[Senate Report 105-255]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 482
105th Congress                                                   Report
                                 SENATE

  2d Session                                                    105-255
_______________________________________________________________________


 
      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                        APPROPRIATION BILL, 1999

                                _______
                                

                 July 21, 1998.--Ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                         [To accompany S. 2334]

    The Committee on Appropriations reports the bill (S. 2334) 
making appropriations for Foreign Operations and related 
programs for the fiscal year ending September 30, 1999, and for 
other purposes, reports favorably thereon and recommends that 
the bill do pass.



Amounts in new budget authority

Fiscal year 1998 appropriations......................... $13,190,698,080
Fiscal year 1999 budget estimate........................  14,124,044,980
Amount of bill as reported to Senate....................  12,599,172,980
Bill as recommended to Senate compared to:
    1998 appropriations.................................    -596,795,100
    Budget estimate.....................................  -1,529,872,000
Fiscal year 1998 supplemental...........................  17,861,000,000
Amount recommended to Senate............................  17,861,000,000



                            C O N T E N T S

                              ----------                              
                                                                   Page
Summary of total budget authority in the bill....................     3
Introduction.....................................................     3
Title I--Export assistance:
    Export-Import Bank of the United States......................     5
    Overseas Private Investment Corporation......................     6
    Trade and Development Agency.................................     6
Title II--Bilateral economic assistance:
    Bilateral assistance.........................................     7
    Development assistance.......................................     7
    International disaster assistance............................    23
    Micro and small enterprise development [MSED]................    23
    Urban and environmental credit program.......................    24
    Debt restructuring...........................................    24
    Payment to the Foreign Service retirement and disability fund    25
    AID operating expenses.......................................    25
    Operating expenses of the Office of Inspector General........    25
    Other bilateral economic assistance..........................    25
    Independent agency: Peace Corps..............................    34
    Department of State:
        International narcotics control..........................    35
        Migration and refugee assistance.........................    36
        Emergency refugee and migration assistance fund..........    36
        Nonproliferation, antiterrorism, demining, and related 
          programs...............................................    36
Title III--Military assistance:
    International military education and training................    39
    Foreign military financing...................................    39
    Special defense acquisition fund.............................    40
    Peacekeeping operations......................................    41
Title IV--Multilateral economic assistance:
    International Development Association........................    42
    International Bank of Reconstruction and Development.........    42
    Inter-American Development Bank..............................    43
    Asian Development Bank.......................................    43
    European Bank for Reconstruction and Development.............    44
    International Monetary Fund..................................    44
    International Organizations and Programs.....................    44
Title V--General provisions......................................    46
Title VI--Multilateral Economic Assistance.......................    49
    Payments for amounts previously due..........................    49
    Loans to International Monetary Fund.........................    50
Compliance with paragraph 7, rule XVI of the standing rules of 
  the Senate.....................................................    51
Compliance with paragraph 7(c), rule XXVI of the standing rules 
  of the Senate..................................................    51
Compliance with paragraph 12, rule XXVI of the standing rules of 
  the Senate.....................................................    52
Budget impact statement..........................................    62


                                 SUMMARY TABLE: AMOUNTS IN NEW BUDGET AUTHORITY                                 
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee    
                                                                                                recommendation  
                                                                                Committee        compared with  
                          Item                             Budget estimate   recommendation     budget estimate 
                                                                                                increase (+) or 
                                                                                                 decrease (-)   
----------------------------------------------------------------------------------------------------------------
Export assistance.......................................      $708,940,000      $674,000,000        -$34,940,000
Economic assistance--Bilateral..........................     8,033,432,000     7,437,652,000        -600,780,000
Military assistance.....................................     3,409,910,000     3,442,910,000         +33,000,000
Economic assistance--Multilateral.......................     1,971,762,980     1,044,610,980        -927,152,000
                                                         -------------------------------------------------------
      Total, fiscal year 1999...........................    14,124,044,980    12,599,172,980      -1,529,872,000
----------------------------------------------------------------------------------------------------------------


                     FISCAL YEAR 1998 SUPPLEMENTAL                      
------------------------------------------------------------------------
                                                           Committee    
    Congressional budget recap       Budget estimate     recommendation 
------------------------------------------------------------------------
U.S. quota........................    $14,500,000,000    $14,500,000,000
Loans to International Monetary                                         
 Fund.............................      3,361,000,000      3,361,000,000
                                   -------------------------------------
      Total.......................     17,861,000,000     17,861,000,000
------------------------------------------------------------------------

                              INTRODUCTION

    In fiscal year 1998, the Committee provided approximately 
$13,200,000,000 for foreign operations and related programs, of 
which $359,753,100 was for obligations at multilateral 
institutions previously due. In fiscal year 1999 the 
administration has requested $14,070,000,000 of which nearly 
$500,000,000 is for arrears at these institutions. The request 
level not only substantially exceeds last year's level, but 
also does not permit the Committee to comply with the Balanced 
Budget Act signed by President Clinton in 1997.
    Remaining within the foreign operations allocation, the 
Committee has provided $12,599,172,980 in funding for foreign 
operations activities of an allocation of $12,600,000,000. This 
level has allowed the Committee to maintain most accounts near 
last year's level.
    Within this framework, the Committee continues to view as a 
high priority the transition underway in the New Independent 
States of the Former Soviet Union. The Committee has maintained 
earmarks as a measure of support to secure reforms in several 
key countries.
    In addition, rising concerns about the global economic slow 
down and the potential impact on U.S. market share, 
particularly in Asia, convinced the Committee to increase 
assistance for export promotion programs over last year's level 
(although well below the request level) and to include language 
previously passed by the Senate regarding the new arrangements 
to borrow and the quota increase for the International Monetary 
Fund.

                                TITLE I

                           EXPORT ASSISTANCE

                Export-Import Bank of the United States

                         subsidy appropriation

Appropriations, 1998....................................    $683,000,000
Budget estimate, 1999...................................     808,000,000
Committee recommendation................................     785,000,000

                        administrative expenses

Appropriations, 1998....................................     $48,614,000
Budget estimate, 1999...................................      51,940,000
Committee recommendation................................      49,000,000

    The Committee recommends $785,000,000 to support direct 
loans, loan guarantees, insurance, and tied-aid grants at the 
Export-Import Bank of the United States. The Committee has not 
provided the requested increase for administrative expenses but 
has maintained the account at approximately last year's level 
of $49,000,000.
    Last year the Committee noted the Export Import Bank, the 
Overseas Private Investment Corporation and the Trade 
Development Agency had significantly underestimated 
requirements for their services, especially in the New 
Independent States of the Former Soviet Union. The Committee 
requested a report by January 15, 1998, assessing the potential 
5-year requirements U.S. export agencies anticipate, and 
management, budgetary, and policy adjustments necessary to be 
responsive to the rapidly changing export environment. The 
administration has failed to produce this report and continues 
to operate on an ad hoc basis, an approach the Committee views 
with some alarm.
    Due to challenges in key markets in Asia, the Committee has 
met the expected increase in export promotion needs for fiscal 
year 1999. However, without a longer term analysis of market 
trends and corresponding agency requirements, the Committee 
will not continue with such substantial support.
    In addition to these issues, the Committee has been 
concerned by recent decisions of the Bank to extend loans to 
state-owned collectives and entities in the New Independent 
States of the former Soviet Union. Although arguably secured by 
sovereign guarantees, the decisions perpetuate the legacy of 
communism, a course the Committee believes is inconsistent with 
U.S. policy interests in promoting free markets. The Committee 
has included language which prohibits any further disbursement 
of loans or guarantees to state-owned entities. The Committee 
directs the Bank to develop and submit to Congress guidelines 
regarding support to enterprises in the New Independent States.

                Overseas Private Investment Corporation

                         subsidy appropriation

                              direct loans

Appropriations, 1998....................................      $4,000,000
Budget estimate, 1999...................................       4,000,000
Committee recommendation................................       4,000,000

                         Subsidy Appropriation

                            Guaranteed Loans

Appropriations, 1998....................................     $56,000,000
Budget estimate, 1999...................................      46,000,000
Committee Recommendations...............................      46,000,000

                        administrative expenses

Appropriations, 1998....................................     $32,000,000
Budget estimate, 1999...................................      34,000,000
Committee recommendation................................      32,000,000

    The Committee recommends $50,000,000 for the subsidy cost 
of OPIC's direct and guaranteed loans. In addition, the 
Committee recommends $32,000,000 for administrative expenses.
    Last year the Committee encouraged OPIC to shift emphasis 
to sector specific funds in order to support smaller, 
innovative American businesses in fast growing areas, including 
marine transportation, healthcare equipment and services, and 
food processing. The Committee's views were ignored.
    In responding to congressional inquiries on the status of 
these efforts, OPIC noted it is contributing toward two funds 
totaling $420,000,000 in commitments focusing on global climate 
and environmental initiatives. Neither fund reflects guidance 
offered by Congress in fiscal year 1998. In addition, OPIC has 
established a $150,000,000 fund for Africa, again with an 
environmental emphasis. Documentation provided on this fund 
suggests it is being established consistent with a 
congressional mandate. However, the Committee notes the 
legislation which would encourage such a fund has not been 
enacted.
    The Committee is similarly disappointed with the 
Corporation's failure to effectively manage the Caucasus 
Enterprise Fund established by Congress several years ago. Very 
little of the $46,000,000 made available has been invested.
    The Committee notes that OPIC has moved quickly to initiate 
action in areas of political interest to the administration 
while ignoring congressional direction. The Committee has 
withheld the release of one-half of OPIC's administrative 
expenses pending resolution of these issues.

                      Trade and Development Agency

Appropriations, 1998....................................     $41,500,000
Budget estimate, 1999...................................      50,000,000
Committee recommendation................................      43,000,000

    The Committee recommends providing $43,000,000 for the 
Trade and Development Agency [TDA] for fiscal year 1999.

                                TITLE II

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

                  AGENCY FOR INTERNATIONAL DEVELOPMENT

                          Bilateral Assistance

Appropriations, 1998....................................  $2,151,000,000
Budget estimate, 1999...................................   2,123,687,000
Committee recommendation................................   2,099,000,000

    The amounts listed in the above table for fiscal year 1998 
appropriations, the fiscal year 1999 administration request, 
and the Committee recommendation include funding appropriated 
or requested under development assistance, UNICEF, the African 
Development Foundation, the Inter-American Foundation, 
international disaster assistance, debt restructuring, micro 
and small enterprise development, and housing and other credit 
guarantee programs. The appropriate statutory authorities for 
activities and programs are included in the recommendation with 
a minimum of earmarking or designation of levels of assistance 
for the consolidated accounts. It is the Committee's intention, 
through consolidation of these accounts, to provide the 
President flexibility in order to respond to global 
development, economic, and humanitarian requirements.

                         DEVELOPMENT ASSISTANCE

Appropriations, 1998....................................  $1,914,000,000
Budget estimate, 1999...................................   1,878,634,000
Committee recommendation................................   1,890,000,000

                      COMBATING INFECTIOUS DISEASE

    Last year, after hearings that revealed serious 
deficiencies in the world's ability to monitor and combat 
infectious disease and the lack of a coherent U.S. response to 
this problem, the conferees provided an additional $50,000,000 
toward a multiyear initiative to develop a U.S. strategy to 
support global efforts against infectious disease. The 
Committee applauds AID for the steps it has taken to consult 
with relevant agencies, organizations, and other experts in 
developing a U.S. strategy. The strategy, which identifies four 
priorities--surveillance, antimicrobial resistance, 
tuberculosis, and malaria--is being implemented through AID, 
the Centers for Disease Control and Prevention, the World 
Health Organization, and others. In an increasingly 
interdependent world, the threat of deadly epidemics caused by 
microbes spread by modern transportation cannot be minimized 
anymore than the threat of biological weapons. The Committee 
was disappointed that the administration's fiscal year 1999 
budget request would sharply cut funding for this new 
initiative. The Committee has, therefore, included bill 
language requiring that not less than the current level of 
funding be made available in fiscal year 1999 to implement 
AID's infectious disease strategy.
    The Committee is aware that tuberculosis [TB] kills some 3 
million people annually and, because of the ease with which it 
is transmitted, continues to threaten large numbers of 
Americans in both urban and rural communities where the public 
health system has deteriorated. The Committee strongly supports 
AID's decision to significantly increase funding for TB 
prevention and control programs.
    The Committee is concerned that the incidence of 
tuberculosis along the Texas-Mexico border is three times the 
national rate and urges AID to contribute to the binational 
surveillance and treatment initiative underway.
    The Committee recognizes the important work of the Center 
for Health and Population Research and commends the 
international consortium of public and private sector sources 
which collectively contribute to the center's annual budget. 
The Committee encourages a contribution of $1,500,000 to aid in 
the establishment of an endowment fund in an effort to offset 
any variation in annual funding from the center's donors.

                 AMERICAN SCHOOLS and HOSPITALS ABROAD

    The Committee has provided not less than $15,000,000 for 
the important work carried out by institutions funded under the 
American Schools and Hospitals Abroad [ASHA] Program.
    The Committee believes that several institutions which have 
received funding under ASHA have distinguished records and 
deserve further support. They include:
  --The American University in Beirut which has trained Middle 
        Eastern leaders for 130 years in a strong liberal arts 
        tradition encouraging freedom of expression, private 
        initiative, and tolerance. Its academic quality and 
        longstanding relationship with regional governments 
        make the university a primary resource for regional 
        development.
  --The Lebanese American University (formerly Beirut 
        University College) is the most rapidly growing 
        institution of higher learning in Lebanon and is an 
        increasingly important resource for talent in this 
        region.
  --The Hadassah Medical Organization has established an 
        important record of outreach and service. Hadassah's 
        programs are designed to train native populations to 
        improve the health and welfare of their own people 
        using American ideas and technology.
  --The Feinberg Graduate School [FGS] of the Weizmann 
        Institute of Science in Israel has long served as a 
        model of American scientific education for postgraduate 
        students and scholars from around the world. ASHA funds 
        have been used exclusively to purchase American-made 
        scientific equipment from American suppliers.
  --The Johns Hopkins University's centers in Bologna, Italy, 
        and Nanjing, China are vital national resources 
        promoting democracy and international market economics 
        in central and Eastern Europe and China. The Committee 
        strongly directs that not less than $500,000 be 
        provided for the Nanjing center.

                         LAOS CROP SUBSTITUTION

    The Committee is aware that silk production in Laos offers 
a profitable alternative to local farmers who would otherwise 
grow opium for export, and that the United States Embassy in 
Laos is seeking to support a microcredit program to promote 
silk production. The Committee provides $2,000,000 for this 
purpose.

               U.S. TELECOMMUNICATIONS TRAINING INSTITUTE

    The Committee has provided $500,000 to the U.S. 
Telecommunications Institute [USTTI]. USTTI is a nonprofit 
joint venture between the public and private sectors dedicated 
to providing tuition free communications and broadcast training 
to professionals from around the world.

                                 CYPRUS

    The Committee has provided $15,000,000 for Cyprus from 
development assistance and economic support fund resources. The 
Committee intends that these resources be made available to 
maximize leverage in negotiations over Cyprus.

                                 BURMA

    The Committee has provided not less than $10,000,000 in 
funding to promote democracy in Burma and support humanitarian 
activities for displaced Burmese. The Committee believes the 
assistance must be provided consistent with U.S. interests in 
restoring democracy. Therefore, the Committee requires that at 
least $2,000,000 of the funds be administered after written 
consultations regarding appropriate guidelines with the 
legitimate government elected, but prevented from assuming 
office, in 1990.
    The Committee has also increased humanitarian aid to 
displaced Burmese in camps along Burma's borders. The Committee 
directs that in addition to medical relief and related 
activities, support be provided for basic education for 
children in these camps. The Committee acknowledges the 
enormous pressures placed on the Government of Thailand in 
addressing refugee crises on both the Burma and Cambodian 
borders and expects these resources to ease some of that 
burden.
    The Committee is concerned by the slow rate of disbursement 
of democracy and humanitarian assistance for Burma. Although 
there has been little variation on an annual basis in 
recipients selected to receive or use resources, the State 
Department seems unable to move promptly in issuing requests 
for proposals and subsequent grants. Therefore, within 15 days 
after the date of enactment of this act the Committee directs 
the Department to provide a report on obligation of resources 
made available in fiscal years 1997 and 1998, and an assessment 
of any changes anticipated in the administration of 1999 
resources, other than those funds which are to be made 
available after consultations with the government elected in 
1990.

                                CAMBODIA

    To date, the international community has invested more than 
$3,000,000,000 in peacekeeping and reconstruction support for 
Cambodia. Following the coup in 1997, political, economic, and 
security conditions in Cambodia have deteriorated. Although 
elections are scheduled for July 1998, there continue to be 
credible reports of harassment, intimidation, and murder of 
political candidates opposing the government of Hun Sen. 
Candidates other than those associated with Hun Sen have been 
denied the opportunity to campaign, give speeches, hold 
meetings, and have had limited access to media. These 
conditions raise serious questions whether the outcome of any 
election can be deemed fair.
    Nonetheless, the administration has maintained that the 
political environment is conducive to free and fair elections. 
In testimony in June 1998, the Secretary of State indicated the 
Department did not support the opposition's call to postpone 
the election and affirmed official support for moving forward 
in July.
    In correspondence in June, the President stated, ``There 
has been some recent progress in creating a framework for 
parliamentary elections. Political exiles have returned to 
Cambodia without incident; international observers are on the 
ground and voter registration is proceeding.''
    In contrast, in a June assessment, the United Nations 
Special Representative in Cambodia documented 49 extra-judicial 
killings, in addition to the 41 murders which occurred during 
and immediately after the coup. The Representative also 
concluded, ``there are still serious problems when it comes to 
meeting requirements set by the Secretary General for U.N. 
support of elections.'' These problems were identified as voter 
intimidation, restricted media access for the opposition, the 
lack of a functional Constitutional Council, and a lack of 
accountability or investigative action to control political 
violence.
    The integrity of the registration process also appears to 
have been compromised. A local newspaper reported registration 
substantially exceeded the eligible voting population in 
several randomly selected districts. The discrepancies varied 
from a district with 108 percent registration to areas where 
more than 180 percent were registered.
    With political leadership unwilling to support fundamental 
democratic principles, U.S. assistance can have little impact 
on producing real economic or political reform necessary to 
achieving stability and prosperity. Therefore, the Committee 
has conditioned the provision of further assistance on assuring 
that the results of the election have produced leadership in 
Cambodia dedicated to an open society committed to freedom of 
speech, press, and basic civil liberties. The Committee has 
excluded humanitarian and demining programs and activities 
administered by non-Government organizations from these 
restrictions.
    The Committee directs the Department of State to report 
within 90 days on the Department's plans for strengthening 
legitimate democratic political institutions, including support 
for opposition leaders. The report should detail democracy 
building activities and grassroots organizational programs. The 
Department is encouraged to utilize the Democracy and Human 
Rights Fund to provide training and resources. Finally, the 
report should discuss plans for helping the more than 80,000 
displaced Cambodians along the Thai border.

                            CAMBODIA LOGGING

    The Committee has for years expressed concerns about the 
illegal export of timber by the Khmer Rouge across the border 
into Thailand, with the complicity of Thai border guards. The 
Committee has received information that this trade continues in 
large volume from the areas of Samlot, north of Pailin, to the 
Thai port of Kalapandha, and potentially from Anlong Veng and 
O'smach. At the current rate of deforestation it is widely 
expected that Cambodia's marketable timber, the country's only 
valuable natural resource, will be exhausted in 5 years. In 
fiscal year 1997, the Committee required the State Department 
to submit a report on the extent to which countries were 
facilitating the export of timber from Cambodia. Given that 
this trade continues to generate tens of millions of dollars in 
revenues for Khmer Rouge forces and other armed groups, the 
State Department is requested to submit a report by April 1, 
1999, describing the current status of timber exports from 
these areas and the involvement of Thai military personnel in 
this trade.

                               indonesia

    In the autumn of 1997, the Indonesian economy collapsed. By 
March, three International Monetary Fund Agreements had been 
signed, but none had been fully implemented. The deteriorating 
economic crisis contributed to the April departure of President 
Suharto after 33 years in office.
    Since April, when estimates of unemployment were reaching 
50 million people, the Committee has urged AID to conduct an 
indepth, nationwide survey of the consequences of the 
Indonesian economic crisis concentrating in hard-hit urban 
areas. While a survey was conducted, the information was 
anecdotal, it concentrated primarily on the impact of El Nino 
on the eastern islands, and the report failed to provide even 
rough estimates of food, medical, shelter, fuel, and other 
shortages related to declining economic conditions. As 
Indonesia approaches the 1-year anniversary of its collapse, 
the Committee still has not received a comprehensive evaluation 
of needs.
    After a Committee hearing, the AID Administrator traveled 
to Jakarta and announced a new assistance package. The 
Committee believes that most of the announced package was 
assistance previously announced or committed, and virtually 
none focused on a new strategy for support. AID planned for 
expansion of existing contracts and programs rather than new 
initiatives responding to new opportunities and problems.
    Given the strategic priority attached to Indonesia by the 
Departments of State and Defense, and shared by the Congress, 
the Committee believes a continuation of the status quo is 
unwise. Moreover, it is evident that only political change will 
improve Indonesia's uncertain economic climate, a problem which 
continues to complicate regional recovery.
    The Committee believes the administration must work swiftly 
not only to develop a comprehensive new approach to Indonesia 
but also new delivery mechanisms. The Committee understands 
recovery is up to the Indonesians and that there is no shortage 
of indigenous organizations willing to distribute humanitarian 
aid, and work with AID and other donors to rebuild the economy, 
strengthen political parties and the private sector, and expand 
education, social services, and employment opportunities.
    To launch a new, credible effort, the Committee has 
earmarked $100,000,000 for Indonesia, at least 80 percent of 
which must be delivered or administered through private or 
nongovernment organizations. Given the current Government's 
transitional role, the Committee believes emphasis should be 
placed on building long-term local political and economic 
institutional capabilities at the community level. This will 
require a shift in AID's longstanding preference to work 
through ministries and instead, work with local organizations 
and community leaders.
    The Committee is also concerned by reports of mistreatment 
of minorities, especially ethnic Chinese, and urges AID to 
support organizations which offer legal protection and related 
assistance to these groups.
    The Committee requests a report within 30 days of enactment 
on AID's strategy for Indonesia, including a detailed 
assessment of the new, indigenous organizations the Agency has 
identified as potential partners in supporting the transition.

                                VIETNAM

    The Committee supports professional exchanges between 
United States and Vietnamese nongovernmental organizations 
involved in the integration of people with disabilities. 
Emphasis should be given to programs that encourage independent 
living, disability rights, technology, and rehabilitation, 
including therapeutic recreation. Medical exchanges should 
encourage techniques that enable the disabled to integrate into 
community life. Educational exchanges should include an 
emphasis on inclusion, effective communication, and 
identification of educational techniques and related services.

                   Mitch Mc Connell CONSERVATION FUND

    In April 1998, the Government of Ecuador passed landmark 
legislation promoting conservation of biodiversity and 
sustainable development of the Province of Galapagos. The 
legislation laid a foundation for increasing research and 
scientific study of the islands, expanding local participation 
in conservation activities, preserving unique wildlife 
including giant tortoises, iguanas, and other rare species, 
controlling resource exploitation, and protecting the 40-mile 
boundaries of the Galapagos Marine Reserve. The Committee notes 
that the only other marine reserve in the world is the Great 
Barrier Reef in Australia.
    While the legislation is far reaching in intent, Ecuador 
does not have the resources to assure the laws can be fully and 
effectively implemented to protect this unique environment. 
Therefore, the Committee has earmarked $1,200,000 for 
conservation activities administered by the Charles Darwin 
Research Station and the National Park Service. The Committee 
intends for $500,000 to be provided to support scientific 
research, conservation, and related activities for the station 
and $200,000 to support the Park Service training, education, 
and conservation initiatives. In addition, the Committee has 
provided $500,000 to support an endowment for the station to 
leverage support from the private sector. The Committee is 
concerned by the rapid degradation which has occurred in 
Galapagos over the past decade and requests AID work closely 
with local organizations to develop a long-term strategy to 
preserve this unique archipelago.

                               GUATEMALA

    The Committee notes that in April 1998 the U.N. Human 
Rights Commission concluded its consideration of Guatemala. The 
Committee is aware of the progress that has been made in 
implementing the peace accords, but is concerned about the 
failure to adopt agreed upon constitutional reforms. The 
Committee also continues to receive reports of disappearances, 
assaults, and killings, including the murder of Bishop Juan 
Jose Gerardo shortly after he released a report documenting 
human rights violations during the war. Many of these are 
common crimes, but others bear the indicia of political crimes. 
Therefore, like last year, the Committee has prohibited 
military assistance to Guatemala except for IMET assistance 
that focuses on civilian control of the Armed Forces and human 
rights. Also, the Committee directs the Secretary of State to 
provide a report no later than 45 days after the date of 
enactment of this act evaluating official involvement in or 
knowledge of political crimes.
    The Committee is aware that approximately $2,500,000 in 
prior-year military assistance for Guatemala remains unspent. 
As in the past, the Committee strongly recommends that these 
funds be used to support the implementation of the peace 
accords, including the demobilization of former combatants.

                                 MEXICO

    The Committee is aware of an initiative to establish a 
formal dialog among a broad cross-section of Mexican society in 
an effort to build bridges between polarized groups, especially 
in Chiapas and other conflict zones, and to strengthen 
democracy. Similar initiatives in Guatemala and El Salvador, 
supported by the United States, brought together 
representatives from rebel groups, the armed forces, the 
business and academic communities, and others, and helped lay a 
foundation for reconciliation. The Committee urges the United 
States Embassy in Mexico to seriously consider supporting such 
an initiative in Mexico.

                                COLOMBIA

    Last year, the Committee recommended that funds be provided 
to support the Colombian attorney general's human rights unit, 
which investigates abuses by guerrilla groups, paramilitary 
organizations, and state security forces. Unfortunately, the 
Committee's recommendation was ignored. Widely respected in 
Colombia, the prosecutors' efforts are severely hampered by a 
lack of resources. This office can play an important role in 
carrying out investigations and prosecutions related to the 
implementation of the section in this act entitled ``Limitation 
on Assistance.'' The Committee directs that funds be made 
available to support the attorney general's human rights unit.

                              SOUTH AFRICA

    The Committee is aware of a proposal to establish a 
partnership with the Republic of South Africa's Housing Loan 
Fund to strengthen community-based lending and development 
organizations in some of South Africa's poorest provinces, for 
the purpose of providing affordable, sustainable credit to meet 
basic housing and safe drinking water needs. The Committee 
believes that AID should seriously consider participating in 
this effort.
    The Committee also requests AID to seriously consider 
funding a computer literacy and distance learning project 
involving two South African universities and a university in 
the Southeastern United States. The program would link three 
communities and their university partners in joint planning, 
exchanges, instruction, and data interchanges. The U.S. 
university should have demonstrated expertise in international 
business studies, manufacturing outreach, and distance 
education.

                                 RWANDA

    The Committee remains concerned that some 90,000 
individuals are detained in inhumane and overcrowded 
conditions, many facing charges of participating in genocide. 
Despite the support of the United States and other nations, the 
Rwandan justice system remains incapable of dealing effectively 
with this explosive situation. Judges and prosecutors lack 
training and defendants lack lawyers. The Committee urges the 
administration to lead the multidonor approach to deal 
aggressively with this pressing problem.

                                 SUDAN

    The Committee is gravely concerned about the complex 
emergency in Sudan. The Committee fully supports AID's efforts 
to provide emergency humanitarian relief, through Operation 
Lifeline Sudan [OLS] and independent non-OLS relief agencies, 
and to assist economic development and famine mitigation 
activities in areas outside the control of the Government of 
Sudan. Given the recent AID report that 2.6 million Sudanese 
face food shortages, the Committee strongly supports an 
increase in international disaster assistance funding over the 
fiscal year 1998 enacted level to meet this humanitarian 
challenge. Beyond the emergency relief efforts, the Committee 
encourages AID to use development and disaster assistance funds 
for capacity building and food production activities, in 
addition to famine mitigation, in areas of southern Sudan 
outside the control of the Government of Sudan, and to make 
funds from these accounts available to nongovernmental 
organizations for this purpose.
    The Committee also urges AID to support agricultural 
development and crop marketing projects in areas of southern 
Sudan that are secure, as well as transportation infrastructure 
improvement work throughout the region to facilitate food 
distribution.

                                 nepal

    The Committee recognizes the Government of Nepal and the 
Nepalese people for their efforts to host over 90,000 Bhutanese 
refugees and the enormous strain this puts on the country's 
resources. The Committee believes it would be in the interest 
of the Government of Nepal and the Government of Bhutan to 
resume discussion to resolve these issues to enable the 
refugees to return home. The Committee believes that recent 
actions by the Government of Bhutan to resettle northern 
Bhutanese in lands formerly belonging to refugees are 
regrettable and will not contribute to a peaceful settlement.

                           patent protections

    The Committee is deeply concerned by the absence of any 
pharmaceutical patent protection in Jordan and Egypt. Due to 
Jordan's lack of patent protection and its ongoing production 
and export of counterfeit pharmaceutical products throughout 
the Middle East, American pharmaceutical companies lose from 
$25,000,000 to $50,000,000 annually. The Committee is also 
concerned that current Egyptian law governing product patents 
excludes pharmaceuticals, medicines, and foodstuffs. The 
Committee directs the administration to work with the Jordanian 
and Egyptian Governments to encourage the adoption of effective 
intellectual property protections.

                    PRIVATE VOLUNTARY ORGANIZATIONS

    The Committee has again included language in the bill that 
is intended to ensure that the level of funding to private and 
voluntary organizations is at least maintained. This is 
consistent with current law and AID's commitment to enhance 
support for PVO's at a time when they are being increasingly 
called upon to implement U.S. foreign assistance programs.

         CHILD SURVIVAL, BASIC EDUCATION, and RELATED PROGRAMS

    The Committee believes that protecting the health and well-
being of children around the world must be a high priority goal 
of U.S. foreign assistance. The Committee is alarmed that 12 
million children die every year from preventable diseases 
including respiratory infections, measles, and diarrhea. The 
Committee recognizes the importance of child survival programs 
in reducing the incidence of child mortality, disease, and 
disability. Therefore, the Committee urges that U.S. bilateral 
efforts and contributions to international organizations 
reflect a strong resource commitment to these activities.
    The Committee believes that basic education programs are 
essential to both the well-being of the world's children and to 
achieving the long-term goal of broad-based economic 
development. These programs should be sustained at a minimum of 
$100,000,000. In particular, the Committee believes girls' 
education should be addressed because it has multiple benefits, 
including improved child survival and overall family health. 
The Committee is also very interested in the use of basic 
education programs in addressing the educational needs of 
children who are in or are leaving situations of hazardous and 
exploitative child labor. The Committee defines basic education 
to include early childhood, primary and lower secondary 
education, and childhood education teacher training programs. 
The Committee requests a report by April 1, 1999, on AID's plan 
to address child labor issues through basic education programs. 
In addition, the Committee requests that the report address how 
the agency intends to fully implement this program.

                 ORPHANS, DISPLACED, and BLIND CHILDREN

    The Committee recommends $10,000,000 for the displaced 
children and orphans fund. The Committee also continues to 
support a program of at least $1,000,000 to assist children who 
are blind. Many blind children in developing countries can be 
cured of their disability through simple operations and 
inexpensive care.
    The Committee has provided authority to use up to $25,000 
in program funds for displaced and orphaned children and 
victims of war, to enable the AID office responsible for the 
design and management of these programs to monitor and oversee 
their implementation. AID is also encouraged to use other OEU 
resources as necessary to further the effectiveness of the 
oversight of these programs.

                       maternal health initiative

    The Committee is aware that an estimated 600,000 women die 
from pregnancy-related causes annually, and that the 
overwhelming majority of these lives could be saved with better 
healthcare and nutrition. AID supports a variety of activities 
devoted to the needs of pregnant women and mothers, but more 
attention and focus is needed. Accordingly, the Committee has 
recommended an initiative of not less than $50,000,000 in 
fiscal year 1999. The Committee looks forward to consulting 
with AID, the National Council for International Health, WHO, 
and others in developing an effective strategy to address these 
problems.
    MaterCare International (USA) is a professional 
organization of physicians, obstetrical providers, health care 
personnel, and educators dedicated to reducing maternal deaths 
and injuries throughout the developing world. MaterCare 
International (USA) provides training, emergency care, and 
family planning opportunities for persons in Sub-Saharan 
Africa. MaterCare International (USA) receives a percentage of 
its funds from private funding. To expand its activities, the 
Committee encourages AID to provide $3,400,000 to Matercare 
International to reduce maternal mortality and improve health 
care.

                   PATRICK J. LEAHY WAR VICTIMS FUND

    The Committee notes the significant contribution of the 
Leahy War Victims Fund in providing medical and related 
assistance to disabled war victims in over a dozen countries. 
Recently, world attention has focused increasingly on the 
problem of landmines, and the need for additional funds for the 
care and rehabilitation, and social and economic reintegration, 
of landmine victims. Accordingly, the Committee recommends that 
$12,000,000 be made available for such activities from 
development assistance, the Office of Transition Initiatives, 
and the ``Nonproliferation, antiterrorism, demining, and 
related programs'' account, for activities to assist landmine 
victims and other war victims suffering from permanent 
disabilities.

                                HIV/AIDS

    The Committee is aware that the General Accounting Office 
is currently conducting a review of the administration of the 
AIDS programs at the Agency for International Development and 
UNAIDS. The Committee understands that GAO has raised concerns 
about the UNAIDS program by stating that there is: (1) a lack 
of guidance to agency field representatives regarding how they 
should interact; (2) miscommunication as to the scope of their 
mission; and (3) lack of commitment to working together by the 
different cosponsor representatives due to concerns about the 
role of UNAIDS as the organizational vehicle for the U.N. 
response.
    While concerned about these preliminary findings, the 
Committee notes that the organization is only 2 years old and 
is trying to formulate policy and practices. The Committee 
urges the UNAIDS Secretariat to provide better practical 
information and technical support to the country teams, to 
focus and coordinate efforts, and to direct resources to 
establish and meet specific targets for improving education, 
prevention, and treatment in each country level.
    Finally, the Committee notes that in the last 3 fiscal 
years, AID has not provided funding to UNAIDS in a timely 
manner. According to the United Nations, in 1997 the number of 
people infected with HIV increased by 6 million, a 15-percent 
increase in a single year. The total number of cumulative 
infections now exceeds 40 million people worldwide. The 
Committee, therefore, urges AID to expedite the provision of 
funding at no less than last year's level and collaborate with 
UNAIDS to increase the effectiveness of these programs.

                           POLIO ERADICATION

    The Committee welcomes AID's support in the multilateral 
effort to eradicate polio by the year 2000 and once again 
expects a commitment of not less than $25,000,000. Funds should 
be used to provide for the delivery of vaccines and the 
development of the infrastructure necessary to implement the 
program. The funding is intended to be in addition to the 
resources for the regular immunization programs of AID and to 
supplement other related activities. The Committee takes note 
of the important support of Rotary International in assuring 
the success of this effort.

                           IODINE DEFICIENCY

    The Committee is aware that iodine deficiency is the 
leading preventable cause of mental retardation in children. 
Kiwanis International has joined with UNICEF to substantially 
eliminate iodine deficiency by 2000. The Committee recommends 
that AID provide up to $2,000,000 through UNICEF to help meet 
this goal.

                               VITAMIN A

    Reports indicate that vitamin A supplements in a capsule 
costing 2 cents given two to three times a year reduces child 
mortality rates by 23 percent. There are initial indications 
that giving vitamin A to pregnant women could also reduce 
maternal deaths by a minimum of 40 percent. The Committee 
requests AID expand funding for a vitamin A initiative.

               UNIVERSITY DEVELOPMENT ASSISTANCE PROGRAMS

    The Committee recognizes that U.S. universities have a 
significant role to play in U.S. development policies 
throughout the globe. Therefore, the Committee encourages AID 
and the Department of State to expand the involvement of 
colleges and universities in development activities. The 
Committee takes note of the important contribution made by a 
number of universities in this regard.
  --The University of Hawaii has played a key role in Pacific 
        regional development. The Committee encourages AID to 
        support the university as it develops a new initiative 
        to train health, social, and human service 
        professionals in recipient countries.
  --The University of Northern Iowa has effectively managed the 
        Orava project in Slovakia which has incorporated 
        democratic concepts and practices into schools and 
        teacher education programs. The Committee encourages 
        AID to continue to support and replicate in other 
        countries this important work.
  --The Committee recognizes the important contribution George 
        Mason University is making to health care in Third 
        World countries and recommends up to $2,000,000 be made 
        available to continue and expand these worthy 
        activities.
  --The Committee recognizes the important contribution Utah 
        State University is making to irrigation programs in 
        Third World countries and recommends that up to 
        $2,100,000 be made available to establish a World 
        Irrigation Training Center at USU.
  --The Committee is aware of the expertise at Mississippi 
        State University in the development of water resources 
        management plans. The Greater Istanbul Municipality, 
        Turkey, is experiencing serious shortages of clean 
        water supplies for its growing population. Discussions 
        between Mississippi State University and Marmara 
        University in Istanbul have resulted in a proposed plan 
        of work to develop a water resources plan for the city. 
        The Committee has provided $500,000 to begin this 
        project.
  --The Arab-American University of Jenin [AAUJ] is being 
        established to provide educational opportunities for 
        young people in the West Bank and Gaza, a matter of 
        critical need. The Committee directs AID to provide 
        $1,000,000 in order to establish a College of 
        Agriculture at the AAUJ.
  --The Committee is aware that the University of Vermont [UVM] 
        has expertise in integrated pest management and insect 
        pathology, and is involved in joint research and 
        training programs with universities and agricultural 
        research institutes in Israel, Taiwan, Turkey, and 
        Ethiopia. The Committee directs that AID provide 
        $1,000,000 to build on these initiatives by 
        establishing an International Integrated Pest 
        Management Training and Research Center at the 
        University of Vermont. The center will serve as a focal 
        point for research and technology transfer on 
        biological control agents.

            Cooperative Association States for Scholarships

    The Committee supports the programs known as the 
cooperative association States for scholarships [CASS] and 
expect AID to continue funding for this program at the same 
level provided in fiscal year 1998.

                         RURAL ELECTRIFICATION

    The Committee continues to strongly support the inclusion 
of rural electrification in AID's planning as a critical 
component of a sound development strategy. The Committee 
encourages AID to provide support through the international 
program of U.S. electric cooperatives, recognizing their long 
and successful record overseas. The Committee also encourages 
AID to include the work of this program in its energy and 
electric utility assistance efforts in the New Independent 
States of the former Soviet Union.

                  AGRICULTURE DEVELOPMENT AND RESEARCH

    Last year, the Committee expressed concern about the 
erosion in U.S. support for international agriculture programs. 
In real terms, this funding has shrunk from $1,200,000,000 in 
fiscal year 1986 to $240,000,000 in fiscal year 1997. While 
overall levels for foreign operations also declined during that 
period, funding for agriculture has suffered 
disproportionately. In fiscal year 1998 AID increased the 
amount somewhat, and has done so again in the request for 
fiscal year 1999. Because of the enormous population pressures 
and demand for food in the developing countries, and the 
expertise of U.S. universities in agriculture research and 
development, the Committee has provided $305,000,000 for these 
activities in fiscal year 1999.

             INTERNATIONAL FUND FOR AGRICULTURE DEVELOPMENT

    The Committee continues to strongly support the 
International Fund for Agriculture Development [IFAD] and 
believes that the United States should continue to support and 
contribute to IFAD, including its efforts to implement the U.N. 
Convention to Combat Desertification. The Committee is aware 
that IFAD's next replenishment will be negotiated soon and 
believes that the United States should play an active and 
constructive role in that process. The administration should 
consult Congress prior to making any binding pledge.

                           DAIRY DEVELOPMENT

    The Committee continues to place a high priority on dairy 
development and encourages AID to maintain funding for this 
program.

                            FARMER-TO-FARMER

    The Committee strongly supports the Farmer-to-Farmer [FTF] 
Program in the NIS and elsewhere, and recommends that AID 
support these exchanges directly, in addition to the funding 
FTF receives from the Agriculture Department. The FTF Program 
gives American farmers and agribusiness entrepreneurs the 
opportunity to share their expertise with farmers in countries 
where agriculture has been stymied from decades of state 
control. In the process, FTF participants also make new friends 
for the United States and gain valuable experience for 
themselves. It is a cost-effective form of technical assistance 
because the American participants volunteer their time.

                    cooperative development projects

    The Committee is aware of the decline in funding for the 
United States-Israel Cooperative Development Program [CDP] and 
Cooperative Development Research Program [CDR]. The Committee 
urges the administration to increase funding for CDR/CDP. These 
innovative programs have proven successful in bringing Israel's 
unique combination of technical expertise and language skills 
which benefit developing nations and the emerging democracies 
of Eastern Europe and the former Soviet Union.

             TROPICAL PLANT AND ANIMAL RESEARCH INITIATIVE

    The Committee requests AID to consider joint application 
from Israel and the State of Hawaii to collaborate on a 
research and development project directed to enhance the 
competitiveness of both in the rapidly increasing tropical fish 
and plant global market. Such collaboration would have the dual 
purpose of curtailing exploitation of wild stocks and 
commercializing cultivated stocks to enhance the economic 
development activities of the United States and Israel.

              INTERNATIONAL FERTILIZER DEVELOPMENT CENTER

    The Committee strongly supports the fertilizer-related 
research and development being conducted by the International 
Fertilizer Development Center [IFDC] and further directs AID to 
promptly make at least $3,000,000 available for the core grant 
to the IFDC.

                    MICROENTERPRISE POVERTY PROGRAMS

    The Committee believes that microcredit projects are an 
efficient and effective way to develop small enterprises, the 
key to employment and economic development. The Committee 
directs USAID to provide at least $145,000,000 for 
microenterprise activities with at least one-half the resources 
targeted for a program offering loans of less than $300. These 
loans should be made to the poorest 50 percent of those living 
below the poverty line, particularly women, or to support the 
institutional development of organizations primarily engaged in 
making such loans. The Committee also encourages USAID to 
invest a significantly increased proportion of microenterprise 
resources through its central mechanism for support of United 
States and indigenous nongovernmental organizations.

                          WOMEN in DEVELOPMENT

    The Committee encourages AID to provide $15,000,000 for the 
Office of Women in Development [WID]. The Committee supports 
efforts to better integrate the concerns of women into AID's 
programs and policies and encourages AID to undertake the 
institutional changes needed to support women in development. 
This recommendation for increased funding for WID reflects the 
Committee's belief that investing in women is crucial to 
reducing hunger and poverty, improving family well-being, and 
achieving sustainable economic growth.

                             PARKS in PERIL

    The Committee continues to strongly support the Parks in 
Peril Program which matches AID funds with private 
contributions to support biodiversity conservation in imperiled 
ecosystems in Latin America and the Caribbean.

                         BIODIVERSITY PROGRAMS

    The Committee strongly supports continued funding for 
biodiversity conservation and tropical forest protection in 
developing countries, which are critical to U.S. economic 
prosperity, especially for the U.S. agricultural and 
pharmaceutical industries. AID conservation activities should 
continue to emphasize the use of nongovernmental organizations. 
AID through NGO partnerships should remain active in regions 
that are significant for global biodiversity, including in 
countries where AID does not have a presence or where AID 
missions have been closed, especially where lack of 
participation would undermine the success of a regional 
strategy.

                            RENEWABLE ENERGY

    The Committee urges AID to continue the unique programs at 
its Office of Energy, Environment, and Technology, supporting 
its U.S. renewable energy private sector initiatives such as 
project preparation, training, multimedia, and related 
activities in cooperation with the Committee on Renewable 
Energy, Commerce, and Trade.

              international executive service corps [iesc]

    The Committee recognizes that for almost 35 years the 
International Executive Service Corps [IESC] has been promoting 
the long-term interests of the United States by providing 
strong volunteer services, creating new businesses, and 
increasing living standards. IESC is an important vehicle to 
promote aggressive business development and technology transfer 
that contributes to sound economic growth and sustainable 
development. The IESC activity also offers an opportunity for 
American firms to participate in this endeavor. The Committee, 
therefore, strongly urges that AID provide IESC with funds at a 
level comparable with fiscal year 1998 to ensure the continued 
availability of IESC services.

            collaborative research support projects [crsp's]

    As in past years, the Committee supports the collaborative 
research support projects [CRSP's]. Over 40 U.S. universities 
are involved in the CRSP's and the funding provided by AID is 
leveraged, with contributions from the universities and 
recipient countries. The Committee expects AID to make its best 
efforts to at least maintain funding for the CRSP's in fiscal 
year 1999. The CRSP's to receive funding include ABSP, BASIS, 
food security initiative, Post-Harvest Collaborative 
Agribusiness Support Program, sorghum/millet, bean, cowpea, 
peanut, pond dynamics/aquaculture, livestock/small ruminant, 
soil management, sustainable and natural resource management, 
and integrated pest management.

                         soils management-crsp

    Activities such as the Soils Management Collaborative 
Research Support Program [SM-CRSP] plays a major, long-term 
role in assuring the productive capacity of the tropical world 
to meet global food demands. In addition, the broad systems 
approach through the development and use of decision support 
systems offers considerable promise for addressing micro issues 
such as farm level profitability as well as macro goals such as 
terrestrial sequestration of CO2. The Committee 
recommends that the agency fund the SM-CRSP at a level that 
allows achievement of the goals for all approved projects 
within that program.

      Opportunities Industrialization Centers, International [OIC]

    The Committee recognizes that for more than 25 years, OIC 
International has helped developing countries establish 
sustainable, community-based, self-help programs. The Committee 
further recognizes that, at the request of AID, OIC is making a 
concerted effort to increase the amount of private funding it 
receives. The Committee directs AID to provide $400,000 for OIC 
to cover the costs of operation as it completes its transition 
to greater private-sector funding.

              OFFICE of PRIVATE and VOLUNTARY COOPERATION

    The Committee recommends increased funding for AID's Office 
of Private and Voluntary Cooperation in fiscal year 1999. This 
office plays a central role in the partnership between AID and 
private voluntary organizations in providing humanitarian and 
development aid. The Committee also recognizes the important 
contribution of private voluntary organizations and 
cooperatives in establishing and administering food aid 
programs overseas.

                         palestine broadcasting

    The Committee is concerned about the hostile rhetoric 
against the United States and Israel which has been 
disseminated by media sources controlled by the Palestine 
Broadcasting Corp. While the Committee supports the concept of 
encouraging a free press in the areas under the jurisdiction of 
the Palestinian Authority, it believes that the United States 
should not provide funding to an organization whose broadcasts 
call for the destruction of the United States and voice support 
for acts of terrorism. The Committee believes that the 
Palestinian Broadcasting Corp., is an organization which 
restricts press freedoms. The Committee believes that 
independent journalists in the region who observe a code of 
professional journalism similar to the standards adopted by the 
Voice of America deserve the assistance of the United States.

                        Limitation on Assistance

    The Committee has included a provision, similar to last 
year, which seeks to ensure that U.S. assistance does not go to 
units of foreign security forces whose members have been 
credibly implicated in human rights abuses, unless the foreign 
government is taking effective measures to bring the 
individuals responsible to justice. By effective measures, the 
Committee intends that the individuals face appropriate and 
timely disciplinary action or impartial criminal prosecution in 
accordance with local law. The Committee notes that in order to 
implement this provision, it is necessary for U.S. Embassies to 
know which units are to receive U.S. assistance and to have in 
place the necessary agreements and mechanisms to effectively 
monitor their use of the assistance. The Committee expects U.S. 
Embassies to maintain this information so it is available to 
the Congress.

                       Inter-American Foundation

    The Committee commends the Foundation for its thorough 
justification of project accomplishments and requirements and 
in recognition of this effort has provided a designated level 
of funding for the Inter-American Foundation in the 
``Development assistance'' account. The Committee is encouraged 
by the fact that the Foundation has responded to Committee 
guidance and pursued private contributions to assist in the 
financial implementation of its programs. The Committee looks 
forward to a continuation of this effort in fiscal year 1999 
and expects other foundations to follow the Inter-American 
Foundation lead.

                   International Disaster Assistance

Appropriations, 1998....................................    $190,000,000
Budget estimate, 1999...................................     205,000,000
Committee recommendation................................     200,000,000

    The Committee has increased the disaster assistance account 
to $200,000,000. With no shortage of natural or man made 
disasters the increase is timely and necessary.

             Micro and Small Enterprise Development [MSED]

                         Subsidy Appropriation

Appropriations, 1998....................................      $1,500,000
Budget estimate, 1999...................................       1,500,000
Committee recommendation................................       1,500,000

                        Administrative Expenses

Appropriations, 1998....................................        $500,000
Budget estimate, 1999...................................         500,000
Committee recommendation................................         500,000

    The Committee has provided $1,500,000 for the subsidy for 
micro and small enterprise development programs and $500,000 
for administrative expenses with the view that MSED has 
effectively mobilized credit to strengthen the private sector.

                 Urban and Environmental Credit Program

                         Subsidy Appropriation

Appropriations, 1998....................................      $3,000,000
Budget estimate, 1999...................................       6,000,000
Committee recommendation................................       3,000,000

                           Operating Expenses

Appropriations, 1998....................................      $6,000,000
Budget estimate, 1999...................................       6,053,000
Committee recommendation................................       4,000,000

    The Committee has provided resources to sustain the urban 
and environmental credit program formerly known as the housing 
guarantee [HG] program. The program supports U.S. private 
sector initiatives which provide long-term financing for 
housing and urban infrastructure requirements such as sewage 
and water facilities.

                           Debt Restructuring

Appropriations, 1998....................................     $27,000,000
Budget estimate, 1999...................................      72,000,000
Committee recommendation................................      25,000,000

    The Committee has provided $25,000,000 to meet the 
administration's debt restructuring requirements as a component 
of economic assistance.

                       Department of the Treasury

               international affairs technical assistance

Appropriations, 1998....................................................
Budget estimate, 1999...................................      $5,000,000
Committee recommendation................................       3,000,000

    In prior years, the Department of the Treasury has carried 
out technical assistance programs supported by transfers from 
the Agency for International Development. The Committee is 
aware that this worthwhile undertaking has been complicated by 
AID's lack of responsiveness. Therefore, the Committee has 
provided $3,000,000 to support this request and directs AID to 
promptly transfer not less than $2,000,000 to Treasury to 
augment these resources.

national advisory council [nac] on international monetary and financial 
                                policies

    The Committee believes the new format for the NAC report 
embodied in this legislation can produce a report that is more 
focused, more timely, and more useful to Congress than previous 
NAC reports. The success of the new format relies very much on 
the administration's good faith and its capacity for providing 
an inclusive and thorough report. The Committee has included a 
requirement that the annual report include a discussion of the 
administration's efforts in pursuit of major policy initiatives 
embodied in existing law. In particular, the Committee expects 
the new annual report will discuss the administration's efforts 
in the IFI's to reform international trade and investment 
policy in borrower countries, to enhance human rights, and to 
encourage key policy changes in the IFI's themselves. The 
report should include references to other public sources where 
data included in previous NAC reports might be obtained. The 
Committee believes that much of the information about IFI loans 
and IFI operations that was previously mandated for inclusion 
in the NAC report should be available from the IFI's 
themselves. The Committee expects that the administration will 
encourage the IFI's to be more transparent and more forthcoming 
with regards the information on their operations and policies 
they make available to the public.

     Payment to the Foreign Service Retirement and Disability Fund

Appropriations, 1998....................................     $44,208,000
Budget estimate, 1999...................................      44,552,000
Committee recommendation................................      44,552,000

    The Foreign Service retirement and disability fund is a 
mandatory expense of the Agency for International Development.

                         AID Operating Expenses

Appropriations, 1998....................................    $473,000,000
Budget estimate, 1999...................................     483,858,000
Committee recommendation................................     475,000,000

    The Committee recommends an appropriation of $475,000,000 
for the operating expenses of the Agency for International 
Development to remain available until September 30, 2000.

       Operating Expenses of the Office of the Inspector General

Appropriations, 1998....................................     $29,047,000
Budget estimate, 1999...................................      33,000,000
Committee recommendation................................      30,000,000

    The Committee has provided $30,000,000 for the Inspector 
General's Office.

                  Other Bilateral Economic Assistance

                         Economic Support Fund

Appropriations, 1998....................................  $2,400,000,000
Budget estimate, 1999...................................   2,513,600,000
Committee recommendation................................   2,305,600,000

    The Committee has provided $2,305,600,000 for economic 
support fund activities. The Committee has not provided funding 
for the Bank for the Economic Cooperation and Development in 
the Middle East and North Africa as requested by the 
administration.
    The Congress is opposed to assuming new responsibilities as 
the largest donor for a new multilateral facility when arrears 
at existing institutions continue to exceed $500,000,000. At a 
time when the Committee finds it difficult to fulfill existing 
obligations, new commitments make little fiscal sense.

                          MIDDLE EAST EARMARKS

    Following consultations with the Governments of Israel and 
Egypt, the Committee has reduced the level of economic support 
fund resources provided for each country. The Committee 
understands similar consultations were held with the 
administration; however, agreement was not reached prior to the 
submission of the fiscal year 1999 budget request.
    The Committee welcomed Prime Minister Netanyahu's 1996 
pledge to Congress to consult on a plan to phase out economic 
support for Israel while at the same time addressing ongoing 
and acute security requirements. In fiscal year 1999, the 
Committee is making the first reduction in a planned 10-year 
schedule and is providing $1,080,000,000 in economic support 
funds for Israel. The Committee has provided $775,000,000 for 
Egypt. Taking into account resources made available in title 
III, these levels reflect a net reduction of $60,000,000 in 
Israel's economic assistance program and $40,000,000 in 
Egypt's.
    In changing emphasis in the Egyptian program, the Committee 
acknowledges the Government's efforts to privatize and expand 
trade and investment as a means to accelerate economic recovery 
and growth. To strengthen this private sector development, the 
Committee expects a shift away from large project support. To 
further this objective, the Committee has provided $40,000,000 
within funds made available to Egypt to establish an Enterprise 
Fund. The Committee directs the administration to consult with 
the Committee.

                MIDDLE EAST REGIONAL COOPERATIVE PROGRAM

    The Congress fully supports the Middle East Regional 
Cooperation Program [MERC], and its role in fostering 
scientific collaboration between Israel and its Arab neighbors. 
The MERC Program should remain fully funded at no less than 
$7,000,000. The value of multiple lines of communication 
between nongovernmental institutions in the region is critical 
to the peace process, and should be continued. To that end, it 
is vital that the MERC Program's guidelines and criteria 
continue to limit the size of funded projects to no more than 
$3,000,000 per year for 3 years in order to catalyze as many 
collaborations as feasible, thereby assuring the maximum 
possible impact.

                PALESTINIAN-ISRAELI COOPERATION PROGRAM

    The Committee recommends $600,000 for the Palestinian-
Israeli Cooperation Program. The Committee believes that at a 
time when many observers fear that the Middle East peace 
process is in danger of collapse, joint projects between 
Palestinians and Israelis are a constructive use of a small 
amount of money. Examples of past projects include meetings of 
experts on medical and scientific research, joint publications, 
theater productions, and activities for children. Past funding 
for these projects has been far below what was needed to meet 
the demand.

                    LATIN AMERICA and the CARIBBEAN

    The Committee notes that since 1990, United States economic 
assistance to Latin America and the Caribbean has fallen by 
two-thirds, although assistance for Haiti has been sustained at 
a disproportionately high level. During the same period, 
poverty has steadily increased as has the flood of illegal 
immigrants into the United States. The Committee believes that 
this hemisphere, other than Haiti, should be given higher 
priority in the allocation of economic support fund assistance.

                          War Crimes Tribunal

    The Committee recognizes that the mission of the 
International War Crimes Tribunal for the Former Yugoslavia has 
been constrained by funding shortages. The tribunal has had 
limited success, in part because of lack of sufficient staffing 
and professional resources, as well as a lack of sufficient 
office equipment. The Committee notes that the tribunal 
recently dismissed the cases of 14 Bosnian Serbs due to a lack 
of resources to support prosecution, rather than a lack of 
evidence. The State Department notes that there is a 
significant need to secure the services of translators and to 
procure new office equipment, not otherwise provided for in 
existing funds. The Committee directs that $3,000,000 from the 
Democracy and Human Rights Fund be provided to support the 
tribunal.

          Assistance for Eastern Europe and the Baltic States

Appropriations, 1998....................................    $485,000,000
Budget estimate, 1999...................................     464,500,000
Committee recommendation................................     432,500,000

    The Committee recommends $432,500,000 for Eastern Europe 
and the Baltic nations. The Committee noted last year that 
fiscal year 1998 marked the final year of the administration's 
pledge for economic reconstruction in Bosnia-Herzegovina. This 
commitment was intended to restore a foundation for commercial 
and industrial growth and rebuild the mechanics of political 
institutions, in part to assure a timely and certain departure 
for American troops. The Committee notes the President has once 
again delayed the departure date for U.S. forces calling into 
question the effectiveness of a substantial expenditure of 
American foreign assistance. The Committee is concerned that 
the goals so clearly defined by the Dayton accords including 
refugee resettlement and repatriation, and treatment of war 
criminals have been difficult to achieve.

                           LEGAL INITIATIVES

    The Committee supports AID's efforts to provide funds for 
legal reform in Central and Eastern Europe. To address the 
growth of crime in the region, the State and Justice 
Departments have sponsored prosecutor training programs that 
have made progress toward building the foundations of modern 
judicial systems. The Committee is aware that the current 2-
year program provides onsite training four times a year. At 
this rate only 10 people in each country will have been 
trained. The Committee notes that distance learning technology 
could dramatically increase the number of prosecutors trained 
in this program, and urges AID to provide an additional 
$250,000 to incorporate multimedia distance learning into the 
Central and Eastern Europe prosecutor training program.
    The Committee notes that the American Bar Association [ABA] 
has done an excellent job in promoting democracy around the 
globe through their continued support for the rule of law and 
legal infrastructure projects. These initiatives have played a 
significant role in fostering legal reforms and democracy by 
encouraging respect for the rule of law, building free markets 
and free trade, combating corruption and promoting sustainable 
development.
    To build on this success, the Committee urges AID to 
sustain funding for ABA projects at a level consistent with 
fiscal year 1998 levels. The Committee takes special note of 
the Central and Eastern European Law Initiative [CEELI]. 
Through a variety of program components, CEELI is making legal 
expertise available to assist countries in the process of 
restructuring their legal systems. CEELI has focused its work 
in a number of critical priority areas, including 
constitutional reform, judicial restructuring, commercial and 
criminal law procedure, and legal education reform. CEELI has 
also helped develop and institutionalize self-sustaining 
indigenous nongovernmental organizations in more than 22 
countries. The Committee notes that more than 5,000 U.S. 
attorneys, judges, and law professors from the United States 
have participated in CEELI, all as volunteers.

  assistance for the new independent States of the Former Soviet Union

Appropriations, 1998....................................    $770,000,000
Budget estimate, 1999...................................     925,000,000
Committee recommendation................................     740,000,000

    The Committee recommends $740,000,000 for the New 
Independent States [NIS] of the former Soviet Union. As in 
prior years, the bill makes applicable the provisions of 
section 498B(j) of the Foreign Assistance Act to funds 
appropriated under this heading, as well as making applicable 
the other provisions of chapter 11 of part I of that act to 
funds appropriated by the bill for the NIS.
    The Committee believes that strengthening free market 
democracies throughout the NIS enhances U.S. interests through 
increased stability, security, and prosperity. Accordingly, the 
Committee has continued with past practices of earmarking 
support for Ukraine, Armenia, and Georgia. The Committee notes 
that, notwithstanding the level of funds provided for these 
three countries, more unearmarked funds are available for the 
NIS in fiscal year 1999 than in 1998, which is consistent with 
the administration's request for flexibility.

                           INDEPENDENT MEDIA

    The Committee continues to support assistance for 
independent broadcast and print media throughout the former 
Soviet Union. The sustainability and political independence of 
media are necessary components of genuine economic and 
political reform. The Committee feels it is a priority to work 
toward legal environments in which media can better encourage 
civil society and respect for the rule of law. Effective 
support for free media also includes specialized training in 
commercial management with emphasis on financial skills, basic 
and advanced journalism training, and the development of the 
institutions and associations that constitute an independent 
media infrastructure. New initiatives include expanded support 
for high quality public interest programming, legal literacy 
for media professionals, and effective use of regional and 
national media for disseminating health care information.
    The Committee is encouraged by results achieved thus far, 
and recommends that AID provide funding necessary to build on 
this success and expand programs to include Russian far east.

                         Carelift International

    The Committee supports the work of Carelift International 
and recognizes the great success it has had in providing used 
medical equipment to Russia and the New Independent States. The 
Committee also notes that Carelift International has a proven 
record of success in training medical providers overseas on the 
proper use and maintenance of American medical and dental 
equipment. The Committee directs USAID to make at least 
$3,000,000 available to allow Carelift International to 
continue and expand its operations.

            Research, Training, Exchanges, and Partnerships

    The Committee recommends the current level of funding for 
the Russian, Eurasian, and East European Research and Training 
Program (title VIII) from the two appropriation accounts for 
the NIS and central Europe. The Committee also supports funding 
for other graduate fellowship and training programs in both 
regions such as the Central and Eastern European Graduate 
Fellowship Program. Student exchange programs, in general, are 
to be distributed in a balanced manner among high school, 
college, and graduate/postgraduate categories.

                          PHYSICIANS EXCHANGES

    The Committee is aware that the American College of 
Physicians has initiated a program aimed at improving 
professional medical education in the former Soviet republics. 
This cooperative endeavor, known as the Eurasian Medical 
Education Program, sends volunteer American physicians who have 
expertise in disease areas that are the major contributors to 
premature death in Russia, such as cardiovascular disease, 
diabetes and tuberculosis. The Committee commends AID for 
providing the funds for three pilot centers in Russia, and 
requests AID to consult with the Committee concerning fiscal 
year 1999 funding to sustain and expand the program.

                         Violence Against Women

    The Committee has closely followed efforts by AID, the 
Department of State, and the Department of Justice to implement 
a Committee initiative against domestic violence in Russia. The 
Committee appreciates the efforts that have been made, but 
believes that supporting the women's crisis centers in Russia 
that are directly engaged in responding to this problem should 
be a priority use of the funds. In addition, more attention 
should be given to strengthening police and prosecutorial 
efforts to deter abuses in a broader number of communities 
where women's crisis centers exist. American police trainers 
should be carefully screened to ensure that they have the 
necessary expertise. The Committee recommends that funding for 
this initiative at least be maintained at the current level. 
The Committee again requests the Department of State to submit 
a report by April 1, 1999, describing the actions taken, 
results to date, and future plans in this effort.

                           Russian Orphanages

    The Committee is aware of the growing lack of orphanages in 
many areas of Russia. The Committee is also made aware of 
concerns that orphanages lack the necessary medical facilities 
to care for orphans. The Committee supports $3,000,000 for 
improving orphanage facilities.

                        Sustainable Agriculture

    The Committee again urges AID to provide funds to support 
sustainable agriculture programs through replicating the United 
States extension model at Russian agricultural colleges, as 
recommended in the fiscal year 1998 conference report. The 
Committee believes that this is a sound investment which should 
be continued.

                           Pushchino project

    The Russian-United States technical, education, and 
economic development consortium has made significant progress 
implementing a project entitled, ``Uniting Science and 
Education and the Transfer of Technology to Support Sustainable 
Economic Development and Environmental Protection of South 
Central European Russia.'' The so-called Pushchino project has 
carried out activities which promote economic development, 
restore the environment and train entrepreneurs, 
agriculturalists, and environmental professionals. The results 
have been mutually beneficial particularly in the testing and 
development of technologies with practical applications 
including the control of wheat and barley root disease and 
remediation of environmental pollutants. The Committee urges 
continued funding for this collaboration between research 
institutions, universities, and private firms.

                            Russian Far East

    The Russian far east is recognized as vital to the overall 
development of Russia's market economy. Its rich natural 
resource base and proximity to the rapidly expanding Pacific 
rim economies have won it the attention of increasing numbers 
of industries and companies. However, attempts to coordinate 
trade promotional efforts have been sporadic and often ill 
conceived.
    Meanwhile U.S. competitors in the region have been 
effective in integrating public and private sector activities. 
Partly in response to this situation, the United States and 
Russian governments agreed during the December 1994 meeting of 
the Gore-Chernomyrdin Commission in Moscow, to establish the 
United States west coast-Russian far east ad hoc working group. 
The working group is charged with developing a framework to 
increase trade and investment opportunities between the Russian 
far east and the United States west coast.
    The role this working group can play to increase 
opportunities between the two regions is significant. The 
Committee recommends that authority and funding for this group 
and the subsequent initiatives approved by this bilateral body 
be given priority.
    The Russian Far East presents a unique set of investment 
conditions which are oftentimes overlooked in broad United 
States foreign assistance initiatives in Russia. The 
Partnership for Freedom Program will designate certain areas in 
Russia to receive priority consideration for United States 
investment. The Committee directs the State Department to 
designate the Russian Far East as a region to receive this 
priority treatment.

                  United States Russia Investment Fund

    The Committee continues to be concerned about the record of 
the United States Russia Investment Fund [TUSRIF] with regard 
to investment in small- and medium-sized businesses in Russia, 
particularly in the Russian Far East. The Committee directs 
TUSRIF to increase investment in small- and medium-sized 
business projects in the Russian Far East.

                            RUSSIA and IRAN

    The Committee has once again conditioned assistance to 
Russia on Moscow's termination of financial and technical 
support for the Iran nuclear program. The Committee has 
included this provision in legislation for the last 3 years. 
However, the administration has opposed any restrictions 
arguing that the conditions would undermine reformers who offer 
the best hope for curtailing this dangerous program.
    There is little evidence reformers have had a restraining 
effect on this program. In fact, the Committee is deeply 
concerned by reports of substantial expansion in the number of 
Russian scientists involved in training, technology transfer, 
and supervision of nuclear testing.
    Iran's campaign to acquire a nuclear capability is a 
serious threat to U.S. security interests and its suspension 
should be of the highest priority in the United States dialog 
with Russia.

                                ukraine

    The Committee has provided $210,000,000 to continue 
economic, legal, and political reforms in Ukraine. The 
Committee believes absent a significant and sustained effort in 
each of these areas, Ukraine will face a serious economic 
crisis, made all the more likely due to the currency and market 
weakness across Asia.
    While the Committee recognizes very recent efforts to 
advance economic reforms, given the inconsistent pattern of 
performance, the Committee has reduced overall funding and has 
structured a continuation of support on acceleration of 
improvements. The Committee expects the Government to continue 
with an aggressive program to rationalize and improve tax 
collection, reduce government spending and exercise fiscal 
responsibility. To assure these initiatives remain on track, 
the Committee has provided the administration with authority to 
withhold 50 percent of the funds for 120 days when the 
Secretary is required to report on the status of reforms.

Nuclear safety

    The Committee has, once again, excluded nuclear safety 
initiatives from any restrictions. In addition to continuing 
funding for existing programs to prevent accidents and improve 
control and management, the Committee has provided $1,000,000 
to establish a personnel security system at each existing 
nuclear facility. In reviewing safety problems, the Committee 
learned that neither the Department of Energy nor the 
Department of Defense has provided any support to control 
access to civilian nuclear facilities in the Ukraine. Onsite 
visits to Chornobyl determined that there were virtually no 
procedures, plans or practices to control access to the core 
facility or respond to an unauthorized breach of perimeter 
security. The Committee was advised that the plant manager at 
Chornobyl and those at other facilities have requested U.S. 
assistance in developing and implementing security plans, 
however, U.S. officials refused to provide any support until 
directed by the Committee to do so. The $1,000,000 earmark is 
intended to augment the initial $100,000 provided. The 
Committee directs that 60 days after the date of enactment of 
this act, that the Departments of Energy and State provide a 
report on the status of implementation of this initiative and 
additional resources which may be necessary to provide a 
minimum security regime at all reactors. The report shall also 
include an assessment of personnel and related safety 
procedures at civilian nuclear facilities in each New 
Independent State.

Free market democracy fund

    The Committee has provided $700,000 to establish and 
support a small grants fund to be administered by the United 
States Ambassador to Ukraine in consultation with the 
Department of State's Coordinator for the NIS. The Committee 
has been made aware of a number of commercial, educational, 
health, humanitarian, political, and related activities in 
which prompt availability of small grants would have an 
immediate and clear impact on economic development and support 
for free market, democratic reforms. The Committee has 
established this pilot program with the understanding that the 
Department of State will consult on guidelines for its 
implementation and report on a quarterly basis on the use of 
the resources.

Agriculture

    The Committee is disappointed by the lack of emphasis the 
AID mission has placed on supporting innovative approaches to 
agricultural development. AID continues to concentrate on 
reforming ministries rather than taking the initiative at the 
county and community level. As the Committee has repeatedly 
stated, growth in the agriculture sector is essential to 
Ukraine's economic recovery. The Committee directs AID to 
report within 60 days on prospects for developing a small farm 
business initiative with grants of less than $5,000,000 to be 
provided outside Kiev to generate local reforms and 
agricultural growth and income.

                                GEORGIA

    The Committee continues to be impressed by the Georgian 
Government's determined commitment to address critical issues 
of legal, economic, and political reforms. The Committee 
commends the Government for moving quickly to develop and 
implement a clear, effective plan of action for the use of 
resources provided by the Congress in fiscal year 1998, 
demonstrating the political will to produce crucial changes. 
The Committee intends that the $95,000,000 made available in 
fiscal year 1999 be available to support small business 
development, management training, credit and investment 
programs, energy and infrastructure initiatives, and judicial 
reforms.
    The Committee continues to be concerned by instability in 
Abkhazia and Russian influence over internal Georgian events. 
The Committee has provided funds to continue support for 
training and improvements of border security personnel to 
assure a prompt and complete withdrawal of Russian troops from 
Georgian territory.

                                ARMENIA

    The Committee has provided $90,000,000 for Armenia. Given 
Armenia's high level of dependence on nuclear energy, the 
Committee has designated $4,000,000 for nuclear reactor safety 
improvements. Additionally, with the view that higher education 
is an essential building block in the transition to active free 
market economies, the Committee has provided $10,000,000 as an 
endowment for the American University of Armenia.

                               AZERBAIJAN

    The Committee has included a provision which restates 
section 907 of the FREEDOM Support Act. However, for funds 
appropriated in this bill, the Committee has continued the 
exemption to permit the administration to provide support for 
demilitarization and related programs. In addition, the 
administration may provide support to strengthen political 
institutions. Open, elected governments responsible to citizens 
interests are essential to long-term stability.
    Like last year the Committee has also included a provision 
exempting humanitarian activities and financing and assistance 
from OPIC, the Trade and Development Agency, the Export-Import 
Bank, and activities carried out by the Foreign Commercial 
Service from section 907 of the FREEDOM Support Act.

                       East-West Pipeline Report

    Given the completion of the World Bank's feasibility study 
regarding the Baku-Ceyhan oil pipeline, the Committee urges 
financial institutions such as TDA, Exim, and OPIC to 
aggressively pursue funding for the Baku-Ceyhan pipeline.
    The Committee believes that a pipeline crossing Turkey is 
in the best interests of the United States. An east-west 
pipeline would bring Caspian energy resources to international 
markets, support stability and democracy while providing a 
secure energy transport system.
    The Committee requests the Secretary of Commerce in 
consultation with the Secretary of Energy and the Secretary of 
State to provide a report by March 1, 1999, describing the 
details and status of the U.S. Government's initiatives to 
facilitate the commercial viability of the Baku-Ceyhan 
pipeline.

                                MONGOLIA

    The Committee has provided $10,000,000 from funds made 
available under the headings ``New Independent States'' and 
``Development assistance.'' Resources have been provided to 
continue to support efforts by the Mongolian Government to 
accelerate legal, political, and economic reforms while 
addressing acute health, educational, and humanitarian needs. 
The Committee encourages AID and the coordinator to assume a 
minimum of a 5-year commitment in support for Mongolia's 
transition and to develop a strategy accordingly.

                             NUCLEAR CITIES

    The Committee is aware that in March 1998 the United 
States-Russian Commission on Economic and Technical Cooperation 
created the nuclear cities initiative, to focus attention on 
the economic problems facing Russian nuclear weapons complexes. 
The initiative has the potential to significantly reduce the 
danger of nuclear proliferation from the brain drain of 
knowledgeable scientists, the potential theft of fissile 
material created by economic desperation, and sales of nuclear 
technology to countries of proliferation concern. The Committee 
is concerned that since the nuclear cities initiative was not 
created until after the President submitted his fiscal year 
1999 budget request, this vital undertaking may not be 
adequately funded. The Committee, therefore, strongly 
recommends that sufficient funds be made available from the NIS 
account to support the implementation of the nuclear cities 
initiative, including the promotion of economic development and 
private sector investment in Russia's closed nuclear weapons 
complexes.

                          Independent Agencies

                     african development foundation

    Funding for this account has been included under the 
``Development assistance'' account.

                       inter-american foundation

    Funding for this account has been included under the 
``Development assistance'' account.

                              peace corps

Appropriations, 1998....................................    $222,000,000
Budget estimate, 1999...................................     270,335,000
Committee recommendation................................     221,000,000

    The Committee recommends an appropriation of $221,000,000 
for the Peace Corps for fiscal year 1999. The Committee is 
concerned that the Corps is making new commitments to send 
volunteers abroad without adequate consideration of budget 
pressures which will not allow any increase in program levels 
for the foreseeable future. Moreover, according to volunteers, 
these commitments are being made without careful consideration 
as to the availability of worthwhile volunteer activities, 
safety issues or other problems associated with significant and 
rapid program expansion. For example, the Committee was advised 
that a Russian Government decision to require monthly renewal 
of visas meant volunteers would have to travel great distances 
far too frequently, seriously compromising the quality of their 
contribution as well as imposing enormous personal 
inconvenience. This Russian mandate resulted in the need for 
the Corps to redirect the assignments for an entire class of 
volunteers under short time constraints. The Committee urges 
the Peace Corps to exercise restraint in making political 
pledges which either resources or conditions do not allow the 
agency to sustain.

                          Department of State

                    international narcotics control

Appropriations, 1998....................................    $230,000,000
Budget estimate, 1999...................................     275,000,000
Committee recommendation................................     222,000,000

    The Committee recommends $222,000,000 for the International 
Narcotics and Law Enforcement Account [INL].

                                 mexico

    The Committee is aware that significant amounts of United 
States military equipment and training are being provided to 
the Mexican security forces to support counternarcotics 
activities. Additional equipment is leased or licensed for 
export including lethal equipment and helicopters. The 
Committee is concerned that Mexican security forces trained or 
equipped by the United States have been involved in 
counterinsurgency operations that have resulted in human rights 
violations. The Committee expects the administration to make 
every effort to prevent the misuse of U.S. training and 
equipment. The Committee requests the State Department, after 
consultation with the Defense Department, to submit a report to 
the Committee by April 1, 1999, describing the measures taken.

                                Baltics

    The Committee strongly supports programs in international 
criminal justice for Estonia, Latvia, and Lithuania. The Baltic 
nations have an excellent record in cooperating with U.S. law 
enforcement agencies. Specifically, Lithuania has worked with 
the United States to stem the counterfeiting of United States 
currency.
    The Committee recommends continued support for law 
enforcement education programs and training designed to counter 
the influence of organized crime and corruption, enhance border 
control and intellectual property rights and stem financial 
crimes and the smuggling of aliens, narcotics, and illegal 
goods. The Committee believes that these programs bring a 
direct benefit to the United States by reducing worldwide 
organized crime and trafficking.

                             HERBICIDE USE

    The Committee is aware of concerns about the health and 
environmental impacts of aerial fumigation of chemical 
herbicides in support of counternarcotics programs in tropical 
ecosystems. The Committee believes that prior to the use of 
tebuthiuron or any other herbicide currently under 
consideration, the State Department should ensure that a 
thorough, independent investigation is conducted in a country 
where its use is contemplated and that the results are made 
publicly available. The Committee notes that the manufacturer 
of tebuthiuron has advised against its use for coca 
eradication.

                BIOLOGICAL CONTROL OF ILLICIT DRUG CROPS

    The development of plant pathogens which are capable of 
destroying illicit drug crops including opium poppy, cocaine, 
and marijuana offer a potential weapon in the fight against 
illicit drugs. Montana State University has field tested some 
of these pathogens which have proved to be effective. This kind 
of research warrants continued financial support, and the 
Committee recommends funding for this activity.

                    migration and refugee assistance

Appropriations, 1998....................................    $650,000,000
Budget estimate, 1999...................................     650,000,000
Committee recommendation................................     650,000,000

    The Committee recommends $650,000,000 for the Migration and 
Refugee Assistance Program, of which $70,000,000 is earmarked 
for refugees from the former Soviet Union and Eastern Europe 
and other refugees resettling in Israel.

                             Child Refugees

    The Committee supports continued funding at last year's 
level under the ``Migration and refugee'' account for programs 
initiated through the United Nations High Commissioner for 
Refugees fund for unaccompanied and vulnerable refugee 
children.

            emergency refugee and migration assistance fund

Appropriations, 1998....................................     $50,000,000
Budget estimate, 1999...................................      20,000,000
Committee recommendation................................      20,000,000

    The Committee recommends $20,000,000 for the emergency 
refugee and migration assistance fund.

    nonproliferation, antiterrorism, demining, and related programs

Appropriations, 1998....................................    $133,000,000
Budget estimate, 1999...................................     215,900,000
Committee recommendation................................     170,000,000

    The Committee recommends $170,000,000 for a consolidated 
account which includes the nonproliferation and disarmament 
fund, antiterrorism activities, demining programs, and funding 
for the International Atomic Energy Agency and the Korean 
Peninsula Energy Development Organization.

----------------------------------------------------------------------------------------------------------------
                                                                                                     Committee  
                                                                   1998 enacted    1999 request   recommendation
----------------------------------------------------------------------------------------------------------------
Antiterrorism..................................................     $19,000,000      $21,000,000     $21,000,000
Nonproliferation and disarmament fund..........................      15,000,000       15,000,000      15,000,000
Demining.......................................................      20,000,000       50,000,000      35,000,000
International Atomic Energy Agency.............................      36,000,000       40,000,000      40,000,000
Korean Peninsula Energy Development Organization...............      30,000,000       35,000,000      35,000,000
Nonproliferation and disarmament...............................      15,000,000       15,000,000      15,000,000
Export assistance..............................................       3,000,000        5,000,000       4,000,000
Science centers................................................     (18,000,000)      21,000,000      20,000,000
CTBT Prepcom...................................................   \1\ 7,573,000       28,900,000  ..............
----------------------------------------------------------------------------------------------------------------
\1\ Fiscal year 1998 funding in ACDA and ``International conference and contingencies'' accounts. Up to         
  $13,000,000 authorized pursuant to Public Law 105-119.                                                        

                    NONPROLIFERATION AND DISARMAMENT

    The Committee supports the activities carried out by this 
fund for controlling the spread of nuclear weapons and 
material, particularly efforts made to limit nuclear smuggling.

                                DEMINING

    The Committee has provided $35,000,000 for the Department 
of State's humanitarian demining programs, which may be made 
available through governments, nongovernmental organizations, 
and private contractors, for the removal of landmines and other 
unexploded ordnance [UXO], and related activities. The 
Committee intends that these programs will emphasize the 
training of indigenous civilian deminers, mine awareness and 
education, mapping and marking, surveys of mine incidents, and 
outreach to mine-affected areas to monitor the needs of mine 
and UXO victims. The Committee commends the United States 
Embassy in Laos for its efforts to support the creation of a 
United States NGO to train Laotians to defuse the Vietnam war-
era UXO that litters that country.

  Comprehensive Test Ban Treaty Preparatory Commission [ctbt prepcom]

    The Comprehensive Test Ban Treaty has not been ratified by 
the U.S. Senate. In addition, funding for the CTBT PrepCom was 
requested to acquire technical equipment by the Arms Control 
and Disarmament Agency which officials acknowledge will not 
provide new or unique data which would enhance the present 
ability of the United States to detect seismic events around 
the globe. Given these concerns, combined with pressure to fund 
existing vital programs in the ``Nonproliferation, 
antiterrorism, demining, and related programs'' account, the 
Committee did not recommend funding for the Commission's 
activities. The Committee has provided authority in related 
appropriations legislation to use ACDA resources to fund more 
limited activities. The Committee directs ACDA to provide a 
report to the Committee, 90 days after the date of enactment, 
which describes how the proposed monitoring stations could be 
reconfigured to provide unique and useful information to the 
United States.

                               sri lanka

    The Committee again urges the administration to expand its 
support for antiterrorism programs in Sri Lanka, where Tamil 
guerrillas have mercilessly targeted innocent civilians. The 
Committee remains concerned about reports that civilians are 
being killed and maimed from landmines used by Sri Lankan 
Government forces as well as Tamil guerrillas.

                               TITLE III

                          MILITARY ASSISTANCE

                  Funds Appropriated to the President

             International Military Education and Training

Appropriations, 1998....................................     $50,000,000
Budget estimate, 1999...................................      50,000,000
Committee recommendation................................      50,000,000

    The Committee recommends $50,000,000 for the International 
Military Education and Training [IMET] Program.
    The Committee has not continued the prior limitations on 
the international military education and training program for 
Indonesia. However, the Committee expects the Defense Security 
Assistance Agency to consult with the Committee regarding any 
plans to provide IMET to Indonesia, given past human rights 
concerns and the continued influence of the Armed Forces in 
Indonesian political and economic affairs. Any participants 
should be carefully vetted and courses should emphasize 
civilian control of the armed services.

                       Foreign Military Financing

                          total program level

Appropriations, 1998....................................  $3,356,550,000
Budget estimate, 1999...................................   3,295,910,000
Committee recommendation................................   3,342,910,000

                              grant level

Appropriations, 1998....................................  $3,296,550,000
Budget estimate, 1999...................................   3,275,910,000
Committee recommendation................................   3,322,910,000

                (limitation on administrative expenses)

Appropriations, 1998....................................     $23,250,000
Budget estimate, 1999...................................      29,910,000
Committee recommendation................................      29,910,000

                  subsidy appropriations--direct loans

Appropriations, 1998....................................     $60,000,000
Budget estimate, 1999...................................      20,000,000
Committee recommendation................................      20,000,000

                        (estimated loan program)

Appropriations, 1998....................................    $657,000,000
Budget estimate, 1999...................................     167,000,000
Committee recommendation................................     167,000,000

    The Committee has eliminated funding for the Enhanced 
Peacekeeping Initiative. The administration was unable to 
identify a unique or credible function for the use of these 
resources nor potential recipients other than those already 
substantially supported by the Africa crisis response 
initiative. Justification material suggest the resources are to 
be made available for U.N. standby arrangements, activities 
with little congressional support.

                    BALTIC STATES and NATO EXPANSION

    The Committee has provided $15,300,000 in FMF grant 
assistance to accelerate the Baltic States integration into 
NATO. The Committee regrets that budget constraints prevent 
matching last year's levels but remains supportive of this 
initiative. This assistance supports these democracies as they 
enhance their military capacities and adopt NATO standards. The 
Committee believes that FMF should be allocated among the three 
nations on a proportional basis.
    The Committee has not continued the prior limitations on 
the international military education and training program for 
Indonesia. However, the Committee expects the Defense Security 
Assistance Agency to consult with the Committee regarding any 
plans to provide IMET to Indonesia, given past human rights 
concerns and the continued influence of the Armed Forces in 
Indonesian political and economic affairs. Any participants 
should be carefully vetted and courses should emphasize 
civilian control of the armed services.

                               LANDMINES

    The Committee again includes language permitting demining 
equipment to be made available on a grant basis to foreign 
countries. The Committee strongly supports continued use of FMF 
funds for activities to assist in locating and destroying 
unexploded landmines and unexploded ordnance that maim and kill 
innocent people around the world.

                  EGYPTIAN COMMAND AND CONTROL SYSTEMS

    The Committee understands that the Government of Egypt is 
considering the acquisition of a tactical command and control 
system for its army and is also in the process of acquiring a 
forward area air defense system. In order to maximize United 
States-Egyptian military cooperation during combined exercises 
and operations in wartime, the Committee strongly recommends 
that the Government of Egypt purchase systems manufactured by a 
United States company that are currently fielded and in use by 
the United States Army.

                    Special Defense Acquisition Fund

    The Committee recommends no new obligational authority for 
the special defense acquisition fund [SDAF] for fiscal year 
1999. The language included in the fiscal year 1993 bill, which 
requires that all receipts into the fund be returned to the 
Treasury, remains in effect and will reduce the deficit by 
approximately $19,000,000 in fiscal year 1999.

                        Peacekeeping Operations

Appropriations, 1998....................................     $77,500,000
Budget estimate, 1999...................................      83,000,000
Committee recommendation................................      69,000,000

    The Committee recommends an appropriation of $69,000,000. 
The Committee has reduced funding for the ``African Regional 
Peacekeeping'' account in view of the substantial United States 
unilateral commitment to the African Crisis Response 
Initiative. The Committee also intends no more than $5,000,000 
be made available for Haiti.

                                TITLE IV

                    MULTILATERAL ECONOMIC ASSISTANCE

              International Financial Institutions Summary

Appropriations, 1998....................................  $1,458,949,080
Budget estimate, 1999...................................   1,148,762,980
Committee recommendation................................     874,610,980

    The Committee recommends the total level of paid-in capital 
funding shown above to provide for contributions to the 
International Bank for Reconstruction and Development soft loan 
window, the International Development Association, the Inter-
American Development Bank, the Asian Development Bank, and the 
European Bank for Reconstruction and Development. Treatment of 
arrears for multilateral institutions can be found in title VI.

         International Bank for Reconstruction and Development

              International Development Association [IDA]

Appropriations, 1998....................................  $1,034,503,100
Budget estimate, 1999...................................     800,000,000
Committee recommendation................................     800,000,000

    The Committee recommends an appropriation of $800,000,000 
for IDA and expects the Secretary of the Treasury to work to 
make IDA resources available for Indonesia.
    The Committee is concerned that World Bank lending and 
procurement procedures fail to prohibit or even address illegal 
software use within projects funded by the bank. This Committee 
cannot condone the use of World Bank funds to support projects 
in which U.S. software programs are stolen in violation of 
copyright law and trade-related treaty obligations. Therefore, 
the Committee urges the World Bank and other multilateral 
development banks to adopt, without further delay, lending and 
procurement guidelines that prohibit illegal software use by 
recipients (including contractors and any project 
subcontractors) of any bank loan proceeds or other funds. The 
Committee further directs the Treasury Department to assume 
leadership on this issue by promoting adoption of the 
recommended guidelines within each of the multilateral 
development banks.
    The Committee has provided funding for IDA subject to an 
audit to be prepared by the General Accounting Office. The 
Committee is concerned by recent reports of corruption at IDA 
and its associated institution, the International Bank for 
Reconstruction and Development. The Committee recognizes 
efforts have been made through audits and investigations to 
resolve this problem, however, much of this activity has been 
conducted in secret. The Committee believes that efforts to 
improve ethical conduct and strengthen standards of integrity 
succeed best if they are established and promoted as important 
and publicly upheld priorities of the institution's leadership.
    The Committee has also requested a report from GAO 
addressing personnel policies, in particular, concerns about 
the lack of protection for individuals who volunteer 
information about financial or personnel improprieties. The 
Bank maintains rules which permit individuals accused of wrong 
doing to confront their accuser which the Committee believes 
may have a chilling affect on the inclination of employees to 
be forthcoming.
    The Committee is aware that in response to concerns raised 
by the Committee as well as past and present World Bank female 
employees about serious deficiencies in the Bank's internal 
grievance procedures, Bank management sought the assistance of 
an independent legal expert to review the procedures and make 
recommendations for reform. That review has been completed and 
Bank management has indicated that it will release the report 
publicly and implement an open process that encourages 
recommendations from Bank employees and interested members of 
the public for reform of the grievance procedures. The 
Committee welcomes these steps and expects to be kept informed 
as it progresses. In an institution that is immune from the 
court process it is imperative that employees have confidence 
in grievances procedures that afford appropriate 
confidentiality, due process, and adequate remedies.
    The Committee remains concerned about the maintenance of 
integrity and transparency in procurement financed by the 
multilateral lending banks. The elimination of fraud and 
manipulation, including the use of third-party procurement 
monitoring, can result in cost savings and quality improvements 
for goods and services purchased. The implementation of such 
techniques may also enhance U.S. competitiveness in procurement 
awards. Accordingly, the Committee requests that the 
institutions receiving contributions under this section provide 
a report outlining their individual program to combat fraud and 
manipulation, including whether the use of third-party 
procurement monitoring is employed.

                    Inter-American Development Bank

                     Interregional paid-in capital

Appropriations, 1998....................................     $25,610,667
Budget estimate, 1999...................................      25,610,667
Committee recommendation................................      25,610,667

                     limitation on callable capital

Appropriations, 1998....................................  $1,503,718,910
Budget estimate, 1999...................................   1,503,718,910
Committee recommendation................................   1,503,718,910

                         Asian Development Bank

                            PAID-IN CAPITAL

Appropriations, 1998....................................     $13,221,596
Budget estimate, 1999...................................      13,221,596
Committee recommendation................................      13,221,596

                     LIMITATION ON CALLABLE CAPITAL

Appropriations, 1998....................................    $647,858,204
Budget estimate, 1999...................................     647,858,204
Committee recommendation................................     647,858,204

    Given the enormous importance the Committee attaches to 
resolving the economic crisis affecting most Asian nations, 
especially Korea, Thailand, and Indonesia, the Committee has 
fully funded the Asian Development Bank.

            European Bank for Reconstruction and Development

                            paid-in capital

Appropriations, 1998....................................     $35,778,717
Budget estimate, 1999...................................      35,778,717
Committee recommendation................................      35,778,717

                     limitation on callable capital

Appropriations, 1998....................................    $123,237,803
Budget estimate, 1999...................................     123,237,803
Committee recommendation................................     123,237,803

    The European Bank for Reconstruction and Development 
continues to play an important role in central and Eastern 
Europe and the former Soviet Union. The Committee notes that 
this institution intends to be self-sufficient in the near term 
and welcomes this development.

                      International Monetary Fund

                      Enhanced Structural Facility

Appropriations, 1998....................................................
Budget estimate, 1999...................................      $7,000,000
Committee recommendation................................................

    The Committee believes that other institutions, 
particularly the International Development Association, along 
with regular International Monetary Fund [IMF] programs can 
provide support for programs intended to be funded under this 
facility.

                International Organizations and Programs

Appropriations, 1998....................................    $192,000,000
Budget estimate, 1999...................................     314,000,000
Committee recommendation................................     170,000,000

    The Committee has provided $170,000,000 for the 
``International organizations and programs'' account. This 
amount does not include funding for the Korea Peninsula 
Economic Development Organization [KEDO] and the International 
Atomic Energy Agency [IAEA] which are provided for in the 
nonproliferation, antiterrorism, demining, and related programs 
section of the bill. It also does not include funds for UNICEF, 
made available under the heading ``Development Assistance.''
    The Committee has included language earmarking $5,000,000 
for a U.S. contribution to the World Food Program, which has a 
central role in responding to famines and food emergencies 
around the world.

                    u.n. fund for victims of torture

    The Committee is aware that the use of torture is common 
for victims in scores of countries today. The U.N. Fund for 
Victims of Torture provides financial support to treatment 
programs based in the United States and abroad. The Committee 
recommends an increase for the U.S. contribution to the 
voluntary fund in fiscal year 1999 and continues to urge the 
Department of State to encourage other governments to increase 
their own contributions. The Committee hopes that by increasing 
U.S. support for efforts to assist torture victims other 
governments will be encouraged to do likewise.

                    U.N. Climate Stabilization Fund

    The Committee is opposed to efforts by the administration 
to use scarce foreign assistance resources to fund activities 
to induce or compel compliance with agreements and treaties not 
yet ratified nor in force. In particular, the Committee 
strongly objects to representations in budget justification 
materials describing the need to provide assistance to support 
the Kyoto protocol, portions of which are characterized as 
legally binding. Therefore, the Committee has reduced funding 
for fiscal year 1999 for the Climate Stabilization Fund and has 
withheld the availability of funds until the administration 
provides an assessment of the disposition of fiscal years 1998 
and 1999 funding, a detailed description of activities and 
programs, and the number of personnel assigned or detailed to 
these programs.

                                TITLE V

                           GENERAL PROVISIONS

    Sec. 501.--Obligation of funds.
    Sec. 502.--Restricts transfer of development assistance.
    Sec. 503.--Limits residential expenses.
    Sec. 504.--Limits AID entertainment expenses.
    Sec. 505.--Limits other agency entertainment expenses.
    Sec. 506.--Prohibition on financing of nuclear goods.
    Sec. 507.--Restricts funding for Cuba, Iraq, Libya, North 
Korea, Iran, Sudan, and Syria.
    Sec. 508.--Restricts aid to countries which undergo a coup.
    Sec. 509.--Requires notification of any transfer of funds 
to an account to which it was not appropriated.
    Sec. 510.--Deobligation/reobligation authority.
    Sec. 511.--Restricts the availability of funds to current 
fiscal year.
    Sec. 512.--Limits assistance to countries in default.
    Sec. 513.--Restricts Export-Import Bank and OPIC from 
funding exports or activities which harm U.S. producers 
engaging in similar businesses.
    Sec. 514.--Restricts funding for surplus commodities.
    Sec. 515.--Requires notification of spending changes.
    Sec. 516.--Restricts funds for international organizations 
and programs.
    Sec. 517.--Economic support fund assistance for Israel.
    Sec. 518.--Prohibits funding for abortions and involuntary 
sterilization.
    Sec. 519.--Prohibition on funds for foreign organizations 
that perform abortion.
    Sec. 520.--North Korean narcotics report.
    Sec. 521.--Special notification for India, Colombia, 
Dominican Republic, Haiti, Liberia, Pakistan, Serbia, Sudan, or 
Democratic Republic of the Congo.
    Sec. 522.--Definition of program, project and activity.
    Sec. 523.--Child survival and AIDS programs.
    Sec. 524.--Prohibits indirect funding to Cuba, Iraq, Libya, 
Iran, Syria, North Korea, or People's Republic of China.
    Sec. 525.--Technical change to AECA
    Sec. 526.--Notification of excess defense equipment.
    Sec. 527.--Waives authorization requirement.
    Sec. 528.--Prohibits bilateral assistance to terrorist 
nations.
    Sec. 529.--Allows for commercial leasing of defense 
articles.
    Sec. 530.--Allows U.S. insurance companies to bid for 
insurance contracts.
    Sec. 531.--Restricts stingers for Persian Gulf nations.
    Sec. 532.--Provides for debt-for-development programs.
    Sec. 533.--Requires separate accounts for local currencies 
and cash transfers.
    Sec. 534.--Compensation for U.S. executive directors to 
international financial institutions.
    Sec. 535.--Compliance with U.N. sanctions against Iraq.
    Sec. 536.--Competitive pricing for sales of defense 
articles.
    Sec. 537.--Authorities for Peace Corps, IFAD, Inter-
American Foundation an African Development Foundation.
    Sec. 538.--Restricts impacts on U.S. jobs.
    Sec. 539.--Restricts Kosovo related sanctions against 
Serbia and Montenegro.
    Sec. 540.--Provides special authorities.
    Sec. 541.--Sense of the Congress regarding the Arab League 
boycott of Israel.
    Sec. 542.--Allows economic support funds to be used for 
counternarcotic programs in Latin America and Caribbean.
    Sec. 543.--Requires notification for funding of 
nongovernmental organizations and Public Law 480 programs in 
countries subject to restrictions.
    Sec. 544.--Requires notification of reprogramming of 
earmarked funds.
    Sec. 545.--Defines ceilings and earmarks.
    Sec. 546.--Prohibits funds for publicity or propaganda.
    Sec. 547.--Purchase of American goods.
    Sec. 548.--Prohibits payments to the United Nations.
    Sec. 549.--Requires expenditure of consulting services be 
matter of public record.
    Sec. 550.--Requires private voluntary organizations to be 
able to provide documents.
    Sec. 551.--Prohibits assistance to foreign governments that 
export lethal military equipment to countries supporting 
international terrorism.
    Sec. 552.--Withholds assistance for parking fines owed by 
foreign countries.
    Sec. 553.--Limits assistance for the PLO.
    Sec. 554.--Allows drawdown for United Nations War Crimes 
Tribunal.
    Sec. 555.--Provides demining equipment to foreign 
countries.
    Sec. 556.--Restrictions concerning Palestinian authority.
    Sec. 557.--Prohibits payment of certain expenses for IMET 
and foreign military financing.
    Sec. 558.--Provides for special debt relief to the poorest.
    Sec. 559.--Provisions relative to loans eligible for sale, 
reduction, or cancellation.
    Sec. 560.--Limits assistance for Haiti.
    Sec. 561.--Requires report detailing recipient nation's 
support for the United States at the United Nations.
    Sec. 562.--Burma labor report.
    Sec. 563.--Allows Haiti police and Coast Guard to purchase 
defense articles and services.
    Sec. 564.--Limitations on assistance to security forces.
    Sec. 565.--Limitations on international financial 
institution support for Cambodia.
    Sec. 566.--Limitations on transfer of military equipment to 
East Timor.
    Sec. 567.--Restrictions on U.N. voluntary contributions.
    Sec. 568.--Limitations on aid to countries offering 
sanctuary to war criminals.
    Sec. 569.--Excess Defense Article for Europe.
    Sec. 570.--Stockpiling.
    Sec. 571.--Religious discrimination in Russia.
    Sec. 572.--Report on costs of greenhouse gas agency 
expenditures.
    Sec. 573.--Violations of Libya sanctions.
    Sec. 574.--Aid to the Democratic Republic of Congo.
    Sec. 575.--Export financing transfer authorities.
    Sec. 576.--New Independent States.
    Sec. 577.--Publication of certain notifications.
    Sec. 578.--Report on arms exports.
    Sec. 579.--National Advisory Council.
    Sec. 580.--Limitations on Palestinian authority aid.

               TITLE VI--MULTILATERAL ECONOMIC ASSISTANCE

                  funds appropriated to the president

                     fiscal year 1998 supplemental

                  payments for amounts previously due

Appropriations, 1998....................................    $360,012,100
Budget estimate, 1999...................................     509,000,000
Committee recommendation................................     310,652,000

         INTERNATIONAL BANK for RECONSTRUCTION and DEVELOPMENT

                      Global Environment Facility

Appropriations, 1998....................................     $47,500,000
Budget estimate, 1999...................................     300,000,000
Committee recommendation................................      47,500,000

                    INTER-AMERICAN DEVELOPMENT BANK

                      Fund for Special Operations

Appropriations, 1998....................................     $20,835,000
Budget estimate, 1999...................................      21,152,000
Committee recommendation................................      21,152,000

                      enterprise for the americas

                      Multilateral Investment Fund

Appropriations, 1998....................................     $30,000,000
Budget estimate, 1999...................................      50,000,000
Committee recommendation................................      50,000,000

                         ASIAN DEVELOPMENT FUND

Appropriations, 1998....................................     $40,000,000
Budget estimate, 1999...................................     187,000,000
Committee recommendation................................     187,000,000

                        AFRICA DEVELOPMENT FUND

Appropriations, 1998....................................     $45,000,000
Budget estimate, 1999...................................      88,300,000
Committee recommendation................................       5,000,000

    The Committee has completed arrears payments for the Inter-
American Development Bank Fund for Special Operations, the 
Asian Development Fund, and the African Development Fund, 
consistent with special treatment provided by the Committee on 
the Budget.
    The Committee has provided the requested level for the 
Enterprise for the Americas Multilateral Investment Fund. The 
Committee did not increase the amount made available to reduce 
MIF arrears payments due to ongoing, serious concerns about the 
Inter-American Bank's management of MIF resources. The 
Committee expects prompt action to improve the quality and 
amount of attention the Bank dedicates to MIF projects.
    The Committee has provided last year's level of funding for 
payments of arrears to the International Bank for 
Reconstruction and Development's Global Environment Facility.

                  loans to INTERNATIONAL MONETARY FUND

                       New Arrangements to Borrow

Appropriations, 1998....................................................
Budget estimate, supplemental, 1998.....................  $3,361,000,000
Committee recommendation................................   3,361,000,000

                             Quota Increase

Appropriations, 1998....................................................
Budget estimate, supplemental, 1998..................... $14,500,000,000
Committee recommendation................................  14,500,000,000

    The Committee has included funding for the new arrangements 
to borrow and the quota increase for the International Monetary 
Fund, consistent with the fiscal year 1998 supplemental 
request. The Committee has also included language as passed by 
the Senate regarding IMF reforms designed to improve management 
of and timely access to decisionmaking and information relevant 
to the Fund's lending practices. In view of the impact the 
Asian crisis has had on the IMF's liquidity and usable 
resources and the real prospect of additional imminent 
requirements, the Committee views the replenishment of IMF 
resources as a high priority.

  COMPLIANCE WITH PARAGRAPH 7, RULE XVI OF THE STANDING RULES OF THE 
                                 SENATE

    Rule XVI, paragraph 7 requires that every report on a 
general appropriation bill filed by the Committee must identify 
each recommended amendment, with particularity, which proposes 
an item of appropriation which is not made to carry out the 
provisions of an existing law, a treaty stipulation, or an act 
or resolution previously passed by the Senate during that 
session.
    Items providing funding for fiscal year 1999 which lack 
authorization are as follows:

Export-Import Bank......................................    $785,000,000
Trade and Development Agency............................      43,000,000
Development assistance, including Inter-American 
    Foundation, African Development Foundation..........   1,885,000,000
International disaster assistance.......................     200,000,000
Debt restructuring......................................      25,000,000
Treasury technical assistance...........................       3,000,000
Micro and Small Enterprise Development Program..........       2,000,000
Urban and Environmental Credit Program..................       7,000,000
AID operating expenses..................................     475,000,000
AID operating expenses, Office of Inspector General.....      30,000,000
Economic support fund...................................   2,305,600,000
Assistance for Eastern Europe and the Baltics...........     432,600,000
Assistance for the New Independent States of the former 
    Soviet Union........................................     740,000,000
Peace Corps.............................................     221,000,000
International narcotics control.........................     222,000,000
Migration and refugee assistance........................     650,000,000
Nonproliferation, antiterrorism, demining, and related 
    programs............................................     170,000,000
International military education and training...........      50,000,000
Foreign Military Financing Program......................   3,322,910,000
Peacekeeping operations.................................      69,000,000
International organizations and programs................     170,000,000

COMPLIANCE WITH PARAGRAPH 7(C), RULE XXVI, OF THE STANDING RULES OF THE 
                                 SENATE

    Pursuant to paragraph 7(c) of rule XXVI, the Committee 
ordered reported, S. 2334, an original Foreign Operations 
appropriations bill, 1999, subject to amendment and subject to 
appropriate scorekeeping, by a recorded vote of 26-1, a quorum 
being present. The vote was as follows:
        Yeas                          Nays
Chairman Stevens                    Mr. Faircloth
Mr. Cochran
Mr. Specter
Mr. Domenici
Mr. Bond
Mr. Gorton
Mr. McConnell
Mr. Burns
Mr. Shelby
Mr. Gregg
Mr. Bennett
Mr. Campbell
Mrs. Hutchison
Mr. Byrd
Mr. Inouye
Mr. Hollings
Mr. Leahy
Mr. Bumpers
Mr. Lautenberg
Mr. Harkin
Ms. Mikulski
Mr. Reid
Mr. Kohl
Mrs. Murray
Mr. Dorgan
Mrs. Boxer

 COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 12 of rule XXVI requires that Committee report on 
a bill or joint resolution repealing or amending any statute or 
part of any statute include ``(a) the text of the statute or 
part thereof which is proposed to be repealed; and (b) a 
comparative print of that part of the bill or joint resolution 
making the amendment and of the statute or part thereof 
proposed to be amended, showing by stricken-through type and 
italics, parallel columns, or other appropriate typographical 
devices the omissions and insertions which would be made by the 
bill or joint resolution if enacted in the form recommended by 
the committee.''
    In compliance with this rule, the following changes in 
existing law proposed to be made by the bill are shown as 
follows: existing law to be omitted is enclosed in black 
brackets, new matter is printed in italic, and existing law in 
which no change is proposed is shown in roman.

                     Foreign Assistance Act of 1961

                                 PART I

Chapter 1--Policy; Development Assistance Authorizations

           *       *       *       *       *       *       *


    Sec. 108. Private Sector Revolving Fund.--(a) * * *

           *       *       *       *       *       *       *

    (i) (1) To carry out the purposes of subsection (a), in 
addition to the other authorities set forth in this section, 
the agency primarily responsible for administering this part is 
authorized to issue guarantees on such terms and conditions as 
it shall determine assuring against losses incurred in 
connection with loans made to projects that meet the criteria 
set forth in subsection (c). The full faith and credit of the 
United States is hereby pledged for the full payment and 
performance of such guarantees.
    (2) Loans guaranteed under this subsection shall be on such 
terms and conditions as the agency may prescribe, except for 
the following:
          (A) The agency shall issue guarantees only when it is 
        necessary to alleviate a credit market imperfection.
          (B) Loans guaranteed shall provide for complete 
        amortization within a period not to exceed ten years 
        or, if the principal purpose of the guaranteed loan is 
        to finance the construction or purchase of a physical 
        asset with a useful life of less than ten years, within 
        a period not to exceed such useful life.
          [(C) No loan guaranteed to any one borrower may 
        exceed 50 percent of the cost of the activity to be 
        financed, or $3,000,000, whichever is less, as 
        determined by the agency.]
          (C) No guarantee of any loan may guarantee more than 
        50 percent of the principal amount of any such loan, 
        except guarantees of loans in support of 
        microenterprise activites may guarantee up to 70 
        percent of the principal amount of any such loan.

           *       *       *       *       *       *       *

    Sec. 123. Private and Voluntary Organizations and 
Cooperatives in Overseas Development.--(a) * * *
    [(g) After December 31, 1984, funds made available to carry 
out section 103(a), 104(b), 104(c), 105, 106, 491, or 496 of 
this Act may not be made available for programs of any United 
States private and voluntary organization which does not obtain 
at least 20 percent of its total annual financial support for 
its international activities from sources other than the United 
States Government, except that this restriction does not apply 
with respect to programs which, as of that date, are receiving 
financial support from the agency primarily responsible for 
administering this part. The Administrator of the agency 
primarily responsible for administering this part may, on a 
case-by-case basis, waive the restriction established by this 
subsection, after taking into account the effectiveness of the 
overseas development activities of the organization, its level 
of volunteer support, its financial viability and stability, 
and the degree of its dependence for its financial support on 
the agency primarily responsible for administering this part.]

           *       *       *       *       *       *       *


Chapter 2--Other Programs

           *       *       *       *       *       *       *


Title III--Housing and Other Credit Guaranty Programs

           *       *       *       *       *       *       *


    Sec. 222. Authorization.--(a) To carry out the policy of 
section 221, the President is authorized to issue guaranties to 
eligible investors (as defined in section 238(c)) assuring 
against losses incurred in connection with loans made for 
projects meeting the criteria set forth in section 221. [The 
total principal amount of guaranties issued under this title or 
heretofore issued under prior housing guaranty authorities, 
which are outstanding at any one time, shall not exceed 
$2,558,000,000. The authority of this section shall continue 
through September 30, 1992.] The President may issue 
regulations from time to time with regard to the terms and 
conditions upon which such guaranties shall be issued and the 
eligibility of lenders.

           *       *       *       *       *       *       *

    Sec. 223. General Provisions.--(a) * * *

           *       *       *       *       *       *       *

    (j) Guaranties shall be issued under section 222 only for 
housing projects which are coordinated with and complementary 
to any development assistance being furnished under chapter 1 
of this part and which are specifically designed to demonstrate 
the feasibility and suitability of particular kinds of housing 
or of financial or other institutional arrangements. Of the 
aggregate face value of housing guaranties hereafter issued 
under this title, not less than 90 per centum shall be issued 
for housing suitable for families with income below the median 
income (below the median urban income for housing in urban 
areas) in the country in which the housing is located. [The 
face value of guaranties issued with respect to housing in any 
country shall not exceed $25,000,000 in any fiscal year, and 
the average face value of guaranties issued in any fiscal year 
shall not exceed $15,000,000. Of the total amount of housing 
guaranties authorized to be issued under section 222 through 
September 30, 1982, not less than a face amount of $25,000,000 
shall be issued for projects in Israel and not less than a face 
amount of $25,000,000 shall be issued for projects in Egypt.]

           *       *       *       *       *       *       *


Chapter 3--International Organizations and Programs

           *       *       *       *       *       *       *


    Sec. 307. Withholding of United States Proportionate Share 
for Certain Programs of International Organizations.--(a) 
Notwithstanding any other provision of law, none of the funds 
authorized to be appropriated by this chapter shall be 
available for the United States proportionate share for 
programs for Burma, Iraq, North Korea, Syria, Libya, Iran, 
Cuba, or the Palestine Liberation Organization or for projects 
whose purpose is to provide benefits to the Palestine 
Liberation Organization or entities associated with it, or at 
the discretion of the President, Communist countries listed in 
section 620(f) of this Act.

           *       *       *       *       *       *       *


PART II

           *       *       *       *       *       *       *


Chapter 2--Military Assistance

           *       *       *       *       *       *       *


    Sec. 514. Stockpiling of Defense Articles for Foreign 
Countries.--(a) No defense article in the inventory of the 
Department of Defense which is set aside, reserved, or in any 
way earmarked or intended for future use by any foreign country 
may be made available to or for use by any foreign country 
unless such transfer is authorized under this Act or the Arms 
Export Control Act, or any subsequent corresponding 
legislation, and the value of such transfer is charged against 
funds authorized under such legislation or against the 
limitations specified in such legislation, as appropriate, for 
the fiscal period in which such defense article is transferred. 
For purposes of this subsection, ``value'' means the 
acquisition cost plus crating, packing, handling, and 
transportation costs incurred in carrying out this section.
    (b)(1) The value of defense articles to be set aside, 
earmarked, reserved, or intended for use as war reserve stocks 
for allied or other foreign countries (other than for purposes 
of the North Atlantic Treaty Organization or in the 
implementation of agreements with Israel) in stockpiles located 
in foreign countries may not exceed in any fiscal year an 
amount that is specified in security assistance authorizing 
legislation for that fiscal year.
    (2) (A) The value of such additions to stockpiles of 
defense articles in foreign countries shall not exceed 
$50,000,000 for each of the fiscal years 1996 and 1997 [and], 
$60,000,000 for fiscal year 1998 and $340,000,000 for fiscal 
year 1999.
    (B) Of the amount specified in subparagraph (A) for each of 
the fiscal years 1996 and 1997, not more than $40,000,000 may 
be made available for stockpiles in the Republic of Korea and 
not more than $10,000,000 may be made available for stockpiles 
in Thailand. 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. Of the amount specified in subparagraph (A) for 
fiscal year 1999, not more than $320,000,000 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. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.

    (a) Authorization.--* * *

           *       *       *       *       *       *       *

    (f) Advance Notification to Congress for Transfer of 
Certain Excess Defense Articles.--
          (1) In general.--The President may not transfer 
        excess defense articles that are significant military 
        equipment (as defined in section 47(9) of the Arms 
        Export Control Act) or excess defense articles valued 
        (in terms of original acquisition cost) at $7,000,000 
        or more, under this section or under the Arms Export 
        Control Act (22 U.S.C. 2751 et seq.) until 30 days 
        after the date on which the President has provided 
        notice of the proposed transfer to the congressional 
        committees specified in section 634A(a) in accordance 
        with procedures applicable to reprogramming 
        notifications under that section.
          (2) Contents.--Such notification shall include--
                  (A) a statement outlining the purposes for 
                which the article is being provided to the 
                country, including whether such article has 
                been previously provided to such country;
                  (B) an assessment of the impact of the 
                transfer on the military readiness of the 
                United States;
                  (C) an assessment of the impact of the 
                transfer on the national technology and 
                industrial base and, particularly, the impact 
                on opportunities of entities in the national 
                technology and industrial base to sell new or 
                used equipment to the countries to which such 
                articles are to be transferred; and
                  (D) a statement describing the current value 
                of such article and the value of such article 
                at acquisition.
            (3) Publication.--Each notice required by this 
        subsection shall be published in the Federal Register 
        as soon as practicable after it has been provided to 
        the congressional committees specified in section 
        634A(a). In any case in which the President concludes 
        that such publication would be harmful to the national 
        security of the United States, only a statement that a 
        notice has been provided pursuant to this subsection to 
        such committees shall be published.

           *       *       *       *       *       *       *


                    Chapter 4--Economic Support Fund

    Sec. 531. Authority.--(a) * * *

           *       *       *       *       *       *       *

    [(d) To the maximum extent feasible, funds made available 
pursuant to this chapter for commodity import programs or other 
program assistance shall be used to generate local currencies, 
not less than 50 percent of which shall be available to support 
activities consistent with the objectives of sections 103 
through 106 of this Act, and administered by the agency 
primarily responsible for administering part I of this Act.]

           *       *       *       *       *       *       *


                                PART III

Chapter 1--General Provisions

           *       *       *       *       *       *       *


    [Sec. 609. Special Account.--(a) In cases where any 
commodity is to be furnished on a grant basis under chapter 4 
of part I under arrangements which will result in the accrual 
of proceeds to the recipient country from the sale thereof, the 
President shall require the recipient country to establish a 
Special Account, and
          [(1) deposit in the Special Account, under terms and 
        conditions as may be agreed upon, currency of the 
        recipient country in amounts equal to such proceeds;
          [(2) make available to the United States Government 
        such portion of the Special Account as may be 
        determined by the President to be necessary for the 
        requirements of the United States Government: Provided, 
        That such portion shall not be less than 10 per centum 
        in the case of any country to which such minimum 
        requirement has been applicable under any Act repealed 
        by this Act; and
          [(3) utilize the remainder of the Special Account for 
        programs agreed to by the United States Government to 
        carry out the purposes for which new funds authorized 
        by this Act would themselves be available: Provided, 
        That whenever funds from such Special Account are used 
        by a country to make loans, all funds received in 
        repayment of such loans prior to termination of 
        assistance to such country shall be reused only for 
        such purposes as shall have been agreed to between the 
        country and the United States Government.
    [(b) Any unencumbered balances of funds which remain in the 
Account upon termination of assistance to such country under 
this Act shall be disposed of for such purposes as may, subject 
to approval by Act of the Congress, be agreed to between such 
country and the United States Government.]

           *       *       *       *       *       *       *

    Sec. 534. Administration of Justice.--(a) * * *

           *       *       *       *       *       *       *

    [(c) Not more than $20,000,000 of the funds made available 
to carry out this chapter for any fiscal year shall be 
available to carry out this section, in addition to amounts 
otherwise available for such purposes.]

           *       *       *       *       *       *       *

    (e) Personnel of the Department of Defense and members of 
the United States Armed Forces may not participate in the 
provision of training under this section. [Of the funds made 
available to carry out this section, not more than $10,000,000 
may be made available in fiscal year 1991 to carry out the 
provisions of subsection (b)(3) of this section. The authority 
of this section shall expire on September 30, 1991.]

           *       *       *       *       *       *       *


                        Arms Export Control Act

     Chapter 6--LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR 
             COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES

    Sec. 61. Leasing Authority.--(a) The President may lease 
defense articles in the stocks of the Department of Defense to 
an eligible foreign country or international organization if--
          (1) he determines that there are compelling foreign 
        policy and national security reasons for providing such 
        articles on a lease basis rather than on a sales basis 
        under this Act;
          (2) he determines that the articles are not for the 
        time needed for public use;
          (3) the President first considers the effects of the 
        lease of the articles on the national technology and 
        industrial base, particularly the extent, if any, to 
        which the lease reduces the opportunities of entities 
        in the national technology and industrial base to sell 
        new equipment to the country or countries to which the 
        articles are leased; and
          (4) the country or international organization has 
        agreed to pay in United States dollars all costs 
        incurred by the United States Government in leasing 
        such articles, including reimbursement for depreciation 
        of such articles while leased, the costs of restoration 
        or replacement if the articles are damaged while 
        leased, and, if the articles are lost or destroyed 
        while leased--
                  (A) in the event the United States intends to 
                replace the articles lost or destroyed, the 
                replacement cost (less any depreciation in the 
                value) of the articles; or
                  (B) in the event the United States does not 
                intend to replace the articles lost or 
                destroyed, an amount not less than the actual 
                value (less any depreciation in the value) 
                specified in the lease agreement.
The requirement of paragraph (4) shall not apply to leases 
entered into for purposes of cooperative research or 
development, military exercises, or communications or 
electronics interface projects. The President may waive the 
requirement of paragraph (4) for reimbursement of depreciation 
for any defense article which has passed three-quarters of its 
normal service life if the President determines that to do so 
is important to the national security interest of the United 
States.
    The President may waive the requirement of paragraph (4) 
with respect to a lease which is made in exchange with the 
lessee for a lease on substantially reciprocal terms of defense 
articles for the Department of Defense, except that this waiver 
authority--
          (A) may be exercised only if the President submits to 
        the Committee on Foreign Affairs and the Committee on 
        Appropriations of the House of Representatives and the 
        Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate, in accordance with the 
        regular notification procedures of those Committees, a 
        detailed notification for each lease with respect to 
        which the authority is exercised; and
          (B) may be exercised only during the fiscal year 
        [1998] the current fiscal year and only with respect to 
        one country, unless the Congress hereafter provides 
        otherwise.
The preceding sentence does not constitute authorization of 
appropriations for payments by the United States for leased 
articles.
    (b) Each lease agreement under this section shall be for a 
fixed duration of not to exceed five years and shall provide 
that, at any time during the duration of the lease, the 
President may terminate the lease and require the immediate 
return of the leased articles.
    (c) Defense articles in the stocks of the Department of 
Defense may be leased or loaned to a foreign country or 
international organization only under the authority of this 
chapter or chapter 2 of part II of the Foreign Assistance Act 
of 1961, and may not be leased to a foreign country or 
international organization under the authority of section 2667 
of title 10, United States Code.

           *       *       *       *       *       *       *


   Foreign Assistance and Related Programs Appropriations Act, 1985 
                          (Public Law 98-473)

               TITLE I--MULTILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

International Financial Institutions

           *       *       *       *       *       *       *


       contribution to the international development association

    For payment to the International Development Association by 
the Secretary of the Treasury, $750,000,000, for the first 
installment of the United States contribution to the seventh 
replenishment, to remain available until expended, and 
$150,000,000 for the United States contribution to the sixth 
replenishment, to remain available until expended: Provided, 
That no such payment may be made while the United States 
Executive Director to the International Bank for Reconstruction 
and Development is compensated by the Bank at a rate in excess 
of the rate provided for an individual occupying a position at 
level IV of the Executive Schedule under section 5315 of title 
5, United States Code, or while the alternate United States 
Executive Director to the Bank is compensated by the Bank at a 
rate in excess of the rate provided for an individual occupying 
a position of level V of the Executive Schedule under section 
5316 of title 5, United States Code: Provided further, That 
there is hereby enacted into law the amendment made by section 
901 of S. 2582, as reported by the Committee on Foreign 
Relations for loans shall remain available of obligation until 
September 30, 1986: Provided further, That of the funds 
appropriated under this paragraph, $2,000,000 shall be 
transferred to and made available for ``Science and technology, 
Development Assistance'', which sum shall be made available 
only for cooperative projects among the United States, Israel 
and developing countries.

           *       *       *       *       *       *       *

    [Private and Voluntary Organizations: None of the funds 
appropriated or otherwise made available in this Act for 
development assistance may be made available after January 1, 
1986, to any United States private and voluntary organization, 
except any cooperative development organization, which obtains 
less than 25 percent of its total annual funding for 
international activities from sources other than the United 
States Government, notwithstanding section 123(g) of the 
Foreign Assistance Act of 1961.]

           *       *       *       *       *       *       *


      Foreign Operations, Export Financing, and Related Programs 
             Appropriations Act, 1989 (Public Law 100-461)

               TITLE I--MULTILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

International Financial Institutions

           *       *       *       *       *       *       *


               SUB-SAHARAN AFRICA, DEVELOPMENT ASSISTANCE

    For necessary expenses to carry out the provisions of 
sections 103 through 106 and section 121 of the Foreign 
Assistance Act of 1961, $500,000,000, for assistance only for 
Sub-Saharan Africa, which shall be in addition to any amounts 
otherwise made available for such purposes: Provided, That any 
of the funds which are appropriated under this heading may be 
used for assistance for Sub-Saharan Africa to carry out any 
economic development assistance activities under the Foreign 
Assistance Act of 1961: Provided further, That assistance made 
available under this heading shall be used to help the poor 
majority in Sub-Saharan Africa through a process of long-term 
development and economic growth that is equitable, 
participatory, environmentally sustainable, and self-reliant: 
Provided further, That these objectives may, in part, be 
achieved through the integration of women in the development 
process, appropriate consultation with private voluntary 
organizations, African and other organizations with a local 
perspective on the development process, and inclusion of the 
perspectives and participation of those affected by the 
provision of assistance: Provided further, That assistance made 
available under this heading shall be provided in accordance 
with the policies contained in section 102 of the Foreign 
Assistance Act of 1961: Provided further, That assistance made 
available under this heading should be provided, when 
consistent with the objectives of such assistance, through 
African, United States and other private and voluntary 
organizations which have demonstrated effectiveness in the 
promotion of local grassroots activities on behalf of long-term 
development in Sub-Saharan Africa: Provided further, That 
assistance made available under this heading should be used to 
help overcome shorter-term constraints to long term 
development; to promote reform of sectoral economic policies to 
support the critical sector priorities of agricultural 
production and natural resources, health, voluntary family 
planning services, education, and income generating 
opportunities; to bring about appropriate sectoral 
restructuring of the Sub-Saharan African economies; to support 
reform in public administration and finances and to establish a 
favorable environment for individual enterprise and self-
sustaining development: Provided further, That assisted policy 
reforms should take into account the need to protect vulnerable 
groups: Provided further, That assistance made available under 
this heading shall be used to increase agricultural production 
in ways which protect and restore the natural resource base, 
especially food production; to maintain and improve basic 
transportation and communication networks; to maintain and 
restore the renewable natural resource base in ways which 
increase agricultural production; to improve health conditions 
with special emphasis on meeting the health needs of mothers 
and children, including the establishment of self-sustaining 
primary health care systems that give priority to preventive 
care; to provide increased access to voluntary family planning 
services; to improve basic literacy and mathematics especially 
to those outside the formal educational system and to improve 
primary education; and to develop income-generating 
opportunities for the unemployed and underemployed in urban and 
rural areas: Provided further, That the Administrator of the 
Agency for International Development should target the 
equivalent of 10 percent of the funds appropriated under this 
heading for each of the following: (1) maintaining and 
restoring the renewable natural resource base in ways which 
increase agricultural production, including components of 
agriculture activities which are consistent with this 
objective, (2) health activities, and (3) voluntary family 
planning[: Provided further, That local currencies generated by 
the sale of imports or foreign exchange by the government of a 
country in Sub-Saharan Africa from funds appropriated under 
this heading shall be deposited in a special account 
established by that government: Provided further, That these 
local currencies shall be available only for use, in accordance 
with an agreement with the United States, for development 
activities which are consistent with the policy directions of 
section 102 of the Foreign Assistance Act of 1961 and for 
necessary administrative requirements of the United States 
Government]: Provided further, That in order to carry out the 
purposes of this heading, section 604(a) of the Foreign 
Assistance Act of 1961, and similar provisions of law, shall 
not apply with respect to the implementation of assistance 
activities consistent with the purposes of this heading: 
Provided further, That the funds made available under this 
heading shall be provided only on a grant basis.

           *       *       *       *       *       *       *


                           Public Law 104-164

SEC. 105. EXCESS DEFENSE ARTICLES FOR CERTAIN EUROPEAN COUNTRIES.

    Notwithstanding section 516(e) of the Foreign Assistance 
Act of 1961, as added by this Act, during each of the fiscal 
years [1996 and 1997] 1998 and 1999, funds available to the 
Department of Defense may be expended for crating, packing, 
handling, and transportation of excess defense articles 
transferred under the authority of section 516 of such Act to 
countries that are eligible to participate in the Partnership 
for Peace and that are eligible for assistance under the 
Support for East European Democracy [SEED] Act of 1989.

             GOVERNMENT PERFORMANCE AND RESULTS ACT [GPRA]

    According to the General Accounting Office, USAID's annual 
performance plan partially meets the Result Act requirements. 
In general, while the plan includes objective and quantitative 
development goals and indicators, the plan does not provide 
enough information to link USAID's strategies and performance 
with intended development results. GAO suggests that the plan 
could be improved to better meet the purposes of the Results 
Act if it (1) included indicators that more directly measured 
the effectiveness of USAID programs; and (2) provided a more 
explicit description of the strategies and external factors 
associated with meeting its six development goals.
    While the Committee believes the act establishes important 
objectives, it recognizes it is difficult to quantify or 
measure on a consistent basis the impact of development 
programs, especially those involving long-term commitments of 
resources. For example, while it may be possible to partially 
evaluate maternal health care programs by recording a reduction 
in delivery-related mortalities, other information such as 
maternal longevity, which may directly result from improved 
care, may not be statistics that are either immediately 
available or possible to include in a survey of effectiveness. 
A statistical approach in evaluation of development programs 
may produce unwanted results; the Committee wishes to avoid 
outcomes such as registering the number of program participants 
rather than meeting more important objectives such as outreach 
or quality.
    To avoid further confusion, which has been evident in AID's 
management of GPRA requirements, the Committee directs the AID 
Assistant Administrator for Management to consult with the 
General Accounting Office and jointly provide recommendations 
to the Committee on how to evaluate the use of resources and 
program effectiveness. The Committee discourages a quantitative 
approach or analysis for a solution to meeting GPRA 
expectations.

                                            BUDGETARY IMPACT OF BILL                                            
  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS  
                                                     AMENDED                                                    
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                  Budget authority               Outlays        
                                                             ---------------------------------------------------
                                                               Committee    Amount  of   Committee    Amount  of
                                                               allocation      bill      allocation      bill   
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations                                                    
 to its subcommittees of amounts for 1999: Subcommittee on                                                      
 Foreign Operations, Export Financing, and Related Programs:                                                    
    Defense discretionary...................................  ...........                                       
    Nondefense discretionary................................       12,600       12,554       12,575   \1\ 12,595
    Violent crime reduction fund............................  ...........  ...........  ...........  ...........
    Mandatory...............................................           45           45           45           45
Projections of outlays associated with the recommendation:                                                      
    1999....................................................  ...........  ...........  ...........    \2\ 4,945
    2000....................................................  ...........  ...........  ...........        3,123
    2001....................................................  ...........  ...........  ...........        2,317
    2002....................................................  ...........  ...........  ...........          908
    2003 and future year....................................  ...........  ...........  ...........        1,337
Financial assistance to State and local governments for 1998                                                    
 in bill....................................................           NA  ...........           NA  ...........
----------------------------------------------------------------------------------------------------------------
\1\ Includes outlays from prior-year budget authority.                                                          
\2\ Excludes outlays from prior-year budget authority.                                                          
                                                                                                                
NA: Not applicable.                                                                                             
                                                                                                                
Note.--Consistent with the supplemental funding recommended in the bill for arrearages and for the International
  Monetary Fund, and in accordance with section 314(b) of the Congressional Budget Act of 1974, as amended, the 
  Committee anticipates that the Budget Committee will file revised section 302(a) allocations for the Committee
  on Appropriations reflecting an upward adjustment of $18,172,000,000 in budget authority for fiscal year 1998 
  and $25,000,000 in outlays for fiscal year 1999.                                                              


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 1998 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL 
                                                                        YEAR 1999                                                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      Senate Committee recommendation   
                                                                                                   Committee              compared with (+ or -)        
                        Item                          1998 appropriation    Budget estimate     recommendation   ---------------------------------------
                                                                                                                  1998 appropriation    Budget estimate 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
      TITLE I--EXPORT AND INVESTMENT ASSISTANCE                                                                                                         
                                                                                                                                                        
       EXPORT-IMPORT BANK OF THE UNITED STATES                                                                                                          
                                                                                                                                                        
Limitation on Program Activity:                                                                                                                         
    Subsidy appropriation...........................       $683,000,000        $808,000,000        $785,000,000       +$102,000,000        -$23,000,000 
    (Direct loan authorization).....................     (1,330,000,000)     (1,325,000,000)     (1,325,000,000)        (-5,000,000)  ..................
    (Guaranteed loan authorization).................    (11,300,000,000)    (15,401,000,000)    (15,401,000,000)    (+4,101,000,000)  ..................
    Administrative expenses.........................         48,614,000          51,940,000          49,000,000            +386,000          -2,940,000 
    Negative subsidy................................        -51,000,000         -25,000,000         -25,000,000         +26,000,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, Export-Import Bank of the United States        680,614,000         834,940,000         809,000,000        +128,386,000         -25,940,000 
                                                     ===================================================================================================
          INTERNATIONAL ASSISTANCE PROGRAMS                                                                                                             
                                                                                                                                                        
       OVERSEAS PRIVATE INVESTMENT CORPORATION                                                                                                          
                                                                                                                                                        
Noncredit account:                                                                                                                                      
    Administrative expenses.........................         32,000,000          34,000,000          32,000,000   ..................         -2,000,000 
    Insurance fees and other offsetting collections.       -251,000,000        -260,000,000        -260,000,000          -9,000,000   ..................
Direct loans:                                                                                                                                           
    Loan subsidy....................................          4,000,000           4,000,000           4,000,000   ..................  ..................
    (Loan authorization)............................       (133,000,000)       (200,000,000)       (200,000,000)       (+67,000,000)  ..................
Guaranteed loans:                                                                                                                                       
    Loan subsidy....................................         56,000,000          46,000,000          46,000,000         -10,000,000   ..................
    (Loan authorization)............................     (1,800,000,000)     (2,600,000,000)     (2,600,000,000)      (+800,000,000)  ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, Overseas Private Investment Corporation       -159,000,000        -176,000,000        -178,000,000         -19,000,000          -2,000,000 
                                                     ===================================================================================================
            TRADE AND DEVELOPMENT AGENCY                                                                                                                
                                                                                                                                                        
Trade and Development Agency........................         41,500,000          50,000,000          43,000,000          +1,500,000          -7,000,000 
                                                     ===================================================================================================
      Total, title I, Export and investment                                                                                                             
       assistance...................................        563,114,000         708,940,000         674,000,000        +110,886,000         -34,940,000 
          (Loan authorizations).....................    (14,563,000,000)    (19,526,000,000)    (19,526,000,000)    (+4,963,000,000)  ..................
                                                     ===================================================================================================
       TITLE II--BILATERAL ECONOMIC ASSISTANCE                                                                                                          
                                                                                                                                                        
          INTERNATIONAL ASSISTANCE PROGRAMS                                                                                                             
                                                                                                                                                        
        Agency for International Development                                                                                                            
                                                                                                                                                        
Child survival and disease programs fund............        650,000,000         502,836,000   ..................       -650,000,000        -502,836,000 
Development assistance..............................      1,210,000,000       1,265,798,000       1,890,000,000        +680,000,000        +624,202,000 
International disaster assistance...................        190,000,000         205,000,000         200,000,000         +10,000,000          -5,000,000 
Micro and Small Enterprise Development program                                                                                                          
 account:                                                                                                                                               
    Subsidy appropriations..........................          1,500,000           1,500,000           1,500,000   ..................  ..................
    (Direct loan authorization).....................         (1,000,000)         (1,000,000)         (1,000,000)  ..................  ..................
    (Guaranteed loan authorization).................        (48,000,000)        (48,000,000)        (48,000,000)  ..................  ..................
    Administrative expenses.........................            500,000             500,000             500,000   ..................  ..................
Urban and environmental credit program account:                                                                                                         
    Subsidy appropriations..........................          3,000,000           6,000,000           3,000,000   ..................         -3,000,000 
    (Guaranteed loan authorization).................        (46,000,000)        (68,000,000)        (68,000,000)       (+22,000,000)  ..................
    Administrative expenses.........................          6,000,000           6,053,000           4,000,000          -2,000,000          -2,053,000 
Development credit authority program account (by                                                                                                        
 transfer)..........................................  ..................        (15,000,000)  ..................  ..................       (-15,000,000)
                                                     ---------------------------------------------------------------------------------------------------
      Subtotal, development assistance..............      2,061,000,000       1,987,687,000       2,099,000,000         +38,000,000        +111,313,000 
                                                     ===================================================================================================
Payment to the Foreign Service Retirement and                                                                                                           
 Disability Fund....................................         44,208,000          44,552,000          44,552,000            +344,000   ..................
Operating expenses of the Agency for International                                                                                                      
 Development........................................        473,000,000         483,858,000         475,000,000          +2,000,000          -8,858,000 
Operating expenses of the Agency for International                                                                                                      
 Development Office of Inspector General............         29,047,000          33,000,000          30,000,000            +953,000          -3,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, Agency for International Development...      2,607,255,000       2,549,097,000       2,648,552,000         +41,297,000         +99,455,000 
                                                     ===================================================================================================
         Other Bilateral Economic Assistance                                                                                                            
                                                                                                                                                        
Economic support fund:                                                                                                                                  
    Camp David countries............................      2,015,000,000       2,015,000,000       1,855,000,000        -160,000,000        -160,000,000 
    Other...........................................        385,000,000         498,600,000         450,600,000         +65,600,000         -48,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Subtotal, Economic support fund...............      2,400,000,000       2,513,600,000       2,305,600,000         -94,400,000        -208,000,000 
                                                     ===================================================================================================
International fund for Ireland......................         19,600,000   ..................  ..................        -19,600,000   ..................
Assistance for Eastern Europe and the Baltic States.        485,000,000         464,500,000         432,500,000         -52,500,000         -32,000,000 
Assistance for the New Independent States of the                                                                                                        
 former Soviet Union................................        770,000,000         925,000,000         740,000,000         -30,000,000        -185,000,000 
                                                     ===================================================================================================
             Department of the Treasury                                                                                                                 
                                                                                                                                                        
Debt restructuring..................................         27,000,000          72,000,000          25,000,000          -2,000,000         -47,000,000 
International affairs technical assistance..........  ..................          5,000,000           3,000,000          +3,000,000          -2,000,000 
United States community adjustment and investment                                                                                                       
 program............................................  ..................         37,000,000   ..................  ..................        -37,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Subtotal, Department of the Treasury..........         27,000,000         114,000,000          28,000,000          +1,000,000         -86,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, Other Bilateral Economic Assistance....      3,701,600,000       4,017,100,000       3,506,100,000        -195,500,000        -511,000,000 
                                                     ===================================================================================================
                INDEPENDENT AGENCIES                                                                                                                    
                                                                                                                                                        
              Inter-American Foundation                                                                                                                 
                                                                                                                                                        
Appropriations......................................  ..................         22,000,000   ..................  ..................        -22,000,000 
    (By transfer)...................................        (22,000,000)  ..................        (18,000,000)        (-4,000,000)       (+18,000,000)
                                                                                                                                                        
           African Development Foundation                                                                                                               
                                                                                                                                                        
Appropriations......................................  ..................         14,000,000   ..................  ..................        -14,000,000 
    (By transfer)...................................        (14,000,000)  ..................  ..................       (-14,000,000)  ..................
                                                                                                                                                        
                     Peace Corps                                                                                                                        
                                                                                                                                                        
Appropriations......................................        222,000,000         270,335,000         221,000,000          -1,000,000         -49,335,000 
                                                                                                                                                        
                 Department of State                                                                                                                    
                                                                                                                                                        
International narcotics control.....................        215,000,000         275,000,000         222,000,000          +7,000,000         -53,000,000 
Narcotics Interdiction..............................         15,000,000   ..................  ..................        -15,000,000   ..................
Migration and refugee assistance....................        650,000,000         650,000,000         650,000,000   ..................  ..................
Refugee resettlement assistance.....................          5,000,000   ..................  ..................         -5,000,000   ..................
United States Emergency Refugee and Migration                                                                                                           
 Assistance Fund....................................         50,000,000          20,000,000          20,000,000         -30,000,000   ..................
Nonproliferation, anti-terrorism, demining and                                                                                                          
 related programs...................................        133,000,000         215,900,000         170,000,000         +37,000,000         -45,900,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, Department of State....................      1,068,000,000       1,160,900,000       1,062,000,000          -6,000,000         -98,900,000 
                                                     ===================================================================================================
      Total, title II, Bilateral economic assistance      7,598,855,000       8,033,432,000       7,437,652,000        -161,203,000        -595,780,000 
          (By transfer).............................        (36,000,000)        (15,000,000)        (18,000,000)       (-18,000,000)        (+3,000,000)
          (Loan authorizations).....................        (95,000,000)       (117,000,000)       (117,000,000)       (+22,000,000)  ..................
                                                     ===================================================================================================
           TITLE III--MILITARY ASSISTANCE                                                                                                               
                                                                                                                                                        
         FUNDS APPROPRIATED TO THE PRESIDENT                                                                                                            
                                                                                                                                                        
International Military Education and Training.......         50,000,000          50,000,000          50,000,000   ..................  ..................
Foreign Military Financing Program:                                                                                                                     
    Grants:                                                                                                                                             
        Camp David countries........................      3,100,000,000       3,100,000,000       3,160,000,000         +60,000,000         +60,000,000 
        Other.......................................        196,550,000         175,910,000         162,910,000         -33,640,000         -13,000,000 
                                                     ---------------------------------------------------------------------------------------------------
          Subtotal, grants..........................      3,296,550,000       3,275,910,000       3,322,910,000         +26,360,000         +47,000,000 
    (Limitation on administrative expenses).........        (23,250,000)        (29,910,000)        (29,910,000)        (+6,660,000)  ..................
                                                     ===================================================================================================
    Direct concessional loans:                                                                                                                          
        Subsidy appropriation.......................         60,000,000          20,000,000          20,000,000         -40,000,000   ..................
        (Loan authorization)........................       (657,000,000)       (167,000,000)       (167,000,000)      (-490,000,000)  ..................
    FMF program level...............................     (3,953,550,000)     (3,442,910,000)     (3,489,910,000)      (-463,640,000)       (+47,000,000)
                                                     ---------------------------------------------------------------------------------------------------
      Total, Foreign military assistance............      3,356,550,000       3,295,910,000       3,342,910,000         -13,640,000         +47,000,000 
                                                     ===================================================================================================
Special Defense Acquisition Fund: Offsetting                                                                                                            
 collections........................................       -106,000,000         -19,000,000         -19,000,000         +87,000,000   ..................
Peacekeeping operations.............................         77,500,000          83,000,000          69,000,000          -8,500,000         -14,000,000 
                                                     ===================================================================================================
      Total, title III, Military assistance.........      3,378,050,000       3,409,910,000       3,442,910,000         +64,860,000         +33,000,000 
          (Limitation on administrative expenses)...        (23,250,000)        (29,910,000)        (29,910,000)        (+6,660,000)  ..................
          (Loan authorization)......................       (657,000,000)       (167,000,000)       (167,000,000)      (-490,000,000)  ..................
                                                     ===================================================================================================
     TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE                                                                                                         
                                                                                                                                                        
         FUNDS APPROPRIATED TO THE PRESIDENT                                                                                                            
                                                                                                                                                        
        International Financial Institutions                                                                                                            
                                                                                                                                                        
                  World Bank Group                                                                                                                      
                                                                                                                                                        
Contribution to the International Bank for                                                                                                              
 Reconstruction and Development: Contribution to the                                                                                                    
 Global Environment Facility........................  ..................        107,500,000   ..................  ..................       -107,500,000 
Contribution to the International Development                                                                                                           
 Association........................................      1,034,503,100         800,000,000         800,000,000        -234,503,100   ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, World Bank Group.......................      1,034,503,100         907,500,000         800,000,000        -234,503,100        -107,500,000 
                                                     ===================================================================================================
Contribution to the Inter-American Development Bank:                                                                                                    
    Paid-in capital.................................         25,610,667          25,610,667          25,610,667   ..................  ..................
    (Limitation on callable capital subscriptions)..     (1,503,718,910)     (1,503,718,910)     (1,503,718,910)  ..................  ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, contribution to the Inter-American                                                                                                         
       Development Bank.............................         25,610,667          25,610,667          25,610,667   ..................  ..................
                                                     ===================================================================================================
Contribution to the Asian Development Bank:                                                                                                             
    Paid-in capital.................................         13,221,596          13,221,596          13,221,596   ..................  ..................
    (Limitation on callable capital subscriptions)..       (647,858,204)       (647,858,204)       (647,858,204)  ..................  ..................
    Contribution to the Asian Development fund......  ..................         95,000,000   ..................  ..................        -95,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, contribution to the Asian Development                                                                                                      
       Bank.........................................         13,221,596         108,221,596          13,221,596   ..................        -95,000,000 
                                                     ===================================================================================================
Contribution to the African Development Fund........  ..................         66,700,000   ..................  ..................        -66,700,000 
Contribution to the European Bank for Reconstruction                                                                                                    
 and Development:                                                                                                                                       
    Paid-in capital.................................         35,778,717          35,778,717          35,778,717   ..................  ..................
    (Limitation on callable capital subscriptions)..       (123,237,803)       (123,237,803)       (123,237,803)  ..................  ..................
North American Development Bank:                                                                                                                        
    Paid-in capital.................................         56,500,000   ..................  ..................        -56,500,000   ..................
    (Limitation on callable capital subscriptions)..       (318,750,000)  ..................  ..................      (-318,750,000)  ..................
                                                                                                                                                        
             International Monetary Fund                                                                                                                
                                                                                                                                                        
Contribution to the enhanced structural adjustment                                                                                                      
 facility...........................................  ..................          7,000,000   ..................  ..................         -7,000,000 
                                                     ===================================================================================================
      Total, International Financial Institutions...      1,165,614,080       1,150,810,980         874,610,980        -291,003,100        -276,200,000 
          (Limitation on callable capital subscript)     (2,593,564,917)     (2,274,814,917)     (2,274,814,917)      (-318,750,000)  ..................
                                                     ===================================================================================================
      International Organizations and Programs                                                                                                          
                                                                                                                                                        
International organizations and programs............        192,000,000         314,000,000         170,000,000         -22,000,000        -144,000,000 
    (By transfer)...................................         (2,500,000)         (2,500,000)         (2,500,000)  ..................  ..................
                                                     ===================================================================================================
      Total, title IV, Multilateral economic                                                                                                            
       assistance...................................      1,357,614,080       1,464,810,980       1,044,610,980        -313,003,100        -420,200,000 
          (By transfer).............................         (2,500,000)         (2,500,000)         (2,500,000)  ..................  ..................
          (Limitation on callable capital subscript)     (2,593,564,917)     (2,274,814,917)     (2,274,814,917)      (-318,750,000)  ..................
                                                     ===================================================================================================
     TITLE VI--MULTILATERAL ECONOMIC ASSISTANCE                                                                                                         
                                                                                                                                                        
         FUNDS APPROPRIATED TO THE PRESIDENT                                                                                                            
                                                                                                                                                        
         PAYMENTS FOR AMOUNTS PREVIOUSLY DUE                                                                                                            
                                                                                                                                                        
Contribution to the International Bank for                                                                                                              
 Reconstruction and Development:                                                                                                                        
    Contribution to the Global Environment Facility.         47,500,000         192,500,000   ..................        -47,500,000        -192,500,000 
        Fiscal year 1998 supplemental...............  ..................  ..................         47,500,000         +47,500,000         +47,500,000 
Contribution to the Inter-American Development Bank:                                                                                                    
    Fund for special operations.....................         20,835,000          21,152,000   ..................        -20,835,000         -21,152,000 
        Fiscal year 1998 supplemental...............  ..................  ..................         21,152,000         +21,152,000         +21,152,000 
    Contribution to the Enterprise for the Americas                                                                                                     
     Multilateral Investment Fund...................         30,000,000          50,000,000   ..................        -30,000,000         -50,000,000 
        Fiscal year 1998 supplemental...............  ..................  ..................         50,000,000         +50,000,000         +50,000,000 
                                                     ---------------------------------------------------------------------------------------------------
          Total, contribution to the Inter-American                                                                                                     
           Development  Bank........................         50,835,000          71,152,000          71,152,000         +20,317,000   ..................
                                                     ===================================================================================================
Contribution to the Asian Development fund..........        150,000,000         155,000,000   ..................       -150,000,000        -155,000,000 
    Fiscal year 1998 supplemental...................  ..................  ..................        187,000,000        +187,000,000        +187,000,000 
Contribution to the African Development Fund........         45,000,000          88,300,000   ..................        -45,000,000         -88,300,000 
    Fiscal year 1998 supplemental...................  ..................  ..................          5,000,000          +5,000,000          +5,000,000 
                                                                                                                                                        
           INTERNATIONAL MONETARY PROGRAMS                                                                                                              
                                                                                                                                                        
United States Quota (Fiscal year 1998 supplemental).  ..................  ..................     14,500,000,000     +14,500,000,000     +14,500,000,000 
Loans to International Monetary fund (Fiscal year                                                                                                       
 1998 supplemental).................................  ..................  ..................      3,361,000,000      +3,361,000,000      +3,361,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, International Monetary programs........  ..................  ..................     17,861,000,000     +17,861,000,000     +17,861,000,000 
                                                     ===================================================================================================
      Total, title VI, Multilateral economic                                                                                                            
       assistance...................................        293,335,000         506,952,000      18,171,652,000     +17,878,317,000     +17,664,700,000 
          (Fiscal year 1999 appropriations).........       (293,335,000)       (506,952,000)  ..................      (-293,335,000)      (-506,952,000)
          (Fiscal year 1998 appropriations).........  ..................  ..................    (18,171,652,000)   (+18,171,652,000)   (+18,171,652,000)
                                                     ===================================================================================================
      Grand total...................................     13,190,968,080      14,124,044,980      30,770,824,980     +17,579,856,900     +16,646,780,000 
              (Fiscal year 1999 appropriations).....    (13,190,968,080)    (14,124,044,980)    (12,599,172,980)      (-591,795,100)    (-1,524,872,000)
              (Fiscal year 1998 appropriations).....  ..................  ..................    (18,171,652,000)   (+18,171,652,000)   (+18,171,652,000)
          (By transfer).............................        (38,500,000)        (17,500,000)        (20,500,000)       (-18,000,000)        (+3,000,000)
          (Limitation on administrative expenses)...        (23,250,000)        (29,910,000)        (29,910,000)        (+6,660,000)  ..................
          (Limitation on callable capital subscript)     (2,593,564,917)     (2,274,814,917)     (2,274,814,917)      (-318,750,000)  ..................
          (Loan authorizations).....................    (15,315,000,000)    (19,810,000,000)    (19,810,000,000)    (+4,495,000,000)  ..................
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