of Services.--Section 38(c) of the State Department 
Basic Authorities Act of 1956 (22 U.S.C. 2710(c)) is amended in the 
first sentence by inserting ``personal and'' before ``other support 
services''.

SEC. 1210. ESTABLISHMENT OF FEE ACCOUNT AND PROVIDING FOR PASSPORT 
                    INFORMATION SERVICES.

  (a) Disposition of Fees.--Amounts collected by the Department of 
State pursuant to section 281 of the Immigration and Nationality Act (8 
U.S.C. 1351), section 1 of the Passport Act of June 4, 1920 (22 U.S.C. 
214), section 16 of the Act of August 18, 1856 (22 U.S.C. 4219), and 
section 9701 of title 31, United States Code, shall be deposited in a 
special fund of the Treasury.
  (b) Use of Funds.--Subject to subsections (d) and (e), amounts 
collected and deposited in the special fund in the Treasury pursuant to 
subsection (a) shall be available to the extent and in such amounts as 
are provided in advance in appropriations Acts for the following 
purposes:
          (1) To pay all necessary expenses of the Department of State 
        and the Foreign Service, including expenses authorized by the 
        State Department Basic Authorities Act of 1956.
          (2) Representation to certain international organizations in 
        which the United States participates pursuant to treaties 
        ratified pursuant to the advice and consent of the Senate or 
        specific Acts of Congress.
          (3) Acquisition by exchange or purchase of passenger motor 
        vehicles as authorized by section 1343 of title 31, United 
        States Code, section 201(c) of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 481(c)), and 
        section 7 of the State Department Basic Authorities Act (22 
        U.S.C. 2674).
          (4) Expenses of general administration of the Department of 
        State.
          (5) To carry out the Foreign Service Buildings Act of 1926 
        (22 U.S.C. 292-300) and the Diplomatic Security Construction 
        Program as authorized by title IV of the Omnibus Diplomatic 
        Security and Antiterrorism Act of 1986 (22 U.S.C. 4851).
  (c) Availability of Funds.--Amounts collected and deposited in the 
special fund pursuant to subsection (a) are authorized to remain 
available until expended.
  (d) Limitation.--For any fiscal year, any amount deposited in the 
special fund under subsection (a) that exceeds $455,000,000 is 
authorized to be made available only if a notification is submitted in 
compliance with the procedures applicable to a reprogramming of funds 
under section 34 of the State Department Basic Authorities Act of 1956.
  (e) Passport Information Services.--For each of the fiscal years 1998 
and 1999, $5,000,000 of the amounts available in the fund shall be 
available only for the purpose of providing passport information 
without charge to citizens of the United States, including--
          (1) information about who is eligible to receive a United 
        States passport and how and where to apply;
          (2) information about the status of pending applications; and
          (3) names, addresses, and telephone numbers of State and 
        Federal officials who are authorized to provide passport 
        information in cooperation with the Department of State.

SEC. 1211. ESTABLISHMENT OF MACHINE READABLE FEE ACCOUNT.

  Section 140(a) of the Foreign Relations Authorization Act, Fiscal 
Years 1994 and 1995 (Public Law 103-236) is amended--
          (1) by redesignating paragraph (4) as paragraph (6);
          (2) by striking paragraph (5);
          (3) by striking paragraphs (2) and (3) and inserting the 
        following:
          ``(2) Amounts collected under the authority of paragraph (1) 
        shall be deposited in a special fund of the Treasury.
          ``(3) Subject to paragraph (5), fees deposited in the special 
        fund pursuant to paragraph (2) shall be available to the extent 
        and in such amounts as are provided in advance in 
        appropriations Acts for costs of the Department of State's 
        border security program, including the costs of--
                  ``(A) installation and operation of the machine 
                readable visa and automated name-check process;
                  ``(B) improving the quality and security of the 
                United States passport;
                  ``(C) passport and visa fraud investigations; and
                  ``(D) the technological infrastructure to support and 
                operate the programs referred to in subparagraphs (A) 
                through (C).
          ``(4) Amounts deposited pursuant to paragraph (2) shall 
        remain available for obligation until expended.
          ``(5) For any fiscal year, any amount collected pursuant to 
        the authority of paragraph (1) that exceeds $140,000,000 is 
        authorized to be made available only if a notification is 
        submitted in compliance with the procedures applicable to a 
        reprogramming of funds under section 34 of the State Department 
        Basic Authorities Act of 1956.''.

SEC. 1212. RETENTION OF ADDITIONAL DEFENSE TRADE CONTROLS REGISTRATION 
                    FEES.

  Section 45(a) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2717(a)) is amended--
          (1) by striking ``$700,000 of the'' and inserting ``all'';
          (2) at the end of paragraph (1) by striking ``and'';
          (3) in paragraph (2)--
                  (A) by striking ``functions'' and inserting 
                ``functions, including compliance and enforcement 
                activities,''; and
                  (B) by striking the period at the end and inserting 
                ``; and''; and
          (4) by adding at the end the following new paragraph (3):
          ``(3) the enhancement of defense trade export compliance and 
        enforcement activities to include compliance audits of United 
        States and foreign parties, the conduct of administrative 
        proceedings, end-use monitoring of direct commercial arms sales 
        and transfer, and cooperation in criminal proceedings related 
        to defense trade export controls.''.

SEC. 1213. TRAINING.

  (a) Institute for Training.--Section 701 of the Foreign Service Act 
of 1980 (22 U.S.C. 4021) is amended--
          (1) by redesignating subsection (d)(4) as subsection (g); and
          (2) by inserting after paragraph (3) of subsection (d) the 
        following new subsections:
  ``(e)(1) The Secretary of State may, in the discretion of the 
Secretary, provide appropriate training and related services through 
the institution to employees of United States companies engaged in 
business abroad, and to the families of such employees.
  ``(2) In the case of any company under contract to provide services 
to the Department of State, the Secretary of State is authorized to 
provide job-related training and related services to any company 
employee who is performing such services.
  ``(3) Training under this subsection shall be on a reimbursable or 
advance-of-funds basis. Such reimbursements or advances shall be 
credited to the currently available applicable appropriation account.
  ``(4) Training and related services under this subsection is 
authorized only to the extent that it will not interfere with the 
institution's primary mission of training employees of the Department 
and of other agencies in the field of foreign relations.
  ``(f)(1) The Secretary of State is authorized to provide on a 
reimbursable basis training programs to Members of Congress or the 
judiciary.
  ``(2) Congressional staff members and employees of the judiciary may 
participate on a reimbursable, space-available basis in training 
programs offered by the institution.
  ``(3) Reimbursements collected under this subsection shall be 
credited to the currently available applicable appropriation account.
  ``(4) Training under this subsection is authorized only to the extent 
that it will not interfere with the institution's primary mission of 
training employees of the Department of State and of other agencies in 
the field of foreign relations.''.
  (b) Fees for Use of National Foreign Affairs Training Center.--The 
State Department Basic Authorities Act of 1956 (22 U.S.C. 2669 et seq.) 
is amended by adding after section 52 the following new section:

``SEC. 53. FEES FOR USE OF THE NATIONAL FOREIGN AFFAIRS TRAINING 
                    CENTER.

  ``The Secretary is authorized to charge a fee for use of the National 
Foreign Affairs Training Center Facility of the Department of State. 
Funds collected under the authority of this section, including 
reimbursements, surcharges, and fees, shall be deposited as an 
offsetting collection to any Department of State appropriation to 
recover the costs of such use and shall remain available for obligation 
until expended.''.

SEC. 1214. RECOVERY OF COSTS OF HEALTH CARE SERVICES.

  (a) Authorities.--Section 904 of the Foreign Service Act of 1980 (22 
U.S.C. 4084) is amended--
          (1) in subsection (a)--
                  (A) by striking ``and'' after ``employees,'', and
                  (B) by inserting before the period ``, and (for care 
                provided abroad) such other persons as are designated 
                by the Secretary of State'';
          (2) in subsection (d), by inserting ``subject to subsections 
        (g) through (i)'' before ``the Secretary''; and
          (3) by adding at the end the following new subsections:
  ``(g)(1)(A) In the case of a covered beneficiary who is provided 
health care under this section and who is enrolled in a covered health 
benefits plan of a third-party payer, the United States shall have the 
right to collect from the third-party payer a reasonable charge amount 
for the care to the extent that the payment would be made under such 
plan for such care under the conditions specified in paragraph (2) if a 
claim were submitted by or on behalf of the covered beneficiary.
  ``(B) Such a covered beneficiary is not required to pay any 
deductible, copayment, or other cost-sharing under the covered health 
benefits plan or under this section for health care provided under this 
section.
  ``(2) With respect to health care provided under this section to a 
covered beneficiary, for purposes of carrying out paragraph (1)--
          ``(A) the reasonable charge amount (as defined in paragraph 
        (9)(C)) shall be treated by the third-party payer as the 
        payment basis otherwise allowable for the care under the plan;
          ``(B) under regulations, if the covered health benefits plan 
        restricts or differentiates in benefit payments based on 
        whether a provider of health care has a participation agreement 
        with the third-party payer, the Secretary shall be treated as 
        having such an agreement as results in the highest level of 
        payment under this subsection;
          ``(C) no provision of the health benefit plan having the 
        effect of excluding from coverage or limiting payment of 
        charges for certain care shall operate to prevent collection 
        under subsection (a), including (but not limited to) any 
        provision that limits coverage or payment on the basis that--
                  ``(i) the care was provided outside the United 
                States,
                  ``(ii) the care was provided by a governmental 
                entity,
                  ``(iii) the covered beneficiary (or any other person) 
                has no obligation to pay for the care,
                  ``(iv) the provider of the care is not licensed to 
                provide the care in the United States or other 
                location,
                  ``(v) a condition of coverage relating to utilization 
                review, prior authorization, or similar utilization 
                control has not been met, or
                  ``(vi) in the case that drugs were provided, the 
                provision of the drugs for any indicated purpose has 
                not been approved by the Federal Food, Drug, and 
                Cosmetic Administration;
          ``(D) if the covered health benefits plan contains a 
        requirement for payment of a deductible, copayment, or similar 
        cost-sharing by the beneficiary--
                  ``(i) the beneficiary's not having paid such cost-
                sharing with respect to the care shall not preclude 
                collection under this section, and
                  ``(ii) the amount the United States may collect under 
                this section shall be reduced by application of the 
                appropriate cost-sharing;
          ``(E) amounts that would be payable by the third-party payer 
        under this section but for the application of a deductible 
        under subparagraph (D)(ii) shall be counted towards such 
        deductible notwithstanding that under paragraph (1)(B) the 
        individual is not charged for the care and did not pay an 
        amount towards such care; and
          ``(F) the Secretary may apply such other provisions as may be 
        appropriate to carry out this section in an equitable manner.
  ``(3) In exercising authority under paragraph (1)--
          ``(A) the United States shall be subrogated to any right or 
        claim that the covered beneficiary may have against a third-
        party payer;
          ``(B) the United States may institute and prosecute legal 
        proceedings against a third-party payer to enforce a right of 
        the United States under this section; and
          ``(C) the Secretary may compromise, settle, or waive a claim 
        of the United States under this section.
  ``(4) No law of any State, or of any political subdivision of a 
State, shall operate to prevent or hinder collection by the United 
States under this section.
  ``(5) If collection is sought from a third-party payer for health 
care furnished a covered beneficiary under this section, under 
regulations medical records of the beneficiary shall be made available 
for inspection and review by representatives of the third-party payer 
for the sole purpose of permitting the third-party payer to verify, 
consistent with this subsection that--
          ``(A) the care for which recovery or collection is sought 
        were furnished to the beneficiary; and
          ``(B) except as otherwise provided in this subsection, the 
        provision of such care to the beneficiary meets criteria 
        generally applicable under the covered health benefits plan.
  ``(6) The Secretary shall establish (and periodically update) a 
schedule of reasonable charge amounts for health care provided under 
this section. The amount under such schedule for health care shall be 
based on charges or fee schedule amounts recognized by third-party 
payers under covered health benefits plans for payment purposes for 
similar health care services furnished in the Metropolitan Washington, 
District of Columbia, area.
  ``(7) The Secretary shall establish a procedure under which a covered 
beneficiary may elect to have subsection (h) apply instead of this 
subsection with respect to some or all health care provided to the 
beneficiary under this section.
  ``(8) Amounts collected under this subsection, under subsection (h), 
or under any authority referred to in subsection (i), from a third-
party payer or from any other payer shall be deposited as an offsetting 
collection to any Department of State appropriation and shall remain 
available until expended.
  ``(9) For purposes of this section:
          ``(A) The term `covered beneficiary' means a member or 
        employee (or family member of such a member of employee) 
        described in subsection (a) who is enrolled under a covered 
        health benefits plan.
          ``(B)(i) Subject to clause (ii), the term `covered health 
        benefits plan' means a health benefits plan offered under the 
        Federal Employees Health Benefits Program under chapter 89 of 
        title 5, United States Code.
          ``(ii) Such term does not include such a health benefits plan 
        (such as a plan of a staff-model health maintenance 
        organization) as the Secretary determines pursuant to 
        regulations to be structured in a manner that impedes the 
        application of this subsection to individuals enrolled under 
        the plan. To the extent practicable, the Secretary shall seek 
        to disseminate to members of the Service and designated 
        employees described in subsection (a) who are eligible to 
        receive health care under this section the names of plans 
        excluded under this clause.
          ``(C) The term `reasonable charge amount' means, with respect 
        to health care provided under this section, the amount for such 
        care specified in the schedule established under paragraph (6).
          ``(D) The term `third-party payer' means an entity that 
        offers a covered health benefits plan.
  ``(h)(1) In the case of an individual who--
          ``(A) receives health care pursuant to this section; and
          ``(B)(i) is not a covered beneficiary (including by virtue of 
        enrollment only in a health benefits plan excluded under 
        subsection (g)(9)(B)(ii)), or
          ``(ii) is such a covered beneficiary and has made an election 
        described in subsection (g)(7) with respect to such care,
the Secretary is authorized to collect from the individual the full 
reasonable charge amount for such care.
  ``(2) The United States shall have the same rights against such 
individuals with respect to collection of such amounts as the United 
States has with respect to collection of amounts against a third-party 
payer under subsection (g), except that the rights under this 
subsection shall be exercised without regard to any rules for 
deductibles, coinsurance, or other cost-sharing.
  ``(i) Subsections (g) and (h) shall apply to reimbursement for the 
cost of hospitalization and related outpatient expenses paid for under 
subsection (d) only to the extent provided in regulations. Nothing in 
this subsection, or subsections (g) and (h), shall be construed as 
limiting any authority the Secretary otherwise has with respect to 
obtaining reimbursement for the payments made under subsection (d).''.
  (b) Effective Date.--(1) The amendments made by subsection (a) shall 
apply to items and services provided on and after the first day of the 
first month that begins more than 1 year after the date of the 
enactment of this Act.
  (2) In order to carry out such amendments in a timely manner, the 
Secretary of State is authorized to issue interim, final regulations 
that take effect pending notice and opportunity for public comment.

SEC. 1215. FEE FOR USE OF DIPLOMATIC RECEPTION ROOMS.

  The State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a 
et seq.) is amended by adding after section 53 (as added by section 
1213(b)) the following new section:

``SEC. 54. FEE FOR USE OF DIPLOMATIC RECEPTION ROOMS.

  ``The Secretary of State is authorized to charge a fee for use of the 
diplomatic reception rooms of the Department of State. Amounts 
collected under the authority of this section (including any 
reimbursements and surcharges) shall be deposited as an offsetting 
collection to any Department of State appropriation to recover the 
costs of such use and shall remain available for obligation until 
expended.''.

SEC. 1216. FEES FOR COMMERCIAL SERVICES.

  Section 52 of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2724) is amended in subsection (b) by adding at the end the 
following: ``Funds deposited under this subsection shall remain 
available for obligation until expended.''.

SEC. 1217. BUDGET PRESENTATION DOCUMENTS.

  The Secretary of State shall include in the annual Congressional 
Presentation Document and the Budget in Brief, a detailed accounting of 
the total collections received by the Department of State from all 
sources, including fee collections. Reporting on total collections 
shall also include the previous year's collection and the projected 
expenditures from all collections accounts.

SEC. 1218. EXTENSION OF CERTAIN ADJUDICATION PROVISIONS.

  The Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1990 (Public Law 101-167) is amended--
          (1) in section 599D (8 U.S.C. 1157 note)--
                  (A) in subsection (b)(3), by striking ``and 1997'' 
                and inserting ``1997, 1998, and 1999''; and
                  (B) in subsection (e), by striking ``October 1, 
                1997'' each place it appears and inserting ``October 1, 
                1999''; and
          (2) in section 599E (8 U.S.C. 1255 note) in subsection 
        (b)(2), by striking ``September 30, 1997'' and inserting 
        ``September 30, 1999''.

SEC. 1219. GRANTS TO OVERSEAS EDUCATIONAL FACILITIES.

  Section 29 of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2701) is amended by adding at the end the following: 
``Notwithstanding any other provision of law, where the children of 
United States citizen employees of an agency of the United States 
Government who are stationed outside the United States attend 
educational facilities assisted by the Department of State under this 
section, such agency is authorized to make grants to, or otherwise to 
reimburse or credit with advance payment, the Department of State for 
funds used in providing assistance to such educational facilities.''.

SEC. 1220. GRANTS TO REMEDY INTERNATIONAL CHILD ABDUCTIONS.

  (a) Grant Authority.--Section 7 of the International Child Abduction 
Remedies Act (42 U.S.C. 11606; Public Law 100-300) is amended by adding 
at the end the following new subsection:
  ``(e) Grant Authority.--The United States Central Authority is 
authorized to make grants to, or enter into contracts or agreements 
with, any individual, corporation, other Federal, State, or local 
agency, or private entity or organization in the United States for 
purposes of accomplishing its responsibilities under the convention and 
this Act.''.

       CHAPTER 2--CONSULAR AUTHORITIES OF THE DEPARTMENT OF STATE

SEC. 1241. USE OF CERTAIN PASSPORT PROCESSING FEES FOR ENHANCED 
                    PASSPORT SERVICES.

  For each of the fiscal years 1998 and 1999, of the fees collected for 
expedited passport processing and deposited to an offsetting collection 
pursuant to the Department of State and Related Agencies Appropriations 
Act for Fiscal Year 1995 (Public Law 103-317; 22 U.S.C. 214), 30 
percent shall be available only for enhancing passport services for 
United States citizens, improving the integrity and efficiency of the 
passport issuance process, improving the secure nature of the United 
States passport, investigating passport fraud, and deterring entry into 
the United States by terrorists, drug traffickers, or other criminals.

SEC. 1242. CONSULAR OFFICERS.

  (a) Persons Authorized To Issue Reports of Birth Abroad.--Section 33 
of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2705) 
is amended in paragraph (2) by inserting ``(or any United States 
citizen employee of the Department of State designated by the Secretary 
of State to adjudicate nationality abroad pursuant to such regulations 
as the Secretary may prescribe)'' after ``consular officer''.
  (b) Provisions Applicable to Consular Officers.--Section 1689 of the 
Revised Statutes of the United States (22 U.S.C. 4191), is amended by 
inserting ``and to such other United States citizen employees of the 
Department of State as may be designated by the Secretary of State 
pursuant to such regulations as the Secretary may prescribe'' after 
``such officers''.
  (c) Persons Authorized To Authenticate Foreign Documents.--Section 
3492(c) of title 18, United States Code, is amended by adding at the 
end the following: ``For purposes of this section and sections 3493 
through 3496 of this title, a consular officer shall include any United 
States citizen employee of the Department of State designated to 
perform notarial functions pursuant to section 24 of the Act of August 
18, 1856 (Rev. Stat. 1750, 22 U.S.C. 4221).''.
  (d) Persons Authorized To Administer Oaths.--Section 115 of title 35, 
United States Code, is amended by adding at the end the following: 
``For purposes of this section a consular officer shall include any 
United States citizen employee of the Department of State designated to 
perform notarial functions pursuant to section 24 of the Act of August 
18, 1856 (Rev. Stat. 1750, 22 U.S.C. 4221).''.

SEC. 1243. REPEAL OF OUTDATED CONSULAR RECEIPT REQUIREMENTS.

  Sections 1726, 1727, and 1728 of the Revised Statutes of the United 
States (22 U.S.C. 4212, 4213, and 4214) (concerning accounting for 
consular fees) are repealed.

SEC. 1244. ELIMINATION OF DUPLICATE PUBLICATION REQUIREMENTS.

  (a) Federal Register Publication of Travel Advisories.--Section 
44908(a) of title 49, United States Code, is amended--
          (1) by striking paragraph (2); and
          (2) by redesignating paragraph (3) as paragraph (2).
  (b) Publication in the Federal Register of Travel Advisories 
Concerning Security at Foreign Ports.--Section 908(a) of the 
International Maritime and Port Security Act of 1986 (Public Law 99-
399; 100 Stat. 891; 46 U.S.C. App. 1804(a)) is amended by striking the 
second sentence.

                   CHAPTER 3--REFUGEES AND MIGRATION

SEC. 1261. REPORT TO CONGRESS CONCERNING CUBAN EMIGRATION POLICIES.

  Beginning 3 months after the date of the enactment of this Act and 
every subsequent 6 months, the Secretary of State shall include in the 
monthly report to Congress entitled ``Update on Monitoring of Cuban 
Migrant Returnees'' additional information concerning the methods 
employed by the Government of Cuba to enforce the United States-Cuba 
agreement of September 1994 to restrict the emigration of the Cuban 
people from Cuba to the United States and the treatment by the 
Government of Cuba of persons who have returned to Cuba pursuant to the 
United States-Cuba agreement of May 1995.

SEC. 1262. REPROGRAMMING OF MIGRATION AND REFUGEE ASSISTANCE FUNDS.

  Section 34 of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2706) is amended by adding at the end the following new 
subsection:
  ``(c) Emergency Waiver of Notification Requirement.--The Secretary of 
State may waive the notification requirement of subsection (a), if the 
Secretary determines that failure to do so would pose a substantial 
risk to human health or welfare. In the case of any waiver under this 
subsection, notification to the appropriate congressional committees 
shall be provided as soon as practicable, but not later than 3 days 
after taking the action to which the notification requirement was 
applicable, and shall contain an explanation of the emergency 
circumstances.''.

  TITLE XIII--ORGANIZATION OF THE DEPARTMENT OF STATE; DEPARTMENT OF 
                  STATE PERSONNEL; THE FOREIGN SERVICE

           CHAPTER 1--ORGANIZATION OF THE DEPARTMENT OF STATE

SEC. 1301. COORDINATOR FOR COUNTERTERRORISM.

  (a) Establishment.--Section 1(e) of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2651a(e)) is amended--
          (1) by striking ``In'' and inserting the following:
          ``(1) In''; and
          (2) by inserting at the end the following:
  ``(2) Coordinator for counterterrorism.--
          ``(A) There shall be within the office of the Secretary of 
        State a Coordinator for Counterterrorism (hereafter in this 
        paragraph referred to as the `Coordinator') who shall be 
        appointed by the President, by and with the advice and consent 
        of the Senate.
          ``(B)(i) The Coordinator shall perform such duties and 
        exercise such power as the Secretary of State shall prescribe.
          ``(ii) The principal duty of the Coordinator shall be the 
        overall supervision (including policy oversight of resources) 
        of international counterterrorism activities. The Coordinator 
        shall be the principal adviser to the Secretary of State on 
        international counterterrorism matters. The Coordinator shall 
        be the principal counterterrorism official within the senior 
        management of the Department of State and shall report directly 
        to the Secretary of State.
          ``(C) The Coordinator shall have the rank and status of 
        Ambassador-at-Large. The Coordinator shall be compensated at 
        the annual rate of basic pay in effect for a position at level 
        IV of the Executive Schedule under section 5314 of title 5, 
        United States Code, or, if the Coordinator is appointed from 
        the Foreign Service, the annual rate of pay which the 
        individual last received under the Foreign Service Schedule, 
        whichever is greater.''.
  (b) Technical and Conforming Amendments.--Section 161 of the Foreign 
Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 
103-236) is amended by striking subsection (e).
  (c) Transition Provision.--The individual serving as Coordinator for 
Counterterrorism of the Department of State on the day before the 
effective date of this division may continue to serve in that position.

SEC. 1302. ELIMINATION OF STATUTORY ESTABLISHMENT OF CERTAIN POSITIONS 
                    OF THE DEPARTMENT OF STATE.

  (a) Assistant Secretary of State for South Asian Affairs.--Section 
122 of the Foreign Relations Authorization Act, Fiscal Years 1992 and 
1993 (22 U.S.C. 2652b) is repealed.
  (b) Deputy Assistant Secretary of State for Burdensharing.--Section 
161 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 
1995 (22 U.S.C. 2651a note) is amended by striking subsection (f).
  (c) Assistant Secretary for Oceans and International Environmental 
and Scientific Affairs.--Section 9 of the Department of State 
Appropriations Authorization Act of 1973 (22 U.S.C. 2655a) is repealed.

SEC. 1303. ESTABLISHMENT OF ASSISTANT SECRETARY OF STATE FOR HUMAN 
                    RESOURCES.

  Section 1(c) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2651a(c)) is amended by adding after paragraph (2) the 
following new paragraph:
          ``(3) Assistant secretary for human resources.--There shall 
        be in the Department of State an Assistant Secretary for Human 
        Resources who shall be responsible to the Secretary of State 
        for matters relating to human resources including the 
        implementation of personnel policies and programs within the 
        Department of State and international affairs functions and 
        activities carried out through the Department of State. The 
        Assistant Secretary shall have substantial professional 
        qualifications in the field of human resource policy and 
        management.''.

SEC. 1304. ESTABLISHMENT OF ASSISTANT SECRETARY OF STATE FOR DIPLOMATIC 
                    SECURITY.

  Section 1(c) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2651a(c)) as amended by section 1303 is further amended by 
adding after paragraph (3) the following new paragraph:
          ``(4) Assistant secretary for diplomatic security.--There 
        shall be in the Department of State an Assistant Secretary for 
        Diplomatic Security who shall be responsible to the Secretary 
        of State for matters relating to diplomatic security. The 
        Assistant Secretary shall have substantial professional 
        qualifications in the field of Federal law enforcement, 
        intelligence, or security.''.

SEC. 1305. SPECIAL ENVOY FOR TIBET.

  (a) United States Special Envoy for Tibet.--The President should 
appoint within the Department of State a United States Special Envoy 
for Tibet, who shall hold office at the pleasure of the President.
  (b) Rank.--A United States Special Envoy for Tibet appointed under 
subsection (a) shall have the personal rank of ambassador and shall be 
appointed by and with the advice and consent of the Senate.
  (c) Special Functions.--The United States Special Envoy for Tibet 
should be authorized and encouraged--
          (1) to promote substantive negotiations between the Dalai 
        Lama or his representatives and senior members of the 
        Government of the People's Republic of China;
          (2) to promote good relations between the Dalai Lama and his 
        representatives and the United States Government, including 
        meeting with members or representatives of the Tibetan 
        government-in-exile; and
          (3) to travel regularly throughout Tibet and Tibetan refugee 
        settlements.
  (d) Duties and Responsibilities.--The United States Special Envoy for 
Tibet should--
          (1) consult with the Congress on policies relevant to Tibet 
        and the future and welfare of all Tibetan people;
          (2) coordinate United States Government policies, programs, 
        and projects concerning Tibet; and
          (3) report to the Secretary of State regarding the matters 
        described in section 536(a)(2) of the Foreign Relations 
        Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-
        236).

SEC. 1306. RESPONSIBILITIES FOR BUREAU CHARGED WITH REFUGEE ASSISTANCE.

  The Bureau of Migration and Refugee Assistance shall be the bureau 
within the Department of State with principal responsibility for 
assisting the Secretary in carrying out the Migration and Refugee 
Assistance Act of 1962 and shall not be charged with responsibility for 
assisting the Secretary in matters relating to family planning or 
population policy.

  CHAPTER 2--PERSONNEL OF THE DEPARTMENT OF STATE; THE FOREIGN SERVICE

SEC. 1321. AUTHORIZED STRENGTH OF THE FOREIGN SERVICE.

  (a) End Fiscal Year 1998 Levels.--The number of members of the 
Foreign Service authorized to be employed as of September 30, 1998--
          (1) for the Department of State, shall not exceed 8,700, of 
        whom not more than 750 shall be members of the Senior Foreign 
        Service;
          (2) for the United States Information Agency, shall not 
        exceed 1,000, of whom not more than 140 shall be members of the 
        Senior Foreign Service; and
          (3) for the Agency for International Development, not to 
        exceed 1070, of whom not more than 140 shall be members of the 
        Senior Foreign Service.
  (b) End Fiscal Year 1999 Levels.--The number of members of the 
Foreign Service authorized to be employed as of September 30, 1999--
          (1) for the Department of State, shall not exceed 8,800, of 
        whom not more than 750 shall be members of the Senior Foreign 
        Service;
          (2) for the United States Information Agency, not to exceed 
        1,000 of whom not more than 140 shall be members of the Senior 
        Foreign Service; and
          (3) for the Agency for International Development, not to 
        exceed 1065 of whom not more than 135 shall be members of the 
        Senior Foreign Service.
  (c) Definition.--For the purposes of this section, the term ``members 
of the Foreign Service'' is used within the meaning of such term under 
section 103 of the Foreign Service Act of 1980 (22 U.S.C 3903), except 
that such term does not include--
          (1) members of the Service under paragraphs (6) and (7) of 
        such section;
          (2) members of the Service serving under temporary resident 
        appointments abroad;
          (3) members of the Service employed on less than a full-time 
        basis;
          (4) members of the Service subject to involuntary separation 
        in cases in which such separation has been suspended pursuant 
        to section 1106(8) of the Foreign Service Act of 1980; and
          (5) members of the Service serving under non-career limited 
        appointments.
  (d) Waiver Authority.--(1) Subject to paragraph (2), the President 
may waive any limitation under subsection (a) or (b) to the extent that 
such waiver is necessary to carry on the foreign affairs functions of 
the United States.
  (2) Not less than 15 days before the President exercises a waiver 
under paragraph (1), such agency head shall notify the Chairman of the 
Committee on Foreign Relations of the Senate and the Chairman of the 
Committee on International Relations of the House of Representatives. 
Such notice shall include an explanation of the circumstances and 
necessity for such waiver.

SEC. 1322. NONOVERTIME DIFFERENTIAL PAY.

  Title 5 of the United States Code is amended--
          (1) in section 5544(a), by inserting after the fourth 
        sentence the following new sentence: ``For employees serving 
        outside the United States in areas where Sunday is a routine 
        workday and another day of the week is officially recognized as 
        the day of rest and worship, the Secretary of State may 
        designate the officially recognized day of rest and worship as 
        the day with respect to which the preceding sentence shall 
        apply instead of Sunday.''; and
          (2) at the end of section 5546(a), by adding the following 
        new sentence: ``For employees serving outside the United States 
        in areas where Sunday is a routine workday and another day of 
        the week is officially recognized as the day of rest and 
        worship, the Secretary of State may designate the officially 
        recognized day of rest and worship as the day with respect to 
        which the preceding sentence shall apply instead of Sunday.''.

SEC. 1323. AUTHORITY OF SECRETARY TO SEPARATE CONVICTED FELONS FROM 
                    SERVICE.

  Section 610(a)(2) of the Foreign Service Act of 1980 (22 U.S.C. 
4010(a)(2)) is amended in the first sentence by striking ``A member'' 
and inserting ``Except in the case of an individual who has been 
convicted of a crime for which a sentence of imprisonment of more than 
1 year may be imposed, a member''.

SEC. 1324. CAREER COUNSELING.

  (a) In General.--Section 706(a) of the Foreign Service Act of 1980 
(22 U.S.C. 4026(a)) is amended by adding at the end the following 
sentence: ``Career counseling and related services provided pursuant to 
this Act shall not be construed to permit an assignment to training or 
to another assignment that consists primarily of paid time to conduct a 
job search and without other substantive duties, except that career 
members of the Service who upon their separation are not eligible to 
receive an immediate annuity and have not been assigned to a post in 
the United States during the 12 months prior to their separation from 
the Service may be permitted up to 2 months of paid time to conduct a 
job search.''.
  (b) Effective Date.--The amendment made by subsection (a) shall be 
effective 180 days after the date of the enactment of this Act.

SEC. 1325. REPORT CONCERNING MINORITIES AND THE FOREIGN SERVICE.

  The Secretary of State shall annually submit a report to the Congress 
concerning minorities and the Foreign Service officer corps. In 
addition to such other information as is relevant to this issue, the 
report shall include the following data (reported in terms of real 
numbers and percentages and not as ratios):
          (1) The numbers and percentages of all minorities taking the 
        written foreign service examination.
          (2) The numbers and percentages of all minorities 
        successfully completing and passing the written foreign service 
        examination.
          (3) The numbers and percentages of all minorities 
        successfully completing and passing the oral foreign service 
        examination.
          (4) The numbers and percentages of all minorities entering 
        the junior officers class of the Foreign Service.
          (5) The numbers and percentages of all minorities in the 
        Foreign Service officer corps.
          (6) The numbers and percentages of all minority Foreign 
        Service officers at each grade, particularly at the senior 
        levels in policy directive positions.
          (7) The numbers of and percentages of minorities promoted at 
        each grade of the Foreign Service officer corps.

SEC. 1326. RETIREMENT BENEFITS FOR INVOLUNTARY SEPARATION.

  (a) Benefits.--Section 609 of the Foreign Service Act of 1980 (22 
U.S.C. 4009) is amended--
          (1) in subsection (a)(2)(A) by inserting ``or any other 
        applicable provision of chapter 84 of title 5, United States 
        Code,'' after ``section 811,'';
          (2) in subsection (a) by inserting ``or section 855, as 
        appropriate'' after ``section 806''; and
          (3) in subsection (b)(2)--
                  (A) by inserting ``(A) for those participants in the 
                Foreign Service Retirement and Disability System,'' 
                before ``a refund''; and
                  (B) by inserting before the period at the end ``; and 
                (B) for those participants in the Foreign Service 
                Pension System, benefits as provided in section 851''.
          (4) in subsection (b) in the matter following paragraph (2) 
        by inserting ``(for participants in the Foreign Service 
        Retirement and Disability System) or age 62 (for participants 
        in the Foreign Service Pension System)'' after ``age 60''.
  (b) Entitlement to Annuity.--Section 855(b) of the Foreign Service 
Act of 1980 (22 U.S.C. 4071d(b)) is amended--
          (1) in paragraph (1) by inserting ``611,'' after ``608,'';
          (2) in paragraph (1) by inserting ``and for participants in 
        the Foreign Service Pension System'' after ``for participants 
        in the Foreign Service Retirement and Disability System''; and
          (3) in paragraph (3) by striking ``or 610'' and inserting 
        ``610, or 611''.
  (c) Effective Dates.--
          (1) Except as provided in paragraph (2), the amendments made 
        by this section shall take effect on the date of the enactment 
        of this Act.
          (2) The amendments made by paragraphs (2) and (3) of 
        subsection (a) and paragraphs (1) and (3) of subsection (b) 
        shall apply with respect to any actions taken under section 611 
        of the Foreign Service Act of 1980 after January 1, 1996.

SEC. 1327. AVAILABILITY PAY FOR CERTAIN CRIMINAL INVESTIGATORS WITHIN 
                    THE DIPLOMATIC SECURITY SERVICE.

  (a) In General.--Section 5545a of title 5, United States Code, is 
amended by adding at the end the following:
  ``(k)(1) For purposes of this section, the term `criminal 
investigator' includes an officer occupying a position under title II 
of Public Law 99-399 if--
          ``(A) subject to subparagraph (C), such officer meets the 
        definition of such term under paragraph (2) of subsection (a) 
        (applied disregarding the parenthetical matter before 
        subparagraph (A) thereof);
          ``(B) the primary duties of the position held by such officer 
        consist of performing--
                  ``(i) protective functions; or
                  ``(ii) criminal investigations; and
          ``(C) such officer satisfies the requirements of subsection 
        (d) without taking into account any hours described in 
        paragraph (2)(B) thereof.
  ``(2) In applying subsection (h) with respect to an officer under 
this subsection--
          ``(A) any reference in such subsection to `basic pay' shall 
        be considered to include amounts designated as `salary';
          ``(B) paragraph (2)(A) of such subsection shall be considered 
        to include (in addition to the provisions of law specified 
        therein) sections 609(b)(1), 805, 806, and 856 of the Foreign 
        Service Act of 1980; and
          ``(C) paragraph (2)(B) of such subsection shall be applied by 
        substituting for `Office of Personnel Management' the 
        following: `Office of Personnel Management or the Secretary of 
        State (to the extent that matters exclusively within the 
        jurisdiction of the Secretary are concerned)'.''.
  (b) Implementation.--Not later than the date on which the amendments 
made by this section take effect, each special agent of the Diplomatic 
Security Service who satisfies the requirements of subsection (k)(1) of 
section 5545a of title 5, United States Code, as amended by this 
section, and the appropriate supervisory officer, to be designated by 
the Secretary of State, shall make an initial certification to the 
Secretary of State that the special agent is expected to meet the 
requirements of subsection (d) of such section 5545a. The Secretary of 
State may prescribe procedures necessary to administer this subsection.
  (c) Technical and Conforming Amendments.--(1) Paragraph (2) of 
section 5545a(a) of title 5, United States Code, is amended (in the 
matter before subparagraph (A)) by striking ``Public Law 99-399)'' and 
inserting ``Public Law 99-399, subject to subsection (k))''.
  (2) Section 5542(e) of such title is amended by striking ``title 18, 
United States Code,'' and inserting ``title 18 or section 37(a)(3) of 
the State Department Basic Authorities Act of 1956,''.
  (d) Effective Date.--The amendments made by this section shall take 
effect on the first day of the first applicable pay period--
          (1) which begins on or after the 90th day following the date 
        of the enactment of this Act; and
          (2) on which date all regulations necessary to carry out such 
        amendments are (in the judgment of the Director of the Office 
        of Personnel Management and the Secretary of State) in effect.

SEC. 1328. LABOR MANAGEMENT RELATIONS.

  Section 1017(e)(2) of the Foreign Service Act of 1980 (22 U.S.C. 
4117(e)(2)) is amended to read as follows:
  ``(2) For the purposes of paragraph (1)(A)(ii) and paragraph (1)(B), 
the term `management official' does not include chiefs of mission, 
principal officers or their deputies, administrative and personnel 
officers abroad, or individuals described in section 1002(12) (B), (C), 
and (D) who are not involved in the administration of thischapter or in 
the formulation of the personnel policies and programs of the 
Department.''.

SEC. 1329. OFFICE OF THE INSPECTOR GENERAL.

  (a) Procedures.--Section 209(c) of the Foreign Service Act of 1980 
(22 U.S.C. 3929(c)) is amended by adding after paragraph (3) the 
following new paragraphs:
          ``(4) In the case of a formal interview where an employee is 
        the likely subject or target of an Inspector General criminal 
        investigation, the Inspector General shall make all best 
        efforts to provide the employee with notice of the full range 
        of his or her rights, including the right to retain counsel and 
        the right to remain silent, as well as the identification of 
        those attending the interview.
          ``(5) In carrying out the duties and responsibilities 
        established under this section, the Inspector General shall 
        develop and provide to employees--
                  ``(A) information detailing their rights to counsel; 
                and
                  ``(B) guidelines describing in general terms the 
                policies and procedures of the Office of Inspector 
                General with respect to individuals under 
                investigation, other than matters exempt from 
                disclosure under other provisions of law.''.
  (b) Report.--Not later than April 30, 1998, the Inspector General of 
the Department of State shall submit a report to the appropriate 
congressional committees which includes the following information:
          (1) Detailed descriptions of the internal guidance developed 
        or used by the Office of the Inspector General with respect to 
        public disclosure of any information related to an ongoing 
        investigation of any employee or official of the Department of 
        State, the United States Information Agency, or the Arms 
        Control and Disarmament Agency.
          (2) Detailed descriptions of those instances for the year 
        ending December 31, 1997, in which any disclosure of 
        information to the public by an employee of the Office of 
        Inspector General about an ongoing investigation occurred, 
        including details on the recipient of the information, the date 
        of the disclosure, and the internal clearance process for the 
        disclosure.

 TITLE XIV--UNITED STATES PUBLIC DIPLOMACY: AUTHORITIES AND ACTIVITIES 
  FOR UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL PROGRAMS

SEC. 1401. EXTENSION OF AU PAIR PROGRAMS.

  Section 1(b) of the Act entitled ``An Act to extend au pair 
programs.'' (Public Law 104-72; 109 Stat. 1065(b)) is amended by 
striking ``, through fiscal year 1997''.

SEC. 1402. RETENTION OF INTEREST.

  Notwithstanding any other provision of law, with the approval of the 
National Endowment for Democracy, grant funds made available by the 
National Endowment for Democracy may be deposited in interest-bearing 
accounts pending disbursement and any interest which accrues may be 
retained by the grantee without returning such interest to the Treasury 
of the United States and interest earned by be obligated and expended 
for the purposes for which the grant was made without further 
appropriation.

SEC. 1403. CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE BETWEEN NORTH 
                    AND SOUTH.

  Section 208(e) of the Foreign Relations Authorization Act, Fiscal 
Years 1992 and 1993 (22 U.S.C. 2075(e)) is amended by striking 
``$10,000,000'' and inserting ``$4,000,000''.

SEC. 1404. USE OF SELECTED PROGRAM FEES.

  Section 810 of the United States Information and Educational Exchange 
Act of 1948 (22 U.S.C. 1475e) is amended by inserting ``educational 
advising and counseling, exchange visitor program services, advertising 
sold by the Voice of America, receipts from cooperating international 
organizations and from the privatization of VOA Europe,'' after 
``library services,''.

SEC. 1405. MUSKIE FELLOWSHIP PROGRAM.

  (a) Guidelines .--Section 227(c)(5) of the Foreign Relations 
Authorization Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2452 note) is 
amended--
          (1) in the first sentence by inserting ``journalism and 
        communications, education administration, public policy, 
        library and information science,'' after ``business 
        administration,''; and
          (2) in the second sentence by inserting ``journalism and 
        communications, education administration, public policy, 
        library and information science,'' after ``business 
        administration,''.
  (b) Redesignation of Soviet Union.--Section 227 of the Foreign 
Relations Authorization Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2452 
note) is amended--
          (1) by striking ``Soviet Union'' each place it appears and 
        inserting ``Independent States of the Former Soviet Union''; 
        and
          (2) in the section heading by inserting ``independent states 
        of the former'' after ``from the''.

SEC. 1406. WORKING GROUP ON UNITED STATES GOVERNMENT SPONSORED 
                    INTERNATIONAL EXCHANGES AND TRAINING.

  Section 112 of the Mutual Educational and Cultural Exchange Act of 
1961 (22 U.S.C. 2460) is amended by adding at the end the following new 
subsection:
  ``(g) Working Group on United States Government Sponsored 
International Exchanges and Training.--(1) In order to carry out the 
purposes of subsection (f) and to improve the coordination, efficiency, 
and effectiveness of United States Government sponsored international 
exchanges and training, there is established within the United States 
Information Agency a senior-level interagency working group to be known 
as the Working Group on United States Government Sponsored 
International Exchanges and Training (hereinafter in this section 
referred to as ``the Working Group'').
  ``(2) For purposes of this subsection, the term `Government sponsored 
international exchanges and training' means the movement of people 
between countries to promote the sharing of ideas, to develop skills, 
and to foster mutual understanding and cooperation, financed wholly or 
in part, directly or indirectly, with United States Government funds.
  ``(3) The Working Group shall be composed as follows:
          ``(A) The Associate Director for Educational and Cultural 
        Affairs of the United States Information Agency, who shall act 
        as Chair.
          ``(B) A senior representative designated by the Secretary of 
        State.
          ``(C) A senior representative designated by the Secretary of 
        Defense.
          ``(D) A senior representative designated by the Secretary of 
        Education.
          ``(E) A senior representative designated by the Attorney 
        General.
          ``(F) A senior representative designated by the Administrator 
        of the Agency for International Development.
          ``(G) Senior representatives of other departments and 
        agencies as the Chair determines to be appropriate.
  ``(4) Representatives of the National Security Adviser and the 
Director of the Office of Management and Budget may participate in the 
Working Group at the discretion of the adviser and the director, 
respectively.
  ``(5) The Working Group shall be supported by an interagency staff 
office established in the Bureau of Educational and Cultural Affairs of 
the United States Information Agency.
  ``(6) The Working Group shall have the following purposes and 
responsibilities:
          ``(A) To collect, analyze, and report data provided by all 
        United States Government departments and agencies conducting 
        international exchanges and training programs.
          ``(B) To promote greater understanding and cooperation among 
        concerned United States Government departments and agencies of 
        common issues and challenges in conducting international 
        exchanges and training programs, including through the 
        establishment of a clearinghouse for information on 
        international exchange and training activities in the 
        governmental and nongovernmental sectors.
          ``(C) In order to achieve the most efficient and cost-
        effective use of Federal resources, to identify administrative 
        and programmatic duplication and overlap of activities by the 
        various United States Government departments and agencies 
        involved in Government sponsored international exchange and 
        training programs, to identify how each Government sponsored 
        international exchange and training program promotes United 
        States foreign policy, and to report thereon.
          ``(D) Not later than 1 year after the date of the enactment 
        of the Foreign Relations Authorization Act, Fiscal Years 1998 
        and 1999, to develop and thereafter assess, annually, a 
        coordinated and cost-effective strategy for all United States 
        Government sponsored international exchange and training 
        programs, and to issue a report on such strategy. This strategy 
        will include an action planfor consolidating United States 
Government sponsored international exchange and training programs with 
the objective of achieving a minimum 10 percent cost saving through 
consolidation or the elimination of duplication.
          ``(E) Not later than 2 years after the date of the enactment 
        of the Foreign Relations Authorization Act, Fiscal Years 1998 
        and 1999, to develop recommendations on common performance 
        measures for all United States Government sponsored 
        international exchange and training programs, and to issue a 
        report.
          ``(F) To conduct a survey of private sector international 
        exchange activities and develop strategies for expanding public 
        and private partnerships in, and leveraging private sector 
        support for, United States Government sponsored international 
        exchange and training activities.
          ``(G) Not later than 6 months after the date of the enactment 
        of the Foreign Relations Authorization Act, Fiscal Years 1998 
        and 1999, to report on the feasibility of transferring funds 
        and program management for the ATLAS and/or the Mandela Fellows 
        programs in South Africa from the Agency for International 
        Development to the United States Information Agency. The report 
        shall include an assessment of the capabilities of the South 
        African Fulbright Commission to manage such programs and the 
        cost advantages of consolidating such programs under one 
        entity.
  ``(7) All reports prepared by the Working Group shall be submitted to 
the President, through the Director of the United States Information 
Agency.
  ``(8) The Working Group shall meet at least on a quarterly basis.
  ``(9) All decisions of the Working Group shall be by majority vote of 
the members present and voting.
  ``(10) The members of the Working Group shall serve without 
additional compensation for their service on the Working Group. Any 
expenses incurred by a member of the Working Group in connection with 
service on the Working Group shall be compensated by that member's 
department or agency.
  ``(11) With respect to any report promulgated pursuant to paragraph 
(6), a member may submit dissenting views to be submitted as part of 
the report of the Working Group.''.

SEC. 1407. EDUCATIONAL AND CULTURAL EXCHANGES AND SCHOLARSHIPS FOR 
                    TIBETANS AND BURMESE.

  (a) Establishment of Educational and Cultural Exchange for 
Tibetans.--The Director of the United States Information Agency shall 
establish programs of educational and cultural exchange between the 
United States and the people of Tibet. Such programs shall include 
opportunities for training and, as the Director considers appropriate, 
may include the assignment of personnel and resources abroad.
  (b) Scholarships for Tibetans and Burmese.--
          (1) In general.--For each of the fiscal years 1998 and 1999, 
        at least 30 scholarships shall be made available to Tibetan 
        students and professionals who are outside Tibet, and at least 
        15 scholarships shall be made available to Burmese students and 
        professionals who are outside Burma.
          (2) Waiver.--Paragraph (1) shall not apply to the extent that 
        the Director of the United States Information Agency determines 
        that there are not enough qualified students to fulfill such 
        allocation requirement.
          (3) Scholarship defined.--For the purposes of this section, 
        the term ``scholarship'' means an amount to be used for full or 
        partial support of tuition and fees to attend an educational 
        institution, and may include fees, books, and supplies, 
        equipment required for courses at an educational institution, 
        living expenses at a United States educational institution, and 
        travel expenses to and from, and within, the United States.

SEC. 1408. UNITED STATES--JAPAN COMMISSION.

  (a) Relief From Restriction of Interchangeability of Funds.--
          (1) Section 6(4) of the Japan-United States Friendship Act 
        (22 U.S.C. 2905(4)) is amended by striking ``needed, except'' 
        and all that follows through ``United States'' and inserting 
        ``needed''.
          (2) The second sentence of section 7(b) of the Japan-United 
        States Friendship Act (22 U.S.C. 2906(b)) is amended to read as 
        follows: ``Such investment may be made only in interest-bearing 
        obligations of the United States, in obligations guaranteed as 
        to both principal and interest by the United States, in 
        interest-bearing obligations of Japan, or in obligations 
        guaranteed as to both principal and interest by Japan.''.
  (b) Revision of Name of Commission.--
          (1) After the date of the enactment of this Act, the Japan-
        United States Friendship Commission shall be designated as the 
        ``United States-Japan Commission''. Any reference in any 
        provision of law, Executive order, regulation, delegation of 
        authority, or other document to the Japan-United States 
        Friendship Commission shall be considered to be a reference to 
        the United States-Japan Commission.
          (2) The heading of section 4 of the Japan-United States 
        Friendship Act (22 U.S.C. 2903) is amended to read as follows:
                  ``united states-japan commission''.
          (3) The Japan-United States Friendship Act is amended by 
        striking ``Japan-United States Friendship Commission'' each 
        place such term appears and inserting ``United States-Japan 
        Commission''.
  (c) Revision of Name of Trust Fund.--
          (1) After the date of the enactment of this Act, the Japan-
        United States Friendship Trust Fund shall be designated as the 
        ``United States-Japan Trust Fund''. Any reference in any 
        provision of law, Executive order, regulation, delegation of 
        authority, or other document to the Japan-United States 
        Friendship Trust Fund shall be considered to be a reference to 
        the United States-Japan Trust Fund.
          (2) Section 3(a) of the Japan-United States Friendship Act 
        (22 U.S.C. 2902(a)) is amended by striking ``Japan-United 
        States Friendship Trust Fund'' and inserting ``United States-
        Japan Trust Fund''.

SEC. 1409. SURROGATE BROADCASTING STUDIES.

  (a) Radio Free Africa.--Not later than 6 months after the date of the 
enactment of this Act, the United States Information Agency and the 
Board of Broadcasting Governors should conduct and complete a study of 
the appropriateness, feasibility, and projected costs of providing 
surrogate broadcasting service to Africa and transmit the results of 
the study to the appropriate congressional committees.
  (b) Radio Free Iran.--Not later than 6 months after the date of the 
enactment of this Act, the United States Information Agency and the 
Board of Broadcasting Governors should conduct and complete a study of 
the appropriateness, feasibility, and projected costs of a Radio Free 
Europe/Radio Liberty broadcasting service to Iran and transmit the 
results of the study to the appropriate congressional committees.

SEC. 1410. AUTHORITY TO ADMINISTER SUMMER TRAVEL/WORK PROGRAMS.

  The Director of the United States Information Agency is authorized to 
administer summer travel/work programs without regard to preplacement 
requirements.

SEC. 1411. PERMANENT ADMINISTRATIVE AUTHORITIES REGARDING 
                    APPROPRIATIONS.

  Section 701(f) of the United States Information and Educational 
Exchange Act of 1948 (22 U.S.C. 1476(f)) is amended by striking 
paragraph (4).

SEC. 1412. AUTHORITIES OF THE BROADCASTING BOARD OF GOVERNORS.

  (a) Authorities.--Section 305(a)(1) of the United States 
International Broadcasting Act of 1994 (22 U.S.C. 6204(a)(1)) is 
amended by striking ``direct and''.
  (b) Director of the Bureau.--The first sentence of section 307(b)(1) 
of the United States International Broadcasting Act of 1994 (22 
U.S.C.6206(b)(1)) is amended to read as follows: ``The Director of the 
Bureau shall be appointed by the Board with the concurrence of the 
Director of the United States Information Agency.''.
  (c) Responsibilities of the Director.--Section 307 of the United 
States International Broadcasting Act of 1994 (22 U.S.C.6206) is 
amended by adding at the end the following new subsection:
  ``(c) Responsibilities of the Director.--The Director shall organize 
and chair a coordinating committee to examine long-term strategies for 
the future of international broadcasting, including the use of new 
technologies, further consolidation of broadcast services, and 
consolidation of currently existing public affairs and legislative 
relations functions in the various international broadcasting entities. 
The coordinating committee shall include representatives of RFA, RFE/
RL, the Broadcasting Board of Governors, and, as appropriate, from the 
Office of Cuba Broadcasting, the Voice of America, and WorldNet.''.
  (d) Radio Broadcasting to Cuba.--Section 4 of the Radio Broadcasting 
to Cuba Act (22 U.S.C. 1465b) is amended by striking ``of the Voice of 
America'' and inserting ``of the International Broadcasting Bureau''.
  (e) Television Broadcasting to Cuba.--Section 244(a) of the 
Television Broadcasting to Cuba Act (22 U.S.C. 1465cc(a)) is amended in 
the third sentenceby striking ``of the Voice of America'' and inserting 
``of the International Broadcasting Bureau''.

   TITLE XV--INTERNATIONAL ORGANIZATIONS; UNITED NATIONS AND RELATED 
                                AGENCIES

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 1501. SERVICE IN INTERNATIONAL ORGANIZATIONS.

  (a) In General.--Section 3582(b) of title 5, United States Code, is 
amended by striking all after the first sentence and inserting the 
following: ``On reemployment, he is entitled to the rate of basic pay 
to which he would have been entitled had he remained in the civil 
service. On reemployment, the agency shall restore his sick leave 
account, by credit or charge, to its status at the time of transfer. 
The period of separation caused by his employment with the 
international organization and the period necessary to effect 
reemployment are deemed creditable service for all appropriate civil 
service employment purposes. This subsection does not apply to a 
congressional employee.''.
  (b) Application.--The amendment made by subsection (a) shall apply 
with respect transfers which take effect on or after the date of the 
enactment of this Act.

SEC. 1502. ORGANIZATION OF AMERICAN STATES.

  Taking into consideration the long-term commitment by the United 
States to the affairs of this hemisphere and the need to build further 
upon the linkages between the United States and its neighbors, it is 
the sense of the Congress that the Secretary of State should make every 
effort to pay the United States assessed funding levels for the 
Organization of American States, which is uniquely dependent on United 
States contributions and is continuing fundamental reforms in its 
structure and its agenda.

             CHAPTER 2--UNITED NATIONS AND RELATED AGENCIES

SEC. 1521. REFORM IN BUDGET DECISIONMAKING PROCEDURES OF THE UNITED 
                    NATIONS AND ITS SPECIALIZED AGENCIES.

  (a) Assessed Contributions.--Of amounts authorized to be appropriated 
for ``Assessed Contributions to International Organizations'' by this 
Act, the President may withhold 20 percent of the funds appropriated 
for the United States assessed contribution to the United Nations or to 
any of its specialized agencies for any calendar year if the Secretary 
of State determines that the United Nations or any such agency has 
failed to implement or to continue to implement consensus-based 
decisionmaking procedures on budgetary matters which assure that 
sufficient attention is paid to the views of the United States and 
other member states that are the major financial contributors to such 
assessed budgets.
  (b) Notice to Congress.--The President shall notify the Congress when 
a decision is made to withhold any share of the United States assessed 
contribution to the United Nations or its specialized agencies pursuant 
to subsection (a) and shall notify the Congress when the decision is 
made to pay any previously withheld assessed contribution. A 
notification under this subsection shall include appropriate 
consultation between the President (or the President's representative) 
and the Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate.
  (c) Contributions for Prior Years.--Subject to the availability of 
appropriations, payment of assessed contributions for prior years may 
be made to the United Nations or any of its specialized agencies 
notwithstanding subsection (a) if such payment would further United 
States interests in that organization.
  (d) Report to Congress.--Not later than February 1 of each year, the 
President shall submit to the appropriate congressional committees a 
report concerning the amount of United States assessed contributions 
paid to the United Nations and each of its specialized agencies during 
the preceding calendar year.

SEC. 1522. REPORTS ON EFFORTS TO PROMOTE FULL EQUALITY AT THE UNITED 
                    NATIONS FOR ISRAEL.

  (a) Congressional Statement.--It is the sense of the Congress that 
the United States must help promote an end to the persistent inequity 
experienced by Israel in the United Nations whereby Israel is the only 
longstanding member of the organization to be denied acceptance into 
any of the United Nation's regional blocs.
  (b) Reports to Congress.--Not later than 90 days after the date of 
the enactment of this Act and on a quarterly basis thereafter, the 
Secretary of State shall submit to the appropriate congressional 
committees a report which includes the following information (in 
classified or unclassified form as appropriate):
          (1) Actions taken by representatives of the United States to 
        encourage the nations of the Western Europe and Others Group 
        (WEOG) to accept Israel into their regional bloc.
          (2) Efforts undertaken by the Secretary General of the United 
        Nations to secure Israel's full and equal participation in that 
        body.
          (3) Specific responses received by the Secretary of State 
        from each of the nations of the Western Europe and Others Group 
        (WEOG) on their position concerning Israel's acceptance into 
        their organization.
          (4) Other measures being undertaken, and which will be 
        undertaken, to ensure and promote Israel's full and equal 
        participation in the United Nations.

SEC. 1523. UNITED NATIONS POPULATION FUND.

  (a) Limitation.--Subject to subsections (b), (c), and (d)(2), of the 
amounts made available for each of the fiscal years 1998 and 1999 to 
carry out part I of the Foreign Assistance Act of 1961, not more than 
$25,000,000 shall be available for each such fiscal year for the United 
Nations Population Fund.
  (b) Prohibition on Use of Funds in China.--None of the funds made 
available under this section shall be made available for a country 
program in the People's Republic of China.
  (c) Conditions on Availability of Funds.--
          (1) Not more than one-half of the amount made available to 
        the United Nations Population Fund under this section may be 
        provided to the Fund before March 1 of the fiscal year for 
        which funds are made available.
          (2) Amounts made available for each of the fiscal years 1998 
        and 1999 under part I of the Foreign Assistance Act of 1961 for 
        the United Nations Population Fund may not be made available to 
        the Fund unless--
                  (A) the Fund maintains amounts made available to the 
                Fund under this section in an account separate from 
                accounts of the Fund for other funds; and
                  (B) the Fund does not commingle amounts made 
                available to the Fund under this section with other 
                funds.
  (d) Reports.--
          (1) Not later than February 15, 1998, and February 15, 1999, 
        the Secretary of State shall submit a report to the appropriate 
        congressional committees indicating the amount of funds that 
        the United Nations Population Fund is budgeting for the year in 
        which the report is submitted for a country program in the 
        People's Republic of China.
          (2) If a report under paragraph (1) indicates that the United 
        Nations Population Fund plans to spend China country program 
        funds in the People's Republic of China in the year covered by 
        the report, then the amount of such funds that the Fund plans 
        to spend in the People's Republic of China shall be deducted 
        from the funds made available to the Fund after March 1 for 
        obligation for the remainder of the fiscal year in which the 
        report is submitted.

SEC. 1524. CONTINUED EXTENSION OF PRIVILEGES, EXEMPTIONS, AND 
                    IMMUNITIES OF THE INTERNATIONAL ORGANIZATIONS 
                    IMMUNITIES ACT TO UNIDO.

  Section 12 of the International Organizations Immunities Act (22 
U.S.C. 288f-2) is amended by inserting ``and the United Nations 
Industrial Development Organization'' after ``International Labor 
Organization''.

             TITLE XVI--ARMS CONTROL AND DISARMAMENT AGENCY

SEC. 1601. COMPREHENSIVE COMPILATION OF ARMS CONTROL AND DISARMAMENT 
                    STUDIES.

  Section 39 of the Arms Control and Disarmament Act (22 U.S.C. 2579) 
is repealed.

SEC. 1602. USE OF FUNDS.

  Section 48 of the Arms Control and Disarmament Act (22 U.S.C. 2588) 
is amended by striking ``section 11 of the Act of March 1, 1919 (44 
U.S.C. 111)'' and inserting ``any other Act''.

                 TITLE XVII--FOREIGN POLICY PROVISIONS

SEC. 1701. UNITED STATES POLICY REGARDING THE INVOLUNTARY RETURN OF 
                    REFUGEES.

  (a) In General.--No funds authorized to be appropriated by this 
division shall be available to effect the involuntary return by the 
United States of any person to a country in which the person has a well 
founded fear of persecution on account of race, religion, nationality, 
membership in a particular social group, or political opinion, except 
on grounds recognized as precluding protection as a refugee under the 
United Nations Convention Relating to the Status of Refugees of July 
28, 1951, and the Protocol Relating to the Status of Refugees of 
January 31, 1967.
  (b) Migration and Refugee Assistance.--No funds authorized to be 
appropriated by section 1104 of this Act or by section 2(c) of the 
Migration and Refugee Assistance Act of 1962 (22 U.S.C. 2601(c)) shall 
be available to effect the involuntary return of any person to any 
country unless the Secretary of State first notifies the appropriate 
congressional committees, except that in the case of an emergency 
involving a threat to human life the Secretary of State shall notify 
the appropriate congressional committees as soon as practicable.
  (c) Involuntary Return Defined.--As used in this section, the term 
``to effect the involuntary return'' means to require, by means of 
physical force or circumstances amounting to a threat thereof, a person 
to return to a country against the person's will, regardless of whether 
the person is physically present in the United States and regardless of 
whether the United States acts directly or through an agent.

SEC. 1702. UNITED STATES POLICY WITH RESPECT TO THE INVOLUNTARY RETURN 
                    OF PERSONS IN DANGER OF SUBJECTION TO TORTURE.

  (a) In General.--The United States shall not expel, extradite, or 
otherwise effect the involuntary return of any person to a country in 
which there are reasonable grounds for believing the person would be in 
danger of subjection to torture.
  (b) Definitions.--
          (1) In general.--Except as otherwise provided, terms used in 
        this section have the meanings given such terms under the 
        United Nations Convention Against Torture and Other Cruel, 
        Inhuman or Degrading Treatment or Punishment, subject to any 
        reservations, understandings, declarations, and provisos 
        contained in the United States resolution of advice and consent 
        to ratification to such convention.
          (2) Involuntary return.--As used in this section, the term 
        ``effect the involuntary return'' means to take action by which 
        it is reasonably foreseeable that a person will be required to 
        return to a country against the person's will, regardless of 
        whether such return is induced by physical force and regardless 
        of whether the person is physically present in the United 
        States.

SEC. 1703. REPORTS ON CLAIMS BY UNITED STATES FIRMS AGAINST THE 
                    GOVERNMENT OF SAUDI ARABIA.

  (a) In General.--Within 60 days after the date of the enactment of 
this Act and every 120 days thereafter, the Secretary of State, in 
coordination with the Secretary of Defense and the Secretary of 
Commerce, shall report to the appropriate congressional committees on 
specific actions taken by the Department of State, the Department of 
Defense, and the Department of Commerce toward progress in resolving 
the commercial disputes between United States firms and the Government 
of Saudi Arabia that are described in the June 30, 1993, report by the 
Secretary of Defense pursuant to section 9140(c) of the Department of 
Defense Appropriations Act, 1993 (Public Law 102-396), including the 
additional claims noticed by the Department of Commerce on page 2 of 
that report.
  (b) Termination.--Subsection (a) shall cease to have effect when the 
Secretary of State, in coordination with the Secretary of Defense and 
the Secretary of Commerce, certifies in writing to the appropriate 
congressional committees that the commercial disputes referred to in 
subsection (a) have been resolved satisfactorily.

SEC. 1704. HUMAN RIGHTS REPORTS.

  Section 116(d) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151n) is amended--
          (1) by striking ``January 31'' and inserting ``February 25'';
          (2) redesignating paragraphs (3), (4), and (5) as paragraphs 
        (4), (5), and (6), respectively; and
          (3) by inserting after paragraph (2) the following new 
        paragraph (3):
          ``(3) the status of child labor practices in each country, 
        including--
                  ``(A) whether such country has adopted policies to 
                protect children from exploitation in the workplace, 
                including a prohibition of forced and bonded labor and 
                policies regarding acceptable working conditions; and
                  ``(B) the extent to which each country enforces such 
                policies, including the adequacy of resources and 
                oversight dedicated to such policies;''.

SEC. 1705. REPORTS ON DETERMINATIONS UNDER TITLE IV OF THE LIBERTAD 
                    ACT.

  Section 401 of the Cuban Liberty and Democratic Solidarity (LIBERTAD) 
Act of 1996 (22 U.S.C. 6091) is amended by adding at the end the 
following:
  ``(e) Reports to Congress.--The Secretary of State shall, not later 
than 30 days after the date of the enactment of this subsection and 
every 3 months thereafter, submit to the Committee on International 
Relations of the House of Representatives and the Committee on Foreign 
Relations of the Senate a report on the implementation of this section. 
Each report shall include--
          ``(1) an unclassified list, by economic sector, of the number 
        of entities then under review pursuant to this section;
          ``(2) an unclassified list of all entities and a classified 
        list of all individuals that the Secretary of State has 
        determined to be subject to this section;
          ``(3) an unclassified list of all entities and a classified 
        list of all individuals that the Secretary of State has 
        determined are no longer subject to this section;
          ``(4) an explanation of the status of the review under way 
        for the cases referred to in paragraph (1); and
          ``(5) an unclassified explanation of each determination of 
        the Secretary of State under subsection (a) and each finding of 
        the Secretary under subsection (c)--
                  ``(A) since the date of the enactment of this Act, in 
                the case of the first report under this subsection; and
                  ``(B) in the preceding 3-month period, in the case of 
                each subsequent report.''.

SEC. 1706. REPORTS AND POLICY CONCERNING DIPLOMATIC IMMUNITY.

  (a) Annual Report Concerning Diplomatic Immunity.--
          (1) Report to congress.--The Secretary of State shall prepare 
        and submit to the Congress, annually, a report concerning 
        diplomatic immunity entitled ``Report on Cases Involving 
        Diplomatic Immunity''.
          (2) Content of report.--In addition to such other information 
        as the Secretary of State may consider appropriate, the report 
        under paragraph (1) shall include the following:
                  (A) The number of persons residing in the United 
                States who enjoy full immunity from the criminal 
                jurisdiction of the United States under laws extending 
                diplomatic privileges and immunities.
                  (B) Each case involving an alien described in 
                subparagraph (A) in which the appropriate authorities 
                of a State, a political subdivision of a State, or the 
                United States reported to the Department of State that 
                the authority had reasonable cause to believe the alien 
                committed a serious criminal offense within the United 
                States.
                  (C) Each case in which the United States has 
                certified that a person enjoys full immunity from the 
                criminal jurisdiction of the United States under laws 
                extending diplomatic privileges and immunities.
                  (D) The number of United States citizens who are 
                residing in a receiving state and who enjoy full 
                immunity from the criminal jurisdiction of such state 
                under laws extending diplomatic privileges and 
                immunities.
                  (E) Each case involving a United States citizen under 
                subparagraph (D) in which the United States has been 
                requested by the government of a receiving state to 
                waive the immunity from criminal jurisdiction of the 
                United States citizen.
          (3) Serious criminal offense defined.--The term ``serious 
        criminal offense'' means--
                  (A) any felony under Federal, State, or local law;
                  (B) any Federal, State, or local offense punishable 
                by a term of imprisonment of more than 1 year ;
                  (C) any crime of violence as defined for purposes of 
                section 16 of title 18, United States Code; or
                  (D) driving under the influence of alcohol or drugs 
                or driving while intoxicated if the case involves 
                personal injury to another individual.
  (b) United States Policy Concerning Reform of Diplomatic Immunity.--
It is the sense of the Congress that the Secretary of State should 
explore, in appropriate fora, whether states should enter into 
agreements and adopt legislation--
          (1) to provide jurisdiction in the sending state to prosecute 
        crimes committed in the receiving state by persons entitled to 
        immunity from criminal jurisdiction under laws extending 
        diplomatic privileges and immunities; and
          (2) to provide that where there is probable cause to believe 
        that an individual who is entitled to immunity from the 
        criminal jurisdiction of the receiving state under laws 
        extending diplomatic privileges and immunities committed a 
        serious crime, the sending state will waive such immunity or 
        the sending state will prosecute such individual.

SEC. 1707. CONGRESSIONAL STATEMENT WITH RESPECT TO EFFICIENCY IN THE 
                    CONDUCT OF FOREIGN POLICY.

  It is the sense of the Congress that the Secretary, after 
consultation with the appropriate congressional committees, should 
submit a plan to the Congress to consolidate some or all of the 
functions currently performed by the Department of State, the agency 
for International Development, and the Arms Control and Disarmament 
Agency, in order to increase efficiency and accountability in the 
conduct of the foreign policy of the United States.

SEC. 1708. CONGRESSIONAL STATEMENT CONCERNING RADIO FREE EUROPE/RADIO 
                    LIBERTY.

  It is the sense of the Congress that Radio Free Europe/Radio Liberty 
should continue surrogate broadcasting beyond the year 2000 to 
countries whose people do not yet fully enjoy freedom of expression. 
Recent events in Serbia, Belarus, and Slovakia, among other nations, 
demonstrate that even after the end of communist rule in such nations, 
tyranny under other names still threatens the freedom of their peoples, 
and hence the stability of Europe and the national security interest of 
the United States. The Broadcasting Board of Governors should therefore 
continue to allocate sufficient funds to Radio Free Europe/Radio 
Liberty to continue broadcasting at current levels to target countries 
and to increase these levels in response to renewed threats to freedom.

SEC. 1709. PROGRAMS OR PROJECTS OF THE INTERNATIONAL ATOMIC ENERGY 
                    AGENCY IN CUBA.

  (a) Withholding of United States Proportional Share of Assistance.--
          (1) In general.--Section 307(c) of the Foreign Assistance Act 
        of 1961 (22 U.S.C. 2227(c)) is amended--
                  (A) by striking ``The limitations'' and inserting 
                ``(1) Subject to paragraph (2), the limitations''; and
                  (B) by adding at the end the following:
  ``(2)(A) Except as provided in subparagraph (B), with respect to 
funds authorized to be appropriated by this chapter and available for 
the International Atomic Energy Agency, the limitations of subsection 
(a) shall apply to programs or projects of such Agency in Cuba.
  ``(B)(i) Subparagraph (A) shall not apply with respect to programs or 
projects of the International Atomic Energy Agency that provide for the 
discontinuation, dismantling, or safety inspection of nuclear 
facilities or related materials, or for inspections and similar 
activities designed to prevent the development of nuclear weapons by a 
country described in subsection (a).
  ``(ii) Clause (i) shall not apply with respect to the Juragua Nuclear 
Power Plant near Cienfuegos, Cuba, or the Pedro Pi Nuclear Research 
Center unless Cuba--
          ``(I) ratifies the Treaty on the Non-Proliferation of Nuclear 
        Weapons (21 UST 483) or the Treaty for the Prohibition of 
        Nuclear Weapons in Latin America (commonly known as the Treaty 
        of Tlatelolco);
          ``(II) negotiates full-scope safeguards of the International 
        Atomic Energy Agency not later than two years after 
        ratification by Cuba of such Treaty; and
          ``(III) incorporates internationally accepted nuclear safety 
        standards.''.
          (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on October 1, 1997, or the date of the 
        enactment of this Act, whichever occurs later.
  (b) Opposition to Certain Programs or Projects.--The Secretary of 
State shall direct the United States representative to the 
International Atomic Energy Agency to oppose the following:
          (1) Technical assistance programs or projects of the Agency 
        at the Juragua Nuclear Power Plant near Cienfuegos, Cuba, and 
        at the Pedro Pi Nuclear Research Center.
          (2) Any other program or project of the Agency in Cuba that 
        is, or could become, a threat to the security of the United 
        States.
  (c) Reporting Requirements.--
          (1) Request for iaea reports.--The Secretary of State shall 
        direct the United States representative to the International 
        Atomic Energy Agency to request the Director-General of the 
        Agency to submit to the United States all reports prepared with 
        respect to all programs or projects of the Agency that are of 
        concern to the United States, including the programs or 
        projects described in subsection (b).
          (2) Annual reports to the congress.--Not later than 180 days 
        after the date of the enactment of this Act, and on an annual 
        basis thereafter, the Secretary of State, in consultation with 
        the United States representative to the International Atomic 
        Energy Agency, shall prepare and submit to the Congress a 
        report containing a description of all programs or projects of 
        the Agency in each country described in section 307(a) of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2227(a)).

SEC. 1710. UNITED STATES POLICY WITH RESPECT TO JERUSALEM AS THE 
                    CAPITAL OF ISRAEL.

  (a) Limitation.--Of the amounts authorized to be appropriated by 
section 1101(4) for ``Acquisition and Maintenance of Buildings Abroad'' 
$25,000,000 for the fiscal year 1998 and $75,000,000 for the fiscal 
year 1999 is authorized to be appropriated for the construction of a 
United States Embassy in Jerusalem, Israel.
  (b) Limitation on Use of Funds for Consulate in Jerusalem.--None of 
the funds authorized to be appropriated by this division may be 
expended for the operation of a United States consulate or diplomatic 
facility in Jerusalem unless such consulate or diplomatic facility is 
under the supervision of the United States Ambassador to Israel.
  (c) Limitation on Use of Funds for Publications.--None of the funds 
authorized to be appropriated by this division may be available for the 
publication of any official government document which lists countries 
and their capital cities unless the publication identifies Jerusalem as 
the capital of Israel.
  (d) Record of Place of Birth.--For purposes of the registration of 
birth, certification of nationality, or issuance of a passport of a 
United States citizen born in the city of Jerusalem, upon request, the 
Secretary of State shall permit the place of birth to be recorded as 
Jerusalem, Israel.

SEC. 1711. REPORT ON COMPLIANCE WITH THE HAGUE CONVENTION ON 
                    INTERNATIONAL CHILD ABDUCTION.

  Beginning 6 months after the date of the enactment of this Act and 
every 12 months thereafter during the fiscal years 1998 and 1999, the 
Secretary shall provide to the appropriate congressional committees a 
report on the compliance with the provisions of the the Hague 
Convention on the Civil Aspects of International Child Abduction by the 
signatories to such convention. Each such report shall include the 
following information:
          (1) The number of applications for the return of children 
        submitted by United States citizens to the Central Authority 
        for the United States that remain unresolved more than 18 
        months after the date of filing.
          (2) A list of the countries to which children in unresolved 
        applications described in paragraph (1) are alleged to have 
        been abducted.
          (3) A list of the countries that have demonstrated a pattern 
        of noncompliance with the obligations of such convention with 
        respect to applications for the return of children submitted by 
        United States citizens to the Central Authority for the United 
        States.
          (4) Detailed information on each unresolved case described in 
        paragraph (1) and on actions taken by the Department of State 
        to resolve each such case.

SEC. 1712. SENSE OF CONGRESS RELATING TO RECOGNITION OF THE ECUMENICAL 
                    PATRIARCHATE BY THE GOVERNMENT OF TURKEY.

  It is the sense of the Congress that the United States--
          (1) should recognize the Ecumenical Patriarchate and its 
        nonpolitical, religious mission;
          (2) should encourage the continued maintenance of the 
        institution's physical security needs, as provided for under 
        Turkish and international law; and
          (3) should use its good offices to encourage the reopening of 
        the Ecumenical Patriarchate's Halki Patriarchal School of 
        Theology.

SEC. 1713. RETURN OF HONG KONG TO PEOPLE'S REPUBLIC OF CHINA.

  It is the sense of the Congress that--
          (1) the return of Hong Kong to the People's Republic of China 
        should be carried out in a peaceful manner, with respect for 
        the rule of law and respect for human rights, freedom of 
        speech, freedom of the press, freedom of association, freedom 
        of movement; and
          (2) these basic freedoms are not incompatible with the rich 
        culture and history of the People's Republic of China.

SEC. 1714. DEVELOPMENT OF DEMOCRACY IN THE REPUBLIC OF SERBIA.

  (a) Findings.--The Congress finds the following:
          (1) The United States stands as a beacon of democracy and 
        freedom in the world.
          (2) A stable and democratic Republic of Serbia is important 
        to the interests of the United States, the international 
        community, and to peace in the Balkans.
          (3) Democratic forces in the Republic of Serbia are beginning 
        to emerge, notwithstanding the efforts of Europe's longest-
        standing communist dictator, Slobodan Milosevic.
          (4) The Republic of Serbia completed municipal elections on 
        November 17, 1996.
          (5) In 14 of Serbia's 18 largest cities, and in a total of 42 
        major municipalities, candidates representing parties in 
        opposition to the Socialist Party of President Milosevic and 
        the Yugoslav United Left Party of his wife Mirjana Markovic won 
        a majority of the votes cast.
          (6) Socialist Party-controlled election commissions and 
        government authorities thwarted the people's will by annulling 
        free elections in the cities of Belgrade, Nis, Smederevska 
        Palanka, and several other cities where opposition party 
        candidates won fair elections.
          (7) Countries belonging to the Organization for Security and 
        Cooperation in Europe (OSCE) on January 3, 1997, called upon 
        President Milosevic and all the political forces in the 
        Republic of Serbia to honor the people's will and honor the 
        election results.
          (8) Hundreds of thousands of Serbs marched in the streets of 
        Belgrade on a daily basis from November 20, 1996, through 
        February 1997, demanding the implementation of the election 
        results and greater democracy in the country.
          (9) The partial reinstatement of opposition party victories 
        in January 1997 and the subsequent enactment by the Serbian 
        legislature of a special law implementing the results of all 
        the 1996 municipal elections does not atone for the Milosevic 
        regime's trampling of rule of law, orderly succession of power, 
        and freedom of speech and of assembly.
          (10) The Serbian authorities have sought to continue to 
        hinder the growth of a free and independent news media in the 
        Republic of Serbia, in particular the broadcast news media, and 
        harassed journalists performing their professional duties.
  (b) Sense of the Congress.--It is the sense of the Congress that--
          (1) the United States, the Organization for Security and 
        Cooperation in Europe (OSCE), and the international community 
        should continue to press the Government of the Republic of 
        Serbia to ensure the implementation of free, fair, and honest 
        presidential and parliamentary elections in 1997, and to fully 
        abide by their outcome;
          (2) the United States, the OSCE, the international community, 
        nongovernmental organizations, and the private sector should 
        continue to promote the building of democratic institutions and 
        civic society in the Republic of Serbia, help strengthen the 
        independent news media, and press for the Government of the 
        Republic of Serbia to respect the rule of law; and
          (3) the normalization of relations between the Federal 
        Republic of Yugoslavia and the United States requires, among 
        other things, that President Milosevic and the leadership of 
        Serbia--
                  (A) ensure the implementation of free, fair, and 
                honest presidential and parliamentary elections in 
                1997;
                  (B) abide by the outcome of such elections; and
                  (C) promote the building of democratic institutions, 
                including strengthening the independent news media and 
                respecting the rule of law.

SEC. 1715. RELATIONS WITH VIETNAM.

  (a) Sense of Congress.--It is the sense of the Congress that--
          (1) the development of a cooperative bilateral relationship 
        between the United States and the Socialist Republic of Vietnam 
        should facilitate maximum progress toward resolving outstanding 
        POW/MIA issues, promote the protection of human rights 
        including universally recognized religious, political, and 
        other freedoms, contribute to regional stability, and encourage 
        continued development of mutually beneficial economic 
        relations;
          (2) the satisfactory resolution of United States concerns 
        with respect to outstanding POW/MIA, human rights, and refugee 
        issues is essential to the full normalization of relations 
        between the United States and Vietnam;
          (3) the United States should upgrade the priority afforded to 
        the ongoing bilateral human rights dialog between the United 
        States and Vietnam by requiring the Department of State to 
        schedule the next dialog with Vietnam, and all subsequent 
        dialogs, at a level no lower than that of Assistant Secretary 
        of State;
          (4) during any future negotiations regarding the provision of 
        Overseas Private Investment Corporation insurance to American 
        companies investing in Vietnam and the granting of Generalized 
        System of Preference status for Vietnam, the United States 
        Government should strictly hold the Government of Vietnam to 
        internationally recognized worker rights standards, including 
        the right of association, the right to organize and bargain 
        collectively, and the prohibition on the use of any forced or 
        compulsory labor; and
          (5) the Department of State should consult with other 
        governments to develop a coordinated multilateral strategy to 
        encourage Vietnam to invite the United Nations Special 
        Rapporteur on Religious Intolerance to visit Vietnam to carry 
        out inquiries and make recommendations.
  (b) Report to Congress.--In order to provide Congress with the 
necessary information by which to evaluate the relationship between the 
United States and Vietnam, the Secretary shall report to the 
appropriate congressional committees, not later than 90 days after the 
enactment of this Act and every 180 days thereafter during fiscal years 
1998 and 1999, on the extent to which--
          (1) the Government of the Socialist Republic of Vietnam is 
        cooperating with the United States in providing the fullest 
        possible accounting of all unresolved POW/MIA cases and the 
        recovery and repatriation of American remains;
          (2) the Government of the Socialist Republic of Vietnam has 
        made progress toward the release of all political and religious 
        prisoners, including but not limited to Catholic, Protestant, 
        and Buddhist clergy;
          (3) the Government of the Socialist Republic of Vietnam is 
        cooperating with requests by the United States to obtain full 
        and free access to persons of humanitarian interest to the 
        United States for interviews under the Orderly Departure (ODP) 
        and Resettlement Opportunities for Vietnamese Refugees (ROVR) 
        programs, and in providing exit visas for such persons;
          (4) the Government of the Socialist Republic of Vietnam has 
        taken vigorous action to end extortion, bribery, and other 
        corrupt practices in connection with such exit visas; and
          (5) the Government of the United States is making vigorous 
        efforts to interview and resettle former reeducation camp 
        victims, their immediate families including, but not limited 
        to, unmarried sons and daughters, former United States 
        Government employees, and other persons eligible for the ODP 
        program, and to give such persons the full benefit of all 
        applicable United States laws including, but not limited to, 
        sections 599D and 599E of the Foreign Operations, Export 
        Financing, and Related Programs Appropriations Act of 1990 
        (Public Law 101-167).

SEC. 1716. STATEMENT CONCERNING RETURN OF OR COMPENSATION FOR WRONGLY 
                    CONFISCATED FOREIGN PROPERTIES.

  The Congress--
          (1) welcomes the efforts of many post-Communist countries to 
        address the complex and difficult question of the status of 
        plundered properties;
          (2) urges countries which have not already done so to return 
        plundered properties to their rightful owners or, as an 
        alternative, pay compensation, in accordance with principles of 
        justice and in a manner that is just, transparent, and fair;
          (3) calls for the urgent return of property formerly 
        belonging to Jewish communities as a means of redressing the 
        particularly compelling problems of aging and destitute 
        survivors of the Holocaust;
          (4) calls on the Czech Republic, Latvia, Lithuania, Romania, 
        Slovakia, and any other country with restrictions which require 
        those whose properties have been wrongly plundered by Nazi or 
        Communist regimes to reside in or have the citizenship of the 
        country from which they now seek restitution or compensation to 
        remove such restrictions from their restitution or compensation 
        laws;
          (5) calls upon foreign financial institutions, and the states 
        having legal authority over their operation, that possess 
        wrongfully and illegally obtained property confiscated from 
        Holocaust victims, from residents of former Warsaw Pact states 
        who were forbidden by Communist law from obtaining restitution 
        of such property, and from states that were occupied by Nazi, 
        Fascist, or Communist forces, to assist and to cooperate fully 
        with efforts to restore this property to its rightful owners; 
        and
          (6) urges post-Communist countries to pass and effectively 
        implement laws that provide for restitution of, or compensation 
        for, plundered property.

                       DIVISION C--FUNDING LEVELS

SEC. 2001. AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN PROGRAMS.

  Subject to section 634A of the Foreign Assistance Act of 1961, there 
are authorized to be appropriated to the President for fiscal year 
1998, $116,878,000. Amounts made available pursuant to such 
authorization shall be transferred to and merged with funds made 
available to accounts authorized to be appropriated by this Act (and 
amendments made by this Act) that are below the President's fiscal year 
1998 request. Amounts transferred and merged under this subsection may 
not increase an appropriation account above the President's fiscal year 
1998 request.

                         background and purpose

    H.R. 1486, the Foreign Policy Reform Act, represents a 
bipartisan effort to reform the foreign assistance and other 
international affairs programs of the United States. While 
there are still many details to be worked out, the Committee is 
united in the belief that the United States has a vital role to 
play in securing peace and prosperity for our country aboard.
    In the coming century, America will continue to face 
serious threats from abroad. Since 1970, India, Pakistan, South 
Africa and North Korea built nuclear weapons. Iraq, Iran, 
Syria, Myanmar, North Korea and Libya built large numbers of 
chemical and biological weapons.
    The threat from illict narcotics from abroad costs our 
society more than $67 billion annually in crime, incarceration, 
health care and lost wages. We need to fight drugs abroad at 
their source before they reach our streets, infect our schools 
and destroy future generations.
    Americans also depend on the world economy. Up to one-third 
of all Americans depend directly or indirectly on exports for 
their family's income. America is the world's number one 
exporter and our export sector led the economy out of the last 
recession. Old foreign assistance recipients have become 
growing U.S. markets. For example, the 25 million people of 
Central America now buy more American goods than 900 million 
Indians. Our challenge is to direct assistance programs and 
policies toward building free markets and democratic societies 
while retaining the capacity to provide humanitarian aid that 
reflects the highest American values.
    These facts call for an aggressive, engaged foreign policy 
that builds alliances with our friends while advancing our 
economic interests and values. The Committee hopes that this 
bill will begin to lay that foundation by reforming our 
diplomatic institutions and the assistance programs that back 
it up.
    This bill authorizes funding for the operations and 
programs of the State Department, Agency for International 
Development, U.S. Information Agency, and Arms Control and 
Disarmament Agency. The Committee intends to reduce the level 
of funding authorized in the bill as necessary to conform to 
the allocation provided for international affairs programs by 
the House Budget Committee Chairman.
    The Committee is pleased that an amendment will be offered 
during floor consideration of the bill to abolish and 
consolidate into the State Department two agencies funded under 
the bill (the U.S. Information Agency and the Arms Control and 
Disarmament Agency) and partially consolidate a third such 
agency (the Agency for International Development) into the 
Department of State. A similar provision in the Committee's 
authorization bill during the 104th Congress (H.R. 1561) was 
bitterly opposed by the Administration and ultimately led the 
President to veto that bill.
    On April 17th of this year, the President changed direction 
and endorsed a plan to reorganize the foreign affairs agencies 
of the U.S. Government along the lines suggested in H.R. 1561. 
The Committee regrets that it took so long for the President to 
recognize the urgent need to adapt the foreign affairs 
structure of the U.S. Government to post-Cold War requirements. 
Now that he has done so, however, the Committee looks forward 
to implementing a reorganization plan that will streamline 
decision-making, eliminate overlapping functions, and save 
money.

                            committee action

                               division a

    On February 12, 1997, the Full Committee held a hearing on 
the future of the Overseas Private Investment Corporation 
(OPIC). Witnesses for this hearing included: Congressman Jim 
Kolbe; Congressman Robert E. Andrews; Ms. Anne H. Predieri, 
Director, Project Finance Group, Nationsbanc Capital Markets, 
Inc.; Mr. Peter Ferrara, General Counsel and Chief Economist, 
Americans for Tax Reform; and Mr. Peter Bowe, President, 
Ellicott International.
    On February 25, 1997, the Full Committee held a hearing on 
the Administration's fiscal year 1998 foreign assistance budget 
request. The witness for this hearing was Administrator Brian 
J. Atwood, Agency for International Development.
    On February 26, 1997, the Full Committee held a hearing on 
``New Thinking on Foreign Assistance''. The witnesses for this 
hearing included: Hon. Mickey Edwards, Council on Foreign 
Relations; Hon. Stephen Solarz, Council on Foreign Relations; 
Mr. David Gordon, Overseas Development Council; Ms. Julia Taft, 
President, InterAction; and Ms. Carol Lancaster, Assistant 
Professor, School of Foreign Service, Georgetown University.
    On February 26, 1997, the Subcommittee on Asia and the 
Pacific held a hearing on U.S. policy toward North Korea. The 
witnesses for this hearing included: Acting Assistant Secretary 
for East Asian and Pacific Affairs Charles Kartman, Department 
of State; Deputy Assistant Secretary for East Asian and Pacific 
Affairs Dr. Kurt Campbell, Department of Defense; Hon. James R. 
Lilley, Director, Institute for Global Chinese Affairs, 
University of Maryland; Dr. Roy Richard Grinker, Associate 
Professor of Anthropology and International Relations, George 
Washington University; and Dr. Robert A. Manning, Senior 
Fellow, Progressive Policy Institute.
    On March 5, 1997, the Subcommittee on Asia and the Pacific 
held a hearing on AIDactivities in Asia and the Central Asian 
Republics. The witnesses for this hearing included: Assistant 
Administrator for Europe and the New Independent States Thomas Dine, 
U.S. Agency for International Development; Deputy Assistant 
Administrator for Asia Charles Weden, U.S. Agency for International 
Development; and a panel of private witnesses.
    On March 11, 1997, the Full Committee held a hearing on 
U.S. Assistance to the Newly Independent States for the former 
Soviet Union. The witnesses for this hearing included: 
Ambassador Richard Morningstar, Coordinator of U.S. Assistance 
to the Newly Independent States, Department of State; and 
Assistant Administrator for Europe and the Newly Independent 
States Thomas Dine, Agency for International Development.
    On March 12, 1997, the Full Committee held a hearing on 
U.S.-Russian relations. The witness for this hearing was 
Ambassador-at-Large for the New Independent States James F. 
Collins, Department of State.
    On March 13, 1997, the Full Committee held a hearing on 
foreign assistance and U.S. foreign policy. The witnesses for 
this hearing included: Mr. Howard Kohr, Executive Director, 
American Israel Public Affairs Committee; Mr. Andrew Manatos, 
President, Manatos and Manatos; Father Sean McManus, President, 
Irish National Caucus, Inc.; Mr. C. Payne Lucas, President, 
Africare; Mr. Sy Taubenblatt, Senior Executive Representative, 
Bechtel Corp.; Mr. Andrew Natsios, Executive Director, Relief 
and Development, World Vision; Ms. Anna Stout, Executive Vice 
President, American League for Exports and Security Assistance; 
Bishop John Ricard, President and Chairman, Catholic Relief 
Services; and Mr. Ted Carpenter, Vice President, CATO.
    On March 13, 1997, the Subcommittee on Africa held a 
hearing on the impact of U.S. development assistance in Africa. 
The witnesses for this hearing included: Assistant Secretary 
for Africa George Moose, Department of State; Acting Assistant 
Administrator for Africa Carol Peasley, U.S. Agency for 
International Development; Hon. Edward DeJarnette, Executive 
Director, U.S.-Angola Chamber of Commerce; Nicholas Eberstadt, 
PhD, Visiting Scholar, American Enterprise Institute; Mr. 
William Ford, President, African Development Foundation; Mr. 
Michael Maron, journalist/author; and Ms. Carol Lancaster, 
Assistant Professor, School of Foreign Service, Georgetown 
University.
    On March 18, 1997, the Subcommittee on International 
Economic Policy and Trade held a hearing on the Overseas 
Private Investment Corporation. The witnesses for this hearing 
included: Hon. Ruth Harkin, CEO, OPIC; Mr. Thomas Schatz, 
President, Citizens Against Government Waste; Mr. Kevin 
Callwood, Corporate Council on Africa; and Ms. Linda Powers, 
Senior Vice President, Global Finance, Enron International.
    On March 19, 1997, the Subcommittee on Africa held a 
hearing on ``Economic Development of Africa's Natural 
Resources''. The witnesses for this hearing included: 
Congressman Clay Shaw; Mr. Michael Fay, Project Director, 
Noubale-Ndoki.
    On March 20, 1997, the Full Committee held a hearing the 
Administration's security assistance request for FY98. The 
witness for this hearing was Secretary of Defense William 
Cohen.
    On April 10, 1997, the Full Committee held a hearing on 
U.S. policy toward Egypt. The witnesses for this hearing 
included: Mr. Robert Satloff, Executive Director, The 
Washington Institute for Near East Policy; Mr. Abraham Foxman, 
National Director, Anti-Defamation League; Mr. Joseph Stork, 
Advocacy Director for Middle East, Human Rights Watch; and Dr. 
Mamoun Fandy, Professor of Politics, Center for Contemporary 
Arab Studies, Georgetown University.

                               division b

    On February 11, 1997, the Full Committee held a hearing on 
the Administration's international affairs budget for FY98. The 
witness for this hearing was Secretary of State Madeleine 
Albright.
    On February 26, 1997, the Subcommittee on International 
Operations and Human Rights held a hearing on Department of 
State management initiatives. The witness for this hearing was 
Acting Under Secretary for Management Patrick Kennedy, 
Department of State.
    On March 5, 1997, the Subcommittee on International 
Operations and Human Rights held a hearing on foreign relations 
authorization for FY98-99: Arms Control and Disarmament Agency. 
The witness for this hearing was Director John D. Holum, U.S. 
Arms Control and Disarmament Agency.
    On March 11, 1997, the Subcommittee on International 
Operations and Human Rights held a hearing on Foreign Relations 
Authorization for FY 98-99: Refugees and Migration. The witness 
for this hearing was Assistant Secretary for the Bureau of 
Population, Refugees and Migration Phyllis Oakley, Department 
of State.
    On March 13, 1997, the Subcommittee on International 
Operations and Human Rights held a hearing on the ``Foreign 
Relations Authorization Act for FY 98-99: U.S. Information 
Agency and the National Endowment for Democracy''. The 
witnesses for this hearing included: Director Joseph Duffey, 
U.S. Information Agency; Chairman David Burke, Broadcasting 
Board of Governors; and Carl Gershman, President, National 
Endowment for Democracy.
    On March 18, 1997, the Subcommittee on International 
Operations and Human Rights held a hearing on the ``Foreign 
Relations Authorization Act for FY 98-99: International 
Organizations and Conferences''. The witness for this hearing 
was Acting Assistant Secretary for the Bureau of International 
Organization Affairs Princeton Lyman, Department of State. On 
April 9, 1997, the Full Committee held a hearing on U.N. 
peacekeeping. The witnesses for this hearing included: Mr. 
Harold J. Johnson, Associate Director, International Relations 
and Trade Issues, General Accounting Office; Mr. John Hillen, 
Defense and Foreign Policy Analyst, Heritage Foundation; and 
Mr. John Bolton, Senior Vice President, American Enterprise 
Institute.
    On April 10, 1997, the Subcommittee on International 
Operations and Human Rights held a markup on H.R. 1253, the 
Foreign Relations Authorization Act for FY 98-99.
    On April 17, 1997, the Full Committee held a second hearing 
on U.N. peacekeeping. The witnesses for this hearing included: 
Assistant Secretary for International Organizational Affairs 
Princeton Lyman, Department of State; and Assistant Secretary 
for Strategy Edward (Ted) L. Warner, Department of Defense.

                           markup of the bill

    H.R. 1486 was introduced by Chairman Gilman on April 29, 
1997. The Full Committee marked up the bill in open session, 
pursuant to notice, on April 30, May 1, and May 6, 1997. On May 
6, 1997, a quorum being present, the Committee by voice vote 
ordered the bill reported to the House with the recommendation 
that the bill, as amended, do pass.

                     roll call votes on amendments

    In compliance with clause (2)(l)(2)(B) of rule XI of the 
Rules of the House of Representatives, the record of committee 
roll call votes on final passage or amendments during the 
committee's consideration of H.R. 1486 is set out on the 
following pages, as is a report of the committee's final action 
on the bill.

     description of amendment, motion, order, or other proposition

Votes during markup of H.R. 1486--April 30

    Vote #1 (12:37 p.m.)--Ackerman amendment to strike Section 
302 of the introduced bill, relating to assistance to countries 
which do not vote with the United States in the United Nations.
    Voting yes: Houghton, Campbell, Hamilton, Gejdenson, 
Lantos, Ackerman, Payne, Andrews, Menendez, McKinney, Hastings, 
Danner, Hilliard, Capps, Sherman, Wexler, Clement, Luther, 
Davis.
    Voting no: Gilman, Goodling, Hyde, Bereuter, Smith, 
Gallegly, Ballenger, Rohrabacher, King, Kim, Chabot, Sanford, 
Graham, Blunt, Brady.
    Passed 19-15.
    Vote #2 (2:34 p.m.)--Hamilton amendment to eliminate drug 
certification process under the Foreign Assistance Act.
    Voting yes: Gilman, Bereuter, Rohrabacher, Campbell, 
Hamilton, Gejdenson, Lantos, Berman, Ackerman, Faleomavaega, 
Martinez, Payne, Andrews, Menendez, Brown, McKinney, Hastings, 
Danner, Hilliard, Capps, Sherman, Rothman, Luther, Davis.
    Voting no: Goodling, Smith, Burton, Gallegly, Ballenger, 
Manzullo, Royce, King, Kim, Chabot, Sanford, Salmon, Fox, 
McHugh, Blunt, Moran, Brady, Clement.
    Passed 24-18.
    Vote #3 (3:29 p.m.)--McKinney amendment to require 
adherence to an arms transfer code of conduct.
    Voting yes: Leach, Smith, Rohrabacher, Campbell, Lantos, 
Berman, Ackerman, Faleomavaega, Martinez, Payne, Andrews, 
Menendez, Brown, McKinney, Hastings, Danner, Hilliard, Capps, 
Rothman, Clement, Luther.
    Voting no: Gilman, Goodling, Bereuter, Burton, Ros-
Lehtinen, Ballenger, Manzullo, Royce, King, Kim, Chabot, 
Sanford, Salmon, Houghton, McHugh, Graham, Blunt, Moran, Brady, 
Hamilton, Gejdenson, Sherman, Davis.
    Failed 21-23.
    Vote #4 (4:25 p.m.)--Royce substitute to Payne amendment 
restricting assistance to Morocco.
    Voting yes: Bereuter, Smith, Ballenger, Rohrabacher, 
Manzullo, Royce, Chabot, Salmon, Houghton, Faleomavaega, 
Martinez, Payne, Andrews, Menendez, Brown, McKinney, Hilliard, 
Clement.
    Voting no: Gilman, Burton, Ros-Lehtinen, King, Sanford, 
Campbell, McHugh, Graham, Blunt, Moran, Brady, Hamilton, 
Gejdenson, Lantos, Hastings, Sherman, Rothman, Luther, Davis.
    Failed 18-20.

Votes During markup of H.R. 1486--May 1

    Vote #1 (1:15 p.m.)--Campbell amendment to Houghton 
amendment on African Development Fund. The Campbell amendment 
would have required, rather than permitted, a transfer of 
resources to the Fund.
    Voting yes: Sanford, Campbell, Gejdenson, Lantos, Ackerman, 
Payne, Menendez, Brown, McKinney, Hastings, Hilliard, Capps, 
Sherman, Luther, Davis.
    Voting no: Gilman, Bereuter, Smith, Ballenger, Rohrabacher, 
Manzullo, Royce, Kim, Houghton, Fox, McHugh, Blunt, Brady, 
Hamilton, Berman, Danner, Wexler, Rothman, Clement.
    Failed 15-19.
    Vote #2 (2:56 p.m.)--Campbell amendment transferring aid 
from Egypt and Israel to Africa.
    Voting yes: Ballenger, Rohrabacher, Sanford, Campbell, 
Payne, Brown, McKinney, Hilliard, Luther.
    Voting no: Gilman, Hyde, Bereuter, Smith, Burton, Manzullo, 
Royce, King, Kim, Chabot, Salmon, Houghton, Fox, McHugh, 
Graham, Blunt, Moran, Brady, Hamilton, Gejdenson, Berman, 
Ackerman, Martinez, Menendez, Hastings, Danner, Capps, Sherman, 
Wexler, Rothman, Clement, Davis.
    Failed 9-32.
    Vote #3 (3:09 p.m.)--Sherman perfecting amendment to the 
Burton substitute to original Sherman amendment providing for 
assistance to residents of Nagorno-Karabakh.
    Voting yes: Hamilton, Gejdenson, Berman, Ackerman, 
Martinez, Menendez, Brown, McKinney, Hastings, Capps, Sherman, 
Rothman, Luther, Davis.
    Voting no: Gilman, Hyde, Bereuter, Smith, Burton, 
Ballenger, Rohrabacher, Manzullo, King, Kim, Chabot, Sanford, 
Salmon, Houghton, Campbell, Fox, McHugh, Graham, Moran, Brady, 
Danner, Hilliard, Clement.
    Failed 14-23.
    Vote #4 (4:10 p.m.)--Hyde amendment to Rohrabacher 
amendment (relative to assistance to Russia if it provided 
certain assistance to China) permitting the President to waive 
the restrictions in certain circumstances.
    Voting yes: Gilman, Hyde, Bereuter, Smith, Ballenger, King, 
Houghton, Fox, McHugh, Hamilton, Gejdenson, Lantos, Ackerman, 
Martinez, Payne, Menendez, Hastings, Capps, Sherman, Clement, 
Luther, Davis.
    Voting no: Burton, Rohrabacher, Manzullo, Royce, Kim, 
Chabot, Sanford, Salmon, Campbell, Graham, Brady, Brown, 
McKinney, Rothman.
    Passed 22-14.

Votes during markup of H.R. 1486--May 6

    Vote #1 (7:35 p.m.)--Campbell amendment on family planning 
(relaxing restrictions in the introduced bill relative to 
funding for the UN Population Fund)
    Voting yes: Gilman, Leach, Houghton, Campbell, Hamilton, 
Gejdenson, Lantos, Berman, Ackerman, Martinez, Payne, Menendez, 
Brown, McKinney, Hastings, Hilliard, Capps, Sherman, Wexler, 
Rothman, Clement, Luther, Davis.
    Voting no: Goodling, Hyde, Bereuter, Smith, Ros-Lehtinen, 
Ballenger, Rohrabacher, Manzullo, Royce, King, Chabot, Sanford, 
Fox, Blunt, Moran, Brady.
    Passed 23-16.
    Vote #2 (8:09 p.m.)--Sanford amendment cutting funding in 
each account in the bill to its FY 96 level.
    Voting yes: Goodling, Ballenger, Rohrabacher, Royce, 
Chabot, Sanford, Salmon, Campbell, Graham, Blunt, Moran, Brady.
    Voting no: Gilman, Bereuter, Smith, Burton, Ros-Lehtinen, 
King, Houghton, Fox, McHugh, Hamilton, Gejdenson, Lantos, 
Berman, Ackerman, Martinez, Payne, Menendez, Brown, McKinney, 
Hastings, Danner, Hilliard, Capps, Sherman, Wexler, Rothman, 
Clement, Luther, Davis.
    Failed 12-39
    Vote #3 (8:24 p.m.)--Sanford amendment cutting funding in 
each account in the bill to its FY 97 level.
    Voting yes: Goodling, Burton, Ballenger, Rohrabacher, 
Royce, Chabot, Sanford, Salmon, Campbell, Graham, Blunt, Moran, 
Brady.
    Voting no: Gilman, Bereuter, Smith, Ros-Lehtinen, King, 
Houghton, Fox, McHugh, Hamilton, Gejdenson, Lantos, Berman, 
Ackerman, Martinez, Payne, Menendez, Brown, McKinney, Hastings, 
Danner, Hilliard, Capps, Sherman, Wexler, Rothman, Clement, 
Luther, Davis.
    Failed 13-28.
    Note: The bill was ordered reported favorably, amended, by 
voice vote, a quorum being present, on May 6, 1997.

                      section-by-section analysis

    division a--international affairs agency consolidation, foreign 
        assistance reform and foreign assistance authorizations

Title I--General Provisions

    Sec. 101.--Short Title. This section provides that Division 
A may be cited as the ``Foreign Assistance Reform Act of 
1997''.
    Sec. 102.--Declaration of Policy. This section includes a 
congressional declaration that (1) U.S. leadership overseas 
must be maintained, (2) foreign assistance programs support 
that leadership and (3) these programs must be reformed to take 
advantage of opportunities in the 21st century.

Title II--Consolidation of Certain Foreign Assistance Agencies

    Title II of Division A provides for the consolidation of 
certain foreign assistance agencies, including the 
International Development Cooperation Agency. Section 1707 of 
the Bill calls for the Secretary of State, after consultations 
with the appropriate committees, to submit a plan to the 
Congress to consolidate some or all of the functions currently 
performed by the Department of State, the Agency for 
International Development, and the Arms Control and Disarmament 
Agency. The Committee is aware that the President announced on 
April 18, 1997, a plan to integrate certain agencies and 
functions into the Department of State. The Committee is 
prepared to work with the Administration to streamline and 
consolidate the foreign affairs agencies of the US Government 
and expects the administration to consult with the Committee 
about a more comprehensive approach to this issue that will be 
offered during consideration of this measure on the House 
floor.
            Chapter 1--General Provisions
    Sec. 201.--Short Title. This section provides that the 
title may be cited as the ``International Affairs Agency 
Consolidation Act of 1997''.
    Sec. 202.--Definitions. This section defines ``USAID'' as 
the ``United States Agency for International Development'', 
``federal agency'' under 5 U.S.C. 551(1), and ``function'' as 
any duty, obligation, power, authority, responsibility, right, 
privilege, activity or program.
            Chapter 2--United States International Development 
                    Cooperation Agency

  Subchapter A--Abolition of United States International Development 
 Cooperation Agency and Transfer of Functions to United States Agency 
                     for International Development

    Sec. 211.--Abolition of United States International 
Development Cooperation Agency. Subsection (a) abolishes the 
International Development Cooperation Agency (``IDCA''). Until 
1979, AID and its Administrator served under the direction of 
the Secretary of State. IDCA was formed during the Carter 
Administration to boost the attention paid to international 
development and trade issues. IDCA's Director reported to the 
President directly.
    IDCA only served as an independent entity during the tenure 
of its first Director. Since then, the Administrator of AID 
also served as the Director of IDCA. IDCA quickly became an 
empty shell of an office whose sole benefit was to permit the 
AID Administrator, as the Director of IDCA, to report directly 
to the President, instead of the Secretary of State.
    The bill would return AID's management and reporting 
responsibilities to their status prior to the 1979 Executive 
Order that established IDCA.
    Subsection (b) makes conforming amendments that nullify:
          (1) the reorganization plan number 2 of 1979,
          (2) parts of Executive Order 1263,
          (3) the IDCA Delegation of Authority Numbered 1 
        (except for section 1-6), and
          (4) section 3 of Executive Order 12884 that created 
        and defined IDCA.
    Subsection (c) makes these changes effective six months 
following enactment of this Act.
    Sec. 212.--Transfer of Function to United States Agency for 
International Development. Subsection (a) transfers all of the 
functions and other responsibilities of IDCA's Director to the 
Administrator of AID. Subsection (b) makes this transfer 
effective six months following the enactment of this act.
    Sec. 213.--Transition Provisions. Subsection (a) transfers 
all personnel, property and records of IDCA to AID as the 
Director of the Office on Management and Budget shall provide. 
Any unexpended balance under IDCA is also transferred to AID as 
the Office of Management and Budget (``OMB'') may decide, 
provided that these balances may be expended only for the 
purposes for which the appropriation was made.
    Subsection (b) provides that the Director of the OMB shall 
provide for terminating the affairs of IDCA.

      Subchapter B--Continuation of the United States Agency for 
  International Development and Placement of Administrator of Agency 
             under the Direction of the Secretary of State

    Sec. 221.--Continuation of United States Agency for 
International Development and Placement of Administrator of 
Agency under the Direction of the Secretary of State. 
Subsection (a) provides that AID shall continue as an agency of 
the federal government after the abolition of IDCA.
    Subsection (b) places the Administrator of AID at the head 
of this agency and ``under the direction of the Secretary of 
State''. Under this subsection, the Administrator of AID shall 
report to the Secretary of State on all matters concerning the 
administration of the agency and implementation by that agency 
of the programs under the Foreign Assistance Act, annual 
appropriations acts and other statutes imposing requirements on 
the Agency.
    Subsection (c) provides that other officers of AID shall 
continue to exercise their functions without the need for 
reappointment by the President or reconfirmation by the Senate.
    Sec. 231.--Conforming Amendments. This section makes a 
number of conforming amendments to Titles 5, 26, and 49 of the 
U.S. Code, the Inspector General Act of 1978, the International 
Security and Development Cooperation Act of 1980, the State 
Department Basic Authorities Act of 1956, the Foreign Service 
Act of 1980, and the Export Administration Act of 1979 to 
remove references to IDCA and its Director, replacing them with 
references to AID and its Administrator.
    Sec. 232.--Other References. This section provides that any 
references that are made to IDCA or its Director are deemed to 
refer to AID and its Administrator
    Sec. 233.--Effective Date. This subchapter shall take 
effect six months after the enactment of this Act.

Title III--Foreign Assistance Reform

    Sec. 301.--Graduation from Development Assistance. This 
section makes two significant changes to current law. First, 
while the President regularly publishes a Congressional 
Presentation Document (``CPD'') that justifies his annual 
budget request, subsection (a) now formally requires the 
President to publish a CPD covering programs under the Foreign 
Assistance Act (``FAA'') and the Arms Export Control Act 
(``AECA'') as part of the annual request for the enactment by 
Congress of authorizations and appropriations for foreign 
assistance programs.
    The Committee was disappointed in the Administration's 
failure to request a foreign assistance authorization bill 
during the 104th Congress. This failure to request a bill 
contributed to the inability of the Congress and the 
Administration to find common ground on foreign assistance 
authorization matters.
    During this Congress, the Committee was pleased by the 
Administration's tacit acceptance of the draft foreign 
assistance measure that became the foundation of this bill. The 
Committee expresses its appreciation to the current 
Administrator of AID, J. Brian Atwood, for laying the 
foundation for cooperation between the Administration and the 
Congress on this legislation.
    In the 106th Congress, the Committee directs the 
Administration to return to its practice of submitting requests 
for foreign assistance authorization legislation to the 
Congress. The Committee directs that the Administrator should 
report to the International Relations Committee and the Foreign 
Relations Committee on the outlines of this request no later 
than January 15, 1999.
    Subsection (b) details the materials to be included in the 
CPD, including the ``rationale and direct U.S. national 
interest'' served by the funding request, a description of how 
each program or contribution supports the objectives of the FAA 
or AECA, a description of the planned country, regional or 
centrally-funded programs or contributions to international 
organizations and programs for the coming fiscal year.
    The Committee notes that the CPD has proved of little use 
in the presentation or management of the foreign assistance 
program. Under the mandate provided by this section and the 
Government Performance and Results Act (``the Results Act''), 
the Administration shall have an opportunity to improve the 
presentation of the foreign assistance program budget request 
in the CPD to highlight: (1) clarity, (2) objectives, and (3) 
results.
    This subsection also continues the ``Green Book'' 
requirement for reporting the number of years and total 
bilateral and multilateral funding (including loans and 
guarantees) provided under the FAA or AECA for each recipient 
country since 1946. The Committee notes that the Green Book 
report details many countries that have received foreign 
assistance for many, if not all of the years since 1946. By 
implementing the subsection described below and the Results 
Act, the Committee expects that the Administrationwill put 
forward plans that do not provide for continued traditional development 
assistance beyond 2026--the 80th anniversary of the modern foreign 
assistance program. Conversely, the Committee expects that security, 
relief and emergency aid of some kind will always be necessary tools of 
future U.S. Presidents.
    Subsection (c) contains language passed by the House in the 
104th Congress as part of H.R. 1561. This provision (the ``Hyde 
Amendment'') requires the President to make a determination for 
each country for which bilateral development assistance is 
requested for the coming fiscal year. This determination shall 
estimate the year in which the country will no longer receive 
bilateral development assistance. As required by the bill, 
these dates will be included in the CPD submitted as part of 
the budget. The Committee directs that the CPD, including these 
dates, be submitted in unclassified form.
    Finally, subsection (c) defines ``Development Assistance'' 
as assistance under the FAA's Development Assistance (Chapter 
1, part 1), Development Fund for Africa (Chapter 10), FREEDOM 
Support aid for the former Soviet Union (Chapter 11), and SEED 
Act funding for Eastern Europe.
    Sec. 302.--Limitation on Government-to-Government 
Assistance. An early version of this language passed the House 
during the last Congress as part of H.R. 1561. It has been 
heavily modified. In March of 1995, the Vice President 
committed the U.S. to provide 40 percent of AID's funding 
through Private and Voluntary Organizations (``PVOs''). Under 
subsection (a), the Congress recommends that the President 
provide ``an increasing level allocated to cooperatives and 
PVOs'' since fiscal year 1995.
    Subsection (b) defines ``private and voluntary 
organization'' as a private, non-governmental organization 
which:
          (1) is organized under the laws of a country,
          (2) received funds from private sources,
          (3) operates on a not-for-profit basis with tax-
        exempt status (if applicable),
          (4) is voluntary in that it received voluntary 
        contributions of money, time or in-kind support from 
        the public, and
          (5) is engaged or intends to be engaged in voluntary, 
        charitable, development or humanitarian assistance 
        activities.
    Subsection (c) requires AID to submit a report to the 
Congress on the amount of funding being channeled through PVOs. 
The report should use FY95 as a baseline and should report to 
the Congress on how the Agency will comply with the Vice 
President's commitment that 40% of U.S. grants and contracts 
will be channeled through NGOs. This should include assistance 
to the Newly Independent States, Eastern Europe and the 
Economic Support Fund.
    Sec. 303.--Micro- and Small Enterprise Development Credits. 
Sections 303 and 304 contain a modified version of the text of 
the Microenterprise Act (H.R. 3546) that passed the House and 
was reported favorably by the Senate Foreign Relations 
Committee during the second session of the 104th Congress.
    Section 304 replaces the current law's section 108 of the 
FAA that governed the Private Sector Revolving Fund. This 
funding section became outdated following the 1990 enactment of 
the Credit Reform Act.
    Under subsection (a), Congress makes certain findings 
supporting micro- and small enterprise and cooperative 
development programs.
    Subsection (b) authorizes the President to provide 
assistance to micro- and small enterprises lacking full access 
to credit through:
          (1) loans and guarantees,
          (2) training programs for lenders, and
          (3) training programs for micro- and small 
        entrepreneurs.
    Subsection (c) authorizes $1.5 million for FY 1998 and FY 
1999 to provide loans and guarantees and $500,000 in each of 
those fiscal years for the training of lenders and 
entrepreneurs. These amounts are available until expended.
    Sec. 304.--Microenterprise Development Grant Assistance. 
Section 304 authorized loans, guarantees and training. This 
section governs grants to micro- and small enterprise 
activities to be made out of Development Assistance, FREEDOM 
Support, and SEED Act funds. It adds a new section to the FAA, 
section 108A, which authorizes AID to provide grant assistance 
for credit and other assistance for microenterprises in 
developing countries.
    Subsection (a) directs assistance through U.S. and 
indigenous PVOs, credit unions, cooperative development 
organizations and other governmental and non-governmental 
organizations. Under this subsection, approximately one-half of 
credit assistance shall be used for poverty lending. The 
Committee directs AID develop accounting systems carefully for 
credit assistance used for poverty lending with special 
accounting to keep track of loans made under $300.
    This lending (1) shall meet the needs of the very poor 
members of society, particularly poor women and (2) should 
provide loans of $300 or less in 1995 U.S. dollars. The 
subsection also recommends that the AID Administrator support 
technical support for field missions, strengthen intermediary 
organizations and share information.
    Subsection (b) directs the Administrator to establish, in 
accordance with the Results Act, a monitoring system that 
establishes performance goals, performance indicators, and 
recommendations for adjusting assistance to enhance performance 
and the impact on the very poor, especially women. Given the 
enactment and implementation of the Results Act, the Committee 
believes these actions are already required under current 
statute.
    Sec. 305.--Private Sector Enterprise Funds. Section 305 
passed the House during the 104th Congress as part of H.R. 
1561. This section authorizes the establishment of enterprise 
funds to support private sector growth using the model of the 
SEED Act.
    Currently, the President has the authority to establish 
enterprise funds in Eastern Europe and the former Soviet Union. 
While the record of some of these Funds leaves considerable room for 
improvement, the Committee supports the general concept of Enterprise 
Funds as a way to move the foreign assistance program away from 
outdated government-to-government aid to aid that directly helps build 
a private sector, wealth-producing economies.
    Subsection (a) authorizes the establishment of new 
enterprise funds as a way of fostering private sector 
development. Given the importance of private sector 
development, funds may be made available for such Funds 
notwithstanding any other provision of law except sections 502B 
(dealing with human rights) and 490 (dealing with anti-narcotic 
activities).
    Subsection (b) makes any country eligible for assistance 
under part I of the FAA for a Fund to be established under the 
terms provided in the SEED Act for Poland and Hungary. Should 
the President wish to establish Funds in SEED or FREEDOM 
Support countries, he would have to use the authorities of 
those Acts.
    Subsection (c) sets the authorities under the SEED Act for 
Polish and Hungarian Funds as the model for establishing new 
enterprise funds.
    Subsectin (d) requires annual reports from such Funds. 
Subsection (e) allows funding for these Funds to come from the 
Development Assistance, Development Fund for Africa or ESF 
accounts. Funding from the Development Fund for Africa may only 
support enterprise funds in Africa.
    Sec. 306.--Development Credit Authority. Section 306 adds a 
new section 107A to the Foreign Assistance Act of 1961, and is 
intended to reform development credit assistance authorities 
and broaden the Administrator's authority to finance 
development assistance with credit authority under the credit 
reform rules of the Federal Credit Reform Act of 1990.
    The general authority to use credit assistance for any of 
the purposes of part 1 of the Act is not intended to change the 
economic assistance priorities and objectives of the Act. Such 
authority merely will allow for more rational choices about the 
appropriate funding tools--be they loans, loan guarantees or 
grants.
    Subsection 107A (a) authorizes the use of loans, loan 
guaranties and other forms of credit to meet development 
assistance goals where the borrowers are deemed ``sufficiently 
creditworthy'' and the development purposes can be achieved. 
The Committee is concerned that AID has not yet boosted its 
credit review and management capabilities to fully implement 
this new authority. The Committee has received assurances from 
AID and OMB that this authority will not be exercised until 
those capabilities are sufficient to ensure the prompt and full 
payment of any loans or guarantees made under this section.
    Subsection 107 (b) indicates priority sectors for the use 
of credit assistance including the micro-enterprises, small 
businesses and urban, energy and environmental sectors. The new 
omnibus credit authority is called the ``Development Credit 
Authority''.
    Subsection 107 (c) authorizes the transfer of $13 million 
made available under Development Assistance, Development Fund 
for Africa, SEED and ESF funds to pay for the costs of credit 
activities under this section as the term ``costs'' is defined 
in the Federal Credit Reform Act of 1990. Such funds, once 
appropriated to a particular geographic region, must be used in 
the same region. Congressional notifications are required in 
advance of the transfer of funds under this section. Up to 
$1,500,000 of the $13,000,000 in funds authorized to be 
transferred may be used for administrative expenses. In 
addition, to cover administrative expenses of implementing 
guaranties already issued or outstanding under Sections 221-223 
of the Act, $6,000,000 is authorized to be appropriated in each 
of the next two fiscal years.
    Subsection 107A (d) contains general provisions applicable 
to the new Development Credit Authority. Included in 
subparagraph (5) is the requirement that AID's Administrator 
determine that a loan has a ``reasonable'' prospect for 
repayment. By ``reasonable'', the Committee defines the terms 
as ``commercially'' reasonable, i.e., standards a private 
sector lender would use and not generally ``reasonable'' under 
which many government loans have not been repaid.
    Included in subparagraph (6) are provisions for determining 
the true cost of credit activities for purposes of assuring 
under the Federal Credit Reform Act that credit assistance is 
managed on a sound financial basis. The cost of sovereign risk 
assistance, i.e., loans to foreign governments, will be 
estimated using the same system (Interagency Country Risk 
Assessment System) used by all Executive Branch agencies and 
departments.
    The costs of non-sovereign risk assistance, i.e., lending 
to private sector and other entities that are not governments, 
will be determined exclusively by reference to the policies and 
practices of private sector financial institutions. The 
Administrator shall consult with United States private sector 
debt-rating institutions prior to establishing risk assessment 
standards and methodologies. The Committee expects AID to 
adhere to the recommendations of the private sector debt-rating 
institutions extremely closely.
    The Committee is concerned about lending to private sector 
and other non-governmental entities where the assessment of 
risk and costs of loans and guarantees is more difficult. 
Therefore, in addition, in non-sovereign risk situations where 
the role of public sector financial institutions is greater 
than 49% in the anticipated financing (i.e., real private 
sector lenders are not the majority party and governments are 
driving the transaction), the Administrator is required to use 
the cost and risk assessment of the principal private sector 
co-financiers (including risk, interest rates, fees, security 
arrangements, etc.,) and establish the true cost of credit 
assistance under this section in a manner that exactly reflects 
their behavior. The Committee expects that AID will not provide 
any credits or guarantees to non-sovereign parties without true 
private sector co-financiers. A true private sector co-
financier is one that is owned and controlled by at least 51% 
private interests. Should the Committee find that AIDE is 
providing loans or guarantees to non-sovereign parties without 
private co-financing, the Committee will use its notification 
power to block such transactions prior to deleting this 
authority in future legislation.
    The Committee also understood that $3 million of the 
authorized $13 million would be for the Urban and Environment 
Program.
    Sec. 307.--Foreign Government Parking Fines. A version of 
section 307 passed the House in the 104th Congress as part of 
H.R. 1561. Similar sections are regularly part of annual 
appropriations acts. This section adds New York City to the 
list of jurisdictions covered under this section.
    This section adds a new section to the prohibitions section 
of the FAA torequire the Secretary of State to withhold 110 
percent of the unpaid fully adjudicated parking fines owed to the 
District of Columbia, Virginia, Maryland, New York and New York City. 
This section will take effect at the end of fiscal year 1998 and would 
apply to any fiscal year thereafter.
    Section 308.--Withholding United States assistance to 
countries that aid the government of Cuba. Section 308 requires 
the President to withhold assistance under the Foreign 
Assistance Act of 1961 to any foreign government that provides 
economic, development, or security assistance for, or engages 
in nonmarket based trade with, the government of Cuba. 
``Nonmarket based trade'' is specifically defined in the 
section. The President may waive this provision if it is 
important to the national security of the United States. The 
Committee expects that the Executive Branch will apply this 
section vigorously and will consult with the Committee as it 
makes determinations under this section.

Title IV--Defense and Security Assistance

            Chapter 1--Narcotics Control Assistance
    Sec. 401.--Authorization of Appropriations. Section 401 
authorizes $230 million for each of fiscal year 1998 and 1999 
for international narcotics control purposes. This fully funds 
the President's request for fiscal year 1998.
    Sec. 402.--Additional Requirements Relating to Assistance. 
Section 402(a) amends the type of assistance cut off in the 
case of decertifying a country under the International 
Narcotics Control chapter of the Foreign Assistance Act. 
Section 402(a) excludes from the definition of assistance that 
is cut off: (1) International Military Education and Training 
(IMET); and (2) sales or financing provided for narcotics-
related assistance under the Arms Export Control Act following 
notification in accordance with the procedures applicable to 
reprogramming notifications under section 634A of the Foreign 
Assistance Act. Section 402(b) provides that these changes will 
be effective on or after the date of enactment of this Act.
    Under current law, U.S. assistance to a major drug 
trafficking or producing country is cut off if the President 
does not certify that country as cooperating fully with the 
United States, or taking adequate steps on its own, to achieve 
full compliance with the United Nations Convention Against 
Illicit Traffic in Narcotic Drugs and Psychotropic Substances 
and does not provide a vital national interest waiver. IMET and 
FMF financing as well as sales under the FMS program are among 
the types of assistance that are cut off.
    The certification law as written can create a ``Catch 22'' 
situation for a nation decertified without a national interest 
waiver: counter narcotics-related military assistance and 
training is denied to the security forces in a decertified 
country despite the fact that such assistance can, in some 
instances, be critical to the efforts of a country to meet the 
criteria and objectives of the law in order to be subsequently 
certified a year later.
    As an example, in Colombia today the U.S. cannot provide 
FMF or sell defense articles and services under the FMS program 
or provide IMET assistance to this key ally in the fight 
against drugs without using a section 614 waiver. In 
particular, the prohibition on sales under the FMS program has 
made it very cumbersome to maintain adequately the numerous 
pieces of U.S. military equipment previously granted or sold to 
the Colombian security forces. In addition current law 
prohibits funds from the Department of State's counternarcotics 
account from being used to provide lethal assistance (e.g. 
ammunition and armaments).
    Under this provision, the President is no longer precluded 
from providing FMF, FMS or IMET counternarcotics-related 
assistance. It is the Committee's view that such assistance 
should be provided to a decertified country's security forces 
if the lack of such assistance is undermining that country's 
efforts to meet U.S. and international counter narcotic goals. 
It is the view of the Committee that this is the case with 
respect to Colombia and therefore the Committee expects the 
President to provide such assistance to Colombia upon enactment 
of this Act.
    Sec. 403.--Authority to Withhold Bilateral Assistance and 
Oppose Multilateral Development Assistance for Major Illicit 
Drug Producing Countries,Drug-Transit Countries, and Money 
Laundering Countries. Section 403 rewrites section 490 of the Foreign 
Assistance Act. It repeals the requirements in current law (1) to 
certify annually to the Congress whether or not major drug producing 
and drug transiting countries have cooperated fully with U.S. anti-drug 
efforts during the previous year; and (2) to impose sanctions 
automatically against decertified countries unless the President 
certifies to the Congress it is vital to the national interest not to 
impose sanctions.
    Section 403(a) amends Section 490(a) of the Foreign 
Assistance Act to state that for every country required to be 
identified in the International Narcotics Control Strategy 
Report under Section 489(a)(3) of the Foreign Assistance Act, 
the President must, to the extent the President considers it 
necessary to achieve the purposes of the International 
Narcotics Control chapter of the Foreign Assistance Act, take 
one or more of the following actions: (1) withhold from 
obligation and expenditure any or all U.S. assistance allocated 
each fiscal year for each such country; (2) instruct the 
Secretary of the Treasury to instruct the U.S. Executive 
Director of each multilateral development bank to vote, on or 
after March 1 of each year, against any loan or other 
utilization of the funds of their respective institution to or 
for any such country.
    Section 403(a) then amends Section 490(b) of the Foreign 
Assistance Act to require that in determining whether to take 
one or more of these actions, the President must consider the 
extent to which (1) the country has met the goals and 
objectives of the U.N. Convention Against Illicit Traffic in 
Narcotics Drugs and Psychotropic Substances; accomplished the 
goals described in an applicable bilateral narcotics agreement 
with the United States or a multilateral agreement; reached 
agreement or is negotiating in good faith to reach agreement, 
to ensure that banks and other financial institutions of the 
country maintain adequate records of large U.S. currency 
transactions; reached agreement, or is negotiating in good 
faith to reach agreement, to establish a mechanism for 
exchanging adequate records on international currency 
transactions in connection with narcotics investigations and 
proceedings; and taken legal and law enforcement measures to 
prevent and punish public corruption, especially by senior 
government officials, that facilitates the production, 
processing, or shipment of narcotic and psychotropic drugs and 
other controlled substances, or that discourages the 
investigation or prosecution of such acts. The President also 
must consider the extent to which (2) such actions will promote 
the purposes of the International narcotics Control chapter of 
the Foreign Assistance Act and affect other U.S. national 
interests.
    Section 403(a) next amends Section 490(c) of the Foreign 
Assistance Act by requiring the President to consult with the 
Congress on the status of counter narcotics cooperation between 
the United States and each major illicit drug producing 
country, major drug transit country, or major money laundering 
country. The purpose of these consultations are to facilitate 
improved discussion and understanding between the Congress and 
the President on U.S. counter narcotics goals and objectives 
with regard to the identified countries. To carry out such 
consultations, the section requires that the President or 
senior officials the President designates, meet with Members of 
Congress four times a year for discussion and consultations and 
whenever time sensitive issues arise.
    Finally, Section 403(a) defines the term ``multilateral 
development bank'' to mean the International Bank for 
Reconstruction and Development, the International Development 
Association, the Inter-American Development Bank, the Asian 
Development Bank, the African Development Bank, and the 
European Bank for Reconstruction and Development.
    Section 403(b) makes certain conforming amendments.
            Chapter 2--Nonproliferation, Antiterrorism, Demining and 
                    Related Programs
    Sec. 411.--Nonproliferation, Antiterrorism, Demining and 
Related Programs. Section 411 establishes a new account under 
which funds are authorized for the Nonproliferation and 
Disarmament Fund (NDF), antiterrorism, demining, the 
International Atomic Energy Agency (IAEA) and the Korean Energy 
Development Organization (KEDO). The section authorizes $110 
million for fiscal year 1998 and $111 million for fiscal year 
1999. Each program within the account is authorized at the 
Administration's requested level for fiscal year 1998 except 
for demining activities which is funded at $10 million for each 
fiscal year. It is the Committee's intent to secure additional 
resources to fully fund the Administration's request for 
demining activities.
    With respect to the Nonproliferation and Disarmament Fund 
(NDF), it is theintent of the Committee to narrow the purposes 
for use of this fund. Specifically, while the Committee strongly 
supports the activities of the NDF and is generally pleased with its 
work, funds in the NDF may no longer be used for defense conversion. 
Additionally, the Committee urges that the NDF funds be utilized for 
projects and activities other than seminars and conferences. Further, 
in view of the Committee's long-standing position that the NDF should 
be utilized to address world-wide proliferation problems, the rewritten 
NDF authority now requires a national interest waiver to use funds for 
nonproliferation activities in the former Soviet Union (FSU). In 
putting into place such a waiver, the Committee expects it to be used 
sparingly; it is the Committee's expectation that the clear majority of 
the funds made available to the NDF will be used to support projects 
and activities outside of the FSU, since other funds are available for 
the FSU through the Cooperative Threat Reduction (CTR) program.
    This section also specifically prohibits amounts made 
available for the NDF from being used to implement U.S. 
obligations, including assessed costs and voluntary 
contributions, pursuant to bilateral or multilateral arms 
control treaties or nonproliferation accords, including the 
payment of salaries or expenses. In short the NDF may not be 
used to pay for shortfalls in funding for assessed costs or 
voluntary contributions for arms control treaties or 
nonproliferation accords, or for ``PrepCom'' type activities, 
or costs to host review conferences, etc. It should be clear 
that the purpose of this prohibition is not to prohibit 
activities that are consistent without treaty obligations but 
rather only to prohibit the NDF as the source of funding for 
such activities.
    This section further stipulates that not less than $15 
million shall be available for each of fiscal years 1998 and 
1999 to carry out the purposes of the NDF. The Committee 
further directs, that of these amounts, not more than $5 
million in fiscal year 1998 and $3 million in fiscal year 1999 
may be used for export control programs. Further this section 
repeals section 504 of the FREEDOM Support Act which was 
previously the authority for the NDF.
    With respect to export control programs, the Committee 
believes that over the long-run the NDF should not serve as the 
source of funding for export control programs and therefore has 
imposed ceilings on the amount of NDF funds that may be sued 
for these programs. Nonetheless, the Committee believes that 
the world-wide improvement of export controls is an important 
priority for U.S. nonproliferation policy. Therefore, the 
Committee directs the Administration to devise a long-term 
program to fund U.S. efforts to improve such export controls. 
The State, Commerce, and Defense Departments (and other 
relevant agencies) shall agree to a program that balances their 
expertise and financial obligations, so that funding and 
responsibility for export controls do not continue to be a 
topic of bureaucratic friction.
    Of the sums authorized to be appropriated for demining 
activities in this section, it is the intent of the Committee 
that part of these funds shall be available to fund demining 
activities in Central America under the auspices of the 
Organization of American States (OAS). The Committee recognizes 
the important contribution being made by the OAS and the Inter-
American Defense Board in training indigenous armed forces in 
the effective and safe removal of land mines from areas of past 
conflict in rural Costa Rica, El Salvador, Guatemala, Honduras, 
and Nicaragua.
    The Committee is encouraged that a number of private 
voluntary organizations (PVOs) are initiating and implementing 
mine action programs in some of the most heavily-mined 
countries. The Committee recognizes the importance of these 
programs and their integral relationship to the successful 
rehabilitation, resettlement and long-term development of 
communities after the cessation of conflict.
    The Committee supports use of the funds authorized for 
demining activities for humanitarian mine action and demining 
programs of private voluntary organizations (PVOs), including 
programs in mine awareness and education, mapping and marking, 
and the training of deminers and mine clearance efforts.
    The Committee has authorized $30 million for each of the 
fiscal years 1998 and 1999 for the Korean Peninsula Energy 
Development Organization (KEDO) which the Administration has 
identified as a high priority. Such funds are limited to the 
provision of heavy fuel oil and administrative expenses of KEDO 
associated with the implementation of the Agreed Framework.
    The Committee believes that full funding should be supplied 
for KEDO in order to support continued implementation of the 
Agree Framework. Full funding for KEDO at this juncture also 
sends an important signal of continued U.S. support to our 
allies--South Korea and Japan--as they determine whether to 
provide funds to begin construction of the light waterreactors 
promised under the Agreed Framework.
            Chapter 3--Foreign Military Financing Program
    Sec. 421.--Authorization of Appropriations. Section 421 
authorizes $3,318,000,000 for fiscal year 1998 and 
$3,274,250,000 for fiscal year 1999 for both grant and loan 
Foreign Military Financing (FMF) under section 23 of the Arms 
Export Control Act. The FY98 recommendation is $7.25 million 
below the Administration's request ($15 million has been 
transferred from FMF to the new account established in Chapter 
2). The Committee has not fully funded the following FMF 
accounts: the Enhanced International Peacekeeping Initiative 
(funded at $2 million); the African Crisis Response Initiative 
(funded at $3 million); East Africa Regional (funded at $4.75 
million).
    Sec. 422.--Assistance for Israel. Section 422 earmarks $1.8 
billion in grant Foreign Military Financing (FMF) under section 
23 of the Arms Export Control Act for Israel for each of fiscal 
years 1998 and 1999. Terms of assistance are identical to 
previous years, i.e., expedited disbursement, and $475 million 
may be used by Israel for offshore procurement for advanced 
weapons systems. This fully funds the President's request for 
fiscal year 1998.
    Sec. 423.--Assistance for Egypt. Section 423 earmarks $1.3 
billion in grant Foreign Military Financing (FMF) under section 
23 of the Arms Export Control Act for Egypt for each of fiscal 
years 1998 and 1999. This fully funds the President's request 
for fiscal year 1998.
    Sec. 424.--Authorization of Assistance to Facilitate 
Transition to NATO Membership under the NATO Participation Act 
of 1994. Section 424 earmarks $50,900,000 for grant and loan 
Foreign Military Financing (FMF) under section 23 of the Arms 
Export Control Act pursuant to the authorities of the NATO 
Participation Act of 1994 for Poland, Hungary, the Czech 
Republic and Slovenia for each of fiscal years 1998 and 1999. 
In each fiscal year the Committee intends that $30.9 million be 
utilized for grant military assistance (allocated among the 
four countries at the levels requested by the President) and 
$20 million for the subsidy costs to support a direct military 
assistance loan program.
    It is the Committee's intent that the $39.1 million in FMF 
be used to support the Partnership for Peace program. Combined 
with the $50.9 million authorized under this section, this 
fully funds the President's request for fiscal year 1998 for 
military assistance to Central and Eastern Europe.
    Sec. 425.--Loans for Greece and Turkey. Section 425 
authorizes not more than $12,850,000 in fiscal year 1998 for 
Foreign Military Financing (FMF) under section 23 of the Arms 
Export Control Act for the subsidy cost to support a direct 
military assistance loan program for Greece of $122.5 million 
and not more than $33,150,000 in fiscal year 1998 for the 
subsidy cost to support a direct military assistance loan 
program for Turkey of $175 million. This fully funds the 
President's request for fiscal year 1998.
    No military assistance loans for Greece or Turkey are 
authorized for fiscal year 1999.
    Sec. 426.--Limitation on Loans. Section 426 prohibits any 
Foreign Military Financing (FMF) under section 23 of the Arms 
Export Control Act from being available for the subsidy costs 
for direct military assistance loans in fiscal year 1999 to any 
country which has a Inter-Agency Country Risk Assessment 
Systems (ICRAS) rating of less than grade C-. It is the 
Committee's understanding that the Defense Security Assistance 
Agency had in place a long standing policy, which was waived 
for FY97, to prohibit military assistance loans to any country 
with below a C-ICRAS rating. This section would statutorily 
impose such a limitation effective in fiscal year 1999.
    Sec. 427.--Administrative Expenses. Section 427 authorizes 
$23,250,000 for Foreign Military Financing (FMF) under section 
23 of the Arms Export Control Act for the necessary expenses 
for the general costs to administer military assistance and 
sales programs. This fully funds the President's request for 
fiscal year 1998.
            Chapter 4--International Military Education and Training
    Sec. 431.--Authorization of Appropriation. Section 431 
authorizes $50,000,000 for each of fiscal years 1998 and 1999 
for the International Military Education and Training (IMET) 
program. This fully funds the President's request for fiscal 
year 1998.
    Sec. 432.--IMET Eligibility for Panama and Haiti. Section 
432 makes Panama and Haiti eligible for IMET assistance.
            Chapter 5--Transfer of Naval Vessels to Certain Foreign 
                    Countries
    Sec. 441.--Authority to Transfer Naval Vessels. Section 441 
grants the Secretary of the Navy the authority to transfer by 
sale 14 ships to 8 countries--Brazil (1 ``HUNLEY'' class 
submarine tender), Chile (1 ``KAISER'' class oiler), Egypt (3 
``KNOX'' class frigates and 3 ``PERRY'' class frigates), Israel 
(1 ``NEWPORT'' class tank landing ship), Malaysia (1 
``NEWPORT'' class tank landing ship), Mexico (1 ``KNOX'' class 
frigate), Taiwan (2 ``KNOX'' lass frigates), and Thailand (1 
``NEWPORT'' class tank landing ship). The sale of these ships 
will increase the assets of the U.S. Treasury by $162.6 
million.
    Sec. 442.--Cost of Transfers. This section provides that 
any cost associated with transferring ships under this 
legislation will be charged to the recipient country.
    Sec. 443.--Expiration of Authority. Section 443 stipulates 
that the authority to transfer ships under this legislation 
expires after two years.
    Sec. 444.--Repair and Refurbishment of Vessels in U.S. 
Shipyards. Section 444 requires, to the maximum extent 
possible, that repair and refurbishment work associated with 
these ships shall be done in U.S. shipyards.
            Chapter 6--Indonesia Military Assistance Accountability Act
    Sec. 451.--Short Title. Section 451 establishes the title 
of this chapter.
    Sec. 452.--Findings. Section 452 sets out congressional 
findings with respect to Indonesia. Specifically, the Committee 
finds that the Indonesian political system remains strongly 
authoritarian, that the Government of Indonesia has not allowed 
independent trade unions to function freely, has arrested labor 
leaders, and has harassed a wide range of civil society 
organizations. The Committee also finds that the Indonesian 
armed forces continue to carry out torture and other human 
rights violations in East Timor, Irian Jaya and other parts of 
Indonesia. The Indonesian authorities must improve their human 
rights performance if our bilateral relations are to continue 
to improve. The Committee notes that the 1996 Nobel Peace Prize 
was won by Bishop Belo and Jose Ramos Horta for their tireless 
efforts to find a solution to the East Timor conflict. The 
Committee notes that the Congress suspended the International 
Military and Education Training (IMET) program for Indonesia 
following the November 12, 1991 shootings by Indonesian 
security forces in Dili, East Timor. The Committee notes that 
former Secretary of State Christopher testified that the United 
States has a strong interest in an orderly transition of power 
in Indonesia, one that recognizes the country's pluralism. The 
Committee also finds that the U.S. has important economic, 
commercial and security interests in Indonesia that will only 
be strengthened by democratic development that promotes 
political pluralism and respect for human rights.
    Sec. 453.--Limitation of Military Assistance to the 
Government of Indonesia. Section 453 states that because of its 
concern about the human rights situation in Indonesia, the 
Congress has determined that the United States shall not 
provide military assistance and arms transfer programs to the 
Government of Indonesia during a fiscal year unless the 
President determines and certifies to the Congress that the 
Government of Indonesia has met various human rights condition 
spelled out in Section 453 of the Act. The President may waive 
this certification requirement if he determines and notifies 
the Congress that an emergency exists requiringsuch assistance 
and arms transfers, or that providing such assistance and transfers is 
in the national interest. The provisions of this Act shall apply only 
to military assistance and arms transfers made pursuant to agreements 
entered into in fiscal years beginning after the date of the Act's 
enactment.
    Sec. 454.--United States Military Assistance and Arms 
Transfers Defined. Section 454 defines the terms ``military 
assistance'' and ``arms transfers'' in this Act as small arms, 
crowd control equipment, armored personnel carriers, and such 
other items that can be commonly used in direct violation of 
human rights. The term military assistance all shall include 
training provided under chapter 5 of part II of the Foreign 
Assistance Act of 1961, relating to International Military 
Education and Training or ``IMET.'' Expanded-IMET (assistance 
under section 541 of such Act and commonly referred to as E-
IMET) is not included under the term ``military assistance'' in 
this Act and such training may continue.
            Chapter 7--Other Provisions
    Sec. 461.--Excess Defense Articles for Certain European 
Countries. Section 461 extends the authorization for fiscal 
years 1998 and 1999 for the Department of Defense to expend 
funds for packing, crating, handling and transporting (PCH&T) 
of excess defense articles provided under section 516 of the 
Foreign Assistance Act to countries that are eligible for to 
participate in the Partnership for Peace program and that are 
eligible under the SEED Act. These countries include Albania, 
Bulgaria, the Czech Republic, Estonia, FYROM, Hungary, Latvia, 
Lithuania, Poland, Romania, Slovakia and Slovenia.
    Sec. 462.--Transfer of Certain Obsolete or Surplus Defense 
Articles in the War Reserve Allies Stockpile to the Republic of 
Korea. Section 462, which is identical to a provision enacted 
into law in the FY94-95 Foreign Relations Authorization Act 
(P.L. 103-236), authorizes the transfer to Korea of obsolete or 
surplus equipment, tanks, weapons, repair parts or ammunition 
which is currently in the war reserve stockpile in Korea. This 
section requires that the value of the concessions negotiated 
by the Secretary of Defense must be at least equal to the fair 
market value of the items transferred. This section also 
includes a notification to the Congress identifying the items 
to be transferred to Korea and the concessions to be received.
    Sec. 463.--Additional Requirements Relating to Stockpiling 
of Defense Articles for Foreign Countries. Section 463 
authorizes $60 million for fiscal year 1998 for additions to 
stockpiles of DoD articles in Korea ($40 million) and in 
Thailand ($20 million).
    Sec. 464.--Delivery of Drawdown by Commercial Transport 
Services. Section 464 amends section 506 of the Foreign 
Assistance Act to authorize the Department of Defense and other 
U.S. Government agencies to utilize commercial transport 
services rather than U.S. Government assets for the transport 
of defense articles, services or education and training if the 
costs of commercial transport are less than the costs of U.S.G. 
assets. This section also requires the President to provide to 
the Congress a report detailing all defense articles, defense 
services and military education training delivered to countries 
or international organizations upon the completion of such 
delivery. The report shall also include whether there were any 
savings realized by utilizing commercial transportation.
    Sec. 465.--Cash Flow Financing Notification. Section 465 
directs the Administration to notify the Committee pursuant the 
procedures applicable under 634A of the Foreign Assistance Act 
of any letter of offer and acceptance or other purchase 
agreement that is in excess of $100 million to any country 
approved for cash flow financing under section 25 of the Arms 
Export Control Act.
    Sec. 466.--Multinational Arms Sales Code of Conduct. 
Section 466 directs the President within 180 days to convene 
negotiations with all Wassenaar Arrangement countries on a 
multinational arms sales code of conduct. Such negotiations 
should be convened by the President at an appropriate level of 
representation. This section further sets out the purpose of 
such negotiations and requires the President to report to the 
Congress, within 1 year of enactment of the provision, on the 
status of such negotiations.

Title V--Economic Assistance

            Chapter 1--Economic Support Assistance
    Sec. 501.--Economic Support Fund. The Economic Support Fund 
(``ESF'') is the State Department's most flexible tool for 
providing support, either as cash assistance or as project-
based aid for the support of key allies and activities directly 
in support of U.S. national security. This section authorizes 
the appropriation of $2,388,350,000 in FY98 and $2,350,600,000 
in FY99.

                                 cyprus

    The Committee is deeply concerned about the continuing 
division and foreign military occupation of Cyprus and the 
recent increase in tensions on the island. The Committee 
considers that the status quo on Cyprus is unjust, unacceptable 
and increasingly unstable, and an urgent effort by the 
international community is accordingly required to resolve it. 
The Committee strongly encourages the Administration to follow 
through on its declared intention to play a ``heightened role'' 
in promoting a just resolution of the Cyprus problem.
    The Committee firmly believes that it is in the interest of 
the United States to launch an early substantive initiative to 
achieve a peaceful, just, viable and lasting solution on the 
basis of international law, democratic principles, respect for 
human rights and the provisions of relevant U.N. Security 
Council Resolutions. These resolutions, most recently, 1092/96 
of December 23, 1996, appropriately define the basis for such a 
settlement as, ``a state of Cyprus with a single sovereignty 
and international personality and a single citizenship, with 
its independence and territorial integrity safeguarded, and 
comprising two politically equal communities as described in 
the relevant Security Council Resolutions in a bi-communal and 
bi-zonal federation, and that such a settlement must exclude 
union in whole or in part with any other country or any form of 
partition on secession.''
    The current military situation on Cyprus, in particular the 
large number of Turkish occupation troops, is also a constant 
source of tension and instability, both on the island and in 
the wider region. Recent foreign arms transfers and the threat 
of increased armaments on Cyprus are also of concern to the 
Congress. The Committee reaffirms its view, most recently 
embodied in H. Con. Res. 42 and in the 104th Congress, that the 
security concerns of all parties concerned can most effectively 
be met with the complete withdrawal of all foreign occupation 
forces from the island and the total demilitarization of 
Cyprus, to be replaced by alternative internationally 
acceptable and effective security arrangements as negotiated by 
the parties. Such security arrangements will strengthen peace 
and stability and in the region, be to the benefit of all the 
people of Cyprus, and enhance prospects for a lasting 
resolution of the problem.
    The prospect of Cyprus accession to the European Union (EU) 
can also serve as a catalyst for efforts to reach a 
comprehensive settlement. Negotiations for Cyprus' accession 
are set to begin six months after the conclusion of the EU 
Intergovernmental Conference (which is expected to end in June 
of this year). This prospect provides a positive dynamic and 
window of opportunity for a solution and in the coming year.
    Cyprus' accession to the EU, as well as a just and viable 
Cyprus settlement, will be significant economic, political and 
security benefit to all Cypriots. A Cyprus solution will also 
remove a point of contention between Greece and Turkey and can 
allow the prospect of full normalization of the often tenuous 
Greco-Turkish relationship, bringing greater stability to the 
Eastern Mediterranean and directly benefiting U.S. security 
interests. The prospects of reaching a lasting settlement on 
Cyprus are facilitated through increasing bicommunal contact, 
cooperation and reconciliation. The traditionally allocated $15 
million from the Economic Support Fund each year for Cyprus is 
used for projects involving such bicommunal activities and thus 
plays a significant role and in promoting prospects for peace 
on Cyprus. The Committee strongly recommends that the annual 
allocation of $15 million for Cyprus be continued for both 
fiscal years 1998 and 1999.

                         eastern mediterranean

    It is in the national interest of the United States to hold 
all countries, particularly U.S. allies, to internationally 
accepted standards of conduct. The United States, the European 
Union and many countries have publicly underlined the need to 
protect peace and stability in the Eastern Mediterranean region 
through the adherence to international treaties and the respect 
for territorial integrity and internationally recognized 
borders of all countries. Those who question the application or 
interpretation ofinternational treaties should have recourse to 
a proper international judicial or consensual body according to 
established international legal practice.
    The United States and other countries have also expressed 
strong public opposition to the use of force or the threat of 
force by any country to resolve such matters. It is essential 
to peace and stability in the Eastern Mediterranean that all 
countries abide by these internationally accepted standards of 
conduct.
    Sec. 502.--Assistance for Israel. Section 502 requires that 
not less than $1,200,000,000 of ESF funds be provided to Israel 
in fiscal year 1996 and fiscal year 1997. It requires a cash 
transfer and early disbursement. It also requires that the 
President ensure that the amount of funds provided as a cash 
transfer does not cause an adverse impact on the total level of 
nonmilitary exports from the United States to Israel. These 
provisions are consistent with recent appropriations Acts.
    A fundamental element of United States foreign policy has 
been support for a strong and secure Israel. Israel remains the 
most reliable strategic ally of the United States in the Middle 
East, and a vital partner in the U.S. pursuit for peace in the 
Middle East. There must be no doubt about the United States' 
commitment to Israel. The continuation of U.S. assistance to 
Israel provides that clear signal, in addition to providing 
Israel with the means it needs to defend itself in an 
increasingly dangerous environment. The successes of the past 
few years through the peace process, including a historic peace 
treaty between Israel and Jordan and progress on the Israel/
Palestinian front are the best evidence of the effectiveness of 
our consistent support of Israel through our foreign assistance 
programs.
    The Committee notes the substantial progress which has been 
made by the African American Israelite Community in Dimona, 
Israel. The small community continues to enjoy support in the 
Committee and in the Congress. Several Members have visited the 
community in Dimona and have supported its efforts in working 
with the Government of Israel to resolve citizenship and 
housing problems. The Committee urges the United States and 
Israel to continue to work together to help the community deal 
with these issues.
    Section 503.--Assistance for Egypt. Section 503 requires 
that not less than $815,000,000 of Economic Support Funds be 
provided for Egypt in fiscal years 1998 and 1999. Provisions in 
subsection (b) add the additional requirement, traditionally 
carried in annual appropriations Acts, requiring that the 
President ensure that there is no adverse impact on the total 
level of nonmilitary exports from the United States to Egypt as 
required in the recent Foreign Operations appropriations Acts.
    The Committee has adopted new language this year, in 
subsection (c), noting that assistance to Egypt is based in 
great measure on Egypt's continued implementation of the Camp 
David accords and the Egyptian-Israeli peace treaty, that Egypt 
has disappointed the Congress with respect to its fulfillment 
of those obligations, particularly by its failure to meet fully 
its commitment to establish with Israel ``relationships normal 
to states at peace with one another'', and in its recent 
support for reimposing the Arab economic boycott. Support for 
future funding levels of assistance will be determined largely 
on whether Egypt fulfills its obligations to develop normal 
relations with Israel and to promote peace with Israel and 
other critical United States interests.
    Nevertheless, Egypt remains a vital U.S. ally in the Middle 
East and its partner for peace in the region. The Committee 
reasserts its commitment to Middle East peace and the important 
role Egypt must play in achieving a comprehensive and permanent 
peace.
    U.S. aid to Egypt is intended to both bolster this long-
standing ally as well as to provide access to the Egyptian 
market for U.S. firms and exports. AID funds provided to Egypt 
support U.S. exports to Egypt as well as contracts in Egypt for 
U.S. firms. The dual purpose of U.S. foreign aid is exemplified 
by the telecommunications sector in Egypt, where AID has funded 
projects for the last 15 years. AID funding of such projects 
helped encourage the entry of U.S. telecommunications firms 
into the Egyptian market in the early 1980's and this is now a 
significant commercial market for such U.S. firms and U.S. 
exports. These projects have greatly increased the efficiency 
of Egypt's telecommunications infrastructure, which, in turn, 
will help promote the growth of business in Egypt. AID's 
funding of the telecommunications sector, therefore, has 
ramifications far beyond that one sector.

                       Egyptian Patent Situation

    The Committee recognizes the great strides that Egypt has 
made in undertaking the necessary structural reforms of its 
economy, which will benefit the Egyptian people. A critical 
element in the development of a climate that will attract 
foreign investment and the transfer of advanced technology--
both of which are required for a successful strategy of 
economic development and job creation--is a world class system 
of strong intellectual property protection, especially for 
patents.
    In particular, the Committee urges that Government of Egypt 
to enact a law that will provide meaningful and immediate 
patent protection for pharmaceutical products and notes that 
the draft patent law that is currently under consideration by 
the Government of Egypt could serve, with some adjustments, as 
the basis for such protection.
    Section 504.--International Fund for Ireland. Section 504 
provides that not more than $19,600,000 in each of fiscal years 
1998 and 1999 from ESF may be provided for the International 
Fund for Ireland (IFI). The use of United States funds is 
conditioned on recipients agreeing to adhering to the MacBride 
equal opportunity principles.
    Unemployment, economic hardship, and discrimination fueled 
sectarian violence in Northern Ireland for decades. The problem 
of discrimination in Northern Ireland remains a serious concern 
to the Committee. The contributions of the U.S. Government to 
the IFI must be used in the most effective ways possible to 
help alleviate hardship and to create new opportunities. 
Moreover, this must be accomplished in a manner which does not 
perpetuate unfair hiring practices, and disperses U.S. 
assistance in an evenhanded manner.
    This provision establishes clear and reasonable 
requirements for recipients of United States funds in order to 
carry out the clear intention of the Congress that U.S. funds 
be put to fair and effective use to create the greatest 
economic opportunity. These goals are served by the twofold 
thrust of the provision:
          First, the provision requires that U.S. IFI funds 
        must be directed to areas with the highest rates of 
        unemployment without reference to sectarian 
        demographics. U.S. funds must be primarily directed to 
        activities justified by the economic needs of the 
        residents of distressed communities and not on the 
        basis of sectarian quotas.
          Second, the provision also requires recipients to 
        agree in writing to make reasonable, good faith efforts 
        to implement fair employment practices, consistent with 
        the terms of economic justice, as defined.
    The provision thus helps ensure that the assistance 
provided by American taxpayers will be effectively and justly 
put to use to bring some measure of economic advancement and 
economic justice to the people of Northern Ireland.
    The provision accomplishes these goals without imposing 
burdensome requirements or compromising fundamental American 
values of fairness, equal justice and responsible use of U.S. 
public funds. It also does not put American companies in 
Northern Ireland at a disadvantage if they are already in 
voluntary compliance with the MacBride Principles.
    The fair employment principles set forth in the provision 
are drawn from and closely follow the MacBride Principles, and 
are also reflective of some of the recent changes on the ground 
in Northern Ireland. Several of these principles are already 
embodied in the British Fair Employment Act (FEA) and none of 
these principles impose any requirement inconsistent with 
existing law and policy.
    The establishment of these conditions for U.S. assistance 
merely brings the manner of U.S. participation into harmony 
with prevailing legal trends and international business 
practices in Northern Ireland.
    Based on testimony before the Committee, it is evident that 
U.S. assistance should be carefully targeted at the areas of 
greatest need, based upon levels of unemployment and the 
changes incorporated in the Anglo-Irish Agreement of 1986, to 
accomplish that worthy goal.
    In the Committee's opinion, the increased U.S. assistance 
and the clear need for targeted investment consistent with the 
principles of economic justice establish a need for greater 
involvement and oversight by the U.S. observer to the IFI.
    In extending U.S. oversight and certain restrictions to the 
IFI, the Committee does not intend to extend the other 
restrictions and requirementsof the Foreign Assistance Act to 
IFI activities.
    Subsection (a) earmarks $1.2 billion in FY98 and FY99 ESF 
funds for assistance to Israel. Subsection provides the 
assistance will be given on a grant basis and will be disbursed 
within thirty days of the enactment of the Foreign Operations 
Appropriations bill or October 31, whichever is later.
    Nothing in the bill requires quotas or reverse 
discrimination or mandates their use.
    Sec. 505.--Assistance for Training of Civilian Personnel of 
the Ministry of Defense of the Government of Nicaragua. Section 
505 provides an explicit narrow exception to section 531(e) (22 
U.S.C. 2346a) of the FAA to allow funds authorized by this Act 
to be made available for assistance to and training for 
civilian personnel of the Ministry of Defense of the Government 
of Nicaragua, provided that the Secretary of State determines 
and reports to Congress that such assistance is necessary to 
establishing a civilian ministry capable of effective oversight 
and management of the Nicaraguan armed forces and to ensuring 
respect for civilian authority and human rights.
    It is the intent of the Committee that expanded-
International Military Education and Training funds authorized 
by this Act can also be made available to civilian personnel in 
the Ministry of Defense if such training will advance 
professionalization of the armed forces and respect for 
civilian authority and human rights.
    This section shall not be construed to authorize assistance 
or training directly to active duty members of the National 
Army of Nicaragua. The Committee expects that the Secretary of 
State will produce a comprehensive plan for supporting the 
professionalization of the security forces (army and civilian 
police) of Nicaragua. It is the intent of the Committee that 
normalized military-to-military relations between the United 
States armed forces and the Nicaraguan National Army shall not 
be established and support for the National Police should not 
be initiated until substantial progress is made in implementing 
the recommendations of the Tripartite Commission which call for 
holding members of the former Sandinista Popular Army and 
Police accountable for well-documented human rights abuses.
    Sec. 506.--Availability of amounts for Cuban Liberty and 
Democratic Solidarity (LIBERTAD) Act of 1996 and the Cuban 
Democracy Act of 1992. Section 506 authorizes a minimum of 
$2,000,000 in fiscal year 1998 and $2,000,000 in fiscal year 
1999 for programs and activities under the Cuban Liberty and 
Democratic Solidarity Act of 1996 and the Cuban Democracy Act 
of 1992. The Committee strongly supports funding for programs 
and activities of the Cuban Liberty and Democratic Solidarity 
Act of 1996 and the Cuban Democracy Act of 1992 designed to 
provide support for building civil society and democracy in 
Cuba. The Committee further express its concern that in fiscal 
year 1997 funds were reprogrammed from this account.
            Chapter 2--Development Assistance

            Subchapter A--Development Assistance Authorities

    Sec. 511.--Authorization of Appropriations. This section 
authorized the appropriation of the following amounts:

------------------------------------------------------------------------
                                              Fiscal year               
                             -------------------------------------------
                                      1998                  1999        
------------------------------------------------------------------------
Development Assistance......        $1,203,000,000        $1,203,000,000
Development Fund for Africa                                             
 Earmark....................           700,000,000           700,000,000
Newly Independent States....           839,900,000           789,900,000
Eastern Europe..............           471,000,000           337,000,000
Intern-American Foundation..            20,000,000            15,000,000
African Development                                                     
 Foundation.................            11,500,000            10,000,000
------------------------------------------------------------------------

                 American Schools and Hospitals Abroad

    The Committee recognizes the important contributions to 
U.S. foreign policy interests which are made by the 
institutions funded by the American Schools and Hospitals 
Abroad (``ASHA'') program. The Committee expects AID to 
continue a competitive ASHA awards program on a long-term 
basis. The Committee does not accept AID's proposal to 
eliminate the FY 1997 grant cycle, and it expects the agency to 
award grants through the program in 1997 and in 1998 at a level 
of $15 million in each year. Due to current problems with the 
availability of funds, the Committee will not object if AID 
elects to award these grants on a calendar year rather than a 
fiscal year basis.
    The Committee has long supported the important work of 
several highly distinguished American educational and medical 
institutions which operate abroad, and it recommends that 
priority be given to funding them in both the 1997 and 1998 
grant cycles at levels not less than in the past. They include: 
the American University of Beirut, the Feinberg Graduate School 
(FGS) of the Weizmann Institute of Science , the Hadassah 
Medical Organization, and several institutions in Greece.

                                 Yemen

    The Republic of Yemen is the most populous country on the 
Arabian peninsula, but is the least developed. Yemen also has 
an extremely high birth rate that threatens to cripple Yemen's 
economic growth, which, when combined with the poverty, the 
high illiteracy rate, and lack of employment opportunities, 
could well adversely impact the region in the years to come if 
these factors are not substantially modified. The Committee 
notes with great regret that AID closed its mission in Yemen 
after 37 years, and that a modest program aimed at maternal/
child health will end in FY98. The Committee also notes that 
the Peace Corps ceased its operations there in 1994 due to the 
brief civil war.
    However, despite these and other obstacles, Yemen is the 
only country on the peninsula with a freely elected parliament 
with suffrage for all men and women, having successfully 
completed elections once again in April, 1997. The Committee 
commends Yemen for this achievement, and expresses its support 
for strengthened government institutions including the 
Parliament.
    Because of critical U.S. national interests in the region, 
and the importance of securing the Arabian Peninsula as a 
peaceful, stable, and economically vibrant region, the 
Committee strongly recommends that AID continue a modest level 
of funding in support of maternal/child health, the development 
of civil society, and government institution building. The 
Committee also requests that the Peace Corps seriously 
reconsider returning to Yemen to resume its activities at the 
earliest possible opportunity.

                            Disabled People

    AID should take into consideration the needs of people with 
disabilities in existing programs; and AID should consider the 
needs of people with disabilities, as appropriate, in the 
design, implementation, and evaluation of future programs.

                      Development Fund for Africa

    Subsection (b) reauthorizes the Development Fund for 
Africa. The subsection amends Section 497 of the Foreign 
Assistance Act of 1961 to require that of the amounts available 
for development assistance for fiscal years 1988 and 1989, not 
less than $700,000,000 for each of the fiscal years 1998 and 
1999 shall be available, in addition to amounts otherwise 
available for such purposes, to carry out the Development Fund 
for Africa chapter.

                                 Sudan

    The Committee strongly recommends the exercise of 
appropriate waivers to deliver development assistance to 
southern Sudan through non-governmental organizations, in areas 
that are outside the control of the Government of Sudan and 
where there is inter-factional reconciliation and substantive 
evidence of respect for and protection of human rights and 
principles of humanitarian assistance. Such development 
assistance should be used for capacity building of local 
institutions to increase accountability, enhance local 
management of crisis response and reduce intra-south conflict.

     Aid to the Newly Independent States of the Former Soviet Union

    The President has sought this Committee's approval of a 
significant increase in assistance to the New Independent 
States of the former Soviet Union. The Committee has carefully 
considered the President's initiative in this area, which is 
supported by several arguments. First, that increased funding 
should be provided to combat corruption and crime in the twelve 
New Independent States, a growing problem that will have 
serious and damaging consequences for the United States and 
other democratic states if not adequately addressed. Second, 
that increased funding should beprovided to bolster a growing 
class of small businessmen in the twelve New Independent States seeking 
to plant the seeds for the emergence of a true middle class in those 
fledgling states. Third, that more funding should be provided to 
continue those programs supporting reforms in the Caucasus and Central 
Asian states of the former Soviet Union.
    The Committee is pleased that the Administration has taken 
to heart the concerns expressed earlier by the Congress with 
regard to the growing corruption and crime in the New 
Independent States as well as a tendency on the part of this 
Administration to neglect the interests of the smaller New 
Independent States in the Caucasus and Central Asia in favor of 
a focus on the United States relations' with Russia.
    The Committee authorized appropriations totaling $839.9 
million of the $900 million request for the New Independent 
States in Fiscal Year 1998 and $789.9 million for Fiscal Year 
1999 for the ``Partnership for Freedom'' NIS reform program. 
The Committee's decision does not fully match the President's 
request. The authorized funding level is however a significant 
increase in Fiscal Year 1998 above the current Fiscal Year 1997 
funding level of $625 million for the New Independent States 
and a significant increase above the level of funding the 
Congress had anticipated for this assistance program in Fiscal 
Years 1998 and 1999.

         Russian Pressure on the Other Newly Independent States

    The Committee is troubled by growing evidence of Russian 
actions in the other New Independent States intended to 
undermine their sovereignty and reassert Russia's historical 
dominance over those states. In this regard, the Committee is 
concerned with rationales provided by this Administration that 
the United States cannot oppose any surrender of sovereignty by 
any of the New Independent States if such a surrender is 
``voluntary'' on their part. The vulnerability of the smaller 
New Independent States to Russian political, military and 
economic pressure, and the growing evidence that such pressure 
has been employed by Russia against those states, makes it 
highly questionable that any such surrender of sovereignty to 
Russia directly or through the Russian-dominated Commonwealth 
of Independent States organization would be truly voluntary on 
the part of other New Independent States.
    The Committee specifically notes evidence of Russian arms 
supplies and support for separatist ethnic movements in other 
New Independent States; allegations of Russian support for coup 
attempts in other New Independent States; use of economic 
pressure by Russia against the other New Independent States to 
gain political and military concessions from those states; and 
Russian manipulation of energy exports by several of the other 
New Independent States employing the Russian-controlled 
pipeline system to limit those states' hard currency revenues. 
The Committee is disappointed with this repeated 
rationalization by the Administration of the Russian effort to 
``reintegrate'' the former Soviet states.

                                Ukraine

    The Committee is pleased with the direction of Ukrainian 
foreign policy. Ukraine has had to make difficult decisions to 
relinquish nuclear weapons inherited from the former Soviet 
regime; to forego large contracts to help Russia build nuclear 
reactors in Iran, to negotiate a bilateral charter with the 
NATO Alliance and to endorse Poland and other states' admission 
into NATO, and to work against the acquisition of weapons of 
mass destruction by rogue regimes like Iran, Iraq and Libya. 
The Ukrainian government has demonstrated a high degree of 
consideration for America's foreign policy interests at a time 
when Russia, in contrast, flaunts those interests. Through such 
decisions, Ukraine is indeed constructing its new ``strategic 
partnership'' with the United States. The Committee strongly 
encourages the government of Ukraine to declare ``persona non 
grata'' those individuals from Libya who may be allowed to 
reside in Ukraine for purposes of procurement of technology or 
equipment that might violate the international sanctions on 
Libya.
    The Committee is encouraged by the direction of Ukraine's 
foreign policy and democratic reforms. Conversely, it 
recognizes the need for greater progress in addressing 
corruption and protecting American investment in Ukraine. The 
Committee directs the Administration to limit aid to the 
Government of Ukraine to those officials who by their actions 
have demonstration support for market reforms.
    The Committee supports continued assistance to Ukraine at 
the level of $225 million authorized in Fiscal Year 1997 for 
each of the Fiscal Years 1998 and 1999.
    The Committee agrees with the President's proposed 
allocation of assistance to the New Independent States under 
the FREEDOM Support Act program as presented to the Congress in 
budget documents for Fiscal Years 1998 and1999, taking into 
consideration the limitations and conditions on increased aid to Russia 
and the support for continuing current levels of assistance to Ukraine. 
Any decrease in funding for this account shall be taken from the 
regional account for the New Independent states rather than from the 
proposed allocations for each of those countries.

                                Armenia

    The Committee reiterates its support for the strong bond 
between the U.S. and Armenia. The Committee is also encouraged 
by progress in Armenia on economic reform.
    However, the Committee is concerned by the flawed 
Presidential election of last September. The Government of 
Armenia should recommit to development of participatory 
democracy that includes all elements of Armenian society.

                                Belarus

    The Committee strongly endorses the actions taken by the 
President to oppose the growing dictatorship of President 
Alexander Lukashenko in Belarus. The Committee agrees that the 
suspension of unobligated Nunn-Lugar assistance to Belarus was 
warranted by the government's violation of democratic norms and 
human rights. The Committee notes the recent acts of repression 
by the Lukashenko government, including repression of the media 
and of political opposition, suppression of the legitimate 
parliament and supreme court, and arbitrary taxation of tax-
exempt organizations.
    The Committee remains concerned over the September 1995 
shooting-down by Belarusan military forces of an American 
civilian balloon participating in a competition, resulting in 
the deaths of two United States citizens. It remains concerned 
by that callous and unnecessary act, and encourages the 
President to ensure that a truly proper review of the causes of 
that attack has been conducted.
    The Committee calls on the President to coordinate with 
other democratic states in Europe to support the reintroduction 
of democratic government in Belarus. While the Committee 
supports continued aid to non-governmental organizations, 
independent media, democratic movements and humanitarian needs 
in Belarus, it recommends that aid (including international 
loans to Russia) be curtailed if top officials of the Russian 
government continue to support the activities of Alexander 
Lukashenko. The Committee believes that the fate of democracy 
in Belarus will have consequences for the other New Independent 
States.

           School of Management at St. Petersburg University

    The Committee notes the work of the School of Management at 
St. Petersburg University to raise matching funds for any 
assistance it may receive from the Agency for International 
Development for its educational work in training Russian 
businessmen and entrepreneurs. The Committee commends such 
efforts and encourages AID to consider support where 
appropriate to institutions such as this that are willing to 
match any U.S. Government funding.

               Ukrainian Academy of Public Administration

    The Committee encourages the Agency for International 
Development to review the work of the Ukrainian Academy of 
Public Administration to ascertain whether that institution 
might play a constructive role in an expanded program in 
support of public administration in Ukraine. The Committee 
suggests, consistent with appropriate selection processes, that 
AID review the on-going work of the Research Triangle Institute 
in Ukraine in the area of municipal government to learn whether 
such work might be extended into an expanded program in support 
of proper public administration at all levels of the Ukrainian 
government in conjunction with the Academy of Public 
Administration and drawing on that institution's in- kind 
resources.

                           Eurasia Foundation

    The Committee strongly supports the work of the Eurasia 
Foundation and encourages the Agency for International 
Development to continue to support the Foundation's work. The 
Committee believes that the Foundation's work in Ukraine is of 
particular importance to the success of grassroots reform in 
that country.

                               Exchanges

    The Committee recommends that the Administration continue 
funding for the Russian, Eurasian and East European Research 
and Training program (Title VIII) from the two accounts for the 
New Independent States andEastern Europe at $4 million in each 
of the Fiscal Years 1998 and 1999. Two-thirds of such funding could be 
derived from the New Independent States account with the remainder 
derived from the account for Eastern Europe.
    Training, exchanges, and partnerships between the United 
States and the nations of Eurasia and Central Europe continue 
to be an essential part of the process of sustaining democracy 
and serve the interests of the United States.
    The Committee continues to support United States assistance 
for other graduate fellowship and professional training 
projects in both regions, such as those that provide 
opportunities for graduate study at United States institutions 
for outstanding graduate students and young professionals from 
Central and Eastern Europe.

                     Corruption and Organized Crime

    The Committee is greatly concerned by the growing reports 
of corrupt and criminal activities in the New Independent 
States and Eastern Europe, particularly those that implicate 
government agencies and officials in such activities. It is 
increasingly apparent that large sums of capital, diverted from 
government budgets and from revenues earned from the sale of 
various commodities and goods are being dispatched to private 
bank accounts around the world. At the same time, the threat to 
American investors in the New Independent States and Eastern 
Europe posed by such corruption and criminal activity has 
grown. The murder in November 1996 of American investor Paul 
Tatum in Moscow is linked by some observers to his 
disagreements with individuals linked to the Moscow city 
government. It has been reported by FBI Director Louis Freeh 
that businessmen in Moscow are forced to pay an estimated one-
third of their revenues to parties that extort them. Critics 
describe many Moscow city officials as corrupt, intending to 
siphoning funds from government and business to their benefit.
    The Committee has been disappointed to learn that such 
corruption has blossomed in Ukraine as well as Russia and other 
states of the region. The Committee is pleased with the 
positive trend in Ukrainian foreign policy, but expects the 
government of Ukraine to take effective actions to ensure that 
American investors are treated appropriately and protected from 
extortion and other criminal or corrupt acts.
    The Committee has authorized assistance for Ukraine and 
supported the President's requested allocation of such 
assistance to Ukraine in the expectation that the Ukrainian 
government will take effective steps to resolve those cases in 
which American-owned assets in Ukraine have been subjected to 
arbitrary legal and regulatory obstructions that, if not 
reversed, are tantamount to confiscation, or subjected to 
criminal extortion or fraud. The Committee also expects the 
government of Ukraine to agree to the creation of a 
comprehensive and effective campaign to fight corruption in 
Ukraine in cooperation with U.S. government agencies, and, as 
deemed necessary and appropriate by the President of the U.S., 
utilizing resources and assistance provided by the United 
States.
    The committee continues to have substantial concerns about 
the serious adverse impact of organized crime spreading through 
the region of Eastern Europe and the New Independent States and 
ultimately to the United States and other democratic countries 
around the world. It is the committee's intent that for each of 
Fiscal Years 1998 and 1999 no less than a combined $50 million 
should be made available, utilizing funds under the Support for 
East European Democracy Act program and the FREEDOM Support Act 
program, for law enforcement support efforts (including 
provision of equipment, such as communications, computers and 
administrative support materials), and police training similar 
to the very successful program run at the International Law 
Enforcement Academy (ILEA) in Budapest, Hungary.

                         Public Administration

    Committee encourages the Agency for International 
Development to intensify its programs to improve public 
administration and transparency in government agencies and 
bureaucracies in the New Independent States and Eastern Europe, 
with a particular programmatic focus in Ukraine. It is the 
Committee's hope that an intensified effort to introduce 
American principles of public administration and to improve 
transparency in government agencies will contribute in general 
to the fight against corruption. The Committee is encouraged by 
the work of the Research Triangle Institute in Ukraine in the 
area of municipal finance and management and by the work of New 
York University with the Ukrainian Academy of Public 
Administration to encourage improved public administration in 
that country.

                           Independent Media

    The Committee notes the trend in Russia towards increasing 
control of the larger broadcast media and print publications by 
profitable monopolies with close links to top levels of the 
Russian government. The Committee views this trend as both a 
potential threat to true freedom of speech in Russia and a 
potential support for corrupt activities that might otherwise 
be publicized by a truly free press. The Committee strongly 
encourages the Agency for International Development to take 
this trend into account and to review its programs to redouble 
efforts to promote truly independent media.
    Because the sustainability of a non-state-controlled media 
is critical during this period of transition, the Committee 
supports continued assistance for independent broadcast media. 
This should include capacity building through training in 
commercial management and basic journalism, as well as access 
to quality licensed programming and development of an 
independent media infrastructure; all of which are necessary to 
support continued economic and political reforms.
    The Committee is encouraged by the progress of the Agency 
for International Development's media assistance work in 
Russia, and specifically by the progress being made in the 
print media through the Russian American Press and Information 
Center (``RAPIC''). The Committee recommends continuation of 
RAPIC-based initiatives, and continues to support investment in 
a print media program within AID and the coordinating office 
for democratic initiatives within the Department of State.

                               Judiciary

    The Committee encourages the Agency for International 
Development and the Department of State to increase their 
efforts to help create effective and independent judiciaries in 
Eastern Europe and the New Independent States. The Committee 
also encourages those agencies to increase their programs to 
reform and improve criminal justice agencies in Eastern Europe 
and the New Independent States.

          Tax Reform, Contract Enforcement and Commercial Law

    The Committee encourages the Agency for International 
Development and the Treasury Department to continue its efforts 
to support tax reform in the New Independent States, which is a 
vital part of the effort to ensure that businesses in those 
states do not turn to criminal elements for protection against 
exorbitant and arbitrary taxation by government. The Committee 
also encourages AID to review its programs to ensure that 
adequate efforts are being undertaken to promote adequate legal 
enforcement of business contracts in the NIS. The absence of 
such contract enforcement is clearly contributing to the growth 
of criminal activity.

                     American University in Yerevan

    The Committee encourages the Agency for International 
Development to review US Government support for the American 
University in Yerevan to determine the extent of financing that 
might be required to allow the University to become self-
sustaining. The Committee notes the use of assistance funds in 
Eastern Europe to allow such institutions to become self-
sustaining. Any assistance funds used for such purposes in 
Armenia should be derived from the assistance provided to that 
country under the account for the New Independent States.

                          SEED Act Assistance

    The Committee has authorized $471 million of the total of 
$492 million requested for our assistance programs under the 
Support for East European Democracy Act program in Fiscal Year 
1998. $337 million is authorized for Fiscal Year 1999.

                             Funding Levels

    The Committee is encouraged that the AID has begun phasing 
out our assistance programs in Eastern Europe, with our 
assistance program in Estonia beginning to close down in the 
current Fiscal Year. The Committee understands the need for 
continued, higher levels of assistance to countries such as 
Bulgaria, Romania, the Former Yugoslav Republic of Macedonia, 
Albania and Slovakia. It is also possible that assistance will 
be required for economic and political reforms in Serbia and 
Montenegro once the necessary reforms have been adopted. Given 
those anticipated needs, the Committee encourages AID to 
continue to phase out our assistance programs in the region 
wherever considerable progress has already been achieved in 
reforms and particularly wherever other donor states or 
organizations can continue with any further assistance for 
reforms that may be required.

                        North Atlantic Assembly

    The Rose-Roth Program is an initiative of the North 
Atlantic Assembly, NATO's parliamentary assembly, undertaken at 
the suggestion of the US delegation. The aim of the program is 
to strengthen the development of parliamentary democracy in 
Eastern European countries by using the resources of the 
Assembly to train participants in the practices and procedures 
of parliamentary institutions. The program is directly 
beneficial in helping establish ties between program 
participants and the Assembly, and to promote a sense of 
partnership at the legislative level. The governments of 
participating East European countries have acknowledged the 
value of this program in helping develop the staff structure of 
their respective parliaments.
    The United States has financially supported the Rose-Roth 
program through the account for Eastern Europe. This financial 
support has made the program viable and also helped attract 
donations from other members of the North Atlantic Assembly. 
Many countries also support Rose-Roth through in-kind 
donations. The Committee strongly encourages the Department of 
State and AID to continue their financial support for this 
worthy initiative.

                                 Kosovo

    The Committee strongly supports the Administration's 
request of $12 million to provide humanitarian assistance to 
Kosovo. Although the US has now established a presence in 
Kosovo through the opening of the United States Information 
Agency office in Pristina, the majority Albanian community 
continues to endure considerable repression. These funds should 
be utilized to ameliorate to the greatest extent possible the 
suffering resulting from the lack of access to medical care and 
other hardships brought about by this unacceptable human rights 
and political situation.
    The United States government should insist that 
international human rights monitors be permitted to return to 
Kosovo. The presence of such monitors until July of 1993 had a 
demonstrably positive effect on the level of repression 
inflicted by Serb authorities on the Kosovars, and their return 
would have a positive effect on the outlook of those in Kosovo 
who may believe that their plight has been forgotten by the 
international community.

                             Aid to Bosnia

    The Congress supported the President's request in FY97 for 
$200 million for economic assistance to Bosnia. Because of 
pressing needs to support vital reforms in other countries 
receiving assistance through the Eastern Europe account, 
however, the Committee believes that the disproportionately 
high level of assistance to Bosnia cannot be sustained 
indefinitely. Other countries in Europe should be expected to 
continue supporting economic reconstruction in Bosnia. In view 
of the slow progress in implementing the civilian aspects of 
the Dayton Accords, the U.S. should endeavor to ensure that its 
economic assistance is targeted on programs that help promote 
reconciliation between the Bosnian ethnic communities.

                           Bosnia Debt Relief

    The Committee supports the Administration's request for the 
use of SEED funds for Bosnian debt relief. The Committee 
strongly believes that funds for such debt relief should come 
from resources previously justified to Congress for assistance 
programs in Bosnia, and should not come from other country 
programs in Central or Eastern Europe.

                                Bulgaria

    The Committee is interested in seeing the newly-elected 
government in Bulgaria expeditiously address those instances in 
which American investors or bank account holders may have been 
defrauded or suffered the loss of their monies through theft. 
The Committee is particularly discouraged that no thorough 
investigation of such criminal acts involving Bulgarian banks 
has yet been completed. The Committee requests a report from 
the Secretary of State within 180 days after enactment of this 
Act concerning the extent of Bulgarian government efforts to 
address American investors' and bank account holders' loss of 
funds through fraud or theft. While it wishes to support the 
new government in Bulgaria, the Committee notes that improper 
or criminal treatment of American investors and bank account 
holders could have a detrimental effect on support for 
assistance to Bulgaria.

                               Lithuania

    The Committee strongly encourages the government of 
Lithuania to act forcefully and responsibly to bring to justice 
any in Lithuania who may have collaborated with the Nazi regime 
to carry out the Holocaust against Jews and others. The 
Committee directs the Lithuanian government'sattention to the 
allegations against Alexandras Lileikis and asks for a thorough 
investigation and, if appropriate, prosecution in response to such 
allegations.

                              competition

    The Committee is concerned over the AID's extensive use of 
non- competitive procurement procedures in the United States 
assistance programs for Eastern Europe and the New Independent 
States. The Committee's concern in this regard has been 
heightened by the recent use of non-competitive procedures for 
program procurement in our programs in Ukraine and elsewhere in 
the New Independent States, two to three years after the 
creation of AID missions and projects in such states.
    In documents provided at the Committee's request, AID has 
noted the use of non-competitive procedures for 84% of all 
grants awarded in the Eastern Europe and New Independent States 
accounts since the inception of aid programs for those regions, 
for a total of $1.22 billion in grants and cooperative 
agreements awarded under non-competitive procedures. A further 
12% of contracts for those two assistance accounts were 
procured using non-competitive procedures, totaling $195.8 
million in funds. The Committee notes that a further $744.5 
million in aid funds transferred to our Enterprise Funds in the 
two regions are, by nature, non-competitive awards of funds.
    The Committee strongly encourages an end to this heavy 
reliance on such non-competitive procedures for the future, 
given the maturation of United States assistance programs in 
the region and the improved ability of AID to conduct 
competitive procurement.
    Sec. 512.--Child Survival Activities. This section formally 
establishes a Child Survival and Disease Fund at $600 million 
in FY98 and FY99, including the U.S. contribution to UNICEF.
    Under this section, section 104(c) of the FAA is rewritten 
to give further definition and clarity to Child Survival, 
Health, Basic Education for Children and Disease Prevention 
Programs. The Committee notes the leadership of the 
Appropriations Committee and specifically its Foreign 
Operations Subcommittee Chairman, Mr. Callahan, in creating 
this account.
    Subsection (c)(1)(A) defines seven major categories of 
activities ``whose primary purpose is to reduce child morbidity 
and child mortality which have a substantial, direct, and 
measurable impact on child morbidity and child mortality'' 
[emphasis added]. Under the mandate of this section and the 
Results Act, the Committee is clearly giving emphasis to 
programs that directly save children's lives.
    The Committee recognized two significant ways to boost the 
effectiveness of the U.S. contribution toward achieving the 
1990 World Summit for Children goal of reducing child mortality 
rates by one-third by the year 2000. First in carry out child 
survival programs, the Committee gave direction to the programs 
that place priority emphasis on those specific activities that 
save children's lives. Second, the Committee recognized the 
gains to be realized by increasing the proportion of child 
survival funding that is programmed through non-profit citizen-
supported PVOs.
    Under subsection (c)(2), the Committee clearly states that 
child survival activities under this subsection shall be 
``primarily devoted'' to these seven ``1(A)'' activities. By 
``primarily devoted'' the Committee means these 1(A) activities 
shall comprise the major component of the Child Survival 
Program.
    Under subsections (c)(1)(B), (C) and (D) the Committee 
provided guidance on five other child survival activities, 
basic education for mothers and children, and disease 
activities that may be funded under this program. One quarter 
of the children in developing countries lack access to a basic 
education, which is the critical factor in decreasing 
children's vulnerability to exploitative labor practices, 
improving future standards of living, and instilling civic and 
democratic values. With regard to diseases, by the year 2000 it 
is estimated that the number of children orphaned by AIDS could 
jump 400% from two million to ten million, posing a threat to 
the well being of these children and placing an enormous strain 
on societies struggling to copes with the ravages of the HIV/
AIDS epidemic.
    The Committee continues to support programs aimed at 
addressing the needs of displaced children and orphans around 
the world. AID has had considerable success in addressing the 
needs of these children through programs funded under the 
Displaced Children and Orphans Fund. The Committee supports 
AID's continued funding for the Displaced Children and Orphans 
fund.
    Subsection (c)(3) requires that funds provided under the 
Development Fund for Africa, FREEDOM Support Act or SEED Act 
shall be spent in those regions for exclusively child survival 
purposes identified in the rewritten section 104(c) of the FAA.
    Subsection (c)(4) provides that the U.S. contribution to 
the United Nations Children's Fund (``UNICEF'') may be made 
from these funds. Of the amounts authorized to be appropriated 
in this account, the Committee intends that $100,000,000 for 
fiscal year 1998 and $100,000,000 for fiscal year 1999 should 
be provided for a contribution in grant form to UNICEF. 
However, this does not preclude AID from providing additional 
funding for specific UNICEF projects, as may be appropriate.
    Subsection (c)(5) recommends that not less than $30 million 
in each of fiscal years 1998 and 1999 should be provided for 
child survival activities through PVOs. Child survival programs 
implemented through PVOs are cost effective, leverage private 
matching funds, and can reach the neediest areas even where AID 
may not have a mission.
    Subsection (c)(6) requires the Administrator of AID to 
report, as part of the CPD required under the rewritten section 
634 of the FAA, on the amounts in the budget request to be 
provided for activities specified under subsections (c)(1)A 
through D. The Committee places special emphasis on reporting 
for funding proposed in the budget for (1)A activities.
    Subsection (c)(7) authorizes the appropriation of $600 
million in fiscal year 1998 and 1999 for programs under this 
section.
    Subsection (c)(8) provides that this section may be 
referred to as the ``Child Survival and Disease Programs 
Fund.''
    Sec. 513.--Requirements of Assistance to the Russian 
Federation. This section limits aid to Russia to the current 
level of $95 million unless the President can determine that 
Russian assistance and cooperation with the Iranian nuclear and 
missile program and the Cuban nuclear program has ended.

                                  Iran

    The Committee is seriously concerned by the lack of 
meaningful progress by the Administration in persuading Russia 
to halt its sale of nuclear reactors to Iran, a state sponsor 
of terrorist organizations that is clearly bent on building 
nuclear weapons. The Committee notes that for several years the 
President, Vice President, and other high-ranking United States 
Government officials have engaged in intensive discussions with 
Russian President Boris Yeltsin, Prime Minister Viktor 
Chernomyrdin, and other high-ranking Russian officials on this 
specific issue and on the general issue of Russia's relations 
with Iran. The United States has offered generous inducements 
to the Russian government in an attempt to halt the sale of 
this nuclear technology and equipment to Iran. Unfortunately, 
Russia continues to deny the veracity of sensitive information 
this Administration has reportedly provided to the Russian 
government on this issue and continues to deny that the Iranian 
government is intent on building nuclear weapons, in part using 
the expertise in nuclear materials handling that will be 
provided by the operation of nuclear reactors.
    The Committee has also noted the allegations concerning 
continuing Russian sales to Iran of advanced conventional 
weapons, ballistic missile technology, and, possibly, other 
advanced weaponry as well. The Committee gives a great deal of 
credence to such allegations and is concerned not only that the 
Russian commitment to halt its sales of conventional weapons to 
Iran by the end of 1999 will not be honored, but that Russia is 
likely engaged in a purposeful campaign of supporting an 
Iranian arms build-up that will eventually have very adverse 
consequences for the deployment of American forces to ensure 
access to the vital Persian Gulf. That arms build-up will have 
detrimental consequences for America's allies in the region as 
well. The Committee notes the positive statements made by 
Russian and Iranian officials regarding their growing bilateral 
relationship at the very time that most European states are 
reassessing their relations with Iran.
    The Committee does not wish to undermine current efforts to 
support ``grass roots'' reforms in Russia, funded at a level of 
$95 million in Fiscal Year 1997. While the Committee has agreed 
to authorize $241.5 million in aid to Russia under the FREEDOM 
Support Act program in Fiscal Years 1998 and 1999 under this 
Act--the amount requested for Russia by the President--it 
intends to limit aid to Russia to that amount, and has 
conditioned all of the increase in aid to Russia above the 
current level of $95 million on thetermination of all Russian 
nuclear and missile cooperation with or sales to Iran.

                                  Cuba

    The Committee has also linked that increase in aid to 
Russia above the current level of $95 million to a full and 
final termination of Russian involvement in the construction of 
unsafe nuclear reactors in communist Cuba.
    In both instances, the Committee sees a clear need to 
insist that Russia honor America's interests. It is the 
Committee's determination that there shall be no increase in 
aid to Russia above current levels until Russia in fact honors 
those American interests.

                                 China

    The Committee adopted a condition on assistance to Russia 
authorized under this Act that would end all aid to Russia in 
Fiscal Years 1998 and 1999 should Russia transfer any SS-N-22 
missile systems to the People's Republic of China. While the 
Committee has provided the President with the authority to 
waive this condition in the national security interest of the 
United States, it has required that, if it is necessary for the 
President to do so, he must reissue such a waiver and provide 
related justifications for such a waiver every six months.
    The Committee intends that the President focus on the 
extremely important issues related to the Russian-Iranian 
relationship and Russia's involvement with nuclear reactor 
construction in communist Cuba. At the same time, however, the 
Committee does have very serious concerns about the proposed 
transfer of such missile systems to communist China, and has 
allowed this waiver only on a six-month basis to underline that 
strong concern. The President should take the opportunity 
provided by this waiver to ensure that the contemplated 
transfer of SS-N-22 missile systems to China are not carried 
out by the Russian government or any Russian entity. If such 
transfers take place, it is unlikely that the Congress will 
view positively the prospects for continued aid to Russia.

                             Other Concerns

    The Committee has avoided placing numerous other conditions 
on the increased aid to Russia, given the need by this 
Administration to immediately focus on the issues of Russia's 
relations with Iran and its continuing flirtation with 
construction of nuclear reactors in communist Cuba. That does 
not mean, however, that the Committee is not greatly concerned 
by other negative trends in Russian foreign policy. The on-
going Russian sales of arms and military technology to the 
People's Republic of China will greatly assist China in placing 
even greater pressure on the democratic government on Taiwan in 
the near future. Russian reactor sales to India appear to 
violate its solemn commitments under the 1992 Nuclear Suppliers 
Agreement. Alleged Russian military sales to Syria, a state 
sponsor of terrorist organizations, require careful monitoring, 
particularly given reports that Iran may guarantee Syrian 
payment for such Russian equipment and technology. Support at 
the highest levels of the Russian government for the 
dictatorship of President Alexander Lukashenko in the New 
Independent State of Belarus and on-going efforts to 
``integrate'' Russia and Belarus should be strongly challenged 
and opposed by the Administration.
    Sec. 514.--Humanitarian Assistance for Armenia and 
Azerbaijan.
    The Committee is concerned to ensure that humanitarian 
assistance reaches those most in need in the countries of the 
Caucuses region. The separatist conflicts in Georgia and 
Azerbaijan and the continuing effects of the 1988 earthquake in 
Armenia presented the international community with a tremendous 
challenge in aiding those in critical need in that region.
    The United States has been generous in responding to the 
needs in the region, providing humanitarian aid to help 
Georgia's refugees from the fighting in the region of Abkhazia, 
providing humanitarian aid to Azerbaijan's one million refugees 
and displaced persons who fled the fighting in the region of 
Nagorno-Karabakh (in spite of the standing prohibitions on 
direct aid to the government of Azerbaijan), and providing 
hundreds of millions of dollars in aid of all types to the 
nation of Armenia.
    During consideration of this Act, the Committee considered 
an amendment that would have revised the means by which US 
humanitarian assistance is provided to refugees and displaced 
persons in the region of Nagorno-Karabakh in Azerbaijan. The 
Committee considered the argument that insufficient US 
humanitarian aid was reaching those most in need in that 
region. The Committee, responding to the Administration's 
opposition to the amendment and relying on information provided 
to it by the Departmentof State regarding US aid reaching the 
region of Nagorno-Karabakh, voted to revise the amendment to call on 
the President to seek the cooperation of the governments of Armenia and 
Azerbaijan in ensuring that humanitarian assistance is made available 
to all those in need within those two countries.
    The Committee also directed the President to report to the 
Congress on the efforts by the United States and other donor 
organizations and states to address the need for humanitarian 
aid throughout Armenia and Azerbaijan.
    The Committee notes the estimate provided by the State 
Department that indicates that approximately $3.5 million in US 
humanitarian aid has reached those in need in the region of 
Nagorno-Karabakh via US contributions to the International 
Committee of the Red Cross. The Committee notes as well that 
only a portion of the total population in Nagorno-Karabakh of 
about 126,000 people consists of refugees and displaced 
persons, and that only a portion of that smaller number of 
people is considered to have critical needs, according to 
information received from the State Department.
    The Committee expects that the report required by this Act 
on the extent of humanitarian needs in the region and US 
efforts to respond to them will be forwarded to the Congress 
and to the Committee within 180 days of enactment of this Act.
    Sec. 515.--Agricultural Development and Research 
Assistance. This section expresses the sense of the Congress 
that: (1) U.S. investment in international agricultural 
development and research has been a critical part of many 
economic development successes; (2) agricultural development 
and research advance food security, thereby reducing poverty, 
increasing political stability, and promoting U.S. exports; and 
(3) AID should increase the emphasis it places on agricultural 
development and research, and expand the role of agricultural 
development and research in poverty relief, child survival, and 
environmental programs
    Sec. 516.--Activities and Programs in Latin America and the 
Caribbean Region and in the Asia and Pacific Region. Section 
514 states that amounts made available for development 
assistance activities and programs in the Latin American and 
the Caribbean region and the Asia and Pacific region should be 
in at least the same proportion to the total amount made 
available as the amount identified in the congressional 
presentation documents for each of the fiscal years 1998 and 
1999, respectively, for each such region is to the total amount 
requested for development assistance for each such fiscal year.
    The Committee is concerned about the precipitous decline in 
funding for development assistance for the Latin America and 
Caribbean region and the Asia and Pacific region. Latin America 
and Asia are priority regions for the United States, 
politically and economically. Fifty percent of the population 
in Latin America and the Caribbean lives below the poverty 
line; in Latin America and the Caribbean, development 
assistance is helping address American concerns about illegal 
immigration and narcotics trafficking by improving the social 
and economic conditions in the region. Development assistance 
is also important to our growing trade relationship with the 
region--last year the Western Hemisphere accounted for 60 
percent of the growth in United States exports. The Asia and 
the Pacific region is home to 60 percent of the world's 
population and 75 percent of the world's poor, therefore 
development assistance to this region is critically important 
and must also be treated as a priority.

                               Guatemala

    The Committee recognizes that bringing a definitive end to 
the last armed conflict in Central America is a priority for 
the United States government. The Committee notes that United 
States officials have pledged $260 million toward the estimated 
$1.9 billion offered by international donors to support the 
peace process and to reconstruct the Guatemalan economy.
    Of the funds authorized to be appropriated under this Act, 
it is the intent of the Committee that the Executive Branch 
will meet its pledge of $25 million in economic support funds 
and not less than $40 million in other funds to be made 
available for each of the fiscal years 1998 and 1999; the 
Committee expects that the United States will continue this 
level of support for the succeeding two fiscal years.

                                 Haiti

    The Committee believes that inadequate progress has been 
since the September 1995 United States intervention to create 
sustainable private sector jobs, restore the rule of law, and 
establish democratic pluralism inHaiti. United States aid 
programs have not accorded sufficient attention to regenerating jobs in 
the assembly sector that were lost during the international embargo, 
and United States aid programs to help Haitian small agricultural 
exporters should be increased markedly.
    United States policy should continue to support the 
privatization of costly and unproductive parastatal 
enterprises; elimination of ``phantom employees'' from public 
sector payrolls; strict standards of accountability for 
international donor assistance; tariff reforms; and effective 
collection of duties and port fees to discourage costly 
smuggling that robs the state of revenues and makes it 
impossible for honest importers to compete.
    The Committee believes that the United States government 
should continue to press the Haitian government to ensure that 
human rights violators are purged from government payrolls and 
to bring persons to justice for political murders to end the 
impunity that has inspired continued violence; United States 
support for activities (personnel, equipment, training, etc.) 
of the Special Investigative Unit, adequate police training, 
and judicial reform should be priorities. It is the intent of 
the Committee that any funds needed to extend the presence of 
the International Civilian Mission in Haiti should be drawn 
only from the funds authorized for Organization of American 
States democracy activities from voluntary contributions to 
international organizations.
    The Committee is concerned that inadequate attention has 
been paid to nurturing pluralism by strengthening Haiti's 
traditional democratic parties. Of the funds authorized to be 
appropriated under the Act, it is the intent of the Committee 
that not less than $750,000 shall be made available in each of 
fiscal years 1998 and 1999 to support activities to promote 
long-term democratic pluralism.
    The Committee also believes that every effort should be 
made to support activities to support the professionalization 
of Haiti's newly constituted Permanent Electoral Council. The 
Committee believes that the independent International 
Foundation for Electoral Systems, which played an indispensable 
role in a series of elections in Haiti in 1996, is uniquely 
suited to support such professionalization.

                               nicaragua

    The peaceful transition of power on January 10, 1997, to a 
president committed to democratic principles, respect for human 
rights, and a free market economy confirms that Nicaragua has 
made great strides toward overcoming a history of dictatorship 
and civil war. Of the funds authorized to be appropriated under 
the Act, it is the intent of the Committee that programs in 
Nicaragua shall be fully funded. Of the funds allocated for 
Nicaragua, the Committee intends that not less than 50 percent 
of this sum shall be expended to support agricultural, economic 
development (including microenterprise credit), housing, 
education, and health care activities in the principal areas of 
resettlement of former members and families of the Nicaraguan 
Resistance who have been demobilized and returned to civilian 
life.
    The Committee acknowledges the unique commitment that the 
United States government has to the successful return to 
civilian life of persons who fought the Sandinista dictatorship 
with the support of the United States government. Therefore, it 
is the intent of the Committee that United States aid programs 
in Nicaragua should focus on urgent development projects in the 
so-called ``ad hoc'' region in the remote mountainous area of 
central and northern Nicaragua.
    The Committee recognizes the extraordinary contribution 
made by the personnel of the International Commission for 
Support and Verification of the Organization of American States 
(CIAV-OEA) since 1990. It is the intent of the Committee that 
such funds authorized by this Act shall be made available as 
necessary to maintain the continued presence of CIAV-OEA in 
Nicaragua until the indispensable human rights monitoring 
activities and network of grassroots ``peace and justice 
committees'' can be transferred efficiently to a new government 
Human Rights Prosecutor. The Committee expects that United 
States funds authorized under this act (including the voluntary 
contribution to OAS democracy programs and development 
assistance funds for Latin America and the Caribbean) shall be 
made available to complement contributions of other donors to 
ensure that ample funding is available for a follow-on OAS 
technical assistance mission. The Committee believes that 
United States aid programs should support the 
professionalization of the Supreme Electoral Council, using the 
independent International Foundation for Electoral Systems to 
the extent possible.

                            caribbean basin

    The Committee considers the promotion of viable democratic 
societies inthe Caribbean Basin to be an important US economic 
and security objective. A principal means of achieving this objective 
has been through the Caribbean Basin Initiative (CBI), which provides 
trade benefits to eligible Caribbean Basin countries.
    Since the CBI was established in 1983 as a way to deter 
communist expansion in the hemisphere, the United States/
Caribbean Basin economic relationship has flourished. Because 
Caribbean countries are so closely linked to United States, 
economic growth in the Caribbean translates directly into 
commercial opportunities for United States firms and workers. 
In fact, the Caribbean Basin, one of the few regions where 
United States exporters consistently post trade surpluses, is 
now the tenth largest market for United States goods and 
services. Moreover, as the economies of the region have grown, 
so too have their democratic institutions and legal frameworks.
    The Committee is aware that the Administration is preparing 
a proposal to expand the United States/Caribbean Basin trade 
relationship further by extending enhanced United States market 
access to CBI countries that meet specific eligibility 
criteria. The Committee believes such a proposal has merit, 
particularly to help prepare the Caribbean Basin countries for 
the trade and commercial disciplines necessary for hemispheric 
trade liberalization. This proposal may also help eligible CBI 
countries recover from the unintended adverse effects that the 
North American Free Trade Agreement may have presented for 
United States/Caribbean Basin trade links.
    The Committee also supports efforts to establish an OPIC 
equity fund for the 24 CBI nations as an additional way to 
promote sustainable, private sector-led growth in the region. 
Presently, many CBI countries have a difficult time attracting 
sufficient private capital to meet their development needs. 
This funding gap has been exacerbated by the repeal in 1996 of 
the Section 936 investment mechanism, which had generated more 
than $2 billion in private sector investment throughout the 
Caribbean Basin during the last decade. The Committee believes 
there is a clear need for an OPIC equity fund, and is aware of 
at least one proposal to establish such a fund using seed 
capital from the Multilateral Investment Fund (MIF).

         governance programs in latin america and the caribbean

    The Committee encourages the continued development of a 
sustainable indigenous capacity by Latin American institutions 
through the LAC Bureau focussing on the protection and 
promotion of human rights, judicial reform, and election 
support. The Committee recognizes that Latin American countries 
share unique regional experiences and characteristics and that 
sensitive governance programs are best handled by persons with 
applicable expertise in the LAC Bureau.
    Anti-corruption activities and decentralization of 
authority encourage public confidence in and support for 
democratic institutions. The Committee encourages the Bureau 
for Latin America and the Caribbean (LAC) of AID to continue to 
fund at planned levels ($1,800,000 in fiscal year 1998) the 
Regional Financial Management Improvement Project, which 
promotes transparency and accountability. Moreover, in light of 
the pronounced trend in the LAC region for decentralized 
government (to strengthen the autonomy of and devolve power to 
local elected authorities and foster linkages between citizens 
and subnational governments in the Western Hemisphere), the 
Committee encourages LAC to undertake initiatives in 
decentralization and local governance.
    United States efforts to improve justice systems (for both 
criminal and commercial areas) contribute to the protection of 
human rights, the rule of law, and a level playing field in 
commerce. For these reasons, the Committee encourages more 
aggressive regional programs related to the administration of 
justice, rule of law and legal and regulatory reform.
    Sec. 517.--Support for Agricultural Development Assistance. 
The Committee is concerned about the declining level and 
proportion of U.S. development assistance devoted to 
agriculture, which has declined from 16% to 8% since 1990. The 
Committee notes the importance of food security, agricultural 
development, and agricultural research in fostering sustainable 
development in the world's developing countries. Therefore, the 
Committee has recommended that AID, at a minimum, fund 
agriculture, rural development, and nutrition programs in FY98 
at levels provided in FY97 and to provide, at a minimum, 
proportionate increases for those same programs if overall 
development assistance levels increase in FY98.

                    Subchapter B--Operating Expenses

    Sec. 521.--Operating Expenses Generally.This section 
authorizes AID's operating expenses at the level of $473 million for 
FY98 and $465 million for FY99.
    The Committee is deeply concerned about the accounting 
systems of AID. The Committee understands that AID currently 
uses 11 accounting systems that are not interrelated and are 
not able to meet current statutory requirements for audited 
statements and performance results. The Committee is concerned 
about reports, put forward by AID's Inspector General and 
backed by the General Accounting Office, that repeatedly 
highlighted the fatal flaws and miscalculations that AID has 
made in implementing the New Management System (``NMS''). The 
Committee heard testimony from AID and the Inspector General 
that AID successfully waived standard General Services 
Administration procurement rules that would have required the 
purchase of an off-the-shelf system to meet AID's needs. AID 
management rejected that option and the testing required by its 
own consultants at Carnegie-Mellon University and attempted an 
overly ambitious effort to design an entirely new computer and 
accounting system.
    The IG noted hundreds of flaws needed to correct the 
system, some of them remain crucial to any functioning of the 
system. In sum, AID spent between $70-90 million on this 
computer and accounting system that does not work. The 
Committee applauds the recent decision of AID management to 
turn the NMS off at overseas missions. The Committee expects 
that AID will not attempt to resurrect this system until the 
flaws have been eliminated and the system has been fully 
tested.
    Sec. 522.--Operating Expenses of the Office of the 
Inspector General. This section authorizes AID's Inspector 
General's expenses at the level of $29,047,000 for Fiscal years 
1998 and 1999.
    The Commitee is concerned about reports that the IG has cut 
foreign service national overseas investigatory staff. With the 
expansion of programs in this bill, the Committee expects the 
IG to boost the overseas presence of the IG staff, with special 
emphasis on ``high threat'' countries in Eastern Europe and the 
NIS.
            Chapter 3--Urban and Environmental Credit Program
    Sec. 531.--Urban and Environmental Credit Program. This 
provision changes the name of the Housing Program to the above 
name and eliminates some outdated provisions of the FAA housing 
section.
            Chapter 4--The Peace Corps
    Sec. 541.--Authorization of Appropriations. This section 
authorizes the Peace Corps at the levels of $222 million for 
FY98 and $225 million for FY99.
    The Committee commends the Peace Corps for its creation of 
a Crisis Corps that will allow experienced volunteers and 
returned volunteers to provide shorter-term assistance during 
humanitarian crises and natural disasters. With their skills 
and experience, Peace Corps veterans are a ready, valuable 
resource, and the Crisis Corps provides and additional 
opportunity to extend the benefits of this country's investment 
in the Peace Corps.
    The success of the Crisis Corps' pilot projects in the 
Caribbean and Africa is most encouraging. The Committee 
therefore strongly urges the Peace Corps to expand the Crisis 
Corps to reach many more of those affected by disasters.
    Sec. 542.--Activities in the Peace Corps in the Former 
Soviet Union and Mongolia. This provision allows not more than 
$11 million may be transferred from FY98 and 99 funds to 
support Peace Corps activities in this region.
    Sec. 543.--Amendments to the Peace Corps Act. Subsection 
(1) provides a short title, the ``Peace Corps Act Amendments of 
1997,'' for the Act.
    Subsection (2) amends section 3(b) of the Peace Corps Act 
(22 U.S.C. 2502(b)) (hereinafter the ``Act'') to authorize the 
appropriations of $222,000,000 for programs under the Act for 
fiscal year 1998. This sum, the amount of the President's 
budget request, is authorized to remain available for 
obligation until September 30, 1999. Section 2 also authorizes 
the appropriations of such sums as may be necessary for fiscal 
year 1991, to remain available until September 30, 2000.
    Subsection (3) makes several technical changes to section 5 
of the Peace Corps Act,1 ``Terms and Conditions of 
Volunteer Service,'' (hereinafter the Act) to reflect changes 
in statutory citations and, in one case, a court decision, that 
have occurred since enactment of the Act.
---------------------------------------------------------------------------
    \1\ 22 U.S.C. 2504.
---------------------------------------------------------------------------
    Subsection 3(a) strikes out ``Civil Service Commission'' in 
section 5 (f)(1)(B) and inserts in lieu thereof ``Office of 
Personnel Management.'' The Civil Service Commission was 
replaced by the Office of Personnel Management in 1966.
    Subsection 3(b) amends section 5(h) of the Act (22 U.S.C. 
2504(h)) in several respects.
    It strikes out references to the Federal Voting Assistance 
Act of 1955 (5 U.S.C. 2171 et seq.), the Act of June, 1954, 
chapter 264, section 4 (5 U.S.C. 73b-5, the Act of December 23, 
1944, chapter 716, section 1, as amended (31 U.S.C. 492a)'' and 
inserts reference to 5 U.S.C. 5732 and 31 U.S.C. 3342. The 
Federal Voting Assistance Act has been repealed and replaced by 
a provision (42 U.S.C. 1973cc et seq.). That is available to 
all American citizens overseas. It is unnecessary to consider 
Volunteers federal employees to provide them with the benefits 
of the Act; therefore, the reference to voter assistance in 
this provision can be deleted. The replacement of references to 
sections of titles 5 and 31 with references to 5 U.S.C. 5732 
and 312 U.S.C. 3342 reflect recodification of provisions 
relating to reimbursement for the cost of transportation of 
baggage and effects and check cashing privileges in those 
titles. No substantive change is involved.
    Subsection 3(c) deletes the requirement contained in 
section 5(j) of the Act 2 that Volunteers swear (or 
affirm) that they do not advocate the overthrow of the 
government by force, or belong to an organization that so 
advocates. This requirement was declared unconstitutionally 
vague in 1969.3 It also replaces the reference to 
``section 1757 of the Revised Statutes of the United States, as 
amended (5 U.S.C. 16)'' with ``section 3331 of title 5, United 
States Code,'' reflecting the codification of the statutory 
oath for employees in 1966.
---------------------------------------------------------------------------
    \2\ 22 U.S.C. 2504(j).
    \3\ Steward v. Washington, 301 F.Supp. 610- (DDC 1969).
---------------------------------------------------------------------------
    Subsection 4 amends section 10 of the Act, ``General Power 
and Authorities,'' in two respects.
    Subsection 4(a) replaces the reference to 31 U.S.C. 665(b) 
with ``31 U.S.C. 1342,'' reflecting the 1982 revision of title 
31.
    Subsection 4(b) revises paragraph 10(a)(5) of the Act 
4 to make the legal status of Peace Corps personal 
services contractors consistent with that of personal services 
contractor employed by other foreign service agencies.
---------------------------------------------------------------------------
    \4\ 22 U.S.C. 2509(a)(5).
---------------------------------------------------------------------------
    Subsection 10(a)(5), as now written, authorizes the Peace 
Corps to contract with U.S. citizens for personal services 
abroad, and with aliens for services in the United States or 
abroad. However, section 10(a)(5) also provides that personal 
services contractors are not deemed employees of the United 
States for any purpose. This language is more restrictive than 
that applicable to other foreign service agencies, which limits 
the exclusion to laws administered by the Office of Personal 
Management.
    The requested amendment to section 10(a)(5) would make it 
consistent with the provisions applicable to personal services 
contractors of the Department of State 5 and USAID. 
6 One consequence of the amendment would be to 
authorize extension of coverage under the Peace Corps' 
authority to negotiate settlements of tort claims abroad, which 
is now limited to claims arising from the acts or omissions of 
employees or Volunteers, to claims arising from the acts of 
personal services contractors.7 Many peace Corps 
medical officers for example, who frequently use vehicles in 
the performance of their duties, are personal services 
contractors.
---------------------------------------------------------------------------
    \5\ Section 2(c) of the State Department Basic Authorities Act of 
1956, 22 U.S.C. 2669(c).
    \6\ Section 636 (a)(3) of the Foreign Assistance Act of 1961, 22 
U.S.C. 2396(a)(3).
    \7\ U.S.C. 2509(b).
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    This amendment would not require the Peace Corps to accord 
personal service contractors any benefits they do not currently 
enjoy. However, by giving the Peace Corps the same personnel 
flexibility as other foreign affairs agencies, it would help to 
eliminate the difficulties created overseas when personal 
services contractors employed by different U.S. 
governmentagencies receive different benefits. It would also enable the 
Peace Corps to accord its personal service contractors benefits, such 
as reimbursement for property losses incurred incident service, that 
are comparable to those received by other Peace Corps employees. 
Elimination of the need for special treatment for personal services 
contractors at overseas posts would also result in savings in 
administrative costs for the agency.
    Subsection 5 makes several technical changes, and one 
substantive addition to section 15 of the Act.8
---------------------------------------------------------------------------
    \8\ 22 U.S.C. 2514.
---------------------------------------------------------------------------
    Subsection 5(a) amends section 15(c) 9 by 
striking out ``Public Law 84-918 (7 U.S.C. 1881 et seq.)'' and 
inserting in lieu thereof ``subchapter VI of chapter 33, title 
5, United States Code (5 U.S.C. 3371 et seq.).'' Section 15(c) 
of the Peace Corps Act authorizes training for employees at 
private and public agencies. The statutory provisions relating 
to employee training were transferred from title 7 to title 5 
in 1970.
---------------------------------------------------------------------------
    \9\ 22 U.S.C. 2514(c).
---------------------------------------------------------------------------
    Subsection 5(b) amends paragraph 15(d)(4) 10 by 
striking out ``section 9 of Public Law 60-328 (31 U.S.C. 673)'' 
and insert in lieu thereof ``31 U.S.C. 1346.'' This section of 
the Peace Corps Act authorizes the payment of expenses of 
attending meetings related to the Peace Corps Act. No 
substantive changes is intended. It is another change required 
by the 1982 revision of title 31.
---------------------------------------------------------------------------
    \10\ 22 U.S.C. 2514(d)14.
---------------------------------------------------------------------------
    Subsection 5(c) amends paragraph 15(d)(6) 11 by 
striking out ``without regard to section 3561 of the Revised 
Statutes (31 U.S.C. 543).'' This statute, which contained a 
restriction on currency exchanges, was repealed and not 
replaced when title 31 was codified in 1982.
---------------------------------------------------------------------------
    \11\ 22 U.S.C. 2514 (d)(6).
---------------------------------------------------------------------------
    Subsection 5(d) amends paragraph 15(d)(11) 12 by 
striking out ``Foreign Service Act of 1946, as amended (22 
U.S.C. 801 et seq.)'' and inserting in lieu thereof: ``Foreign 
Service Act of 1980, as amended (22 U.S.C. 3901 et seq.).'' The 
Foreign Service Act was rewritten and renamed in 1980.
---------------------------------------------------------------------------
    \12\ 22 U.S.C. 2514(d)(11).
---------------------------------------------------------------------------
    Subsection 5(e)-(g) add a new paragraph (13) to subsection 
15(d).13 The new paragraph would exempt the Peace 
Corps from the provisions of the ``Fly America Act'' 
14 with respect to flights between two points abroad 
to the same extent other foreign service agencies are exempt 
from it.
---------------------------------------------------------------------------
    \13\ 22 U.S.C. 2214(d).
    \14\ 49 U.S.C. 40118.
---------------------------------------------------------------------------
    Under 49 U.S.C. 40118(d), the Department of State, USIA, 
IDCA (including USIA), and the Arms Control and Disarmament 
Agency are exempt from the requirements of the ``Fly America 
Act'' for travel between two places outside the United States 
by employees and their dependents. Determining which carriers 
overseas are U.S. certified or have agreements with the U.S. 
that qualify them under the Fly America Act is a complex 
undertaking. Posts and individuals must make decision in this 
area at the risk of having their travel costs disallowed. As 
with the issue of the status of personal services contracts, 
the Peace Corps believes that administrative provisions 
affecting foreign service agencies should be as consistent as 
possible. For instance, as Peace Corps employee who is flying 
with a USAID employee to attend a meeting should be able to fly 
on the same plane without fear of being penalized under the 
``Fly America Act.''
    This provision would extend to Peace Corps employees and 
Volunteers the same treatment now available to other foreign 
service agency employees.
            Chapter 5--International Disaster Assistance
    Sec. 551.--Authority to Provide Reconstruction Assistance.
    This section broadens the authority to use disaster 
assistance for short term rehabilitation and reconstruction.
    Sec. 552.--Authorization of Appropriations. This section 
authorizes $190,000,000 for FY98 and 99.
            Chapter 6--Debt Relief
    Sec. 561.--Debt Restructuring for Foreign Assistance. The 
Committee recognizes that for many of the poorest countries there is 
not prospect for sustainable development and growth without substantial 
debt reduction. It supports the fundamental objective of achieving a 
sustainable level of external debt for eligible poorest countries, 
through action under ``Naples Terms'' (up to 67% debt reduction) or, 
where needed, deeper relief through the new global debt initiative for 
Heavy Indebted Poor Countries (``HIPC'). Debt relief should proceed in 
the context of strong economic reform efforts to maximize the potential 
benefit to the debtor's economy.
    The Committee noted that some 25 countries have qualified 
for Naples Terms debt relief so far, but that some of the 
poorest countries will clearly need additional action, 
including measures to reduce debts owed to the international 
financial institutions. It welcomes recent decisions within the 
International Monetary Fund, the World Bank, and other 
international institutions to participate actively in the new 
HIPC debt initiative for these countries. This program should 
offer new hope for many of the poorest countries in Africa and 
Latin America. The Committee understands that the continuing 
program for poorest country debt reduction should leverage over 
$1 billion in U.S. debt reduction and some $33 billion in debt 
reduction worldwide, through comparable action by other 
creditors. For each dollar authorized and appropriated, almost 
$580 in debt relief will be provided worldwide.
    The Committee notes that this should be the final 
appropriation for debt forgiveness for Jordan, pursuant to the 
historic peace agreement signed between the Hashemite Kingdom 
of Jordan and the Government of Israel in 1994. Funding for 
this program would further the commitment made by the Unites 
States to Jordan in support of these peace efforts and enable 
the United Stated to forgive the remaining concessional loans 
authorized under Title I of the Agricultural Trade Development 
and Assistance Act of 1954, as amended. This carries the 
appropriations authorization for Treasury Department debt 
restricting.
    Sec. 562.--Debt Buybacks or Sales for Debt Swaps. The 
Committee continues to strongly support the sale of U.S. 
concessional debt under a buyback/swap program to eligible 
Latin America or Caribbean debt or countries, or, through swaps 
to third parties to support investment or environmental, child 
survival, or development programs. It expects that this program 
will be carried out at zero budget cost. Debtor countries 
interested in participating in the program must meet the 
economic and political criteria outlined in the original 
Enterprise for the Americas legislation. The Committee welcomes 
the Administration consideration of Jamaica and Peru for this 
program, and recent interest expressed by Guatemala and the 
Dominican Republic. It urges the Administration to move forward 
with this program with all deliberate speed.
            Chapter 7--Other Assistance Programs
    Sec. 571.--Exemption from Restrictions on Assistance 
through Nongovernmental Organizations. This section carries 
current appropriations law that relaxes restrictions on aid 
delivered through NGOs.
    Sec. 572.--Funding Requirements Relating to United States 
Private and Voluntary Organizations. This section carries 
current appropriations law requiring groups to raise 20 percent 
of their funds from private sources but without a waiver. The 
Committee understands that less than 20 groups currently 
receiving AID grants as ``Private'' Voluntary Organizations 
raise less than 20% of their funding from the private sector.
    Sec. 573.--Documentation Requested of Private and Voluntary 
Organizations. This section carries current appropriations law 
on the documentation required of PVOs.
    Sec. 574.--Encouragement of Free Enterprise and Private 
Participation. This section reestablishes the priority of 
private sector growth in development programs.
    Sec. 575.--Sense of Congress Relating to United States 
Cooperatives and Credit Unions. Section 575 expresses the sense 
of Congress in support of cooperatives and credit unions. These 
institutions provide more loans for micro enterprises than all 
other sources of credit combined. Many of these cooperatives have their 
origins in the 1800's and have historically lifted low-income people 
out of poverty and provided non-collateralized loans to people who 
could not get loans from commercial banks. Cooperative credit programs 
often rely on mobilized savings or member equity.
    A critical difference between cooperatives and other 
microenterprise lending institutions are that cooperatives are 
member-owned and do not discriminate in their membership 
including by income levels. Often cooperatives themselves are 
provided with a single loan which is on-loaned to members.
    Because of the nature of cooperatives, most of their loans 
are under $300. The Committee directs that AID shall consider 
micro-loans to cooperatives as meeting the poverty lending 
criteria. Further, the Committee directs AID to include farmers 
and farming operations as micro-enterprises in its lending 
programs.
    Sec. 576.--Food Assistance to the Democratic People's 
Republic of Korea. The Committee does not oppose the delivery 
of limited food assistance to the Democratic People's Republic 
of Korea, if it can be certain that the food deliveries will 
indeed reach women and children in need. The Committee is 
concerned about credible reports that in the past there may 
have been attempts to divert humanitarian food aid in North 
Korea to replenish military stockpiles.
    The Committee expects there to be an extremely high level 
of confidence that any U.S. shipments of food aid will not be 
similarly diverted. Likewise, the Committee would not support 
food assistance if the North Korean Army refuses to tap into 
its stockpile of food reserves.
    The Committee does not favor food assistance that is 
opposed by the Government of the Republic of Korea, and expects 
any food deliveries to be properly monitored to ensure that 
they reach the intended recipients. The committee also notes 
that the famine is the product of misguided governmental 
policies, and that the United States must press the government 
of the DPRK to fundamentally reform their agricultural system.
    The Committee notes that, despite the widespread famine 
across the country, the North Korean military budget continues 
to increase. We also note that the DRPK continues to pose a 
serious risk to U.S. troops stationed in South Korea, and that 
North Korean Government officials routinely threaten aggressive 
actions against U.S. and ROK forces. Other fundamental concerns 
include the DPRK's test of medium-range ballistic missiles, 
continued export of terrorism, and refusal to participate in 
North-South talks. While the Committee is mindful of the 
genuine suffering from the famine in the DPRK, we believe the 
humanitarian issues cannot be viewed in isolation. The 
Committee anticipates that any provision of food aid should be 
part of a comprehensive strategy toward North Korea.
    Sec. 577.--Withholding of assistance to countries that 
provide nuclear fuel to Cuba. Section 577 amends the FAA to 
withhold from United States assistance allocated to any country 
an amount equal to the aggregate value of nuclear fuel and 
related assistance or credits provided by that country or any 
entity of that country to Cuba.
    This withholding requirement would not apply if Cuba, (1) 
ratifies and complies with the Treaty on the Non-Proliferation 
of Nuclear Weapons or the Treaty of Tlatelolco; (2) negotiates 
and complies with full-scope safeguards of the International 
Atomic Energy Agency; and, (3) is in compliance with 
internationally accepted safety standards.
    The committee is concerned about the security threat to the 
United States should Cuba gain access to nuclear fuel enabling 
the operation of the research reactors at the Pedro Pi Nuclear 
Facility and providing Cuba with plutonium derived from the 
spent nuclear fuel. Russia currently has a $30 million contract 
to provide Cuba with nuclear fuel. This contract, unlike a 
previous contract, does not require Cuba to return any spent 
fuel to Russia Plutonium is a radioactive and poisonous metal 
by-product of all uranium fueled reactors and a key component 
in both atomic and hydrogen bombs.
    The committee further notes its concern that, (1) the 
nuclear reactors in question are similar in construction to the 
Russian built reactors in North Korea; (2) Cuba has not 
ratified the Treaty on the Non-Proliferation of Nuclear Weapons 
or the Treaty of Tlatelolco; (3) according to officials at the 
Nuclear Regulatory Commission, Cuba has not permitted the 
International Atomic Energy Agency to inspect the Pedro Pi 
Facility or nuclear reactors at the facility; (4) a potential 
nuclear accident in Cuba could result in radioactive fallout as far 
north as Washington, DC and as far west as Texas.

Title VI--Trade and Development Agency

    The Committee believes that the world-wide improvement of 
export controls, especially in the New Independent States, is 
an important priority for U.S. non-proliferation policy. The 
Committee urges the Administration to devise a long-term 
program to fund U.S. efforts to improve such export controls. 
The State, Commerce, and Defense Departments (and other 
relevant agencies) should agree to a program that balances 
their expertise and financial obligations, so that funding and 
responsibility for export controls do not continue to be a 
topic of continuing bureaucratic friction. The point here is 
that the Executive branch needs to devise a long-term plan for 
funding so that the U.S. national interest in improved export 
controls is advanced.
    Sec. 601.--Authorization of Appropriations. This section 
authorizes appropriations of $43 million for Fiscal years 1998 
and 1999.

Title VII--Special Authorities and Provisions

    Sec. 701.--Enhanced Transfer Authority. Section 701 amends 
section 610 of the Foreign Assistance Act of 1961 to enhance 
the authority of the President to transfer funds between 
accounts under that Act. Section 610 currently permits the 
President to transfer not to exceed 10 percent of the funds 
made available to carry out any provision of the Foreign 
Assistance Act. As amended by section 701, section 610 of that 
Act would permit the President to transfer up to 20 percent of 
the funds made available to carry out any provision of that 
Act. In addition, as amended by section 701, section 610 of the 
Foreign Assistance Act would eliminate several exclusions from 
the President's authority to transfer funds pursuant to section 
610. In recognition of the considerable expansion of the 
President's authority effected by this provision, section 610, 
as amended by section 701, would require the President to 
notify the relevant congressional committees pursuant to the 
reprogramming procedures of section 634A of the Foreign 
Assistance Act before exercising the transfer authority of the 
amended section 610.
    Sec. 702.--Authority to Meet Unanticipated Contingencies. 
Section 702 amends section 451(a) of the Foreign Assistance Act 
of 1961 to increase the fiscal year limitation on the amount of 
money that the President may draw from funds made available to 
carry out any provision of that Act in order to meet 
unanticipated contingencies. Currently, section 451(a) of the 
Foreign Assistance Act permits the President to draw up to $25 
million during any fiscal year to meet unanticipated 
contingencies. As amended by section 702, section 451(a) of 
that Act would permit the President to draw up to $50 million 
during any fiscal year to meet unanticipated contingencies.
    Sec. 703.--Special Waiver Authority. Section 703 amends 
section 614 of the Foreign Assistance Act of 1961 to expand the 
authority of the President to authorize the provision of 
assistance under that Act, the Arms Export Control Act, or any 
annual foreign assistance authorization or appropriation act 
notwithstanding legal prohibitions or restrictions on the 
delivery of that assistance. Section 703 increases applicable 
ceilings on the amount of assistance that may be provided 
during any fiscal year pursuant to an exercise of the authority 
of section 614 of the Foreign Assistance Act. In addition, 
section 703 expands the scope of the President's waiver 
authority under section 614 of the Foreign Assistance Act to 
include any other law that restricts assistance, sales or 
leases, or other action under that Act, the Arms Export Control 
Act, or any annual foreign assistance authorization or 
appropriation act.
    Sec. 704.--Termination of Assistance. Section 704 amends 
section 617 of the Foreign Assistance Act of 1961 to delete a 
provision stating that Congress may terminate assistance under 
any provision of that Act by concurrent resolution. In 
addition, section 704, amends section 617 of the Foreign 
Assistance Act to clarify and enhance the President's authority 
to wind up terminated assistance programs.
    Sec. 705.--Local Assistance to Human Rights Groups in Cuba. 
This section amends section 109 of the Cuban Liberty and 
Democratic Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6039) 
to clarify thatsupport for individuals and independent 
nongovernmental organizations for democracy-building efforts in Cuba 
can include assistance within Cuba and the local costs in Cuba of 
delivering such assistance. This section states that accountability 
requirements of the United States Agency for International Development 
can be satisfied, if necessary, by a ``certification'' by a person 
administering such assistance.
            Chapter 2--Repeals
    Sec. 711. Repeal of Obsolete Provisions. This section 
contains a list of administration-approved, bipartisan repeals 
of obsolete provisions.

              DIVISION B--FOREIGN RELATIONS AUTHORIZATIONS

Title X--General Provisions

    Sec. 1001.--Short title. Section 1001 provides a short 
title, the ``Foreign Relations Authorization Act, Fiscal Years 
1998 and 1999'', for this Division of the Foreign Policy Reform 
Act.
    Sec. 1002.--Statement of history of legislation. Section 
1002 and Section 1001 make clear that the Foreign Relations 
Authorization Act for Fiscal Years 1998 and 1999, reported by 
the Committee as Division B of the Foreign Policy Reform Act, 
shall be effective for all purposes as a separate Act.
    Sec. 1003.--Definitions. Title XI--Authorization of 
Appropriations for Department of State and Certain 
International Affairs Functions and Activities.
    Sec. 1101.--Administration of Foreign Affairs. Section 1101 
authorizes appropriations for the Department of State as 
follows:
    (1) $1,291,977,000 for fiscal year 1998 and $1,291,977,000 
for fiscal year 1999 for Diplomatic and Consular programs.
    The recommended level of authorization for Diplomatic and 
Consular Programs is intended to be utilized to maintain a 
strong U.S. presence abroad, and to meet current unfunded 
needs, including security of personnel and overseas U.S. 
facilities, and does not include funding for new programs, not 
presently funded, for environmental conferences, programs, and 
associated expanded staffing.
    (2) $363,513,000 for fiscal year 1998 and $363,513,000, for 
fiscal year 1999 for Salaries and Expenses. The Committee 
expects that the Department will provide adequate funds and 
personnel for the Bureau of Democracy, Human Rights and Labor. 
The Bureau currently has 52 employees and a budget of 
approximately $6 million. By way of contrast, the Public 
Affairs office has 115 employees and a budget of over $10 
million; the Protocol office has 62 employees; and each of the 
six regional bureaus has an average of about 1500 employees, 
with a combined budget of approximately $1 billion. This 
disparity in resources has important practical consequences 
which should be addressed in order to give the protection and 
advancement of internationally recognized human rights the 
priority it deserves in United States foreign policy.
    Section 1101(2)(B) requires that of the total amount 
authorized for salaries and expenses, $2,000,000 for each of 
fiscal year 1998 and fiscal year 1999 are authorized only for 
the recruitment of minorities into the Foreign Service.
    The Committee is concerned about the low levels of 
representation by minorities in the Department of State's 
Foreign Service, and particularly in the Senior Foreign Service 
where minorities make up only about seven percent. Therefore, 
the Committee supports a strong minority recruitment program. 
Recruitment initiatives should include: (1) the reinstatement 
of the Foreign Affairs Fellowship Program; (2) mentoring 
activities beginning after a candidate has passed the written 
exam; (3) the creation of long-term relationships with the 
Hispanic, Asian-Pacific Island and African-American 
communities; and (4) the active recruitment of minorities for 
internships.
    The Committee notes that the Foreign Affairs Fellowship 
Program has made a significant contribution toward the 
Department of State's stated goal of achieving a diverse 
Foreign Service--of the thirty-six Foreign Service officers in 
the class of 1996, the Fellowship Program brought in only three 
African Americans, another three Americans of Asian and Pacific 
Island descent, and one Hispanic American. The Committee urges 
the Department of State to make efforts to ensure the adequate 
promotion of minorities already serving in the Foreign Service. 
The Committee notes that the Foreign Service benefits from the 
diverse resources, knowledge, and foreign language ability of 
its minority officers and that it should recognize these 
factors when making hiring decisions.
    (3) $64,600,000 for fiscal year 1998 and $64,600,000 for 
1999 for the Capital Investment Fund.
    (4) $373,081,000 for fiscal year 1998 and $373,081,000 for 
fiscal year 1999 for Security and Maintenance of Buildings 
Abroad.
    (5) $4,300,000 for fiscal year 1998 and $4,300,000 for 
fiscal year 1999 for Representation Allowances.
    (6) $5,500,000 for fiscal year 1998 and $5,500,000 for 
fiscal year 1999 for Emergencies in the Diplomatic and Consular 
Service.
    (7) $28,300,000 for fiscal year 1998 and $28,300,000 for 
fiscal year 1999 for the Office of the Inspector General.
    (8) $14,490,000 for fiscal year 1998 and $14,490,000 for 
fiscal year 1999 for the American Institute in Taiwan.
    (9) $7,900,000 for fiscal year 1998 and $7,900,000 for 
fiscal year 1999 for Protection of Foreign Missions and 
Officials.
    (10) $1,200,000 for fiscal year 1998 and $1,200,000 for 
fiscal year 1999 for Repatriation Loans.
    Sec. 1102.--Authorization of Appropriations--International 
Organization, Programs, & Conferences. Section 1102(a) 
authorizes $960,389,000 for fiscal year 1998 and $987,590,000 
for fiscal year 1999 for Contributions to International 
Organizations.
     Section 1102(b) authorizes $199,725,000 for fiscal year 
1998 and $199,725,000 for fiscal year 1999 for Voluntary 
Contributions to International Organizations. This subsection 
has the following limitations: (A) $5,000,000 in fiscal year 
1998 and $5,000,000 in fiscal year 1999 for the World Food 
Program; (B) $3,000,000 for fiscal year 1998 and $3,000,000 in 
fiscal year 1999 for the UN Voluntary Funds for Victims of 
Torture; and (C) $10,000,000 for fiscal year 1998 and 
$10,000,000 for fiscal year 1999 for the International Program 
on the Elimination of Child Labor.
    Subsection (b)(2)(A) authorizes a $5 million contribution 
in each of fiscal years 1998 and 1999 to the World Food Program 
(WFP). The United States continues to be, by far, the largest 
donor to the World Food Program. Hundreds of millions of 
dollars worth of food aid is being provided by the US through 
WFP to provide help to those most affected in the ever-
increasing number of emergencies around the world. This 
assistance is primarily provided in the form of food aid from 
the PL 480 program.
    Every year the US is expecting more and more from WFP as 
the key provider of food aid in emergencies. The GAO and the US 
Congress, in investigating the effectiveness of WFP in the past 
years, have determined that a larger cash component is urgently 
required to ensure that food aid is targeted to the most needy. 
WFP requires this cash contribution from the U.S. to maintain 
and further improve upon the efficiency and effectiveness of 
food aid distribution operations in emergency situations such 
as Rwanda, Bosnia, Liberia and Sudan. This cash contribution 
approach is consistent with the policies of the other WFP 
donors. The $5 million cash contribution from the U.S. should 
be used by WFP to improve the central administration of their 
food aid programs.
    Subsection (b)(2)(B) authorizes a $3 million contribution 
in each of fiscal years 1998 and 1999 to the United Nations 
Voluntary Fund for Victims of Torture. The Voluntary Fund 
supports more than 60 projects for the care, rehabilitation, 
andrecovery of torture victims. The Committee urges the 
Department of State to use the increased United States contribution to 
the Fund as a challenge to other governments to make similar increases 
in their voluntary contributions.
    Subsection (b)(2)(C) authorizes a $10 million contribution 
in each of fiscal years 1998 and 1999 to the International 
Program on the Elimination of Child Labor (IPEC). IPEC conducts 
long-term (usually 10 year) in-country projects in nations that 
have admitted they have a child labor problem and have invited 
IPEC to help address it. Such projects develop national plans 
of action, improve legislation and enforcement measures, 
improve education for the poor, and create economic incentives 
for change. A number of countries in Africa and elsewhere have 
requested IPEC assistance and are waiting for funds to be 
available to begin their in-country programs for the 
elimination of child labor.
    Section 1102(c) authorizes $240,000,000 for fiscal year 
1998 and $240,000,000 for fiscal year 1999 for Assessed 
Contributions for International Peacekeeping Activities.
    Section 1102(d) authorizes $87,600,000 for fiscal year 1998 
and $67,000,000 for fiscal year 1999 for Voluntary 
Contributions to Peacekeeping Operations.
    Section 1102(e) authorizes $3,000,000 for fiscal year 1998 
and $3,000,000 for fiscal year 1999 for International 
Conferences and Contingencies.
    Section 1102(f) provides the authority to offset adverse 
fluctuations in Foreign currency exchange rates. Amounts 
appropriated under this subsection shall be available only upon 
certification by the Director of the Office of Management and 
Budget that such amounts are necessary due to such 
fluctuations.
    Subsection 1102(g) requires the withholding from U.S. 
voluntary contributions to the United Nations Development 
Program (UNDP) of an amount equal to the amount UNDP intends to 
spend in Burma during each of the fiscal years 1998 and 1999, 
unless the President certifies to Congress that UNDP programs 
in Burma are focused on eliminating human suffering and 
addressing the needs of the poor; are undertaken only through 
international or private voluntary organizations that have been 
deemed independent of Burma's military dictatorship, the State 
Law and Order Restoration Council (SLORC); provide no 
financial, political, or military benefit to the SLORC; and are 
carried out only after consultations with the leadership of the 
principal Burmese pro-democracy organizations, the National 
League for Democracy (NLD) and the National Coalition 
Government of the Union of Burma (NCGUB).
    During 1996 and 1997 the SLORC has escalated its campaign 
against democratic forces inside Burma and along its borders. 
Hundreds of democracy advocates and members of the major 
opposition party, the NLD, have been arrested. Access to 
democratic leader Aung San Suu Kyi has been severely 
restricted, and the ``Weekend Talks'' that had provided a forum 
for thousands of Burmese people to enter into dialogue with 
opposition leaders have been halted as SLORC troops blockade 
the roads leading to the compound where the talks were held. 
SLORC officials and the State-controlled media have called for 
the ``annihilation'' of those opposing the regime.
    SLORC has also launched a major military offensive against 
the members ofthe Karen and Karenni ethnic minorities. This 
offensive has resulted in a massive exodus of refugees into Thailand 
and an increase of human rights abuses against ethnic peoples as SLORC 
moves to gain control of areas of the country dominated by these 
peoples.
    The Committee remains concerned about UNDP programs in 
Burma. UNDP and Administration officials have assured the 
Committee that such programs do not benefit the SLORC. 
Committee members, however, continue to receive reports that 
UNDP officials regularly consult with the SLORC on Burma 
programs, that they do not consult with pro-democracy 
organizations, and that UNDP programs in Burma have the effect 
of enhancing the international prestige and domestic power of 
the SLORC. The certification requirement is intended to provide 
additional assurances that UNDP programs are truly independent 
of the SLORC, to make clear to UNDP officials that their 
activities in Burma should be limited to addressing the basic 
human needs of the poor and disadvantaged people of Burma, and 
that they should do so in consultation with the NLD and NCGUB, 
the duly elected political leadership of the people of Burma.
    The Committee expects that in determining whether UNDP 
programs in Burma meet the conditions set forth in this 
subsection, the Department shall rely on assessments by experts 
and non-governmental organizations independent of UNDP. It 
would be helpful for the Department to consult with the 
Committee in the selection of such experts and organizations.

                    organization of american states

    Of the funds authorized to be appropriated for voluntary 
contributions to international organizations, the Committee 
intends that the United States shall contribute to Organization 
of American States (OAS) democracy activities in addition to 
technical assistance programs. Of the sum allocated to OAS 
democracy activities, it is the intent of the Committee that 40 
percent shall be made available to the Inter-American 
Commission on Human Rights (IACHR) to support in situ visits 
and technical assistance for national human rights offices; 20 
percent shall be made available for activities by the Unit for 
the Promotion of Democracy (UPD) for activities to strengthen 
local human rights organizations; and not less than 20 percent 
shall be made available to UPD for activities to 
professionalize national election councils. The Committee 
contemplates a contribution to the IACHR with the expectation 
that the IACHR will continue publishing special chapter on 
human rights developments in select countries as part of its 
annual report.

                   food and agriculture organization

    The Committee recommends that the Secretary of State should 
pay the current assessments in fiscal year 1998 for the Food 
and Agriculture Organization (FAO) and believes that the 
resource levels authorized in the bill are sufficient for this 
purpose. The Committee notes the importance of continued U.S. 
leadership in international organizations such as the FAO that 
provide a global framework for encouraging and facilitating 
international trade in food, agriculture, fisheries and 
forestry products.
    In particular, the Committee notes the importance of FAO's 
activities, suchas data collection and dissemination, standard 
setting through the Codex Alimentarius and the International Plant 
Protection Convention, agricultural genetic resources, and control of 
transboundry agricultural pests and diseases. These activities directly 
benefit U.S. industry and reduce the cost of other related programs of 
the U.S. Department of Agriculture.
    The Committee notes with satisfaction that reform of the 
FAO over the past three years. While maintaining support for 
programs of vital interest to the U.S., this agency has: (1) 
reduced its budget by 3.4% in the 1996-97 biennium; (2) cut 
overall staff by 11% and headquarters staff by 19%; (3) 
downgraded and abolished unnecessary middle management 
positions; (4) improved the ratio of professional to support 
staff; and (5) eliminated meetings and publications, and 
reduced travel expenses.
    Recognizing that U.S. resources are likely to be limited 
for all U.N. agencies, the Committee urges the U.S. to use its 
voice and vote to focus this agency on its programs of key 
importance to the U.S., including those described above.

                       world health organization

    The Committee commends the World Health Organization (WHO) 
for its efforts to combat new and re-emerging infectious 
diseases, particularly its capacity to mobilize staff and 
personnel immediately after the notification of an outbreak, as 
was the case with the outbreak of Ebola fever in Zaire in 1995. 
With the development of public health laboratories, WHO has 
strengthened regional and international collaboration in 
detecting and controlling the outbreak of infectious diseases.
    The Committee notes that the WHO has collaborated with 
UNICEF in controlling diphtheria epidemics in the Russian 
Federation, several other NIS countries, and Mongolia, and 
their collaborative immunization efforts against pertussis, 
measles, tuberculosis and other diseases have saved millions of 
children from death and disability. Their integrated management 
approach for the prevention and treatment of childhood disease 
is to be commended.
    The WHO should continue to focus its efforts on infant, 
child and adolescent health, as well as its efforts to fight 
infectious diseases, food-borne diseases and insect-borne 
diseases. Its information system (WHONET) supports the global 
surveillance of bacterial resistance to antimicrobial agents 
and its FAO/WHO Codex Alimentarius Commission ensures that 
internationally agreed food standards are consistent with 
health protection.
    The Committee commends the efforts of the WHO in adopting 
education programs aimed at the prevention of noncommunicable 
diseases related to lifestyle and diet, but cautions that the 
best nutrition guideline is ``a wide variety in moderation'', 
and that foods and their purveyors cannot be categorized as 
``good'' or ``bad''.
    Sec. 1103.--Authorization of Appropriations--International 
Commissions. Section 1103 authorizes appropriations for the 
International Commissions account of the Department of State to 
fulfill the U.S. share of treaty and other international 
obligations involving Canada, Mexico and other countries on 
international boundary and fisheries matters.
    Specifically, this section authorizes to be appropriated 
$18,490,000 for fiscal year 1998 and $18,490,000 for fiscal 
year 1999 for Salaries and Expenses of the International 
Boundary and Water Commission; $6,493,000 for fiscal year 1998 
and $6,493,000 for fiscal year 1999 for Construction for the 
International Boundary and Water Commission; $785,000 in fiscal 
year 1998 and $785,000 in fiscal year 1999 for the 
International Boundary Commission, United States and Canada; 
$3,225,000 for fiscal year 1998 and $3,225,000 for fiscal year 
1999 for International Joint Commission; and $14,549,000 for 
fiscal year 1998 and $14,549,000 for fiscal year 1999 for the 
International Fisheries Commissions.
    Sec. 1104.--Authorization of Appropriations--Migration and 
Refugee Assistance. Section 1104 authorizes to be appropriated 
$623,000,000 for fiscal year 1998 and $623,000,000 for fiscal 
year 1999 for Migration and Refugee Assistance. Subsection (2) 
authorizes of the amounts appropriated: $1 million for each 
fiscal year for humanitarian assistance for Tibetan refugees in 
India and Nepal.
    Section 1104(b) authorizes $80,000,000 for each fiscal year 
for the resettlement of refugees in Israel. Section 1104(c) 
authorizes for each fiscal year $1,500,000 for humanitarian 
assistance for displaced Burmese.
    This section provides $704.5 million in each of fiscal 
years 1998 and 1999 for the Migration and Refugee Assistance 
(MRA) account. The Committee notes that reductions in prior 
years in the amount provided for refugee assistance, together 
with the affects of a inflation and exchange rates, have 
resulted in an alarming trend toward understaffing in the 
protection division of the United Nations High Commissioner for 
Refugees (UNHCR), as well as in reductions of resources 
available to non-governmental organizations engaged in 
protection and resettlement of refugees from countries 
including Bosnia, Rwanda, Burundi, Iran, Liberia, Sudan, and 
Tibet. This resource shortfall has had the dual effect of 
creating pressure for premature repatriation of refugees and of 
making it impossible to ensure that such repatriation is 
conducted safely and humanely. The amount provided for the MRA 
account in this section represents a 5% increase over the 
amount provided in fiscal years 1994 and 1995. This amount is 
sufficient to compensate only for about half of the 10.3% 
reduction in resources due to inflation since fiscal year 1994, 
and is somewhat lower than the increases provided for the 
Department's operating accounts over the same period.

             United Nations High Commissioner for Refugees

    The Committee takes special note of the needs of vulnerable 
refugee children, particularly those separated from their 
parents, and recommends that the United States take the lead 
and support initiatives for vulnerable children.
    Subsection (a)(2) authorizes $1,000,000 for humanitarian 
assistance to Tibetan refugees. The government of China 
continues to repress the Tibetan people. The Committee 
recognizes that Tibetan refugees continue to flee Tibet in 
order to seek resettlement in India and elsewhere. They are 
assisted by the Central Tibetan Administration (CTA) under the 
leadership of the Dalai Lama. The Department of State has 
designated the Tibet Fund to facilitate the implementation of 
humanitarian assistance provided for these refugees since 
fiscal year 1991. TheCommittee acknowledges that while the 
present regime remains in power in Beijing there is no foreseeable 
prospect for these refugees to return to their homes. Moreover, the CTA 
has substantiated the need for further humanitarian assistance to the 
thousands of Tibetans who remain unsettled in India. The $1,000,000 
provided for each of fiscal years 1998 and 1999 should be made 
available through the Tibet Fund.
    Subsection (c) authorizes $1,500,000 for assistance to 
displaced Burmese along the border between Burma and Thailand, 
including the Karen refugees who have been subjected to cross-
border attacks by the SLORC and allied military forces, the 
burning of their homes, and forced repatriation to Burma. The 
Committee hopes that continued United States support for these 
refugees and displaced persons will be helpful in persuading 
the Royal Thai Government to reaffirm its traditional attitude 
of generosity and protection toward them.
    Sec. 1105.--Authorization of appropriations--Asia 
Foundation. Section 1105 authorizes to be appropriated 
$10,000,000 in fiscal year 1998 and $10,000,000 in fiscal year 
1999 for the Asia Foundation.
    The Asia Foundation is a grant making organization which 
advances U.S. interests in the Asia-Pacific region by promoting 
democracy, the rule of law, liberalization of trade and 
investment, and peaceful relations within the region.
    The Committee supports the Foundation's work and believes 
the authorized level of funding is necessary to support 
Foundation programs which are clearly in the interest of the 
United States and which can best be influenced by the 
Foundation as a private, non-governmental organization with 
unique experience in the region.
    Sec. 1106.--Authorization of Appropriations for USIA. 
Section 1106 authorizes to be appropriated the following 
amounts for international information activities, educational 
and cultural exchange programs and international broadcasting:
    (1) $434,097,000 for fiscal year 1998 and $434,097,000 for 
fiscal year 1999 for Salaries and Expenses.
    (2) $6,350,000 for fiscal year 1998 and $6,350,000 for 
fiscal year 1999 for the Technology Fund.
    (3)(A) $94,236,000 for fiscal year 1998 and $94,236,000 for 
fiscal year 1999 for Fulbright Academic Exchange Programs.
    (3)(B) $500,000 for fiscal year 1998 and $500,000 for 
fiscal year 1999 for South Pacific Exchanges.
    (3)(C) $500,000 for fiscal year 1998 and $500,000 for 
fiscal year 1999 for East Timorese Scholarships.
    (3)(D)$500,000 for fiscal year 1998 and $500,000 for fiscal 
year 1999 for Tibetan Exchanges.
    (3)(E) $97,995,000 for fiscal year 1998 and $97,995,000 for 
fiscal year 1999 for other exchange programs.
    (4) $334,655,000 for fiscal year 1998 and $334,655,000 for 
fiscal year 1999 for International Broadcasting activities.
    (5) $30,000,000 for fiscal year 1998 and $30,000,000 for 
fiscal year 1999 forRadio Construction.
    (6) $10,000,000 for fiscal year 1998 and $10,000,000 for 
fiscal year 1999 for Radio Free Asia.
    (7) $22,095,000 for fiscal year 1998 and $22,095,000 for 
fiscal year 1999 for Broadcasting to Cuba.
    (8) $10,000,000 for fiscal year 1998 and $10,000,000 for 
fiscal year 1999 for the Center for Cultural and Technical 
Interchange between East and West.
    (9) $30,000,000 for fiscal year 1998 and $30,000,000 for 
fiscal year 1999 for the National Endowment for Democracy.
    (10) $2,000,000 for fiscal year 1998 and $2,000,000 for 
fiscal year 1999 for the Center for Cultural and Technical 
Interchange Between North and South.

                    Fulbright Senior Scholar Program

    The Committee commends USIA for opening up the 
administration of the Fulbright Senior Scholar Program for 
competition. The Committee strongly urges that the competition 
be conducted in such a way as to take maximum advantage of the 
unique competitive strengths of exchange organizations that 
have expertise and experience in specific regions of the world.

                            Radio Free Asia

    The Committee believes that Radio Free Asia (RFA) is now a 
key component of our international broadcasting operations and 
plays an important role in our policy toward Asia. As part of 
RFA's continued viability, and as part of the Voice of 
America's broadcasts to Asia, the Committee supports the 
completion of the Tinian relay station, which is the only U.S.-
owned facility on U.S. soil capable of transmitting a reliable 
signal to China.

                      Voice of America Programming

    Voice of America (VOA) should explore opportunities to 
expand the types of programs currently produced to include a 
wider range of U.S. interests. Such programming could address 
the individual interests of the 50 States and territories on 
topics of trade and tourism. Many States have active 
international programs to promote their products and 
destinations and are looking for additional marketing 
opportunities. The Committee is aware that States have 
expressed support for this idea of utilizing the worldwide 
capacity of VOA to promote their individual interests.

                         Book Donation Program

    The Committee notes the continued funding for logistic 
support for book donation programs and related Internet and 
other digital information technologies. Such programs managed 
by private voluntary organizations multiply the benefit of 
federal dollars with private sector support and assist in 
opening new markets for U.S. business. They also have the 
intrinsic value of promoting the free movementof ideas and the 
growth of knowledge.

             Claude and Mildred Pepper Scholarship Program

    The Committee recognizes the contributions of the Executive 
Education Program for Central European Business and 
Professional Leaders in facilitating a smooth transition to a 
market economy in the emerging republics of Central Europe. The 
program has proven to be mutually beneficial to the U.S. 
through development of increased export trade with these new 
republics. The Committee supports the leadership program's plan 
to expand its business outreach activities into one or more 
emerging democracies of Latin America such as Argentina, 
Brazil, Chile and Columbia. This leadership program is a 
component of the Claude and Mildred Pepper Scholarship Program 
of the Washington Workshops Foundation.
    Sec. 1107.--Authorization of Appropriations for US Arms 
Control & Disarmament Agency. Section 1107 authorizes to be 
appropriated $44,000,000 for fiscal year 1998 and $44,000,000 
for fiscal year 1999 for the Arms Control and Disarmament 
Agency. This section also authorizes such sums as may be 
necessary for each of the fiscal years 1998 and 1999 for 
increases in salary, pay, retirement, other employee benefits 
authorized by law, and to offset adverse fluctuations in 
foreign currency exchange rates.
    Sec. 1201.--Revision of the State Department Rewards 
Program. Section 1201(a) rewrites the State Department rewards 
program to update this important tool used in capturing 
fugitives abroad in cases of terrorism and narcotics offenses. 
Changes include raising the cap on the funds available for the 
rewards program, and allowing rewards to be paid for help in 
preventing counterfeiting of US currency by state sponsors and 
others supporting terrorism. The Secretary is required to 
submit a report to Congress when a reward payment is made, as 
well as an annual report that summarizes all rewards or 
expenditures made from this account.
    The section also clarifies that determinations by the 
Secretary of State regarding counterterrorism and narcotics-
related rewards are solely at the discretion of the Secretary, 
in consultation as appropriate with the Attorney General and 
are not subject to judicial review. This conforms the State 
Department rewards program to similar provisions in various 
statutes comprising reward authorities of the Attorney General, 
including those related to domestic terrorism. This will 
preclude unnecessary lawsuits that could divert Department 
resources, as well as bring unwarranted negative publicity to 
the rewards program and discourage potential informers.
    Section 1202(b) makes available to carry out the rewards 
program up to two percent of Foreign assets frozen by the 
President under the International Emergency Economic Powers 
Act.
    Sec. 1202.--Foreign service national separation liability 
trust fund. Section 1202 authorizes the interest earned on this 
trust fund to be retainedwithin the account. The Foreign 
Service National Separation Liability Trust Fund was established as an 
account into which agencies deposit and accrue funds to make separation 
payments to foreign national employees in countries in which separation 
pay is required by local law.
    Sec. 1203.--Capital Investment Fund. Section 1203 amends 
section 135 of the Foreign Relations Authorization Act, Fiscal 
Years 1994 and 1995 (22 U.S.C. 2684a) to allow the Capital 
Investment Fund to be used for the procurement and upgrade of 
information technology and other related capital investments 
for the Department of State.
    Section 135(e) is amended to eliminate as duplicative the 
requirement that subjects money in the Fund to Congressional 
reprogramming requirements before it is obligated. The 
Department will follow reprogramming procedures when it 
proposes to obligate or expend monies from the Fund. The 
Committee understands that the Department will explain 
potential uses of the Fund in its Congressional Presentation 
Document.
    Sec. 1204.--International Center reserve funds. Section 
1204 amends current law to allow the Secretary of State to 
accrue and retain the interest collected on the International 
Chancery Center reserve account to be used to pay for 
maintenance and security costs, subject to the availability of 
appropriated funds.
    Sec. 1205.--Proceeds of Sale of Foreign Properties. Section 
1205 provides the authority to invest proceeds of sales from 
real property assets overseas in an interest bearing account.
    Sec. 1206.--Reduction of reporting requirements. Section 
1206 repeals five State Department reporting requirements: (1) 
a report on Foreign service personnel; (2) a report on 
participation by United States military personnel abroad in 
United States elections; (3) country reports on economic policy 
and trade practices; (4) a report on social and economic 
growth; and (5) a report on the implementation of the Chemical 
Biological Weapons and Warfare Elimination Act of 1991.
    Sec. 1207.--Contracting for local guards services overseas. 
Section 1207 amends section 136 of PL 101-246 by repealing 
subsection (c)(7) and replacing (c)(3) with a more efficient 
process for evaluating requests for proposals for contracts for 
the local guard program. These changes continue a preference 
for firms and joint ventures qualifying under an existing 
definition of a United States person.
    The current legal mandate requires use of an extensive 
point-scored technical evaluation process which involves 
precise scoring of subjective information for the purpose of 
determining the winner of local guard contracts. This 
requirement adds considerably to the time required to award 
competitive overseas guard contracts. The Committee understands 
that the proposed change to the legislation would retain its 
benefits in a more streamlined source selection process. The 
evaluation would determine the acceptability of the technical 
proposal,followed by use of a price preference which reduces 
the price of United States firms by five percent for evaluation 
purposes.
    Sec. 1208.--Preadjudication of claims. Section 1208 amends 
section 4 of the International Claims Settlement Act to permit 
the Foreign Claims Settlement Commission to preadjudicate 
claims by United States citizens. Preadjudication would provide 
the Department with important information on the value and 
validity of claims by the U.S. public in advance of the 
negotiations and conclusion of an agreement. The Committee 
understands that in the event of preadjudication, the Secretary 
of State will make every effort to inform affected persons.
    Sec. 1209.--Expenses relating to certain international 
claims and proceedings. Section 1209 allows the Department to 
accept in certain cases reimbursement from private sector 
claimants for tribunal expenses, salaries and ordinary 
expenses. The intent of this provision is to allow the 
Department to accept reimbursement from claimants who would 
normally pay for the legal expenses of pursuing a claim. In 
such cases the Department would be able to accept a voluntary 
contribution.
    Sec. 1210.--Establishment of fee account and providing for 
passport information services. Section 1210 establishes a new 
fee account dedicated to funding the operations of the State 
Department. The fees collected and deposited into the special 
account pursuant to this section consist of immigration, 
passport, and other fees previously deposited in the Treasury 
as miscellaneous receipts. The fees may be used only in advance 
in Appropriation Acts. Not more than $455,000,000 may be made 
available unless a modification is submitted under 
reprogramming provisions of law. The retained fees are used to 
reduce the appropriation request for the Diplomatic and 
Consular Programs account.
    This section also requires that the Department provide 
certain information free of charge to citizens inquiring about 
the processing of their passports, and authorizes $5 million 
from passport fee collections to be used for this purpose.
    Section 1210(e) makes available from amounts deposited in 
the fund created by section 1210(a) $5 million for each of the 
fiscal years 1998 and 1999 for the purpose of providing 
passport information without charge to citizens of the United 
States. Such information includes information: (a) about who is 
eligible to receive a United States passport and how and where 
to apply; (b) about the status of pending applications; and (c) 
the names, addresses and telephones numbers of State and 
Federal officials who are authorized to provide passport 
information in cooperation with the Department of State.
    The Committee believes that U.S. citizens should have free 
access to basic information generated by their Government. The 
Committee suggests that an ``800'' number may be an appropriate 
way to provide access to this information.
    The Committee also expects the Department to reaffirm its 
traditional co-operation with other federal, state, and local 
officials who have supplied this information to the public in 
the past. For instance, in New Jersey, Country Clerks of the 
Court serve as the designated acceptance facility for passport 
applications. These offices offer free assistance and 
information to citizens via telephone or officevisits. The 
State Department's decision to channel all inquiries through a pay-for-
service 900 phone line ignores the personal assistance people can 
receive at the locally designated facilities. People who are calling 
under a deadline or in the midst of a family crisis deserve the 
opportunity to talk directly to passport officials who can help them. 
No other federal agency has attempted to charge citizens when they 
follow up on the status of their application or inquiry.
    Sec. 1211.--Establishment of machine readable fee account. 
Section 1211 authorizes the collection and retention of fee 
changes current law, which allows machine readable visa fees to 
be collected as an offsetting collection. Consistent with 
Section 1210, this change treats these fees as receipts, and 
makes them available for border security activities of the 
Department of State, and puts the fees on budget subject to 
appropriation. Not more than $140,000,000 maybe made available 
in any fiscal year unless a modification is submitted under 
reprogramming provisions of law.
    Sec. 1212.--Retention of additional defense trade controls 
registration fees. Section 1212 amends section 45(a) of the 
State Department Basic Authorities Act to enable the Department 
to retain all of the registration fees that the Department's 
Office of Defense Trade Controls collects. This section 
eliminates the $700,000 cap on such retentions. The additional 
fees will be used for enhanced reporting on end-use monitoring 
and expanded registration and licensing and company audits.
    Sec. 1213.--Training. Section 1213 amends section 701 of 
the Foreign Service Act of 1980 by adding a new subsection 
701(e)(1) to allow the State Department to provide training for 
employees and their family members of United States companies 
operating overseas on a reimbursable basis. In addition, this 
section allows the Department to provide foreign language 
training on a reimbursable basis to Members and employees of 
Congress.
    Section 1213(b) authorizes the Secretary of State to charge 
a fee for use of the National Foreign Affairs Training Center 
Facility. These fees shall be deposited as an offsetting 
collection to any State Department appropriation and shall 
remain available until expended. Fees set for renting these 
facilities should not provide a competitive advantage over 
other commercial facilities .
    Sec. 1214.--Recovery of costs of health care services. 
Section 1214 authorizes the State Department to recover the 
costs incurred for providing health services by seeking 
reimbursement from health insurance providers.
    This section, which implements recommendations of the 
Department of State's Office of the Inspector General, amends 
section 904 of the Foreign Service Act of 1980 to authorize the 
Department to recover and retain the costs incurred by the 
Department for health care services provided to eligible USG 
employees and their families and to other eligible individuals. 
The proposed legislation would permit the Department to recover 
and retain such costs from third-party payers, and to recover 
directly from the employee if the employee chooses to be 
uninsured orto pay for medical services directly. The 
Departments of Defense and Veterans Affairs, as well as the Indian 
Health Service, already have similar authority.
    This section addresses the problem of the Department's 
expenses caused by providing free health care services in 
certain instances to employees, their dependents, and other 
U.S. Government employees and nationals. Currently, virtually 
all health care services received by eligible USG employees and 
their families at post health care facilities abroad are at no 
charge, whether or not the treatment is for a work-related 
condition, and whether or not the employee has health 
insurance. Because the Department does not charge a fee for 
these services, the employee's insurer is not obligated to pay. 
In addition, there are instances in which an employee or family 
member may receive care from a non-governmental source and the 
Department picks up the charge.
    The Department also, in certain circumstances set forth in 
regulations, provides or contracts for medical services for 
non-USG employees and their family members at posts abroad. 
Such services are available, for example, on a temporary basis 
to contractors of the U.S. Government in remote locations where 
suitable private health care is not available, where it is in 
the best interests of the U.S. Government, and where extension 
of the care does not detract from the service available to 
employees and their families. These persons are required to pay 
a fee for the services, but the Department now has no authority 
to retain these fees.
    The result is a situation where the Department is paying a 
significant portion of its employees' health insurance 
premiums, but is not always receiving reimbursement from the 
insurer while employees are stationed at post. This situation 
could act as a disincentive for an employee to continue to 
participate in a health insurance program while abroad. An 
estimate of the operating costs for overseas health units for 
fiscal year 1997 is approximately $22.7 million (including 
salaries, post entitlement, Regional Medical Officer travel, 
continuing medical education, and prescription medicines). The 
costs for administering this recovery program are estimated at 
$2 million. In addition, the Department contributes over $15 
million per year toward health insurance premiums for insurance 
that is not consistently used by its overseas employees. In 
some instances, the Department is paying twice for certain 
health care costs of its employees posted abroad. Section 1214 
would rectify this situation.
    Section 1214(a)(1) amends section 904(a) of the Foreign 
Service Act of 1980 to permit the Secretary to designate 
certain persons who are not USG employees or family members to 
receive health care services abroad.
    Section 1214(a)(2) amends section 904(d) of the Foreign 
Service Act of 1980, which authorizes the Secretary to pay the 
cost of medical treatment for eligible individuals. The 
amendment would make section 904(d) subject to a new fee 
collection program described in new subsections (g) and (h).
    Section 1214(a)(3) amends section 904 of the Foreign 
Service Act of 1980 by adding subsections (g), (h) and (l) 
relating to the new fee collection program, which are described 
as follows.
    New subsection (g)(1) authorizes the United States to 
recover the cost of health care services incurred by the 
Department from third-party payers to the same extent that the 
covered beneficiary would be eligible to receive reimbursement 
from the third-party payer for such expenses if the care had 
been provided by a non-governmental provider and certain other 
conditions specified in new subsection(g)(2) pertained. That 
provision also provides that a covered beneficiary is not required to 
pay any deductible, copayment or other cost-sharing for health care 
provided under section 904.
    New paragraphs (2) and (4) of subsection (g) recognize the 
unique circumstances at government health care facilities at 
posts abroad. Paragraph (2)(A) provides that a third-party 
payer must recognize the ``reasonable charge amount'' 
established by the Department for a service, rather than the 
actual cost, as the basis for payment of claims under the plan. 
Paragraph (2)(B) is addressed to health care plans in the 
nature of health maintenance organization that have 
participation agreements with outside health care providers, 
provide agreements with outside health care providers, and 
provides that the Secretary shall be treated as having a 
participation agreement with such a plan as results in the 
highest level of payment under subsection (g). New paragraph 
(2)(C) would prohibit third-party payers from refusing to 
reimburse the Department based on provisions in the insurance 
contract excluding from coverage care provided under various 
circumstances, including for example, care provided by a 
government entity outside the United States, care provided to 
an individual who is not obligated to pay for the care, and 
care provided by a provider who is not licensed to provide the 
care in the U.S. The Departments of Defense and Veteran's 
Affairs and the Indian Health Service have comparable 
authority. In the case of the State Department, this provision 
will also ensure coverage for care provided by registered 
nurses, whether or not they are under the direct supervision of 
a physician. New paragraph (2)(D) provides that, if a health 
benefits plan requires a deductible, copayment or other cost-
sharing, the Department will absorb that cost. In other words, 
neither the covered beneficiary nor the third-party payer is 
required to pay any cost-sharing amount. New paragraph (2)(E) 
provides that where a covered beneficiary has not met the 
deductible provided for under a health care plan, the amount 
that the third-party payer would otherwise have paid had the 
deductible been met will be counted towards the deductible 
event although the covered beneficiary did not pay such amount. 
New paragraph (2)(F) gives the Secretary other authority to 
apply such other provisions as may be appropriate to carry out 
section 904 in an equitable manner. New subsection (g)(4), 
which is similar to legislation pertaining to the Department of 
Veterans Affairs and the Indian Health Service, further 
provides that no State law or law of any political subdivision 
of a State can prevent recovery by the United States under this 
section.
    New subsection (g)(3) of section 904 subrogates the United 
States to the beneficiary's rights against the third-party 
payer, permits the United States to pursue legal proceedings 
against a third-party payer to enforce the government's rights 
under section 904, and authorizes the Secretary to compromise 
or waive claims of the United States under this section.
    Under new paragraph (5) of subsection (g), a third-party 
payer shall be permitted to review an employee's health records 
to verify that the care for which reimbursement is sought was 
provided, and to verify that the care meets the criteria of the 
health benefits plan (except as otherwise provided in 
subsection (g)). Under new subsection (g)(7), the Secretary 
must establish a procedure under which a covered beneficiary 
may elect to pay the entire amount of a reasonable charge 
amount for a service to the Department, and thus avoid having a 
claim and related medical records submitted to the individual's 
health benefits plan.
    New subsection (g)(6) directs the Secretary to establish 
and periodically update a schedule of reasonable charge 
amounts, based on charges recognized by third-party payers for 
payment under covered health benefits plans in the metropolitan 
Washington, DC area.
    New subsection (g)(8) authorizes the Department to deposit 
any amounts collected under subsections (g) or (h) or any 
authority referred to in subsection (I) as an offsetting 
collection to any Department of State appropriation. Receipts 
from collections would remain available until expended.
    New subsection (g)(9) defines terms used in section 904. In 
particular, ``covered health benefits plan'' is intended to 
cover all health benefits plans offered under the Federal 
Employees Health Benefits Program except those plans, such as a 
staff-model health maintenance organization, that the Secretary 
impedes the application of subsection (g) to covered 
beneficiaries enrolled in the plan.
    New subsection (h) applies in the case of a person who is 
not a ``covered beneficiary'' as that term is used in this 
section, or who has made an election under section (g)(7) as 
described above to be treated as other than a covered 
beneficiary, but for whom the Department incurs cost for health 
care services. In those situations, the Department is 
authorized to collect directly from the individuals who receive 
the services the full reasonable charge amount (i.e., without 
deduction for any kind of deductible or cost-sharing) for 
services provided, and has the same rights with respect to 
collection of claims as against third-party payers.
    New subsection (I) provides that the new authorities to be 
given to the Secretary in this section are not intended to 
limit any authority the Secretary already has with respect to 
obtaining reimbursement for payments made under subsection (d). 
Also, subsection (I) states that subsections (g) and (h) will 
only apply to reimbursement of hospitalization and related 
outpatient expenses paid for under subsection (d) to the extent 
provided for by the Secretary in regulations. A principal 
purpose of this provision is to permit the Department, unless 
it decides otherwise, to continue to require employees to 
submit claims directly to insurance carriers for 
hospitalization expenses advanced by the Department on behalf 
of U.S. Government employees or their family members, or 
otherwise be required to repay the U.S. Government any amounts 
advanced by the Department without regard to deductibles or 
other cost-sharing.
    Subsection 1214(b) of the bill would delay the effective 
date of the new authorities provided by section 1214(a) to 
items and services provided on and after the first day of the 
month that begins more than one year after enactment of this 
legislation, in order to give the Department sufficient lead 
time to implement the new fee collection program. Subsection 
(b) also authorizes the Secretary to issue interim final 
regulations to permit implementation of the new program on a 
timely basis.
    Sec. 1215.--Fee for use of diplomatic reception rooms. 
Section 1215 Authorizes the Secretary of State to charge a fee 
for use of the Department of State diplomatic reception rooms. 
Such fees are deposited as an offsetting collection to recover 
the costs of such use and shall remain available for obligation 
until expended.
    Sec. 1216.--Fees for commercial services.Section 1216 
allows fees collected for commercial services provided to businesses to 
remain available for obligation until expended. This authority will 
ensure the Department does not lose funds collected late in a fiscal 
year and that are not obligated by the end of that year.
    Sec. 1217.--Budget presentation documents. Section 1221 
requires the State Department to report in their budget 
presentation documents all sources of income from fees or other 
collections.
    Sec. 1218.--Extension of certain adjudication provisions. 
Section 1218 extends the ``Lautenberg Amendment'' through 
fiscal year 1999. The Lautenberg Amendment identifies certain 
high risk refugee categories and provides that applications in 
these categories are presumed to be refugees if the they assert 
both a fear of persecution and a credible basis for their fear 
of persecution.
    Sec. 1219.--Grants to overseas educational facilities. 
Section 1219 provides the authority for US government agencies 
to make grants to overseas educational facilities. This 
amendment allows agencies that may not have grant authority to 
make grants to support these schools if agency employees have 
children attending these schools.
    Sec. 1220.--Grants to remedy international child 
abductions. Section 1220 authorizes the US Central Authority to 
make grants or to enter into contracts or agreements for the 
purposes of carrying out certain functions required by the 
Hague Convention on the Civil Aspects of International Child 
Abduction (Hague Convention).
    Sec. 1241.--Use of certain passport processing fees for 
enhanced passport services. Section 1241 requires that thirty 
percent of the funds generated by the expedited passport fee 
(estimated to be $18 million in fiscal year 1998) or be 
dedicated exclusively to enhancing passport services for US 
citizens, improving the system of issuing the passport, 
developing a more secure document and more increasing U.S. 
security.
    Sec. 1242.--Consular officers. Section 1242 permits US 
citizen employees abroad who are not consular officers to 
perform additional consular functions, including the issuance 
of reports of birth abroad, the authentication of foreign 
documents, the administration of nationality provisions, and 
the administration of oaths for patent purposes. This purpose 
of this section is to improve the service to the public and to 
overcome consular staffing shortfalls abroad.
    Sec. 1243.--Repeal of outdated consular receipt 
requirements. Section 1243 repeals an 1856 act that required 
the issuance of a receipt when fees were collected by a 
consular officer for a service.
    Sec. 1244.--Elimination of duplicate publication 
requirements. Section 1244 eliminates a duplicative report on 
travel advisories. Presently, both the Secretary of 
Transportation and the Secretary of State publish the same 
advisories. This section eliminates the need for the Secretary 
of State to publish this advisory.
    Sec. 1261.--Report to Congress concerning Cuban emigration 
policies. Section 1261 requires periodic reports on the Cuban 
Government's methods of enforcing its 1994 and 1995 anti-
immigration agreements with the United States, on treatment of 
persons returned to Cuba under the 1995 agreement, and on the 
methods used by the United States to monitor such treatment and 
enforcement.
    Sec. 1262.--Reprogramming migration and refugee assistance 
funds. Section 1262 provides a waiver of the 15-day 
notification requirement of the drawdown of funds from the 
migration and refugee account in the case of an emergency.
    Sec. 1301.--Coordinator for counterterrorism. Section 1301 
makes permanent the office of the Coordinator for 
Counterterrorism and retains a reporting line directly to the 
Secretary of State.
    Sec. 1302.--Elimination of statutory positions within State 
Department. Section 1302 eliminates the statutory requirements 
for the Assistant Secretary for South Asia, the Assistant 
Secretary for Oceans, Environment, and Science, and the Deputy 
Assistant Secretary of Burdensharing. The intent of this 
provision is to provide the Secretary of State with 
organizational flexibility.
    Sec. 1303.--Establishment of Assistant Secretary for Human 
Resources. Section 1303 establishes an Assistant Secretary for 
Human Resources and requires that the position be occupied by a 
professional in the field of personnel and human resources 
management. The purpose of this section is to emphasize that 
broad-based principles of personnel administration and not just 
the special needs of administering the Foreign Service are to 
receive top priority in the administration of the State 
Department. For example, as the State Department leans more 
heavily on the talents of civil service personnel, especially 
with the pending consolidation of the foreign affairs agencies, 
and with the increasing complexity of the modern Foreign 
Service family, human resource matters deserve priority 
attention. It is the intent of the Committee that the Director 
General of the Foreign Service retain current policy and 
management responsibilities for the Foreign Service and report 
to the Secretary through the Assistant Secretary for Human 
Resources to ensure coordination of all personnel policies. 
This recommendation was included in the ``State Team for the 
Future'', Personnel Commission Report of October 1992.
    Sec. 1304.--Establishment of Assistant Secretary for 
Diplomatic Security. Section 1303 establishes an Assistant 
Secretary for Diplomatic Security and requires the individual 
appointed to that position in the future to have professional 
qualifications in the field of federal law enforcement, 
intelligence, or security.
    The Committee strongly believes, based upon hearings in the 
last Congress, and other more recent oversight efforts, that in 
order for the Diplomatic Security Bureau to carry out its 
functions successfully, both the top official--the Assistant 
Secretary--and the Deputy Director of the Diplomatic Security 
Bureau, should have law enforcement, security, or intelligence 
experience before assuming their positions. Responsibility for 
the protection of the lives and security of American personnel 
and facilities, at home and abroad, requires nothing less. On-
the-job training by Assistant Secretaries has already cost the 
American taxpayer far too much. The lack of such expertise at 
the top has led to a diminution of concern for security, and 
ill-advised high level decisions regarding resource allocations 
within the State Department.
    Sec. 1305.--Special envoy for Tibet. Section 1305 provides 
the President with the authority to establish a Special Envoy 
for Tibet. The special envoy would have the personal rank of 
Ambassador and be appointed with the advice and consent of the 
Senate.
    Sec. 1306.--Responsibilities for bureau charged with 
refugee assistance. Section 1306 states that the Bureau of 
Migration and Refugee Assistance shall have responsibility for 
the Migration and Refugee Assistance Act, and shall not have 
the responsibility for population policy.
    This section is designed to ensure that the bureau with 
responsibility for refugee and migration assistance be 
independent of the bureau charged with the substantially 
unrelated responsibility for population policy. The Department 
may, of course, still maintain a population office in another 
bureau as it did prior to 1993.
    Sec. 1321.--Authorized strength of the Foreign Service. 
Section 1321 imposes limits on the number of members of the 
Foreign Service authorized to be employed in fiscal years 1998 
and 1999 as follows: for the Department of State not more than 
8,700 in fiscal year 1998 and 8,800 in fiscal year 1999, of 
whom not more that 750 in fiscal year 1998, and 750 in fiscal 
year 1999 shall be members of the Senior Foreign Service; for 
the United States Information Agency (USIA), not more than 
1,000 in fiscal year 1998 and 1,000 for fiscal year 1999, of 
whom not more than 140 in fiscal year 1998, and 140 for fiscal 
year 1999 shall be members of the Senior Foreign Service; and 
for the Agency for International Development (AID), not more 
than 1,070 in fiscal year 1998, and 1,065 for fiscal year 1999, 
of whom not more than 140 in fiscal year 1998, and 135 in 
fiscal year 1999 shall be members of the Senior Foreign 
Service.
    Sec. 1322.--Non-overtime differential pay. Section 1322 
allows the Secretary of State to substitute another day in lieu 
of Sunday for purposes of Sunday premium pay in countries where 
the normal workweek includes Sunday.
    Sec. 1323.--Authority of Secretary to separate convicted 
felons from service. Section 1323 excludes individuals who have 
been convicted of a crime for which a sentence of imprisonment 
of greater than one year may be imposed fromthe right to have 
the cause for their separation established in a hearing before the 
Foreign Service Grievance Board.
    Section 610(a)(1) of the Foreign Service Act provides that 
the Secretary of State has the authority to separate members of 
the Foreign Service ``for such cause as will promote the 
efficiency of the Service''. This authority is subject to the 
right of certain members of the service to appeal, under 
Section 610(a)(2), to the Foreign Service Grievance Board and 
have the cause for their discharge established at a hearing. In 
Salleh v. Christopher, the United States Court of Appeals for 
the District of Columbia Circuit held that the Secretary either 
must defer to a decision of the Grievance Board that an 
individual not be discharged or appeal the Board's decision, on 
the merits, in court. This section would exempt from the Salleh 
decision individuals who have been convicted of crimes for 
which a sentence of imprisonment of greater than one year may 
be imposed.
    The Committee believes that because of the special trust 
placed in members of the Foreign Service, in the case of an 
individual who has been convicted of a felony and where the 
Secretary has determined that the individual be separated for 
cause, the due process rights of the individual will have been 
sufficiently protected by the processes of the criminal justice 
system, and the individual in question may be separated without 
the need for a hearing before the Grievance Board.
    Sec. 1324.--Career counseling. Section 1324 provides that 
the statutory authority permitting career counseling and 
related job placement services that may be provided to 
employees prior to their separation, shall not be construed to 
permit an assignment that consists primarily of paid time to 
conduct a job search and without other substantive duties. This 
limitation shall not apply to individuals being separated from 
the Foreign Service, and who are both not receiving an 
immediate annuity, and have not been stationed in the United 
States within one year prior to their separation.
    The Committee understands that the Department has permitted 
separating members to conduct extended job searches of up to 
two months while in pay status without any other substantial 
responsibilities to the government. During this time employees 
earn vacation and sick leave, and increase their pensions.
    The Committee has no objection to the one-month job-hunting 
skills development program offered to separating members of the 
Foreign Service and the Civil Service, although it notes that a 
program of such length is an exception to general practice in 
federal employment.
    The Committee does not believe such extended job search 
time is warranted except in the case of an individual who by 
being posted outside the United States has lost his or her 
attachment to the United States labor market and cannot rely on 
his or her immediate annuity for support during the job search 
process.
    The effective date of this new provision is delayed for 180 
days so as not to disadvantage individuals who had relied on 
the earlier policies of the Department.
    Sec. 1325.--Report concerning minorities and the foreign 
service. Section 1325 requires the Secretary of State to submit 
an annual report concerning minorities in the Foreign Service. 
This report shall include the following information: (1) the 
numbers and percentages of minorities taking the written 
Foreign Service exam; (2) the numbers and percentages of all 
minorities passing thewritten exam; (3) the numbers and 
percentages of all minorities passing the oral exam; (4) the numbers 
and percentages of all minorities entering the Foreign Service; (5) the 
numbers and percentages of all minorities in the Foreign Service; (6) 
the numbers and percentages of all minorities at each grade of the 
Foreign Service, particularly in the senior levels; and (7) the numbers 
and percentages of all minorities promoted at each grade of the Foreign 
Service.
    Sec. 1326.--Retirements benefits for involuntary 
separation. Section 1326 corrects drafting oversights regarding 
retirement benefits for Foreign Service employees under the 
``new system'' for those who are involuntarily separated. The 
amendment makes clear that separated members cannot receive 
both immediate retirement benefits and severance-type payments. 
Subsection (a)(1) amends the law so that Foreign Service 
Pension System (FSPS) participants who qualify for an immediate 
annuity under the Foreign Service Act cannot concurrently 
receive severance pay. Subsection (a)(2) states that FSPS 
participants who are involuntarily separated have their 
annuities computed under the FSPS. Subsection (a)(3) states 
that Foreign Service Retirement and Disability System (FSRDS) 
and FSPS participants who do not qualify for an immediate 
annuity receive severance pay and retirement benefits in 
accordance with the rules of their respective retirement 
systems. Subsection (b)(1) through (b)(3) states that FSPS 
participants who are involuntarily separated are entitled to 
receive retirement benefits under the FSPS. Subsection 
(c)(1)(2) makes the prohibition on severance pay to persons who 
qualify for an immediate annuity on prospective basis, and 
makes all other provisions retroactive to January 1, 1996.
    Sec. 1327.--Availability pay for the diplomatic security 
service. Section 1327 extends eligibility for law enforcement 
availability pay (LEAP) to certain agents with the Department 
of State's Diplomatic Security service.
    Section 1327(a) authorizes this pay for certain agents 
whose primary duties consist of performing protective functions 
or criminal investigations. LEAP is fixed at twenty-five 
percent of basic pay, including locality pay. Diplomatic 
Security investigators will be required to work an annual 
average of two hours of overtime duty per regular work day. 
Section 1327(a) also ensures that availability pay is treated 
as basic pay or salary for purposes of the Foreign Service 
Retirement and Disability System and the Foreign Service 
Pension System, as well as for certain involuntary retirement 
payments under section 609(b)(1) of the Foreign Service Act and 
the purposes for which LEAP is treated as basic pay or salary 
in Title 5 of the United States Code. LEAP recipients are 
exempt from wage and overtime pay provisions of the Fair Labor 
Standards Act.
    The bill is intended to provide LEAP to certain individuals 
whose ``primary'' duties consist of ``performing'' protective 
functions or criminal investigations (or both). The Committee 
believes that most Diplomatic Security Service employees who 
are assigned to protective details in the United States or 
abroad, who work as criminal investigators in the field, or who 
serve abroad as embassy security officers, will qualify as 
``performing'' protective functions or criminal investigations.
    The provision that defines as eligible those officers whose 
``primary duties * * * consist of performing * * * protective 
functions or * * * criminal investigations'' is meant to 
exclude from eligibility for this pay individuals whose duties 
consist primarily of supervisory, managerial, planning, 
training, logistical, administrative, or similar functions, or 
a combination thereof, even though those individuals (a) may 
support protective functions or criminal investigations, (b) 
may be trained as criminal investigators, (c) may be classified 
as such for purposes other than eligibility for law enforcement 
availability pay, or (d) may on some occasions, or during 
temporary assignments, perform protective or investigative 
duties.
    The Committee will give sympathetic consideration to a 
Department proposal to provide, on an intermittent basis, 
premium pay similar to the pay provided for in this section in 
the case of excluded employees who temporarily perform 
protective functions or perform as criminal investigators, and 
who work the requisite amount of overtime during such periods. 
The Department should, to the maximum extent possible, turn 
administrative, logistical, training, planning, and related 
duties over to non-law enforcement personnel.
    The Committee notes that the words ``availability pay'' are 
a term of art. The Committee intends that only individuals who 
actually work overtime are eligible for ``availability pay.'' 
Mere ``availability'' is not enough to become eligible for this 
pay. The requisite hours must actually be worked.
    Section 1327(b) requires that not later than the date on 
which amendments by this section take effect, agents covered by 
this section and their supervisors shall make the 
certifications necessary for the agents to receive LEAP. The 
Secretary of State may prescribe the procedures necessary to 
administer implementation of the section.
    Section 1327(c) makes certain technical and conforming 
amendments.
    Section 1327(d) sets the effective date of this amendment 
as the first day of the first applicable pay period which 
begins on or after the 90th day following the date of enactment 
of this Act.
    This section is included in this legislation because during 
1994, at the request of the Department of State, its employees 
who serve with the Bureau of Diplomatic Security and would have 
been eligible for Law Enforcement Availability Pay were 
statutorily excluded from eligibility for that Pay. The 
Department, subsequent to its budget submission this year, 
requested that all its criminal investigators be covered under 
the relevant statute. The Committee agrees that this important 
provision will in fact help provide those Diplomatic Security 
agents working overtime receive the parity of treatment that 
they deserve with respect to their counterparts elsewhere in 
the federal law enforcement community.
    The Committee notes that law enforcement availability pay 
was intended to be a cost-free arrangement primarily for the 
administrative convenience of the agencies concerned, but that 
in the case of the Department there is a considerable cost 
estimated to be involved in providing such pay to its 
Diplomatic Security agents. The Department indicated that for 
the forthcoming fiscal year it is prepared to absorb the cost 
involved from its operating budget.
    The Department should re-examine the grade structure of the 
Bureau of Diplomatic Security in the light of its commitment to 
parity with other law enforcement agencies. The grade structure 
of the Bureau is relatively top-heavy compared to that of the 
FBI and the Secret Service; the Bureau should, in 
particular,ascertain that it does not have FS-1 or Senior Foreign 
Service employees carry out duties that in other agencies are carried 
out by lower-graded employees, and should assure that appropriate 
supervisor-supervisee ratios are in place.
    The Committee notes that many State Department employees, 
civil service and Foreign Service alike, work a considerable 
amount of uncompensated overtime as they carry out their 
professional duties, and that their health and welfare, and the 
health and welfare of their families, is sometimes placed at 
considerable risk because of their long duty hours. The 
Committee is concerned that the provision of law enforcement 
availability pay to a relatively small group of the 
Department's employees may harm morale in the Department as a 
whole, and urges the Department to address this issue promptly 
and in a sensitive manner.
    Sec. 1328.--Labor Management Relations. Section 1328 amends 
section 1017(e) of the Foreign Service Act of 1980 to modify 
the definition of ``management official'' to include only those 
individuals involved in labor-management relations or personnel 
programs. Section 1017 was amended to restrict the movement of 
Foreign service personnel between certain positions in labor 
organizations and management positions in the Foreign Affairs 
agencies in order to prevent conflicts of interests from 
arising.
    This provision is intended to continue to protect against 
conflicts of interest, but narrows the restriction of who is 
prohibited for two years from taking management jobs subsequent 
to serving in a position with the American Foreign Service 
Association, and vice versa.
    Sec. 1329.--Office of the Inspector General. Section 1329 
amends Section 209 of the Foreign Service Act of 1980 to place 
certain notification and reporting requirements on the 
Inspector General (IG) of the Department of State, USIA, and 
ACDA. Section 1329(a) requires the IG, in the case of a formal 
interview, to make all best efforts to provide adequate notice 
to an employee who is the likely subject or target of a 
criminal investigation. Such notice must include identification 
of those attending the interview and information about the 
employee's due process rights. Section 1329(a) also requires 
the IG to provide information to employees on (1) rights to 
counsel, and (2) guidelines, in general terms, on the IG 
policies and procedures with respect to such investigations, 
with the exception of matters exempt from disclosure under 
other laws. It is the Committee's understanding that the IG is 
currently updating a pamphlet on IG rules and procedures and 
employee rights. It is the Committee's intent that the IG 
fulfill this notification requirement by including the 
information in that pamphlet, and by ensuring that the pamphlet 
is widely available to all employees.
    Section 1329(b) requires the IG to submit to Congress a 
one-time report on its internal press guidance, and how that 
guidance was followed in specific individual cases in the 
previous year.
    Sec. 1401.--Extension of au pair programs. Section 1401 
permanently extends the au pair program as authorized by P.L. 
104-72.
    Sec. 1402.--Retention of interest. Section 1402 authorizes 
grantees of the National Endowment for Democracy to deposit 
their grant money in interest bearing accounts and to use the 
interest for the purposes of the grant.
    Sec. 1403.--Center for Cultural and Technical Exchange 
Between North and South. Section 1403 amends the original 
statute establishing the North-South Center by reducing the 
authorization of appropriation level from $10 million to $4 
million. This change is consistent with the actual appropriated 
levels for this program.
    Sec. 1404.--Use of selected program fees. Section 1404 
expands the United States Information Agency's existing fee 
retention authority.
    Sec. 1405.--Muskie Fellowship Program. Section 1405 expands 
the fields of study covered by the Muskie Fellowship Exchange 
Program which operates in the former Soviet Union, Lithuania, 
Latvia and Estonia. In addition, the provision replaces the 
term ``Soviet Union'' in the statute with ``Independent States 
of the Former Soviet Union''.
    Sec. 1406.--Working group on U.S. Government's sponsored 
international exchanges and training. Section 1406 establishes 
an inter-agency working group on international exchanges and 
training to improve the coordination, efficiency and 
effectiveness of U.S. Government sponsored exchange programs 
under the leadership of USIA. The Committee strongly supports 
this initiative as it pursues a comprehensive review of 
exchange programs. Viewing USIA as the primary agency for 
managing exchange programs, the Committee has specifically 
required the Working Group to prepare a report on the 
feasibility of transferring U.S. Agency for International 
Development program funds and management for the Atlas and 
Mandela programs in South Africa to USIA. In addition, the 
Committee specifically requires undertaking a study of the 
private sector exchange programs to develop a data base of 
activities outside the government-supported programs.
    Sec. 1407.--Educational and cultural exchanges and 
scholarships for Tibetans and Burmese. Section 1407 requires 
USIA to provide 30 scholarships for Tibetans and 15 
scholarships for Burmese. It also requires USIA to establish 
exchange programs for Tibetans and Burmese.
    Sec. 1408.--United States-Japan Commission. Section 1408 
amends the United States-Japan Friendship Act (PL 94-118) to 
permit the Commission to invest the trust fund in either Japan 
or U.S. Government securities, and changes the name by deleting 
``Friendship''.
    It is the Committee's intention to make the Commission's 
dollar and yen funds, both principal and interest earnings, 
fully interchangeable, both for purposes of investment and for 
expenditure. This will help modernize the management of the 
Commission's portfolio; it will allow for maximum investment 
return onprincipal within a framework that safeguards its 
value, and it will allow the Commission to take advantage of changes in 
the exchange rate in the expenditure of its funds. These changes in the 
rate are more frequent and volatile now than twenty-two years ago when 
the Commission was established.
    The legislation establishing the Commission was silent on 
where the dollar funds might be spent, but it required that yen 
funds must be spent in Japan [PL 94-118, Sec. 6(4)]. A 1991 
amendment allowed for 50 percent of the Commission's 
administrative expenses in the United States to be paid for 
from yen funds [PL 102-138 Title I, Part E, Sec. 167]. In 
addition, the legislation required that both funds be invested 
exclusively in United States obligations [PL 94-118, Sec. 
7(b)], but a 1976 amendment limited that restriction to the 
appropriated dollars [PL 94-350, title IV, Sec. 401(3)(B)]. The 
Conference Report for that amendment made clear that not merely 
were the yen funds not restricted to investment in United 
States obligations, but that they were to be invested 
exclusively in Japanese obligations (House Conference Report 
94-1302 of June 25, 1976, to accompany S. 3168, p. 40).
    Section 6(4) of PL 94-118 allows the Commission to use up 
to 5 percent of its original principal, or $900,000 and 
197,100,000 yen for necessary expenses without having those 
sums appropriated for its use. In making the two currencies of 
the Commission's trust fund interchangeable, the Committee 
intends that authority to be extended to the drawdown of its 
funds, and to the value of the drawdown of its funds. That is 
to say that, in addition to direct drawdown of 5 percent of the 
one currency, the Commission may, at its discretion, use some 
or all of the value of the 5 percent sum of the second currency 
dispersed from funds of the first currency, converted at the 
prevailing exchange rate. In other words, the Commission may 
use up to 197,100,000 yen worth of dollars in drawdown in 
addition to the $900,000, or it may use up to $900,000 worth of 
yen in drawdown in addition to the 197,100,000 yen.
    Sec. 1409.--Surrogate broadcasting studies. Section 1409 
requires the U.S. Information Agency to conduct studies on the 
feasibility of providing surrogate broadcasting service to 
Africa and Iran. Radio broadcasts in Africa are often the only 
reliable means of mass communication. In recent years, they 
have been misused, as in the case of the ``hate radio'' 
broadcasting that helped promote ethnic hatred and the 1994 
genocide in Rwanda. Furthermore, opposition political parties 
often are unable to communicate their message through 
government-controlled media. This undermines the development of 
multi-party democracy and other United States foreign policy 
objectives in Africa. We are encouraged that the Voice of 
America's pilot surrogate radio project in Angola shows promise 
of breaking the news blackout. Therefore, expanding surrogate 
radio operations throughout Africa (similar to Radio Free Asia) 
should be explored.
    In Iran, an authoritarian regime is suppressing the free 
flow of information, which is vital to shaping a more 
democratic, stable and free society. Surrogate broadcasting to 
Iran would help create the conditions in which a functioning 
civil society and political opposition could survive.
    Sec. 1410.--Authority to administer summer travel/work 
programs. Section 1410 authorizes the Director of USIA to 
administer the summertravel/work program without regard to the 
pre-placement requirements of the ``J'' visa.
    Sec. 1411.--Changes in administrative authorities regarding 
appropriations. Section 1411 allows the US Information Agency 
to transfer among accounts in the second year of a two-year 
bill. The transfers could exceed the authorized levels, but are 
subject to limitations. The limitations are that amounts 
appropriated to the Salaries and Expenses and Exchange Program 
accounts may not exceed by more than 5% the authorized level. 
No other appropriation account may exceed by more than 10% the 
amount authorized.
    Sec. 1412.--Authorities of the broadcasting board of 
governors. Section 1412 amends the International Broadcasting 
Act of 1994, to designate the Board's authority to supervise 
the International Broadcasting Bureau (IBB), to require 
concurrence between the Board and the USIA Director in the 
appointment of a Director of the IBB, and to require 
coordination among all the broadcast entities under USIA.
    Following almost three years of experience under the 
International Broadcasting Act, certain changes are deemed 
necessary to improve the operation and coordination among the 
Broadcasting Board of Governors, the International Broadcasting 
Bureau, and the office of the Director of USIA. The Committee 
believes these entities have a symbiotic relationship, and 
should be working together to achieve the most effective 
broadcasting program to support the U.S. national interest. 
Coordination, cooperation, and collegiality are vital to 
maximize broadcasting's human and financial resources.
    Congress reaffirms its confidence in the President's 
Advisory Board's Special Expertise on matters relating to Cuba 
and Cuba Broadcasting, and urges the International Broadcasting 
Bureau and the Broadcasting Board of Governors to seek the 
President's Advisory Board's advice on matters of policy and in 
matters related to the Office of Cuba Broadcasting.
    Sec. 1501.--Service in international organizations. Section 
1501 repeals a provision in the Federal Employees International 
Organizations Services Act which entitles a Federal employee 
after terminating his/her service with an international 
organization and reentering the federal service, the difference 
between (a) the salary, allowance, post adjustment and other 
monetary benefits actually paid to him/her by the international 
organization and (b) salary/benefits that he/she would have 
received had he/she been detailed to the international 
organization but paid by the U.S. Government.
    Sec. 1502.--Organization of American States. Section 1502 
expresses the sense of the Congress that the Secretary of State 
should make every effort to pay the United States assessed 
funding levels for the Organization of American States (OAS). 
The Committee recognizes that the OAS is uniquely important to 
United States interests in the Western Hemisphere (trade, anti-
drug efforts, human rights, democracy, etc.) and is 
disproportionately dependent on the United States assessed 
contribution. The Committee notes that the United States 
assessed rate is 59 percent, while the United States share of 
grossdomestic product in the region is 78 percent. Responding 
in part to United States leadership, the OAS is continuing broad 
reforms in its agenda and its budget. The Committee notes that the OAS 
operating budget has not grown for the past three years, and the OAS 
staff has been cut from a high in the 1970's to a current 600. It is 
the intent of this section that the International Organizations Bureau 
of the Department of State consider these facts when allocating 
resources.
    Sec. 1521.--Reform in budget decision making procedures of 
the UN and specialized agencies. Section 1521 extends current 
law allowing the President to withhold 20% of appropriated 
funds for the U.N. or any of its specialized agencies if the 
U.N. or the agency fails to implement consensus-based budget 
decision making procedures. This is to ensure that the U.S. and 
other major contributors to U.N. agency budgets have an 
appropriate influence in the budget decision-making processes 
of international organizations. The President is directed to 
notify Congress of any decisions to withhold our share of an 
assessed contribution to the U.N.
    Sec. 1522.--Reports on efforts to promote full equality at 
the UN for Israel. Section 1522 expresses a sense of Congress 
to expand Israel's participation at the United Nations. 
Membership in a regional bloc is a prerequisite for any nation 
to serve in key United Nations bodies such as the Security 
Council and the Economic and Social Council, but Israel is 
excluded from its own regional group, and thereby is excluded 
from fully participating in the workings of the United Nations.
    In support of the peace process, this provision supports 
Israel's repeated requests for inclusion in the Western 
European and Others Group (WEOG), to which other, non-European, 
Western-style democracies such as the United States, Canada, 
and Australia belong. The Secretary of State is required to 
submit a report no later than 90 days after the date of 
enactment (and on a quarterly basis thereafter) that outlines 
actions taken by the United States to encourage WEOG to accept 
Israel as a member, and the efforts undertaken by the Secretary 
General of the United Nations to secure Israel's participation 
in that body. The report must include the specific responses of 
each of the WEOG member states regarding their position 
concerning Israel's membership as well as other measures either 
underway or planned to promote Israel's full and equal 
participation in the United Nations.
    The Committee is disappointed that Israel's request for 
inclusion in the WEOG group has been denied to date, and is 
committed to assisting Israel in this regard until membership 
is achieved and Israel enjoys full status and participation in 
the United Nations. The Committee believes that the State of 
Israel deserves to be treated as an equal among nations, and 
that achieving such equality at the United Nations would help 
advance the Middle East peace process.
    Sec. 1523.--United Nations Population Fund. Section 1523 
authorizes $25,000,000 for the United Nations Population Fund 
for each of the fiscal years 1998 and 1999, but makes only 
$12,500,000 available to UNFPA before March 1 of each fiscal 
year. The provision also prohibits using any portion of the 
United States contribution to fund programs in the People's 
Republic of China. This provision requires that UNFPA maintain 
the United States contribution in a separate account and not 
commingle such contribution with any other funds. Finally, the 
Secretary of State is required to report to Congress not later than 
February 15 of each fiscal year on the amount of funds that the UNFPA 
is budgeting for the year for a program in China. If the report 
indicates that UNFPA plans to spend program funds in China, then that 
sum shall be deducted from the funds made available after March 1 of 
that year.
    UNFPA is required by its mandate to promote voluntary 
family planning. It is the view of the committee that the 
policy and practices of the People's Republic of China with 
respect to population programs make it difficult, if not 
impossible, for UNFPA to operate within its mandate in China.
    Sec. 1524.--United Nations Industrial Development 
Organization. Section 1524 treats the United Nations Industrial 
Development Organization consistent with longstanding U.S. 
policy regarding U.S. withdrawal from multilateral 
organizations.
    Sec. 1601.--Comprehensive compilation of arms control and 
disarmament studies. Section 1601 repeals a reporting 
requirement to compile arms control and disarmament studies 
because a similar report is produced by another organization.
    Sec. 1602.--Use of funds. Section 1602 amends current law 
by eliminating a requirement to use the Government Printing 
Office and allowing ACDA to procure printing and binding from 
local vendors.
    Sec. 1701.--US policy regarding the involuntary return of 
refugees. Subsection 1701(a) provides that no funds authorized 
by division B be used for the involuntary return of refugees to 
countries in which they have a well-founded fear of 
persecution, except on grounds recognized as precluding refugee 
protection under the 1951 Convention and 1967 Protocol. It 
would not prohibit funding for the return of persons who had 
been found to be non-refugees by a process genuinely calculated 
to identify and protect refugees.
    Subsection 1701(b) requires that notice be given to the 
appropriate congressional committees prior to use of funds 
authorized for migration and refugee assistance for the 
involuntary return of any person. The subsection provides a 
limited exception in cases where prior notice is impracticable 
due to an emergency involving a threat to human life. The 
Committee believes that forced repatriation is not ordinarily a 
form of ``assistance'' to asylum-seekers or other migrants. The 
involuntary repatriation of non-refugees for law enforcement or 
national security reasons should, except in the most 
extraordinary and compelling circumstances, be supported with 
funds authorized for these purposes.
    Section 107(c) defines ``effect the involuntary return'' as 
requiring by means of physical force or circumstances amounting 
to a threat, thereof a person to return to a country against 
his or her will, regardless of whether the person is present in 
the U.S. and regardless of whether the U.S. acts directly 
through an agent. The language ``regardless of whether the 
United States acts directly or through an agent'' is intended 
to apply to situations in which the United States contracts 
with, makes arrangements with, or funds another government or 
an organization to carry out a program on its behalf. The 
Committee does not intend it to apply to situations in which the United 
States contributes funds to another government or an organization as 
part of a general or special appeal or program and United States funds 
will be commingled with those of other contributors.
    Sec. 1702.--U.S. policy with respect to the involuntary 
return of persons in danger of subjection to torture. Section 
1702(a) prohibits the involuntary return of any person to a 
country in which he or she is in serious danger of being 
subjected to torture. Section 1702(b) states that the terms 
used in this section has the same definition as the Convention 
Against Torture and Other Cruel and Inhuman Treatment or 
Punishment except that the section specifically defines 
``effect the involuntary return''.
    Section 1702 is intended to implement the obligation of the 
United States under the Convention not to return any person to 
a place in which he or she is in serious danger of subjection 
to torture.
    Sec. 1703.--Reports on claims of US firms against the 
Government of Saudi Arabia. Section 1703 requires a report 
every 120 days on the progress in resolving the commercial 
disputes between U.S. firms and the Government of Saudi Arabia.
    Section 1703 requires periodic reports on outstanding 
claims by United States firms against the Government of Saudi 
Arabia. The Committee believes this amendment is necessary to 
help U.S. firms which have completed extensive work for the 
Saudi Government but have had no success in getting their due 
compensation. For example, Gibbs and Hill, Inc., of New Jersey 
has outstanding claims for $55 million for work on a 
desalinization plant completed in 1984.
    Sec. 1704.--Human Rights Report. Section 1704 makes two 
changes to the requirement for the annual Country Reports on 
Human Rights Practices. First, the due date of the report is 
extended from January 31 to February 25. The Committee extended 
the due date in order to give the Assistant Secretary of State 
for Democracy, Human Rights, and Labor, under whose direction 
the report is prepared, adequate time to prepare and print the 
report.
    This section also requires that the report include 
information on child labor practices in each country the report 
covers. Although the current reports contain a section on the 
minimum employment age and a section on forced labor, it is the 
view of the Committee that new section will add important 
information regarding child labor practices.
    Sec. 1705.--Reports on determinations under title IV of the 
Libertad Act. Section 1705 requires the Secretary of State to 
make periodic reports (not less than 30 days after the 
enactment of this subsection and every 3 months thereafter) to 
the Committee describing the ongoing reviews pursuant to Title 
IV of the Cuban Liberty and Democratic Solidarity (LIBERTAD) 
Act of 1996 (22 U.S.C. 6091) and any determinations and 
findings under that title of that Act. Title IV of the LIBERTAD 
Act, requires the Secretary of State to exclude from the United 
States persons ``trafficking'' in property confiscated from 
United States nationals in Cuba. The Committee is concerned with 
published reports that the Secretary of State may be delaying 
determinations under Title IV for reasons that are not contemplated 
under the LIBERTAD Act. The Committee intends to use these periodic 
reports of the Secretary of State to monitor closely the vigorous 
implementation of this ``exclusion'' provision of the LIBERTAD Act.
    Sec. 1706.--Reports and policy concerning diplomatic 
immunity. Section 1706 has its origins in and is virtually 
identical to H.R. 1236, introduced on April 8, 1997, by 
Representative Dreier of California and referred to the 
Committee.
    Section 1706(a) requires the Secretary of State to submit 
to Congress an annual report on cases involving diplomatic 
immunity, including information on: (a) the number of persons 
residing in the U.S. who enjoy full diplomatic immunity from 
the criminal jurisdiction of the U.S.; (b) each case involving 
such persons in which the appropriate federal, State, or local 
authorities reported to the Department of State that the 
authority had reasonable cause to believe such persons 
committed a serious criminal offense within the U.S.; (c) each 
case in which the United States has certified that a person 
enjoys full diplomatic immunity from U.S. criminal 
jurisdiction; (d) the number of U.S. citizens who are residing 
in a receiving state and who enjoy full diplomatic immunity 
from the criminal jurisdiction of such state; and (e) each case 
involving such U.S. citizen in which the U.S. has been 
requested by the government of a receiving state to waive the 
immunity from criminal jurisdiction of the U.S. citizen.
    Section 1706(a) defines serious criminal offense as (1) any 
felony under federal, State, or local law; (2) any federal, 
State, or local offense punishable by a term of imprisonment of 
more than one year; (3) any crime of violence as defined for 
purposes of section 16 of title 18 of the U.S. Code; or (4) 
driving under the influence of alcohol or drugs or driving 
while intoxicated if the case involves personal injury to 
another individual. The Committee understands that the 
Department may rely in good faith on information from local and 
State authorities concerning matters with respect to which the 
reports are made.
    Section 1706(b) expresses the sense of the Congress that 
the Secretary of State should explore, in appropriate fora, 
whether states should enter into agreements and adopt 
legislation to: (1) provide jurisdiction in the sending state 
to prosecute crimes committed in the receiving state by persons 
entitled to diplomatic immunity from criminal jurisdiction; and 
(2) provide that where there is probable cause to believe that 
an individual who is entitled to diplomatic immunity from the 
criminal jurisdiction of the receiving state committed a 
serious crime, the sending state will waive such immunity or 
the sending state will prosecute such individual.
    The Committee recognizes that diplomatic immunity serves 
the interests of the United States. The United States cannot 
have its diplomats exposed to the full rigor of the criminal 
laws of the countries where they are stationed, since they 
could be subject to trumped-up charges, unfair treatment in 
court, or inhumane punishments.
    Section 1706 provides Congressional impetus for 
restructuring a troubling aspect of international practice with 
respect to diplomatic immunity: the prospect that an individual 
who commits a serious offense will escape all liability because 
ofhis or her status as a diplomat. A number of highly 
publicized, and indeed tragic, cases have occurred in recent years. The 
fact is that while cases of diplomats abusing their immunity in the 
United States are relatively rare, the number of such cases needs to be 
reduced, if possible, to zero.
    The Committee applauds governments, such as the government 
of the Republic of Georgia, which have waived the immunity of 
their diplomats accused of serious crimes. It suggests that in 
the exceedingly rare cases where American officials apparently 
abuse their status--and do so in countries where they would be 
prosecuted on an equal footing with local residents and can 
receive a fair trial and humane treatment if convicted--the 
Department consider waiving the immunity of the Americans in 
question.
    The Committee applauds the Administration's practice of 
notifying prosecutors that they may charge diplomats whose 
immunity has not been waived and who have been withdrawn from 
or expelled from the United States. Such abusers of diplomatic 
immunity are then put on the Department's ``watch list'' and 
are denied visas; they may also be subject to extradition if 
they travel to third countries where they are not covered by 
diplomatic immunity.
    Sec. 1707.--Congressional statement with respect to 
efficiency in the conduct of foreign policy. Section 1707 is a 
sense of Congress statement encouraging the Secretary of State 
to submit a plan to Congress to consolidate some or all of the 
functions of the Department of State, the Agency for 
International Development, and the Arms Control and Disarmament 
Agency.
    Sec. 1708.--Congressional statement concerning Radio Free 
Europe/Radio Liberty. Section 1708 expresses a sense of 
Congress that Radio Free Europe/Radio Liberty should continue 
surrogate broadcasting beyond the year 2000 to countries whose 
people do not yet fully enjoy freedom of expression. Radio Free 
Europe/Radio Liberty is often thought of as a relic of the Cold 
War, and in the post-Communist era, many believe these 
surrogate ``Freedom Radios'' are obsolete. However, the 
Committee believes these surrogates will be needed into the 
next century to solidify democracies and free markets in 
Eastern Europe and The Independent States of the Former Soviet 
Union.
    Sec. 1709.--Programs or projects of the International 
Atomic Energy Agency in Cuba. Section 1709 withholds from the 
United States voluntary contributions to the International 
Atomic Energy Agency (IAEA) a sum proportional to programs or 
projects of the IAEA in Cuba. This proportional withholding 
requirement does not apply if Cuba: (1) ratifies the Treaty on 
the Non-Proliferation of Nuclear Weapons or the Treaty of 
Tlatelolco; (2) negotiates full-scope safeguards of the IAEA; 
and (3) incorporates internationally accepted safety standards. 
The section also directs the United States representative to 
the IAEA to oppose technical assistance programs and projects 
of the IAEA at the Juragua Nuclear Power Plant and the Pedro Pi 
Nuclear Research Center and any other program that is a threat 
to the security of the United States.
    The Committee strongly supports the withholding of U.S. 
proportionalvoluntary contributions to the Agency for its 
programs and projects in Cuba. The Committee recognizes that the United 
States provides 25 percent of IAEA's annual budget, about $54 million 
and additional voluntary contributions of about $36 million--a total of 
$90 million annually.
    The Committee is concerned about the programs and 
activities of the IAEA in Cuba, particularly at the Juragua 
Nuclear Power Plant and the Pedro Pi Nuclear Research Center. 
Nuclear reactors at both sites pose significant national 
security threats to the United States should they come on-line. 
It is estimated that radioactive fallout from an accident in 
Cuba could reach as far north as Washington, D.C., and as far 
west as Texas.
    The plant at Juragua was built using Chernobyl and pre-
Chernobyl technology. Due to inadequate funding to date, the 
facility at Juragua will likely never be completed; if it were 
to be completed, it would pose a significant risk to the United 
States because of its substandard construction. The President, 
Department of State, the United States Nuclear Regulatory 
Commission, and the Department of Energy have expressed 
concerns about the construction and operation of Cuba's 
proposed nuclear reactors at Juragua. Given the state of 
disrepair and the potential threat of the Juragua reactors to 
the United States, the Committee questions the efficacy of IAEA 
funding of projects intended to ``mothball'' this flawed 
facility.
    Sec. 1710.--U.S. policy with respect to Jerusalem as the 
capital of Israel. Section 1710 contains four provisions which 
together reaffirm and strengthen United States policy as 
reflected in The Jerusalem Embassy Act of 1995, that Jerusalem 
should remain the undivided capital of Israel. That Act 
recommended that $25 million and $75 million, in two successive 
fiscal years, be authorized from the ``Acquisition and 
Maintenance of Buildings Abroad'' only for construction of a 
U.S. Embassy in Jerusalem. Subsection (a) authorizes those 
amounts for fiscal year 1998 and fiscal year 1999. Subsection 
(b) stipulates that none of the funds authorized to be 
appropriated by this Act may be used to operate a U.S. 
consulate or other diplomatic facility in Jerusalem unless that 
consulate or facility is under the supervision of the United 
States Ambassador in Israel, in accordance with the normal 
diplomatic practice for other American consulates around the 
world.
     Subsection (c) states that none of the funds authorized by 
this act may be available for publication of any official U.S. 
Government document which lists countries and their capital 
cities unless Jerusalem is identified as the capital of Israel. 
Several official U.S. documents already contain such 
identification, and this provision would regularize this 
practice. Subsection (d) states that if requested, the 
Secretary of State shall permit the place of birth of a United 
States citizen born in Jerusalem to be recorded as Jerusalem, 
Israel for the purposes of the registration of birth, 
certification of nationality, or the issuance of a passport.
    Sec. 1711.--Report on compliance with the Hague Convention 
on International Child Abduction. Section 1711 requires a 
report 6 months after enactment, and another report 12 months 
later during 1998 and 1999 on the compliance of the signatories 
to the Hague Convention on the Civil Aspects of International 
Child abduction.
    Each report shall include information on: (1) the number of 
applications forthe return of children submitted by U.S. 
citizens to the U.S. Central Authority that remain unresolved 18 months 
after date of filing; (2) a list of countries to which children in such 
unresolved applications are alleged to have been abducted; (3) a list 
of the countries that have demonstrated a pattern of noncompliance with 
the obligations of the Hague Convention with respect to U.S. 
applications for the return of children submitted to the U.S. Central 
Authority; and (4) detailed information on each unresolved case 
described herein and on actions taken by the Department of State to 
resolve each case. The Committee expects that such information can be 
provided by drawing on materials that the Department routinely collects 
regarding such cases.
    Sec. 1712.--Sense of Congress relating to recognition of 
the Ecumenical Patriarchate by the Government of Turkey. 
Section 1712 expresses a sense of Congress that the United 
States should recognize the Ecumenical Patriarchate, located in 
Istanbul, Turkey as the spiritual center for more than 300 
million Orthodox Christians worldwide, including some 5 million 
in the United States. It was under the leadership and guidance 
of the Ecumenical Patriarchate that the constitutional and 
dogmatic framework of the Christian Church was formulated. The 
Ecumenical Patriarchate, founded in 38 AD, is the locale where 
the New Testament was codified, and the Nicene Creed first 
written. The present Ecumenical Patriarch, Bartholomew is the 
270th successor of St. Andrew who served as the first Patriarch 
some 2,000 years ago.
    In recent years the Ecumenical Patriarchate has experienced 
a number of security threats in Turkey. On September 30, 1996, 
the Patriarchate came under grenade and machine gun attack 
during which an explosion damaged the roof of the Patriarchal 
Cathedral and blew windows out of the sleeping quarters. On May 
28, 1994, three powerful bombs were found and diffused by 
Turkish security forces only a few minutes before they were to 
detonate. On March 30, 1994 two firebombs were hurled into the 
Patriarchate. The Ecumenical Patriarch and those associated 
with the Ecumenical Patriarchate are Turkish citizens and 
entitled to the full protection of Turkish law.
    The reopening of the Halki Patriarchal School of Theology, 
the only educational institution for Orthodox Christian 
leadership in Turkey is vital for the long-term viability of 
the Ecumenical Patriarchate. The Turkish government closed the 
school in 1971. Turkish law requires that the Ecumenical 
Patriarch, as well as all the clergy, faculty and students, to 
be Turkish citizens. The Halki school is the only educational 
institution in Turkey for Orthodox Christian leadership. The 
closing of the school is in violation of international treaties 
to which Turkey has been a signatory, including but not limited 
to the Treaty of Lausanne, the 1968 Protocol, the Helsinki 
Final Act (1975) and the Charter of Paris.
    The Committee strongly supports the recognition of the 
Ecumenical Patriarchate and the reopening of the Halki 
Theological Seminary. It believes that the U.S. government 
should use its diplomatic resources to actively encourage the 
Turkish government along these lines, and also to continue to 
ensure the security of the Patriarch and property belonging to 
the Ecumenical Patriarchate in Istanbul.
    Sec. 1713.--Return of Hong Kong to the People's Republic of 
China. Section 1713 expresses the sense of the Congress that 
the People's Republicof China should respect the rule of law, 
and the freedom of press, speech, association and movement that the 
people of Hong Kong currently enjoy.
    Sec. 1714.--Development of democracy in the Republic of 
Serbia. Section 1714 expresses a sense of Congress regarding 
the various methods and actions that can be taken to support 
the development of democracy in the Republic of Serbia.
    Sec. 1715.--Relations with Vietnam. Section 1715 expresses 
a sense of the Congress that U.S.-Vietnamese relations should 
be developed in such a way as to facilitate maximum progress in 
the areas of POW/MIA, human rights, and refugee issues, 
regional stability and economic relations; that satisfactory 
resolution of United States concerns about POW/MIAs, human 
rights, and refugees are essential to full normalization of 
such relations; that the United States should upgrade the 
priority afforded the bilateral human rights dialogue by 
conducting this dialogue at a level no lower than that of 
Assistant Secretary of State; that in its negotiations with 
Vietnam regarding the provision of the Overseas Private 
Investment Corporation (OPIC) insurance to U.S. investors in 
Vietnam and the granting of Generalized System Preferences 
(GSP) status for Vietnam, the United States should strictly 
hold Vietnam to internationally-recognized worker rights 
standards; and that the Department of State should coordinate a 
multilateral strategy to encourage Vietnam to invite the United 
Nations Special Rapporteur on Religious Intolerance to visit 
Vietnam. The Committee struck the original language of section 
1217, which would have restricted the use of funds to further 
normalize relations with Vietnam, and substituted this 
statement.
    This section also provides that the Secretary of State, in 
order to give Congress the information needed to evaluate the 
U.S. relationship with Vietnam, shall report periodically on 
progress in the areas of POW/MIA issues, progress by Vietnam 
toward release political and religious prisoners, cooperation 
by Vietnam on refugee issues, and vigorous action by Vietnam to 
end extortion, bribery, and other corrupt practices in 
connection with the provision of exit visas.
    The Committee is particularly concerned about the urgent 
need for progress toward the release of all political and 
religious prisoners, including many leading clerics of the 
Unified Buddhist Church, the largest religious denomination in 
Vietnam; Catholic priests and Protestant ministers; pro-
democracy advocates; and other prisoners of conscience. For 
instance, Professor Doan Viet Hoat, 56, a recipient of the 1995 
Robert F. Kennedy Human Rights Award, has been interned for 20 
of the last 22 years and is serving a 15-year prison sentence 
in Vietnam for ``attempting to overthrow the people's 
government'' with his peaceful writings on social, political, 
and economic reform. Release of Professor Hoat and other 
prisoners of conscience will be an important benchmark in 
evaluating whether further progress toward full normalization 
of relations is warranted.
    With respect to refugees, the Committee notes with approval 
the commitment on the part of the Department of State to make 
vigorous efforts on behalf of former political prisoners and 
their families, former United States government employees, and 
other refugees of humanitarian concern to the United States
    Sec. 1716.--Statement concerning return of or compensation 
for wrongly confiscated Foreign properties. Section 1716 
expresses a sense of Congress supporting efforts and 
encouraging further actions by post-Communist countries to 
address the questions of the status of wrongly confiscated 
properties. The provision also calls for the return of property 
formerly belonging to Jewish communities as a means of 
redressing the survivors of the Holocaust.

                           General Statements

Consular Officer Liability

    Reflecting national concerns regarding border security and 
international terrorism, section 140(c)(1) (A) and (B) of PL 
103-236 required that consular officers certify in writing that 
a visa lookout check has been made and that there is no basis 
for exclusion under that system. If the consular officer fails 
to carry out the check, serious career consequences are 
prescribed. There is agreement that consular officers bear the 
responsibility for lapses in following proper procedures in the 
issuance of a visa, and such failures should be reflected in 
performance evaluations and disciplinary actions pursuant to 
the intent of the law. However, when an act or omission occurs 
while an employee is acting within the scope of his/her 
employment, it is the Committee's view that any legal remedy is 
against the U.S. Government--not the employee as an individual.

Administrative Remedy

    The Committee recognizes the high risk security activities 
and traditional law enforcement duties performed by agents of 
the Bureau of Diplomatic Security (DS) and expects the 
Department to seek administrative remedial action to ensure 
equity between retirement benefits for DS agents and other 
federal law enforcement personnel.

                       Division C--Funding Levels

    Sec. 2001.--Authorization of Appropriations for Certain 
Programs. This section authorizes the appropriation of 
$116,878,000 in fiscal year 1998 for any program in Division A 
or B of the bill authorized for appropriations below the 
President's fiscal year 1998 request. Funding from this account 
may not increase any account in this bill to a level above the 
President's FY98 request. Funds transferred from this account 
to others in the bill will be subject to notification under 
section 634A of the FAA.
    The Commitee authorized this amount pending advice from the 
Chairman of the Budget Committee on the recommended level of 
funding to be approved for the International Affairs Function 
150 account. The Committee intends to conform overall spending 
in the bill to the level recommended by the Budget Committee 
Chairman.


                      Committee Oversight Findings

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
the findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

         Committee on Government Reform and Oversight Findings

    No findings or recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(l)(3)(D) of rule XI of the Rules of the House of 
Representatives.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                   Constitutional Authority Statement

    In compliance with clause 2(l)(4) of rule XI of the Rules 
of the House of Representatives, the Committee cites the 
following specific powers granted to the Congress in the 
Constitution as authority for enactment of H.R. 1486 as 
reported by the Committee: Article I, section 8, clause 1 
(relating to providing for the common defense and general 
welfare of the United States); and Article I, section 8, clause 
18 (relating to making all laws necessary and proper for 
carrying into execution powers vested by the Constitution in 
the government of the United States).

New Budget Authority and Tax Expenditures, Congressional Budget Office 
             Cost Estimate, and Federal Mandates Statements

    These Committee expects to adopt a cost estimate of the 
Congressional Budget Office as its submission of any new 
required information on new budget authority, new spending 
authority, new credit authority, or an increase or decrease in 
the national debt, which it expects to provide in a 
supplemental report. The Committee expects to adopt an estimate 
of Federal mandates prepared by the Director of the 
Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act, which it expects to provide in a 
supplemental report.
                ADDITIONAL VIEWS OF HON. LEE H. HAMILTON

                        i. a bipartisan process

    I commend the Chairman for the way in which H.R. 1486 was 
considered by the Committee. The Chairman was fair to both 
sides. The majority and minority staff worked together to 
resolve as many issues as possible. The debate in the committee 
was constructive and civil. We have had a good airing of 
differences, without partisan rancor. All of this is positive.

                          ii. a good framework

    This bill is an improvement over H.R. 1486 as introduced. 
It is an improvement over the bill the Committee reported and 
the House passed two years ago. It contains a number of useful 
provisions, including a new policy on international anti-
narcotics cooperation, and important new language on the 
responsibilities of the State Department's inspector general.
    Most importantly, this bill reaches the President's funding 
request level for Fiscal Year 1998. It was critical to my 
support for reporting the bill to the House. For this reason, I 
am disturbed by the reference in the majority report to 
conforming the funding request in the bill to a level that 
would be recommended by the Budget Committee chairman. I 
understand the impact of the Budget Committee's actions on this 
Committee's reported authorizing levels; I do not understand 
altering our committee's action based on a recommendation 
supplied by an individual Member.

                  iii. serious concerns about the bill

    I have other serious concerns about the bill. Several 
problems will need to be addressed at some point in the 
legislative progress of H.R. 1486.
    First, I am concerned about earmarks. They are popular 
politically. But the consequences are serious. When we earmark 
funds for child survival, for example, the Agency for 
International Development must reduce other crucial programs 
within the development assistance account, such as agricultural 
investment and privatization. That is just one example. This 
bill is literally built on earmarks. Ninety-six percent of 
foreign military assistance, eighty-four percent of economic 
support funds, and seventy percent of development assistance 
are earmarked. The executive branch cannot properly conduct 
foreign policy when it has no flexibility on how it allocates 
its funds. These excessive earmarks put the Administration in a 
strait jacket when it tries to administer programs. These 
earmarks are Congressional micromanagement in the extreme.
    Second, I am concerned about several of the policies 
mandated in this bill:
          The language on Jerusalem is unacceptable to the 
        Administration, and to me. It has the potential to do 
        serious damage to the Middle East peace process, which 
        I am sure none of us want to do.
          I am concerned about conditions we are placing on aid 
        to Russia, which prohibit assistance above current 
        levels unless the President determines that Russia has 
        terminated all cooperation with missile or nuclear 
        programs in Iran and nuclear reactor projects in Cuba. 
        These are important policy objectives, but it does not 
        serve the U.S. national interest when we restrict our 
        own ability to promote democratic and economic reform 
        in Russia. Furthermore, I am concerned about the 
        unbalanced language in the Committee report, which 
        fails to recognize Russia's progress on reform and 
        draws an inaccurate and alarmist picture of Russia's 
        policies toward its neighbors.
          The bill also includes eight new provisions on Cuba, 
        calling for four new reports, whose net effect will be 
        to push the United States further in the direction of a 
        counterproductive and unilateral policy toward Cuba, 
        creating further tensions with our closest friends and 
        trading partners.
          The bill may not give the President sufficient 
        flexibility to respond with food aid if mass famine in 
        North Korea occurs.
          I am concerned that the bill conditions U.S. 
        assistance to Northern Ireland on mandatory compliance 
        with employment standards of the sort which have been 
        controversial in the United States. I would prefer a 
        non-binding endorsement of these principles.
          Understanding that report language does not carry any 
        legal weight, I am struck by the numerous attempts to 
        limit the Administration's flexibility that permeate 
        the majority report. For example, the majority report 
        tries to add many more funding restrictions. One of 
        them would require the Administration to expend at 
        least fifty percent of U.S. assistance to Nicaragua in 
        areas of resettlement of the former Nicaraguan 
        Resistance. Another dictates to whom and how the 
        Administration should allocate voluntary contributions 
        to the Organization of American States.

    Third, H.R. 1486 continues the trend toward micromanagement 
of foreign policy by the Congress. Let me offer just a few 
examples. This bill mandates a new ambassador for counter 
terrorism. It calls for the appointment of a special envoy for 
Tibet, a step that could significantly complicate management of 
the vitally important U.S.-China relationship. It creates a new 
assistant secretary for human resources. It mandates a specific 
set of qualifications for the assistant secretary for 
diplomatic security. It restructures the Population, Refugees 
and Migration Bureau. It sets a ceiling on the number of 
foreign service officers at the State Department, USIA, and 
AID. The Administration opposes all of these provisions because 
they seriously intrude on the executive branch ability to 
administer its programs.
    Finally, I am concerned about the issues that are not 
resolved in this bill. This bill is not the last word on 
population funding. It is not the final word on UN reform and 
arrearages. It does not contain final language on 
reorganization. I mention these issues because I am concerned 
about how they will be addressed when this bill is considered 
by the House.

                             IV. Conclusion

    The bill the committee reported is a bipartisan product. 
That is a welcome development. Our foreign policy is most 
effective when Democrats and Republicans put aside their 
differences and work together.
    I look forward to moving this bill forward through the 
legislative process. My strong hope is that the bill will be 
further improved on the floor and in conference committee, so 
that the President will be able to sign it into law.

                                                   Lee H. Hamilton.
  ADDITIONAL VIEWS OF CHRISTOPHER H. SMITH, ILEANA ROS-LEHTINEN, AND 
                             HENRY J. HYDE

    Our Colleagues should be aware that although section 1523 
appears to impose a sanction on the United Nations Population 
Fund (UNFPA) if it conducts activities in the People's Republic 
of China, the sanction is far weaker than the sanction 
contained in the bill as introduced or than the House has 
passed in previous years. In our view, section 1523 will be 
insufficient to deter UNFPA from resuming its active co-
operation with the PRC population control program, which 
employs a number of coercive methods including forced abortion 
and forced sterilization.
    First, the policy envisioned in this section establishes 
separate accounts for the U.S. contribution to the United 
Nations Population Fund (UNFPA)--a mere bookkeeping trick that 
trivializes the ongoing pervasive abuse of women and children 
committed by the Chinese government. Many of our colleagues 
would reject such a gimmick if the victims were endangered 
tigers or rhinoceroses.
    Second, the provision withholds some, but not all, of the 
U.S. contribution to UNFPA if it conducts a China country 
program. In prior years when Congress has enacted this formula, 
UNFPA has continued its activities in China. Only in 1996, when 
faced with the threat that the United States would withhold its 
contribution altogether if UNFPA continued its China program, 
did the organization even go through the motions of saying that 
it would withdraw from China. Even then, the organization kept 
its office in Beijing, administered grants in China for which 
funds had been obligated in prior years, and negotiated with 
the PRC government for future programs.
    On April 25, 1993, the New York Times reported in detail on 
``a major nationwide crackdown by the Chinese family planning 
authorities.'' The Times cited a classified Government report 
and confirmation by local authorities in describing a tragic 
episode in Hunan Province:

          She should be taking her two-month-old baby out 
        around the village now, proudly nursing him and 
        teaching him about life. Instead her baby is buried 
        under a mound of dirt, and Li Qiuliang spends her time 
        lying in bed, emotionally crushed and physically 
        crippled.
          The baby died because under China's complex quota 
        system for births, local family planning officials 
        wanted Ms. Li to give birth in 1992 rather 1993. So on 
        December 30, when she was seven months pregnant, they 
        took her to an unsanitary first-aid station and ordered 
        the doctor ro induce early labor. Ms. Li's family 
        pleaded. The doctor protested. But the family planning 
        workers insisted. The result: the baby died after nine 
        hours, and 23-year-old Ms. Li is incapacitated.

    Harvard professor Laurence Tribe, who has represented 
abortion rights groups before the U.S. Supreme Court, has 
reported that China's one child per family policy utilize 
``compulsoryabortions'' as one of its measures. Professor Tribe 
further states that ``China's compulsory scheme has been met with 
widespread domestic resistance'' and that these compulsory policies 
``greatly undermine the well-being of the couples who bear a female 
child.'' (Laurence H. Tribe, ``Abortion: The Clash of Absolute,'' New 
York: W.W. Norton & Company, 1990.)
    Dr. John Aird, former Senior Research Specialist on China 
at the U.S. Census Bureau, stated at a symposium on April 6, 
1993 that the ``key element'' in China's population control 
efforts is ``coercion.'' Anthropologist Steven Mosher and other 
China experts have also reported in great detail on China's 
systematic use of coercion in its population control program.
    Mark L. Edelman, the former Acting Administrator of the 
Agency for International Development, explained the nature of 
UNFPA's assistance to China in a June 19, 1991 letter:

          UNFPA furnished assistance for computer hardware so 
        China could determine whether authorized birth targets 
        were satisfied; support toward making China self-
        sufficient in the training of demographers and in the 
        conduct of scientific research on population and its 
        relationship to economic and social planning; 
        statistical equipment, expert technical advice, and 
        training to streamline the collection and transmission 
        of family planning service data at the national, 
        provincial, and prefecture levels and to strengthen and 
        develop the capacity of Chinese Family Planning 
        Ministries to process and analyze service data; and the 
        creation of training centers for 70,000 full-time 
        family planning workers. This contribution to the 
        training and effectiveness of individuals who planned, 
        managed, and carried out the implementation of China's 
        one-child policy which resulted in many forms of 
        abuses, including coerced abortion and involuntary 
        sterilization. UNFPA's support for China provided it 
        the modern capability to establish the targets 
        necessary to enforce the one-child policy and monitor 
        its effectiveness. UNFPA continues to provide this kind 
        and quality of assistance to China's population 
        program.

    Mr. Edelman also pointed out that the UNFPA has repeatedly 
provided cover for China's coercive practices:

          Although the China population program is pervasively 
        coercive, UNFPA continues to defend it vigorously. 
        China's program was provided a United Nations award in 
        1983; UNFPA's former executive director criticized 
        A.I.D. and defended China arguing that each country has 
        its own view of what really is a free choice; and the 
        current executive director of UNFPA has stated that 
        China is operating a totally voluntary program.

    After receiving a U.N. award for its population control 
efforts in 1983, China's senior population official (Qian 
Xinzhong) claimed that the award had put the ``imprimatur of 
the world body'' on China's population control program. We 
submit that in light of the overwhelming evidence that 
systematic violations of fundamental human rights are 
continuing on a widespread basis, it would be a travesty if the 
U.S. Congress acted in a manner that appeared to put the 
``imprimatur'' of the United States on China's coercive and 
repulsive program.
    The UNFPA's Executive Director, Nafis Sadiq, has not only 
defended China's program during numerous public appearances, 
she has cited it as a model program for other countries. During 
an exclusive interview with XINHUA--China's official news 
agency--on April 11, 1991, Sadiq had high praise for China's 
program:

          China has every reason to feel proud and pleased with 
        its remarkable achievements made in its family planning 
        policy and control of its population growth over the 
        past 10 years. Now the country could offer its 
        experiences and special experts to help other 
        countries.

    Neither Dr. Sadiq nor any other UNFPA official has ever 
retracted this statement.
    China's coercive population program should be condemned by 
all those who value human rights. The UNFPA's ongoing cover-up 
of China's practices makes it an inappropriate partner for the 
United States in promoting methods of family planning around 
the world. Until the UNFPA completely disassociates itself from 
China's population control program, the United States should 
withhold all funding from the UNFPA.

                                   Chris Smith.
                                   Ileana Ros-Lehtinen.
                                   Henry Hyde.
                  ADDITIONAL VIEWS OF HON. TOM LANTOS

    I am deeply concerned about the approach, tone, and content 
of the Majority's report language regarding section 1327, 
Availability Pay for Certain Criminal Investigators Within the 
Diplomatic Security Service. As the primary author of this 
provision, I understood it to extend Law Enforcement 
Availability Pay (LEAP) eligibility to most special agents of 
the Department of State's Diplomatic Security (DS) Service. The 
report language seems to assert that the Committee interprets 
section 1327 in a way that is contrary to my understanding and 
that I believe would make the provision unworkable and 
destructive to achieving the purposes for which I support 
extending LEAP coverage to DS special agents.
    I am pleased that the majority recognizes the need for 
``parity'' between law enforcement employees of the Department 
of State and of all other federal law enforcement agencies, but 
much of the report language is inconsistent with that 
statement. In submitting this provision, I sought to include 
any of its Diplomatic Security special investigators whose 
primary duties consist of protective functions or criminal 
investigations. The Secretary of State is firmly of the opinion 
that it is in the Department's interest to remove the current 
exemption to ensure that the DS special agents are treated the 
same as their law enforcement colleagues in other agencies, and 
as are criminal investigators in the Department of State's 
Office of the Inspector General. Under section 1327, the 
Department would in fact be more restricted than other federal 
law enforcement agencies, since DS agents who do not work LEAP 
hours would not receive LEAP benefits. There is no reason to 
place further restrictions on LEAP eligibility in an effort to 
micromanage a program that is already in place for other, 
comparable law enforcement officials.
    I particularly take exception to excluding those who 
provide essential leadership and support elements of protective 
and investigative functions that require the experience and 
expertise of a special agent. Where such experience and 
expertise is not required, the Bureau of Diplomatic Security 
already makes maximum use of non-law enforcement personnel. In 
addition, the unpredictable nature of the Bureau's protective 
and investigative responsibilities mandates that the special 
agents in leadership and support positions repeatedly work 
unscheduled overtime, often being taken from their duty 
stations to meet protective or investigative demands.
    To consider providing LEAP on an intermittent basis, as the 
majority report language suggests, does not take into 
consideration the frequency and unpredictability of the 
unscheduled overtime these agents are called upon to work. 
Also, to implement LEAP on an intermittent basis would be 
administratively unmanageable.
    This is not what I had in mind when I advocated LEAP for 
the Diplomatic Security special agents, and it is not what I 
understood the provisions of Section 1327 to mean.

                                                        Tom Lantos.
                 ADDITIONAL VIEWS OF HON. BRAD SHERMAN

    The United States has provided Azerbaijan with $100 million 
in humanitarian assistance since the US started its program of 
support for the states of the former Soviet Union. But this 
country, which claims the region as part of its sovereign 
territory, has not allowed a single dollar of this aid to be 
delivered to Nagorno Karabagh due to fears that this would 
represent tacit recognition by the United States of Nagorno 
Karabagh's independence.
    The State Department has declined to provide assistance 
directly to groups working in Nagorno Karabagh, except for a 
very limited amount of work done by the International Committee 
of the Red Cross. I believe that the US should provide 
assistance through Non-Governmental Organizations (NGOs) and 
Private Voluntary Organizations (PVOs).
    At the full committee markup of this bill, I offered an 
amendment which would have authorized aid to Nagorno Karabagh 
through NGOs and PVOs. This amendment, which was supported by 
14 members of the committee, was designed to provide help to 
needy people in Karabagh while allaying the concerns that this 
would provide tacit recognition of Nagorno Karabagh as an 
independent entity. It contained language clearly stating that 
the provision of aid in this manner should not be construed to 
affect the position of the US government with respect to the 
status of Nagorno Karabagh.
    The assistance of NGOs and PVOs aided by US funds is needed 
to alleviate a serious health condition in the enclave. A 
recent report by the US Committee of the Red Cross outlines in 
detail the health needs of this region.
    Most disturbing is the increase in childhood illness and 
mortality as a result of a lack of medical facilities, 
personnel, basic medicines and vaccines, as well as a war-torn 
infrastructure. Many of the groups which had been working there 
have had to withdraw due to lack of funding.
    Regrettably, a substitute for my amendment was approved by 
the Committee. Offered by Mr. Burton, the substitute contains 
sense of Congress language calling on the governments of the 
region to cooperate in the delivery of assistance to all people 
in the region, including those in Nagorno Karabagh, and it 
requests a State Department report on the current situation. 
Unfortunately, Mr. Burton's language fails to provide for an 
authorization of aid to Nagorno Karabagh and also implies that 
the region is part of Azebaijan. We should not judge the final 
status of Nagorno Karabagh, which is still subject to 
negotiations, in the context of trying to find the most 
effective means of providing humanitarian assistance to needy 
people.

                                                      Brad Sherman.