[Senate Report 105-35]
[From the U.S. Government Publishing Office]



                                                        Calendar No. 94
105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-35
_______________________________________________________________________


 
      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                        APPROPRIATION BILL, 1998

                                _______
                                

                 June 24, 1997.--Ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                         [To accompany S. 955]

    The Committee on Appropriations reports the bill (S. 955) 
making appropriations for Foreign Assistance and related 
programs for the fiscal year ending September 30, 1998, and for 
other purposes, reports favorably thereon and recommends that 
the bill do pass.


Amounts in new budget authority

Fiscal year 1997 appropriations......................... $12,311,119,710
Fiscal year 1998 budget estimate......................\1\ 13,360,168,980
Amount of bill as reported to Senate..................\1\ 13,244,208,000
Bill as recommended to Senate compared to:
    1997 appropriations.................................    +933,088,290
    Budget estimate.....................................    -115,960,980

\1\ This amount excludes the U.S. contribution to the new arragements 
for borrowing at the IMF.


                            C O N T E N T S

                              ----------                              
                                                                   Page
    Items of special interest....................................     3
    Summary of total budget authority in the bill................     4
Title I--Export assistance:
    Export-Import Bank of the United States......................     5
    Overseas Private Investment Corporation......................     6
    Trade and Development Agency.................................     7
Title II--Bilateral economic assistance:
    Development assistance.......................................     8
    International disaster assistance............................    20
    Debt restructuring...........................................    20
    Micro and small enterprise development [MSED]................    20
    Urban and environmental credit program.......................    20
    Payment to the foreign service retirement and disability fund    21
    AID operating expenses.......................................    21
    Operating expenses of the Office of Inspector General........    21
    Other bilateral economic assistance..........................    21
    Independent Agencies:
        African Development Foundation...........................    31
        Inter-American Foundation................................    31
        Peace Corps..............................................    31
    Department of State:
        International narcotics control..........................    32
        Migration and refugee assistance.........................    34
        Emergency refugee and migration assistance fund..........    35
        Nonproliferation, antiterrorism, demining, and related 
          programs...............................................    35
Title III--Military assistance:
    International military education and training................    38
    Foreign military financing...................................    39
    Special defense acquisition fund.............................    40
    Peacekeeping operations......................................    41
Title IV--Multilateral economic assistance:
    International financial institutions summary.................    42
    International Bank for Reconstruction and Development........    42
    International Development Association........................    42
    Inter-American Development Bank..............................    43
    Asian Development Bank.......................................    44
    Asian Development Fund.......................................    44
    African Development Fund.....................................    44
    European Bank for Reconstruction and Development.............    45
    North American Development Bank..............................    45
    International Monetary Fund..................................    45
    International Organizations and Programs.....................    46
Title V--General provisions......................................    48
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..........................................    58
                       ITEMS OF SPECIAL INTEREST

    For the past 3 years, the Committee has urged the 
administration to renew American global leadership by 
increasing resources for the administration of international 
activities. Beginning a second term with a new national 
security team in place, President Clinton has actively promoted 
the importance of securing the funding which underpins our 
global role and responsibilities. As a result, the request and 
allocation of funds for foreign assistance, export promotion, 
and related programs have been increased for the first time in 
more than a decade. The Committee welcomes this development.
    At the same time, the Committee understands that this 
increase includes a responsibility to maximize prospects for 
achieving results by carefully reviewing the budget 
justification for each program and account. For the past 3 
years, the Committee has engaged in an exercise which has 
largely involved the review of ongoing programs resulting in 
shifts in funding emphasis rather than conducting a bottom up 
review. Limited resources have been moved by Congress to 
concentrate on emerging democracies in central and Eastern 
Europe and the New Independent States of the former Soviet 
Union which had the affect of reducing program support in other 
regions.
    The combination of an increase in funding and the state of 
progress in the emerging democracies has prompted the Committee 
to view this as a key transition year; an opportunity to 
initiate support for new priorities while either ending or 
establishing clear performance benchmarks in countries where 
U.S. support is not fulfilling political or economic 
expectations.
    U.S. domestic programs and agencies have engaged in an 
exhaustive fiscal overhaul. The time has come to put foreign 
assistance programs under the same scrutiny. Foreign assistance 
is not an entitlement. U.S. programs should serve U.S. 
interests in stability, democracy and the growth of free market 
economies by effectively delivering technical assistance, 
training, partnerships, exchanges, and humanitarian supplies 
and services.
    Significant changes in fiscal year 1998 program funding are 
evident in virtually every region. In the Middle East the 
Committee has substantially increased aid to Jordan in 
recognition of both urgent economic needs and the risks 
involved in King Hussein's commitment to the peace process. At 
the same time, after providing more than $42,000,000,000, 
political changes along with more than $1,000,000,000 still 
available in prior year funds have discouraged the Committee 
from earmarking resources for Egypt. This decision does not 
foreclose the administration from continuing support at an 
appropriate level.
    The Committee has also defined clear conditions which must 
be met before assistance can be provided in the Balkans, 
Cambodia, Ukraine, and Russia. The reasoning behind each of 
these decisions can be found in the appropriate sections of 
this report.

                                 SUMMARY TABLE: AMOUNTS IN NEW BUDGET AUTHORITY                                 
----------------------------------------------------------------------------------------------------------------
                                                                                                 Increase (+) or
                                                                                                  decrease (-), 
                           Item                              Budget estimate   Recommended by      Senate bill  
                                                                              Senate Committee    compared with 
                                                                                                 budget estimate
----------------------------------------------------------------------------------------------------------------
Export assistance.........................................      $513,614,000      $579,614,000      +$66,000,000
Economic assistance--Bilateral............................     7,590,855,000     7,700,648,020      +109,793,020
Military assistance.......................................     3,374,250,000     3,355,000,000       -19,250,000
Economic assistance--Multilateral.........................     5,409,449,980     5,129,945,980      -279,504,000
                                                           -----------------------------------------------------
      Total, fiscal year 1998.............................  \1\ 16,888,168,9                                    
                                                                          80    16,765,208,000      -122,960,980
----------------------------------------------------------------------------------------------------------------
\1\ This total includes the U.S. contribution to the new arrangements for borrowing at the International        
  Monetary Fund.                                                                                                

                                TITLE I

                           EXPORT ASSISTANCE

                Export-Import Bank of the United States

                         subsidy appropriation

Appropriations, 1997....................................    $726,000,000
Budget estimate, 1998...................................     632,000,000

Committee recommendation

                                                             700,000,000

                        administrative expenses

Appropriations, 1997....................................     $46,614,000
Budget estimate, 1998...................................      48,614,000

Committee recommendation

                                                              46,614,000

    The Committee recommends $700,000,000 to support direct 
loans, loan guarantees, insurance, and tied-aid grants at the 
Export-Import Bank of the United States. Given the reduction 
from fiscal year 1997 in the subsidy level, the Committee has 
not provided the requested increase for administrative expenses 
but has maintained last year's level of $46,614,000.
    The Committee is increasingly concerned by U.S. export 
promotion agencies' problems in accurately forecasting annual 
requirements for their financial services. Last year, due to 
unanticipated demand, the Overseas Private Investment 
Corporation made a last minute request to the conferees to 
aggregate the statutory ceilings on financing and insurance to 
prevent suspension of services.
    This year, the Committee is concerned that the 
administration has requested nearly $100,000,000 less in fiscal 
year 1998 subsidy authority for the Export-Import Bank than in 
fiscal year 1997. Given the steady increase in demand over the 
past 5 years for the Bank's services, particularly in higher 
risk markets, the Committee believes the request will not meet 
U.S. exporter needs.
    To address this problem, the Bank has recently announced 
plans to increase fees to exporters and blend loans with 
guarantees. Nonetheless, the Committee has been advised that 
the Bank may incur as much as a $400,000,000 shortfall in 
fiscal year 1997 which will be rolled over to fiscal year 1998. 
This will have an obvious and severe impact on the overall 
request of $632,000,000.
    To balance these pressures, the Committee has increased the 
level of subsidy support. In addition, the Committee 
anticipates the use of the tied-aid war chest which has 
accumulated over $300,000,000 in funds. However, the use of 
these funds must be notified to the Committee to assure the 
pace and amount of the drawdown does not damage the war chest's 
relevance as a counterweight to unfair trading practices by 
U.S. competitors.
    Given the problems at both the Export Import Bank and the 
Overseas Private Investment Corporation, the Committee directs 
the administration to provide 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 market. This assessment should include the Trade and 
Development Agency's programs.

                Overseas Private Investment Corporation

                         subsidy appropriation

Appropriations, 1997....................................     $72,000,000
Budget estimate, 1998...................................      60,000,000

Committee recommendation

                                                              60,000,000

                        administrative expenses

Appropriations, 1997....................................     $32,000,000
Budget estimate, 1998...................................      32,000,000

Committee recommendation

                                                              32,000,000

    The Committee recommends $60,000,000 for the subsidy cost 
of OPIC's direct and guaranteed loans. In addition, the 
Committee recommends $32,000,000 for administrative expenses. 
The Committee has provided this level of support taking note of 
the fact that an authorization for the extension of these 
programs is required and is proceeding simultaneously through 
the appropriate authorization committees.
    The Committee continues to support OPIC's self-sustaining 
capability. The Committee has included language requested by 
the administration allowing the Corporation to derive the costs 
of loans and guarantees from its noncredit account.
    The Committee points out that private sector investment 
should replace outdated models of state-led development. The 
public-private partnerships underwritten by OPIC, particularly 
the Investment Funds Program, are a step in the right 
direction, and have potential to leverage OPIC's resources with 
private sector financing and investment management expertise.
    The Committee recommends the focus of this program should 
be redirected toward sector specific funds rather than regional 
funds. By directly assisting specific U.S. industries to expand 
overseas, sector funds have a greater likelihood for creating 
U.S. jobs and long-term markets for U.S. technology and 
equipment than do regional funds. In particular, the Committee 
believes the Investment Funds Program should focus its efforts 
on U.S. industry sectors which are dominated by smaller, 
innovative businesses who are in need of assistance to 
facilitate their entrance in fast-growing emerging markets. 
Such sectors include specialized marine transportation, 
healthcare equipment and services, food processing, and light 
manufacturing.
    It is the Committee's intention that by focusing on sector 
specific funds, American export opportunities and small 
business participation will increase.

                      Trade and Development Agency

Appropriations, 1997....................................     $40,000,000
House allowance.........................................      43,000,000

Committee recommendation

                                                              43,000,000

    The Committee recommends full funding of the 
administration's request of $43,000,000 for the Trade and 
Development Agency [TDA] for fiscal year 1998.
                                TITLE II

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

                  AGENCY FOR INTERNATIONAL DEVELOPMENT

                          Bilateral Assistance

Appropriations, 1997....................................  $1,910,000,000
Budget estimate, 1998...................................   1,933,000,000

Committee recommendation

                                                           2,033,093,020

    The amounts listed in the above table for fiscal year 1997 
appropriations and the fiscal year 1998 administration request 
include funding appropriated or requested under development 
assistance, the Development Fund for Africa, 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 development, 
economic, and humanitarian requirements.

                         DEVELOPMENT ASSISTANCE

Appropriations, 1997....................................  $1,681,500,000
Budget estimate, 1998...................................   1,698,093,020

Committee recommendation

                                                           1,793,093,020

                      COMBATING INFECTIOUS DISEASE

    The Committee heard compelling testimony about the threat 
of infectious diseases, including drug resistant tuberculosis 
[TB], malaria, dengue fever, and the ebola virus, and believes 
a much more vigorous and coordinated global system is needed to 
prevent potentially catastrophic epidemics. There is an urgent 
need for strong U.S. leadership to significantly augment 
international surveillance and control mechanisms, and to 
strengthen the ability of developing countries, where deadly 
viruses often first gain a foothold, to protect and care for 
their people. The Committee is concerned that AID has not 
treated these issues with the urgency and gravity they 
deserve--funding for infectious diseases, other than to combat 
HIV/AIDS and immunize children, has steadily fallen since 1992. 
The Committee has, therefore, included bill language providing 
that not less than $30,000,000 be made available above the 
amount made available to combat infectious diseases in fiscal 
year 1997, to strengthen global surveillance and control of 
infectious diseases. Specifically, the Committee recommends 
that these funds be used to prevent the development and spread 
of antibiotic resistance; to combat TB, malaria, and other 
tropical diseases including through increased funding for the 
World Health Organization [WHO]/Tropical Disease Research 
Program; to reinvigorate the CDC's Field Epidemiology Training 
Program; and to support the WHO/Division of Emerging and other 
Communicable Diseases Surveillance and Control. AID is to 
consult closely with the Department of Health and Human 
Services, the Center for Disease Control and Prevention, and 
other relevant Federal agencies involved in international 
health, and the Appropriations Committees, prior to obligating 
these funds.

                 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. For 
several years, Congress has made clear its strong support for 
these programs with the expectation that adequate funds would 
be made available. However, when Congress recommended 
$15,000,000 be provided in fiscal year 1997 funds, AID advised 
the Committees on Appropriations it would meet the overall 
level by providing $9,600,000 in fiscal year 1997 funds and the 
balance in 1998 resources. Although that decision has been 
revised, the Committee has determined the earmark is essential 
to protecting these programs.
    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 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, 
        longstanding relationship with regional governments, 
        network of prominent alumni and distinction as a hub of 
        high level global expertise 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. In addition, the 
        organization continues to offer excellent quality 
        medical care to all individuals regardless of 
        political, religious, or ethnic orientation. All 
        foreign assistance funds awarded to Hadassah are spent 
        in the United States for the latest in American medical 
        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, enabling 
        FGS and Weizmann to maintain the level of excellence 
        required to attract and train future generations of 
        scientists from Israel and elsewhere, including many 
        from developing nations in Latin America, Asia, Africa, 
        and the Middle East.
  --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. Both centers 
        are recognized for training professionals in world 
        affairs who assume leadership positions in government, 
        business, and the nonprofit sector. The Committee 
        strongly supports an increase in funds for the Nanjing 
        center.

               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. The USTTI's Government/
industry collaboration results in cash and in-kind 
contributions of approximately $3,350,000 from industry with 
USAID grants providing travel and per diem costs for 
participants from the poorest nations.

                   population, development assistance

    The Committee reaffirms that stabilizing population growth 
is essential to reducing poverty, protecting the environment, 
promoting economic development, and improving the lives and 
health of millions of women, children, and families.
    In order to emphasize its unequivocal support for AID's 
family planning program and its goals, the Committee has 
reestablished a separate account for population assistance, 
funded at a level of $435,000,000. The Committee continues the 
longstanding prohibition against the use of any funds in the 
act for abortion or to lobby for or against abortion. It also 
stipulates that in determining eligibility for population 
assistance, nongovernmental and multilateral organizations 
shall not be subject to requirements more restrictive than 
those applicable to foreign governments for such assistance.

                                 CYPRUS

    The Committee has provided $15,000,000 for Cyprus from 
development assistance and economic support fund resources. The 
Committee welcomes the appointment of Presidential Special 
Envoy, Ambassador Richard Holbrooke and recognizes the 
expertise he brings to these long dormant talks. The Committee 
intends that these resources be made available to maximize 
leverage in this next round of negotiations and the Committee 
encourages the administration to seek additional support should 
the discussions produce a permanent settlement.

                                 BURMA

    The Committee has provided not less than $5,000,000 in 
funding to promote democracy in Burma. The Committee has made 
$3,000,000 available for democracy programs and $2,000,000 for 
humanitarian programs.
    The Committee has increased support to respond to the 
expanding crisis in Burma. The Committee believes this support 
is crucial to ensure that organizations can continue with 
nonviolent political opposition to the military dictatorship 
which illegally seized power in 1990. The increase is intended 
to assure full funding for programs administered by the 
National Endowment for Democracy which have strengthened 
information and media programs assuring uncensored, accurate, 
timely information is available inside Burma. The Endowment has 
also provided vital funding for professional training, 
political organization, and institution building. Grant 
recipients have included lawyers, labor activists, journalists, 
and community and student leaders committed to expanding 
fundamental civil, political, and economic rights in Burma.
    The Committee also recognizes the unique humanitarian 
crisis on the Thai-Burma border and has increased the 
availability of funds for medical supplies and services and 
support in civilian camps. To date, funding has been provided 
and should be expanded for feeding programs and basic health 
care. The Committee urges AID to consider activities which 
improve basic education for children in these camps.

                                CAMBODIA

    To date, the international community has invested more than 
$3,000,000,000 in peacekeeping and reconstruction support for 
Cambodia. In 1996, at the consultative group meeting in Tokyo, 
the international donor community renewed its commitment to 
Cambodia by pledging over $900,000,000 in aid. Nonetheless, 
Cambodia continues to lag behind most nations in virtually 
every category of development.
    Some problems are clearly war-related legacies. For 
example, AID has recommended $8,000,000 for fiscal year 1988 to 
reconstruct the education system. During the reign of the Khmer 
Rouge, virtually all educated Cambodians were either killed or 
left the country, creating a current critical shortage of 
teachers for primary and secondary education. The Committee 
supports education, health, rural development, and humanitarian 
initiatives which reverse the tragic consequences of Khmer 
Rouge policies.
    However, the Committee is deeply concerned by continued, 
credible reports that Cambodia is sliding backward and at 
severe risk of a renewed civil war. In prescient 1995 
congressional testimony, the President of the International 
Republican Institute pointed out the conditions Cambodia's 
beleaguered citizens must contend with. He said, ``Now things 
are going backwards * * *. Their most profound obstacle is not 
the Khmer Rouge or their dire economic conditions; it is most 
often their own political leaders and, equally as regularly, 
the local government and police.''
    Since 1995, credible charges of corruption and significant 
reversals of economic and political reform have increased. 
Freedom of expression is under attack. Journalists have been 
threatened, assassinated and jailed, their newspapers routinely 
fined and closed. In spite of these efforts to silence 
criticism, the press has offered compelling information on the 
emerging close working relationships between senior Cambodian 
People's Party leaders and major regional drug traffickers. Of 
equal concern to prospects for Cambodia's future is the 
significant escalation in political intimidation and violence 
culminating in a grenade attack on a crowd gathered to protest 
government corruption on Easter Sunday, 1997. Nineteen people 
were killed and more than 100 wounded, including an American.
    The Committee notes elections are to be held in Cambodia in 
1998. At this point, the government, led by the Cambodian 
People's Party Minister Hun Sen, has been unwilling to carry 
out a census to develop voter lists. Moreover, no independent 
electoral commission has been established nor have election 
regulations or laws been agreed to or passed. The Committee 
believes that if fundamental political and judicial reforms are 
not promoted and secured, Cambodia's future will be imperiled. 
While humanitarian initiatives may serve immediate life-
sustaining needs, the effort will have been wasted should 
Cambodia slide back to civil conflict. Given these concerns, 
the Committee has provided an increase in democracy building 
assistance and has linked the provision of economic growth 
assistance to concrete steps toward reforms. In addition, the 
Committee has required a report on the FBI investigation of the 
Easter Sunday grenade attack.
    The Committee also directs AID provide a report on 
democracy promotion initiatives with an emphasis on expanding 
the number of competent nongovernmental organizations involved 
in political and judicial training and reforms. The Committee 
has requested the report in response to information that AID 
has given preferential treatment to specific contractors 
causing an overall reduction in the level and quality of 
efforts underway.

                            Cambodia Logging

    In the past, the Committee has conditioned assistance to 
Thailand due to reports of Thai military collaboration with the 
Khmer Rouge in illegal logging in Cambodia. The Committee has 
not included that provision in this year's bill, in part due to 
efforts by the administration and Thai officials to deter this 
trade. However, the Committee has received reports that illegal 
timber continues to cross the Thai-Cambodia border, and expects 
the administration to continue to give this problem high 
priority. In addition, reports implicate Cambodian political 
and military officials at the highest levels in illegal 
logging, resulting in millions of dollars in illegal profits 
and the destruction of large areas of Cambodia's forests. The 
Committee urges the administration to use its influence with 
other donors to deter this practice which is fueling the 
corruption that permeates the Cambodian Government and 
military.

                               GUATEMALA

    The Committee reiterates its support for assistance to 
support implementation of the peace accords in Guatemala, 
especially to promote reconciliation, equitable economic 
development, and an independent judiciary. The Committee also 
believes that the United States should strongly support efforts 
to resolve some of the most egregious human rights cases in 
Guatemala, and has, therefore, included bill language providing 
that not less than $1,000,000 in fiscal year 1998 funds to 
support the Guatemalan Clarification Commission.

                    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.
    The Committee is aware that the AID administrator has 
indicated that AID plans to channel increasing amounts of funds 
through private voluntary organizations. The Committee directs 
AID to submit a report by March 1, 1998, describing the amount 
of funds it is channeling through private and voluntary 
organizations (as defined in title II of the bill, under the 
heading ``Private and Voluntary Organizations''). Using fiscal 
year 1995 as a baseline, the report is to provide data on 
disbursements across sectors for Development Assistance, SEED 
and NIS programs, and should also discuss AID's plans for 
increasing disbursements through PVO's in future years.

         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 also urges AID to make every effort to design 
and implement children's health initiatives in a manner aimed 
at ensuring that girls benefit from health care practices as 
much as boys. The Committee also urges AID, as a fundamental 
part of these efforts, to accelerate efforts to collect and 
analyze child survival field data separately for boys and 
girls. A recent study indicates that girls under the age of 5 
face a bias in the health care they receive. For example, girls 
who are ill are often not taken for health care as early as 
boys and may receive less or poorer quality food than boys.
    The Committee also believes that the well-being of the 
world's children and achieving the goal of broad based economic 
development depends on strengthening basic education programs. 
The Committee believes strongly that basic education programs 
should be sustained at not less than $100,000,000. The 
Committee defines basic education to include early childhood, 
primary and lower secondary education, and childhood education 
teacher training programs.
    Access to basic education programs reduces the incidence of 
abusive and exploitative child labor practices around the 
world. The Committee notes that the Asia Foundation program in 
the northwest frontier of Pakistan provides support for 
community based school programs on a primary level. The 
Foundation also plays an important role in ensuring that young 
girls have access to primary education in Pakistan, where the 
rate of female literacy is a meager 24 percent. The Committee 
strongly recommends that of funds provided for basic education 
and development assistance, not less than $1,500,000 be made 
available to expand these primary education projects and to 
provide technical assistance to teachers and school 
administrators in the Punjab region where exploitative and 
abusive labor practices are prevalent.

                 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.

                   PATRICK J. LEAHY WAR VICTIMS FUND

    The Committee reiterates its strong support for the Patrick 
J. Leahy War Victims Fund, a $5,000,000 annual appropriation to 
provide medical and related assistance to people who have 
suffered disabling war injuries. The fund has been used 
primarily to provide artificial limbs to victims of landmine 
explosions in countries recovering from civil strife and 
warfare. The Committee supports the expanded use of the fund in 
Angola, and in Laos where unexploded ordnance left over from 
the Vietnam war continues to claim innocent victims.

                                HIV/AIDS

    The Committee expects the administration to provide at 
least the current level of funding for both bilateral and 
multilateral HIV/AIDS prevention and control programs and 
recommends that funding through nongovernmental organizations 
operating at the community level be maximized. The Committee 
continues to support efforts by the United Nations to increase 
coordination and consolidation of AIDS activities through 
UNAIDS, the joint and cosponsored program at the World Health 
Organization, and expects funding for UNAIDS to be maintained 
at the current level. USAID is also urged to support the global 
initiatives agreed to at the 1994 AIDS summit, particularly 
those relating to women, NGO's, and microbicide development.

                           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 requests a 
report by December 1, 1997, on AID's plan to implement this 
program and its use of prior year funds. The Committee takes 
note of the important support of Rotary International in 
assuring the success of this effort.

               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 including:
  --The University of Hawaii has played a key role in Pacific 
        regional development. The Committee strongly encourages 
        the administration to support programs conducted by the 
        university including providing resources for the 
        International Center for Democracy to extend the 
        democratic experience to local level community leaders 
        and citizens. The Committee strongly supports the 
        center's effort to develop a United States-Russian 
        partnership organizing voter education for young 
        people. The Committee also encourages AID to 
        collaborate with the university as it develops a new 
        initiative to train health and human service 
        professionals.
  --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 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.

                         RURAL ELECTRIFICATION

    The Committee continues to strongly support the inclusion 
of rural electrification in AID's planning as a critical 
component in 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.

              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 
make at least $3,000,000 available for the core grant to the 
IFDC.

                    COOPERATIVE DEVELOPMENT PROJECTS

    The Committee strongly urges funding for the cooperative 
development research [CDR] and cooperative development projects 
[CDP] programs among the United States, Israel, and developing 
and newly democratic countries at last year's level. Israel has 
the unique advantage of having highly technical expertise, 
critical language skills, and recent experiences in development 
that are relevant to both developing countries and the emerging 
democracies of Eastern Europe and the former Soviet Union.

                    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 $135,000,000 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 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 notes its continued support of AID's Parks in 
Peril Program, a public-private partnership to promote 
biodiversity conservation in critically imperiled ecosystems in 
Latin America and the Caribbean. This program has provided 
crucial support to local nongovernmental organizations in the 
protection and management of parks and reserves at 28 sites in 
12 countries, helping to protect 18 million acres of land. 
Parks in Peril has also helped enhance the development of 
private enterprise and democracy in the region.

                         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.

         ADVANCED AIRBORNE HYPERSPECTRAL IMAGING SYSTEM [AAHIS]

    The Committee recognizes the potential applications of the 
advanced hyperspectral imaging system in reducing the long-term 
threat to the global environment by monitoring and improving 
the environmental and developmental practices of emerging 
nations. The Committee recommends that AID work with Science 
and Technology International to determine the capabilities of 
this technology in environmental baseline mapping and 
monitoring at a species level, digital change detection 
techniques for disaster mitigation, protected lands monitoring, 
wetlands and littoral zone management, and Government mandated 
cleanups.

                           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 maintaining funding for the 
Volunteers in Overseas Cooperative Assistance [VOCA] Farmer-to-
Farmer Program, especially in the former Soviet Union. This is 
a cost-effective way to transfer practical skills and know-how 
to farmers and agribusinesses. The Committee also continues to 
support two-way programs in which new agribusiness 
entrepreneurs and private farm leaders are brought to the 
United States for training.

                   AGRICULTURAL DEVELOPMENT PROJECTS

    The Committee continues to be concerned that AID is 
reducing support for agricultural development. Activities such 
as the Soils Management Collaborative Research Support Program 
[SM-CRSP] play a role in assuring the productive capacity of 
the tropical world to meet global foods demands. The Committee 
recommends that AID fund the SM-CRSP at a level sufficient to 
support approved projects within that program.

                 INTERNATIONAL EXECUTIVE SERVICE CORPS

    The Committee recognizes that the International Executive 
Service Corps [IESC] has provided 32 years of excellent 
volunteer expert services for the development of business 
enterprises, business support institutions, and new markets in 
developing countries. IESC promotes the long-term interests of 
the United States by creating new businesses, increasing 
employment and raising living standards. It has been an 
important vehicle for promoting technology transfer, economic 
growth, and sustainable development around the world, while 
also opening new areas of economic participation to American 
firms. The Committee, therefore, strongly urges that AID 
provide IESC annually with grant funds at a level comparable 
with fiscal year 1997 to ensure the continued availability of 
their services worldwide while enabling the organization to 
renew activities in Latin America and the Caribbean.

              OFFICE of PRIVATE and VOLUNTARY COOPERATION

    The Committee recommends increased funding for AID's Office 
of Private and Voluntary Cooperation in fiscal year 1998. 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.

                                 RWANDA

    The Committee once again raises its concerns 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 a multidonor approach to deal 
aggressively with this pressing problem.

                                COLOMBIA

    The Committee recommends that funds be provided to support 
the Colombian Attorney General's human rights unit, which 
investigates human rights abuses by guerrilla groups, 
paramilitary organizations, and state agents. Widely respected 
in Colombia, the prosecutors' efforts are severely hampered by 
a lack of resources. Funds are urgently needed to enhance their 
technical capacity and enable them to reach remote areas of the 
country.

                        Limitation on Assistance

    The Committee has included a provision, similar to one in 
last year's bill, which seeks to ensure that U.S. assistance 
does not go to units of foreign security forces whose members 
are implicated in human rights abuses, unless the government is 
taking steps to bring those individuals to justice. By taking 
steps, the Committee intends that there be an active, credible 
investigation underway and that the individuals involved face 
appropriate disciplinary action or impartial criminal 
prosecution in accordance with local law.

          International Foundation for Education and Self-Help

    The Committee continues to support the participation of 
nonprofit private voluntary organizations in implementing 
education and human resource development initiatives in sub-
Saharan Africa. The Committee particularly notes the efforts of 
the International Foundation for Education and Self-Help 
[IFESH] and its programs, which have provided 400 teachers and 
teacher trainers to 10 countries; trained 250 bankers from 12 
countries in credit, risk analysis, and debt recovery; and 
successfully completed a debt for development (debt swap) 
transaction in which $1,600,000 debt was leveraged into 
$6,000,000 of local currency.
    The Committee is aware of an external evaluation conducted 
in 1996 by the AMIDA Group, Inc., which recommends that AID 
should extend the original agreement, and continue its 
financial support of these three initiatives.
    The Committee also recognizes that development gains are 
often made slowly, and that it is important to capitalize on 
initial success. Accordingly, the Committee supports the 
funding of the IFESH program at a level of $15,000,000 over a 
5-year period.

                                CAMPFIRE

    The Committee notes that there has been considerable debate 
regarding the Communal Areas Management Program for Indigenous 
Resources [CAMPFIRE] Program in Zimbabwe. The Committee has 
heard the concerns raised by the Humane Society and Sierra Club 
and has balanced that criticism with support for CAMPFIRE 
expressed by the Africa Resources Trust, World Wildlife Fund, 
Africa Wildlife Foundation, Conservation International, 
National Wildlife Federation, and the World Conservation Union 
among others.
    The Committee wants to emphasize its support of programs 
which protect endangered species and promote sustainable 
development. CAMPFIRE has done its best to satisfy these two 
goals. The Committee urges AID in the strongest possible manner 
to continue to ensure the program's compliance with the 
convention on international trade in endangered species 
[CITES].

               Microenterprise in Gaza and the West Bank

    The Committee urges AID to provide $3,000,000 in fiscal 
year 1998 to expand the number of microenterprise loans 
available in the West Bank and Gaza. USAID's program of lending 
has focused primarily on small businesses in the West Bank and 
Gaza. Although the program has generated $10,000,000 in credit 
over the last 3 years, in fiscal year 1996 only about 
$1,500,000 was provided for loan capital and administration 
costs for lending to small microenterprises, including poverty 
lending (loans of $300 or less). In fiscal year 1997, 
$2,600,000 will be used to help banks willing to loan to 
microenterprises. The USAID microenterprise program is expected 
to result in 8,500 short-term loans, still only a tiny fraction 
of the apparent need. There are at least 150,000 
microenterprises and 350,000 unemployed in the West Bank and 
Gaza, many of whom would benefit from an expanded 
microfinancing program. The Committee believes an expanded 
microenterprise program would help to address the severe 
unemployment problem in the region and aid in the overall 
development of the private sector. The Committee believes that 
at least one-half of the microenterprise spending should be for 
poverty lending.

                   International Disaster Assistance

Appropriations, 1997....................................    $190,000,000
Budget estimate, 1998...................................     190,000,000

Committee recommendation

                                                             195,000,000

    The Committee has increased the disaster assistance account 
to $195,000,000. With no shortage of natural or man made 
disasters the increase is timely and necessary.

                           Debt Restructuring

Appropriations 1997.....................................     $27,000,000
Budget estimate 1998....................................      34,000,000

Committee recommendation

                                                              34,000,000

    The Committee has provided $34,000,0000 to meet the 
administration's debt restructuring requirements as a component 
of economic assistance. The Committee understands $12,000,000 
will be dedicated to relieving Jordan's final obligations due 
to the United States for agricultural and trade related debt.
    The administration has advised the Committee that the 
balance of debt restructuring will be used for Bolivia, Congo, 
Cote d'Ivoire, Ethiopia, Guinea, Guyana, Honduras, Mauritania, 
Nicaragua, and Zambia. The Committee expects to be informed if 
the administration changes the list of potential recipients or 
alters the justified amounts.

             Micro and Small Enterprise Development [MSED]

                         Subsidy Appropriation

Appropriations, 1997....................................      $1,500,000
Budget estimate, 1998...................................       1,500,000

Committee recommendation

                                                               1,500,000

                        Administrative Expenses

Appropriations, 1997....................................        $500,000
Budget estimate, 1998...................................         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, 1997....................................      $3,500,000
Budget estimate, 1998...................................       3,000,000

Committee recommendation

                                                               3,000,000

                           Operating Expenses

Appropriations, 1997....................................      $6,000,000
Budget estimate, 1998...................................       6,000,000

Committee recommendation

                                                               6,000,000

    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. The Committee continues to place special 
emphasis in initiatives in Eastern Europe and South Africa, 
consistent with the President's commitment.

     Payment to the Foreign Service Retirement and Disability Fund

Appropriations, 1997....................................     $43,826,000
Budget estimate, 1998...................................      44,208,000

Committee recommendation

                                                              44,208,000

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

                         AID Operating Expenses

Appropriations, 1997....................................    $470,750,000
Budget estimate, 1998...................................     473,000,000

Committee recommendation

                                                             473,000,000

    Consistent with the administration's request, the Committee 
recommends an appropriation of $473,000,000 for the ``Operating 
expenses'' account of the Agency for International Development 
for fiscal year 1998.

       Operating Expenses of the Office of the Inspector General

Appropriations, 1997....................................     $30,000,000
Budget estimate, 1998...................................      29,047,000

Committee recommendation

                                                              29,047,000

    The Committee has fully funded the administration's request 
and provided language so that funds may remain available until 
1999.

                  Other Bilateral Economic Assistance

                         Economic Support Fund

Appropriations, 1997....................................  $2,343,000,000
Budget estimate, 1998...................................   2,497,600,000

Committee recommendation

                                                           2,585,100,000

    The Committee has provided $2,585,100,000 for economic 
support funds. The Committee has not recommended funding for 
the Bank for the Economic Cooperation and Development in the 
Middle East and North Africa as requested by the 
administration. As the Committee warned last year, regional 
support for the Bank has eroded due to changing expectations 
about its function. The Committee is aware that some potential 
participants lost interest when it became clear the Bank 
intended to extend loans at market rather than concessional 
rates. Other donors have questioned the need for a facility 
which competes with the services and resources provided by 
commercial lending institutions.
    The Congress has been adamantly opposed to assuming new 
responsibility as the largest donor for a new multilateral 
facility when arrears at existing institutions continue to 
accumulate. At a time when the Committee finds it difficult to 
fulfill existing obligations, new commitments make little 
fiscal sense.

                          MIDDLE EAST EARMARKS

    Since 1979, the Committee has strongly supported extensive 
economic and military assistance to Egypt, providing 
$42,707,500,000. American assistance has been provided to Egypt 
with the understanding that it is based in great measure upon 
continued implementation of the Camp David accords and the 
Egyptian-Israeli peace treaty.
    However, the Committee is concerned by the pattern of 
events over the past 18 months which are neither conducive to 
peace nor fulfilling obligations to develop normal relations 
with Israel. At best, Egypt has chosen a course of a cold 
peace. At its lowest point, decisions by the Egyptian 
leadership appear to lead other Arab nations down a course 
hostile to regional stability and security.
    The Committee notes that Egypt declined to participate with 
all other concerned leaders in a Washington, DC, summit called 
last September by the President. Instead, a conference of Arab 
leaders was convened in Cairo during which a resolution was 
voted on to restore an economic boycott of Israel. Egypt led 
efforts to suspend the multilateral peace talks and undercut 
efforts to resolve issues related to the Israeli withdrawal 
from Hebron. The Committee is also concerned by the emerging 
political, economic, and military ties between Egypt and Libya, 
a terrorist state which directly threatens United States 
interests.
    In addition to troubling developments in the security 
arena, the Committee notes ongoing problems in economic and 
trade relations. Israeli companies are still prohibited from 
opening branch offices in Egypt and face restrictions in the 
routine conduct of business. The effect of these constraints is 
a stagnant trade relationship which only reached $82,000,000 in 
1996.
    The deterioration in the dynamics between the Camp David 
partners was illustrated by Foreign Minister Amr Moussa's 
recent remarks, ``Egypt will not serve an Israeli peace, but 
will oppose it.'' The Committee believes there is neither an 
Israeli nor an Egyptian peace to serve. There is no room in the 
Middle East for separated or fractured concepts of peace; 
rather, our common interests rely on building a foundation of 
understanding and a commitment to negotiate the terms for 
resolving problems. This commitment requires all parties to 
abandon threats and the use violence to achieve goals.
    In contrast, the Committee recognizes that King Hussein of 
Jordan has taken the initiative to advance both bilateral peace 
with Israel and regional stability. The Committee believes that 
the King's role in resolving contentious issues during 
negotiations between Israelis and Palestinians was key to 
achieving the Hebron Agreement and keeping the understandings 
associated with Oslo I and II on track. In addition to 
fulfilling a critical role in diplomatic negotiations, King 
Hussein has made a reduction in regional tensions a personal 
priority. When a Jordanian soldier opened fire on a group of 
Israeli schoolgirls in February, King Hussein immediately 
condemned the act and personally visited the children's 
families in their homes. Moreover, since the initial signing of 
the Jordanian-Israeli Peace Treaty in 1994, the two countries 
have signed 14 other bilateral agreements to normalize economic 
and cultural links.
    Given these trends, the Committee has continued with its 
previous practice of earmarking funds for Israel. In 
recognition of the important commitment Jordan has made to the 
peace process, the Committee has provided Jordan with 
$150,000,000 in economic support. The Committee has not 
earmarked funds for Egypt, but notes that the administration is 
not prohibited from continuing support should it decide that 
aid is appropriate and contributes to the peace process.

                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 her Arab neighbors. 
The MERC Program should remain fully funded at no less than 
$7,000,000 per year. 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 $1,000,000 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, which funds a wide range of 
creative initiatives by members of both peoples who are 
committed to living and working together. Examples of past 
projects include meetings of experts on medical and scientific 
research, joint publications, theater productions, and 
activities for children. These kinds of joint projects are a 
constructive use of a relatively small amount of funding at a 
time when the Middle East peace process is threatened by 
extremists on both sides.

                    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. During that same period, poverty has steadily 
increased as had the flood of illegal immigrants into the 
United States. The Committee believes that this hemisphere 
should be given higher priority in the allocation of economic 
support fund assistance.

                     INTERNATIONAL FUND FOR IRELAND

Appropriations, 1997....................................     $19,600,000
Budget estimate, 1998...................................................

Committee recommendation

                                             ...........................

    The Committee supports continued efforts to bring peace and 
stability to Northern Ireland. However, given the fact that the 
Fund has more than $40,000,000 available in past year resources 
which have not yet been obligated to any projects or 
activities, the Committee did not see the need for an 
additional allocation at this time.

          Assistance for Eastern Europe and the Baltic States

Appropriations, 1997....................................    $475,000,000
Budget estimate, 1998...................................     492,000,000

Committee recommendation

                                                             485,000,000

    The Committee recommends $485,000,000 for the Eastern 
Europe special assistance initiative. The Committee notes this 
is the last 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 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.
    When the reconstruction effort was launched, the Committee 
expressed strong reservations about assigning the World Bank 
the lead role in coordination of international assistance. The 
Bank had demonstrated weaknesses in the administration of a 
much smaller multilateral effort in Gaza and the West Bank. 
Unfortunately, the Committee's reservations have been realized, 
and the Bank has proven to be extremely slow in developing 
projects and disbursing urgently needed resources. The 
Committee urges the administration to renew its efforts to 
accelerate Bank programs to assure conditions on the ground are 
sufficiently stable to allow the orderly departure of United 
States and European forces.

                               WAR CRIMES

    The Committee is concerned that nearly 4 years after the 
United Nations created an international tribunal to prosecute 
war crimes in the former Yugoslavia, 66 out of 74 indicted war 
criminals remain at large. Many of those at large have been 
sighted living openly and freely in areas of the former 
Yugoslavia, including Croatia. Meanwhile, the United States is 
supporting bilateral and multilateral assistance to Croatia and 
contributing to a $5,100,000,000 international reconstruction 
program in Bosnia. The Committee believes that reconstruction 
without reconciliation will not be effective in the long run, 
and the apprehension of war criminals is essential for 
reconciliation to take place.
    The Committee has included a provision to bar most economic 
assistance to countries and constituent entities in Bosnia if 
its authorities fail to apprehend and transfer to the 
International Criminal Tribunal for the Former Yugoslavia all 
indicted war criminals in territory under their effective 
control. The provision also directs U.S. executive directors of 
international financial institutions to work against and vote 
in opposition to programs in these countries and entities. 
Humanitarian and democratization assistance and certain cross-
border infrastructure projects are exempt. The Committee 
believes that because so many private enterprises in the former 
Yugoslavia are directly or indirectly owned by, controlled by, 
or benefiting government officials, their agents, or the 
government itself, assistance to the private sector effectively 
benefits the government. As such, the Committee has barred 
assistance for both private and public projects.
    The provisions of the bill currently apply to Croatia, 
Serbia, and Republika Srpska. Many areas of the Federation of 
Bosnia and Herzegovina are under the effective control of 
Croatia, and many of the 13 indicted Croat war criminals are 
believed to travel freely between Croatia and the Croat-
controlled areas of the federation. The Committee bill holds 
Croatia responsible for the arrest and transfer to the tribunal 
of any indicted war criminals in these areas which it 
effectively controls. It also holds Serbia and Republika Srpska 
responsible for the 53 Serbs in territory under their effective 
control.



                           LEGAL INITIATIVES

    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. The Committee also notes that a strong commitment 
to legal and commercial infrastructures supports the ability of 
emerging markets to purchase U.S. products.
    To build on this success, the Committee urges AID to 
sustain funding for ABA projects at a level consistent with 
fiscal year 1997 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, 1997....................................    $625,000,000
Budget estimate, 1998...................................     900,000,000

Committee recommendation

                                                             800,000,000

    The Committee recommends $800,000,000 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.

                           INDEPENDENT MEDIA

    The Committee believes the sustainability of non-state-
controlled media is critically important, and strongly supports 
continued assistance for independent broadcast media in Russia 
and the New Independent States. Capacity building through 
training in commercial management and basic journalism, as well 
as access to quality licensed programming and development of an 
independent media infrastructure are all necessary elements to 
further enhancing economic and political reforms in the region.
    The Committee is encouraged by results achieved thus far, 
and recommends that AID provide the funding necessary to build 
on this success and expand programs to include the Russian far 
east.

                       Operation Support Freedom

    The Committee questions the administration's decision to 
eliminate the Operation Support Freedom [OSF] Program. OSF has 
had tremendous success as a public-private partnership focused 
on shipping humanitarian assistance to the NIS and Eastern 
Europe. Over the past 4 years, OSF enabled more than 750 
organizations across the United States to donate $960,000,000 
of humanitarian aid, at a cost of only $80,000,000, to 533 
cities in the former Soviet Union.
    The Committee understands that no cost savings have 
occurred as a result of the administration's decision to 
terminate OSF, and fewer goods have been shipped. Programs such 
as OSF provide the type of leveraged assistance necessary for 
success. Therefore, the Committee urges the administration to 
reinstate Operation Support Freedom in order to provide 
necessary cost-effective management.

            Research, Training, Exchanges, and Partnerships

    Training, exchanges, and partnerships between the United 
States and the nations of Eurasia and central Europe are 
essential to sustaining democracy and serve the interests of 
the United States. The Committee endorses full funding for the 
Russian, Eurasian, and East European Research and Training 
Program (title VIII) from the two appropriation accounts for 
the NIS and central Europe. The Committee also supports funding 
for other graduate fellowship and training projects in both 
regions such as the Central and Eastern European Graduate 
Fellowship Program. Student exchange programs, in general, are 
to be distributed in a balanced manner among high school, 
college, and graduate/postgraduate categories.

                          PHYSICIANS EXCHANGES

    The Committee is interested in efforts by the American 
College of Physicians to establish a partnership program 
dedicated to professional medical education for the benefit of 
health professionals in the republics of the former Soviet 
Union. This program would offer an opportunity for both 
academic and practicing American physicians, trained in the 
disciplines of internal medicine, to enhance the level of 
technical knowledge of physicians and other health care 
practitioners in the NIS in the contemporary understanding of 
the pathophysiology and mechanisms of disease, diagnosis, and 
effective medical management of disease. The Committee 
understands that the program would be heavily grounded in the 
concepts of continuing medical education and would rely upon 
the voluntary contribution of American physicians. The 
Committee requests AID to seriously consider establishing such 
a program, with a focus on the diseases which are the major 
contributors to excess morbidity and mortality and where 
effective medical intervention is possible.

                         Violence Against Women

    Last year, in response to the widespread problem of 
violence against women in Russia, the conferees recommended 
that up to $1,000,000 in fiscal year 1997 NIS funds be made 
available to support law enforcement training programs to 
address this crisis. The Committee is aware of and appreciates 
the administration's initial steps, and recommends that this 
effort be accelerated and expanded. The Committee requests the 
Department of State, in consultation with the Department of 
Justice, to report to the Committee by April 1, 1998, on the 
steps taken, results to date, and future plans in this effort.

                        Sustainable Agriculture

    The Committee is aware that AID plans 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 1997 conference 
report. The Committee believes that this is a sound investment 
which should be continued and expanded.

                           Pushchino project

    The Russian-United States technical, education, and 
economic development consortium have 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 increasingly being 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 between the 
two regions 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 [GCC] in Moscow, to establish 
the United States west coast-Russian far east ad hoc working 
group. The working group is charged with developing a 
bilaterally sanctioned 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 develop a lending mechanism 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 in the last 2 years. 
However, the administration has opposed any restrictions 
arguing that the conditions would undermine election prospects 
of reformers who offer the best hope for curtailing this 
dangerous program.
    There is little evidence the successful reelection of 
reformers has 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 withheld 50 percent of the $225,000,000 
made available to Ukraine until the President certifies that 
the Government of Ukraine has taken concrete steps to address 
concerns about corruption and the pace and scope of economic 
policy reforms. The Committee has exempted certain programs 
from this withholding which are key to U.S. security interests 
or advance necessary policy changes including support for 
nuclear safety, law enforcement, and strengthening democratic 
institutions.
    The Committee notes recent important developments which 
have enhanced stability in Ukraine. The passage of a 
constitution and the introduction of a new, stable currency 
have been positive steps. Nonetheless, the Committee has 
learned of a number of cases involving American businesses in 
which officials in the Government have been unwilling or unable 
to address allegations of corruption, harassment, or other 
actions which compromise, damage or impede legitimate 
commercial enterprise. For example, the Committee learned that 
an important effort to establish a private grain storage and 
distribution facility was crippled by the Ministry of 
Agriculture's decision to seize virtually all the 1996 harvest. 
This issue was viewed by members of the Committee as 
counterproductive to Ukraine's goals to strengthen the economy 
through the expansion of private agricultural enterprise. More 
immediately, the consequences in lost income and jobs for 
American companies was of utmost concern to the Committee.
    During a recent visit to the United States, Ukrainian 
President Kuchma was made aware of the importance of these 
issues as they relate to the provision of United States 
assistance. The Committee notes the President has now taken 
some initial steps to address these problems including removing 
the Prime Minister who had opposed reform efforts, issuing a 
decree defining new regulations to combat corruption, 
proceeding with the privatization of the State grain monopoly 
and more than 700 of the 840 State-owned grain storage 
facilities and finally, making the public commitment to resolve 
all outstanding cases involving U.S. businesses.
    The Committee believes these steps must be followed by 
enforcement of the anticorruption decree, and additional 
progress in the privatization of State-owned agricultural 
monopolies and State ownership of land. The Committee also 
believes Ukraine must move forward with judicial and legal 
reforms to protect private enterprise.

                             NUCLEAR SAFETY

    The Committee expects the administration to continue with 
crucial support to improve the safety of nuclear reactors in 
Ukraine. These activities safeguard public health, promote 
economic stability in the region and assure Ukraine has safe 
and reliable alternatives to both Russian energy supplies and 
the Chornobyl plant.
    Considerable investment has been made to improve the safety 
of nuclear powerplants in Ukraine through the introduction of 
simulators to train operators. Several projects are currently 
underway which provide training and technology transfers which 
will enhance Ukraine's energy self-sufficiency. The Committee 
recommends continuing funding for these programs to complete 
projects planned and underway and assure all reactors have 
adequate equipment and well-trained operators.

                            LAW ENFORCEMENT

    The Committee has earmarked funds to support effective 
training in law enforcement and judicial reforms in Ukraine. 
Given the serious problems in corruption and white collar 
crime, the Committee directs one-half of these funds to be 
transferred to U.S. agencies with the capabilities to provide 
immediate, in country, short-term training. The balance of the 
funds should by provided for long-term training and 
establishing a permanent professional national law enforcement 
center similar to the capabilities created in Hungary at the 
International Law Enforcement Agency. Funds should also be made 
available from the ``International narcotics and law 
enforcement'' account for these purposes.

                                ARMENIA

    The Committee has earmarked $95,000,000 for Armenia in 
recognition of progress that country has made on important 
economic and political reforms. As with Ukraine, the Committee 
believes energy self-sufficiency is essential to Armenia's full 
recovery and, therefore, encourages the coordinator to work 
closely with the governments in the region to support efforts 
to develop an oil and gas pipeline.

                                GEORGIA

    The Committee is impressed by both the serious commitment 
and dramatic results Georgia has achieved in the pursuit of 
economic and political reforms. Two years ago, the government 
and economy were under siege. Crime, corruption, inflation, and 
unemployment were compounded by a Russian-supported secession 
movement in Abkhazia. The Committee commends both President 
Shevardnadze and the Parliament for extraordinary efforts to 
steer Georgia through this difficult transition.
    The Committee has substantially expanded and earmarked 
funds for Georgia believing assistance at this critical 
juncture could make a significant difference in securing and 
making permanent key reforms, economic growth, and stability. 
Positioned as the anchor for broader Caspian basin economic 
development, Georgia's accomplishments should be built upon 
with the training and support anticipated in the earmarks for 
telecommunications, customs, border police and related export 
control initiatives, energy development, and legal and 
political reforms.

                               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. With little 
history or experience in this area, the Committee believes it 
is essential to offer meaningful support to all governments in 
the region to reform and strengthen election laws and related 
institutions and develop active and relevant political parties 
and organizations.
    The Committee has also included a provision exempting 
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. The Committee believes that these programs are 
urgently needed to assist American businesses to compete in a 
region of immense potential economic and strategic importance 
to the United States. The Committee requests the Secretary of 
State to coordinate the written assurances of the relevant 
executive branch departments to the Committee within 60 days 
after enactment of this provision into law.

                                MONGOLIA

    The Committee recognizes that the Mongolian Government is 
committed to infrastructure development and environmental 
protection. The Mongolian Government is exploring environmental 
protection in terms of economic value because it can increase 
tourism, particularly ecotourism. Further, the Committee 
recognizes that institutions such as the Academy of Natural 
Sciences in Philadelphia, PA, can provide technical advice on 
environmentally sound economic development through cooperative 
research programs with Mongolian scientists.

                          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, 1997....................................    $208,000,000
Budget estimate, 1998...................................     222,000,000

Committee recommendation

                                                             206,000,000

    The Committee recommends an appropriation of $206,000,000 
for the Peace Corps for fiscal year 1998 with an additional 
transfer of $14,000,000 to be made available from New 
Independent States [NIS] funds.
    In past years, because of severe budgetary constraints, the 
Committee strongly encouraged the Peace Corps to reevaluate 
volunteer levels in countries to reflect the shifts in U.S. 
priorities and interests in the post-cold-war environment. 
However, during consideration of the fiscal year 1998 request, 
the Peace Corps was unable to provide justification for many of 
the volunteer levels in particular regions and countries. In 
the Dominican Republic, for example, volunteer levels have 
remained high over the last 3 years, ranging from 127 to 161, 
where United States strategic interests are minimal. In 
contrast, the Peace Corps has placed less emphasis on the 
emerging new democracies in central and Eastern Europe, 
especially the Baltic region. Though there is an urgent need 
for economic and local government development programs in the 
region, Peace Corps volunteer levels have actually declined 
despite clear U.S. interests.
    The Committee notes that the Peace Corps has moved to 
consolidate some responsibilities and reduce some positions at 
Washington headquarters. Nonetheless, the Committee is 
concerned that there has been a simultaneous increase of 38 
positions, and $1,900,000 in salaries. The Committee has 
reduced the administration's request because of these concerns.

                          Department of State

                    international narcotics control

Appropriations, 1997....................................    $213,000,000
Budget estimate, 1998...................................     230,000,000

Committee recommendation

                                                             216,200,000

    The Committee recommends $216,200,000 for the International 
Narcotics and Law Enforcement Account [INL]. This represents a 
$3,200,000 increase from fiscal year 1997 levels, and reflects 
the Committee's concern about the continuing escalation of 
international crime and narcotics trafficking.
    The Committee believes it is unwise to appropriate full 
funding for the fiscal year 1998 INL request at this time. 
Despite billions of dollars and years of effort, the supply and 
availability of illegal drugs in the United States continues to 
rise, with U.S. agencies losing ground, due in large part to 
interagency rivalries and a lack of operational coordination. A 
recent General Accounting Office [GAO] report gave a thorough 
accounting of the lack of interagency coordination in U.S. 
counternarcotics efforts abroad.
    Over the past several months, the Committee has attempted 
to build a matrix, identifying the dollars spent along with the 
agencies and number of personnel assigned country by country to 
combat the flow of illegal drugs. During a recent Committee 
hearing, the Assistant Secretary for INL was asked to provide 
agency and spending data for Mexico. He was unable to provide 
the information either at the time or subsequently for 
inclusion in the hearing record.
    To date, no agency or office has been able to provide the 
Committee with this vital information on Mexico or any other 
country where the United States conducts counternarcotics 
activities. In fact, the Committee has been advised by the 
Office of the National Drug Control Policy, the President's 
center for coordination of American programs, that this 
information does not exist. It is difficult to understand how 
the United States can conduct an effective counternarcotics 
campaign if no Federal organization or employee knows the total 
number of agencies, costs, or missions in any given country. 
Under the circumstances, the Committee finds it virtually 
impossible to measure the cost effectiveness and success of 
America's war on drugs.
    Therefore, the Committee recommends that none of the funds 
appropriated be made available until the Department of State 
provides the Committees on Appropriations with this 
information.

                                BOLIVIA

    While the Committee supports the administration's request 
for counternarcotics efforts in Bolivia, it is concerned about 
the effectiveness of some of the components of this effort. In 
particular, the Committee notes the continued support of the 
blue devil task force, a Bolivian Navy river interdiction unit, 
which has consumed $20,000,000 in United States funds with few 
returns. In 56 operations in 1996, the blue devils enjoyed 
limited success. There are no indications that outcome-based 
performance standards are used to judge the effectiveness of 
the program or justify its cost. The Committee strongly urges 
the Department of State to seriously review the costs 
associated with the blue devil task force and recommends a 
general phaseout of the program unless significant eradication 
or interdiction goals are met.
    In addition, the Committee notes that currently there are 
22 United States owned UH-1 helicopters stationed in Bolivia 
for interdiction efforts, with total estimated costs at 
$3,400,000. According to an onsite staff evaluation by the 
Senate Caucus on International Narcotics Control, the 
helicopters have limited interdiction use, serving primarily 
logistics and transport functions. With Bolivian eradication 
efforts mostly focused on land operations, the Committee is 
concerned that costs associated with the upkeep of the 
helicopters are unjustified. The Committee recommends the 
Department of State evaluate the costs associated with airborne 
operations in Bolivia, and report back no later than March 1, 
1998, on whether funds are being properly utilized.

                          INTERNATIONAL CRIME

    The Committee is concerned about the increase in crime 
abroad in both the developed and lesser developed countries. 
The Committee is further concerned about the direct and 
indirect impact of international crime on the United States.
    The Committee notes that many agencies within the 
Departments of State, Justice, and Treasury are involved in 
investigations, training, and remediation of local and 
international crime problems. These agencies include: the State 
Department's Bureau of International Narcotics and Law 
Enforcement, and the Bureau of Latin American Affairs; the 
Agency for International Development; the Justice Department's 
Federal Bureau of Investigation, Drug Enforcement 
Administration, International Criminal Investigative Training 
Assistance Program, the Deputy Attorney General's Executive 
Office of National Security, the Criminal Division's Office of 
International Affairs, and the Office of Justice Program's, 
international criminal justice clearinghouse; the Treasury 
Department's Financial Crimes Enforcement Network; and the 
Office of National Drug Control Policy.
    In light of the growing nature and complexity of 
international crime and its impact on the United States, the 
Committee requests the Secretary of State to convene a new 
Secretaries' task force on international crime, in cooperation 
with the Attorney General, the Secretary of Treasury, and the 
Director of the Office of National Drug Control Policy, to 
fully coordinate Federal efforts to combat international crime. 
The Committee requests that the task force submit to Congress 
within 120 days of enactment of this legislation a report which 
addresses the following:
  --Establishment of a senior level working group comprising 
        members designated by the Secretaries and representing 
        involved agencies which will meet monthly to coordinate 
        Federal international crime efforts.
  --An analysis of the nature and extent of the international 
        crime problem and implications for future programs and 
        funding.
  --Recommendations on ways to improve the effectiveness of and 
        expand U.S. drug and law enforcement efforts.
  --Development of a Technical Assistance Program which will 
        make available to developed and lesser developed 
        countries U.S. expertise in policing, antigang 
        programs, and antidrug programs, on a fee-for-service 
        basis as appropriate.

                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, and they 
propose to continue selection and improvements of these 
biocontrol agents. This kind of research warrants continued 
financial support, and the Committee recommends at least the 
current level of funding for this program.

                    migration and refugee assistance

Appropriations, 1997....................................    $650,000,000
Budget estimate, 1998...................................     650,000,000

Committee recommendation

                                                             650,000,000

    The Committee recommends $650,000,000 for the Migration and 
Refugee Assistance Program, of which $80,000,000 is earmarked 
for refugees from the former Soviet Union and Eastern Europe 
and other refugees resettling in Israel.
    The Committee has continued its practice of earmarking 
funds to support the settlement in Israel of refugees from the 
former Soviet Union and other areas. However, the Committee 
notes the program began at a time when religious persecution in 
Communist States generated both high volume and large peaks in 
the flow of refugees causing severe pressures on the Israeli 
Government's capability to serve the needs of this population.
    The Committee notes that not only has the overall number of 
refugees declined, but also, the flow is proceeding at a 
relatively steady pace. Therefore, the Committee expects to 
reduce funds made available for this program over the next 2 
years with the goal of providing not more than $55,000,000 by 
the year 2000.

                             Child Refugees

    The Committee is concerned that the special needs of child 
refugees have not been adequately addressed and that sufficient 
resources have not been provided for programs focused on the 
education of children and the demobilization of child soldiers. 
Millions of children are stranded in refugee camps where they 
languish without access to education, are sexually exploited, 
are often last to receive food and medicine, and are forcibly 
recruited to serve as combatants. The Committee urges the 
administration to work closely with the United Nations High 
Commissioner for Refugees to provide additional resources for 
the specific development of programs to educate refugee 
children and address these other critical needs.

        Orderly Departure Program/Return of Vietnamese Refugees

    The Committee believes the United States should fulfill its 
commitment to review cases of Vietnamese refugees who are 
eligible for resettlement through the Orderly Departure 
Program/Return of Vietnamese Refugees, and to provide 
assistance to those who have repatriated to Vietnam. The 
Committee expects the Bureau for Population, Refugees, and 
Migration to continue to fund programs implemented by 
nongovernmental organizations to provide humanitarian 
assistance to Vietnamese repatriates through fiscal year 1998. 
Such funding will support programs which promote the economic 
self-sufficiency of individuals and families who have 
repatriated.

            emergency refugee and migration assistance fund

Appropriations, 1997....................................     $50,000,000
Budget estimate, 1998...................................      50,000,000

Committee recommendation

                                                              50,000,000

    The Committee recommends $50,000,000 for the emergency 
refugee and migration assistance fund.

    nonproliferation, antiterrorism, demining, and related programs

Appropriations, 1997....................................    $151,000,000
Budget estimate, 1998...................................     115,000,000

Committee recommendation

                                                             129,000,000

    The Committee recommends $129,000,000 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.

                                              CONSOLIDATED ACCOUNT                                              
----------------------------------------------------------------------------------------------------------------
                                                                                                     Committee  
                                                                   1997 enacted    1998 request   recommendation
----------------------------------------------------------------------------------------------------------------
Antiterrorism...................................................     $18,000,000     $19,000,000     $19,000,000
Nonproliferation and disarmament fund...........................      15,000,000      15,000,000      15,000,000
Demining........................................................      15,000,000      15,000,000      15,000,000
International Atomic Energy Agency..............................      36,000,000      36,000,000      36,000,000
Korean Peninsula Energy Development Organization................      25,000,000      30,000,000      44,000,000
                                                                 -----------------------------------------------
      Total.....................................................     109,000,000     115,000,000     129,000,000
----------------------------------------------------------------------------------------------------------------

    In addition to fully funding the request level in each of 
these accounts, the Committee has recommended providing 
$14,000,000 for debt owed by the Korean Peninsula Energy 
Development Organization [KEDO] if specific conditions are met. 
The Committee has been advised that accumulated debt has had an 
adverse impact on current oil purchasing costs for KEDO. The 
organization has used appropriated funds and contributions to 
pay off portions of back debt, an arrangement which has limited 
the availability of funds for current purchases. This approach 
has constrained planning and resulted in the purchase of oil on 
the spot market at higher costs. The Committee understands that 
if the back debt is cleared, the actual requirements for 
appropriated funds will be maintained at the current level for 
the duration of the 5-year commitment under the agreed 
framework.
    The Committee has made $14,000,000 available only if the 
Secretary of State certifies that funds sufficient to cover all 
outstanding debt, independent of this additional U.S. 
contribution, are made available to KEDO. This will require 
other donors making contributions to KEDO substantially in 
excess of the proposed U.S. supplement.

                    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 $15,000,000 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. Because of the extensive problem of 
unexploded ordnance in Laos, much of which is of American 
origin, the Committee recommends that additional funds be made 
available to strengthen management and implementation of 
programs of the National Unexploded Ordnance Awareness and 
Clearance Program [UXO-LAO].

                  PULSED FAST NEUTRON ANALYSIS [PFNA]

    The Committee supports the development of the pulsed fast 
neutron analysis [PFNA] cargo inspection system, a state-of-
the-art technology that is able to detect the presence of 
drugs, explosives, weapons of mass destruction and other 
contraband in sealed cargo containers and trucks.
    The Committee notes the Department of State should continue 
with support for PFNA and encourages the agency to follow 
through on congressional recommendations to support field 
testing and strengthen international cooperation on testing and 
evaluation. Further, the Committee encourages the Department to 
work with other U.S. Government agencies to establish joint 
funding strategies and deployment options for this important 
technology.

                               sri lanka

    The Committee urges the administration to expand its 
support for antiterrorism programs in Sri Lanka, where Tamil 
guerrillas have mercilessly targeted innocent civilians. The 
Committee is also 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, 1997....................................     $43,475,000
Budget estimate, 1998...................................      50,000,000

Committee recommendation

                                                              47,000,000

    The Committee recommends $47,000,000 for the International 
Military Education and Training [IMET] Program. During 
consideration of the fiscal year 1998 request, the Defense 
Security Assistance Agency was unable to provide a coherent 
analysis or justification of the requirements for an increase 
in funding. For each of the past years when the Congress has 
provided increases over prior year levels, DSAA appears to have 
simply apportioned on a strict percentage basis the available 
increase in resources. This reflects a lack of consideration of 
shifts in U.S. security priorities or interests in the post-
cold-war environment.
    The Committee believes IMET funding is a crucial tool 
available to strengthen U.S. alliances and relationships. 
Moreover, IMET programs offer the opportunity for the United 
States to play a valuable role in building civilian-military 
relations in emerging democracies thereby having a direct 
impact on a nation's stability and political survival.
    The Committee has reduced the administration's request 
because of the failure to identify clear priorities and connect 
funding levels with security interests. The Committee directs 
DSAA to prepare a report evaluating 5 year trends and 
expectations for IMET recipients. This report shall include a 
separate section prepared in consultation with the regional 
commanders in chief indicating how IMET programs serve U.S. 
security and political interests in their theater of operation.

                                THAILAND

    During the past year the Committee has become deeply 
concerned by a pattern of conduct by Thai military officials 
regarding both Burmese refugees and democratic activists in 
exile in Thailand. During the most recent Burmese military 
offensive against the Karen ethnic group, the Thai Army 
commander in chief traveled to a border camp to consult with 
senior SLORC officials. The following day, the Thai military 
began the evacuation of camps, pushing women and children back 
across the border into active military conflict.
    The Committee recognizes the Government of Thailand has a 
long history of providing safe haven and support for victims of 
conflict in Cambodia and the region. This history makes the 
contrast of recent actions all the more troubling, particularly 
when considered in conjunction with accounts of the aggressive 
harassment of democratic activists who have fled political 
persecution in Burma.
    Although it is always the goal of the IMET program to 
strengthen humanitarian values and practices of military 
recipients, the programs' success presumes a commitment on 
behalf of the military's leadership to its purpose.
    Given the problem of the forcible repatriation, putting the 
lives of women and children at risk, along with the apparent 
involvement of the Thai Army commander in chief in the 
decision, the Committee requests a report by February 1, 1998, 
evaluating the Thai military's record in the preceding 9 months 
enforcing the Thai Government's official policy of affording 
all Burmese refugees safe haven.

                       Foreign Military Financing

                          total program level

Appropriations, 1997....................................  $3,284,000,000
Budget estimate, 1998...................................   3,340,250,000

Committee recommendation

                                                           3,339,000,000

                              grant level

Appropriations, 1997....................................  $3,224,000,000
Budget estimate, 1998...................................   3,274,250,000

Committee recommendation

                                                           3,265,000,000

                (limitation on administrative expenses)

Appropriations, 1997....................................     $23,250,000
Budget estimate, 1998...................................      23,250,000

Committee recommendation

                                                              23,250,000

                  subsidy appropriations--direct loans

Appropriations, 1997....................................     $60,000,000
Budget estimate, 1998...................................      66,000,000

Committee recommendation

                                                              74,000,000

                        (estimated loan program)

Appropriations, 1997....................................    $540,000,000
Budget estimate, 1998...................................     699,500,000

Committee recommendation

                                                             759,500,000

                    BALTIC STATES and NATO EXPANSION

    The Committee has provided strong support in the past for 
initiatives to provide equipment and resources to enhance the 
military interoperability of NATO members and nations involved 
in the Partnership for Peace. The administration has stated 
that the first round of NATO expansion in July will not be the 
last, and the Committee strongly agrees that NATO's doors 
should remain open to all new emerging democracies in central 
and Eastern Europe.
    Consistent with last year, the Committee believes it is 
essential that proper resources are provided to countries which 
have demonstrated a commitment to take on the burdens and 
responsibilities associated with NATO. Though the Baltic 
nations are not likely to be invited to join NATO at the Madrid 
summit later this year, the Committee believes that Lithuania, 
Latvia, and Estonia are strong potential candidates and 
supports programs aimed at improving their military 
capabilities and enhancing their interoperability and 
standardization with NATO. Therefore, the Committee has 
provided a total of $20,000,000 in grants and loans to 
accomplish this goal. The United States has a vital interest in 
extending the stabilizing influence of NATO to include these 
new democracies.
    Of this amount, the Committee recommends that $12,000,000 
in FMF funds be made available to facilitate the completion of 
the regional airspace initiative [RAI]. First launched in 1994, 
the RAI is designed to develop a regionally shared civil/
military airspace control system for central Europe that is 
fully compatible and interoperable with the current West 
European civilian airspace system. Phase 1 of the RAI, 
completed in September 1996 consisted of an architectural study 
of partner requirements to build and operate such a system. The 
FMF funds specified in this section will promote the 
implementation of the study results. This includes construction 
of a regional air sovereignty command center [RASCC], to be 
located in Lithuania, and the purchase of radar and 
communication equipment, and related training. Both the 
administration and representatives from the Baltic States 
recognize the importance of completing this facility, and 
consider it one of their highest priorities. Since current and 
projected Baltic FMF accounts will not be able to fully support 
this effort, it is the Committee's intention that funds be 
provided to adequately accommodate the current needs of the 
RAI.

                           GREECE and TURKEY

    The Committee maintains the balance of military assistance 
to Greece and Turkey at a ratio of 7 to 10.

                               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 ordnance that maim and kill innocent 
people around the world.

                   egypt 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. The Committee recommends they purchase a 
system manufactured by a U.S. company, one which is compatible 
with systems used by the U.S. Army.

                    Special Defense Acquisition Fund

    The Committee recommends no new obligational authority for 
the special defense acquisition fund [SDAF] for fiscal year 
1998. 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 $106,000,000 in fiscal year 1998.

                        Peacekeeping Operations

Appropriations, 1997....................................     $65,000,000
Budget estimate, 1998...................................      90,000,000

Committee recommendation

                                                              75,000,000

    The Committee recommends an appropriation of $75,000,000, 
an increase of $10,000,000 over the fiscal year 1997 level. The 
Committee has reduced the account $15,000,000 and directs that 
no funds be made available for the Africa Crisis Response 
Force.
    Although the Committee recognizes the need to establish an 
African based multinational military unit capable of crisis 
prevention and management, monitoring peace settlements and 
providing support to meet emergency humanitarian needs, 
information provided to date from the administration does not 
suggest the need for yet another U.S. led initiative. The 
United States has been one of the largest financial supporters 
of the security training and conflict management activities of 
the Organization of African Unity and has provided substantial 
support to the Economic Community of West African States 
Peacekeeping Force [ECOMOG] which engages in regional 
initiatives. More importantly, the Committee has been advised 
by the administration that the French are currently engaged in 
training and equipping a regional military force and the United 
Kingdom is supporting a similar program in conjunction with the 
Southern African Development Community. [SADC]. The SADC 
initiative closely parallels the planned program described by 
the Defense and State Departments.
    The administration has explained that the U.S. program will 
enjoy United Nations endorsement which is represented as an 
important tool to leverage African participation. The Committee 
is concerned that the effect of this endorsement will be an 
assessment for American participation.
    At a time when the payment of U.S. arrears to the United 
Nations is being negotiated, the Committee is reluctant to 
endorse or support a potential new commitment. The Committee 
requests a report by March 1, 1998, on the activities currently 
being conducted by United States allies to build a 
multinational force in Africa, including an assessment of the 
potential support the United States could offer these 
initiatives in lieu of a unilateral American progam.
                                TITLE IV

                    MULTILATERAL ECONOMIC ASSISTANCE

              International Financial Institutions Summary

Appropriations, 1997....................................    $985,904,710
Budget estimate, 1998...................................   5,044,449,980

Committee recommendation

                                                           4,852,945,980

    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's Global 
Environment Facility, the International Development 
Association, the Inter-American Development Bank and its Fund 
for Special Operations, the Enterprise for Americas 
Multilateral Investment Fund, the Asian Development Bank and 
Fund, the European Bank for Reconstruction and Development, the 
North American Development Bank, and the new arrangements to 
borrow for the International Monetary Fund.

         International Bank for Reconstruction and Development

                      global environment facility

Appropriations, 1997....................................     $35,000,000
Budget estimate, 1998...................................     100,000,000

Committee recommendation

                                                              60,000,000

    The Committee recommends $60,000,000 for the global 
environment facility [GEF].

                 International Development Association

Appropriations, 1997....................................    $700,000,000
Budget estimate, 1998...................................   1,034,504,000

Committee recommendation

                                                             950,000,000

    The Committee recommends an appropriation of $950,000,000 
for IDA-10 and IDA-11 contributions. Of this amount, 
$800,000,000 is available for the IDA-11 replenishment and 
$150,000,000 for IDA-10.
    The Committee has restricted the availability of funds for 
IDA until the Secretary of the Treasury certifies that 
procurement restrictions imposed by the interim trust fund 
[ITF] have been lifted. Last year, the Committee provided 
$700,000,000 for payments to IDA. To express opposition to what 
they viewed as a United States funding shortfall, some IDA 
donors established a special account of $3,300,000,000 known as 
the interim trust fund. Only companies from ITF donor nations 
were eligible for procurement contracts. In the context of 
negotiating the IDA-11 replenishment, the administration 
accepted this arrangement.
    Historically the United States has been the single largest 
donor to IDA, yet at no point has sought to offer any advantage 
to American corporations by establishing procurement ratios 
proportional to contribution. Thus, the Committee strongly 
objected to the ITF. As a result, the Congress withheld IDA 
funds until a report was provided by the Secretary of the 
Treasury in March 1997 on administration efforts to dismantle 
the fund and open up procurement. While the Committee notes 
that the administration has expended effort to correct this 
problem, it still has not been resolved.
    There remains roughly $1,000,000,000 in the fund which U.S. 
companies could potentially bid on. The Committee urges the 
Department of the Treasury to redouble their efforts to resolve 
the situation.
    The Committee also is concerned that American companies do 
not regularly receive adequate information about potential 
procurement opportunities stemming from World Bank and IDA 
loans, and believes that this information should be provided on 
a regular and timely basis. In addition, the Committee is 
concerned that local communities are often not consulted in 
advance and have little, if any, meaningful input into loan 
decisions that affect them. The Committee believes such 
consultation is intrinsic to the success and sustainability of 
IFI projects, and should be conducted as a matter of routine 
practice. The Committee has, therefore, included bill language 
requiring the U.S. Executive Directors to these institutions to 
strongly promote these reforms.

                   agriculture and rural development

    The Committee supports the World Bank's efforts to develop 
a new role for agriculture and the rural sector in its lending 
programs and projects. Traditionally, agriculture has been an 
important focus for all of the multilateral development banks, 
but in recent years most of the MDB's have shifted their 
emphasis away from this sector. The Committee urges the 
Treasury Department to exercise its leadership by promoting 
agriculture and rural development projects as a high priority 
once again in MDB lending programs. In this regard, the 
Committee notes the work of the Commission on International, 
Trade, Development, and Cooperation which also strongly 
recommended in its February 1997 report that increased emphasis 
in the agriculture sector was needed.

                    Inter-American Development Bank

                     Interregional paid-in capital

Appropriations, 1997....................................     $25,610,667
Budget estimate, 1998...................................      25,610,667

Committee recommendation

                                                              25,610,667

                     limitation on callable capital

Appropriations, 1997....................................  $1,503,718,910
Budget estimate, 1998...................................   1,503,718,910

Committee recommendation

                                                           1,503,718,910

                      Fund for Special Operations

Appropriations, 1997....................................     $10,000,000
Budget estimate, 1998...................................      20,835,000

Committee recommendation

                                                              20,835,000

        Enterprise for the Americas Multilateral Investment Fund

Appropriations, 1997....................................     $27,500,000
Budget estimate, 1998...................................      30,000,000

Committee recommendation

                                                              30,000,000

    The Committee has fully funded the administration's request 
for the MIF to assure adequate support to continue crucial tax, 
privatization, and economic policy reforms needed to strengthen 
the private investment climate. These funds are available for 
contributions previously due.

                         Asian Development Bank

                            PAID-IN CAPITAL

Appropriations, 1997....................................     $13,221,596
Budget estimate, 1998...................................      13,221,596

Committee recommendation

                                                              13,221,596

                     LIMITATION ON CALLABLE CAPITAL

Appropriations, 1997....................................    $647,858,204
Budget estimate, 1998...................................     647,858,204

Committee recommendation

                                                             647,858,204

    Given the enormous importance the Committee attaches to 
strengthening trade and investment in the rapidly expanding 
Asian market, the Committee has fully funded the Asian 
Development Bank.

                         Asian Development Fund

Appropriations, 1997....................................    $100,000,000
Budget estimate, 1998...................................     150,000,000

Committee recommendation

                                                             140,000,000

    The Committee recommends an appropriation of $140,000,000 
for the soft-loan window of the Asian Development Bank, known 
as the Asian Development Fund [ADF] to cover payments to both 
the fifth and sixth replenishment request. Of these funds, 
$40,000,000 are available for contributions previously due.

                        Africa Development Fund

Appropriations, 1997....................................................
Budget estimate, 1998...................................     $50,000,000

Committee recommendation

                                             ...........................

    Given the enormous commitment of resources derived from IDA 
for Africa, the Committee has not funded the additional 
concessional lending of the Africa Development Fund.

            European Bank for Reconstruction and Development

                            paid-in capital

Appropriations, 1997....................................     $11,916,447
Budget estimate, 1998...................................      35,778,717

Committee recommendation

                                                              35,778,717

                     limitation on callable capital

Appropriations, 1997....................................     $27,805,043
Budget estimate, 1998...................................     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.

                    North American Development Bank

                            paid-in capital

Appropriations, 1997....................................     $56,000,000
Budget estimate, 1998...................................      56,500,000

Committee recommendation

                                                              56,500,000

                     limitation on callable capital

Appropriations, 1997....................................    $318,750,000
Budget estimate, 1998...................................     318,750,000

Committee recommendation

                                                             318,750,000

    The North American Development Bank [NADBank] and the 
Border Environment Cooperation Commission [BECC] were created 
under NAFTA to respond to concerns about the border environment 
by identifying and funding water, sewage, and solid waste 
projects. The Committee is concerned that NADBank and BECC have 
not moved quickly enough to certify and fund appropriate 
projects. NADBank and BECC should work to streamline their 
respective approval processes, eliminate unnecessary 
procedures, and expeditiously provide critical funds to border 
communities in need.

                      International Monetary Fund

                      Enhanced Structural Facility

Appropriations, 1997....................................................
Budget estimate, 1998...................................      $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.
    The Committee is aware that the IMF has commissioned a team 
of independent external experts to evaluate the enhanced 
structural adjustment facility. The Committee welcomes this 
step, and looks forward to receiving a copy of the evaluation 
report at the earliest possible date. The Committee is 
especially interested in the extent to which (1) social and 
economic concerns are broadly addressed in adjustment programs, 
and (2) local people are meaningfully consulted on IMF 
policies.

                     New Arrangements for Borrowing

Appropriations, 1997....................................................
Budget estimate, 1998...................................  $3,521,000,000

Committee recommendation

                                                           3,521,000,000

    The Committee has supported the request for the new 
arrangements for borrowing [NAB] with the understanding that 
any transfer of dollars to the IMF under the NAB will not be 
scored as an outlay and will not increase the deficit. 
Consistent with past agreements, the United States will receive 
in exchange another monetary asset in the form of a liquid, 
interest bearing claim on the IMF. This claim is backed by the 
IMF's gold reserves.
    The Committee has supported this request as a crisis 
prevention measure to maintain stability in international 
financial markets. The Committee understands that the NAB will 
only be activated should supplementary resources be required to 
meet a debt or financial emergency with global implications. 
While the U.S. share of the NAB will decrease relative to the 
existing general arrangements to borrow, U.S. leverage over 
activation decisions will be enhanced by changes in voting 
procedures.

                International Organizations and Programs

Appropriations, 1997....................................    $269,950,000
Budget estimate, 1998...................................     365,000,000

Committee recommendation

                                                             277,000,000

    The Committee has provided $277,000,000 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.
    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. This is a $2,000,000 increase above last 
year's level.
    The Committee recommends that $85,000,000 be made available 
to the United Nations Development Program [UNDP], an increase 
of $8,650,000 above the fiscal year 1997 level, but $15,000,000 
below the request. The Committee notes that while a recent GAO 
report credited UNDP with pursuing programs that further U.S. 
foreign policy goals, the Committee continues to receive mixed 
reports about UNDP's effectiveness in the field.
    Like last year, the Committee recommends $25,000,000 for 
the United Nations Fund for Population Activities. Also like 
last year, the Committee recognizes the important role the 
international environmental organizations and programs play in 
protecting the health and environment of the American people, 
and recommends that funding for these organizations and 
programs be maintained.

               UNITED NATIONS PROPOSALS CONCERNING UNICEF

    The Committee recognizes the unique public/private funding 
partnership which has enabled the United Nations Children's 
Fund [UNICEF] to operate for over 50 years for the survival, 
protection, and development of vulnerable children around the 
world. The Committee expects $100,000,000 to be made available 
to UNICEF for these important activities.
    The Committee notes with grave concern that proposals are 
being developed within the United Nations that would merge and 
consolidate UNICEF with other entities like UNFPA and UNDP into 
a single U.N. development group. Such proposals would destroy 
the special identity and singular mandate of UNICEF to serve 
the world's children, and jeopardize UNICEF's ability to raise 
globally $300,000,000 each year from the private sector. While 
the Committee clearly favors reform of the U.N. system, it is 
opposed to any plan that would have the effect of diluting or 
eliminating UNICEF, directly or indirectly. The treatment of 
the status of UNICEF will be a key indicator for the 
Committee's evaluation of any overall U.N. reform proposals. 
The Committee recommends that the Secretary of State 
immediately convey the Committee's concern in this regard to 
the United Nations Secretary-General.

               united nations fund for victims of torture

    The United Nations Voluntary Fund for Victims of Torture 
provides modest financial grants to treatment programs for 
victims of torture. These programs provide medical and 
psychological services to victims both in countries of refuge 
and in the victim's country of origin. Programs exist in 
California, Illinois, Minnesota, and New York. Most U.S. 
programs receive or are applying for assistance from the 
voluntary fund. The Committee recommends that the 
administration maintain the U.S. contribution to the voluntary 
fund in fiscal year 1998 at its current level. The Committee 
urges the Department of State to encourage other governments to 
increase their own contributions.
                                TITLE V

                           GENERAL PROVISIONS

    Sec. 501.--Restrictions on enterprise funds.
    Sec. 502.--Restricts transfer of development assistance.
    Sec. 503.--Limits AID 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.--Provides 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 from production or extraction 
of any commodity or mineral for export that would cause 
substantial injury to U.S. producers of similar commodities.
    Sec. 515.--Requires notification from administration of 
spending changes.
    Sec. 516.--Restricts funds for international organizations 
and programs.
    Sec. 517.--Policy regarding economic support fund 
assistance for Israel.
    Sec. 518.--Prohibits funding for abortions and involuntary 
sterilization.
    Sec. 519.--Limits funds for foreign organizations that 
perform abortion.
    Sec. 520.--Requires report relative to Arms Export Control 
Act.
    Sec. 521.--Requires special notification for funding of 
programs in Colombia, Guatemala, Dominican Republic, Haiti, 
Liberia, Pakistan, Peru, Serbia, Sudan, or Democratic Republic 
of the Congo.
    Sec. 522.--Definition of program, project and activity.
    Sec. 523.--Provides funds for 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.--Replaces ``1997'' with ``1998'' in relevant 
sections.
    Sec. 526.--Requires notification of planned activity 
involving 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.--Limits funding for compensation for U.S. 
executive directors to international financial institutions.
    Sec. 535.--Requires compliance with U.N. sanctions against 
Iraq.
    Sec. 536.--Allows competitive pricing for sales of defense 
articles.
    Sec. 537.--Requires report if Peace Corps conducts 
activities in countries where assistance is prohibited.
    Sec. 538.--Restricts funding for programs which have 
adverse impact on U.S. jobs.
    Sec. 539.--Places restrictions on the termination of 
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.--Prohibits payments to the United Nations.
    Sec. 548.--Requires expenditure of consulting services be 
matter of public record.
    Sec. 549.--Requires private voluntary organizations to be 
able to provide documents necessary to the AID auditing 
requirements.
    Sec. 550.--Prohibits assistance to foreign governments that 
export lethal military equipment to countries supporting 
international terrorism.
    Sec. 551.--Withholds assistance for parking fines owed by 
foreign countries.
    Sec. 552.--Limits assistance for the PLO.
    Sec. 553.--Provides export financing transfer authorities.
    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.--Requires purchase of American-made products.
    Sec. 559.--Provides for special debt relief to the poorest.
    Sec. 560.--Provisions relative to loans eligible for sale, 
reduction, or cancellation.
    Sec. 561.--Provides for assistance to Liberia.
    Sec. 562.--Requires Presidential certification that the 
Guatemalan military is cooperating to resolve human rights 
abuses.
    Sec. 563.--Imposes sanctions against countries harboring 
war criminals.
    Sec. 564.--Limits assistance for Haiti.
    Sec. 565.--Requires report detailing recipient nation's 
support for the United States at the United Nations.
    Sec. 566.--Burma report.
    Sec. 567.--Allows Haiti police and Coast Guard to purchase 
defense articles and services.
    Sec. 568.--International financial institution policies.
    Sec. 569.--Limitations on assistance to security forces.
    Sec. 570.--Limitations on international financial 
institution support for Cambodia.
    Sec. 571.--Limitations on transfer of military equipment to 
East Timor.
    Sec. 572.--Transparency of budgets.
    Sec. 573.--Limitations on aid to countries offering 
sanctuary to war criminals.
  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 1998 which are 
either over Senate-passed authorization or lack authorization 
altogether are as follows:

Export-Import Bank......................................    $700,000,000
Development assistance, including Inter-American 
    Foundation, African Development Foundation..........   1,793,093,020
International disaster assistance.......................     195,000,000
Debt restructuring......................................      34,000,000
Micro and Small Enterprise Development Program..........       1,500,000
Urban and Environmental Credit Program..................       3,000,000
AID operating expenses..................................     473,000,000
AID operating expenses, Office of Inspector General.....      29,047,000
Economic support fund...................................   2,585,100,000
Assistance for Eastern Europe and the Baltics...........     485,000,000
Assistance for the New Independent States of the former 
    Soviet Union........................................     800,000,000
Peace Corps.............................................     206,000,000
International narcotics control.........................     216,200,000
Migration and refugee assistance........................     650,000,000
Nonproliferation, antiterrorism, demining, and related 
    programs............................................     129,000,000
International military education and training...........      47,000,000
Foreign Military Financing Program......................   3,339,000,000
Peacekeeping operations.................................      75,000,000
Global environment facility.............................      60,000,000
International Development Association...................     950,000,000
International organizations and programs................     277,000,000
Trade and Development Agency............................      43,000,000
Inter-American Development Bank.........................      25,610,667
    Fund for special operations.........................      20,835,000
    Contribution to the Enterprise for the Americas 
      Multilateral Investment Fund......................      30,000,000
Asian Development Fund..................................     140,000,000
European Bank for Reconstruction and Development........      35,778,717
Overseas Private Investment Corporation.................      60,000,000

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

    Pursuant to paragraph 7(c) of rule XXVI, the accompanying 
bill was ordered reported from the Committee, subject to 
amendment and subject to appropriate scoring, by recorded vote 
of 27-1, a quorum being present.
        Yeas                          Nays
Chairman Stevens                    Mr. Craig
Mr. Cochran
Mr. Specter
Mr. Domenici
Mr. Bond
Mr. Gorton
Mr. McConnell
Mr. Burns
Mr. Shelby
Mr. Gregg
Mr. Bennett
Mr. Campbell
Mr. Faircloth
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.

                    TITLE 8--ALIENS AND NATIONALITY

                CHAPTER 12--IMMIGRATION AND NATIONALITY

                       SUBCHAPTER II--IMMIGRATION

                        Part I--Selection System

Sec. 1157. Annual admission of refugees and admission of emergency 
                    situation refugees

          * * * * * * *

       Establishing Categories of Aliens for Purposes of Refugee 
                             Determinations

    ``(a) In General.--* * *
    ``(b) Establishment of Categories.--
          * * * * * * *
    ``(3) Within the number of admissions of refugees allocated 
for for [sic] each of fiscal years 1990, 1991, and 1992 for 
refugees who are nationals of the Soviet Union under section 
207(a)(3) of the Immigration and Nationality Act [8 U.S.C. 
1157(a)(3)] and within the number of such admissions allocated 
for each of fiscal years 1993, 1994, 1995, 1996, [and 1997] 
1997, and 1998 for refugees who are nationals of the 
independent states of the former Soviet Union, Estonia, Latvia, 
and Lithuania under such section, notwithstanding any other 
provision of law, the President shall allocate one thousand of 
such admissions for such fiscal year to refugees who are within 
the category of aliens described in paragraph (2)(B).
          * * * * * * *
    ``(e) Period of Application.--
          ``(1) Subsections (a) and (b) shall take effect on 
        the date of the enactment of this Act [Nov. 21, 1989] 
        and shall only apply to applications for refugee status 
        submitted before [October 1, 1997] October 1, 1998.
          ``(2) Subsection (c) shall apply to decisions made 
        after the date of the enactment of this Act and before 
        [October 1, 1997] October 1, 1998.
          ``(3) Subsection (d) shall take effect on the date of 
        the enactment of this Act and shall only apply to 
        reapplications for refugee status submitted before 
        [October 1, 1997] October 1, 1998.''
          * * * * * * *

               Part V--Deportation; Adjustment of Status

          * * * * * * *

Sec. 1255. Adjustment of status of nonimmigrant to that of person 
                    admitted for permanent residence

          * * * * * * *
    (a) Status as person admitted for permanent residence on 
application and eligibility for immigrant visa
          * * * * * * *
    ``(b) Aliens Eligible for Adjustment of Status.--The 
benefits provided in subsection (a) shall only apply to an 
alien who--
          ``(1) was a national of an independent state of the 
        former Soviet Union, Estonia, Latvia, Lithuania, 
        Vietnam, Laos, or Cambodia, and
          ``(2) was inspected and granted parole into the 
        United States during the period beginning on August 15, 
        1988, and ending on [September 30, 1997] September 30, 
        1998, after being denied refugee status.
          * * * * * * *

              TITLE 22--FOREIGN RELATIONS AND INTERCOURSE

          * * * * * * *

         CHAPTER 63--SUPPORT FOR EAST EUROPEAN DEMOCRACY (SEED)

               SUBCHAPTER II--PRIVATE SECTOR DEVELOPMENT

          * * * * * * *

Sec.  5421. Enterprise Funds for Poland and Hungary

          * * * * * * *
    [(l) Limitation on payments to Enterprise Fund personnel

    [No part of the funds of either Enterprise Fund shall inure 
to the benefit of any board member, officer, or employee of 
such Enterprise Fund, except as salary or reasonable 
compensation for services.]
    (l) Limitation on Payments to Enterprise Fund Personnel.--
            (1) No part of the funds of an Enterprise Fund 
        shall inure to the benefit of any board member, 
        officer, or employee of such Enterprise Fund, except as 
        salary or reasonable compensation for services subject 
        to paragraph (2).
            (2) An Enterprise Fund shall not pay compensation 
        for services to--
                    (A) any board member of the Enterprise 
                Fund, except for services as a board member; or
                    (B) any firm, association, or entity in 
                which a board member of the Enterprise Fund 
                serves as partner, director, officer, or 
                employee.
            (3) Nothing in paragraph (2) shall preclude payment 
        for services performed before the date of enactment of 
        this subsection.
          * * * * * * *

                        Arms Export Control Act

               1. Foreign Assistance and Arms Export Acts

           a. The Foreign Assistance Act of 1961, as Amended

          * * * * * * *

             b. Arms Export Control Act (Public Law 90-629)

          * * * * * * *

    Chapter 1--FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND 
                               RESTRAINTS

          * * * * * * *

            Chapter 2--FOREIGN MILITARY SALES AUTHORIZATIONS

    Sec. 21. * * *
          * * * * * * *
    Sec. 25. Annual Estimate and Justification for Sales 
Program.--(a) Except as provided in subsection (d) of this 
section, no later than February 1 of each year, the President 
shall transmit to the [Congress] appropriate congressional 
committees, as a part of the annual presentation materials for 
security assistance programs proposed for the next fiscal year, 
a report which sets forth--
          * * * * * * *
    (b) Not later than thirty days following the receipt of a 
request made by [the Committee on Foreign Relations of the 
Senate or the Committee on Foreign Affairs of the House of 
Representatives] any of the congressional committees described 
in subsection (e) for additional information with respect to 
any information submitted pursuant to subsection (a), the 
President shall submit such information to such committee.
          * * * * * * *
    (d) * * *
    ``(e) As used in this section, the term `appropriate 
congressional committees' means the Committee on Foreign 
Relations and the Committee on Appropriations of the Senate and 
the Committee on International Relations and the Committee on 
Appropriations of the House of Representatives.''
          * * * * * * *
    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; and
          (3) the country or international organization has 
        agreed to pay in United States dollars all costs 
        incurred by the United States Government in leasing 
        such articles, including reimbursement for depreciation 
        of such articles while leased, the costs of restoration 
        or replacement cost (less any depreciation in the 
        value) if the articles are lost or destroyed while 
        leased.
    The requirement for paragraph (3) shall not apply to leases 
entered into for purposes of cooperative research or 
development, military exercises, or communications or 
electronics interface projects, or to any defense article which 
has passed three-quarters of its normal service life.
    The President may waive the requirement of paragraph (3) 
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 
        [1997] 1998 and only with respect to one country, 
        unless the Congress hereafter provides otherwise.
          * * * * * * *

   Omnibus Consolidated Appropriations Act, 1997 (Public Law 104-208)

                      TITLE V--GENERAL PROVISIONS

          * * * * * * *

                        transparency of budgets

    Sec. 576. (a) Limitation.-- * * *
          [(1) does not have in place a functioning system for 
        a civilian audit of all receipts and expenditures that 
        fund activities of the armed forces and security 
        forces] (1) does not have in place a functioning system 
        for reporting to civilian authorities audits of 
        receipts and expenditures that fund activities of the 
        armed forces and security forces;
          (2) has not provided a summary of a current audit to 
        the institution (2) has not provided to the institution 
        information about the audit process requested by the 
        institution.

             GOVERNMENT PERFORMANCE AND RESULTS ACT [GPRA]

    The Agency for International Development was one of two 
agencies which chose to implement GPRA agencywide rather than 
by office or program. Under GPRA, AID has sought to establish 
an agencywide framework for planning, measuring and managing 
results. According to the Administrator's letter to the Office 
of Management and Budget [OMB], AID proposed:
    ``One, to expand strategic planning and to have plans in 
place for all AID's sustainable development programs;
    Two, to link performance measures to agencywide programming 
and management systems; and
    Three, to test broader management reforms aimed at 
enhancing AID's ability to manage for results.''
    AID has maintained broad program goals which the GPRA 
review intended to connect more closely to focused, country 
objectives. In the past, projects were evaluated subject to an 
absolute rating standard which GPRA analysts believed produced 
skewed results. In other words, past evaluations established a 
target such as the number of Government employees to be trained 
as accountants, then determined if those goals were met.
    Through the GPRA review, the Agency shifted emphasis and 
ranked strategic objectives by the political importance of the 
country, the actual development needs that were being 
addressed, and the overall quality of the partnership. The GPRA 
team asked missions to evaluate the best, worst, and most 
significant results they achieved. Characterized by the 
Administrator as a bottom up review the process was designed to 
encourage AID, program beneficiaries and host government 
officials to work more closely to achieve strategic objectives. 
As a result of this first stage, field staff now submit an 
annual results review and resource request which must document 
performance against specific country defined strategic 
objectives.
    The Agency is working toward establishing common objectives 
and indicators which reflect evolving change and improvements. 
As stated by the Administrator, AID intends to complete this 
process by creating and institutionalizing indicators that are 
results oriented rather than just a bureaucratic requirement.

                                            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 in the First Concurrent                                                        
 Resolution for 1998: Subcommittee on Foreign Operations,                                                       
 Export Financing, and Related Programs:                                                                        
    Defense discretionary...................................  ...........  ...........  ...........  ...........
    Nondefense discretionary................................       13,200       16,721       13,083   \1\ 13,083
    Violent crime reduction fund............................  ...........  ...........  ...........  ...........
    Mandatory...............................................           44           44           44           44
Projections of outlays associated with the recommendation:                                                      
    1998....................................................  ...........  ...........  ...........    \2\ 5,086
    1999....................................................  ...........  ...........  ...........        3,960
    2000....................................................  ...........  ...........  ...........        1,624
    2001....................................................  ...........  ...........  ...........          960
    2002 and future year....................................  ...........  ...........  ...........        1,610
Financial assistance to State and local governments for 1997                                                    
 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 funding recommended in the bill for the International Monetary Fund and in accordance
  with section 202 of H. Con. Res. 84, the concurrent resolution on the budget for fiscal year 1998, the        
  Committee anticipates that the Budget Committee will file a revised section 602(a) allocation for the         
  Committee on Appropriations reflecting an upward adjustment of $3,521,000,000 in budget authority. The        
  Committee also anticipates an upward adjustment consistent with section 206 of H. Con. Res. 84.               


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 1997 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL 
                                                                        YEAR 1998                                                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      Senate Committee recommendation   
                                                                                                   Committee              compared with (+ or -)        
                        Item                          1997 appropriation    Budget estimate     recommendation   ---------------------------------------
                                                                                                                  1997 appropriation    Budget estimate 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
      TITLE I--EXPORT AND INVESTMENT ASSISTANCE                                                                                                         
                                                                                                                                                        
       EXPORT-IMPORT BANK OF THE UNITED STATES                                                                                                          
                                                                                                                                                        
Limitation on Program Activity:                                                                                                                         
    Subsidy appropriations..........................       $726,000,000        $632,000,000        $700,000,000        -$26,000,000        +$68,000,000 
    Administrative expenses.........................         46,614,000          48,614,000          46,614,000   ..................         -2,000,000 
    Negative subsidy................................        -58,000,000         -51,000,000         -51,000,000          +7,000,000   ..................
        (Direct loan authorization).................  ..................     (1,330,000,000)     (1,330,000,000)    (+1,330,000,000)  ..................
        (Guaranteed loan authorization).............  ..................    (11,300,000,000)    (11,300,000,000)   (+11,300,000,000)  ..................
                                                     ---------------------------------------------------------------------------------------------------
          Total, Export-Import Bank of the United                                                                                                       
           States...................................        714,614,000         629,614,000         695,614,000         -19,000,000         +66,000,000 
                                                                                                                                                        
       OVERSEAS PRIVATE INVESTMENT CORPORATION                                                                                                          
                                                                                                                                                        
Noncredit account:                                                                                                                                      
    Administrative expenses.........................         32,000,000          32,000,000          32,000,000   ..................  ..................
    Insurance fees and other offsetting collections.       -224,000,000        -251,000,000        -251,000,000         -27,000,000   ..................
Direct loans:                                                                                                                                           
    Loan subsidy....................................          4,000,000           4,000,000           4,000,000   ..................  ..................
    (Loan authorization)............................        (80,000,000)       (133,000,000)       (133,000,000)       (+53,000,000)  ..................
Guaranteed loans:                                                                                                                                       
    Loan subsidy....................................         68,000,000          56,000,000          56,000,000         -12,000,000   ..................
    (Loan authorization)............................     (1,360,000,000)     (1,800,000,000)     (1,800,000,000)      (+440,000,000)  ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, Overseas Private Investment Corporation       -120,000,000        -159,000,000        -159,000,000         -39,000,000   ..................
                                                                                                                                                        
         FUNDS APPROPRIATED TO THE PRESIDENT                                                                                                            
                                                                                                                                                        
            Trade and Development Agency                                                                                                                
                                                                                                                                                        
Trade and development agency........................         40,000,000          43,000,000          43,000,000          +3,000,000   ..................
    (By transfer)...................................         (5,000,000)  ..................  ..................        (-5,000,000)  ..................
                                                     ===================================================================================================
      Total, title I, Export and investment                                                                                                             
       assistance...................................        634,614,000         513,614,000         579,614,000         -55,000,000         +66,000,000 
          (Loan authorizations).....................     (1,440,000,000)    (14,563,000,000)    (14,563,000,000)   (+13,123,000,000)  ..................
                                                     ===================================================================================================
       TITLE II--BILATERAL ECONOMIC ASSISTANCE                                                                                                          
                                                                                                                                                        
         FUNDS APPROPRIATED TO THE PRESIDENT                                                                                                            
                                                                                                                                                        
        Agency for International Development                                                                                                            
                                                                                                                                                        
Child survival and disease programs fund............        600,000,000   ..................  ..................       -600,000,000   ..................
Development assistance..............................      1,181,500,000         998,000,000       1,793,093,020        +611,593,020        +795,093,020 
Development Fund for Africa.........................  ..................        700,000,000   ..................  ..................       -700,000,000 
International disaster assistance...................        190,000,000         190,000,000         195,000,000          +5,000,000          +5,000,000 
Debt restructuring..................................         27,000,000          34,000,000          34,000,000          +7,000,000   ..................
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).................        (17,000,000)  ..................  ..................       (-17,000,000)  ..................
    Administrative expenses.........................            500,000             500,000             500,000   ..................  ..................
Urban and Environmental Credit Program:                                                                                                                 
    Subsidy appropriations..........................          3,500,000           3,000,000           3,000,000            -500,000   ..................
    (Guaranteed loan authorization).................        (29,400,000)        (46,000,000)        (35,000,000)        (+5,600,000)       (-11,000,000)
    Operating expenses..............................          6,000,000           6,000,000           6,000,000   ..................  ..................
                                                     ---------------------------------------------------------------------------------------------------
      Subtotal, development assistance..............      2,010,000,000       1,933,000,000       2,033,093,020         +23,093,020        +100,093,020 
                                                     ===================================================================================================
Payment to the Foreign Service Retirement and                                                                                                           
 Disability Fund....................................         43,826,000          44,208,000          44,208,000            +382,000   ..................
Operating expenses of the Agency for International                                                                                                      
 Development........................................        470,750,000         473,000,000         473,000,000          +2,250,000   ..................
Operating expenses of the Agency for International                                                                                                      
 Development Office of Inspector General............         30,000,000          29,047,000          29,047,000            -953,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
      Subtotal, Agency for International Development      2,554,576,000       2,479,255,000       2,579,348,020         +24,772,020        +100,093,020 
                                                                                                                                                        
         Other Bilateral Economic Assistance                                                                                                            
                                                                                                                                                        
Economic support fund:                                                                                                                                  
    Camp David countries............................      2,015,000,000       2,015,000,000       1,200,000,000        -815,000,000        -815,000,000 
    Other...........................................        328,000,000         482,600,000       1,385,100,000      +1,057,100,000        +902,500,000 
                                                     ---------------------------------------------------------------------------------------------------
      Subtotal, Economic support fund...............      2,343,000,000       2,497,600,000       2,585,100,000        +242,100,000         +87,500,000 
International fund for Ireland......................         19,600,000   ..................  ..................        -19,600,000   ..................
Assistance for Eastern Europe and the Baltic States.        475,000,000         492,000,000         485,000,000         +10,000,000          -7,000,000 
Assistance for the New Independent States of the                                                                                                        
 former Soviet Union................................        625,000,000         900,000,000         800,000,000        +175,000,000        -100,000,000 
U.S. Russian Investment Fund........................  ..................        (50,000,000)  ..................  ..................       (-50,000,000)
                                                     ---------------------------------------------------------------------------------------------------
      Subtotal, Other Bilateral Economic Assistance.      3,462,600,000       3,889,600,000       3,870,100,000        +407,500,000         -19,500,000 
                                                     ===================================================================================================
      Total, Agency for International Development...      6,017,176,000       6,368,855,000       6,449,448,020        +432,272,020         +80,593,020 
                                                                                                                                                        
           African Development Foundation                                                                                                               
                                                                                                                                                        
Appropriations......................................  ..................         14,000,000   ..................  ..................        -14,000,000 
    By transfer.....................................  ..................  ..................        (10,500,000)       (+10,500,000)       (+10,500,000)
                                                                                                                                                        
              Inter-American Foundation                                                                                                                 
                                                                                                                                                        
Appropriations......................................  ..................         22,000,000   ..................  ..................        -22,000,000 
    By transfer.....................................  ..................  ..................        (18,000,000)       (+18,000,000)       (+18,000,000)
                                                     ===================================================================================================
      Total, Funds Appropriated to the President....      6,017,176,000       6,404,855,000       6,449,448,020        +432,272,020         +44,593,020 
                                                                                                                                                        
                 INDEPENDENT AGENCY                                                                                                                     
                                                                                                                                                        
                     Peace Corps                                                                                                                        
                                                                                                                                                        
Appropriations......................................        208,000,000         222,000,000         206,000,000          -2,000,000         -16,000,000 
    (By transfer)...................................        (12,000,000)  ..................        (10,000,000)        (-2,000,000)       (+10,000,000)
                                                                                                                                                        
                 Department of State                                                                                                                    
                                                                                                                                                        
International narcotics control.....................        213,000,000         230,000,000         216,200,000          +3,200,000         -13,800,000 
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          50,000,000          50,000,000   ..................  ..................
Anti-terrorism assistance...........................  ..................         19,000,000   ..................  ..................        -19,000,000 
Nonproliferation and Disarmament Fund...............  ..................         15,000,000   ..................  ..................        -15,000,000 
Nonproliferation, anti-terrorism, demining and                                                                                                          
 related programs...................................        151,000,000   ..................        129,000,000         -22,000,000        +129,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, Department of State....................      1,069,000,000         964,000,000       1,045,200,000         -23,800,000         +81,200,000 
                                                     ===================================================================================================
      Total, title II, Bilateral economic assistance      7,294,176,000       7,590,855,000       7,700,648,020        +406,472,020        +109,793,020 
          (By transfer).............................        (12,000,000)        (50,000,000)        (38,500,000)       (+26,500,000)       (-11,500,000)
          (Loan authorizations).....................        (47,400,000)        (47,000,000)        (36,000,000)       (-11,400,000)       (-11,000,000)
                                                     ===================================================================================================
           TITLE III--MILITARY ASSISTANCE                                                                                                               
                                                                                                                                                        
         FUNDS APPROPRIATED TO THE PRESIDENT                                                                                                            
                                                                                                                                                        
International Military Education and Training.......         43,475,000          50,000,000          47,000,000          +3,525,000          -3,000,000 
Foreign Military Financing Program:                                                                                                                     
    Grants:                                                                                                                                             
        Camp David countries........................      3,100,000,000       3,100,000,000       1,800,000,000      -1,300,000,000      -1,300,000,000 
        Other.......................................        124,000,000         174,250,000       1,465,000,000      +1,341,000,000      +1,290,750,000 
                                                     ---------------------------------------------------------------------------------------------------
          Subtotal, grants..........................      3,224,000,000       3,274,250,000       3,265,000,000         +41,000,000          -9,250,000 
    (Limitation on administrative expenses).........        (23,250,000)        (23,250,000)        (23,250,000)  ..................  ..................
    Direct concessional loans:                                                                                                                          
        Subsidy appropriations......................         60,000,000          66,000,000          74,000,000         +14,000,000          +8,000,000 
        (Loan authorization)........................       (540,000,000)       (699,500,000)       (791,800,000)      (+251,800,000)       (+92,300,000)
    FMF program level...............................     (3,764,000,000)     (3,973,750,000)     (4,056,800,000)      (+292,800,000)       (+83,050,000)
                                                     ---------------------------------------------------------------------------------------------------
      Total, Foreign military assistance............      3,284,000,000       3,340,250,000       3,339,000,000         +55,000,000          -1,250,000 
Special Defense Acquisition Fund:                                                                                                                       
    Offsetting collections..........................       -166,000,000        -106,000,000        -106,000,000         +60,000,000   ..................
Peacekeeping operations.............................         65,000,000          90,000,000          75,000,000         +10,000,000         -15,000,000 
                                                     ===================================================================================================
      Total, title III, Military assistance.........      3,226,475,000       3,374,250,000       3,355,000,000        +128,525,000         -19,250,000 
          (Limitation on administrative expenses)...        (23,250,000)        (23,250,000)        (23,250,000)  ..................  ..................
          (Loan authorization)......................       (540,000,000)       (699,500,000)       (791,800,000)      (+251,800,000)       (+92,300,000)
                                                     ===================================================================================================
     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 International Finance                                                                                                           
     Corporation....................................          6,656,000   ..................  ..................         -6,656,000   ..................
    Contribution to the Global Environment Facility.         35,000,000         100,000,000          60,000,000         +25,000,000         -40,000,000 
Contribution to the International Development                                                                                                           
 Association........................................        700,000,000       1,034,504,000         950,000,000        +250,000,000         -84,504,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, World Bank Group.......................        741,656,000       1,134,504,000       1,010,000,000        +268,344,000        -124,504,000 
Contribution to the Inter-American Development Bank:                                                                                                    
    Inter-regional 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)  ..................
    Fund for special operations.....................         10,000,000          20,835,000          20,835,000         +10,835,000   ..................
    Contribution to the Enterprise for the Americas                                                                                                     
     Multilateral Investment Fund...................         27,500,000          30,000,000          30,000,000          +2,500,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, contribution to the Inter-American                                                                                                         
       Development Bank.............................         63,110,667          76,445,667          76,445,667         +13,335,000   ..................
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......        100,000,000         150,000,000         140,000,000         +40,000,000         -10,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, contribution to the Asian Development                                                                                                      
       Bank.........................................        113,221,596         163,221,596         153,221,596         +40,000,000         -10,000,000 
Contribution to the African Development Fund........  ..................         50,000,000   ..................  ..................        -50,000,000 
Contribution to the European Bank for Reconstruction                                                                                                    
 and Development:                                                                                                                                       
    Paid-in capital.................................         11,916,447          35,778,717          35,778,717         +23,862,270   ..................
    (Limitation on callable capital subscriptions)..        (27,805,043)       (123,237,803)       (123,237,803)       (+95,432,760)  ..................
North American Development Bank:                                                                                                                        
    Paid-in capital.................................         56,000,000          56,500,000          56,500,000            +500,000   ..................
    (Limitation on callable capital subscriptions)..       (318,750,000)       (318,750,000)       (318,750,000)  ..................  ..................
Contribution to the Bank for Economic Cooperation                                                                                                       
 and Development in the Middle East and North                                                                                                           
 Africa:                                                                                                                                                
    (By transfer)...................................  ..................        (52,500,000)  ..................  ..................       (-52,500,000)
    (Limitation on callable capital subscriptions)..  ..................       (157,500,500)  ..................  ..................      (-157,500,500)
                                                                                                                                                        
             International Monetary Fund                                                                                                                
                                                                                                                                                        
Contribution to the enhanced structural adjustment                                                                                                      
 facility...........................................  ..................          7,000,000   ..................  ..................         -7,000,000 
    Loans to International Monetary Fund............  ..................      3,521,000,000       3,521,000,000      +3,521,000,000   ..................
                                                     ===================================================================================================
      Total, International Financial Institutions...        985,904,710       5,044,449,980       4,852,945,980      +3,867,041,270        -191,504,000 
          (Limitation on callable capital subscript)     (2,498,132,157)     (1,247,346,507)     (1,089,846,007)    (-1,408,286,150)      (-157,500,500)
                                                                                                                                                        
      International Organizations and Programs                                                                                                          
                                                                                                                                                        
International organizations and programs............        169,950,000         365,000,000         277,000,000        +107,050,000         -88,000,000 
    (By transfer)...................................        (17,500,000)  ..................         (2,500,000)       (-15,000,000)        (+2,500,000)
                                                     ===================================================================================================
      Total, title IV, Multilateral economic                                                                                                            
       assistance...................................      1,155,854,710       5,409,449,980       5,129,945,980      +3,974,091,270        -279,504,000 
          (By transfer).............................        (17,500,000)        (52,500,000)         (2,500,000)       (-15,000,000)       (-50,000,000)
          (Limitation on callable capital subscript)     (2,498,132,157)     (1,247,346,507)     (1,089,846,007)    (-1,408,286,150)      (-157,500,500)
                                                     ===================================================================================================
      Grand total...................................     12,311,119,710      16,888,168,980      16,765,208,000      +4,454,088,290        -122,960,980 
          (By transfer).............................        (34,500,000)       (102,500,000)        (41,000,000)        (+6,500,000)       (-61,500,000)
          (Limitation on administrative expenses)...        (23,250,000)        (23,250,000)        (23,250,000)  ..................  ..................
          (Limitation on callable capital)..........     (2,498,132,157)     (1,247,346,507)     (1,089,846,007)    (-1,408,286,150)      (-157,500,500)
          (Loan authorizations).....................     (2,027,400,000)    (15,309,500,000)    (15,390,800,000)   (+13,363,400,000)       (+81,300,000)
                                                     ===================================================================================================
      TITLE I--EXPORT AND INVESTMENT ASSISTANCE                                                                                                         
                                                                                                                                                        
Export Assistance Appropriations....................        916,614,000         815,614,000         881,614,000         -35,000,000         +66,000,000 
Negative Subsidies and Offsetting Collections.......       -282,000,000        -302,000,000        -302,000,000         -20,000,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, Export Assistance......................        634,614,000         513,614,000         579,614,000         -55,000,000         +66,000,000 
                                                                                                                                                        
       TITLE II--BILATERAL ECONOMIC ASSISTANCE                                                                                                          
                                                                                                                                                        
Bilateral Development Assistance....................      3,831,576,000       3,701,255,000       3,830,548,020          -1,027,980        +129,293,020 
Other Bilateral Economic Assistance.................      3,462,600,000       3,889,600,000       3,870,100,000        +407,500,000         -19,500,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, Bilateral Economic Assistance..........      7,294,176,000       7,590,855,000       7,700,648,020        +406,472,020        +109,793,020 
                                                                                                                                                        
           TITLE III--MILITARY ASSISTANCE                                                                                                               
                                                                                                                                                        
Foreign Military Financing Program:                                                                                                                     
    Grants..........................................      3,224,000,000       3,274,250,000       3,265,000,000         +41,000,000          -9,250,000 
    Direct loans, subsidy costs.....................         60,000,000          66,000,000          74,000,000         +14,000,000          +8,000,000 
    (Estimated level of direct loans)...............       (540,000,000)       (699,500,000)       (791,800,000)      (+251,800,000)       (+92,300,000)
                                                     ---------------------------------------------------------------------------------------------------
      Subtotal, Foreign Military Financing Program:                                                                                                     
          Budget authority..........................      3,284,000,000       3,340,250,000       3,339,000,000         +55,000,000          -1,250,000 
          (Program level)...........................     (3,764,000,000)     (3,973,750,000)     (4,056,800,000)      (+292,800,000)       (+83,050,000)
Other, Military.....................................        108,475,000         140,000,000         122,000,000         +13,525,000         -18,000,000 
Special Defense Acquisition Fund....................       -166,000,000        -106,000,000        -106,000,000         +60,000,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, Military Assistance Programs...........      3,226,475,000       3,374,250,000       3,355,000,000        +128,525,000         -19,250,000 
                                                                                                                                                        
     TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE                                                                                                         
                                                                                                                                                        
Contributions to International Financial                                                                                                                
 Institutions.......................................        985,904,710       1,516,449,980       1,331,945,980        +346,041,270        -184,504,000 
International Monetary Fund (IMF)...................  ..................      3,528,000,000       3,521,000,000      +3,521,000,000          -7,000,000 
International organizations and programs............        169,950,000         365,000,000         277,000,000        +107,050,000         -88,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, contribution for Multilateral Economic                                                                                                     
       Assistance...................................      1,155,854,710       5,409,449,980       5,129,945,980      +3,974,091,270        -279,504,000 
                                                     ===================================================================================================
      Grand total...................................     12,311,119,710      16,888,168,980      16,765,208,000      +4,454,088,290        -122,960,980 
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